Production At Five Operating Mines In Mexico

VANCOUVER - First Majestic Silver Corp reported that total production at its five operating silver mines in Mexico for the second quarter reached 3,802,558 equivalent ounces of silver, relatively unchanged compared to the same quarter in 2014.

Keith Neumeyer, President & CEO of First Majestic, states, "During the first half of 2015, we produced 7.7 million silver equivalent ounces, which puts us on track of achieving our annual goal of producing between 15.3 to 17.1 million silver equivalent ounces. Production at Del Toro reached a record 2.5 million silver equivalent ounces in the first half of this year, representing a 46% increase compared to the first half of 2014. This substantial increase is primarily due to the Company's decision in mid-2014 to reconfigure the plant in order to process 100% of the ore through flotation."

"During the second quarter, we finished the construction and installation of a new crushing and milling circuit at La Encantada which is currently in its ramp up phase," continued Neumeyer. "As a result of this expansion, we anticipate silver production in the second half of 2015 to increase significantly due to the 50% higher milling capacity at La Encantada. In addition, improvements in dilution and grade control at both La Guitarra and San Martin continue to have a positive impact on the mining operations."

The total ore processed during the quarter at the Company's five operating silver mines: La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 662,637 tonnes, relatively unchanged compared to the second quarter of the prior year and a 5% increase from the previous quarter. The increase in tonnes compared to the prior quarter was primarily due to a 13% increase in throughput rates at La Encantada.

Average silver grades in the quarter for the five mines decreased to 182 g/t compared to 212 g/t in the second quarter of 2014 and slightly decreased 2% compared with the previous quarter. Combined silver recoveries averaged 70% during the quarter, up from 68% in the same quarter of the prior year and below the first quarter average of 74%.

The Company's underground development in the second quarter consisted of 10,259 meters, a 4% increase compared to 9,828 meters completed in the previous quarter.

During the quarter, 18 diamond drill rigs were operating at the Company's five operations. The Company completed 16,268 meters of diamond drilling in the quarter compared to 5,425 meters in the prior quarter, representing a 200% increase primarily due to increased drilling at the La Encantada Silver Mine to support plans to release an updated NI 43-101 Technical Report in the fourth quarter of 2015.