Investors

First Majestic Silver Corp.: Record First Quarter Financial Results

May 16, 2008

FIRST MAJESTIC SILVER CORP. (FR-T) (the “Company”) is pleased to announce the unaudited financial results for the Company’s first quarter ending March 31, 2008. The full version of the financial statements can be viewed on the Company’s web site at www.firstmajestic.com or on SEDAR at www.sedar.com.

Keith Neumeyer, President and CEO commented: “We’ve had an outstanding start to 2008. Some challenges still exist and several improvements are either underway or planned for 2008. However, the momentum underway at each of the Company’s three producing silver mines is extremely encouraging. This first quarter marks the best quarter in the Company’s history and is the first quarter that a bottom line earnings per share has been achieved.”


Summary of Financial Results

• Sales revenues for the quarter were $12.96 million, an increase of 28% compared to $10.16 million for the quarter ended March31, 2007.
• Mine operating earnings for the quarter amounted to $4.7 million, compared to $0.4 million for the quarter ended March 31, 2007.
• The Company generated operating income of $1.5 million for the quarter, compared to an operating loss of $1.4 million for the quarter ended March 31, 2007.
• The Company generated its first quarterly net income for the quarter ended March 31, 2008, with net income of $1,065,323 ($0.02 per share) compared to a net loss of $3,061,899 ($0.06 per share) for the quarter ended March 31, 2007. The net income for the year was after deducting a non-cash stock-based compensation expense of $1,108,216.
• The Company has approximately $53 million in its treasury, is generating significant cash flows from operations, and has sufficient capital to support its operating requirements for the foreseeable future provided it does not undertake any major acquisitions, or any major capital projects.
• Total quarterly production consisted of 1,061,720 ounces of silver equivalents, including 895,358 ounces of silver, 240 ounces of gold, and 1,857,897 pounds of lead. Shipments in the quarter totalled 1,019,490 ounces of silver equivalents.
• In the quarter, the Company invested $5,593,433 in capital expenditures on its mineral properties, and a further $3,694,972 on additions to plant and equipment.
• Direct cash costs per ounce of silver for the quarter ended March 31, 2008, were $US6.51 per ounce, and averaged $4.38 for La Parrilla and La Encantada combined. Start-up costs of the new flotation circuit, and low grades of the sulphide ore feed to the mill in March at San Martin were responsible for increasing the consolidated cash costs to $US6.51. It is anticipated that due to changes commenced in the first quarter at San Martin, that costs will begin to improve at this operation in the second quarter.

2008 Outlook

As the Company’s Reserves and Resources continue to grow, the Company continues to focus on expansion of its mills and mining operations in order to increase output. Management at First Majestic is focused on continuing the ongoing improvements at each operation to achieve production and resource targets for 2008. The Company is targeting 5.3 million of silver equivalent production for 2008, and continued increases in NI 43-101 compliant silver Resources. The Company’s primary focus is to build long term sustainable mining operations, and shareholders can be assured management at First Majestic is very focused on growth and profitable mining operations.

Improvements made to date in 2008 include; the completion of the flotation circuit at the San Martin; the replacement of the secondary crusher at the La Encantada; and, the addition of two new filter presses at the La Parrilla.
An important part of improving mining efficiencies and costs, 20 pieces of underground equipment were ordered for delivery in 2008, of which 12 have already been delivered. This new equipment includes scoop-trams, underground trucks and jumbos.

Other improvements that are either in the planning stage or scheduled for the remainder of the year, include: mill expansion plans at the La Encantada anticipated to be launched in the second quarter; extensive geophysics program at the La Encantada property is scheduled; changes underway at the San Martin to increase tonnage and reduce the cost per tonne; expansion of the San Martin mill in the early planning stage; the Chalchihuites project is undergoing an extensive development program which includes diamond drilling in order to release a NI 43-101 report in July; at the Cuitaboca project the exploration and development program will continue through the year for an anticipated release of a NI 43-101 report by year end; updated NI 43-101 reports will be released on each of the La Parrilla, La Encantada and San Martin Silver Mines during the year.

Reserve and Resource development remains a top priority for the Company. Presently twenty drill rigs are operating; five rigs at La Parrilla and three at the Chalchihuites, nine rigs at San Martin and three rigs at La Encantada.
The Company’s plan for 2008 also includes the completion of over 82,000 metres of drilling and over 46,000 metres of underground development.

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.


FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

“SIGNED”
Keith Neumeyer, President & CEO

This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.