FIRST MAJESTIC SILVER CORP.
Suite 1805 – 925 West Georgia Street
Vancouver, B.C., Canada V6C 3L2
Telephone: (604) 688-3033 Fax: (604) 639-8873
Toll Free: 1-866-529-2807
Web site: www.firstmajestic.com; E-mail: info@firstmajestic.com
 
 
NEWS RELEASE

TSX Exchange – FR January 11, 2010
OTCQX – FRMSF  
Frankfurt – FMV (WKN: A0LHKJ)

Production increases by 18%, reaches new record

First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce that production in the fourth quarter ending December 31, 2009 increased to 1,249,568 equivalent ounces of silver representing a 15% increase over the prior quarter production and 18% over the fourth quarter of 2008.

The equivalent silver production for the quarter consisted of 1,103,840 ounces of silver, representing an 18% increase from the prior quarter, and 1,574,819 pounds of lead representing a 7% decrease from the previous quarter, and 691 ounces of gold representing a decrease of 6% compared to the previous quarter.

The ore processed during the quarter at the Company's three operating silver mines, the La Encantada Silver Mine, the La Parrilla Silver Mine and the San Martin Silver Mine, amounted to 251,258 tonnes milled in the quarter representing a 17% increase over the previous quarter. The overall average silver head grade in the quarter for the three mines increased by 7% over the previous quarter to an overall head grade of 220 g/t of silver. The combined recoveries of silver decreased slightly from 66% to 62%.

The Company developed 5,265 metres underground in the fourth quarter, compared to 6,597 metres of underground development completed in the previous quarter. The total annual underground development for 2009 totalled 21,391 metres. Development has been focused on increasing the Reserve and Resource preparation ratios at the three operating mines. Also, the diamond drilling programs totalled 1,031 meters of definition drilling in the quarter, for a 2009 annual total of 7,459 metres of definition drilling completed at the Company’s three mines.

At the current ramp up rate underway at the La Encantada operation, production is expected to exceed 6.0 million ounces of silver globally in 2010 of which approximately 90% of that production will be in the form of Doré bars.

As a result of the efforts and work completed in 2009, some of the improvements and advances made during the year include:

At the La Encantada Silver Mine:


At the La Parrilla Silver Mine:

At the San Martin Mine:

At the Del Toro Project:

At the Real de Catorce Silver Project:

Mr. Neumeyer stated, “I am very pleased with the efforts and accomplishments achieved by all our senior personnel and staff during 2009. The completion of the La Encantada construction was obviously a key milestone, however, it should also be noted that production levels at our La Parrilla and San Martin mines have been running above budget for the past two quarters. Assuming we can maintain our current production levels at La Parrilla and San Martin and with the increases in production coming out of the La Encantada, the year 2010 is shaping up to be a very good year for First Majestic.”

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First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.

FOR FURTHER INFORMATION contact info@firstmajestic.com, 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

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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