Mr. Keith Neumeyer reports

FIRST MAJESTIC ANNOUNCES FINANCIAL RESULTS FOR Q4 2020, FY2020 AND APPOINTMENT OF NEW DIRECTOR

First Majestic Silver Corp. has released the consolidated financial results for the company's fourth quarter and year ended Dec. 31, 2020. The full version of the financial statements and management's discussion and analysis can be viewed on the company's website, on SEDAR and on EDGAR. All amounts are in U.S. dollars unless stated otherwise.

2020 highlights:

• Generated robust revenues of $363.9-million primarily due to strong silver production and higher metal prices in the second half of 2020, which helped to offset reduced revenues in Q2 2020 due to Mexico's national COVID-19 shutdown;
• Mine operating earnings of $105.1-million primarily due to higher silver and gold prices, as well as shifting a greater portion of production to its larger and lower-cost operations;
• Operating cash flows before working capital and taxes of $107.3-million or 50 cents per share;
• Net earnings of $23.1-million, or basic earnings per share (EPS) of 11 cents, representing a 157-per-cent increase compared with 2019;
• Adjusted net earnings of $37.4-million, or 18 cents per share, after excluding non-cash or unusual items;
• Cash costs of $5.09 per payable silver ounce, representing a 1-per-cent decrease compared with 2019 and slightly above the revised guidance range of $3.95 to $4.59 per ounce primarily due to lower-than-expected gold byproduct credits at Santa Elena and San Dimas in the second half of 2020;
• All-in sustaining costs (AISC) of $13.92 per payable silver ounce, representing a 10-per-cent increase compared with 2019 and slightly above the revised guidance range of $12.29 to $13.45 per ounce;
• Realized an average silver price of $21.15 per payable silver ounce, representing a 29-per-cent increase compared with 2019;
• Ended 2020 with record cash and cash equivalents of $238.6-million, up from $169.0-million at the end of 2019.

Q4 2020 highlights:

• Revenues totalled $117.1-million, representing a 21-per-cent increase compared with Q4 2019;
• Mine operating earnings of $43.7-million, representing an 82-per-cent increase compared with $23.9-million in Q4 2019;
• Operating cash flows before working capital and taxes of $48.2-million, or 22 cents per share (non-generally accepted accounting principle);
• Net earnings of $34.5-million, or EPS of 16 cents;
• Adjusted net earnings $24.2-million, or 11 cents per share, after excluding non-cash or unusual items;
• Cash costs of $6.53 per payable silver ounce, representing a 75-per-cent increase compared with Q4 2019;
• AISC of $15.92 per payable silver ounce, representing a 30-per-cent increase compared with Q4 2019;
• Realized an average silver price of $24.88 per payable silver ounce, representing a 43-per-cent increase compared with Q4 2019.

Chief executive officer comments

"First Majestic finished 2020 with strong silver production and solid financial results despite the early challenges related to the COVID-19 global pandemic," stated Keith Neumeyer, president and CEO of First Majestic. "We generated 87 per cent of our $105.1-million in operating earnings in the second half of 2020 primarily due to higher silver production and an improved metal price environment. This significant increase in profitability helped to lift our cash balance to a record $238.6-million at the end of the year. We also announced our inaugural dividend policy at the end of 2020, which was a major milestone and something I am particularly proud of, as this has been a long-term objective of the company. Looking ahead, we continue to expect higher prices as silver supplies tighten due to increases in investor demand and the longer-term global transition to greener energy and electric vehicle solutions."

                                  ANNUAL AND FOURTH QUARTER HIGHLIGHTS 
 
Key performance metrics                              Q4 2020        Q4 2019           2020           2019

Operational
Ore processed/tonnes milled                          625,332        626,482      2,213,954      2,831,999
Silver ounces produced                             3,452,959      3,348,424     11,598,380     13,241,118
Silver equivalent ounces produced                  5,477,492      6,233,412     20,379,010     25,554,288
Cash costs per ounce (1)                               $6.53          $3.73          $5.09          $5.16
All-in sustaining cost per ounce (1)                  $15.92         $12.25         $13.92         $12.64
Total production cost per tonne (1)                   $85.68         $78.62         $79.59         $75.05
Average realized silver price per ounce (1)           $24.88         $17.46         $21.15         $16.40

Financial (in $ millions)
Revenues                                              $117.1          $96.5         $363.9         $363.9
Mine operating earnings (loss)                         $43.7          $23.9         $105.1          $66.2
Net earnings (loss)                                    $34.5         ($39.9)         $23.1         ($40.5)
Operating cash flows before movements
in working capital and taxes                           $48.2          $32.9         $107.3         $108.9
Cash and cash equivalents                             $238.6         $169.0         $238.6         $169.0
Working capital (1)                                   $254.4         $171.1         $254.4         $171.1
Shareholders
Earnings (loss) per share (EPS) -- basic               $0.16         ($0.19)         $0.11         ($0.20)
Adjusted EPS (1)                                       $0.11          $0.00          $0.18          $0.04
Cash flow per share (1)                                $0.22          $0.16          $0.50          $0.54

(1) The company reports non-generally accepted accounting principle measures, which include cash costs per ounce 
produced, all-in sustaining cost per ounce, total production cost per tonne, average realized silver price per 
ounce sold, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods 
used by other companies with similar descriptions.

2020 financial results

Full-year revenues totalled $363.9-million as higher silver and gold prices were offset by reduced production rates due to Mexico's national COVID-19 suspensions and reduced worker availability. The average realized silver price increased 29 per cent to $21.15 per ounce during the year compared with $16.40 in 2019. However, strong silver production from La Encantada and San Dimas in the second half of 2020 helped to also offset some of the production losses resulting from the COVID-19 shutdowns in the second quarter of 2020. At the end of 2020, approximately 9 per cent of the company's work force at its three operating mines remained vulnerable under Mexico's national decree, an improvement from 18 per cent at the end of the second quarter.

Annual mine operating earnings totalled $105.1-million compared with $66.2-million in 2019. The increase in mine operating earnings was primarily driven by higher silver and gold prices, as well as shifting a greater proportion of the company's production to its larger and lower-cost operations.

Cash flows before movements in working capital and taxes during the year were $107.3-million (50 cents per share) compared with $108.9-million (54 cents per share) in 2019.

Adjusted EPS (non-GAAP), normalized for non-cash or unusual items such as impairment of non-current assets, share-based payments and deferred income taxes for the year ended Dec. 31, 2020, was 18 cents compared with four cents in 2019.

The company ended 2020 with $238.6-million in cash and cash equivalents compared with $169.0-million at the end of 2019. In addition, the company ended the year with working capital of $254.4-million compared with $171.1-million at the end of 2019. The increase in cash and cash equivalents was primarily attributed to $79.7-million generated from its operating activities, $126.1-million raised through prospectus offerings and its at-the-market-distribution equity financing program, and proceeds of $14.0-million from exercise of stock options, net of $127.1-million spent on investing activities primarily relating to mining interests, and property, plant and equipment.

                                FULL-YEAR 2020 OPERATIONAL RESULTS
 
Annual production summary                    San Dimas        Santa Elena       La Encantada       Consolidated

Ore processed/tonnes milled                    713,064            640,276            860,613          2,213,954
Silver ounces produced                       6,399,667          1,692,761          3,505,953         11,598,380
Gold ounces produced                            71,598             28,242                241            100,081
Silver equivalent ounces produced           12,670,526          4,181,708          3,526,776         20,379,010
Cash costs per ounce*                            $2.04              $5.81             $10.27              $5.09
All-in sustaining cost per ounce*                $8.75             $12.78             $12.43             $13.92
Total production cost per tonne                $127.91             $78.44             $40.37             $79.59

* Cash cost per ounce and all-in sustaining cost per ounce are calculated on 
a per payable silver ounce basis.
 

Total silver production reached 11.6 million ounces, achieving the top end of the company's guidance of 11.0 million to 11.7 million silver. Strong silver production from La Encantada and San Dimas in the second half of 2020 helped to offset some of the production losses during the Mexican national COVID-19 shutdowns in the second quarter of 2020. Total gold production reached 100,081 ounces slightly below the company's guidance range of producing between 106,000 and 112,000 ounces. The slight miss was primarily due to lower production rates at Santa Elena and lower gold grades at San Dimas in the second half of 2020. The La Encantada mine achieved its highest annual silver production since 2014 with 3.5 million ounces of silver produced during the year, representing a 14-per-cent increase from the prior year and beating the company's revised production guidance of 3.1 million to 3.3 million silver ounces.

Cash cost per ounce in the year was $5.09, a slight decrease compared with the previous year. The decrease in cash cost was primarily due to cost savings from the suspension of higher-cost mines in 2019 and a 12-per-cent-weaker Mexican peso, partially offset by lower byproduct credits and decrease in production attributed to the COVID-19 suspensions, as well as higher mining contractor costs and COVID-19-related costs.

AISC per ounce in 2020 was $13.92, compared with $12.64 in the previous year. The increase in AISC per ounce was primarily attributed to an increase in fixed overhead costs, such as general and administration expenses and annual worker participation benefits, being divided by 12-per-cent-less silver ounces produced due to the required COVID-19 suspensions.

The company's total capital expenditures in 2020 were $125.0-million consisting of $31.7-million for underground development, $43.6-million in exploration, $28.5-million in property, plant and equipment, and $21.2-million in innovation projects. Total investments in 2020, on a mine-by-mine basis, primarily consisted of $43.8-million at San Dimas, $33.7-million at Santa Elena (including $14.6-million for the Ermitano project), $10.7-million at La Encantada, $2.8-million at La Parrilla, $1.2-million at Del Toro and $300,000 at San Martin.

Q4 2020 financial results

Revenues generated in the fourth quarter of 2020 totalled $117.1-million, representing a 21-per-cent increase compared with the fourth quarter of 2019, primarily due to a 43-per-cent increase in average realized silver price compared with the same quarter of the prior year, plus a 13-per-cent decrease in silver equivalent ounces sold compared with the same quarter of 2019.

Mine operating earnings were $43.7-million, representing an 82-per-cent increase compared with the fourth quarter of 2019. The increase in mine operating earnings in the quarter was primarily attributed to higher metal prices.

The company recorded net earnings of $34.5-million (EPS of 16 cents) compared with net loss of $39.9-million (EPS of (19 cents)) in the fourth quarter of 2019. The increase in net earnings was primarily attributed to a $52.4-million after-tax impairment loss taken in the fourth quarter of the prior year.

Cash flows before movements in working capital and income taxes were $48.2-million (22 cents per share), compared with $32.9-million (16 cents per share) in the fourth quarter of 2019.

Adjusted net earnings for the fourth quarter were $24.2-million (adjusted EPS of 11 cents) compared with adjusted net earnings of $300,000 (adjusted EPS of nil) in the fourth quarter of 2019, after excluding non-cash or non-recurring items.

Q4 2020 operational results

Total production in the fourth quarter of 2020 reached 5.5 million silver equivalent ounces, consisting of 3.5 million ounces of silver and 26,343 ounces of gold. Quarterly silver and gold production increased 9 per cent and 2 per cent, respectively, compared with the prior quarter.

Cash cost per ounce for the quarter was $6.53 per payable silver ounce, compared with $2.49 per ounce in the previous quarter. The increase in cash cost was primarily due to higher gold byproduct credits realized in the third quarter attributed to inventory that rolled over from the second quarter, which contributed an additional $7.4-million or $2.34 per ounce in byproduct credits in the previous quarter, a 6-per-cent-stronger Mexican peso against the U.S. dollar compared with the previous quarter, as well as higher COVID-19-related expenses.

AISC per ounce in the fourth quarter was $15.92 per ounce compared with $9.94 per ounce in the previous quarter. The increase in AISC per ounce was primarily attributed to increase in cash cost per ounce, higher sustaining development and capital expenditure activities as the mines ramp up operations after the COVID-19 suspensions.

Capital expenditures in the fourth quarter were $43.7-million, an increase of 24 per cent compared with the prior quarter, primarily consisting of $14.1-million at San Dimas, $13.8-million at Santa Elena (including $6.6-million for the Ermitano project), $3.6-million at La Encantada, $900,000 at La Parrilla, $400,000 at Del Toro and $11.0-million for innovation projects.

Election of director

The board of directors has appointed Thomas Fudge as a director of the company, effective Feb. 17, 2021.

Mr. Fudge brings over 42 years of professional mining experience, having previously worked with companies, including Tahoe Resources, Alexco Resources, Hecla Mining and Sunshine Precious Metals. Mr. Fudge holds a bachelor of science degree in mining engineering from Michigan Technological University, and has overseen numerous major mining construction projects in the United States, Mexico, Venezuela, Yukon territory, Guatemala and Peru.

"On behalf of the board of directors, I am pleased to welcome Thomas to the First Majestic team," said Mr. Neumeyer. "Thomas's wealth of mining and construction experience will make him a valuable contributor to the board as we work towards our goal of becoming a 30-million-ounce producer."

Inaugural dividend policy

As previously announced on Dec. 7, 2020, the board of directors had adopted a dividend policy under which the company intends to pay quarterly dividends of 1 per cent of net revenues commencing after the completion of the first quarter of 2021. The initial quarterly payment for the first quarter of 2021 is expected to be paid in May. In accordance with the rules of the Toronto Stock Exchange, the company will issue a press release at the time each quarterly dividend is declared. This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

About First Majestic Silver Corp.

First Majestic is a publicly traded mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The company currently owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine. Production from these mines is projected to be between 12.5 million and 13.9 million silver ounces or 20.6 million and 22.9 million silver equivalent ounces in 2021.

We seek Safe Harbor.