First Majestic Produces 2.1 Million Silver Equivalent Ounces in Second Quarter

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/17/12 -- First Majestic Silver Corp. ("First Majestic" or the "Company") (TSX: FR)(NYSE: AG)(FRANKFURT: FMV) (WKN: A0LHKJ)is pleased to announce that total production at its three mines in Mexico for the second quarter ending June 30, 2012 reached 2,102,222 equivalent ounces of silver, representing a 14% increase compared to the same quarter in 2011.

The total silver production for the quarter consisted of 1,917,248 ounces of silver, representing an 8% increase compared to the same quarter in 2011. In addition, 3,005,209 pounds of lead and 1,423,890 pounds of zinc was produced representing an increase of 116% and 5,355% respectively, compared to the same quarter in the previous year. Also, 533 ounces of gold was produced, representing an increase of 58% compared to the second quarter of 2011. No production from Silvermex Resources Inc. ("Silvermex") was included in First Majestic's second quarter operations as the acquisition closed on July 3, 2012, after the quarter was closed.

Following the recent closing of the Silvermex acquisition, the Company's 2012 production guidance has been adjusted for the additional production from the La Guitarra Silver Mine as well as other operational improvements at the existing operations. The Company now expects to produce between 8.3 to 9.1 million pure silver ounces, up from the previous 2012 guidance of 8.2 to 8.7 million silver ounces. Total silver equivalent production is now expected to be between 9.1 to 9.7 million ounces, up from the previous guidance of 8.8 to 9.3 million equivalent ounces.

Production Details Table:

----------------------------------------------------------------------------
                                       Quarter        Quarter
                                         Ended          Ended
                                      June 30,       June 30,
Consolidated (all mines)                  2012           2011     % Variance
----------------------------------------------------------------------------
Ore processed / tonnes milled          615,799        482,077            28%
----------------------------------------------------------------------------
Total production - ounces of
 silver equivalent                   2,102,222      1,843,830            14%
----------------------------------------------------------------------------
Silver ounces produced (pure
 silver)                             1,917,248      1,780,379             8%
----------------------------------------------------------------------------
Combined Silver Grades (g/t)               164            198          (17)%
----------------------------------------------------------------------------
Combined Silver Recoveries (%)             59%            58%             1%
----------------------------------------------------------------------------
Pounds of lead produced              3,005,209      1,392,132           116%
----------------------------------------------------------------------------
Equivalent ounces from lead             91,669         42,305           117%
----------------------------------------------------------------------------
Pounds of zinc produced              1,423,890         26,103          5355%
----------------------------------------------------------------------------
Equivalent ounces from zinc             42,459            680          6144%
----------------------------------------------------------------------------
Gold ounces produced                       533            337            58%
----------------------------------------------------------------------------
Equivalent ounces from gold             35,070         15,825           122%
----------------------------------------------------------------------------
Equivalent ounces from iron             15,776          4,642           240%
----------------------------------------------------------------------------

Other Developments:

The severe drought conditions throughout much of Mexico and parts of the southern United States have left many communities, farming areas, cattle ranches and mining operations without normal water supplies. Second quarter production results at San Martin were lower, by approximately 80,000 ounces, due to the local Bolanos River, which supplies water to the region becoming completely dry. First Majestic acted quickly to assist the town of San Martin de Bolanos by building a 10 kilometre pipeline from a water source near the mine. The excess water was used for the milling operations which is now back to normal conditions. In addition, the seasonal rains have begun in the region resulting in the Bolanos River now being full of water relieving the need for the pipeline which can now be used as a back-up system for the future.

Over two years ago, First Majestic anticipated the importance of water conservation in Mexico. The Company's first mitigation effort was the installation of the tailings filtration system at the La Encantada operation which resulted in over 80% of the water being re-used in the milling operations. Due to the successful retention of water from the application of these filters, this same application was added to the recent expansion at the La Parrilla Silver Mine. These new filters are now fully operational, and are now saving over 80% of the water previously used at La Parrilla. In addition, the Del Toro Silver Mine, which has been under construction now for 15 months, will also be using the same tailings filtration system, and the San Martin mill is planning to install the same technology in 2013.

First Majestic has taken other important steps to protect the water supplies of our communities and for our operations by not only installing filtration systems to recirculate water, but also constructing sewage treatment facilities. The first example of this program was the construction of the sewage water treatment facility in the town of Chalchihuites. Previously, this sewage water was dispersed into the nearby streams negatively impacting the regional environment. Not only will this new sewage water treatment facility prevent regional environmental problems, this facility will also deliver gray water back to the milling operation at Del Toro.

In addition, First Majestic has signed an agreement with the town of San Martin de Bolanos in order to complete the construction of a sewage treatment facility which was abandoned several years ago. This facility is expected to be operational within six months, saving water and preserving the environment.

Due to the benefits for the communities and the Company resulting from First Majestic's conservation methods, the Company has adopted a policy of installing tailings filtration systems and sewage water treatment facilities at each of its mining operations.

The total ore processed during the quarter at the Company's three operating silver mines, the La Encantada Silver Mine, the La Parrilla Silver Mine and the San Martin Silver Mine, amounted to 615,799 tonnes milled representing an increase of 10% over the previous quarter. The average head grade in the quarter for the three mines decreased by 7% over the previous quarter to 164 g/t of silver. The combined silver recoveries increased from 57% in the first quarter to 59% in the second quarter of 2012.

The Company's underground development in the second quarter consisted of 13,627 metres, reaching a total of 27,870 metres in the first half of 2012. There were 35,965 metres of diamond drilling completed in the quarter compared with 29,194 metres of diamond drilling in the first quarter 2012 representing a 23% increase, reaching a total of 65,159 metres in the year. The expanded exploration program consists of definition drilling to define Reserves and Resources at the Company's three operating mines, to assist in mining activities and at the Del Toro Silver Mine which is being prepared for production in the fourth quarter of 2012. The Company currently has 19 diamond drill rigs operating.

At the La Encantada Silver Mine:

--  On April 19th, 2012, a third ball mill was successfully installed and
    became fully operational on May 1st, bringing the fresh mine ore milling
    capacity to 1,800 tpd, an increase of approximately 80% when compared to
    the first quarter of 2012. The increase in processing ore from the mine
    relative to ore from tailings assisted in improving overall grades and
    recoveries at the processing plant. Silver recoveries in the month of
    June reached 55% for several days at the mill and it is anticipated that
    these increased levels will continue for the remainder of the year,
    based on the increased mix of fresh ore versus the old tailings.
--  As previously disclosed, underground development is currently focused on
    areas within the mine that contain lower levels of manganese to assist
    in higher recovery rates. The primary areas of focus have been the San
    Francisco vein and the Milagros Breccia pipe. Once fully developed in
    the third quarter, these areas will come into production and is
    anticipated to result in an overall higher grade and higher recovery for
    the operation.
--  Due to the extensive underground exploration program underway, a new
    breccia pipe was discovered in the second quarter. This new discovery is
    currently being tested and initial preliminary results are proving
    positive for additional silver reserves. Three diamond drill rigs are
    currently active at La Encantada, two on surface and one underground. A
    new NI 43-101 Technical Report is expected to released prior to the end
    of the first quarter of 2013.
--  A total of 5,451 metres have been drilled in the second quarter compared
    to 6,038 metres of drilling in the first quarter of 2012. A total of
    3,535 metres of underground development was completed in the second
    quarter compared to 3,921 metres of development in the first quarter of
    2012, a decrease of 10% over the prior quarter. During the first six
    months of 2012, a total of 11,489 metres of diamond drilling has been
    completed and a total 7,456 metres of underground development has been
    completed.

At the La Parrilla Silver Mine:

--  The new dual-circuit 2,000 tpd mill (1,000 tpd flotation and 1,000 tpd
    cyanidation), which replaced the old 850 tpd mill, is now fully
    operational and averaged 2,040 tpd in the second quarter. At the newly
    designed run rate of 2,000 tpd, it is anticipated that La Parrilla will
    produce in the range of 3.0 to 3.2 million ounces of silver equivalent
    annually.
--  The new tailings filters were installed and became fully operational at
    the end of the second quarter. These tailing filters reduce the need for
    new water supply by re-circulating over 80% of the water back through
    the milling process. The end result produces a dry tailings paste which
    requires a smaller land footprint compared to slurry, or wet tailing
    ponds. In addition, the risk of groundwater contamination is virtually
    eliminated. La Parrilla is now the second operation under control by
    First Majestic that utilizes this new environmentally friendly
    technology.
--  An aggressive exploration program with diamond drilling, both
    underground and on surface, has indicated the continuation of the
    Rosarios vein system both at depth and along strike which is connecting
    the San Marcos vein with the Rosarios vein system.
--  Five diamond drill rigs are currently operating, four on surface and one
    underground. The total metres drilled during the second quarter amounted
    to 6,816 metres compared to 5,569 metres drilled in the previous
    quarter. Development completed in the quarter totaled 5,247 metres
    compared with 5,039 metres developed in the previous quarter.
--  As part of the expansion program, an intensive underground development
    program and a new ramp system is under construction including a new
    production shaft. Once completed, an underground rail system connecting
    the different operations to the shaft will be constructed. This
    investment will improve logistics, transportation of ore and is expected
    to ultimately reduce cash costs.
--  Following the conclusion of a regional geophysics program in the second
    quarter, a regional exploration drill program designed to target
    geological anomalies in far reaching areas within La Parrilla's large
    69,460 hectare land package will commence for the first time. These
    regional anomalies, never explored by modern techniques, will be drilled
    during the second half of 2012. The results of this exciting program are
    expected to be released in late 2012 in an updated NI 43-101 Technical
    Report.

At the San Martin Silver Mine:

--  During the quarter, the Bolanos Mining District experienced drought
    conditions causing a shortage of water which had a negative effect on
    production of approximately 80,000 ounces in the quarter. These
    conditions have now returned to normal due to the recent season rains
    that have come to the area.
--  Two new large leaching tanks are currently under construction replacing
    some older and smaller tanks. This program is part of First Majestic's
    regular campaign of improving operations by replacing older equipment
    with newer, cleaner and more efficient systems. Further improvements are
    scheduled which will include, new clarification filters, tailings
    filters to recirculate water and improve environmental conditions.
--  The early results of the exploration drilling program at the
    Rosarios/Huichola veins have returned very positive results; showing the
    definition of a new North/South system of veins that were previously
    unknown. Five drill rigs are currently active within the San Martin
    property. The Company is planning to release on a new NI 43-101
    Technical Report prior to the end of 2012.
--  Total metres drilled in the second quarter amounted to 12,066 metres
    compared to 9,205 metres drilled in the previous quarter. In addition,
    2,172 metres of development were completed in the second quarter of 2012
    compared with 2,526 metres of development in the first quarter of 2012.

At the Del Toro Silver Mine:

--  Construction and development at the Del Toro Silver Mine is well
    underway with initial production expected to reach 1,000 tpd in the
    fourth quarter of 2012, 2,000 tpd by the end of 2013, and 4,000 tpd by
    mid-2014.
--  After the completion of the platform construction at the mill site in
    the first quarter, foundations were poured at the crushing, flotation
    and thickener areas in the second quarter. In addition, mechanical
    installation also began at the crushing, flotation and thickeners areas.
--  Construction of the sewage water treatment plant was completed during
    the first quarter and was tested during the second quarter. Once the
    mill construction is completed, First Majestic is looking forward to
    being able to recirculate the waste water from the area back into a
    collection facility for treating and reuse not only saving the
    environment but also conserving water in the region.
--  Six drill rigs are active; three on surface and three underground.
    During the quarter, thirty holes were completed for a total of 11,632
    metres. Drilling continues in order to infill previous holes, and test
    for additional resources and to upgrade previously defined measured and
    indicated resources.
--  Underground development is continuing into the very prospective
    Perseverancia mine which is turning out to be very successful. The San
    Nicolas discovery was intersected in November 2011 due to this focus.
    The Company will be releasing a newly updated NI 43-101 Technical Report
    by the end of the third quarter to include some of this new resource and
    improved metallurgical results.
--  Development at the San Juan mine for preparation for the upcoming
    production stage continued during the quarter, including a new pump
    station, new powder magazines and the initial work of a new underground
    shop. The total development at Del Toro for the second quarter was 2,673
    metres for a total of 5,430 metres for the first half of the year.
--  The permitting process is continuing with the Mexican government
    authorities to complete the permitting process for the cyanidation
    circuit and enlarged processing facilities at Del Toro and approval is
    expected in the third quarter.

Silvermex Acquisition:

La Guitarra Silver Mine:

--  First Majestic management has been following developments at the La
    Guitarra mine for over five years. An aggressive exploration program is
    being evaluated to be developed in the multiple areas of interest
    covered by the 39,714 hectares of mining claims within the Temascaltepec
    mining District.
--  The Company plans to maintain production levels at current levels of 350
    tpd to the end of 2012.
--  Following the acquisition, a development program is being defined to
    prepare the mine for a first ramp up stage in which, by the first
    quarter of 2013, throughput is planned to reach 500 tpd through
    flotation.
--  The concentrates being produced at La Guitarra are being shipped to the
    La Parrilla for leaching in the cyanidation process and will convert
    this production into dore bars to reduce smelting and refining costs and
    improve economics.
--  Permitting for a 1,000 tpd cyanidation processing facility will commence
    in the next few months with a planned commencement of construction in
    the third quarter of 2013.
--  At 1,000 tpd through cyanidation, production is expected to reach 2
    million ounces of annual silver dore production per year.

Rosario Silver Mine and other assets:

--  First Majestic is reviewing the exploration program for the Rosario and
    San Juan properties in the Sinaloa Mexico area to commence during 2013.
    The Company is assessing the other properties acquired by the Silvermex
    acquisition to define if these additional properties fit within the
    Company's portfolio.

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.

FIRST MAJESTIC SILVER CORP.

Keith Neumeyer, President & CEO

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in First Majestic Silver Corp.'s Annual Information Form for the year ended December 31, 2011, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Contacts:

First Majestic Silver Corp.

Keith Neumeyer

President & CEO

Toll Free: 1.866.529.2807 or (604) 688-3033

(604) 639-8873 (FAX)
info@firstmajestic.com
www.firstmajestic.com