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Re: News Releases - Thursday, January 17, 2008
Another Record Quarter of Silver Production
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First Majestic Silver Corp. ("First Majestic" or the "Company") is
pleased to announce that production in the fourth quarter ending
December 31, 2007 increased again to a record 1,008,299 equivalent
ounces of silver representing a 7% increase over the prior quarter
production and an increase of 76% over the same quarter in the prior
year.
The equivalent silver production for the quarter consisted of 868,354
ounces of silver, an increase of 7% over the previous quarter and
1,107,154 pounds of lead which represents a 17% increase over the
previous quarter. The large increase in lead production was as a result
of improvements to the flotation circuit at the La Parrilla Silver
Mine. Production of gold in the quarter amounted to 490 ounces
representing a 12% increase compared to the prior quarter.
During the quarter the combined recoveries of silver at the three
different mills also showed an increase from 71% to 77%. The overall
average silver head grade in the quarter also improved for the three
mines increasing by 12% over the previous quarter to an overall 240 g/t
of silver.
The ore processed during the quarter at the Company's three operating
silver mines; the La Parrilla Silver Mine, the San Martin Silver Mine
and the La Encantada Silver Mine, amounted to 146,798 tonnes
representing an 11% decrease and an increase of 56% over the same
quarter of 2006.
An aggressive development program continues at all three mines. This
activity is ongoing for the purpose of opening up additional stopes,
grade control, resource development and exploration. A total of 5,346
metres of underground development was completed in the quarter which
for the year, 2007, totalled 20,279 meters. This compares to 7,719
meters developed in the previous calendar year representing an increase
of 163%. This program is important in giving access to new areas within
the different mines for preparation of mining in order to continue the
growth of silver production in 2008.
Reserve and Resource development remains to be a high priority for the
Company. Presently ten drill rigs are operating on a permanent basis;
six rigs at La Parrilla and the Chalchihuites areas, three rigs at San
Martin and one rig at La Encantada. Two additional rigs are being added
at the San Martin and two additional rigs are arriving shortly at the
La Encantada, bringing the total to fourteen rigs operating on the
Company's properties by the end of the first quarter. Also, in line
with the Company's aggressive resource development strategy, 9,778
metres of diamond drilling was completed during the quarter, covering
43 holes. During the year ended December 31, 2007, a total of 37,176
meters of diamond drilling was completed which compares to 28,283
meters drilled in 2006 representing an increase of 31%.
Total production during 2007 reached 3,561,171 ounces of silver
equivalent representing an increase of 176% compared to the previous
year's 1,289,234 ounces silver equivalent. Even though management is
pleased with the substantial increase in silver production compared to
2006, production for the year was lower than originally estimated. The
higher tonnages feed through the mills at the La Parrilla and La
Encantada resulted in a number

of failures of old equipment which thus required replacement or
rehabilitation. Also, at the San Martin, maintaining optimal head grade
was the primary challenge which required management to decide to reduce
tonnage rates to give the present development program time to prepare
areas within the mine.

Keith Neumeyer, President & CEO, stated, "The year 2007 marked a year
of consolidation of our three producing operations under the First
Majestic umbrella. As can be expected, many challenges were experienced
managing the dramatic growth of our business. This substantial
achievement resulted in increases in silver production of 176% year
over year, and increases in defined NI 43-101 compliant silver
resources of 133%. As a result of the work completed in 2007 and the
significant additions to our management team and the many improvements
made at each of our three silver mines, we are targeting to reach
5,500,000 ounces of silver production for 2008 and continued increases
of defined silver resources can also be expected."
In summary, some of the production improvements and advances made
during the year include;
At the La Parrilla Silver Mine:
.. The completion of the new 800 tpd cyanidation/flotation mill in May
'07
.. A new Primary & Secondary crushing system was acquired in April '07
.. CCD thickener added, filtration area upgrades and oxygen injection
system was installed (July through November '07)
.. Construction of the new tailings dam was completed in November under
budget and on time giving the La Parrilla an additional 10 years of
mine life
At the La Encantada Silver Mine:
.. A new 1500 KW power plant was acquired and installed and a complete
upgrade of the 2000KW power plant was completed (June through October
'07)
.. A new screening plant was added in Feb '07 to take advantage of the
above ground stock piles of ore
At the San Martin Silver Mine:
.. Construction began in November '07 of a 500 tpd flotation circuit to
take advantage of the large sulphide ore resource present at the San
Martin
.. A new discovery is being defined at the Rosarios-Condesa (Cinco
Senores) vein system which is parallel to the main Zuloaga vein, where
intersections of high grade silver ore are occurring
In 2008, improvements are expected to include; the completion of the
flotation circuit at the San Martin; the replacement of the secondary
crusher at the La Encantada; new filter presses at the La Parrilla,
and; the expansion of the primary and secondary crushing system at the
La Parrilla. In addition, an evaluation is presently underway to expand
the La Encantada mill by adding a cyanidation circuit. A final decision
on size and timing of this expansion is expected to be announced prior
to the end of the first quarter.
In addition to the above, and in line with Company's program of
underground equipment replacement launched with Sandvik in 2006, a
total of 12 pieces of underground equipment was delivered in 2007 which
added to the 6 pieces of equipment delivered in 2006. In 2008, the
third year of this program, 20 additional pieces of underground
equipment are expected to be delivered. These deliveries will include
scooptrams, underground trucks and jumbos intended to provide for
improved and more efficient underground operations.
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 significant 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.

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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 Thu Jan 17, 2008 at 9:02:37 AM Pacific Time
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