Mr. George Paspalas of Mag Silver reports

MAG SILVER REPORTS ADDITIONAL SILVER-COPPER AND PERVASIVE ZINC MINERALIZATION AT SALAMANDRA

Mag Silver Corp. has released assay results from its 12-hole, 6,500-metre phase 2 drill program on the Salamandra property in Durango, Mexico, optioned from Canasil Resources Inc. Phase 2 drilling began in late February, 2014, and concluded in May, 2014. The phase 1 assays were released in a press release dated March 17, 2014, and combined with phase 2, Mag has now drilled 10,112 metres in 17 holes on the Salamandra property, complementing an initial 12 holes previously drilled by Canasil.

Mag's phase 2 exploration program consisted of five follow-up holes (SA 14-19, 14-20, 14-22, 14-24 and 14-29) designed to determine the geometry of the best holes drilled in phase 1 (SA 13-13 and SA 14-15) plus seven exploration holes testing geological, geochemical and geophysical anomalies around the previously undrilled half of the circumference of the district's central intrusive complex. To date, 15 of Mag's 17 total holes have cut appreciable widths of strongly anomalous zinc mineralization, leaving the entire system prospective for further drilling. The drill results will now be used to refine earlier interpretation of extensive Canasil airborne and ground geophysical data prior to phase 3 drilling.

The best follow-up hole is SA-20, which cut 0.63 metre grading 258 grams per tonne (7.5 ounces per ton) silver with 0.27 per cent copper lying immediately above 9.9 metres grading 2.4 per cent zinc. These values and relative position are very similar to that seen 380 metres deeper in SA 14-15 and appear to reflect the same mineralized zone. Hole SA 14-22, also drilled to offset hole 15, cut several zinc-rich zones but appears to have been drilled above and parallel to the mineralized zone cut in holes 15 and 20. Similarly, the first two of the three follow-up holes (SA 14-19, 14-24 and 14-29) drilled to offset the broad zinc zone cut in hole SA13-13 each cut significant widths of zinc mineralization but the intercept geometries prevent correlation.

The seven exploration holes tested the remaining previously undrilled half of the circumference of the intrusive centre. Hole SA14-28 was the best of these exploration holes, cutting 173.46 metres of 1 per cent zinc starting 20 metres below the surface. Holes SA 14-19, 14-20, 14-21, 14-22, 14-24 and 14-25 also hit notable widths of zinc mineralization. The latter hole and hole SA 14-18, were drilled away from the intrusive centre to test under the recent basalt flows that flank the entire project area; both cut major faults interpreted to be the reactivated western margin of the Central Mexico basin, the principal regional structural control on several major carbonate-replacement/skarn systems.

"Salamandra continues to show structurally controlled and broad pervasive multistage mineralization almost everywhere we drill," said George Paspalas, president and chief executive officer. "We are beginning to understand the geometry of the mineralization controls in some areas and hope that combining the drill results with the existing geophysics will help us zero in on areas with high-grade polymetallic skarn and CRD [carbonate replacement] mineralization."

About Salamandra

Salamandra appears to be a typical Mexican carbonate-replacement/skarn deposit and is very similar to Mag's Cinco de Mayo project, the same exploration model that drove successful exploration there is being applied to Salamandra. Salamandra lies 80 kilometres northwest of Mexico's largest known silver-lead-zinc carbonate-replacement/skarn deposit, the Sabinas-San Martin district. Both Salamandra and Sabinas-San Martin are favourably positioned at the intersection of the Mexican CRD belt (that also hosts Mag's Cinco de Mayo carbonate-replacement project) and the Fresnillo trend (that hosts Mag's Juanicipio project). Previous drilling at Salamandra by Canasil (holes SA1 to SA12) was undertaken in a limited area characterized by medium-grade to high-grade zinc mineralization. Mag's exploration program was designed to probe and develop a better understanding of the scope and size of the system and development of exploration vectors, so drilling focused on targets 200 to 2,000 metres from previous drilling. Targets included mineralized intrusive breccias, dike swarms and mineralized structures revealed by Mag's detailed geologic mapping, geochemical sampling and reinterpretation of Canasil geophysics. The Canasil geophysics will be reinterpreted again in the light of Mag's stage 1 and stage 2 drilling results before stage 3 drilling is undertaken.

                 ASSAY RESULTS -- PHASE 2 DRILL PROGRAM

Hole ID      From       To  Interval     Au     Ag     Ag     Cu    Zn    Pb         
               (m)      (m)       (m)  (g/t)  (g/t)  (opt)  (ppm)   (%)   (%)

SA14-18    214.53   214.83      0.30   0.01      2    0.1    139   1.6   0.0
SA14-19    128.87   130.22      1.35   0.00     59    1.7     31   0.9   1.1
and        349.87   388.36     37.99   0.01      1    0.0    219   1.6   0.0
SA14-20      8.14    28.35     20.21   0.00     12    0.4    309   1.0   0.4
and        305.45   306.08      0.63   0.04    258    7.5   2736   0.4   3.7
and        307.32   318.11     10.79   0.01      8    0.2    156   2.3   0.3
SA14-21    208.00   221.95     13.95   0.02      4    0.1    437   2.0   0.0
and        262.30   299.00     36.70   0.00     12    0.4   3239   0.4   0.0
SA14-22     12.66    22.36      9.70   0.00     16    0.5    148   0.8   0.3
and        110.65   173.04     62.39   0.01      2    0.1     88   0.8   0.0
including  110.65   114.38      3.73   0.00      4    0.1    185   3.2   0.0
and        163.12   173.04      9.92   0.03      2    0.1    154   2.0   0.0
SA14-23                         No significant values
SA14-24    231.30   300.20     68.90   0.00      1    0.0    210   0.8   0.0
including  281.54   299.09     17.55   0.00      1    0.0    188   1.5   0.0
including  293.76   299.09      5.33   0.00      1    0.0    261   3.0   0.0
and        300.20   304.90      4.70   0.00     39    1.1   2712   0.1   0.0
SA14-25    113.00   143.51     30.51   0.00     25    0.7    164   0.8   0.4
including  121.36   126.73      5.37   0.00     41    1.2    225   1.7   0.7
including  138.58   143.51      4.93   0.00     77    2.3    286   1.9   1.3
SA14-26                         No significant values
SA14-27    358.40   366.00      7.60   0.01      2    0.1    278   2.2   0.2
including  358.40   360.68      2.28   0.01      5    0.1    444   3.5   0.2
including  364.12   366.00      1.88   0.02      2    0.1    462   4.4   0.4
SA14-28     19.90   193.36    173.46   0.00      4    0.1     80   1.0   0.1
including  161.54   185.96     24.42   0.01     10    0.3    204   2.2   0.2
SA14-29    108.77   109.07      0.30   0.00     53    1.5    237   3.3   1.5

Mag Silver-Canasil option agreement

In May, 2013, the company entered into an option agreement with Canasil, whereby the company can earn up to a 70-per-cent interest in Canasil's 14,719-hectare Salamandra property (see press release dated May 28, 2013). To complete the initial earn-in of a 55-per-cent interest, Mag must complete $5.5-million in exploration expenditures on the property ($2,677,519 incurred to March 31, 2014) and make additional cash payments to Canasil of $450,000 over the remaining option term to May 28, 2017. Mag can earn an additional 15 per cent by producing either a feasibility study or spending an additional $20-million over an additional four-year period.

Qualified person

Dr. Peter Megaw, PhD, CPG, has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the remaining technical information in this release. Dr. Megaw has a PhD in geology and more than 25 years of relevant experience focused on silver and gold mineralization, exploration and drilling in Mexico. He is a certified professional geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona-registered geologist (ARG 21613). Dr. Megaw is not independent as he is a paid consultant, shareholder and former director of Mag. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work, and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization.

Quality assurance and control

The company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel SA de CV on behalf of Mag Silver. The diamond drill core samples are shipped directly in security sealed bags to ALS Chemex Laboratories' preparation facilities in Hermosillo, Sonora or Chihuahua City (certification ISO 9001). Sample pulps are shipped from there to ALS Chemex Laboratories in North Vancouver, Canada, for analysis. All samples were assayed for gold by standard fire assay/ICP finish with a 50-gram charge. Gold values in excess of three grams per tonne were reanalyzed by fire assay with gravimetric finish for greater accuracy. Silver, zinc, copper and lead values in excess of 100 parts per million, 1 per cent, 1 per cent and 1 per cent, respectively, are also repeated by fire assay.

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