Silvermex Resources Ltd.

Silvermex Resources Ltd.

October 15, 2008 05:30 ET

Silvermex Resources Ltd.: Penasco Quemado Resource Update

Expanded Silver Resources & Positive Metallurgical Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2008) - Silvermex Resources Ltd. (TSX VENTURE:SMR) is pleased to report that infill and step-out drilling continues to expand the near-surface silver resources at its Penasco Quemado silver project in Sonora, Mexico.

Measured and Indicated silver resources at Penasco Quemado have increased to 10.05 million oz of silver and inferred resources have increased to 1.36 million oz of silver. The majority of the silver resource (88%) is in the Measured and Indicated category.

The resource estimate was audited by Mr. William Lewis, B.Sc., P.Geo. (Micon International Inc.), the independent Qualified Person, and was prepared using CIM definitions for mineral resources as required by National Instrument 43-101. The mineral resource estimate is:

Category Tonnes Ag (g/t) Contained Ag (oz)
Measured (M) 722,658 111.6 2,591,752
Indicated (I) 2,352,174 98.8 7,468,166
Total M&I 3,074,832 101.8 10,059,918
Inferred 597,045 71.2 1,366,749

The above resource estimate is based on a cut-off grade of 30 grams of
silver per tonne.

The mineral resource estimate is based on a total of 9,847 meters of core and reverse circulation drilling from 107 holes completed by both Silvermex and previous operators. The 139 square mile (36,000 hectare) property is located in the north-central portion of the state of Sonora, Mexico approximately 70 kilometers (km) southwest of the Mexico-Arizona border. The Penasco Quemado deposit consists of silver with minor gold and copper in structurally-controlled fissure fillings hosted within granite and disseminated throughout a sedimentary breccias unit. The near surface and oxidized nature of the mineralization suggest the deposit would have a low strip ratio and be amenable to low cost, bulk tonnage, open pit mining methods.

Silvermex is also pleased to report that metallurgical testing consisting of a two-phase, 24 hour leach on Penasco Quemado ore produced 71% silver recoveries. Management is confident that by optimizing crush size, reagent concentration, leach time and ph that recoveries can be improved beyond this already acceptable rate.

Significant intersections from past drill programs include 30 meters grading 149.2 g/t Ag from the Penasco Quemado (PQ) Zone and 22.5 meters grading 148.5 g/t Ag from the Southeast Extension, located approximately 820 meters along strike from the PQ Zone. This intersection of economic grade mineralization was the furthest encountered from the PQ Zone since exploration began in 2005. The results of the latest drill program confirm the ore grade mineralization extends along strike both to the southwest and the southeast. To date the resource has been defined over a strike length of 400 meters. In addition there have been several intersections of the mineralized zone up to 820SE of the PQ Zone, suggesting the mineralization may be continuous between the 400SE and 820SE sections.

Management is encouraged with this latest resource and based on extensive geological modeling, detailed sampling, and recent drill intersections along strike are confident that future exploration programs will deliver additional quality silver resources.

Qualified Person

Pursuant to National Instrument 43-101, Mr. William Lewis, B.Sc., P.Geo. (Micon International Inc.), is the independent Qualified Person responsible for the mineral resource estimate. Darcy Krohman, P.Geo., C.A., Executive Vice-President and CFO of Silvermex Resources Ltd., is the Qualified Person (QP) responsible for the disclosure in this news release.

This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.

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