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Re: News Releases - Monday, January 07, 2008
La Encantada Silver Mine Update and New NI 43-101 Resource
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First Majestic Silver Corp. (FR-V) ("First Majestic" or the "Company")
is pleased to announce an update regarding its activities in Mexico at
the La Encantada Silver Mine and a new NI 43-101 Resource/Reserve
update.

La Encantada Silver Mine is located in northern M�xico, in the northern
part of the physiographic province of the Sierra Madre Oriental in the
NW portion of the State of Coahuila. It is located in the municipality
of Ocampo, at about 120km to the N60�W from the city of M�zquiz, and
120km to the N7�W from the city of Ocampo, Coahuila.

First Majestic owns mining rights that cover 2,826 hectares (6,982
acres) within 18 titled concessions and 2 claim applications. Also,
surface land ownership of 1,343 hectares (3,319 acres) where mine,
plant, housing, camp and associated facilities are installed was
acquired from the Ejido Tenochtitl�n, Municipality of Ocampo. The La
Encantada mine consists of all supporting facilities, including; a
flotation plant with an installed capacity of 800 tonnes per day
("tpd"), laboratory, maintenance buildings, water wells and pipeline,
airstrip, 180 houses, mine office, warehouses, club house, kitchen and
restaurant facilities and guest houses. The mill is presently running
at 700 tpd or approximately 87% capacity. Feed for the mill was split
almost evenly between ore coming from the mine and ore coming from the
reprocessing of waste dumps through a pre-screening process implemented
in early 2007. This mixing of ore from both sources has allowed time
for the development within the mine to prepare for feeding the mill at
a higher percentage rate of ore in 2008.

The aggressive development and exploration program implemented shortly
after the La Encantada mine was purchased in late 2006 resulted in the
release of a NI 43-101 Resource estimate in June 2007. This aggressive
program has continued with exploration efforts carried out during the
second half of 2007 being primarily focused in proving and developing
additional Reserves and Resources within the mine. This ongoing
program has resulted in a significant increment of both Resources and
Reserves. Major efforts were undertaken in the areas of Breccia
Milagros, Bonanza, San Francisco, Intrusivo Milagros, Azul y Oro, and
Cuerpo de Zinc at mine level N-1535 and in the sampling of old dumps.
Additional efforts were also carried out in drilling and metallurgical
test work of the old tailings dams that have resulted in a positive
outcome for reprocessing by Cyanide Leaching this material to
recuperate the contained silver.

During the period of June to October, 2007 a total of about 5,000
meters of underground workings for exploration purposes were developed
at the La Encantada mine, including about 4,000 meters of access ramps,
drifts, and crosscuts, and about 1,000 meters of exploration
preparation for underground drill sites access for the 2008 program. As
can be seen by the tables below, significant increases in all
categories have been achieved over the previously reported Reserves and
Resources. Proven and Probable Reserves have increased by 48% from
8,206,336 ounces Silver to 12,110,507 ounces Silver; the Measured and
Indicated Resources increased by 212% from 12,548,168 ounces Silver to
39,099,835 ounces Silver, and; Inferred Resources have increased by 30%
from 9,587,585 ounces Silver to 12,479,000 ounces Silver. The most
significant increases in Reserves and Resources are within the Breccia
Milagros, Bonanza, San Francisco areas of the mine and in the two old
tailings dams.

The following summary tables were taken from the complete La Encantada
Silver Mine NI 43-101 Technical Report prepared by Pincock Allen &
Holt, Lakewood, Colorado (PAH). Shareholders and interested parties
are encouraged to read this positive report which can be viewed on
SEDAR (www.sedar.com) and the Company's web site at
www.firstmajestic.com.



Total Proven + Probable Mineral Reserves (Mineable Reserves)(1,3,8)
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----
Grade Metal
Contained(2)
-----------------------
-----------------------

Silver

(oz.)
Silver
including
Silver Lead Zinc(4) only
Lead
Category(3) Tonnes g/tonne % % oz.
Credit
----------------------------------------------------------------------
----
Proven Reserves 850,684 283 1.80 0.84 7,731,371
8,068,833
Probable Reserves 358,449 380 1.70 0.75 4,379,136
4,552,002
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Total Proven +
Probable
Reserves 1,209,133 312 1.77 0.81 12,110,507
12,620,835
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----


Total Measured + Indicated Resources(1,3,8)
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----
Grade Metal
Contained(2)
-----------------------
-----------------------

Silver

(oz.)
Silver
including
Silver Lead Zinc(4) only
Lead
Category(3) Tonnes g/tonne % % oz.
Credit
----------------------------------------------------------------------
----
Measured
Resources 879,895 347 1.99 0.33 9,823,264
10,247,603
Indicated
Resources(5,6) 6,157,081 148 1.70 2.30 29,276,571
29,875,056
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Total Measured
+ Indicated
Resources(5,6) 7,036,976 173 1.73 2.05 39,099,835
40,122,659
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----


Total Inferred Resources(3,7,8)
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----
Grade Metal
Contained(2)
-----------------------
-----------------------

Silver

(oz.)
Silver
including
Silver Lead Zinc(4) only
Lead
Category(3) Tonnes g/tonne % % oz.
Credit
----------------------------------------------------------------------
----
Total Inferred
Resources(7) 1,967,000 200 0.50 0.50 12,479,000
13,428,000
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----



(1) Cut Off Grade (COG) estimated as 256 g/tonne Ag only; and 241
g/tonne
Ag eq net of Pb credit. Cut Off Grade for dumps is 98 g/tonne Ag
only;
and 91 g/tonne Ag eq net of Pb credit (COG is based on actual
sales).
(2) Silver equivalent includes Pb credit, at prices US$10.50/oz-Ag,
US$0.68/lb-Pb. Pb credit equals 15 g/tonne-Ag. For dumps Pb credit
equals 7 g/tonne Ag.
(3) Mining dilution is included at over 2.00m width. Estimates do not
include mining recovery.
(4) Zinc is not recovered.
(5) Tailings are considered as indicated resources. Bulk sampling
testwork
in progress.
(6) La Morena sulfide deposit requires additional metallurgical
testwork to
prove its economic recovery. La Encantada mill does not have an
operating zinc circuit at this time.
(7) Rounded figures
(8) Total Proven & Probable Reserves, Total Measured & Indicated
Resources
and Total Inferred Resources are reported exclusive of each other
and
thus are not combined.

First Majestic is continuing its aggressive program of exploration and
development throughout 2008 which is believed to have a high
probability of success given the geological conditions of the
mineralization at the mine. In PAH's opinion the combination of direct
exploration methods, drilling and underground development represents a
good balance for exploration at La Encantada. The program is directed
to access projected known areas of mineralization as well as to
investigate other adjacent and new promising areas that may result in
an increment of the Resource base and a higher level of Reserves for
the mine.

The exploration and development program for the La Encantada Silver
Mine for calendar year 2008 is planned to consist of a minimum of 8,200
meters of surface Diamond drilling, 5,000 meters of Diamond drilling
from underground sites, and 2,340 meters of underground drifting. In
addition to drilling and underground exploration and development, an
extensive geophysical survey consisting of 50 line km's of Induced
Polarization will be conducted to investigate the various identified
anomalous areas, and to confirm other indicated potential zones. Some
of the most outstanding targets for investigation are the La Escalera
Breccia zone and the Anomalous areas "A", "B", "C" and "D". The La
Escalera breccia zone appears to be a significant target for
exploration and will also be a target in the upcoming drill program.
Due to the current successes and number of targets at La Encantada, it
is likely the 2008 exploration and development budget will be expanded
further.

The Company's independent Qualified Persons under the policies of
National Instrument 43-101 who have reviewed the contents of this news
release and who authored the most recent qualifying report are Leonel
L�pez, C.P.G., P.G., and Richard Addison P.E., Principal Process
Engineer, of Pincock Allen & Holt, who are employees of PAH and are
independent of the Company.

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 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 Silver 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 does not accept responsibility for the
adequacy or accuracy of this release.

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Copyright (c) 2008 FIRST MAJESTIC SILVER CORP. (TSXV-FR) All rights
reserved. For more information visit our website at
http://www.firstmajestic.com/ or send mailto:general@firstmajestic.com
Message sent on Tue Jan 8, 2008 at 6:42:16 AM Pacific Time
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