Mr. Michael Curlook reports

MAG SILVER REPORTS SECOND QUARTER FINANCIAL RESULTS

Mag Silver Corp. has released the company's unaudited financial results for the three months ended June 30, 2023. For details of the unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2023, please see the company's filings on SEDAR+ or on EDGAR.

All amounts herein are reported in thousands of U.S. dollars unless otherwise specified.

Key highlights (on a 100-per-cent basis unless otherwise noted):

• Concentrate production at the high-grade Juanicipio mine commenced in first quarter 2023.
• Following the successful commissioning phase at Juanicipio, the processing facility has been operating at or above 85 per cent of its design capacity of 4,000 tonnes per day with silver recovery consistently above 88 per cent.
• On June 5, 2023, the company announced that the Juanicipio mine, processing facility and other vital systems were operating in line with, or rapidly approaching, design capacity, and therefore declared full commercial production, effective June 1, 2023. All major construction activities have been completed, and Juanicipio is demonstrating its ability to sustain continuing production levels.
• During second quarter 2023, as a result of the successful commissioning of the Juanicipio processing facility, processing of higher-grade material commenced with commensurate improvements in silver recovery and associated concentrate grades. Average head grade for Q2 2023 was 498 grams per tonne.
• After completion of the start-up phase, approximately 4.4 million ounces of silver were produced from the Juanicipio processing facility from March, 2023, to the end of June, 2023, and production is expected to continue to increase steadily through third quarter 2023, where it is envisioned the processing facility will be running at nameplate.
• Mag Silver was included in the NYSE Arca Gold Miners Index, which is tracked by the VanEck Vectors Gold Miners ETF (GDX), effective June 20, 2023.
• Mag Silver reported net income of $19,390 or 19 cents per share for the three months ended June 30, 2023 ($7,562 or eight cents per share for the three months ended June 30, 2022).

Operational (on a 100-per-cent basis unless otherwise noted):

• As reported by the operator, Fresnillo PLC, the Juanicipio operation remains on track to reach nameplate production in third quarter 2023. Excess mineralized material from Juanicipio continues to be processed through the nearby Saucito and Fresnillo beneficiation plants (100 per cent owned by Fresnillo) on an available capacity basis.
• For the three months ended June 30, 2023:
  • The company processed 377,718 tonnes of mineralized material through the Juanicipio, Fresnillo and Saucito plants, with 4,877,460 payable silver ounces, 9,537 payable gold ounces, 3,066 payable lead tonnes and 4,582 payable zinc tonnes sold.
  • Average silver head grade was 498 grams per tonne.
  • Revenue (net of treatment and processing costs) totalled $134,775, less $54,571 in production and transportation costs and $17,400 in depreciation and amortization charges, netting $62,804 in gross profit by Juanicipio.
• At the end of the quarter, Juanicipio held cash balances of $8,539, flat relative to the first quarter. Strong operating cash flows driven by higher milling rates, higher feed grade and stronger metal prices were offset by ramp-up of working capital requirements and continuing underground development expenditures.

Processing facility construction and outlook

Commissioning commenced in early January, 2023, with feed of lower-grade mineralized material to the grinding mills. Processing of higher-grade material commenced in April with commensurate improvements in silver recovery and associated concentrate grades. The Juanicipio processing facility has been operating at approximately 85 per cent of its nameplate of 4,000 tonnes per day with silver recovery consistently above 88 per cent. On June 5, 2023, the company announced that following a successful commissioning period, the Juanicipio mine, processing facility and other vital systems were operating in line with, or rapidly approaching, design capacity, and therefore declared full commercial production, effective June 1, 2023.

With the processing facility completed and commercial production declared on June 1, 2023, all major construction activities have been completed, and Juanicipio is demonstrating its ability to sustain continuing production levels. Additional financing requirements related to market conditions (that is, lower metal prices or higher inflation driving higher costs for instance) or for additional capital in excess of the operating cash flow generated may need to be financed by further cash calls required from Fresnillo and Mag Silver.

Qualified person

All scientific or technical information in this press release, including assay results referred to, and mineral resource estimates, if applicable, are based upon information prepared by or under the supervision of, or has been approved by Dr. Peter Megaw, PhD, CPG, a certified professional geologist who is a qualified person for purposes of National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Dr. Megaw is not independent as he is an officer and a paid consultant of Mag Silver.

About Mag Silver Corp.

Mag Silver is a growth-oriented Canadian exploration company focused on advancing high-grade, district-scale precious metal projects in the Americas. Mag Silver 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 Silver 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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