Silver Price: $23.62
NYSE: AG $5.93
TSX: FR $7.94
Frankfurt: FMV €5.58

Highlights from 1st Quarter Financial Statements

May 31, 2007

FIRST MAJESTIC SILVER CORP. (FR-V) (the “Company”) is pleased to announce the financial results of the Company’s first quarter ending March 31st, 2007. The full version of the financial statements can be viewed on the Company’s web site at or on SEDAR at The following are highlights only from the first quarter financial results of the Company and shareholders or interested parties are encouraged to review the complete statements for further details.

Overall Operating Performance and Highlights
• As of the date of this report, silver producing operations of the Company are carried out through three operating segments being the La Parrilla Silver Mine, the La Encantada Silver Mine, and the San Martin Silver Mine. This period marked the first full quarter of operations in which all three mines operated under the First Majestic umbrella.
• Sales revenue for the quarter ended March 31, 2007, increased significantly to $10,158,621 representing a 24.8% increase from the prior quarter’s revenues of $8,138,284, and a 1,415% increase from the same quarter revenues ended March 31, 2006 of $671,435.
• Mine earnings (cash basis) for the quarter ended March 31, 2007 increased to $3,375,730 representing a 1,165% increase from the prior quarter’s mine earnings of $266,767, and an increase of 4,432% from mine earnings of $74,486 for the quarter ended March 31, 2006.
• The average realized silver price was $15.00 (US$12.80) per ounce of silver for the three months ended March 31, 2007, compared to $13.70 (US$12.03) per ounce for the quarter ended December 31, 2006 and $10.06 (US$8.72) per ounce for the quarter ended March 31, 2006.
• For the quarter ended March 31, 2007, the Company’s three operating mines produced a combined 753,442 ounces of silver equivalent at a cash cost of $10.02 (US$8.55) per ounce of silver which consisted of 719,993 ounces of silver, 519 ounces of gold and 327,818 pounds of lead. Production for the quarter increased by more than 31% compared to the prior quarter’s production of 574,704 ounces of silver equivalent, and was an increase of 1,290% over the 59,329 ounces of silver equivalent produced in the quarter ended March 31, 2006. Of the silver produced in the period, a total of 677,241 equivalent ounces was sold at an average sales price of $15.00 in the quarter (US$12.80), and an average cost to produce of $10.02 (US$8.55); the balance remained in inventory at the end of the quarter.
• Average cost of production per ounce of silver has been reduced by 27% from $13.70 (US$12.03) for the six month transitional period ended December 31, 2006, to $10.02 (US$8.55) for the three months ended March 31, 2007. The Company does not reduce its costs of production by other metal credits for silver equivalents, and has chosen to recognize the credits in revenues of the period in which the silver equivalents are sold.
• On March 20, 2007, the Company completed the acquisition of Minera La Encantada S.A. de C.V. (“La Encantada”), a Mexican mining company whose primary asset is the La Encantada Silver Mine located at the Coahuila State in Mexico.
• Subsequent to the period end, the Company completed a private placement of special warrants for gross proceeds of $34,415,000. A total of 6,883,000 special warrants were sold at a price of $5.00 per special warrant through Cormark Securities Inc. (formerly Sprott Securities Inc.) and CIBC World Markets Inc. (as co-lead underwriters) and Blackmont Capital Inc.
• The loss before income taxes increased by $1,143,665 to $2,139,663 for the three months ended March 31, 2007, compared to $995,998 for the three months ended March 31, 2006, due to the higher amortization, depreciation and depletion, and additional operating costs resulting from the extreme growth experienced between this period and the same period in the prior year.

• The net loss after taxes increased to $3,061,899 ($0.06 per share) from $995,998 ($0.03 per share) due primarily to the additional amortization, depreciation and depletion, and additional operating expenses being experienced as a result in the large scale growth in the Company from $25.5 million in total assets to $189.7 million in total assets. The growth experienced is as a result of acquiring First Silver, La Encantada and Desmin, as well as the large investments in expansion capital at the La Parrilla mine and mill. By way of comparison, the Company presently has three producing mines with a total operating capacity of 2,600 tonnes per day, whereas on March 31, 2006, only one mine was operating, the La Parrilla Silver Mine which had a capacity of 180 tonnes per day.

Management is very encouraged by these positive results from operations. Mr. Neumeyer, President, stated; this is our first quarter where we have had all mines operating to the credit of our own accounts and even though there is still much room for improvement, we are pleased with the direction in which the Company is moving. A lot of work is going into increasing production levels and lowering costs which we anticipate will become more evident over the coming quarters.

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, visit our website at or call our toll free number 1.866.529.2807.



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 Resource 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

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.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and the TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.