Name: La Parrilla mine.

Location: La Parrilla is located in the municipality of Nombre de Dios, Durango state, Mexico.

Controlling Company: The mine is owned and operated by First Majestic Plata, a wholly-owned subsidiary of First Majestic Silver (FMS) through its Mexican holding company, Corporación First Majestic.

Brief History: La Parrilla consists of underground silver/gold/lead/zinc mines, with a processing facility that was originally constructed in 1956. The mine and plant were operated until 1999, when opera- tions were shut down owing to low silver prices. In 1960, the mining claims were acquired by Minera Los Rosarios, which operated the mine until 1999.

In 2004, FMS acquired the mining rights and the plant from Minera Los Rosarios and, in 2006, successfully negotiated the acquisition of the mineral rights held by Grupo México, which surrounded the original La Parrilla mine. Today, FMS has consoli- dated ownership of the plant and all the land surrounding La Parrilla, where numerous mineral occurrences and mineral deposits are being investigated.

Brief Description: La Parrilla consists of underground silver/lead/zinc mining operations, and cyanidation and flotation ore processing plants.

Geology/Mineralisation: The La Parilla property has known mineralisation throughout, with a complex of five underground mines surrounding the mill: Los Rosarios, La Rosa, San Jose, Quebradillas and San Marcos.

The diorite stock resulted in structural conditions favourable for subsequent emplacement of mineralisation along faults and breccia zones, as well as replacement and skarn deposits into bed and contact zones.

The La Parrilla diorite crops out as an elongated stock with its main axis in a north-east 45º south-west direction and an extension of about 2.8 km, by about 1.5 km in width. Numerous dikes and sills branch out from the stock into the sedimentary rocks.

These rocks comprise a sequence of dark-grey limestone of the Cuesta del Cura Formation (Albian-Cenomanian). Overlaying this formation is a sequence of intercalated limestone and shale thin beds of the Indidura Formation (Upper Cretaceous).

The most important known deposits at La Parrilla occur as vein deposits that pinch and swell along strike, as well as downdip.

La Parrilla district mineralisation comprises concentrations of silver, lead and zinc, associated with gangue minerals such as quartz, calcite and other minor elements.

Primary sulphide mineralisation follows downdip within the mineralised structures containing pyrite, galena, sphalerite, argentite, some chalcopyrite and other silver sulphosalts asso- ciated with quartz and calcite as gangue minerals.

Weathering of the La Parrilla mineralisation has caused oxidisation and secondary enrichment zones containing sulphosalts (cerargyrite, pyrargirite, stephanite) and carbonates (cerussite, hydrozincite, hemimorphite), sulphates (anglesite, willemite) and iron oxides (hematite and limonite) that may reach depths of up to 150 m from the outcroppings.

Reserves: Proven and probable reserves as at December 31, 2013, were 4.19-million tonnes with a grading of 172 g/t of silver, 0.03 g/t gold, 1.2% lead and 1.5% zinc.

Resources: Measured and indicated resources as at December 31, 2013, were 1.71-million tonnes with a grading of 144 g/t of silver, 0.04 g/t gold, 0.6% lead and 0.5% zinc. Inferred resources were 13.3-million tonnes grading 172 g/t silver, 0.02 g/t gold, 1.3% lead and 1.5% zinc.

Products: Silver

Mining Method: Mine development for La Parrilla is carried out using conventional drill-blast methods, and drilling with hand-held jackleg drills is being replaced with electrohydraulic diesel-powered drill rigs.

The underground stoping method used for mining the near-vertical veins and orebodies of the La Parrilla operations is overhand cut and fill.

Major Infrastructure and Equipment: Mining operations at Parilla are highly mechanised, with liberal use of trackless, diesel-powered mobile mining equipment such as load-haul-dump loaders, low- and high-profile dump trucks, electrohydraulic drill jumbos and ancillary mobile support equipment.

Prospects: As part of an expansion programme at La Parrilla, an intensive underground development programme is also under way. This includes a new ramp system and a new production shaft. On completion, all underground mining areas will be connected and ore haulage will be done using underground trains that will tram the ore from the ore passes to the new shaft. This investment is expected to dramatically improve efficiencies and mine logistics and reduce cash costs.

Contact Person: Investor relations, Todd Anthony.

Contact Details:
First Majestic Silver Corp,
tel +1 604 688 3033,
fax +1 604 639 8873,
email info@firstmajestic.com, and
website http://www.firstmajestic.com.