First Majestic Silver Corp.: La Parrilla Silver Mine Update and New NI 43-101 Resource

FIRST MAJESTIC SILVER CORP. ("First Majestic" or the "Company") (TSX: FR)(PINK SHEETS: FRMSF)(FRANKFURT: FMV)(WKN: A0LHKJ) is pleased to announce an update regarding its activities in Mexico at the La Parrilla Silver Mine and the resource development presently underway.

The La Parrilla Silver Mine is located in the Municipality of Nombre de Dios, Durango State, Mexico approximately a 45 minute drive from the City of Durango east along Highway 45. The La Parrilla Silver Mine consists of underground silver / lead / zinc mining operations and a cyanidation and flotation ore processing plant with an installed capacity of 800 tonnes per day (tpd). The plant processes both oxide and sulphide silver ores in two separate 400 tpd parallel circuits. The La Parrilla Silver Mine property consists of 53,249 hectares (131,581 acres) of mining rights that cover 3,434 hectares (8,484 acres) within 36 titled concessions in addition to 49,816 hectares (123,091 acres) in two approved claim applications. The mill is presently running at 740 tpd or 93% capacity. This production rate continues to increase as operational efficiencies are gained. Both dore metal bars and flotation concentrates are being produced.

First Majestic is continuing an aggressive development and exploration program in the area of the La Parrilla Silver Mine. This program is focusing on developing additional Resources and Reserves and includes drilling with six rigs and underground development. The development program includes underground workings, such as ramps for access, drifting and crosscutting into the Los Rosarios System, La Blanca, San Marcos, Quebradillas and Vacas areas. This program is designed to accomplish the following: 1) planning and developing systematic production, increasing operating capacity and efficiency; 2) recovering oxide and sulphide mineralization consolidating mining blocks and increasing Reserves to support reasonable production increases; 3) supporting exploration activities for development, channel sampling and underground drilling; 4) carrying out an aggressive exploration program including deeper drilling from underground sites; and 5) focusing exploration efforts into regional exploration targets.

To date, La Parrilla Silver Mine resource development continues to exceed Management's expectations due to the success of the ongoing drilling program. In addition, production levels continue to increase as improvements in the operations are achieved.

La Parrilla Silver Mine district comprises numerous mineralized structures, vein, breccia zones and metasomatic mineral concentrations within the area, including additional geologic potential to discover other projected concentrations in regional and local structures and in their projected intersections. Some of the known deposits within the boundaries of La Parrilla Silver Mine's area are: the Los Rosarios, La Rosa and La Blanca/San Jose vein system (Los Rosarios System); San Marcos; Quebradillas; Las Vacas; San Nicolas; Las Animas, and numerous other targets for exploration along known structures and projected intersections, such as Milagros, La Vibora and Sacramento.

First Majestic launched the present aggressive drilling program in 2005 to explore the various areas of interest within the La Parrilla Silver Mine holdings. From that time to October 2007, a total of 213 drill holes have been completed for a total of 54,313 drilled metres. In addition, underground mine workings for development and exploration total 10,606 metres in declines, drifts, ramps and raises. The following Reserve / Resource Tables outline the current NI 43-101 compliant estimates as of October 31, 2007. However, only 165 holes were included in this estimate as 48 out of the 213 holes were still pending from Inspectorate Lab of Reno, Nevada.

The following summary tables were taken from the complete La Parrilla Silver Mine NI 43-101 Technical Report prepared by Pincock Allan & Holt, Lakewood, Colorado (PAH). Shareholders and interested parties are encouraged to read this positive report which can be viewed on SEDAR ( www.sedar.com ) and the Company's website at www.firstmajestic.com .


Total Proven   Probable Mineral Reserves (Mineable Reserves) (1)(2)(7)
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                                               Grade
                                        -------------------
                                                                 Contained
                                       Silver   Lead   Zinc Silver Eq. oz.
Category                       Tonnes g/tonne      %      %         (3,4,5)
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Proven Reserves - Oxides      195,282     330   0.00   0.00      2,111,266
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Proven Reserves - Sulphides   156,087     316   1.41   1.28      1,736,704
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Probable Reserves - Oxides    104,925     325   0.00   0.00      1,116,347
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Probable Reserves - Sulphides  97,101     336   1.08   0.38      1,143,235
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Total Proven   Probable
 Mineral Reserves             553,394     326   0.59   0.43      6,107,551
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Total Measured   Indicated Resources (6)(7)

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                                         Grade
                              -----------------------------
                                                                Contained
                                 Gold  Silver   Lead   Zinc Silver Eq. oz.
Category               Tonnes g/tonne g/tonne      %      %         (3,4,5)
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Measured Resources -
 Oxides               380,481    0.22     402   0.00   0.00      4,986,964
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Measured Resources -
 Sulphides            962,148    0.11     325   2.85   2.74     12,613,000
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Indicated Resources -
 Oxides               586,079    0.17     264   0.00   0.00      5,096,324
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Indicated Resources -
 Sulphides          738,962    0.06     196   3.35   5.39      6,640,117
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Total Measured  
 Indicated
 Resources          2,667,671    0.13     287   1.95   2.48     29,336,405
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Total Inferred Resources (6)(7)

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                                         Grade
                              -----------------------------
                                                                Contained
                                 Gold  Silver   Lead   Zinc Silver Eq. oz.
Category               Tonnes g/tonne g/tonne      %      %         (3,4,5)
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Inferred Resources
 - Oxides           1,292,363    0.11     321   0.02   0.01     13,581,704
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Inferred Resources
 - Sulphides        2,864,868    0.13     189   2.09   2.27     25,057,346
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Total Inferred
 Resources          4,157,231    0.13     230   1.45   1.57     38,639,050
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(1) Cutoff and silver equivalent based on sales. Prices used for
    evaluation: Ag-US$10.50/oz; Pb-US$0.68/lb; Zn-US$1.16/lb.
(2) Cutoff grade estimated for oxides ore as 221 g/tonne Ag only, and for
    sulfides ore as 215 g/tonne Ag only. Zinc is not considered in
    reserves.
(3) Cutoff grade estimated for oxides ore as 215 g/tonne - Ag equivalent
    including Au credit equals 6 g/tonne Ag.
(4) Cutoff grade estimated for Ag/Pb sulfides ore as 185 g/tonne - Ag
    equivalent including Pb credit equals 30 g/tonne Ag.
(5) Cutoff grade estimated for Ag/Pb/Zn sulfides in resources as 132
    g/tonne - Ag equivalent including Pb credit equals 30 g/tonne Ag and
    Zn credit equals 53 g/tonne Ag.
(6) Figures in table may not match due to rounding.
(7) Total Proven   Probable Reserves, Total Measured   Indicated Resources
    and Total Inferred Resources are exclusive of each other and thus are
    not combined.
(8) Samples are numbered & bagged and sent to Inspectorate lab in Durango
    City. The samples are crushed and pulverized at Inspectorate in Durango
    City and sent to Reno, Nevada for assaying.