Mr. George Paspalas reports

JUANICIPIO ACHIEVES COMMERCIAL PRODUCTION

Commercial production has been achieved at the Juanicipio project (56 per cent/44 per cent Fresnillo PLC and Mag Silver Corp., respectively) effective June 1, 2023.

Following a successful commissioning period, the Juanicipio mine, processing facility and other vital systems are operating in line with, or rapidly approaching, design capacity. The Juanicipio mill is operating at approximately 85 per cent of its design capacity of 4,000 tonnes per day (tpd) with silver recovery consistently above 88 per cent. On a 100-per-cent basis, approximately 3.2 million ounces of silver have been produced from the Juanicipio processing facility from March, 2023, to the end of May, 2023, and production is expected to continue to increase steadily through Q3 where it is envisioned the plant will be running at design capacity. All major construction activities have now been completed and Juanicipio is demonstrating its ability to sustain continuing production levels. The operations team is continually seeking opportunities to improve and optimize the mine, plant and other critical systems to achieve and potentially exceed design capacities.

"Reaching this important milestone of commercial production at Juanicipio completes our transformation from developer to producer," said George Paspalas, president and chief executive officer of Mag Silver. "Today marks the beginning of a very exciting and dynamic growth phase for Mag as we combine stable, high-margin silver production with the ongoing high-grade exploration potential that has made and continues to make Mag so unique."

About Mag Silver Corp.

Mag Silver is a growth-oriented Canadian development and exploration company focused on becoming a top-tier primary silver mining company by exploring and advancing high-grade, district-scale, precious metals projects in the Americas. Its principal focus and asset is the 4,000-tonne-per-day Juanicipio project (44 per cent), operated by Fresnillo PLC (56 per cent). The project is located in the Fresnillo silver trend in Mexico, the world's premier silver mining camp, where, in addition to underground mine production and processing of mineralized material, an expanded exploration program is in place targeting multiple highly prospective targets. Mag is also executing multiphase exploration programs at the Deer Trail 100-per-cent earn-in project in Utah and the Larder Lake project, located in the historically prolific Abitibi region of Canada.

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