2007

Update on the Chalchihuites Group of Properties

December 3, 2007

First Majestic Silver Corp. (the “Company” or “First Majestic”) is pleased to announce preliminary results from its ongoing surface and underground exploration and diamond drilling program at the Chalchihuites Group of Properties located in the State of Zacatecas, México.

The Chalchihuites Group of Properties is strategically located 60 km to the southeast from the Company’s flagship La Parrilla Silver Mine and consists of 293 hectares of contiguous mining claims which cover the Perseverancia Silver Mine and the San Juan Silver Mine. In 2004, the Company signed several option agreements which covered a total of 487 hectares of land located in the Chalchihuites mining district in the Western portion of Zacatecas State in the municipality of Chalchihuites, and 150 km to the northwest from Zacatecas City. After the completion of a geological program that included surface geology, geochemical and geophysical surveying, diamond drilling, underground rehabilitation, development and channel sampling, First Majestic exercised its options in January 2007 to acquire the San Juan Silver Mine and in June 2007 to acquire the Perseverancia Silver Mine. The Company now owns 100% of both of these promising mines which are approximately one kilometre apart. In addition, the Company recently acquired 100 hectares of surface rights from a local land owner.

The Chalchihuites mining district comprises a regional metasomatic system of mineralization that includes: replacement mantos, breccia pipes, chimneys, vein type structures, dissemination and skarn deposits which occur in association with igneous dikes and stocks intruding a sequence of cretaceous sedimentary rocks. The Chalchihuites area hosts mineral deposits with high silver mineralization such as the nearby La Colorada mine owned by Pan American Silver Corp. and other regional mines, such as, the San Martín and Sabinas mines owned and operated by Grupo México and Peñoles.

San Juan Silver Mine

The San Juan Silver Mine is one of the oldest mines in the district and was partially mined to a depth of 150 meters over nine levels and consists of eight mining claims totalling 204 hectares. The mine has not been in operation since the 1950’s. The previous owner constructed a 90-metre shaft which has been used to access the old workings. First Majestic’s exploration program consisted of mapping, sampling, rehabilitation and development of old workings. A diamond drilling program from surface totalled six holes. Based on drilling results, 670 meters of ramps have been developed to date. This includes 250 meters of access ramps into the foot wall of the ore body and 420 meters at different levels to access the mine and build underground drill stations. Another 250 meters of ramps are in process to prepare drilling sites from the underground workings.

Aside from the access ramps, four crosscuts that total 307 meters were developed into the ore body in order to delineate the projected mineralization. The mineralized structure was then sampled by continuous channels and bulk sampling from development ore. The crosscuts were developed at an elevation of about 70 meters from the outcroppings and based on assay results received to date the ore body may lend to a high volume operation in the future..

The San Juan deposit has been partially exposed within a length of 105 meters by a width of 20 meters. The mineralized structure remains open at depth and along strike. It is important to note from the current program, that high grade silver, common to this historic mine, is proving to continue at depth and is associated to high grade lead and zinc sulphides mineralization.

Assay results of samples from some of the drill holes have reported the following results;


Continuous channel sampling from the crosscuts 70 metres below surface showed the following results;


Additional assay results from seven underground drill holes totalling 1,556 metres are pending from Inspectorate America Lab in Sparks, Nevada. These drill holes were directed to test continuity of mineralization at approximately 100 metres below the present crosscuts. Logging of the core indicates that the drill intercepts appear to confirm the ore bodies extension to at least 170 meters below the present mine workings. First Majestic will release these results as soon as they are reported by the lab.

Keith Neumeyer, President and CEO states; “our drilling and development program into this ore body continues to confirm the existence of considerable mineralization beyond what was previously known. The mineralization that’s been exposed and drilled to depth is a new and very exciting development at the San Juan Silver Mine”.

La Perseverancia Silver Mine

The La Perseverancia Silver Mine consists of six mining claims totalling 89 hectares and has been historically the most important mine in the Chalchihuites area due to its production and high grades. The mine workings have proven the occurrence of two adjacent high-grade silver mineralized chimneys. Limited mining records of this mine exist; however, smelter receipts have confirmed monthly shipments by the previous owner of approximately 150 to 300 tonnes of ore with grades of 1.5 to 3 kg/tonne Silver (1500-3000 g/tonne-Ag) and 20% to 40% Lead, during the period of 1975 to 1994.

The two chimneys are hosted by skarn at the contact with the intrusive igneous rock. The chimneys are elongated bodies controlled by pre-mineral fractures striking N60°- 85°E, with near vertical dipping. The sizes of both chimneys are 15 - 30 meters long by 6 - 10 meters wide and are known for 195 meters to depth. The mineralization occurs within a breccia filled by a mixture of oxidized minerals including cerussite, limonites, galena, sphalerite and argentite in a gangue of quartz and calcite with sulphides mineralization increasing at depth. The breccia is mostly composed of igneous rocks fragments.

A geophysical survey conducted in 2005 appears to have outlined the existence of an extension to depth of the main chimney structure. An ongoing drill program from both surface and underground was launched in mid 2006 to determine mineralization, size and depth of these structures and to investigate if other similar breccias may exist.

Due to topography, only drill hole PRV-03 was attempted to reach the projections at depth of the chimneys from surface. Its results appear to indicate intersection of a vein or manto off-shorting from the main chimney. Results of this intercept are indicated in the following table.


Due to topographic constrains it was determined that drilling from underground would allow for better angle to intersect the chimneys and investigate deeper projected areas of mineralization below the lowest known Level 31 (195 metres from surface). A 50 metre adit was constructed in Level 27 where three holes were drilled towards the chimneys. Also, a 100 metre adit was constructed from surface into the side of an adjacent hill where one long hole was drilled. The results below show that at least one of the two known chimneys extends to depth.


First Majestic is presently developing a 200 meter underground adit in Level 21 to more effectively achieve a convenient angle to intersect the chimney at further depths.

Keith Neumeyer, President and CEO states; “these two known mineralized chimneys at Perseverancia appear to be related within a structural trend. Now that we have proven the existence of these chimneys to depth, not only will we try to define their size, but also we’ll look for additional similar structures along trend”.

In addition to the ongoing exploration program at Perseverancia, during the rehabilitation and development of the old mine workings, the last three months First Majestic has extracted 460 tonnes of ore at an average grade of 962 Ag g/t and 24.52% Pb. Some of this ore was shipped to La Parrilla mill and some was directly shipped to Peñoles smelter in Torreón, México. These shipments are expected to continue and increase as the mine undergoes further development.
All sampling and sample assays, for both the Perseverancia Silver Mine and San Juan Silver Mine, have followed strict QA/QC protocols. All samples are shipped to Inspectorate laboratory in Durango, México for sample preparation. Inspectorate México then sends the pulps by air-freight to Inspectorate America Corporation in Sparks, Nevada for assaying. Systematic assaying of standards and blanks are inserted for assay checks. All assays are regularly conducted by inspectorate America Corporation and they include Inspectorate’s own QC protocols.
Leonel López, Principal Geologist of the consulting firm Pincock, Allen and Holt, Denver, Colorado is the Qualified Person under NI 43-101 for the Perseverancia and San Juan Silver Mines and has reviewed and approved the statements in this Press Release.

First Majestic is a producing silver company focused in México and is aggressively pursuing its business plan to become a senior silver producer through development of its existing assets and the pursuit through acquisition of additional assets that make sense to achieving its corporate objective.


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 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.

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.