Mr. Keith Neumeyer reports

FIRST MAJESTIC REPORTS THIRD QUARTER FINANCIAL RESULTS

First Majestic Silver Corp. has released unaudited interim consolidated financial results of the company for the third quarter ended Sept. 30, 2014. The full version of the financial statements and the management discussion and analysis can be viewed on the company's website or on SEDAR and on EDGAR. All amounts are in United States dollars unless stated otherwise.

Keith Neumeyer, chief executive officer and president of First Majestic, stated: "The company's primary focus remains to be cost cutting. Unfortunately, due to the lower production in the third quarter, severance payouts and temporary lower throughput at two of our mines, our costs were modestly higher in the quarter. This trend is anticipated to reverse in the fourth quarter which will benefit from a reduced work force and lower energy and chemical costs. Due to the fact that the silver price is dropping more quickly than costs, diligence is required to remain focused on bringing all cost structures down to 2006 levels. I'm confident that the changes currently under way in our business will allow us to produce profitable ounces in this lower metal price environment."

Third quarter 2014 financial highlights

• The company generated revenues of $40.8-million, a 39-per-cent decrease compared with the previous quarter primarily due to a temporary suspension of silver sales totalling 934,000 ounces.
• Net earnings after taxes amounted to a loss of $10.5-million or loss per share of nine cents.
• Adjusted loss per share was four cents, after excluding non-cash and non-recurring items.
• Cash flow per share was eight cents, representing a 53-per-cent decrease from the prior quarter.
• Mine operating loss amounted to $1.8-million primarily due to a 39-per-cent decrease in revenue and 36-per-cent decrease in cost of sales primarily attributed to the suspended silver sales.
• Total cash cost, net of byproduct credits, was $10.41 per ounce, up 8 per cent from the prior quarter primarily due to a 13-per-cent decrease in silver production during the quarter.
• All-in sustaining cost (AISC) was $19.89 per payable silver ounce, up 9 per cent from the prior quarter.
• Average realized silver price per ounce was $19.10, a decrease of 3 per cent compared with the prior quarter.
• Cash and cash equivalents were $34.7-million held at the end of the quarter plus the silver held in inventory.
• Subsequent to quarter end, the company sold all 934,000 ounces of silver that it held over from the third quarter for an average price of $17.29 per ounce increasing the cash balance by $16.1-million.

                                               THIRD QUARTER 2014 HIGHLIGHTS

                                                           Q3            Q2            Q1            Q4            Q3
                                                         2014          2014          2014          2013          2013
Operating
Ore processed/tonnes milled                           621,196       671,024       637,663       701,617       641,345
Silver ounces produced                              2,680,439     3,098,218     2,895,497     2,746,598     2,689,237
Silver equivalent ounces produced                   3,523,536     3,855,223     3,631,672     3,421,161     3,370,457
Cash costs per ounce                                   $10.41         $9.63         $9.88         $9.66         $8.84
All-in sustaining cost per ounce                       $19.89        $18.18        $18.71           n/a           n/a
Total production cost per tonne                        $54.34        $51.81        $53.20        $42.69        $43.49
Average realized silver price per ounce
($ per equivalent ounce)                               $19.10        $19.59        $20.90        $20.61        $21.58
Financial
Revenues ($ millions)                                   $40.8         $66.9         $65.3         $59.0         $76.9
Mine operating earnings ($ millions) (loss)            ($1.8)          $9.5         $16.6         $14.3         $29.2
Net earnings ($ millions) (loss)                      ($10.5)          $7.6          $6.0       ($81.2)         $16.3
Operating cash flows before
Movements in working capital
and income taxes  ($ millions)                           $9.0         $19.0         $25.4         $20.4         $37.2
Cash and cash equivalents ($ millions)                  $34.7         $66.7         $41.5         $54.8         $67.5
Working capital ($ millions)                            $11.4         $46.1         $18.7         $32.8         $69.6
Shareholders
Earnings per share (EPS) -- basic (loss)              ($0.09)         $0.06         $0.05       ($0.69)         $0.14
Adjusted EPS (loss)                                   ($0.04)         $0.02         $0.06         $0.05         $0.22
Cash flow per share                                     $0.08         $0.16         $0.22         $0.17         $0.32
   

Financial review

The company generated revenues of $40.8-million for the third quarter of 2014, a 39-per-cent decrease compared with the previous quarter primarily due to a temporary suspension of silver sales of approximately 934,000 silver ounces to maximize profit in response to a 19-per-cent decline in the price of silver during the quarter, and a 9-per-cent decrease in total production. Net earnings decreased to a loss of $10.5-million, or nine cents per share, compared with earnings of $7.6-million, or six cents per share in the previous quarter. After excluding non-cash and non-recurring items, adjusted net loss was $5.0-million (adjusted EPS loss of four cents). Adjusted net loss in the quarter was primarily due to the reduction in ounces sold following the decision to suspend silver sales. The sale of the 934,000 silver ounces will now be realized in the fourth quarter.

Mine operating earnings decreased to a loss of $1.8-million compared with earnings of $9.5-million in the previous quarter. The decrease is primarily due to the suspended sales during the quarter and lower silver prices.

Cash flows from operations before movements in working capital and income taxes in the third quarter totalled $9.0-million or eight cents per share, compared with $19.0-million or 16 cents per share in the previous quarter. The decrease is primarily due a reduction in mine operating earnings during the quarter.

Operational review

Total production in the third quarter was 3,523,536 silver equivalent ounces, a decrease of 9 per cent compared with the previous quarter. The lower production was primarily due to 25-per-cent decrease in production at La Encantada following a change in the production sequence and a 21-per-cent decrease in production from Del Toro caused by lower tonnage due to the decision to reconfigure the plant to process all ore through flotation, as well as seasonal disruptions due to severe weather during the Mexican rainy season which affected the La Parrilla, San Martin and Del Toro mines.

In an effort to cut costs in the low metal price environment, the company has reduced its work force from approximately 4,900 in January, 2013, to approximately 3,800 currently. The reduction was achieved by eliminating certain management positions and cutting operational staff and contractors in an effort to reduce its work force without impairing future growth plans. Due to severance payouts, the cost savings of these most recent layoffs will not be realized until the fourth quarter of 2014.

At La Encantada, the company's plan to expand the crushing and grinding area to allow for higher production levels will begin in the first quarter of 2015 and is scheduled to be completed by mid-2015. The $9.0-million investment, of which $3.4-million had been spent to date, is estimated to increase annual production to over five million ounces of silver. The plant ramp-up to 3,000 tonnes per day is expected to occur in the second half of 2015.

In October, the company sold all 934,000 ounces of silver that it held over from the third quarter for an average price of $17.29 per ounce representing a small gain over the closing spot price of silver on Sept. 30, 2014.

Costs and capital expenditures

Cash costs per ounce in the third quarter were $10.41, an 8-per-cent increase from the previous quarter. The increase in cash costs is primarily attributed to a temporary reduction in production at La Encantada due to a change in operational sequencing which resulted in six weeks of lower-grade production. This change was completed during July and August and by September higher silver grades returned. AISC in the third quarter were $19.89 per payable silver ounce, a 9-per-cent increase from the previous quarter. Future cost savings are anticipated as the company is negotiating with all of its suppliers and contractors to further reduce their costs from reductions made previously. Significant cost reductions are also expected to be achieved during the fourth quarter following Del Toro's connection to the new 115-kilovolt power line which occurred on Sept. 29, 2014, and the resulting discontinuance of the higher-cost portable diesel power generators. An important area of cost savings entered into in the quarter was the signing of a new contract with a chemical supplier allowing for first deliveries commencing in September. The company expects to consume the previous supplier's remaining inventory during the fourth quarter and due to averaging of costs the company anticipates savings to begin immediately, but for the full savings from the new contract to be achieved by January of 2015.

Capital expenditures in the third quarter were $29.0-million, including $8.2-million at Del Toro, $5.2-million at La Encantada, $8.9-million at La Parrilla, $3.1-million at San Martin, $3.2-million at La Guitarra and $400,000 at La Luz. Compared with the previous quarter, capital expenditures increased 21 per cent due to a $4.8-million increase in capital expenditures at La Parrilla, primarily for investment in new mining equipment.

Conference call

The company will be holding a conference call and webcast today at 8 a.m. Pacific Time (11 a.m. Eastern Time). To participate in the conference call, please dial the following:

Toll-free Canada and United States:  1-800-319-4610

Outside of Canada and U.S.:  1-604-638-5340

Toll-free Germany:  0-800-180-1954

Toll-free United Kingdom:  0-808-101-2791

Participants should dial in 10 minutes prior to the conference. Click on webcast on the First Majestic website as a simultaneous audio webcast of the conference call will be posted there.

The conference call will be recorded and you can listen to an archive of the conference by calling:

Canada and U.S. toll-free:  1-800-319-6413

Outside Canada and U.S.:  1-604-638-9010

PIN code:  3928 followed by the number sign

The replay will be available approximately one hour after the conference and will available for seven days following the conference. The replay will also be available on the company's website for one month.

We seek Safe Harbor.