Silvermex Acquisition



Report of Organizational Actions Affecting Basis of Securities
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Tax Information for Silvermex Shareholders

For summary information on the tax considerations for Canadian and U.S. shareholders of Silvermex who tendered their shares for shares of First Majestic Silver Corp. ("FMS") under the Arrangement Agreement, please refer to Silvermex's Information Circular dated May 22, 2012 (pages 128 through 142 - see link below).

Summary of the Consideration paid by FMS

FMS's offer to Silvermex entitled shareholders to receive 0.0355 FMS shares and $0.0001 for each (1) share of Silvermex tendered to FMS.

Canadian Shareholders of Silvermex - Potential Tax Deferred Rollover

For those shareholders that reside in Canada, please refer to the Canadian tax language on pages 128 - 135 of the Silvermex Information Circular that explains the income tax results of tendering stock to FMS. Page 129 of the Silvermex Information Circular specifically addresses the potential deferral of Canadian federal and provincial income taxes. A manual tax election form must be filed with the Canada Revenue Agency and, where applicable, with the provinces of Quebec and Alberta.

Notice to all shareholders of Silvermex:

All shareholders of Silvermex that tendered their shares for FMS shares under the Arrangement Agreement should consult their own tax advisors regarding the income tax consequences applicable to their particular circumstances. The tax language provided in the Information Circular should be helpful in the discussions with their tax advisor.

With the exception of the execution of the election form by FMS, compliance with the requirements for a valid tax election will be the sole responsibility of Silvermex shareholders making the election. FMS will not be responsible or liable for any taxes, interest, penalties, damages or expenses resulting from the failure by anyone to provide information necessary for the election, in accordance with the procedures set out in the PwC Tax Election website, or to properly file it within the time prescribed and in the form prescribed under the Income Tax Act (Canada) (or the corresponding provisions of any applicable provincial legislation).


Silvermex Information Circular