Mr. Keith Neumeyer reports

FIRST MAJESTIC ANNOUNCES FINANCIAL RESULTS FOR Q4 2021, FY2021 & QUARTERLY DIVIDEND PAYMENT; APPOINTS NEW CFO

First Majestic Silver Corp. has released the consolidated financial results for the company's fourth quarter and year ended Dec. 31, 2021. The full version of the financial statements and the management discussion and analysis can be viewed on the company's website, SEDAR and EDGAR. All amounts are in U.S. dollars unless stated otherwise.

Q4 2021 highlights:

• Quarterly revenues reached a new company record of $204.9-million, representing a 64-per-cent increase compared with Q3 2021;
• Recorded free cash flow of $66.4-million primarily due to the sale of 1.4-million ounces of silver held in inventory, higher gold production at Santa Elena due to the introduction of Ermitano ore to the Santa Elena processing plant in November and record quarterly production at San Dimas;
• Increased mine operating earnings to $40.4-million, compared with $3.5-million in Q3 2021;
• Increased operating cash flows before working capital and taxes to $71.8-million, compared with $22.6-million in Q3 2021;
• Net earnings of negative $4.0-million, or earnings per share (EPS) of (two cents);
• Adjusted net earnings of $4.1-million, or two cents per share, after excluding non-cash or unusual items;
• Cash costs of $12.32 per payable silver equivalent ounce, representing a 13-per-cent decrease compared with Q3 2021;
• All-in sustaining costs (AISC) of $17.26 per payable silver equivalent once, representing a 13-per-cent decrease compared with Q3 2021;
• Realized an average silver price of $24.18 per payable silver equivalent ounce, representing a 5-per-cent increase compared with Q3 2021;
• Ended the quarter with cash and cash equivalents of $237.9-million.

Two thousand twenty-one highlights:

• Generated record annual revenues of $584.1-million, representing a 61-per-cent increase from 2020, primarily due to the acquisition of the Jerritt Canyon gold mine on April 30, 2021, and a 19-per-cent increase in the realized average silver price;
• Mine operating earnings of $101.4-million representing a 3-per-cent decrease from the previous year due to higher costs at Jerritt Canyon, ramp-up costs at Santa Elena's Ermitano mine as well as a stronger Mexican peso against the U.S. dollar;
• Operating cash flows before working capital and taxes of $176.8-million;
• Net earnings of negative $4.9-million, or basic earnings per share of negative two cents;
• Adjusted net earnings of $6.0-million, or two cents per share, after excluding non-cash or unusual items;
• Cash costs of $13.23 per payable silver equivalent ounce representing a 47-per-cent increase compared with 2020 primarily due to higher costs at Jerritt Canyon and Santa Elena;
• All-in sustaining costs of $18.85 per payable silver equivalent ounce representing a 34-per-cent increase compared with the previous year due to higher cash costs, combined with an increase in sustaining costs related to the $10.4-million investment in the tailings storage lift project at Jerritt Canyon which was successfully completed in the fourth quarter of 2021;
• Realized an average silver price of $25.16 per payable silver equivalent ounce, representing a 19-per-cent increase compared with 2020.

Chief executive officer comments

"Strong production in the fourth quarter along with the sale of 1.4-million silver ounces from inventory generated record quarterly revenues, significant free cash flow and AISC reductions across most sites," stated Keith Neumeyer, president and CEO of First Majestic. "One of the most significant drivers to this quarters profitability was the start of initial production from the new Ermitano mine at Santa Elena which reduced Santa Elena's overall AISC by 34 per cent to $14.02 per silver equivalent ounce compared to the prior quarter. Furthermore, we anticipate this trend in cost reductions to continue as higher grades and throughputs are achieved at Ermitano throughout 2022 and 2023. In addition, as a result of the record revenues, our fourth quarter dividend was increased 61 per cent when compared with the prior quarter."

Two thousand twenty-one financial results

The company generated record revenues totalling $584.1-million in 2021 due primarily to the addition of the Jerritt Canyon gold mine during the second quarter, a 32-per-cent increase in payable silver equivalent ounces and a 19-per-cent increase in the average realized silver price per ounce which averaged $25.16 per ounce compared with $21.15 per ounce in 2020.

Annual mine operating earnings totalled $101.4-million compared with $105.1-million in 2020. The decrease in mine operating earnings was primarily driven by higher costs at Jerritt Canyon to prepare the mine for higher throughputs and improve plant performance along with increased costs at Santa Elena to prepare the Ermitano mine for production ramp-up in the fourth quarter of 2021 which was partially offset by an increase in revenue.

Cash flows before movements in working capital and taxes during the year was $176.8-million compared with $107.3-million in the prior year, a 65-per-cent increase.

Adjusted EPS (non-Generally Accepted Accounting Principles (GAAP)), normalized for non-cash or unusual items such as impairment of non-current assets, share-based payments and deferred income taxes for the year ended Dec. 31, 2021, was $6.0-million, or two cents per share compared with $37.4-million, or 18 cents per share in 2020.

The company ended 2021 with a strong treasury consisting of $237.9-million in cash and cash equivalents and a working capital position of $224.4-million.

Full year 2021 operational results

Total silver production reached 12.8-million ounces, slightly missing the lower end of the company's revised guidance range of 13.0 million to 13.8 million silver ounces. Total gold production reached 192,353 ounces and was within the higher end of the company's guidance range of producing between 181,000 to 194,000 ounces. This strong performance was primarily due to the processing of Ermitano ore at the Santa Elena plant and strong silver and gold grades at San Dimas in the fourth quarter.

Cash cost per silver equivalent ounce in the year was $13.23 compared with $9.00 in 2020. The increase in cash cost per ounce was primarily due to the addition of Jerritt Canyon which had been producing at a higher cash cost since the acquisition. Additionally, there were higher costs at Santa Elena as the Ermitano mine moved from capital investment into production in November, ahead of schedule.

AISC per silver equivalent ounce in 2021 was $18.84, compared with $14.03 in the previous year. The increase in AISC per was primarily attributed to higher cash costs, combined with an increase in sustaining capital costs related to the $10.4-million investment in the tailings storage lift project at Jerritt Canyon which was completed in the fourth quarter of 2021. The increase in AISC was partially offset by increased production at San Dimas, Santa Elena and Jerritt Canyon during the year.

The company's total capital expenditures in 2021 was $219.8-million consisting of $70.2-million for underground development, $69.1-million in exploration (includes $23.1-million in investments at Ermitano and $7.5-million related to the Springpole Silver Stream agreement), $56.8-million in property, plant and equipment, and $23.7-million in innovation projects. Total investments in 2021, on a mine-by-mine basis, primarily consisted of $56.4-million at San Dimas, $67.5-million at Santa Elena (including $37.3-million for the Ermitano project), $46.5-million at Jerritt Canyon, $11.4-million at La Encantada and $36.0-million for other strategic projects.

Q4 2021 financial results

Revenues generated in the fourth quarter of 2021 reached a new company record of $204.9-million, representing a 64-per-cent increase compared with the third quarter of 2021, primarily due to the processing of Ermitano ore through the Santa Elena plant and the sale of 1.4-million silver ounces of inventory previously withheld from the prior quarter.

The average realized silver price averaged $24.18 per ounce during the quarter, a 5-per-cent increase compared with $23.10 in the third quarter of 2021.

Mine operating earnings were $40.4-million, compared with $3.5-million in the third quarter of 2021. The increase was primarily attributed to the sale of the silver inventory withheld in the third quarter of 2021.

Operating cash flows before movements in working capital and income taxes were $71.8-million during the quarter compared with $22.6-million in the third quarter of 2021.

The company recorded net earnings of negative $4.0-million (EPS of negative two cents) compared with negative $18.4-million (EPS of negative seven cents) in the third quarter of 2021.

Adjusted net earnings for the fourth quarter was $4.1-million (adjusted EPS of two cents) compared with negative $18.1-million (adjusted EPS of negative seven cents) in the third quarter of 2021, after excluding non-cash or non-recurring items.

Q4 2021 operational results

Total production in the fourth quarter of 2021 reached a record 8.6-million silver equivalent ounces, consisting of 3.4-million ounces of silver and 67,411 ounces of gold. Quarterly silver and gold production increased 2 per cent and 24 per cent, respectively, compared with the prior quarter.

Cash cost per ounce for the quarter decreased 13 per cent to $12.32 per payable silver equivalent ounce when compared with the previous quarter. The decrease in cash cost per silver equivalent ounce was primarily due to an increase in production from San Dimas and Santa Elena.

AISC per ounce in the fourth quarter decreased 13 per cent to $17.26 per ounce when compared with the previous quarter. The decrease in AISC was primarily attributed to an increase in production at San Dimas and Santa Elena as well as lower sustaining capital expenditures in the fourth quarter as expenditures related to the tailings storage lift project at Jerritt Canyon have now been completed.

The company's total capital expenditures in the fourth quarter of 2021 were $56.8-million consisting of $17.6-million for underground development, $14.5-million in exploration (includes $6.1-million in investments at Ermitano), $23.1-million in property, plant and equipment, and $1.6-million in innovation projects. Total investments in the fourth quarter of 2021, on a mine-by-mine basis, primarily consisted of $12.2-million at San Dimas, $20.2-million at Santa Elena (including $13.0-million for the Ermitano project), $15.9-million at Jerritt Canyon, $3.0-million at La Encantada, and $5.3-million for other strategic projects.

Q4 2021 dividend announcement

The company is pleased to announce that its board of directors has declared a cash dividend payment in the amount of 0.79 cent per common share for the fourth quarter of 2021. The fourth quarter cash dividend will be paid to holders of record of First Majestic's common shares as of the close of business on March 21, 2022 and will be distributed on or about April 4, 2022.

Under the company's dividend policy, the quarterly dividend per common share is targeted to equal approximately 1 per cent of the company's net quarterly revenues divided by the company's then outstanding common shares on the record date.

The amount and distribution dates of future dividends remain at the discretion of the board of directors. This dividend qualifies as an eligible dividend for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.

Appointment of chief financial officer

The company is pleased to announce the appointment of David Soares, a seasoned senior mining executive with proven success in leading capital-intensive industrial organizations, as the new chief financial officer effective March 28, 2022.

Mr. Soares recently served as the chief financial officer of Kirkland Lake Gold, where he played a key role in leading the development and execution of a strategic plan transforming Kirkland from an intermediate to a senior gold producer. Over his career, Mr. Soares has worked with both base and precious metals companies including Xstrata/Glencore, Barrick Gold and Baffinland Iron Ore. Mr. Soares graduated with his bachelor of commerce and finance from the University of Toronto and completed his CPA through the Institute of Chartered Accountants of Ontario. Mr. Soares also holds his MBA through Richard Ivey School of Business at the University of Western Ontario.

"On behalf of First Majestic, I am pleased to welcome David to the executive team," stated Mr. Neumeyer, president and chief executive officer. "His knowledge and previous experiences will play an important role in the growth of the company, both internally and externally. I would like to thank Andrew Poon, vice-president of finance, for serving as the interim chief financial officer over the last three months."

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.

First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase on-line at its Bullion store at some of the lowest-possible premiums.

We seek Safe Harbor.