Investors

La Parrilla Silver Mine Update and New NI 43-101 Resource

January 30, 2008

FIRST MAJESTIC SILVER CORP. (FR-T) (“First Majestic” or the “Company”) is pleased to announce an update regarding its activities in Mexico at the La Parrilla Silver Mine and the resource development presently underway.

The La Parrilla Silver Mine is located in the Municipality of Nombre de Dios, Durango State, México approximately a 45 minute drive from the City of Durango east along Highway 45. The La Parrilla Silver Mine consists of underground silver / lead / zinc mining operations and a cyanidation and flotation ore processing plant with an installed capacity of 800 tonnes per day (tpd). The plant processes both oxide and sulphide silver ores in two separate 400 tpd parallel circuits. The La Parrilla Silver Mine property consists of 53,249 hectares (131,581 acres) of mining rights that cover 3,434 hectares (8,484 acres) within 36 titled concessions in addition to 49,816 hectares (123,091 acres) in two approved claim applications. The mill is presently running at 740 tpd or 93% capacity. This production rate continues to increase as operational efficiencies are gained. Both doré metal bars and flotation concentrates are being produced.

First Majestic is continuing an aggressive development and exploration program in the area of the La Parrilla Silver Mine. This program is focusing on developing additional Resources and Reserves and includes drilling with six rigs and underground development. The development program includes underground workings, such as ramps for access, drifting and crosscutting into the Los Rosarios System, La Blanca, San Marcos, Quebradillas and Vacas areas. This program is designed to accomplish the following: 1) planning and developing systematic production, increasing operating capacity and efficiency; 2) recovering oxide and sulphide mineralization consolidating mining blocks and increasing Reserves to support reasonable production increases; 3) supporting exploration activities for development, channel sampling and underground drilling; 4) carrying out an aggressive exploration program including deeper drilling from underground sites; and 5) focusing exploration efforts into regional exploration targets.

To date, La Parrilla Silver Mine resource development continues to exceed Management’s expectations due to the success of the ongoing drilling program. In addition, production levels continue to increase as improvements in the operations are achieved.

La Parrilla Silver Mine district comprises numerous mineralized structures, vein, breccia zones and metasomatic mineral concentrations within the area, including additional geologic potential to discover other projected concentrations in regional and local structures and in their projected intersections. Some of the known deposits within the boundaries of La Parrilla Silver Mine’s area are: the Los Rosarios, La Rosa and La Blanca/San José vein system (Los Rosarios System); San Marcos; Quebradillas; Las Vacas; San Nicolas; Las Animas, and numerous other targets for exploration along known structures and projected intersections, such as Milagros, La Víbora and Sacramento.

First Majestic launched the present aggressive drilling program in 2005 to explore the various areas of interest within the La Parrilla Silver Mine holdings. From that time to October 2007, a total of 213 drill holes have been completed for a total of 54,313 drilled metres. In addition, underground mine workings for development and exploration total 10,606 metres in declines, drifts, ramps and raises. The following Reserve / Resource Tables outline the current NI 43-101 compliant estimates as of October 31, 2007. However, only 165 holes were included in this estimate as 48 out of the 213 holes were still pending from Inspectorate Lab of Reno, Nevada.

The following summary tables were taken from the complete La Parrilla Silver Mine NI 43-101 Technical Report prepared by Pincock Allan & Holt, Lakewood, Colorado (PAH). Shareholders and interested parties are encouraged to read this positive report which can be viewed on SEDAR (www.sedar.com) and the Company’s website at www.firstmajestic.com.

Total Proven + Probable Mineral Reserves (Mineable Reserves) (1) (2) (7)

Total Measured + Indicated Resources (6) (7)

Total Inferred Resources (6) (7)

1. Cutoff and silver equivalent based on sales. Prices used for evaluation: Ag-US$10.50/oz; Pb-US$0.68/lb; Zn-US$1.16/lb.
2. Cutoff grade estimated for oxides ore as 221 g/tonne Ag only, and for sulfides ore as 215 g/tonne Ag only. Zinc is not considered in reserves.
3. Cutoff grade estimated for oxides ore as 215 g/tonne - Ag equivalent including Au credit = 6 g/tonne Ag.
4. Cutoff grade estimated for Ag/Pb sulfides ore as 185 g/tonne - Ag equivalent including Pb credit = 30 g/tonne Ag.
5. Cutoff grade estimated for Ag/Pb/Zn sulfides in resources as 132 g/tonne - Ag equivalent including Pb credit = 30 g/tonne Ag and Zn credit = 53 g/tonne Ag.
6. Figures in table may not match due to rounding.
7. Total Proven + Probable Reserves, Total Measured + Indicated Resources and Total Inferred Resources are exclusive of each other and thus are not combined.
8. Samples are numbered & bagged and sent to Inspectorate lab in Durango City. The samples are crushed and pulverized at Inspectorate in Durango City and sent to Reno, Nevada for assaying.

First Majestic’s exploration and development efforts continue to achieve significant results. During the period from June to October, 2007, substantial increases have been achieved over the previously reported Reserves and Resources. Proven and Probable Reserves have increased by 67% from 3,660,727 ounces Silver equivalent to 6,107,551 ounces Silver equivalent; Measured and Indicated Resources increased by 123% from 13,169,493 ounces Silver equivalent to 29,336,405 ounces Silver equivalent, and Inferred Resources have increased by 8% from 35,784,493 ounces Silver equivalent to 38,639,050 ounces Silver equivalent.

It should be noted that the cut off period for the calculation of this newly updated NI 43-101 Reserve / Resource estimate was October 31, 2007. Therefore, any assays of drilling core or sampling received after October 31, 2007 has not been included in this report. Furthermore, since October 31st to December 31, 2007, an additional 16 drill holes for a total drilled depth of 5,137 metres and 901 metres of underground development have been completed. Also of interest, the original 85 diamond drill holes completed by Grupo Mexico totalling 15,563 metres at the Quebradillas/Vacas areas have not been included in the Reserve / Resource estimate since this information is considered to be of historic nature. First Majestic is in the process of updating these historic resources to NI 43-101 compliant Resources.

Significant geologic potential exists within several additional areas of the La Parrilla Silver Mine holdings. These areas are presently being mapped and studied by a geophysics program in order to define future exploration targets. The most promising areas appear to be the San José Mine, Sacramento, Cerro Santiago, stockwork zone to the east of Quebradillas, Las Víboras, San Marqueña, Mina Santa Paula, colour anomaly to the west of San José de la Parrilla, La Protectora, and others. These areas of interest are being investigated and explored on a priority basis. Furthermore, in PAH’s opinion, numerous other areas of outcropping mineralized structures and alteration zones within the La Parrilla Silver Mine district remain to be explored.

Geophysical investigations to confirm previous studies within the areas of Quebradillas, Sacramento, Las Vacas, and Santa Paula have now been completed. These investigations have confirmed the presence of IP, resistivity and magnetic anomalies which will be further investigated by direct methods, such as drilling and underground access where possible.

First Majestic’s aggressive investment in development and exploration at the La Parrilla Silver Mine will continue throughout 2008. This year’s program will include; IP, resistivity and magnetic surveying at the Cerro Santiago, La Cruz, Michis and Providencia areas; geochemical investigations to complement exploration at the Cerro Santiago, Providencia, La Cruz and Michis areas; a drilling program that includes a minimum of 24,700 metres in 119 holes from surface and underground sites at Quebradillas, Vacas, San Marcos, Santa Paula, Cerro Santiago, Sacramento and Michis areas, and approximately 900 metres of drifting, crosscutting and ramp development.

The Company’s independent Qualified Persons under the policies of National Instrument 43-101, who have reviewed the contents of this news release and who authored the most recent qualifying report, are Leonel López, C.P.G., P.G., and Richard Addison P.E., Principal Process Engineer, of Pincock Allen & Holt. Both are employees of PAH and are independent of the Company.

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.

Cautionary Notes to U.S. Investors Concerning Reserve and Resource Estimates</em.

The definitions of proven and probable reserves used in National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) differ from the definitions in the United States Securities and Exchange Commission (“SEC”) Industry Guide 7. Under SEC Guide 7 standards, a “Final” or “Bankable” feasibility study is required to report reserves, the three year history average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101; however, these terms are not defined terms under SEC Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.