Silvermex Resources Ltd.

Silvermex Resources Ltd.

October 13, 2009 10:39 ET

Silvermex Signs Final Agreement for Past Silver/Gold Producer Rosario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - Silvermex Resources Ltd. (TSX VENTURE:SMR) (the "Company" or "Silvermex") is pleased to announce it has signed a definitive agreement with Aurcana Corporation (TSX VENTURE:AUN) ("Aurcana") to acquire a 100% interest in the silver - gold - lead - zinc Rosario Property ("Rosario Property") located in south eastern Sinaloa State, Mexico.

The Rosario Property consists of 18 concessions totaling approximately 8,515 hectares and is located approximately 94 kilometres southeast of Mazatlan. The property is strategically located within 2 Kilometres of Silvermex's 1,250 hectare San Marcial Silver property and was acquired to consolidate Silvermex's land position in the San Marcial area in order to accelerate Silvermex's objective of becoming a near-term silver producer. The proximity to Silvermex's San Marcial project combined with the silver resource and existing infrastructure at Rosario will significantly reduce both the time and capital expenditures required for production.

Under the terms of the acquisition, the Silvermex advanced to Aurcana $435,000 on August 25th 2009 to settle amounts due to Grupo Mexico by Aurcana. The Company will pay $207,000 CDN and issue 1 million shares on or before November 15th, 2009. Upon reaching successful production or 24 months from closing, the Company will issue an additional 1 million shares and pay 5 installments of CDN$500,000 every 6 months for a total of CDN$2,500,000. The Company will also assume the last payment due by Aurcana to Grupo Mexico in the amount of $731,000 USD due in February, 2010.

The acquisition includes all facilities and infrastructure, including surface rights, underground workings, tailings dam, water, power, offices, shops, 60 man camp, warehouses and assay lab. The previous owner invested approximately $8.5 million in exploration, upgrades and renovations to the mine and mill site including partial renovations to the mine and mill site including; upgrading of electrical substations and wiring, camp accommodations upgrades, mine dewatering and detailed engineering of an 800 tonne per day (t/d) mill. The acquisition also includes an extensive list of mill equipment and vehicles, two 9 by 12 ball mills, numerous feeders and tanks, electrical equipment, trucks, pumps, compressors, etc.

The land directly surrounding the Rosario mill site (330 ha) is owned in fee simple and key exploration and mining areas are under a surface rights agreement which remains in good standing for 20 years. Silvermex is working on a preliminary in-house study which will determine mine and production plans
based on combining the two projects.

Historic production on the Rosario property by Grupo Mexico, the prior operator, averaged 600 t/d from 1986 to 2000, during which a total of 2.5 million tonnes of ore were produced which averaged 190.5 grams per tonne (g/t) silver, 0.92 g/t gold, 2.02% zinc and 2.38% lead.

The San Juan prospect is a high priority target on the project. This vein structure has 26,205 tonnes of historic reserves with grades of 339.9 grams per tonne silver, 2.1% zinc, 1.4% lead and 0.4 grams per tonne gold and 230,511 tonnes of historic inferred resources with grades of 327.8 grams per tonne silver, 3.90% zinc, 1.70% lead and 0.2 grams per tonne gold. A decline has been driven into the San Juan zone and testing of over a vertical distance of 40 metres was done, with the zone still open to depth. Silvermex will make San Juan a focus of a drill program due to the high grade nature of the ore, the proximity to San Marcial and the significant potential of the area. The zone remains open at depth and developed workings consist of several hundred metres of drifts and cross cuts on two levels.

Exploration work planned for the San Juan area will include exploring the known zone at to depth. Diamond drill testing will also evaluate the San Francisco vein which is interpreted to be an extension of the San Juan vein. Surface sampling by Grupo Mexico traced the vein along strike for 600 metres, and has reported results including 3.02 g/t gold and 314 g/t silver over 1.6 metres, and 0.34 g/t gold and 574 g/t silver over 1.7 metres.

The Plomosas Mine has been partially refurbished by the previous operator in reparation for an 800 tpd operation. The Plomosas Mine currently has 323,278 tonnes of historic reserves with grades of 92.0 grams per tonne silver, 3.7% zinc, 2.5% lead and 1.0 gram per tonne gold and 286,613 tonnes of historic inferred resources with grades of 161.3 grams per tonne silver, 3.21% zinc, 2.23% lead and 1.2 grams per tonne gold.

The reader should be cautioned the historic reserves and resources do not conform to National Instrument 43-101 for reporting purposes; as such the Company is not treating these historic estimates as current reserves or resources. These estimates should not be relied upon until they have been verified by further due diligence and by the Company's "Qualified Person".

Bruce Bragagnolo, Silvermex CEO stated; "This strategic acquisition of Rosario will help to accelerate Silvermex's objective of becoming a near-term silver producer. The proximity to our San Marcial high-grade project combined with the existing high-grade resources and infrastructure in place at Rosario will significantly reduce both time and capital expenditures required for resource growth and production. The acquisition complements our short term goals and our pre-production profile."

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information