Mr. Keith Neumeyer reports

FIRST MAJESTIC REPORTS FIRST QUARTER FINANCIAL RESULTS AND QUARTERLY DIVIDEND PAYMENT

First Majestic Silver Corp. has released the unaudited interim consolidated financial results of the company for the first quarter ended March 31, 2023. 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 U.S. dollars unless stated otherwise.

First quarter 2023 highlights:

• Production of 7.6 million silver equivalent (AgEq) ounces, consisting of 2.5 million silver ounces and 60,594 gold ounces, up 1 per cent compared with the previous quarter and up 6 per cent compared with Q1 2022.
• Quarterly revenues totalled $157-million, up 6 per cent compared with the previous quarter and unchanged compared with Q1 2022.
• Operating cash flows before non-cash working capital and taxes totalled $21.9-million, compared with $35.3-million in Q1 2022.
• Consolidated cash costs were $15.16 per AgEq ounce and all-in sustaining costs (AISC) were $20.90 per AgEq ounce. Excluding Jerritt Canyon, cash costs for the three Mexican operations were $11.85 per AgEq ounce and AISC was $15.38 per AgEq ounce.
• Adjusted net earnings of $900,000 (adjusted EPS (earnings per share) of nil) after excluding non-cash and non-recurring items.
• At the end of the quarter, the company had a cash and restricted cash balance of $235.9-million consisting of $104.8-million of cash and cash equivalents and $131.1-million of restricted cash.
• Declared a cash dividend payment of 0.57 cent per common share for the first quarter of 2023 for shareholders of record as of the close of business on May 18, 2023, which will be distributed on or about June 9, 2023.

Q1 2023 financial results

The company realized an average silver price of $21.98 per AgEq ounce during the first quarter of 2023, representing an 18-per-cent decrease compared with the first quarter of 2022 and a 5-per-cent decrease compared with the prior quarter.

Revenues generated in the first quarter totalled $157-million compared with $156.8-million with the first quarter of 2022.

Cash flow from operations before movements in working capital and income taxes in the quarter was $21.9-million compared with $35.3-million in the first quarter of 2022.

The company reported mine operating earnings of ($6.4-million) compared with $15.1-million in the first quarter of 2022. The decrease in mine operating earnings is primarily attributed to lower-than-expected production at Jerritt Canyon resulting in higher production costs per ounce, as well as higher labour, inflation, consumables and energy costs during the quarter. The company also incurred $5.1-million in standby costs for winding down activities at Jerritt Canyon.

The company reported net earnings of ($100.7-million) (EPS of (37 cents)) compared with $7.3-million (EPS of three cents) in the first quarter of 2022. The company recognized an impairment charge of $125.2-million, or $94-million net of tax, on the Jerritt Canyon gold mine following the company's decision to the temporarily suspend mining operations and focus on exploration activities to strengthen reserves and resources at the mine.

Adjusted net earnings for the quarter, normalized for non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities and non-recurring writedowns on mineral inventory for the quarter were $900,000 (adjusted EPS of nil) compared with ($6.2-million) (adjusted EPS of (two cents)) in the first quarter of 2022.

Cash flow from operations before movements in working capital and income taxes in the quarter was $21.9-million compared with $35.3-million in the first quarter of 2022.

As of March 31, 2023, the company had a cash and restricted cash balance of $235.9-million consisting of $104.8-million of cash and cash equivalents and $131.1-million of restricted cash.

Operational highlights

The attached table represents the quarterly operating and cost parameters at each of the company's four producing mines during the quarter.

The company produced 7.6 million AgEq ounces consisting of 2.5 million ounces of silver and 60,594 ounces of gold. Total production increased 6 per cent when compared with the fourth quarter of 2022 primarily due to higher grades at both San Dimas and La Encantada.

Cash cost for the quarter was $15.16 per AgEq ounce, compared with $15.36 AgEq per ounce in the previous quarter. The decrease in cash costs per AgEq ounce was primarily attributable to an increase in production at San Dimas and La Encantada driven by a 10-per-cent increase of silver grades at both sites. This was partially offset by higher costs driven by a stronger Mexican peso and slightly lower production at Santa Elena primarily due to processing lower-grade silver and gold ores during the quarter. Excluding Jerritt Canyon, cash costs at the three Mexican operations were $11.85 per AgEq ounce.

AISC in the first quarter was $20.90 per AgEq ounce, compared with $20.69 per AgEq ounce in the previous quarter. The slight increase in AISC was primarily attributed to additional capital-sustaining expenditures for mine development at Santa Elena and Jerritt Canyon which were offset by lower cash costs. Excluding Jerritt Canyon, AISC at the three Mexican operations was $15.38 per AgEq ounce.

Total capital expenditures in the first quarter were $46.6-million, primarily consisting of $11.9-million at San Dimas, $13.5-million at Santa Elena, $1.9-million at La Encantada, $18.8-million at Jerritt Canyon and $500,000 for strategic projects.

Q1 2023 dividend announcement

The company is pleased to announce that its board of directors has declared a cash dividend payment in the amount of 0.57 cent per common share for the first quarter of 2023. The first quarter cash dividend will be paid to holders of record of First Majestic's common shares as of the close of business on May 18, 2023, and will be distributed on or about June 9, 2023.

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.

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 Santa Elena silver/gold mine, the La Encantada silver mine and the Jerritt Canyon gold mine.

We seek Safe Harbor.