FIRST MAJESTIC SILVER CORP. (the "Company" or “First Majestic”) is pleased to announce it has filed updated technical reports in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects for its three operating mines: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine (collectively, “material assets”). The Santa Elena and La Encantada technical reports have an effective date of December 31, 2020 for exploration data and mine depletion estimates. The San Dimas technical report has an effective date of December 31, 2020 for technical information and mine depletion but uses an exploration data cut-off of June 30, 2020 due to required modeling lead times. Each of the reports were prepared internally by First Majestic and are available on the Company’s website or SEDAR (www.sedar.com) under First Majestic’s issuer profile. The Company has also updated the Mineral Resource estimates for its non-material assets with an effective date of December 31, 2020.

2020 HIGHLIGHTS (compared to prior Mineral Reserve and Mineral Resource estimates on December 31, 2019)

Proven and Probable Mineral Reserves (“P&P”) at the Company’s three producing material assets totaled 62.2 million ounces of silver and 606,000 ounces of gold, or 121.5 million silver equivalent ounces, representing a 16% decrease compared to previous estimates. The decrease was primarily due to the downgrading of 14.6 million silver ounces contained in low grade, old tailings at La Encantada from reserves to resources. In addition, reserves at San Dimas only includes exploration results from the first half of 2020, or 35% of total metres drilled in 2020, while mine depletion is assumed for the full year.
Average P&P grades increased by 40% to 449 AgEq g/t (230 g/t silver and 2.24 g/t gold)
Measured and Indicated Mineral Resources (“M&I”) at the Company’s material assets totaled 111.7 million ounces of silver and 1.26 million ounces of gold, or 233.2 million silver equivalent ounces, representing a 3% increase compared to the previous estimate.
Average M&I grades increased by 2% to 437 AgEq g/t (209 g/t silver and 2.35 g/t gold)
Indicated Resources at the Ermitaño project near Santa Elena increased by 19% to 5.0 million ounces of silver and 335,000 ounces of gold, or 36.1 million silver equivalent ounces. A pre-feasibility study (“PFS”) containing the project’s initial reserves, production rates, costs and estimated life of mine is expected to be released in the fourth quarter of 2021.
Inferred Mineral Resources at the Company’s material assets totaled 98.0 million ounces of silver and 1.22 million ounces of gold, or 214.8 million silver equivalent ounces, representing a 19% increase from the prior estimate.
Average Inferred grades decreased 8% to 406 AgEq g/t (185 g/t silver and 2.31 g/t gold)
Inferred Resources at the Ermitaño project increased to 11.0 million ounces of silver and 522,000 ounces of gold, or 59.5 million silver equivalent ounces, representing a significant 59% increase compared to its prior estimate.
“In 2020, the Company completed over 156,000 metres of exploration drilling across its operating mines and projects in Mexico,” stated Keith Neumeyer, President and CEO. “A large part of this drilling was focused at our San Dimas and Santa Elena operations, including our key development asset, the Ermitaño project, in order to prepare this high-grade deposit for expected initial production in early 2022. At San Dimas, over 87,000 metres of drilling was completed in 2020, however, due to the extensive vein systems across the property and required time to update each model, only 35% of the 2020 drill results made it into this update. At Ermitaño, I’m pleased to report that total resources have increased to 16.1 million ounces of silver and 857,000 ounces of gold, or approximately 96 million silver equivalent ounces, representing a 41% increase compared to its prior estimate. Furthermore, we believe there is a high probability to add additional resources to the east of the Ermitaño ore body. In 2021, we will be testing a few of these high priority targets.“

2020 PRODUCTION TABLE

Units SAN
DIMAS SANTA ELENA LA ENCANTADA TOTAL
Ore Processed Tonnes 713,064 640,276 860,613 2,213,953
Material from Reserves Mined and Processed Tonnes 605,561 608,548 624,169 1,838,279

Material Mined from Areas Not In Reserves Tonnes 107,503 31,728 236,444 375,674

Silver Produced Ounces 6,399,667 1,692,761 3,505,953 11,598,380

Silver-Equivalent Produced from Gold (1) Ounces 6,270,859 2,488,947 20,823 8,780,630

Silver-Equivalent Produced Ounces 12,670,526 4,181,708 3,526,776 20,379,010
(1) Silver-equivalent ounces are estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Details as to the method of calculation can be found in the applicable tables in each mine section of the 2020 Annual Information Form.
(2) Totals may not add up due to rounding.

Metal price assumptions used to estimate the 2020 Mineral Reserves were $17.50/oz for silver, $1,700/oz for gold for San Dimas; and $20.00/oz for silver, $1,700/oz for gold for Santa Elena and La Encantada. This compares to the previous metal price assumptions of $17.50/oz for silver and $1,350/oz for gold used to calculate the Company’s 2019 Mineral Reserves.

MINERAL RESERVE AND MINERAL RESOURCE UPDATE

As of December 31, 2020, Proven and Probable Mineral Reserves at the Company’s material assets totaled 62.2 million ounces of silver and 606,000 ounces of gold, or 121.5 million silver equivalent ounces, representing a 16% decrease in terms of silver equivalent metal content compared to prior estimates. This decrease is primarily due to the downgrading of 14.6 million silver ounces contained in old tailings at La Encantada from reserves to resources due to changes in economic parameters as well as accounting for a full year of depletion at San Dimas while incorporating only the first six months of exploration drill data, or approximately 35% of the metres drilled during the year, due to lengthy lead times for modelling purposes. Average P&P grades increased by 40% to 449 AgEq g/t (230 g/t silver and 2.24 g/t gold) as higher silver and gold grades were observed at each of the mining operations. Santa Elena’s grade profile benefited from additional high-grade tonnage from the Alejandra and America veins and the continued depletion of the low-grade heap leach pads.

Consolidated Measured and Indicated Mineral Resources, which are inclusive of Mineral Reserves, at the material assets totaled 111.7 million ounces of silver and 1.26 million ounces of gold, or 233.2 million silver equivalent ounces, representing a 3% increase in terms of silver equivalent metal content compared to prior estimates. In addition, average M&I grades increased slightly by 2% to 437 AgEq g/t (209 g/t silver and 2.35 g/t gold). At Ermitaño, Indicated Mineral Resources increased by 19% to 5.0 million ounces of silver and 335,000 ounces of gold, or 36.0 million silver equivalent ounces. M&I grades at Ermitaño increased 2% to 458 AgEq g/t (64 g/t silver and 4.25 g/t gold) following another successful exploration program in 2020 which primarily focused on infill drilling of the main ore body. The Company anticipates releasing a pre-feasibility study for Ermitaño in the fourth quarter of 2021 which is expected to define initial Mineral Reserves, production rates, costs and estimated life-of-mine for the project.

Consolidated Inferred Mineral Resources at the material assets totaled 98.0 million ounces of silver and 1.22 million ounces of gold, or 214.8 million silver equivalent ounces, representing a 19% increase in terms of silver equivalent metal content. Average Inferred grades decreased by 8% to 406 AgEq g/t (185 g/t silver and 2.31 g/t gold) as additional tonnage was added from Ermitaño along with the reclassification of low-grade tailings at La Encantada. Inferred Mineral Resources at Santa Elena’s Ermitaño project increased by 59% to 11.0 million ounces of silver and 522,000 ounces of gold, or 59.5 million silver equivalent ounces. This significant increase is attributed to successful step out drilling to the east of the main zone and the new Soledad vein to the southwest.

The complete 2020 Mineral Reserve and Mineral Resource estimates for all metals, tonnage and grades are shown below in the following tables:

Proven and Probable Mineral Reserves with an Effective Date of December 31, 2020
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