Mr. Keith Neumeyer reports

FIRST MAJESTIC FILES UPDATED TECHNICAL REPORT FOR THE SANTA ELENA SILVER/GOLD MINE IN SONORA, MEXICO INCLUDING A POSITIVE PRE-FEASIBILITY STUDY FOR THE ERMITANO PROJECT; APPOINTS VICE-PRESIDENT OF EXPLORATION

First Majestic Silver Corp. has filed an updated technical report in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral projects for its Santa Elena silver/gold mine in Sonora, Mexico. The report also includes positive results of a prefeasibility study (PFS) completed for its 100-per-cent-owned Ermitano project which is located only four kilometres east of the Santa Elena processing plant. The company has filed the technical report on its website under the reserves and resources section, and on SEDAR under First Majestic's issuer profile. All amounts are in U.S. dollars unless stated otherwise.

Updated mineral reserve and resource estimates for Santa Elena (compared with mineral reserve and resource estimates on Dec. 31, 2020)

• Proven and probable mineral reserves (P&P) increased 59 per cent to 51 million silver equivalent ounces consisting of 12.6 million ounces of silver and 418,400 ounces of gold. Average P&P grades increased 30 per cent to 314 AgEq (silver equivalent) grams per tonne (78 g/t silver and 2.58 g/t gold);
• Measured and indicated mineral resources (M&I) increased 7 per cent to 69.2 million silver equivalent ounces consisting of 18.9 million ounces of silver and 557,000 ounces of gold. Average M&I grades increased 8 per cent to 355 AgEq g/t (97 g/t silver and 2.85 g/t gold);
• Inferred resources decreased 13 per cent to 62.4 million silver equivalent ounces consisting of 16.2 million ounces of silver and 490,000 ounces of gold. Average inferred grades increased 6 per cent to 310 AgEq g/t (80 g/t silver and 2.43 g/t gold).

Prefeasibility study highlights

• Pretax net present value (NPV) 5 per cent of $133.7-million;
• Pretax IRR (internal rate of return) of 54 per cent;
• After-tax NPV 5 per cent of $64.8-million;
• After-tax IRR of 34 per cent;
• Life of mine (LOM) of seven years, based only on P&P reserves, extending the life of mine at Santa Elena, including the Ermitano project until 2027 producing an estimated 10.3 million ounces of silver and 396,000 ounces of gold;
• After-tax payback of 44 months, or 3.7 years, as of June, 2021;
• LOM consolidated average cash costs at the Santa Elena mining complex is estimated at $105 per tonne, including royalties and selling costs.

"We are very excited to deliver this updated reserves and resource statement for our Santa Elena operation which includes, for the first time, the addition of mineral reserves at our Ermitano project located only four kilometres away from the Santa Elena processing plant," stated Keith Neumeyer, president and chief executive officer. "I am also very pleased to report that we celebrated Ermitano's first dore pour from development stockpiles at the Santa Elena mill in early November. Ore production from this important new mine is anticipated to ramp up throughout 2022 and into 2023. I would like to congratulate our exploration, operation and technical services teams for their hard work and dedication over the past six years to prepare Santa Elena for its next phase of production growth."

Mr. Neumeyer continued: "I am also pleased to welcome Gonzalo Mercado to the First Majestic team as vice-president of exploration. Gonzalo's wealth of exploration knowledge and industry expertise make him a valuable addition to our team and I look forward to working with him as we continue to grow the company."

PFS overview

The financial analysis of Santa Elena considers only revenue from proven and probable mineral reserves. The analysis considers current and projected costs incurred at the Santa Elena mine, processing plant, plus existing contractor quotes for estimating costs for development in the Santa Elena mine and at the Ermitano project.

A general financial summary for Santa Elena, which includes the Santa Elena mine, the Ermitano project and reclaiming of the remaining leach pad material is provided in the relevant attached table. Metal prices assumptions used to calculate the economic parameters below were $22.50 per ounce for silver and $1,700/oz for gold.

The sensitivity analyses completed shows the relative strength of the project under changes to commodity prices, which along with metallurgical recoveries, impact the financial performance of the mine complex more so than changes to operating or capital cost estimates.

The attached relevant table summarizes the sensitivity to the after-tax net present value due to changes in the applied discount rate.

The impact to the after-tax IRR for each of the revenue scenarios are also summarized in the attached relevant table. The sensitivity demonstrates that, even at the lower commodity prices scenario, Santa Elena demonstrates positive IRR.

Mineral resource and mineral reserve estimates

The mineral resources were classified into measured, indicated or inferred categories based on the confidence in the geological interpretation and models, the confidence in the continuity of metal grades, the sample support for the estimation and reliability of the sample data, and on the presence of underground mining development providing detailed mapping and production channel sample support.

The mineral resource estimates for Santa Elena and Ermitano are summarized in two of the attached relevant tables using the silver equivalent cut-off grades appropriate for the mining method assigned to each domain, and an effective date of June 30, 2021. Measured and indicated mineral resources are reported inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The mineral reserves estimation process consists of converting mineral resources into mineral reserves by identifying material that exceeds the mining cut-off grades while conforming to specified geometrical constraints determined by the applicable mining method and applying modifying factors such as mining dilution and mining recovery factors. If the mineral resources comply with the previous constraints, measured resources could be converted to proven reserves, and indicated resources could be converted to probable reserves and, in some instances, measured resources could be converted to probable reserves if any or more of the modifying factors reduces the confidence of the estimates.

The mineral reserves for the Santa Elena mining complex are presented in the relevant attached table.

Processing and recovery methods

To date, the Santa Elena processing plant processes a blended feed consisting of high-grade underground mineralized material and spent ore from the existing heap leach pad. The processing plant has been successfully operating for several years and has continuously improved silver and gold metallurgical recoveries. The process is based on cyanide tank leaching and Merrill-Crowe smelting of fine-ground ore to produce silver-gold dore bars. The nominal plant capacity is for the processing of 3,000 tonnes per day, with the possibility for higher throughput rates depending on ore hardness, targeted final grind and leaching residence time. Typical metal recoveries for the Santa Elena mineralized material ranged from 91 per cent to 94 per cent for silver and 94 per cent to 97 per cent for gold from the combination of run-of-mine production from the underground mine and the leach pad material.

With the introduction of mineralized material from Ermitano, starting with industrial trials in Q4 2021 and commercial production in 2022, the plant is expected to continue to process Santa Elena blended material in campaigns alternating with mineralized material from Ermitano. There are significant differences between these two ores in hardness and metallurgical performance at different grinding sizes. To achieve optimum levels of metal recoveries and the corresponding maximum metal production, the Santa Elena ore will be processed at higher throughput rates than the Ermitano ore during their corresponding production campaigns. Average operating throughput targets are 3,350 and 2,350 tonnes per day for Santa Elena and Ermitano, respectively.

The process plant is mostly built as a single train with the crushing area split from the remaining areas and connected through a belt conveyor to transfer the crushed product to the fine stockpiles. The current leaching plant includes a grinding ball mill, one Outotec HIG-Mill, leaching tanks, three countercurrent decantation or washing tanks, a previously processed leach-pad, a belt-filter facility and a filtered-tailings storage facility. The processing plant is planned to be modified with the commissioning of a new filter press, an additional leaching tank and a fourth CCD thickener in the fourth quarter of 2022.

Due to the high purity of the Santa Elena dore (greater than 98 per cent silver and gold), no penalties are applied by the refineries for the presence of heavy metals. This purity is expected to be maintained after processing the Ermitano ore.

Capital and operating costs

The Santa Elena mine has been under First Majestic operation since October, 2015. The sustaining capital expenditures are budgeted on an as-required basis, established on actual conditions at the mine and the processing plant infrastructure. The LOM plan includes estimates for sustaining capital expenditures for the mining and processing activities required. Sustaining capital expenditures will mostly be allocated for continuing development, infill drilling, mine equipment rebuilding, major equipment overhauls or replacements, plant maintenance and continuing refurbishing, and for tailings management facilities expansion as needed.

The amount of exploration conducted to find new targets, with the objective of replacing and/or expanding the mineral resources will be dependent on the success of exploration and diamond drilling programs. Sustaining capital is focused on maintaining current operational capacities, plant and equipment, while expansionary capital is focused on expanding new sources of mineralization.

The Ermitano project continues development toward the western limit of the mineralized zone, which is planned to be mined at the beginning of 2022. The mining activities are being completed by an experienced contractor that also operates at the Santa Elena mine. Estimated expenses for development are based on existing contracts as it is proposed that contractors continue carrying out all mine waste development.

Included in the capital expense is an allocation for infill exploration drilling to support the LOM plan presented in the technical report. The relevant attached table presents the consolidated summary of the capital expenditures for Santa Elena and Ermitano.

The consolidated average cash costs are estimated at $105/tonne, including royalties and selling costs. Operating costs exclude the streaming impacts on the Santa Elena revenue, where approximately 6.3 per cent of the revenue from the Santa Elena mine, including the leach pad, is paid to a third party. Revenue from the Ermitano mine is subject to a 4-per-cent NSR royalty. Estimated royalty payments are included in the operating cost summary as presented in two relevant attached tables.

Qualified person National Instrument 43-101 technical report

This news release has been reviewed and approved by Ramon Mendoza Reyes, PEng, vice-president of technical services and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. In addition, the technical information in this news release has also been reviewed and approved by the following qualified persons: Phillip J. Spurgeon, PGeo, Maria Elena Vazquez Jaimes, PGeo, and Persio Pellegrini Rosario, PEng.

Appointment of vice-president of exploration

Mr. Mercado is a professional geologist who brings over 20 years of global geological experience to the First Majestic team. Mr. Mercado is a geology graduate from the National University of Tucuman in Argentina and commenced his mining career with Barrick Gold in Argentina. During his career at Barrick, he held the roles of senior exploration geologist, project geologist, country manager of geology, senior project manager, as well as time in the Toronto corporate head office working with the business development group on acquisitions and investor relations. Most recently, Mr. Mercado has been the exploration leader for Nevada Gold Mines, a joint venture between Barrick Gold and Newmont Mining, where he was responsible for all exploration activities within Nevada.

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. The company presently owns and operates the San Dimas silver/gold mine, the Jerritt Canyon gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine.

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