2016

First Majestic Updates Mineral Reserve and Resource Estimates for Year End 2015 and Files Form 40-F Annual Report


March 31, 2016

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 31, 2016) - FIRST MAJESTIC SILVER CORP. (the "Company" or "First Majestic") (FRANKFURT:FMV)(TSX:FR)(NYSE:AG)(BVM:AG) is pleased to announce its 2015 Mineral Reserve and Resource estimates for its existing mineral property assets in Mexico as of December 31, 2015. Metal prices used to estimate the 2015 reserve estimates were reduced compared to previous estimates to: $17.50/oz for silver, $1,200/oz for gold, $0.85/lb for lead and $0.85/lb for zinc.

The following table shows the total tonnage mined from each of the Company's six producing properties during 2015, including total ounces of silver and silver equivalent ounces produced from each property and the tonnage mined from delineated reserves and resources at each property.

2015 Production Table

LA ENCANTADA LA PARRILLA DEL TORO SAN MARTIN LA GUITARRA SANTA ELENA
(2)
TOTAL
TONNES OF ORE PROCESSED 851,567 667,702 555,564 349,193 174,003 254,625 2,852,654
OZ OF SILVER PRODUCED 2,529,785 2,434,095 2,261,633 2,296,965 945,662 673,969 11,142,109
OZ OF SILVER EQ. PRODUCED FROM OTHER METALS (1) 9,655 1,602,303 1,562,608 425,094 512,066 832,436 4,944,162
TOTAL OZ OF SILVER EQ. PRODUCED 2,539,440 4,036,398 3,824,241 2,722,059 1,457,728 1,506,405 16,086,271
TONNES MINED FROM MATERIAL IN RESERVES 244,186 589,479 526,534 303,777 120,182 254,625 2,038,783
TONNES MINED FROM MATERIAL NOT IN RESERVES 607,381 78,223 29,030 45,416 53,821 - 813,871
(1) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine.
(2) Santa Elena production corresponds to the period October 1, 2015 to December 31, 2015.
(3) Totals may not add up due to rounding.

The Company completed 36,098 metres of diamond drilling at its six operating mines in 2015, representing an 18% reduction in metres drilled compared to the prior year. For 2016, First Majestic is planning to drill approximately 65,000 metres to further define known mineralized ore bodies at its operating mines. A combination of surface and underground drill rigs will focus on assisting mining activities, definition drilling and to support future updates to the Company's NI 43-101 Technical Reports.

Metal content in the Proven and Probable Reserve category totaled 100.6 million ounces of silver, relatively unchanged from the Company's previous estimate of 101.1 million ounces of silver. The most significant change to Mineral Reserves, apart from the addition of the Santa Elena mine, occurred at La Encantada where the old tailings were upgraded from Inferred Resources to Probable Reserves following the significant improvement in silver recoveries from 15% to 70% due to the roasting of tailings. This upgrade resulted in a 48% decrease in the silver reserve grade to 143 g/t due to a 109% increase in tonnes, mostly consisting of low grade tailings. Silver metal content in the Measured and Indicated Resource category totaled 115.2 million ounces, representing a 24% decrease from 2014 estimates primarily due to the reclassification of the La Luz project as a historical resource, offset by the addition of the Santa Elena mine. In addition, the silver metal content in the Inferred Resource totaled 184.9 million ounces, representing an increase of 9% compared to previous estimates primarily due to the addition of the La Joya property which was acquired as a result of the acquisition of SilverCrest Mines Ltd.

The complete 2015 Mineral Reserve and Resource estimates for all metals, tonnage and grades are shown below in the following tables:

PROVEN AND PROBABLE MINERAL RESERVES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015

Mine Category Mineral Type k
tonnes
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag-Eq
(g/t)
Ag
(k Oz)
Ag-Eq
(k Oz)
LA ENCANTADA Proven (UG) Oxides 251 247 - - - 247 1,991 1,991
Probable (UG) Oxides 1,473 214 - - - 214 10,120 10,120
Probable (UG) Oxides - Flotation 809 147 - 2.35 - 196 3,817 5,093
Probable (Tailings) Oxides 4,138 110 - - - 110 14,633 14,633
Total Proven and Probable (UG) Oxides + Tailings 6,670 143 - 0.29 - 148 30,561 31,837
LA PARRILLA Proven (UG) Oxides 239 230 - - - 230 1,769 1,769
Probable (UG) Oxides 576 242 - - - 242 4,481 4,481
Total Proven and Probable (UG) Oxides 815 238 - - - 238 6,251 6,251
Proven (UG) Sulphides 676 212 - 2.15 2.27 331 4,610 7,210
Probable (UG) Sulphides 870 191 - 1.86 2.00 296 5,346 8,266
Total Proven and Probable (UG) Sulphides 1,546 200 - 1.99 2.12 311 9,956 15,475
Total Proven and Probable (UG) Oxides + Sulphides 2,362 213 - 1.30 1.39 286 16,207 21,726
SAN MARTÍN Proven (UG) Oxides 685 251 0.25 - - 269 5,523 5,915
Probable (UG) Oxides 1,074 269 0.10 - - 276 9,281 9,526
Total Proven and Probable (UG) Oxides 1,759 262 0.16 - - 273 14,804 15,440
DEL TORO Proven (UG) Transition + Sulphides 870 199 0.07 3.58 1.94 319 5,555 8,911
Probable (UG) Transition + Sulphides 1,244 297 0.22 5.29 3.08 483 11,875 19,326
Total Proven and Probable (UG) Transition + Sulphides 2,114 256 0.16 4.59 2.61 415 17,430 28,238
LA GUITARRA Proven (UG) Sulphides 169 223 1.75 - - 333 1,210 1,808
Probable (UG) Sulphides 817 260 1.41 - - 349 6,820 9,157
Total Proven and Probable (UG) Sulphides 986 253 1.47 - - 346 8,030 10,965
SANTA ELENA Probable (UG) Sulphides 3,210 107 1.57 - - 208 11,059 21,499
Probable (PAD) Oxides Spent Ore 2,299 33 0.65 - - 75 2,462 5,556
Total Probable Oxides + Sulphides 5,509 76 1.19 - - 153 13,521 27,054
Total Proven and Probable All mineral types 19,399 161 0.44 0.76 0.45 217 100,554 135,260
(1) Mineral Reserves have been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
(2) Metal prices considered for Mineral Reserves estimates were $17.50 USD/oz Ag, $1,200 USD/oz Au, $0.85 USD/lb Pb, and $0.85 USD/lb Zn.
(3) The Mineral Reserves information provided above for La Encantada, La Parrilla, Del Toro, San Martín, La Guitarra and Santa Elena is based on internal estimates prepared as of December 31, 2015. The information provided was reviewed and validated by the Company's internal Qualified Person, Mr. Ramon Mendoza Reyes, P.Eng., who has the appropriate relevant qualifications, and experience in mining and reserves estimation practices
(4) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2015 Annual Information Form.
(5) The cut-off grades and modifying factors used to convert Mineral Reserves from Mineral Resources are different for all mines. The cut-off grades and factors are listed in each mine section of the 2015 Annual Information Form.

MEASURED AND INDICATED MINERAL RESOURCES WITH AN EFFECTIVE DATE OF DECEMBER 31, 2015

Mine / Project Category Mineral
Type
k
tonnes
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Ag-Eq
(g/t)
Ag
(k Oz)
Ag-Eq
(k Oz)
LA ENCANTADA Measured (UG) Oxides 283 267 - - - 267 2,433 2,433
Indicated (UG) Oxides 854 299 - - - 299 8,198 8,198
Indicated (UG) Oxides - Flotation 734 246 - 4.07 - 325 5,795 7,662
Indicated (Tailings) Oxides 4,222 110 - - - 110 14,931 14,931
Total Measured and Indicated (UG) Oxides + Tailings 6,093 160 - 0.49 - 170 31,357 33,224
LA PARRILLA Measured (UG) Oxides 281

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