AG.TO · 2018-10-15 12:00:00

FR Frankfurt – FMV First Majestic Produces a Record 6.7 Million Silver Equivalent Ounces in Third Quarter

Resource Estimates

New York – AG October 15, 2018

Toronto – FR

Frankfurt – FMV

First Majestic Produces a Record 6.7 Million Silver Equivalent Ounces in Third Quarter

Vancouver, BC, Canada ‐ First Majestic Silver Corp. ("First Maj estic" or the "Company") announces total

production in the third quarter of 2018 reached a new Company r ecord of 6.7 million silver equivalent ounces.

Total production consisted of 3.5 million ounces of silver, 35, 260 ounces of gold, 4.4 million pounds of lead and

1.2 million pounds of zinc. Silver production for the first th ree quarters of 2018 totaled 8.4 million ounces, or

15.8 million silver equivalent ounces, remaining in‐line with t he 2018 production guidance of between 12.0 to

13.2 million silver ounces or 20.5 to 22.6 million silver equivalent ounces.

“We had a very strong quarter with total production achieving a new record of 6.7 million silver equivalent

ounces representing a 31% increase compared to the prior quarte r,” said Keith Neumeyer, President and CEO.

“The record quarter was primarily due to the Company receiving a full quarter of production from the San Dimas

operation, along with increases in consolidated silver and gold grades of 19% and 35%, respectively. In fact, five

of our six mines recorded higher production levels as a result of these significant grade improvements. However,

due to the prolonged weakness in the silver price we have imple mented a 20% cost reduction program across

all areas of the business which is expected to be fully realized by the first quarter of 2019.”

PRODUCTION TABLE

Q3 Q3 Y/Y Q2 Q/Q

2018 2017 Change 2018 Change

Ore processed/tonnes milled 864,056 730,652 18% 851,349 1%

Total production ‐ ounces of silver

equivalent 6,740,315 3,986,274 69% 5,137,318 31%

Silver ounces produced 3,505,344 2,415,962 45% 2,756,263 27%

Gold ounces produced 35,260 15,414 129% 25,449 39%

Pounds of lead produced 4,443,290 5,171,533 ‐14% 3,949,410 13%

Pounds of zinc produced 1,234,385 922,666 34% 1,382,760 ‐11%

QUARTERLY REVIEW

Total ore processed during the quarter at the Company's silver mines amounted to 864,056 tonnes, representing

a 1% increase compared to the previous quarter. The increase in tonnes compared to the prior quarter was

primarily due to a 106% increase in tonnes processed at San Dim as, offset by an 18% decrease in throughput

processed at La Encantada and a 58% decrease at La Guitarra. The d e c r e a s e a t L a G u i t a r r a w a s d u e t o t h e

operation being placed in care and maintenance on August 3, 2018.

Consolidated silver grades in the quarter averaged 152 g/t compared to 127 g/t in the previous quarter. This 19%

i n c r e a s e w a s p r i m a r i l y t h e r e s u l t o f a f u l l q u a r t e r o f p r o d u c t ion at San Dimas as well as higher grades at La

Encantada, Santa Elena, Del Toro a n d S a n M a r t i n . C o n s o l i d a t e d gold grades increased 35% in the quarter

averaging 1.33 g/t compared to 0.99 g/t in the prior quarter. The increase was primarily due to higher production

at San Dimas as well as higher gold grades at San Martin.

Quarterly consolidated silver and gold recoveries averaged 83% and 95%, representing a 5% and 1% increase,

respectfully, compared to the previous quarter. The Company continues to expect further improvements in

recoveries associated with higher grades and with the installat ion of the microbubble flotation columns at La

Parrilla and Del Toro. The column cells at La Parrilla are expected to be delivered and installed in the first quarter

of 2019 followed by Del Toro in the second quarter of 2019. In addition, installation of the High Intensity Grinding

(“HIG”) mills at Santa Elena and San Dimas have been postponed until the second quarter and third quarter of

2019, respectively, due to additional detailed engineering and process planning. The benefits of this new

technology, most notably higher recoveries and lower operating c o s t s , a r e e x p e c t e d t o b e r e a l i z e d a f t e r

completing ramp up to commercial production in the second half of 2019.

MINE BY MINE PRODUCTION TABLE

*The La Guitarra operation was placed in care and maintenance on August 3, 2018 and reflects only 33 operating days during the quarter.

*Certain amounts shown may not add exactly to the total amount due to rounding differences.

*The following prices were used in the calculation of silver eq uivalent ounces: Silver: $15.02 per ounce; Gold: $1,213 per oun ce; Lead: $0.95 per pound;

Zinc: $1.15 per pound.

At the San Dimas Silver/Gold Mine:

 During the quarter, San Dimas produced 1,445,918 ounces of silver and 21,910 ounces of gold for a total

production of 3,225,352 silver equivalent ounces, reflecting a 90% increase compared to the prior

quarter.

 The mill processed a total of 176,884 tonnes with average silver and gold grades of 269 g/t and 4.0 g/t,

respectively. The higher volume is attributable to the unit pro cessing some of the lower grade stopes

Mine

Ore

Processed

Tonnes

per Day

Silver Oz

Produced

Gold Oz

Produced

Pounds of

Lead

Pounds of

Zinc

Equivalent

Silver Ounces

San Dimas 176,884 1,923 1, 445,918 21,910 ‐ ‐ 3,225, 352

Santa Elena 225,873 2,455 598,693 10, 848 ‐ ‐ 1,475, 635

La Encantada 196,030 2,131 378,983 10 ‐ ‐ 379, 773

La Parrilla 117,130 1,273 330,047 243 1,474, 222 1,234,385 537,986

Del Toro 65,323 710 231,350 87 2,969, 068 ‐ 427, 218

San Martin 67,926 738 438,061 1, 475 ‐ ‐ 557, 746

La Guitarra 14,891 451 82, 292 688 ‐ ‐ 136, 605

Total 864,056 9,392 3, 505,344 35,260 4,443, 290 1,234,385 6,740,315

left behind as they were deemed uneconomical under the old streaming agreement and have now

become economical under the new streaming agreement.

 An additional agitator tank was installed in September to increase retention times resulting in a 2%

improvement in silver recoveries.

At the Santa Elena Silver/Gold Mine:

 During the quarter, Santa Elena produced 598,693 ounces of silver and 10,848 ounces of gold for a total

production of 1,475,635 silver equivalent ounces, reflecting a 5% increase compared to the prior quarter.

 The mill processed a total of 225,873 tonnes, consisting of 135,511 tonnes of underground ore and

90,362 tonnes from the above ground heap leach pad.

 Silver and gold grades from underground ore averaged 128 g/t an d 2.2 g/t, respectively. Silver and gold

grades from the above ground heap leach pad averaged 37 g/t and 0.6 g/t, respectively.

 During the quarter, the Company signed a 25‐year agreement with a local Banamichi Ejido for all surface

and access rights to the Ermitaño West project. In addition, as previously announced on September 10th,

the Company exercised the Ermitaño and Cumobabi option agreemen ts with Evrim Resources Corp. for

a 100% earn‐in on the mining concessions on both projects. Foll owing these two significant events, the

Company began a 4,400 metre infill exploration program on the E rmitaño West project in mid‐

September with the objective of upgrading a portion of the Inferred Resources to Indicated Resources.

At the La Encantada Silver Mine:

 For the quarter, silver production reached 378,983 ounces repre senting a 16% increase from the

previous quarter. The increase in silver production was primari ly due to a 29% increase in silver grades

offset by an 18% decrease in tonnes milled as the operation was impacted by torrential rains in the

month of September.

 Silver grades and recoveries during the quarter averaged 107 g/ t and 56%, respectively. The increase in

silver grades were the result of higher tonnage from the San Javier breccia which produced 64,117

tonnes with an average silver gr ade of 130 g/t. Additional prod uction from the La Prieta breccia, a new

sub‐level caving area known to contain higher silver grades of between 150 g/t to 200 g/t, is expected to

begin preparation by the end of October.

 Initial dry commissioning activities commenced on the roaster o n August 21, 2018 with the preheating

of the rotary furnace to cure the refractory brick lining. The burner was successfully tested using natural

gas, however, due to heavy rains throughout most of September t he Company postponed initial

production and conversion to sustainable coal injection. The ro aster is now in its final commissioning

stages and the Company anticipates production of tailings to begin by the end of October.

At the La Parrilla Silver Mine:

 During the quarter, the flotation circuit processed 70,271 tonn es (764 tpd) with an average silver grade

of 102 g/t and a 74% recovery while the cyanidation circuit pro cessed 46,859 tonnes (509 tpd) with an

average silver grade of 140 g/t and a 76% recovery for total production of 537,986 silver equivalent

ounces.

 The lead circuit processed an average lead grade of 1.3% with recoveries of 71% for total lead production

of 1.5 million pounds, representing an 11% decrease compared to the previous quarter.

 The zinc circuit processed an average zinc grade of 1.6% with recoveries of 51% for total zinc production

of 1.2 million pounds, representing an 11% decrease compared to the previous quarter.

At the Del Toro Silver Mine:

 During the quarter, Del Toro produced a total of 427,218 silver equivalent ounces reflecting a 32%

increase compared to the prior quarter primarily due to a 26% i ncrease in silver grades, a 22% increase

in lead grades and a 10% increase silver recoveries.

 Silver grades and recoveries during the quarter averaged 147 g/t and 75%, respectively.

 Lead grades and recoveries averaged 3.3% and 62%, respectively, producing a total of 3.0 million pounds

of lead representing a 29% increase compared to the previous quarter.

At the San Martin Silver Mine:

 During the quarter, San Martin produced 438,061 ounces of silve r and 1,475 ounces of gold for a total

production of 557,746 silver equivalent ounces, reflecting a 6% increase compared to the prior quarter.

The increase in production was primarily attributed to an incre ase in silver and gold grades of 10% and

19%, respectively.

 Silver grades and recoveries averaged 224 g/t and 90%, respectively, during the quarter. In addition, gold

grades and recoveries averaged 0.8 g/t and 89%, respectively.

At the La Guitarra Silver Mine:

 During the quarter, La Guitarra produced 82,292 ounces of silver and 688 ounces of gold for a total

production of 136,605 silver equivalent ounces.

 As previously announced, the Company placed the La Guitarra milling and mining operations under care

and maintenance on August 3rd and is currently reviewing strategic options including the potential sale

o f t h e o p e r a t i o n . T h e C o m p a n y wi l l c o n t i n u e w i t h c u r r e n t p e r m i tting activities and remediation

programs to prepare the operation for a potential reopening in the future, subject to a sufficient

improvement in the economic situation to justify a restart of the operation.

Q3 EARNINGS ANNOUNCEMENT

The Company is planning to release its third quarter 2018 unaud ited financial results on Tuesday, November 6,

2018.

ABOUT THE COMPANY

First Majestic is a mining compan y f o c u s e d o n s i l v e r p r o d u c t i o n in Mexico and is aggressively pursuing the

development of its existing mineral property assets. The Compan y presently owns and operates the San Dimas

Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the La Parrilla Silver Mine, the

San Martin Silver Mine and the Del Toro Silver Mine. Production from these mines are projected to be between

12.0 to 13.2 million silver ounces or 20.5 to 22.6 million silver equivalent ounces in 2018.

FOR FURTHER INFORMATION contact [email protected], 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

Cautionary Note Regarding Forward Looking Statements

This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigatio n Reform Act of

1995 and applicable Canadian securit ies legislation, concerning the business, operations and financial performance and conditi on 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 r ealization of mineral reserve e stimates, the timing and amount of estimated

future production, costs of pr oduction, capital expenditures, c osts and timing of the development of new deposits, success of exploration

activities, permitting time li nes, hedging practices, currency exchange rate fluctuations, requi rements for additional capital , government

regulation of mining operations , environmental risks, unanticip ated reclamation expenses, timing and possible outcome of pendi ng litigation,

title disputes or cl aims and limitations on insurance coverage. Generally, these forward-look ing 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 certai n actions, events or

results "may", "could", "would", "might" or "will be taken", "o ccur" 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 di fferent 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 in ternational operations; risks related to joint venture operatio ns; actual results of

current exploration activities; actual results of current recla mation 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, la bour disputes and other risks of the mining industry; delays in obtaining

governmental approvals or financing or in the completion of dev elopment or construction activiti es, as well as those factors d iscussed in the

section entitled "Description of the Business - Risk Factors" i n First Majestic Silver Corp.'s Annual Information Form for the year ended

December 31, 2017, available on www.sedar.com, and Form 40-F on file with the United States Securities and E xchange Commission in

Washington, D.C. Although First Majestic Silver Corp. has atte mpted to identify important facto rs that could cause actual res ults 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 wi ll prove to be accurate, as actual results and future events co uld differ

materially from those anticipated in such statements. Accordin gly, 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.

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