Acquisition Of The Jerritt Canyon Mine

VANCOUVER – First Majestic Silver Corp. and Sprott Mining Inc. reported the completion of the acquisition of Jerritt Canyon Canada Ltd. from Sprott Mining. Under the Acquisition, First Majestic has acquired all of the issued and outstanding common shares of Jerritt Canyon in exchange for 26,719,727 common shares of First Majestic and 5,000,000 common share purchase warrants at an exercise price of $20.00 per share for a term of three years. The $30 million private placement was completed by Eric Sprott at a price of $17.59 per share for a total of 1,705,514 common shares. As a result of Mr. Sprott’s participation in the transactions, Mr. Sprott beneficially owns and controls an aggregate of 28,425,241 common shares and 5,000,000 warrants, representing approximately 11.3% of the Company’s issued and outstanding common shares on an undiluted basis and 13.0% on a partially diluted basis.

Keith Neumeyer, President and CEO of First Majestic said, “With this closing, First Majestic adds another cornerstone asset to the portfolio and enhances our operating platform in a world-class mining jurisdiction. We look forward to commencing our work with the operating team at Jerritt Canyon to create value for our shareholders and welcome Eric Sprott as a continued significant shareholder in First Majestic going forward. In the near future, we will be communicating our plan for Jerritt Canyon, which will include ways to further improve productivity and reduce operating costs.”