Jill Arias, VP of Marketing & Executive Assistant, Keith Neumeyer - President and CEO, Todd Anthony Investor Relations

Keith Neumeyer began his professional career in the financial industry. He started in the brokerage business in 1983 and worked for three of Canada’s largest brokerage firms before making a career change when the crash of 1987 decimated the financial markets.

Being based in Vancouver, mining was a natural choice and he founded First Quantum Minerals, which became one of the world’s largest copper companies by the time he left in 2000. This coincided with a bear market in metals but he saw the bottom in 2002 and founded First Majestic Silver, where he is President and CEO.

“I wanted to focus on silver because I thought silver was a unique market, quite different from gold,” Keith explains. “I think silver will outperform gold quite dramatically. I think it is starting to do that now but it will get much more pronounced over the next few years. Silver is also a new market with very few public traded companies. If you think of silver companies, you might get ten at the most. If you look at the gold space, there are hundreds of companies.”

San Martin, Pouring Silver

Pure Silver

He is proud that First Majestic is a pure silver company, one of the purest around. Some 95% of its revenue came from silver in the last quarter and the aim is to keep the company as pure as possible.  First Majestic was founded in 2002 and acquired three silver mines in Mexico between 2004 and 2006. La Parilla was the first acquisition, followed by San Martin and then La Encantada in 2006. The latter is the largest mine, accounting for 60% of the company’s silver production while the other two provide 20% each.

Keith says: “These three mines have been our core assets that we’ve been developing, drilling, building mills and expanding using money that we’ve raised, with $181 million of financing since 2004. The money was spent to build up the operations that we have today.” Further forward, output will be boosted when a fourth mine, Del Toro, comes into production. The aim is to break ground on a new facility there in early 2011 and have it up and running by 2012. A fifth mine, Real de Catorce, is scheduled to be producing by 2013. By the time that happens, production levels should be twice what they are today.

Asset Base

First Majestic has a tremendous asset base, with 350 million ounces of silver defined in the ground. Keith says: “These mines have been around for a long time and La Encantada, for example, when we bought it had zero ounces in the ground defined. Today we’ve got 90 million ounces and we got there by spending $6-7 million in drilling and development. We’re doing 7 million ounces of production this year, let’s say 8 million next year and then 10 million the next year, so there’s a lot of life there. But the 350 million total ounces is just a small representation of the potential of our assets.”

La Encantada Plant

Keith believes the company has gone through an important inflection point and is left with the operational challenges that any company faces on a daily basis. Looking at the life cycle of a business, he reckons First Majestic has successfully gone through the stages of acquiring assets, building them up and putting together a team. “If you can’t match the people to the assets, you’re never going to get them off the ground,” he comments. “We’re very good at doing that. We’ve built an exceptional team and the top forty executives of First Majestic have over 600 years’ experience of mining in Mexico. This team is capable of building one of the largest silver companies in the world. We have a very senior, professional mining team so we’re satisfied with that.”

First Majestic is generating cash at the rate of $1 million every two weeks and has as strong a balance sheet as at any time in its history. Consequently, even though $50 million is needed for the Del Toro development, there is no requirement to go to the markets to raise the money.

The company is constantly on the lookout for acquisitions, looking seriously at a project every month and getting as far as a site visit every three months or so. Drilling is also vital for any mining company but First Majestic hasn’t done any since the fourth quarter of 2008. In July 2008, it had 21 rigs operating but pulled them all off when the financial markets began to deteriorate. Drilling started again in the last quarter and the aim is to have rigs back on all the properties by the first quarter of 2011. Once that happens, the 350 million ounce resource will start to grow again.

Primary Focus

First Majestic’s primary focus is to get silver out of the ground as quickly as possible. Keith says: “At these metal prices, we might as well just be expanding mills and La Parilla is currently riding at 850 tons a day. By the end of 2011, it’ll be at 1600 tons a day. We’re spending $27 million there to get it up to those levels. We’ve got a really good asset base and without any acquisitions, we can double our production over the next three years.”

Keith admits to being a bull in terms of silver. However, he is surprised the price has gone so high so quickly and feels a correction is in order before the next rally. “But I’m a $100 silver guy,” he comments. “I think we will see $100 silver but I’m not sure if that’s going to be 3 or 5 years from now. But the money that’s coming into the market today is completely different from the money that came in back in 2006.”

He reckons the 2006 price hike was driven by short-term, hedge fund money that forced the price up and then caused it to fall just as quickly when the money moved elsewhere. He’s convinced today’s investors are different: “This is money that’s leaving the economy, going into solid assets. This is long-term sticky money.”

For anyone looking to invest in silver, First Majestic is a good bet. According to Keith’s sources, it’s been one of the best performing silver stocks for the past 3-6 months. Nevertheless, he thinks it has some way to go and believes the main reason is future growth: “Our production is going to double over the next three years. If you’re looking at silver, you’ve got to look at First Majestic as an investment.”

For more information:

http://www.firstmajestic.com/

Investor Relations: Todd Anthony

Email: info@firstmajestic.com

Telephone: 604-688-3033

Toll Free: 1-866-529-2807

 Corporate Address: First Majestic Silver Corp.

Address: 925 West Georgia Street,

Suite 1805

Vancouver, BC

Canada V6C 3L2

Telephone: 604.688.3033

Fax: 604.639.8873

Toll Free: 1.866.529.2807