Monday, March 17, 2008
Silvermex Drills 52.5 Meters With 122 G/T Ag And 0.14% Cu On Its Peñasco Quemado Property

Phase 4 Drilling Completed at Penasco Quemado Bulk Tonnage Deposit.

March 17, 2008, (TSXV:SMR) Silvermex Resources Ltd ("Silvermex") announces results of the 3,231 meter reverse circulation drilling program completed on the open pit Penasco Quemado bulk tonnage deposit located in Sonora, Mexico.

Drilling on the Peñasco Quemado deposit continues to deliver consistently positive results as the Phase Four, in-fill and step-out drill program, delivered economic grades from every hole. The average grade of the resource to date is approximately 116 g/t Ag (3.4 ounces per tonne silver). Along with its relatively high grade, the near surface characteristics of the deposit (i.e. from surface to 100 meters) suggest an open pit surface mining operation will have a very low strip ratio. Preliminary modeling and mine plans are currently being completed to help provide the necessary data and information required to complete a preliminary assessment. The Company anticipates this study will be commissioned once the current Phase 5 (3,000 meter) drill program is completed.

The current reverse circulation drill program was designed with the principal objective of expanding the current mineral resource at Penasco Quemado Zone. From the assay results and information on structural controls obtained to date, the Company believes it has sufficient confidence to proceed with an updated mineral resource estimate and test several of the newly identified targets. Specifically the results of the January, 2008 drill program are as follows:

Penasco Zone:

A total of 1,254 meters of drilling were completed in 14 holes in the Penasco Zone. The program was designed to (i) increase the level of confidence through infill drilling in the established resource area and (ii) test the down dip and southeastern strike extent of the mineralized zone. The program was successful as it extended the strike length of the current resource to a total of 330 meters from 240 meters. The down dip extent of the mineralized zone is also open. The 3,000 meter reverse circulation drill program proposed for this spring will focus on establishing the down dip extent in this zone. The results of assays are as follows:

Penasco Quemado, Infill and Exploration Drilling Program.
Significant Mineral Intersections




Penasco Zone, Southeastern Extension (PQD-05):

A total of 540 meters of drilling in 6 holes were completed in the vicinity of hole PQD-05 completed during the 2006 drill campaign. PQD-05 previously intercepted high grade silver mineralization near cross section 0-720 SE approximately 400 meters southeast of the Penasco Zone. This principal mineralized trend appears to have been offset by post depositional faulting that has produced minor strike slip and down dip displacement. An Induced Polarization- Resistivity (IP-R) survey completed at 50 meter dipole spacings during the summer of 2007 along cross section 0-720SE identified an IP-R anomaly related to the high grade silver intersection from PQD-05. The survey was expanded to complete two additional IP-R survey lines on either side of the first. Similar IP and Resistivity responses were received suggesting the continuity of the mineralized zone.

The following assays results confirm the continuity of the silver mineralization along the NW-SE trend with a minor WNW-ESE displacement of the zone resulting from the previously described faulting. Additional drilling is proposed to follow up the extension of the previous mineralized intersections. Significant intersections in this zone include:

Penasco Quemado Southeastern Extension, Exploration Drilling
Significant Mineral Intersections



San Luis Area (Pink Breccia)

A total of 372 meters in nine shallow holes were completed to test the continuity of the silver mineralization identified during the previous 2006 drilling program. Results include:

San Luis Area (Pink Breccia), Exploration Drilling Significant Mineral Intersections



Guadalupe IP Anomaly and Penasco East:

A total of 285 meters of reverse circulation drilling were completed in two holes in these zones. The first hole, PQRC-32 was completed to test an IP anomaly identified during the 2007 survey completed on behalf of the Company by Zonge Engineering. The survey identified a strong IP anomaly interpreted as a high angle structure related to the emplacement of the silver mineralization at the southwestern edge of the Penasco mineral zone. It is believed this structure was a conduit for emplacement of the mineralization in this zone. From surface to 56 meters the hole intersected a red conglomerate unit, from 56 to 85 meters an andesitic breccias and from 85 to 119 meters a lithic tuff. Below the tuff the local water table was encountered along with a moderately oxidized, coarse grain granite with disseminated pyrite. It is believed the IP anomaly is created by the combined effect of the high angle structure, disseminated pyrite and ground water. The anomalous silver and copper values (13 g/t Ag and 455 ppm Cu across 7.5 meters) appears to be associated with the intrusive body and its contact with the lithic tuffs which probably acted as the conduit for the mineralizing fluids responsible for the Penasco Quemado (PQ) resource.

The second hole in this region, PQRC-33 was drilled along the eastern edge of the Penasco Zone to explore the continuity of the mineralization beneath the andesitic breccias. These breccias outcrop parallel to and along the footwall of the ore body. The presence of manganese oxides, barite and calcite veinlets and moderate oxidation in the breccias suggest a low sulphidation, epithermal environment. Between 93.0 to 96.0 meters this hole intersected 37.6 g/t Ag and 153 ppm Cu. Only moderately anomalous grades were returned from the other intervals.

La Fortuna Zone:

La Fortuna is located approximately 5 kilometers west of the Penasco Zone. The mineralization appears to be associated with a moderately dipping, northwest trending, 300 meter long, 10 meter wide zone of fault breccia that hosts a dense concentration of quartz veinlets and stockworks. Previous sampling programs returned significant silver, lead and zinc grades. To help define the orientation of the fault breccia at depth two IP-R lines 100 meters apart were completed across the structure. The results confirm the 60° or 55° dip of the structure to a depth of 100 meters. Below this level the structure becomes very low angle structure with strong chargeability anomalies coincident with both the hangingwall and footwall. A total of 576 meters in 4 holes were completed in this zone to test the mineralized structure at depth. The following significant intervals were intersected:

La Fortuna Area, Exploration Drilling Significant Mineral Intersections



The final hole in the current program, PQRC-53, was completed to test a geochemical anomaly identified 1200 meters southeast of the Penasco Zone in an area known as Loma Negra. The 204 meter hole encountered a sequence of rhyolites-rhyodacites with significant arsenic, manganese, copper, barium, antimony, silver and lead grades. This mineral assemblage suggests the existence of a low sulphidation, epithermal environment. The Company is yet to receive assay results from this hole.

Quality Control

All samples have been submitted to IPL in Richmond, B.C. for four acid digestion followed by ICP analysis. Duplicates, standards and blanks have been randomly inserted to the sampling stream at a ratio of 1 check assay for every 25 samples. Check assays are being completed at ALS Chemex in North Vancouver, B.C.

Qualified Person

Pursuant to National Instrument 43-101, Darcy Krohman, P.Geo., C.A,. Executive Vice- President and CFO of Silvermex Resources Ltd. is the Qualified Person (QP) responsible for the disclosure in this news release. Field work has been conducted by Silvermex Resources Ltd. employees and contractors.

For Further information, contact:

Arturo Bonillas, B.Sc.(Eng)
President
Hermosillo, Sonora, Mexico
Tel: 011-52-662-262-1132
arturo@silvermexresources.com

Darcy Krohman, P.Geo., C.A.
Executive Vice-President & CFO
Vancouver, BC, Canada
Tel: 604-682-4004
darcy@silvermexresources.com

For Investor Relations, contact:

Jason Leikam
Corporate Development
Vancouver, BC, Canada
Tel: 604-638-8979
jason@silvermexresources.com

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release.

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