Mr. Keith Neumeyer reports

FIRST MAJESTIC ANNOUNCES FINANCIAL RESULTS FOR Q4 2023, FY2023, QUARTERLY DIVIDEND PAYMENT AND DEFERRAL OF SILVER SALES

First Majestic Silver Corp. has released its consolidated financial results of the company for the fourth quarter and year ended Dec. 31, 2023. The full version of the audited annual financial statements and the management's discussion and analysis can be viewed on the company's website or on SEDAR+ and on EDGAR. All amounts are in United States dollars unless stated otherwise.

2023 highlights

• Production of 26.9 million silver equivalent (AgEq) ounces, consisting of 10.3 million silver ounces and 198,921 gold ounces;
• Annual revenues of $573.8-million, compared with $624.2-million in 2022;
• Strong operating cash flows before working capital and taxes of $99.2-million, compared with $109.4-million in 2022;
• Consolidated cash cost was $14.49 per AgEq ounce and all-in sustaining cost (AISC) was $20.16 per AgEq ounce;
• Adjusted net earnings of $(23.8)-million, or (eight cents) per share, after excluding non-cash or unusual items;
• Realized an average silver price of $23.29 per payable AgEq ounce, representing a 4-per-cent increase compared with 2022;
• The company held 300,000 silver bullion ounces in finished goods inventory as at Dec. 31, 2023, that has been dedicated to build an initial inventory balance for the company's minting facility, First Mint LLC. The fair value of this inventory at Dec. 31, 2023, was $7.1-million;
• The company paid $5.9-million in dividends to shareholders in 2023;
• At the end of the year, the company had a cash and restricted cash balance of $251.2-million consisting of $125.6-million cash and cash equivalents and $125.6-million of restricted cash. The company also ended the year with a strong liquidity position of $313.6-million consisting of $188.9-million in working capital and $124.6-million of available, undrawn revolving credit facility.

Fourth quarter highlights

• Production of 6.6 million AgEq ounces, consisting of 2.6 million silver ounces and 46,585 gold ounces, a 6-per-cent increase compared with the previous quarter;
• Increased quarterly revenues to $136.9-million, compared with $133.2-million in the previous quarter;
• Improved mine operating earnings to $17.9-million, compared with $13.0-million in the previous quarter;
• Strengthened operating cash flows before movements in working capital and taxes to $36.3-million, compared with $14.1-million in the previous quarter;
• Consolidated cash cost improved to $13.01 per AgEq ounce and AISC decreased to $18.50 per AgEq ounce representing an improvement of 8 per cent and 6 per cent, respectively, compared with the previous quarter;
• Adjusted net earnings of $(8.3)-million (adjusted EPS (earnings per share) of (three cents)) after excluding non-cash and non-recurring items;
• Declared a cash dividend payment of 0.48 cent per common share for the fourth quarter of 2023 for shareholders of record as of the close of business on March 14, 2024, to be paid out on or about, March 28, 2024.

2023 financial results

The company generated annual revenues totalling $573.8-million in 2023, or 8 per cent lower compared with 2022, primarily due to the temporary suspension of mining activities at Jerritt Canyon in March, 2023. As a result, the company realized a 10-per-cent decrease in the total number of payable AgEq ounces sold, which was partially offset by an increase in payable AgEq ounces produced at Santa Elena, combined with a 4-per-cent increase in the average realized silver price.

Annual mine operating earnings increased to $25.6-million compared with $16.8-million in 2022. The improvement in mine operating earnings was primarily driven by a decrease in operating losses at Jerritt Canyon, following the temporary suspension of mining activities. The company also saw a 19-per-cent increase in operating earnings at Santa Elena compared with the prior year, attributable to stronger metal recoveries and grades from Ermitano, which achieved a new annual production record. Also, cost-saving measures implemented by the company helped offset the strengthening of the Mexican peso and combat inflationary impacts.

Cash flows before movements in working capital and taxes during the year were $99.2-million compared with $109.4-million in the prior year, representing a 9-per-cent decrease.

The company reported a net loss of $135.1-million (EPS of (48 cents)) compared with $114.3-million (EPS of (43 cents)) in 2022. Net loss was primarily attributable to an impairment charge of $125.2-million recorded on the Jerritt Canyon mine due to the temporary suspension of mining operations announced on March 20, 2023. Additionally, the company incurred one-time costs including: $13.4-million for standby costs at Jerritt Canyon, a $7.2-million non-cash charge related to the sale of La Parrilla, and $6.9-million in severance and restructuring costs incurred to focus on optimizing the work force across the company.

Adjusted net earnings for the year, normalized for non-cash or non-recurring items such as impairment charges, tax settlements, share-based payments, unrealized losses on marketable securities and non-recurring writedowns on mineral inventory was $(23.8)-million, or (eight cents) per share, compared with $(55.4)-million, or (21 cents) per share in 2022.

The company ended 2023 with a strong treasury of $251.2-million, consisting of $125.6-million in cash and cash equivalents as well as restricted cash of $125.6-million. The company also ended the year with working capital of $188.9-million.

Silver production in 2023 reached 10.3 million ounces, compared with the company's revised guidance range of 10.5 million to 11.2 million silver ounces, primarily due to lower silver production in H2 at La Encantada. Gold production reached 198,921 ounces which was aligned to the higher end of the company's revised guidance range of between 190,000 to 201,000 ounces.

Cash cost per AgEq ounce in the year was $14.49 compared with $14.39 in 2022. The marginal increase in cost per ounce was primarily due to the strengthening of the Mexican peso, inflation and lower AgEq production at La Encantada. This was partially offset by increased AgEq production at Santa Elena, which set a new annual record combined with cost-saving programs implemented across the company.

AISC per AgEq ounce in 2023 was $20.16, compared with $19.74 in the previous year. The increase in AISC per ounce was primarily due to higher cash costs.

The company's total capital expenditures in 2023 was $141.0-million consisting of $71.7-million for underground development, $32.2-million in exploration, and $37.1-million in property, plant and equipment. Total investments in 2023, on a mine-by-mine basis, primarily consisted of $49.7-million at San Dimas, $49.1-million at Santa Elena, $8.6-million at La Encantada, $28.1-million at Jerritt Canyon and $5.5-million for other strategic projects.

Fourth quarter financial results

Revenues generated during the quarter totalled $136.9-million, representing a 3-per-cent increase compared with the third quarter of 2023, primarily attributable to record quarterly production at Santa Elena.

The company realized an average price of $24.16 per AgEq ounce during the fourth quarter, representing an 8-per-cent increase compared with the third quarter of 2023.

Operating cash flows before movements in working capital and taxes in the quarter increased to $36.3-million compared with $14.1-million in the third quarter of 2023.

The company reported mine operating earnings of $17.9-million during the quarter compared with $13.0-million in the third quarter of 2023. The increase in mine operating earnings is primarily attributable to an increase in operating earnings at Santa Elena of $8.0-million, representing a 41-per-cent increase compared with the third quarter.

Net earnings for the quarter amounted to $10.2-million (EPS of four cents) compared with $(27.1)-million (EPS of (nine cents)) in the third quarter of 2023. Adjusted net earnings, 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 was $(8.3)-million (adjusted EPS of (three cents)) compared with $(10.9)-million (adjusted EPS of (four cents)) in the third quarter of 2023.

Operational highlights

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

Total production in the fourth quarter was 6.6 million AgEq ounces consisting of 2.6 million ounces of silver and 46,585 ounces of gold, representing a 6-per-cent increase and marginal decrease, respectively, compared with the previous quarter, due to higher tonnes, grades and recoveries at Santa Elena.

Cash cost for the quarter continued to improve, reaching $13.01 per AgEq ounce, compared with $14.13 per AgEq ounce in the previous quarter. The reduction in cash costs per ounce was primarily attributable to an increase in AgEq production at the Santa Elena operations. Production at Santa Elena increased by 67 per cent, compared with the prior quarter, as a direct result of processing higher grade silver and gold ore from the Ermitano underground mine. Record recoveries were also achieved due to the recent addition of the dual-circuit plant. Additionally, the company has implemented numerous cost-saving measures to help offset the strengthening of the Mexican peso and to combat inflationary impacts primarily in energy, reagents and other major consumables.

AISC in the fourth quarter was $18.50 per AgEq ounce compared with $19.74 per AgEq ounce in the previous quarter. The 6-per-cent improvement in AISC was primarily attributable to lower cash costs along with a reduction in general and administrative costs as the company has reduced its headcount across various corporate and operational departments.

Total capital expenditures in the fourth quarter were $31.6-million, primarily consisting of $13.8-million at San Dimas, $9.8-million at Santa Elena, $3.1-million at La Encantada, $2.5-million at Jerritt Canyon and $2.3-million for strategic projects.

Q4 2023 dividend announcement

The company is pleased to announce that its board of directors has declared a cash dividend payment in the amount of 0.48 cent per common share for the fourth quarter of 2023. 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 14, 2024, and will be paid out on or about March 28, 2024.

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 number of the company's common shares outstanding 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.

The company also announces that effective Feb. 20, 2024, Ana Lopez has resigned as a director of the company. Management would like to thank Ms. Lopez for her contributions and wishes her all the best in her future endeavours.

Renews ATM program

The company announces it has entered into an equity distribution agreement with BMO Capital Markets and TD Securities pursuant to which the company may, at its discretion and from time to time until Sept. 3, 2025, sell, through the agents, such number of common shares of the company as would result in aggregate gross proceeds to the company of up to $150.0-million (U.S.). The sales agreement replaces the previous equity distribution agreement entered into between the company and the agents on Feb. 23, 2023, which terminated in accordance with its terms on June 18, 2023. Sales of common shares will be made through at-the-market distributions as defined in the Canadian Securities Administrators' National Instrument 44-102 -- Shelf Distributions, including sales made directly on the New York Stock Exchange (the NYSE), or any other recognized marketplace upon which the common shares are listed or quoted or where the common shares are traded in the United States. The sales, if any, of common shares made under the sales agreement will be made by means of ordinary brokers' transactions on the NYSE at market prices, or as otherwise agreed upon by the company and the agents. No offers or sales of common shares will be made in Canada on the Toronto Stock Exchange (the TSX) or other trading markets in Canada.

The offering will be made by way of a prospectus supplement to the base prospectus included in the company's existing United States registration statement on Form F-10 and Canadian short form base shelf prospectus dated Aug. 3, 2023. The prospectus supplement relating to the offering has been filed with the securities commissions in each of the provinces of Canada (other than Quebec) and the United States Securities and Exchange Commission (the SEC). The U.S. prospectus supplement (together with the related base prospectus) will be available on the SEC's website and the Canadian prospectus supplement (together with the related base shelf prospectus) will be available on the SEDAR+ website maintained by the Canadian Securities Administrators at SEDAR+. Alternatively, the agents will provide copies of the U.S. prospectus and U.S. prospectus supplement upon request by contacting BMO Capital Markets (c/o BMO Capital Markets Corp., attention: Equity Capital Markets Desk, 151 W 42nd St., 32nd floor, New York, N.Y., 10036, or by e-mail: bmoprospectus@bmo.com).

The company expects to use the net proceeds of the offering, if any, together with the company's current cash resources, to develop and/or improve the company's existing mines and to add to the company's working capital.

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 and the La Encantada silver mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon gold project located in northeastern Nevada, U.S.

We seek Safe Harbor.