First Majestic Updates Reserves and Resource Estimates and Files Form 40-F Annual Report

VANCOUVER, March 27, 2014 /PRNewswire/ – First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce the updated Mineral Reserve and Resource estimates for its portfolio of properties in Mexico as of December 31, 2013. The mineral Reserve and Resource estimates were calculated using US$24.00 per ounce silver, US$1,400 per ounce gold, US$0.95 per pound lead and US$0.90 per pound zinc.

The Company also announces that its 2013 audited financial statements have been filed on SEDAR. In addition, a Form 40-F report has been filed with the United States Securities and Exchange Commission and is available on EDGAR. Both documents are also available on the Company’s website at www.firstmajestic.com.

Shareholders may also receive a copy of First Majestic’s audited financial statements, without charge, upon request to First Majestic, Suite 1805 – 925 West Georgia Street Vancouver, B.C., Canada, V6C 3L2 or to [email protected].

HIGHLIGHTS

   -- 138,734,210 silver equivalent ounces of Proven and Probable Reserves 
 
   -- 102,309,851 silver equivalent ounces of Measured and Indicated Resources 
 
   -- 285,388,953 silver equivalent ounces of Inferred Resources

In general, the tonnage for Mineral Reserves for the individual mines have decreased by 5% due to depletion and reclassification of Reserves into Measured and Indicated Resources in response to lower metal prices compared to the 2012 estimates. The Company has used US$24.00 silver prices with a cut-off of December 31, 2013, which impacted cut-off grades resulting in a reduction in the size of some ore blocks or conversely reclassification of ore blocks into lower categories. Total silver Reserves/Resources were reduced by 10% while total equivalent silver Reserves/Resources were reduced by 4%.

EXPLORATION AND DEVELOPMENT

In 2013, the Company invested $94.4 million on exploration and development activities and completed 58,578 metres of diamond drilling and 53,257 metres of underground development on its five operating mines in Mexico. This represents a 57% reduction in drilling compared to 135,769 metres in 2012, and a 7% reduction in underground development as a result of numerous budget cuts which occurred throughout 2013 due to weak silver prices.

In 2014, First Majestic plans to invest $8.0 million on exploration activities. The main priority of the exploration work is to further define and upgrade Resources to support future updates to the Company’s NI 43-101 Technical Reports. As a result of the exploration budget cuts in 2013, and reduced programs in 2014, no grassroots or greenfields drilling is taking place. All drilling is either focused on mining activities or definition drilling.

The following table contains the Mineral Reserve and Resource as of December 31, 2013.

 
 
PROVEN AND PROBABLE RESERVES 2013 
==================================  ===========  ==========  =====  =====  ===  ===  ===========  =========== 
                                    Mineral                     Ag     Au   Pb   Zn 
Mine/Project   Category             type             Tonnes  (g/t)  (g/t)  (%)  (%)      Ag (Oz)    AgEq (Oz) 
-------------  -------------------  -----------  ----------  -----  -----  ---  ---  -----------  ----------- 
LA ENCANTADA   Proven (UG)          Oxides        1,023,409    316      -  2.9  1.6   10,410,996   10,410,996 
 Proven (tailings)    Oxides                      5,304,946    105      -  0.6  0.2   17,903,993   17,903,993 
 Probable (UG)        Oxides                      1,030,341    269      -  2.6  1.2    8,916,063    8,916,063 
 Total Proven & 
  Probable (UG)       Oxides                      7,358,696    157      -  1.2  0.5   37,231,053   37,231,053 
 
 LA PARRILLA   Proven (UG)          Oxides          417,722    192   0.06  0.4  0.2    2,574,698    2,620,763 
 Proven (OP)          Oxides                        533,799     63   0.06    -    -    1,081,207    1,140,073 
 Probable (UG)        Oxides                      1,105,650    190   0.06  0.5  0.5    6,751,587    6,873,515 
 Total Proven & 
  Probable (UG)       Oxides                      2,057,170    157   0.06  0.3  0.3   10,407,492   10,634,351 
 Proven (UG)          Sulphides                     660,333    207      -  2.7  2.5    4,403,326    7,320,761 
 Probable (UG)        Sulphides                   1,474,118    176      -  1.6  2.8    8,326,819   13,771,114 
 Total Proven & 
  Probable (UG)       Sulphides                   2,134,451    186      -  1.9  2.7   12,730,145   21,091,875 
 Total Proven & 
  Probable (UG)       Oxides + Sulphides          4,191,621    172   0.03  1.2  1.5   23,137,637   31,726,226 
 
 SAN MARTIN    Proven (UG)          Oxides        1,328,098    195   0.19    -    -    8,330,574    8,795,400 
 Probable (UG)        Oxides                      2,506,767    175   0.19    -    -   14,102,450   14,979,801 
 Total Proven & 
  Probable (UG)       Oxides                      3,834,866    182   0.19    -    -   22,433,025   23,775,201 
 
  DEL TORO     Proven (UG)          Oxides          788,673    153   0.01  2.3  2.2    3,873,145    3,894,579 
 Probable (UG)        Oxides                        363,158    134   0.00  1.9  2.0    1,559,124    1,562,493 
 Total Proven & 
  Probable (UG)       Oxides                      1,151,831    147   0.01  2.2  2.2    5,432,269    5,457,072 
 Proven (UG)          Sulphides                   1,132,390    180   0.00  3.2  3.0    6,537,571   12,547,372 
 Probable (UG)        Sulphides                   1,757,932    245   0.23  4.4  4.6   13,855,578   27,997,288 
 Total Proven & 
  Probable (UG)       Sulphides                   2,890,322    219   0.14  3.9  4.0   20,393,149   40,544,659 
 Total Proven & 
  Probable (UG)       Oxides + Sulphides          4,042,153    199   0.10  3.4  3.5   25,825,417   46,001,731 
 -------------------  -------------------------  ----------  -----  -----  ---  ---  -----------  ----------- 
 Total Proven and 
  Probable reserves   Oxides + Sulphides         19,427,336    174   0.06  1.4  1.2  108,627,132  138,734,210 
 ===================  =========================  ==========  =====  =====  ===  ===  ===========  =========== 
 
 
MEASURED AND INDICATED RESOURCES 
2013 
==================================  ===========  ==========  =====  =====  ===  ===  ===========  =========== 
                                    Mineral                     Ag     Au   Pb   Zn                 AgEq (Oz) 
Mine/project   Category             type             Tonnes  (g/t)  (g/t)  (%)  (%)      Ag (Oz)      in situ 
-------------  -------------------  -----------  ----------  -----  -----  ---  ---  -----------  ----------- 
LA ENCANTADA   Measured (UG)        Oxides        1,380,065    199      -  1.6  3.3    8,830,896    8,830,896 
 Indicated (UG)       Oxides                      1,805,358    225      -  1.6  5.3   13,032,801   13,032,801 
 Total Measured & 
  Indicated (UG)      Oxides                      3,185,423    213      -  1.6  4.4   21,863,698   21,863,698 
 
 LA PARRILLA   Measured (UG)        Oxides           78,039    164   0.06  0.5  0.0      411,576      420,182 
 indicated (UG)       Oxides                        448,084    163   0.06  0.5  0.3    2,354,795    2,404,209 
 indicated (OP)       Oxides                        608,203     88   0.06    -    -    1,712,576    1,779,647 
 Total Measured & 
  Indicated (UG & 
  OP)                 Oxides                      1,134,326    123   0.06  0.2  0.1    4,478,948    4,604,038 
 Measured (UG)        Sulphides                     262,831    191      -  1.2  0.7    1,614,844    2,046,756 
 Indicated (UG)       Sulphides                     313,417    181      -  1.7  1.9    1,821,572    2,775,774 
 Total Measured & 
  Indicated (UG)      Sulphides                     576,248    185      -  1.5  1.4    3,436,416    4,822,530 
 Total Measured & 
  Indicated (UG & 
  OP)                 Oxides + Sulphides          1,710,574    144   0.04  0.6  0.5    7,915,364    9,426,568 
 
 SAN MARTIN    Indicated (UG)       Oxides          475,399    158   0.19    -    -    2,411,853    2,578,240 
 Measured & 
  Indicated (UG)      Sulphides                     741,387     60      -  0.7  1.5    1,426,856    2,753,917 
 Total Measured & 
  Indicated (UG)      Oxides + Sulphides          1,216,786     98   0.07  0.4  0.9    3,838,709    5,332,156 
 
  DEL TORO     Measured (UG)        Oxides          631,191    142   0.00  1.3  1.5    2,883,228    2,887,098 
 Indicated (UG)       Oxides                        808,295    157   0.04  1.9  1.4    4,076,180    4,134,962 
 Total Measured & 
  Indicated (UG)      Oxides                      1,439,486    150   0.02  1.6  1.4    6,959,408    7,022,059 
 Measured (UG)        Sulphides                     169,994    207   0.01  3.3  2.1    1,131,518    1,920,105 
 Indicated (UG)       Sulphides                     672,288    165   0.04  3.7  2.0    3,557,624    6,886,611 
 Total Measured & 
  Indicated (UG)      Sulphides                     842,282    173   0.03  3.6  2.0    4,689,142    8,806,715 
 Total Measured & 
  Indicated (UG)      Oxides + Sulphides          2,281,768    159   0.03  2.4  1.6   11,648,550   15,828,775 
 
               Measured & 
   LA LUZ       Indicated (UG)      Oxides        2,656,428    222      -    -    -   18,960,160   18,960,160 
 Measured & 
  Indicated (UG)      Oxides (tailings)           1,403,233     90      -    -    -    4,060,348    4,060,348 
 Measured & 
  Indicated (UG)      Sulphides                   1,052,170    316      -    -    -   10,689,662   10,689,662 
 Total Measured & 
  Indicated (UG)      Oxides + Sulphides          5,111,831    205      -    -    -   33,710,170   33,710,170 
 
PEÑASCO   Total Measured & 
   QUEMADO      Indicated (UG)      Oxides        2,565,000    117      -    -    -    9,648,598    9,648,598 
 
               Total Measured & 
 LA FRAZADA     Indicated (UG)      Sulphides       583,000    251   0.17  0.9  2.4    4,695,342    6,499,887

-------------  -------------------  -----------  ----------  -----  -----  ---  ---  -----------  ----------- 
 Total Measured and 
  Indicated 
  Resources           Oxides + Sulphides         16,654,381    174   0.02  0.8  1.3   93,320,430  102,309,851 
 ===================  =========================  ==========  =====  =====  ===  ===  ===========  =========== 
 
 
INFERRED RESOURCES 2013 
==================================  ===========  ==========  =====  =====  ===  ===  ===========  =========== 
                                    Mineral                     Ag     Au   Pb   Zn                 AgEq (Oz) 
Mine/Project   Category             type             Tonnes  (g/t)  (g/t)  (%)  (%)      Ag (Oz)      in situ 
-------------  -------------------  -----------  ----------  -----  -----  ---  ---  -----------  ----------- 
                                    Oxides + 
LA ENCANTADA   Total Inferred (UG)   Sulphides    4,348,724    156      -  1.1  1.5   21,822,446   21,822,446 
 
 LA PARRILLA   Inferred (UG)        Oxides        4,928,449    178   0.06  0.4  0.3   28,251,697   28,795,192 
 Inferred (UG)        Sulphides                   8,325,556    168      -  1.9  2.3   45,094,192   74,162,354 
 Total Inferred (UG)  Oxides + Sulphides         13,254,005    172   0.02  1.3  1.5   73,345,889  102,957,546 
 
 SAN MARTIN    Inferred (UG)        Oxides       10,010,526    172   0.19    -    -   55,316,021   58,819,635 
 Inferred (UG)        Sulphides                     993,661     54      -  0.7  1.6    1,722,204    3,622,607 
 Total Inferred (UG)  Oxides + Sulphides         11,004,187    161   0.17  0.1  0.1   57,038,225   62,442,241 
 
  DEL TORO     Inferred (UG)        Oxides        1,602,922    167   0.04  2.4  2.1    8,589,178    8,701,325 
 Inferred (UG)        Sulphides                   5,283,964    174   0.12  3.5  5.4   29,500,830   70,594,560 
 Total Inferred (UG 
  & Zn body)          Oxides + Sulphides          6,886,886    172   0.10  3.3  4.6   38,090,008   79,295,885 
 
                                    Oxides + 
   LA LUZ      Total Inferred (UG)   Sulphides    1,854,964    220      -    -    -   13,120,462   13,120,462 
 
PEÑASCO 
   QUEMADO     Total Inferred (UG)  Oxides          100,000     41      -    -    -      131,818      131,818 
 
 LA FRAZADA    Total Inferred (UG)  Sulphides       534,000    225   0.17  0.9  2.6    3,862,911    5,618,554 
 
 Total Inferred 
  Resources           Oxides + Sulphides         37,982,766    170   0.08  1.2  1.6  207,411,760  285,388,953 
 ===================  =========================  ==========  =====  =====  ===  ===  ===========  =========== 
 
 
 
               Other (Inferred Zn 
  DEL TORO      body)               Sulphides     4,181,904      7   0.01  0.2  3.1      991,969   12,522,062 
 
               Historic reserves 
  PLOMOSAS      (UG)                Sulphides       895,512    191   0.80  2.1  3.4    5,499,152   11,001,048 
=============  ===================  ===========  ==========  =====  =====  ===  ===  ===========  =========== 
 
 
(1)  In all cases, the metal prices considered were $24.00 USD/Oz - Ag, 
     $1,400.00 USD/Oz - Au, $0.95 USD/lb - Pb, and $0.90 USD/lb - Zn. 
(2)  For the La Luz Silver Project, there have been no changes since the 
     Technical Report dated July 25, 2008, except an update of Ag eq. 
     according to recent metal prices. 
(3)  Management of First Majestic is not confident that the open pit mining 
     plan contained in the technical reports commissioned by Silvermex for the 
     La Guitarra Silver Mine is feasible. Accordingly, the Reserve and 
     Resource calculations contained in the La Guitarra Silver Mine technical 
     reports will need to be recalculated on the basis of an underground only 
     mine. The results of this review may result in a revised mine plan which 
     may necessitate the filing of a new technical report. Accordingly, the 
     Resource and Reserve calculations contained in the technical reports 
     commissioned by Silvermex for the La Guitarra Silver Mine have not been 
     included in this Table. Readers are cautioned against relying on the 
     previously filed technical reports relating to the La Guitarra Silver 
     Mine and upon the Resource and Reserve calculations therein. 
(4)  The Reserve and Resources information provided above is based on internal 
     qualified persons' (QPs) reporting as at December 31, 2013. The 
     information provided was reviewed and validated by the Company's internal 
     QP Mr. Ramon Davila, who has the appropriate relevant qualifications, and 
     experience in mining and resource geology. 
(5)  The modification factors for Reserves and Resources are different, and 
     are different for all mines.

The following table shows the total tonnage mined from each of the Company’s five producing properties during 2013, including total ounces of silver and silver equivalent ounces produced from each property and the tonnage mined from within and outside of delineated Reserves and Resources at each property.

TONNAGE AND OUNCES MINED IN 2013

 
 
               LA         LA                                LA 
            ENCANTADA  PARRILLA   DEL TORO   SAN MARTIN  GUITARRA     TOTAL 
==========  =========  =========  =========  ==========  =========  ========== 
TONNES OF 
    ORE 
 PROCESSED  1,139,241   788,335    319,861    322,618     171,662   2,741,717 
  OZ OF 
  SILVER 
 PRODUCED   4,081,094  3,115,997  1,484,598  1,250,774    709,002   10,641,465 
  OZ OF 
  SILVER 
    EQ. 
 PRODUCED    81,440    1,103,377   452,538    120,116     392,591   2,150,062 
 TOTAL OZ 
 OF SILVER 
    EQ. 
 PRODUCED   4,162,534  4,219,374  1,937,136  1,370,890   1,101,593  12,791,527 
  TONNES 
   MINED 
   FROM 
 RESERVES    954,864    740,726    319,861    255,171     152,487   2,423,109 
  TONNES 
   MINED 
   FROM 
  OUTSIDE 
 RESERVES    184,378    47,609        0        67,447     19,175     318,609 
==========  =========  =========  =========  ==========  =========  ==========

First Majestic is a mining company focused on silver production in México and is aggressively pursuing the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its corporate growth objectives.

FIRST MAJESTIC SILVER CORP.

“signed”

Keith Neumeyer, President & CEO

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” in First Majestic Silver Corp.’s Annual Information Form for the year ended December 31, 2013, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

SOURCE First Majestic Silver Corp.

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