First Majestic Silver Corp and SilverCrest Mines have entered into a definitive agreement pursuant to which First Majestic has agreed to acquire all of the issued and outstanding common shares of SilverCrest. The benefits to first majestic shareholders are, the company states:

• Enhances First Majestic’s leading position in Mexico, one of the world’s most prolific silver and gold regions
• Accretive to First Majestic’s net asset value per share, reserves and total resources per share and production per share
• SilverCrest’s Santa Elena mine will be First Majestic’s sixth producing silver mine adding further growth potential to First Majestic’s portfolio of Mexican projects
• Strengthens First Majestic’s balance sheet by adding approximately C$30 million in cash and further enhances the working capital position
• Provides operational and production synergies with the potential for additional cost cutting
• Further diversifies production and cash flow across a robust portfolio of producing mines.

The benefits to Silvercrest shareholders are:

• Provides SilverCrest shareholders with a highly attractive premium to current market price
• Opportunity to participate in a leading silver producer through an all-share transaction
• Gain access to First Majestic’s operational and underground mining expertise
• Diversifies SilverCrest’s single asset risk profile and provides exposure to First Majestic’s broad portfolio of Mexican assets
• Increased leverage to silver with First Majestic’s primarily silver resource base
• Enhances capital markets presence with a pro forma market capitalisation in excess of C$700 million based on current share prices including increased analyst coverage, trading liquidity and a broader institutional investor base
• Provides ownership in New SilverCrest, a well-capitalised exploration company created to leverage SilverCrest management’s exploration expertise.

J. Scott Drever, CEO of SilverCrest, stated: “We believe the inclusion of SilverCrest’s Santa Elena mine into First Majestic’s portfolio of operating mines provides the combined company greater flexibility in the current difficult metals market and creates a strong platform from which First Majestic can continue its corporate growth to the benefit of both sets of shareholders. SilverCrest shareholders will benefit from First Majestic’s liquidity in the market place, the diversity provided by six mines and Management’s long history of successful operations in Mexico. First Majestic shareholders will benefit from SilverCrest’s strong balance sheet, free cash flow and low cost silver production. “SilverCrest’s flagship property is the 100%owned Santa Elena mine, located in the State of Sonora, Mexico. The operation comprises a high-grade, epithermal silver and gold deposit, along with a 3,000 t/d conventional milling facility. Santa Elena is projected to produce in a range of 4.7 to 5.1 Moz silver equivalent in 2015.

First Majestic is focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the company achieving its corporate growth objectives.

Keith Neumeyer, President & CEO of First Majestic, stated: “We believe this transaction provides an excellent opportunity for the shareholders of both First Majestic and SilverCrest. Shareholders stand to gain significant upside in the combined company with production of well over 20 Moz/y silver equivalent while maintaining one of the lowest production costs and highest purity to silver in the industry.”