Mr. George Paspalas reports

MAG ANNOUNCES SECOND QUARTER PRODUCTION FROM JUANICIPIO

Mag Silver Corp. has provided production from Juanicipio (56 per cent/44 per cent Fresnillo PLC and Mag, respectively) for the second quarter (Q2) ended June 30, 2023. Q2 marked a transformational quarter for Juanicipio. Ramp-up of milling activities has been progressing to plan with Juanicipio declaring commercial production during the quarter and achieving increased production of all metals, with the most noteworthy being a 134-per-cent increase in silver production relative to the first quarter.

As reported to Mag by the project operator Fresnillo, 377,018 tonnes of mineralized material were processed through the Juanicipio, Saucito and Fresnillo plants during Q2 at an average silver head grade of 498 grams per tonne. Total production for Q2 based on provisional estimates before offtake agreement adjustments totalled 5,275,000 silver ounces, 10,639 gold ounces, 3,402 tonnes of lead and 5,418 tonnes of zinc. Mag expects to release its full financial and operational results on Aug. 7, 2023.

During the quarter, the Juanicipio mill ramped up to approximately 85 per cent of its design capacity of 4,000 tonnes per day (tpd) and production is expected to continue to increase steadily through Q3 when it is envisioned the plant will be running at design capacity. Q2 saw higher-grade mill feed being introduced to the Juanicipio comminution circuit with a corresponding improvement in silver recovery rates and concentrate grades.

"Q2 was a quarter of delivery. We are very encouraged with the steady progress of mining and milling performance at Juanicipio throughout the ramp-up period," said George Paspalas, Mag Silver's president and chief executive officer. "The substantial increase in silver production coupled with the forecast of reaching design capacity by Q3 affirms Mag's position as a top-tier silver producer. We remain deeply committed to a focus on robust cash flow generation and delivering a superior return on invested capital."

About Mag Silver Corp.

Mag Silver is a growth-oriented Canadian development and exploration company focused on advancing high-grade, district-scale precious metals projects in the Americas. Mag is emerging as a top-tier primary silver mining company through its (44-per-cent) joint venture interest in the 4,000-tonne-per-day Juanicipio mine, operated by Fresnillo (56 per cent). The mine 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 high-grade 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 100-per-cent-owned Larder project, located in the historically prolific Abitibi region of Canada.

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