First Majestic becomes a Senior Silver Producer; Produces 10.64M Ounces of Silver in 2013; Projects 12.70M to 13.35M Ounces of Silver in 2014

January 14, 2014



Frankfurt – FMV (WKN: A0LHKJ)

VANCOUVER, Jan. 14, 2014 /PRNewswire/ – First Majestic Silver Corp. (“First
Majestic” or the “Company”) is pleased to announce the Company’s fourth
quarter and full year 2013 production results.

Total production during 2013 reached a new record of 12,791,527
equivalent ounces of silver, representing a 41% increase over 2012 and
in line with previous production guidance estimates. The equivalent
silver production for 2013 consisted of 10,641,465 ounces of silver,
10,040 ounces of gold, 26,904,093 pounds of lead and 8,509,097 pounds
of zinc. With annual production now exceeding 10 million ounces of
pure silver, the Company joins the industry ranks as a “Senior Silver
Producer” on its 10th year anniversary of being in business.

Total production in the fourth quarter also reached a new quarterly
record of 3,421,161 equivalent ounces of silver consisting of 2,746,598
ounces of silver, 3,519 ounces of gold, 8,355,889 pounds of lead and
1,698,745 pounds of zinc.

Keith Neumeyer, President & CEO, states, “2013 has brought many
challenges to miners around the world. The unexpected drop in metals
prices required quick reactions to reduce investments and reduce costs.
I think our team should be congratulated for the difficult choices that
have been made. However, further efforts are still required to improve
efficiencies, adopt new technologies and innovative methods of doing
our business. In 2014, our focus will be to improve efficiencies
through automation and training programs. With all these challenges
behind us and new ones approaching, it is sometimes difficult to see
all the positive things happening around us. But again, recognition to
our dedicated team is warranted for another great year of growth in
production. With the Del Toro and San Martin operations still being
ramped up, 2014 is expected to bring another similar year of growth.
Now that we have passed one of our most significant milestones set 10
years ago, to produce over 10 million ounces of silver, we are now
setting our goal to reach 20 million ounces which we believe can be
reached with our current assets. We are living in challenging times,
but also very exciting times.”

Production Details Table:

     Quarter   Quarter
      Ended     Ended
    December  December            Consolidated     Year        Year
       31,       31,      %        Production      Ended      Ended     %
      2013      2012    Change      Results         2013       2012   Change

     701,617   701,618     0%  processed/tonnes 2,741,717  2,542,288     8%

                               Total production
    3,421,161 2,562,926   33%    - ounces of    12,791,527 9,079,996    41%

    2,746,598 2,311,146   19%    Total silver   10,641,465 8,260,434    29%
                               ounces produced

        191       176      9%    Silver grade        193        171     13%

        64%       58%      9%  Silver recovery       62%        59%      6%

       3,519     1,540   129%     Gold ounces      10,040     4,221    138%

    8,355,889 3,751,074  123%   Pounds of lead  26,904,093 13,240,889  103%

    1,698,745 1,363,330   25%   Pounds of zinc  8,509,097  4,952,899    72%

Operational Review:

Total underground development completed in 2013 amounted to 53,257
metres compared to 57,267 metres developed in 2012. The 2013
exploration program consisted of 58,578 metres of diamond drilling
compared to 135,769 metres drilled in 2012. The main priority of the
Company’s exploration programs is to further define and upgrade
Resources and Reserves to support future updates to the Company’s NI
43-101 Technical Reports. As a result of the exploration budget cuts
in 2013, and reduced programs in 2014, no grassroots or greenfield
drilling is taking place. All drilling is either focused on mining
activities or definition drilling.

With respect to the fourth quarter, total ore processed at the Company’s
five operating silver mines, La Encantada, La Parrilla, Del Toro, San
Martin and La Guitarra, amounted to 701,617 tonnes milled representing
an increase of 9% over the previous quarter.

The average silver grade in the quarter for the five mines decreased 5%
from the previous quarter to 191 g/t. Combined silver recoveries
averaged 64% in the quarter and remained in line with the third quarter
average of 65%.

The Company’s underground development in the fourth quarter consisted of
13,280 metres, a 22% increase compared to 10,923 metres completed in
the previous quarter.

During the quarter, nine drill rigs were operating at the Company’s five
operations. The Company completed 8,324 metres of drilling in the
quarter, compared to 7,823 metres in the prior quarter, representing a
6% increase.

The Company is also pleased to announce, consistent with the focus on
increasing recoveries and operational efficiencies, the appointment of
Mr. Alejandro Sandoval as General Manager of Processing Plants.
Mr. Sandoval has over 37 years of experience in the mining industry in
Mexico and will be responsible for metallurgical improvements and
testing at all operations. For the majority of his professional career
he worked at Fresnillo and Peñoles, after which he joined Goldcorp and
was responsible for the development and operation of the sulphide
processing plant at the Peñasquito mine. Prior to joining First
Majestic, Mr. Sandoval worked at Minera Frisco as General Manager of
Construction and Design.

Mine by Mine Quarterly Production Table:

                        Tonnes Silver  Silver                                            Silver
       Mine      Ore     Per   Grade  Recovery Silver Oz Gold Oz  Pounds of Pounds of       Eqv
              Processed Day(1) (g/t)     %     Produced  Produced   Lead      Zinc           Oz

       La       252,467  3,042   228     52%     959,312       53         -         -   962,505

       La       200,541  2,416   166     76%     813,090      274 5,481,400 1,601,494 1,151,728

    Del Toro    122,838  2,100   209     67%     550,026      117 2,874,489    97,251   693,561

        San      78,805    949   156     71%     280,490      544         -         -   313,834

       La        46,966    566   118     81%     143,680    2,531         -         -   299,533

      Total:    701,617  9,073   191     64%   2,746,598    3,519 8,355,889 1,698,745 3,421,161

    1)      Based on number of operating days

    2)      At Del Toro, the new cyanidation circuit operated for 38 days
            during the quarter and processed 34,370 tonnes for an average
            904 tpd; the flotation circuit operated for 74 days and
            processed 88,468 tonnes for an average 1,196 tpd.  Therefore,
            the weighted average operating days is 58 resulting in an
            average operating rate of 2,100 tpd.

At the Del Toro Silver Mine:

        --  During the year, Del Toro processed 319,861 tonnes of ore with
            an average silver grade of 213 g/t.  Average metallurgical
            recoveries for silver were 68% for a total production of
            1,484,598 silver ounces. Additionally, 8,400,642 pounds of lead
            and 1,785,219 pounds of zinc were produced during the year.
        --  As previously announced, the new cyanidation circuit was
            successfully commissioned on October 20, 2013 allowing for the
            production of silver doré bars.  On November 20, 2013, Del Toro
            celebrated its first official pouring of silver bars.
            Effective January 1, 2014, the new cyanidation circuit was
            deemed commercial having reached commercial operating levels.
        --  The flotation circuit continues to operate having processed
            88,468 tonnes during the fourth quarter with an average silver
            grade of 226 g/t and a 69% recovery of silver.
        --  Throughput in the new cyanidation circuit averaged 881 tpd in
            December with an average head grade of 164 g/t silver and
            recoveries of 60%.  As the Company continues to ramp up the
            cyanidation to 2,000 tpd, it is expected that grades and
            recoveries will come closer to rates indicated in the
            Pre-Feasibility Study (PFS) dated August 20, 2012.
        --  The construction of the new 115kV power line is now 90%
            complete and is expected to be completed by the end of the
            second quarter following a design change which now allows the
            power line to bypass several small towns.
        --  During the quarter, one underground drill rig was active at Del
            Toro.  Total exploration metres drilled in the fourth quarter
            amounted to 799 metres, compared to 2,856 metres drilled in the
            previous quarter as a result of the reduction to the
            exploration budget.  In addition, 2,612 metres of development
            were completed in the fourth quarter of 2013, compared to 1,817
            metres of development in the previous quarter.

At the La Encantada Silver Mine:

        --  During the year, La Encantada processed a total 1,139,241
            tonnes consisting from 53% of fresh mine ore and 47% from old
            tailings for a total production of 4,081,094 ounces of silver.
            Due to the implementation of an optimization program at La
            Encantada, the amount of old tailings sent through the
            cyanidation circuit was reduced resulting in a 25% reduction in
            total annual throughput.  However, the average head grade
            increased by 29% to 227 g/t of silver allowing total silver
            production to remain relatively unchanged year over year.
        --  Underground development and production continues from the San
            Francisco vein and the "990" and "990-2" chimneys. At the
            recently discovered Regalo and Brecha vein, new mining areas
            are being prepared for production. In addition, the 310 stope
            at level 1610 and the extension of the Buenos Aires area at
            1850 level began preparation during the quarter. These new
            areas are being prepared to support the planned increase in
            fresh mine ore production in 2014.
        --  Four drill rigs were active underground at La Encantada during
            the quarter with the objective of defining Reserves and
            Resources in the newly discovered areas in addition to
            assisting in mining activities.  A total of 6,611 metres of
            exploration and definition drilling was completed in the fourth
            quarter, compared to 2,928 metres of drilling in the previous
            quarter. In addition, a total of 3,210 metres of underground
            development were completed in the fourth quarter, compared to
            3,195 metres of development in the previous quarter.
        --  A substantial portion of the current drilling and development
            is for the purpose updating the Company's NI 43-101 Technical

At the La Parrilla Silver Mine:

        --  During the year, La Parrilla processed 788,335 tonnes of ore
            with an average silver grade of 162 g/t for a total production
            of 3,115,997 silver ounces. Silver production increased 8% in
            2013 mostly due to a 16% increase in mill throughput compared
            to the prior year.  Average metallurgical recoveries for silver
            were 76%, a decrease of 2% compared to 2012.  Additionally,
            18,503,451 pounds of lead and 6,723,878 pounds of zinc were
            produced during the year.
        --  Due to a decrease in silver grades at the Quebradillas open
            pit, production from higher grade underground areas, primarily
            from San Marcos, was increased during the year. In addition,
            the new Vacas mine was brought into production in the second
            half of 2013 at a rate of 313 tpd containing sulphide ore with
            silver grades ranging from 200 g/t to 240 g/t.
        --  The development and construction of the rail haulage level is
            now 1,057 metres in length.  Due to the reduction in
            development costs relating to budget cuts, the 5,000 metre
            project completion timeline has been extended until the end of
        --  Underground development completed in the quarter totaled 2,989
            metres compared with 2,213 metres developed in the previous
        --  One underground drill rig was active within the La Parrilla
            property during the quarter. A total of 249 metres were drilled
            in the fourth quarter compared to 177 metres in the previous

At the San Martin Silver Mine:

        --  During the year, San Martin processed 322,618 tonnes of ore
            with an average silver grade of 153 g/t for a total production
            of 1,250,774 silver ounces. This represents a 31% increase in
            total silver production over 2012 primarily due to a 13%
            increase in grades, a 13% increase in mill throughput and a 3%
            increase in recoveries.
        --  The expansion of the processing plant was completed in late
            December with the final installation of a new 9.5' x 12' ball
            mill which replaces the older 8.5' x 12' ball mill.  This new
            larger ball mill is expected to be more reliable and capable of
            reaching planned throughputs of 1,300 tpd.
        --  Underground development completed in the fourth quarter totaled
            2,858 metres, compared with 2,267 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
        --  One underground drill rig was active within the San Martin
            property during the quarter.  Total metres drilled in the
            fourth quarter amounted to 387 metres, compared to 376 metres
            of drilling in the previous quarter.

At the La Guitarra Silver Mine:

        --  During the year, La Guitarra processed 171,662 tonnes of ore
            with an average silver grade 152 g/t for a total production of
            709,002 silver ounces.  This represents an 82% increase in
            total silver production over 2012 (since the acquisition of
            Silvermex Resources in July 2012) primarily due to a 184%
            increase in mill throughput offset by a 34% reduction in silver
            grades and a 3% decrease in recoveries.
        --  Mine development at the Joya Larga structure within the El
            Coloso area has now reached 151 metres along the vein and has
            successfully reached the economical production area.  Initial
            ore extraction began in December at a rate of 48 tpd and
            preparation continues to further increase ore extraction to a
            rate of 160 tpd by the second half of 2014. This new area has
            indicated grades ranging between 200 g/t to 350 g/t of silver.
        --  A total of 1,611 metres of development were completed in the
            fourth quarter, compared to 1,431 metres of development in the
            previous quarter.  Production ore continued to be extracted
            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 as
            production increases at the Joya Larga structure.
        --  Two underground drill rigs were active in the fourth quarter
            within the La Guitarra property.  Total metres drilled in the
            quarter amounted to 278 metres compared to 1,486 metres drilled
            in the previous quarter.

2014 Production and Cost Outlook:

For 2014, the Company anticipates silver production will increase by 19%
to 25% and to a new annual range of 12.70 to 13.35 million ounces (or
14.85 to 15.60 million silver equivalent ounces) with the following
upcoming developments:

        --  At Del Toro, total throughput from the dual circuit processing
            plant is expected to average 2,600 tpd (2,100 tpd from
            cyanidation and 500 tpd from flotation).
        --  As a result of the recent expansion at San Martin, the
            cyanidation plant is expected to average 1,300 tpd starting in
            early 2014. This increase in mill capacity (previously 900 tpd)
            is expected to produce an additional 500,000 ounces of silver
            plus modest amounts of gold per year.
        --  At La Encantada, an upgrade and expansion of the crushing and
            grinding area to allow the underground extraction of fresh mine
            ore to be increased in the second half of 2014.  In addition,
            the reprocessing of old tailings will be eliminated from the
            mill feed due to the low metal price environment. This
            modification is expected to improve both silver recoveries and
            head grade at the mill.
        --  Due to the underground development at La Guitarra in the second
            half of 2013, the Company expects higher silver grades to be
            extracted and processed in 2014.  Historically, silver grades
            have ranged between 200 g/t to 225 g/t.

The Company continues to optimize the mines to ensure profitability in a
low price environment. These modifications are aimed to maintain First
Majestic as one of the silver industry’s purest and highest margin

A mine-by-mine breakdown of the 2014 production guidance is included in
the table below:

    |            |2013 Silver |2014E Silver |  2014E Silver   |
    |      Mine  |Ounces (Moz)|Ounces (Moz) |Equivalent Ounces|
    |            |            |             |      (Moz)      |
    |La Encantada|      4.08  | 4.15 - 4.35 |    4.15 - 4.35  |
    |La Parrilla |      3.12  | 3.10 - 3.25 |    4.30 - 4.50  |
    |   Del Toro |      1.48  | 2.75 - 2.90 |    3.30 - 3.45  |
    | San Martin |      1.25  | 1.75 - 1.85 |    1.90 - 2.00  |
    |La Guitarra |      0.71  | 0.95 - 1.00 |    1.20 - 1.30  |
    |   Totals:  |     10.64  |12.70 - 13.35|   14.85 - 15.60 |

    *Metal prices assumptions used for calculating equivalent are as
    follows: silver: $20.00/oz, gold: $1,250/oz, lead: $0.95/lb, zinc:

The Company, for the first time, is also incorporating into its 2014
forward guidance an All-In Sustaining Cost (“AISC”), which is a
non-GAAP measure to give greater visibility, comparability and
representation of the total costs associated with producing silver from
its current operations. New project capital and expansionary capital
at current operations are not included in this AISC calculation.

    All-In Sustaining Cost Calculation (1)               FY 2014
                                                        ($/Ag oz)

    Total Cash Costs per Payable Silver Oz (2)         8.67 - 9.12

    General and Administrative Costs                   1.69 - 1.77

    Share-based Payments (non-cash)                    0.77 - 0.81

    Accretion and Amortization of Reclamation Costs    0.08 - 0.09

    Development Sustaining Capital                     2.89 - 3.04

    Exploration Sustaining Capital                     0.58 - 0.61

    Property, Plant and Equipment Capital              1.19 - 1.25

    All-In Sustaining Costs:                         15.87 - 16.69

    1.   AISC is a non-GAAP measure and was calculated based on guidance
         provided by the World Gold Council ("WGC") in June 2013.
         Effective January 1, 2014, the Company is voluntarily adopting the
         reporting of AISC as a comprehensive measure for the Company's
         consolidated operating performance.  WGC is a not a regulatory
         industry organization and does not have the authority to develop
         accounting standards for disclosure requirements.  Other mining
         companies may calculate AISC differently as a result of
         differences in underlying accounting principles and policies
         applied, as well as differences in definitions of sustaining
         versus development capital expenditures.

    2.   To conform with WGC's guidance on AISC, the Company has included
         workers' participation cost in the range of $0.38 - $0.39 in the
         calculation of Total Cash Cost per Payable Silver Ounces for 2014.

As indicated in the table above, 2014 AISC costs are projected to be in
the range of $15.87 to $16.69 per payable silver ounce.

In 2014, the Company plans to spend a total of $106.0 million on
sustaining capital for current operations and expansionary capital for
numerous growth projects. The annual budget includes a total of $42.3
million to be spent towards plant, property and equipment, $55.7
million towards total development and $8.0 million in total

Furthermore, the Company is planning a limited number of capital
expansionary projects in 2014 including $8.8 million at Del Toro for
the completion of the new 115kV power line and tailings dam expansion.
In addition, $4.6 million has been allocated at La Encantada for the
upgrade and expansion of the crushing and grinding area in anticipation
of higher mine throughput in the second half of the year.

First Majestic is a mining company focused on silver production in
México and is aggressively pursuing the development of its existing
mineral property assets and the pursuit through acquisition of
additional mineral assets which contribute to the Company achieving its
corporate growth objectives.



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.

Source: PR Newswire

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