First Majestic Produces a Record 2.44 Million Silver Equivalent Ounces in Third Quarter

FIRST MAJESTIC SILVER CORP.

Suite 1805 – 925 West Georgia Street Vancouver, B.C., Canada V6C 3L2 Telephone: (604) 688-3033 Fax: (604) 639-8873 Toll Free: 1-866-529-2807 Web site: www.firstmajestic.com; E-mail: [email protected]

NEWS RELEASE

TSX – FR October 10, 2012 NYSE - AG Frankfurt – FMV (WKN: A0LHKJ)

First Majestic Produces a Record 2.44 Million Silver Equivalent Ounces in Third Quarter

First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce that total production at its  four  operating  mines  in  Mexico  for  the  third  quarter  ending  September  30,  2012,  reached  2,438,085 equivalent ounces of silver, representing a 36% increase compared to the same quarter in 2011.  Total silver production for the quarter consisted of 2,205,237 ounces of silver, representing a 29% increase compared to the same quarter in 2011.  In addition, 3,307,944 pounds of lead and 844,953 pounds of zinc were produced representing increases of 75% and 100%, respectively, compared to the same quarter in the previous year. Also, 1,537 ounces of gold was produced, representing an increase of 276% compared to the third quarter of 2011.

Keith  Neumeyer,  CEO  and  President  of  First  Majestic,  states,  “I  would  like  to  congratulate  the  entire  First Majestic team for their efforts at reaching the milestone of producing over 2 million ounces of pure silver for the first time in the Company's history in a single quarter.  With the additional production from La Guitarra, total silver production grew well past the 2 million ounce mark.  Over the next several quarters as Del Toro begins to ramp up production and La Guitarra is further expanded, we can envision attaining the next major milestone of producing 3 million ounces of pure silver per quarter.”

Production Details Table:

Other Developments: 

Following the successful acquisition of Silvermex Resources Inc. (“Silvermex”) which closed on July 3, 2012, the Company immediately established full operating control of the La Guitarra Silver Mine located in the State of Mexico.   The Company’s current portfolio of four producing silver mines  now consists of the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine and the La Guitarra Silver Mine.

The total ore processed during the quarter at the Company's four operating silver mines amounted to 666,688 tonnes  milled,  representing  an  increase  of  8%  over  the  previous  quarter.  The  average  head  grade  in  the quarter for the four mines increased by 2% over the previous quarter to 167 g/t of silver. The combined silver recoveries increased from 59% in the second quarter to 62% in the third quarter of 2012.

There are currently 17 diamond drill rigs operating at the Company’s four operating mines and at the Del Toro Silver Mine. The Company completed 44,670 metres of diamond drilling in the quarter compared to 35,965 metres of diamond drilling in the second quarter 2012, representing a 24% increase over the prior quarter.  The expanded  exploration  program  consists  of  definition  drilling  to  define  Reserves  and  Resources  at  the Company's four operating mines, and to assist in mining activities at the Del Toro Silver Mine which is being prepared for production by the end of the year.  In addition, the current drilling program will be included in an updated NI 43‐101 Technical Report, as the Company’s objective is to complete new Technical Reports for each of the Company’s mines in 2013.

The Company's underground development in the third quarter consisted of 14,595 metres compared to 13,627 metres of development in the second quarter of 2012.

At the La Encantada Silver Mine: 

• In the third quarter, the processing mill averaged 4,625 tpd of blended ore throughput.  The three operating ball mills continue to process fresh mine ore at a rate of approximately 1,800 tpd with the remaining  balance  of  throughput  coming  from  reprocessed  tailings.    Silver  recoveries  and  grades continue to show positive operating improvements as a result of the increase in fresh ore from the mine.
• As previously disclosed, underground development is currently focused on areas within the mine that contain lower levels of manganese to assist in higher recovery rates.  The primary areas of focus have been the San Francisco vein and the Milagros Breccia pipe.  During the quarter these areas came into production and are further anticipated to contribute to an overall higher grade and higher recovery for the operation.
• Due  to  the  extensive  underground  exploration  program  underway,  a  new  high‐grade  breccia  pipe called  “990”  was  discovered  showing  silver  grades  in  the  range  of  400  g/t  to  500  g/t.   This  new discovery is currently being developed and will be in production late in the fourth quarter.
• Two underground diamond drill rigs are currently active at La Encantada.  A new NI 43‐101 Technical Report is expected to be released before the end of the second quarter of 2013.
• A total of 4,715 metres have been drilled in the third quarter compared to 5,451 metres of drilling in the second quarter of 2012.  In addition, a total of 3,328 metres of underground development was completed in the third quarter compared to 3,535 metres of development in the second quarter of 2012.

At the La Parrilla Silver Mine: 

• The  new  dual‐circuit  processing  mill  at  La  Parrilla  averaged  2,116  tpd  of  throughput  in  the  third quarter, representing a 4% increase from the prior quarter.
• The  new  tailing  filters  were  fully  operational  in  the  third  quarter  allowing  the  mill  to  operate  on approximately  80%  of  recycled  water.    Recycling  mill  waste  water  is  not  only  cost  efficient  and environmentally  friendly,  it  also  reduces  the  operational  risk  in  case  local  water  supplies  are threatened by natural disruptions such as severe droughts.  La Parrilla is now the second operation under control by First Majestic that utilizes this new environmentally friendly technology.
• An  aggressive  exploration  program  with  diamond  drilling,  both  underground  and  on  surface,  has indicated  the  continuation  of  the  Rosarios  vein  system  both  at  depth  and  along  strike  which  is connecting the San Marcos vein with the Rosarios vein system. This area is currently being developed at Level 9 to connect the San Marcos mine and the Rosarios mine. This connection is expected to be completed during the fourth quarter.
• Three  diamond  drill  rigs  are  currently  operating,  two  on  surface  and  one  underground.  The  total metres drilled during the third quarter amounted to 9,201 metres compared to 6,816 metres drilled in the  previous  quarter.  Development  completed  in  the  quarter  totaled  5,122  metres  compared  with 5,247 metres developed in the second quarter.
• As part of the current expansion program, an intensive underground development program and a new ramp system is under construction including a new production shaft of which a raise boring machine has now completed 480 metres of the pilot shaft.  In addition, 350 metres of development at Level 11 which will become the new underground rail system connecting the different underground areas to the shaft was completed during the quarter.  This investment is expected to improve logistics and the transportation of ore to the mill, ultimately reducing overall costs.
• Following  the  conclusion  of  a  regional  geophysics  program  in  the  second  quarter,  a  regional exploration drill program is being designed to target geological anomalies in far reaching areas within La  Parrilla’s  large  69,460  hectare  land  package.  This  program  is  expected  to  commence  during  the second  quarter  of  2013.    These  regional  anomalies,  never  explored  by  modern  techniques,  are expected to be included in a newly updated NI 43‐101 Technical Report expected to be released in early 2013.

At the San Martin Silver Mine: 

• The construction of two new large leaching tanks designed to replace some older and smaller leach tanks  remains  on  time  and  on  budget.  This  program  is  part  of  First  Majestic’s  regular  campaign  of improving operations by replacing older equipment with newer, cleaner and more efficient systems. Further  mill  improvements  are  scheduled  for  2013  and  will  include,  new  clarification  filters,  new tailings filters to recirculate water, and to improve environmental conditions.
• The early results of the exploration drilling program at the Rosarios/Huichola veins continue to return very  positive  results;  showing  further  definition  of  the  North/South  system  of  veins  that  were previously unknown.  Five drill rigs are currently active within the San Martin property.  The Company is planning to release an updated NI 43‐101 Technical Report prior to the end of 2012.
• Total metres drilled in the third quarter amounted to 9,405 metres compared to 12,066 metres drilled in the previous quarter.  In addition, 1,809 metres of development were completed in the third quarter of 2012 compared to 2,172 metres of development in the second quarter of 2012.

At the Del Toro Silver Mine: 

• Construction and development at the  Del Toro Silver Mine is well underway with initial  production expected to reach 1,000 tpd by year end, 2,000 tpd by the third quarter of 2013, and 4,000 tpd by mid‐ 2014.
• During the quarter, the Company received the final Environmental Impact Statement permit from the Mexican  government  (SEMARNAT)  approving  the  cyanidation  circuit  and  the  enlarged  processing facilities at the Del Toro Silver Mine.  This was the final permit needed to achieve the targeted mill capacity of 4,000 tpd by mid‐2014.
• Following  the  successful  platform  construction  and  foundation  pouring  in  the  first  half  of  the  year, mechanical installations continued in the quarter at the crushing, flotation and thickeners areas.  The construction  of  the  1,000  tpd  flotation  plant  is  75%  completed.    Initial  start‐up  of  operations  is estimated for the last week of November.
• Final testing of the sewage water treatment plant was completed during the third quarter. Once the mill construction is completed, First Majestic is looking forward to being able to recirculate the waste water from the  town of  Chalchihuites back  into a  collection facility for treating and reuse not only saving the environment but also conserving water in the region.
• Six drill rigs are active; three on surface and three underground. During the quarter, 36 holes were completed for a total of 11,365 metres.  Drilling continues in order to infill previous holes, and test for additional resources and to upgrade previously defined Measured and Indicated Resources.
• Underground development is continuing into the very prospective Perseverancia mine and the recently discovered San Nicolas chimney.  The Company released an updated NI 43‐101 Technical Report on August  21,  2012,  which  included  some  of  the  new  resources  discovered  in  this  area.    The  results revealed an increase in silver grade of the overall Measured and Indicated Resources by 20% to 175 g/t.
• Development  at  the  San  Juan  mine  for  preparation  for  the  upcoming  production  stage  continued during the quarter.  Ore continues to be extracted to surface from the San Juan mine.  During the quarter, a total of 22,365 tonnes have been mined at Level 9 adding to the mined ore from the second quarter bringing the total stockpile of ore on surface to 56,562 tonnes at quarter end. In addition, the new  pump  station,  new  powder  magazines  and  the  initial  work  of  a  new  underground  shop  are underway.  The total development at Del Toro for the third quarter was 3,150 metres in the three mines; San Juan, Perseverancia/San Nicolas and Dolores.

At the La Guitarra Silver Mine: 

• On July 3, 2012, the Company successfully completed the acquisition of Silvermex which resulted in the La Guitarra Silver Mine becoming the Company’s fourth producing silver mine.
• Following the acquisition, an aggressive exploration program was developed across multiple areas of interest  covered  by the 39,714 hectares of  mining claims within  the Temascaltepec mining District. The results of this exploration program are expected to be included in an updated NI 43‐101 Technical Report scheduled for release by the end of 2013.
• The Company plans to increase production levels from the current capacity of 350 tpd to 500 tpd at the beginning of 2013.  An underground development program is being implemented in order to meet the mines for a first ramp up.  It is expected that throughput during 2013 will be maintained at 500 tpd which will result in silver production at La Guitarra reaching approximately 1 million silver ounces for the year 2013.
• The concentrates being produced at La Guitarra through the old flotation circuit are currently being shipped to  the La Parrilla mill for leaching in  the cyanidation  process and are being  converted  into

silver doré bars which are reducing smelting and refining costs and expected to improve the overall economics of the La Guitarra Silver Mine.

• Permitting for a 1,000 tpd cyanidation processing facility will commence in the next few months with a planned commencement of construction in the third quarter of 2013. At 1,000 tpd throughput from cyanidation, production is anticipated to reach over 2 million ounces of silver doré production per year in 2014.

At the Rosario Silver Mine and other assets: 

• First Majestic is reviewing the exploration program for the adjacent Rosario and San Juan properties in the  Sinaloa  Mexico  mining  area.    This  exploration  program  is  being  planned  to  commence  in  early 2013.  The Company is also assessing its portfolio of other exploration properties to determine if these additional properties fit within the Company's production portfolio.

First Majestic is a silver producing company with operations focused in Mexico.  The Company is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and  the  pursuit  through  acquisition  of  additional  assets  that  contribute  to  achieving  its  corporate  growth objectives.

FOR FURTHER INFORMATION contact [email protected], visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

"signed"

Keith Neumeyer, President & CEO

Cautionary Note Regarding Forward Looking Statements

This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in First Majestic Silver Corp.'s Annual Information Form for the year ended December 31, 2011, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.