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First Majestic Produces a New Record of 3.37 million Silver Equivalent Ounces

October 16, 2013

TSX – FR

NYSE – AG

Frankfurt – FMV (WKN: A0LHKJ)

VANCOUVER, Oct. 16, 2013 /PRNewswire/ – First Majestic Silver Corp. (“First
Majestic” or the “Company”) is pleased to announce that total
production at its five operating silver mines in Mexico for the third
quarter ending September 30, 2013, reached a new quarterly record of
3,370,457 equivalent ounces of silver, representing a 38% increase
compared to the same quarter in 2012.

Total silver production for the quarter consisted of 2,689,237 ounces of
silver, representing an increase of 22% compared to the same quarter in
2012. In addition, 8,543,551 pounds of lead and 2,232,881 pounds of
zinc were produced representing an increase of 158% and 164%,
respectively, compared to the same quarter of the previous year. Also,
2,942 ounces of gold were produced, representing an increase of 91%
compared to the third quarter of 2012.

Keith Neumeyer, President & CEO of First Majestic, states, “While the
third quarter was another volatile period for silver prices, we
continue to make progress with our growth strategy in Mexico. The San
Martin mill expansion, which is now complete, marks the third major
project completed by First Majestic in 2013, following the recent
production start-up of Phase 1 at the Del Toro Silver Mine and the
completion of the mill expansion at the La Guitarra Silver Mine. Our
operations team deserves to be recognized for a job well done.”

Production Details Table:

     _____________________________________________________________________
    |Consolidated Production    |Quarter Ended|Quarter Ended|% Change over|
    |Results                    |September 30,|September 30,|Prior Year's |
    |                           |    2013     |    2012     |   Quarter   |
    |___________________________|_____________|_____________|_____________|
    |Ore processed/tonnes milled|    641,345  |    666,688  |       -4%   |
    |___________________________|_____________|_____________|_____________|
    |Total production - ounces  |   3,370,457 |   2,438,085 |       38%   |
    |of silver equivalent       |             |             |             |
    |___________________________|_____________|_____________|_____________|
    |Total silver ounces        |   2,689,237 |   2,205,237 |       22%   |
    |produced                   |             |             |             |
    |___________________________|_____________|_____________|_____________|
    |Silver Grade (g/t)         |       202   |       167   |       21%   |
    |___________________________|_____________|_____________|_____________|
    |Silver Recovery (%)        |       65%   |       62%   |        5%   |
    |___________________________|_____________|_____________|_____________|
    |Pounds of lead produced    |   8,543,551 |   3,307,944 |      158%   |
    |___________________________|_____________|_____________|_____________|
    |Equivalent ounces from lead|    382,385  |     99,263  |      285%   |
    |___________________________|_____________|_____________|_____________|
    |Pounds of zinc produced    |   2,232,881 |    844,953  |      164%   |
    |___________________________|_____________|_____________|_____________|
    |Equivalent ounces from zinc|     88,754  |     24,577  |      261%   |
    |___________________________|_____________|_____________|_____________|
    |Gold ounces produced       |      2,942  |      1,537  |       91%   |
    |___________________________|_____________|_____________|_____________|
    |Equivalent ounces from gold|    182,891  |     91,690  |       99%   |
    |___________________________|_____________|_____________|_____________|
    |Tonnes of iron ore produced|      5,203  |      4,673  |       11%   |
    |___________________________|_____________|_____________|_____________|
    |Equivalent ounces from iron|     27,190  |     17,318  |       57%   |
    |___________________________|_____________|_____________|_____________|

Operational Review:

The total ore processed during the quarter at the Company’s five
operating silver mines, La Encantada, La Parrilla, San Martin, La
Guitarra and Del Toro, amounted to 641,345 tonnes milled, representing
a slight decrease of 4% over the previous quarter primarily due to the
continued optimization at the La Encantada mine in addition to the
effects of two major hurricanes which hit Mexico in the month of
September.

Silver grades in the quarter for the five mines remained relatively
unchanged from the previous quarter at 202 g/t of silver. Combined
silver recoveries averaged 65% in the quarter and remained in line with
the second quarter average of 64%.

The Company’s underground development in the third quarter consisted of
10,923 metres, a 19% decrease compared to 13,479 metres completed in
the previous quarter. This decrease is part of a planned reduction of
capital expenditures aimed at reducing costs due to the lower metal
price environment.

During the quarter, six diamond drill rigs were operating at the
Company’s five operations. The Company completed 7,823 metres of
diamond drilling in the quarter, compared to 25,469 metres in the prior
quarter, representing a 69% decrease resulting from the previously
announced exploration budget cuts.

At the Del Toro Silver Mine:

        --  Throughput in the new flotation mill averaged 1,061 tpd in the
            third quarter with head grades of 244 g/t silver, 4.3% lead and
            2.8% zinc. Silver recoveries averaged 69% during the quarter
            compared to 72% from the previous quarter due to a variation in
            the ore feed from a transition zone between oxides and
            sulfides. Further testing is underway at the Company's central
            lab with the objective of improving overall metallurgical
            recoveries, however, once the new cyanidation circuit is
            operational, some of these ores will be processed through this
            circuit.
        --  Phase 2 construction, including the Merrill-Crowe area, the
            clarification circuit, and the installation of two precipitate
            filter presses and two induction furnaces is nearing
            completion.  Phase 2 includes the addition of a 1,000 tpd
            cyanidation circuit allowing the facility to produce silver
            doré bars. Once completed, which is expected in November, the
            facility will have total capacity of 2,000 tpd.
        --  During the quarter, the crushing circuit was expanded to allow
            for the capacity increase to 2,000 tpd.  In addition, the
            installation of the 12' by 14' oxide ball mill, pumps, motors
            and other mechanisms for the cyanidation circuit were also
            completed.
        --  During the quarter, tailings filter #3 was successfully
            installed and tested.  Progress continues in regards to the
            installation of the final tailings filter #4, which is now 95%
            complete and undergoing initial testing.  Filters #1 and #2 are
            currently in operation.  These four tailing filters will be
            able to handle up to 4,000 tpd and will recycle approximately
            80% of the water used throughout the milling process.
        --  The construction of the 45 km, 115,000 kW power line from the
            state of Durango has experienced several delays due to its
            length and complexities. Originally scheduled for completion in
            July, then expected by November, the Company's latest estimate
            for completion is prior to year end. In order to have
            sufficient power for Phase 2, the National power company, CFE,
            has arranged to increase the current power levels on the
            existing 34,000 kW power line by providing up to 6 MW for the
            interim period until the new power line is completed. This
            upgrade will allow the Company to commission the cyanidation
            circuit in November. Once connected to the larger 115,000 kW
            power line, cost savings are expected to be achieved resulting
            from the discontinued use of diesel powered generators which
            are currently working together with the 34,000 kW power line to
            supply the required power to the operation.
        --  In order to conserve capital in 2014, and to better utilize the
            abundance of oxide ore being produced from the San Juan area,
            the Company is evaluating the earlier ramping up of the
            cyanidation circuit to 2,000 tpd and the delay of the
            construction of the 4,000 tpd shaft and postponing the
            installation of the second SAG Mill which would be for the
            purpose of reaching 2,000 tpd through the flotation circuit.
            The current evaluation underway is determining the capital
            savings of bringing on the 2,000 tpd cyanidation circuit in
            2014 and delaying the expansion of production through the
            flotation circuit until 2015. It is currently not expected that
            this modification of the expansion plan at Del Toro will
            materially affect 2014 production guidance, however, once the
            evaluation is completed, the Company will release full guidance
            for the year as it does in normal course in January.
        --  Total exploration metres drilled in the third quarter amounted
            to 2,856 metres, compared to 6,579 metres drilled in the
            previous quarter as a result of the reduction to the
            exploration budget. In addition, 1,817 metres of development
            were completed in the third quarter of 2013, compared to 3,194
            metres of development in the previous quarter. During the
            quarter, one underground drill rig was active at Del Toro.

At the La Encantada Silver Mine:

        --  The cyanidation mill averaged 2,959 tpd during the quarter
            consisting of 54% fresh mine ore and 46% of old tailings. Due
            to a breakdown that occurred in the gear and motor at ball mill
            #1, a complete upgrade of the motor foundation and gear system
            was required.  The ball mill remained offline for a period of 6
            weeks resulting in the reduction of fresh ore processing and
            the increase of old tailings sent to the plant.  The reduction
            of fresh ore and the increase of tailings feed produced a
            combined head grade of 228 g/t of silver with a mill recovery
            of 49%.  Ball mill #1 is now fully operational and silver
            grades and recoveries are back to normal levels.
        --  Underground development continues to be focused on new areas
            within the mine defined by the latest exploration program.
            Currently, the primary areas of focus are the surrounding ore
            bodies of the Milagros and San Javier breccia pipes.
            Additionally, mine development and production continue from the
            San Francisco vein and the recently discovered "990" and
            "990-2" chimneys. At the newly discovered Regalo vein, a new
            area was prepared for long-hole drilling aimed at increasing
            the production of fresh ore to a rate of 2,000 tpd by the
            middle of next year.
        --  A total of 2,928 metres of exploration drilling was completed
            in the third quarter, compared to 2,140 metres of drilling in
            the previous quarter, representing an increase of 37%. In
            addition, a total of 3,195 metres of underground development
            were completed in the third quarter, compared to 3,597 metres
            of development in the previous quarter, representing a decrease
            of 11%.
        --  Three diamond drill rigs are active underground at La Encantada
            with the objective of defining Reserves and Resources in the
            newly discovered areas in addition to assisting in mining
            activities.
        --  A substantial portion of the current drilling and develop is
            for the purpose of the planned release of an updated NI 43-101
            Technical Report in the middle of 2014.

At the La Parrilla Silver Mine:

        --  La Parrilla had excellent results during the quarter and
            continues to operate above budget.  Silver production totaled
            866,710 ounces during the quarter, representing a 22% increase
            from the previous quarter, due to improved silver grades and
            recoveries.
        --  The construction of three new leaching tanks was completed
            during the quarter allowing for longer leaching times with the
            objective of further increasing recoveries.
        --  Underground development completed in the quarter totaled 2,213
            metres compared with 3,088 metres developed in the previous
            quarter.
        --  As part of the planned reduction in exploration spending, a
            total of 177 metres were drilled in the third quarter compared
            to 4,065 in the previous quarter.

At the San Martin Silver Mine:

        --  Due to a heavy rain fall season caused by hurricanes along the
            Pacific Coast, total silver production reached 339,099 ounces
            of silver in the quarter representing a decrease of 9% compared
            to the previous quarter.  Silver grades averaged 165 g/t during
            the quarter and continue to show positive improvement as higher
            grade ore is processed from the new Rosarios area.
        --  The mill expansion from 900 tpd to 1,300 tpd was completed on
            October 11, 2013 and increased production is already underway.
            The production ramp up will increase from 900 tpd to 1,200 tpd
            in the fourth quarter with immediate commercial production. Due
            to a decision to change out the older 8.5' x 12' ball mill for
            a new larger 9.5' x 12' ball mill, full capacity to 1,300 tpd
            is now expected to be reached in the first quarter of 2014.
            This change does not impact the expected annual operating
            results and should result in a more reliable operation in
            future years.
        --  At full capacity of 1,300 tpd, San Martin's annual silver
            production is anticipated to increase by over 50% to
            approximately 1.4 to 1.6 million ounces of silver in the form
            of doré bars plus potential upside resulting from higher silver
            grades and higher gold credits over the life of the mine.
        --  Underground development completed in the third quarter totaled
            2,267 metres, compared with 2,276 metres of development in the
            previous quarter. The mine development continues to be focused
            at the new Rosarios area where seven areas are now in
            production.
        --  One underground drill rig was active within the San Martin
            property during the quarter.  Total metres drilled in the third
            quarter amounted to 376 metres, compared to 6,133 metres of
            drilling in the previous quarter.

At the La Guitarra Silver Mine:

        --  During the third quarter, the full production of silver-gold
            concentrates were sold under the previously announced new
            smelter agreement allowing the Company to discontinue
            concentrate shipments to the La Parrilla mine for further
            refining.  As a result of this new agreement, the Company has
            achieved a significant reduction in treatment charges and
            transportation costs.
        --  Mine development at the Joya Larga structure within the El
            Coloso area has now reached 112 metres along the vein.
            Development continues to advance towards the target production
            area located approximately 90 metres away from the current
            face.  Initial production from this new area is expected to
            begin in November at an approximate rate of 100 tpd.
        --  During the third quarter, production ore came from areas within
            the La Guitarra vein which contained higher gold grades in
            conjunction with lower silver grades.  Looking ahead, the
            average silver grade is expected to improve in the fourth
            quarter once production commences at the new Joya Larga
            structure.  This new area has indicated grades ranging between
            200 g/t to 350 g/t silver.
        --  A total of 1,431 metres of development were completed in the
            third quarter, compared to 1,324 metres of development in the
            previous quarter.
        --  One underground drill rig was active in the third quarter
            within the La Guitarra property. Total metres drilled in the
            quarter amounted to 1,486 metres compared to 6,552 metres
            drilled in the previous quarter.
        --  The La Guitarra exploration program continues to focus on
            defining Reserves and Resources to support an updated NI 43-101
            Technical Report scheduled to be released by the middle of
            2014.

Outlook:

With San Martin’s mill expansion to 1,300 tpd now complete and ramping
up to 1,200 tpd immediately, and with the addition of the new 1,000 tpd
cyanidation circuit at Del Toro, the Company expects silver production
in the fourth quarter to be very robust. Furthermore, with
year-to-date production totaling 9.4 million silver equivalent ounces,
the Company expects to meet or exceed its 2013 guidance of producing
12.3 million to 13.0 million silver equivalent ounces. Silver
production for the first nine months in 2013 has totaled 7.9 million
ounces and remains in line with annual guidance of 11.1 to 11.7 million
ounces of silver.

First Majestic is a mining company focused on silver production in
México and is aggressively pursuing its business plan of becoming a
senior silver producer through the development of its existing mineral
property assets and the pursuit through acquisition of additional
mineral assets which contribute to the Company achieving its aggressive
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, 2012, 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.

Video with caption: “Video: San Martin Silver Mine
“. Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20131016_C4162_VIDEO_EN_32092.mp4&posterurl=http://photos.newswire.ca/images/20131016_C4162_PHOTO_EN_32092.jpg&clientName=First%20Majestic%20Silver%20Corp%2E&caption=Video%3A%20San%20Martin%20Silver%20Mine%0D%0A&title=FIRST%20MAJESTIC%20SILVER%20CORP%2E%20%2D%20First%20Majestic%20Produces%20a%20New%20Record%20of%203%2E37%20million%20Silver%20Equivalent%20Ounces&headline=First%20Majestic%20Produces%20a%20New%20Record%20of%203%2E37%20million%20Silver%20Equivalent%20Ounces


Source: PR Newswire