Mr. Keith Neumeyer reports

FIRST MAJESTIC PRODUCES 3.3M OZ SILVER AND 46,545 OZ GOLD (6.4M SILVER EQV. OZ) IN THE SECOND QUARTER OF 2021 - ANNOUNCES UPDATED 2021 GUIDANCE, NEW BOARD APPOINTMENT AND CONFERENCE CALL DETAILS

Total production in the second quarter of 2021 from First Majestic Silver Corp.'s four producing operations, the San Dimas silver/gold mine, the Santa Elena silver/gold mine, the La Encantada silver mine and the recently acquired Jerritt Canyon gold mine, reached 6.4 million silver equivalent ounces, consisting of 3.3 million ounces of silver and 46,545 ounces of gold. The company's financial results for the second quarter of 2021 are scheduled to be released on Monday, Aug. 16, 2021.

Second quarter highlights:

• Total production: The company produced 6.4 million silver equivalent ounces consisting of 3.3 million ounces of silver and 46,545 ounces of gold, representing an increase of 13 per cent and 95 per cent, respectively, compared with the previous quarter primarily due to a 14-per-cent increase in silver equivalent production from the three operating Mexican mines and the inclusion of production from the Jerritt Canyon operation, effective April 30, 2021.
• Liquefied natural gas (LNG) power at Santa Elena: The liquified natural gas facility at Santa Elena successfully reached full capacity after completing final ramp-up procedures in early May. Santa Elena is now the company's second operation that has been fully converted from diesel to low-cost LNG power.
• Stockpiling at Ermitano: During the quarter, the company began extracting low-grade mineralized material from the development of the test stope area from the Ermitano deposit. As of July 5, approximately 18,200 tonnes of mineralized material grading 2.2 grams per tonne (g/t) gold and 39 g/t silver have been placed in surface stockpiles. Over the next six months, an additional 40,000 to 50,000 tonnes of material is expected to be stockpiled on surface in anticipation of future processing at the Santa Elena processing plant in the first quarter of 2022.
• Jerritt Canyon acquisition completed -- early exploration success: During the quarter, the company completed the acquisition of the Jerritt Canyon gold mine, adding a fourth producing operation to its growing portfolio of assets. Postclosing of the acquisition, drill hole WT-151 intersected 76.2 metres of 1.65 g/t gold, including 7.6 metres of 4.63 g/t gold, at Waterpipe II. This area of the property is developing into a target with open-pit potential. Over the next six to 12 months, the company has planned an aggressive exploration program to follow up and test more than 25 near-mine and greenfield targets.
• Twenty-six active drill rigs: The company completed a total of 53,608 metres in exploration drilling across the company's mines during the quarter. At the end of the quarter, a total of 26 exploration drill rigs were active consisting of 13 rigs at San Dimas, five at Jerritt Canyon, six rigs at Santa Elena and two rigs at La Encantada.

"The second quarter marked a major milestone for First Majestic," stated Keith Neumeyer, president and chief executive officer. "The acquisition of Jerritt Canyon not only gave us a new quarterly record in gold production, but it represents the company's first major investment outside of Mexico. The overall integration process of this new mine is going well and has included several site management changes designed to grow this important operation to production levels not seen for over 15 years. Similar to our turnaround story of San Dimas, we are planning to bring significant improvements to Jerritt Canyon but it will require time and investments to complete. Lastly, the exploration potential across Jerritt Canyon's land package is extremely high for large, new discoveries and we are already planning to drill multiple exciting targets, such as Waterpipe II, over the next several quarters."

Quarterly review

Total ore processed during the quarter at the company's mines amounted to 826,213 tonnes, representing a 35-per-cent increase compared with the previous quarter. The increase in tonnes processed was primarily due to the acquisition of the Jerritt Canyon operation on April 30, 2021, and a 26-per-cent increase in production rates at Santa Elena resulting from continued improvements in underground ore deliveries.

Consolidated silver and gold grades in the quarter averaged 137 g/t and 1.80 g/t, respectively. Gold grades increased significantly by 43 per cent when compared with the prior quarter due to the addition of Jerritt Canyon and higher gold grades at Santa Elena and San Dimas in the quarter.

Consolidated silver and gold recoveries averaged 90 per cent and 91 per cent, respectively, during the quarter.

At the San Dimas silver/gold mine:

• San Dimas produced 1,868,031 ounces of silver and 19,227 ounces of gold, representing an increase of 9 per cent and 10 per cent, respectively, compared with the prior quarter for total production of 3,176,725 silver equivalent ounces.
• The mill processed a total of 202,382 tonnes with average silver and gold grades of 301 g/t and 3.07 g/t, respectively.
• Silver and gold recoveries during the quarter averaged 95 per cent and 96 per cent, respectively.
• The Central block and Sinaloa Graben areas contributed approximately 62 per cent and 28 per cent, respectively, of the total production during the quarter. In addition, the Tayoltita, El Cristo and West Block areas contributed approximately 10 per cent of total production in the quarter.
• A total of 13 drill rigs, consisting of two surface rigs and 11 underground rigs, were active at the end of the quarter.

At the Jerritt Canyon gold mine:

• Since taking control of Jerritt Canyon on April 30, 2021, the operation produced 18,762 ounces of gold during the months of May and June.
• The mill processed a total of 146,611 tonnes with an average gold grade and recovery of 4.03 g/t and 84 per cent, respectively. Increased ore development rates and lower ore grade from development activities resulted in higher tonnage with lower average ore grades processed in the plant. In the second half of the 2021, production rates at Jerritt Canyon are expected to average 2,250 tonnes per day (tpd) with estimated average gold grades of 5.30 g/t.
• The SSX and Smith mines contributed approximately 51 per cent and 28 per cent, respectively, of the total production during the quarter. In addition, numerous surface areas contributed approximately 21 per cent of total production during the quarter.
• The company has identified over 25 exploration drill targets that are currently permitted to drill or in the process of permitting. A key focus will be on the Waterpipe II area that has developed into a target with open-pit potential. In June, drill hole WT-151 intersected 76.2 metres of 1.65 g/t gold, including 7.6 metres of 4.63 g/t gold, at Waterpipe II. Over the next six to 12 months, the company has planned an aggressive exploration program to follow up and test these high-priority, near-mine and greenfield targets.
• During the quarter, the company received permitting to lift tailings storage facility No. 2 (TSF2). Initial lift preparation and construction activities began in June with completion expected in the fourth quarter. The lift will provide over two years of additional deposition storage for tailing material at the site.
• A total of five drill rigs, consisting of two surface rigs and three underground rigs, were active at the end of the quarter.

At the Santa Elena silver/gold mine:

• During the quarter, Santa Elena produced 565,453 ounces of silver and 8,453 ounces of gold, representing an increase of 25 per cent and 34 per cent, respectively, compared with the prior quarter for total production of 1,140,398 silver equivalent ounces.
• The mill processed a total of 234,381 tonnes consisting of 166,969 tonnes of underground ore and 67,412 tonnes from the existing heap leach pad. Underground production rates returned to normal operating levels following multiple improvements made in mining methods at the Main, Alejandra de Bajo and America veins.
• Silver and gold grades from underground ore averaged 100 g/t and 1.39 g/t, respectively, while silver and gold grades from the heap leach pad averaged 33 g/t and 0.62 g/t, respectively.
• Silver and gold recoveries averaged 93 per cent and 96 per cent, respectively, during the quarter.
• Santa Elena's new LNG power plant reached designed operating rates in early May and is now supplying full power requirements to the Santa Elena operation. This conversion from diesel to LNG is expected to significantly reduce energy costs and greenhouse gas emissions in the second half of the year.
• At the Ermitano project near Santa Elena, the company completed 1,618 metres of underground development during the quarter. Extraction of low-grade mineralized material from the development of the test stope area from the Ermitano orebody began in the quarter with approximately 18,200 tonnes of mineralized material grading 2.2 g/t gold and 39 g/t silver being placed in surface stockpiles. Over the next six months, an additional 40,000 to 50,000 tonnes of material is expected to be stockpiled on surface in anticipation of future processing at the Santa Elena processing plant in the first quarter of 2022. In addition, construction supporting surface facilities and infrastructure and the main access road connecting the new mine to the Santa Elena processing plant commenced.
• A total of six drill rigs, consisting of three surface rigs and three underground rigs, were active at the end of the quarter.

At the La Encantada silver mine:

• During the quarter, La Encantada processed 242,839 tonnes of ore and produced 840,541 ounces of silver, representing a 14-per-cent increase in ounces compared with the prior quarter.
• Silver grades and recoveries during the quarter averaged 138 g/t and 78 per cent, respectively.
• The La Prieta and San Javier caving areas contributed approximately 73 per cent and 3 per cent, respectively, of the total production during the quarter. In addition, previously mined Chorros areas contributed approximately 24 per cent of total production during the quarter.
• A total of two drill rigs, consisting of one surface rig and one underground rig, were active at the end of the quarter.
• Optimization of plant facilities and improvements to the La Encantada camp advanced during the second quarter, including work on installation of an additional LNG generator and LNG storage tanks.

Jerritt Canyon optimization plans

Given its extensive 40-year production history in Nevada, Jerritt Canyon is one of the state's most prominent gold mines. However, the operation has suffered from a lack of investment in exploration and development in recent years. First Majestic is planning to deploy capital toward exploration, underground development and plant optimization at the operation with the objective of increasing production rates, reducing costs and extending mine life of the asset.

Since the acquisition announcement in January, 2021, First Majestic has been developing a long-term mine and exploration plan for the future of the operation. The company has identified numerous projects that will be implemented over the next 12 to 24 months to improve production and reduce costs at the mine and processing plant, including:

1. Connect the two underground Smith and SSX producing mines with an underground development drift which will be used for future ore haulage and exploration activities;
2. Obtain permit for potential pushbacks of past-producing open pits for future mill feed;
3. Test over 25 high-priority exploration targets, both near-mine and greenfield;
4. Evaluate ore purchase/toll milling opportunities with third parties to fill roaster excess capacity;
5. Execute roaster debottleneck study for future expansion;
6. Optimize water treatment plant for mine dewatering prioritization;
7. Complete lift upgrade of TFS2 and develop a long-term TSF plan.

It should be noted that many of the anticipated benefits from these modifications are not yet reflected in the forecasted operating results below and are expected to take several quarters to materialize.

Outlook

Following the acquisition of the Jerritt Canyon operation, the company has revised its annual production guidance to incorporate the following operational adjustments:

1. The addition of approximately 72,000 to 79,000 ounces of gold (or 5.1 million to 5.6 million silver equivalent ounces) production in 2021 from Jerritt Canyon: On an annualized rate, Jerritt Canyon is projected to produce 104,000 to 110,000 ounces of gold (or 7.9 million to 8.4 million silver equivalent ounces) without taking into account any of the anticipated benefits from the company's optimization plans.
2. At San Dimas, plant throughput is expected to increase 8 per cent to an average of 2,400 tpd in the second half of 2021 compared with 2,220 tpd in the first half of 2021. Silver and gold grades are expected to improve and average 342 g/t silver and 3.55 g/t gold in the second half of 2021 compared with 293 g/t silver and 2.95 g/t gold in the first half of 2021.
3. At Santa Elena, plant throughput is expected to increase 16 per cent to an average of 2,700 tpd in the second half of 2021 compared with 2,319 tpd in the first half of 2021. Blended silver and gold grades from the heap leach pad, together with fresh underground ore, are expected to increase and average 95 g/t silver and 1.07 g/t gold in the second half of 2021 compared with 82 g/t silver and 1.14 g/t gold in the first half of 2021.
4. At La Encantada, plant throughput is expected to increase 5 per cent to an average of 2,750 tpd in the second half of 2021 compared with 2,609 tpd in the first half of 2021. Silver grades are expected to average 146 g/t silver in the second half of 2021 compared with 134 g/t silver in the first half of 2021.

As a result of these operational modifications, total production in 2021 is expected to increase to a range of 25.7 million to 27.5 million silver equivalent ounces consisting of 13.0 million to 13.8 million ounces of silver and 181,000 to 194,000 ounces of gold. This compares with the previous annual production guidance of 20.6 to 22.9 million silver equivalent ounces consisting of 12.5 million to 13.9 million ounces of silver and 100,000 to 112,000 ounces of gold.

The company is also providing guidance for the second half of 2021 on a mine-by-mine basis. Cash costs and all-in sustaining cost (AISC) are on a per payable silver equivalent ounce. Metal price and foreign currency assumptions for calculating silver equivalent ounces were updated to the following: $25 per ounce (oz) for silver (previously $22.50 per oz), $1,800/oz for gold (unchanged) and Mexican peso:United States dollar of 20:1 (unchanged). As result of the lower silver-to-gold ratio used in the updated guidance, the company has reduced its estimated 2021 production by 900,000 silver equivalent ounces.

In the second half of 2021, the company expects total production of between 14.8 million to 16.4 million silver equivalent ounces consisting of 6.7 to 7.6 million ounces of silver and 111,000 to 124,000 ounces of gold. This represents a 44-per-cent increase to the midpoint of guidance when compared with 10.8 million silver equivalent ounces produced in the first half of 2021.

A mine-by-mine breakdown of the revised full-year 2021 production guidance is included in an attached table and assumes the same metal prices and foreign currency assumptions as stated previously.

Annual cash costs are now expected to be within the range of $12.52 to $12.96 per ounce, compared with the previous guidance of $9.52 to $10.10 per ounce, primarily due to the addition of the Jerritt Canyon operation and higher development costs at Santa Elena. In addition, annual all-in sustaining costs are now expected to be within a range of $17.86 to $18.63 per ounce, compared with the previous guidance of $14.81 to $15.99 per ounce. Many of the anticipated cost benefits at Jerritt Canyon are not yet reflected in the forecasted operating results and is expected to take several quarters to materialize.

Revised capital budget

The company has updated its 2021 capital budget to include the Jerritt Canyon operation, as well as the reallocation of capital for development and exploration across its operations. As a result, total capital investments for 2021 are now estimated at $205.3-million, consisting of $84.2-million for sustaining requirements and $121.1-million for expansionary projects. This represents a 22-per-cent increase compared with the original 2021 capital budget of $168.4-million primarily due to the inclusion of the Jerritt Canyon operation and additional investments in underground development at Santa Elena. The revised budget includes $92.2-million to be spent on underground development, $52.9-million toward property, plant and equipment, $35.1-million in exploration, and $25.2-million toward corporate projects. On a mine-by-mine basis, capital expenditures in the second half of 2021 are estimated to be $23-million at San Dimas, $34.4-million at Jerritt Canyon, $36.6-million at Santa Elena (includes $22.7-million at Ermitano) and $6.1 million at La Encantada.

Under the revised 2021 budget, the company is now expecting to complete a total of 50,495 metres of underground development, representing a 7-per-cent increase compared with the original budget of 47,000 metres. In addition, the company is now planning to complete a total of approximately 217,600 metres of exploration drilling in 2021, representing an 18-per-cent increase compared with the original budget of 184,150 metres, primarily due the addition of approximately 52,800 metres of exploration drilling planned at Jerritt Canyon.

Appointment of new director

The board of directors have appointed Colette Rustad as a director of the company, effective July 1, 2021.

Ms. Rustad is an international financial expert with over 30 years of diverse financial and operational experience, including mergers and acquisitions, project construction, risk management, and advisory expertise in the mining, financial services, energy and technology sectors.

She currently serves as a director of the Sanford Housing Society, previously served as a director for Terrane Metals, and held executive positions at Barrick Africa, vice-president and chief financial officer; Goldcorp Inc., senior vice-president treasurer and controller; EY Toronto, senior manager; and Alio Gold, executive vice-president and chief financial officer. She is a chartered professional accountant (CA) and has a bachelor of commerce from the University of Calgary and completed the advanced management program from the Wharton Graduate School of Business, University of Pennsylvania.

Conference call

The company will be holding a conference call and webcast tomorrow, Wednesday, July 14, 2021, at 8 a.m. PDT/11 a.m. EDT.

To participate in the conference call, please dial the following.

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

Outside of Canada and United States:  1-604-638-5340

Toll-free Germany:  0800-180-1954

Toll-free United Kingdom:  0808-101-2791

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

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

Canada and United States toll-free:  1-800-319-6413

Outside Canada and United States:  1-604-638-9010

Access code:  7343, 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.

Q2 earnings and dividend announcement

The company is planning to release its second quarter 2021 unaudited financial results and to announce the second quarter dividend payment and shareholder record and payable dates on Monday, Aug. 16, 2021.

About First Majestic Silver Corp.

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States and is aggressively pursuing the development of its existing mineral property assets. The company presently owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine, the La Encantada silver mine and the Jerritt Canyon gold mine.

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