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First Majestic Announces US$30M Forward Sale Contract On Lead Production

NYSE - AGTSX – FR Frankfurt – FMV

VANCOUVER, April 15, 2014 /PRNewswire/ - First Majestic Silver Corp. ("First Majestic" or the "Company") (TSX - FR, NYSE - AG) is pleased to announce that it has entered into a US$30 million forward sale contract with Bank of America Merrill Lynch (BAML) on a portion of the Company's future lead production.  All amounts are in U.S. dollars unless stated otherwise.

The Company executed this forward sale contract for 15,911.3 metric tonnes (MT) of lead at a fixed price of $0.945 per pound ( $2,083/MT) for total proceeds of $30 million. The contract term is valid from April 2014 to September 2017, with a six-month repayment holiday from April to September 2014. The forward sale contract is financially settled from the sale of lead from any of First Majestic's operations and represents approximately 35% of the Company's total estimated future lead production over this period. The repayment terms carry an interest charge based on the one year LIBOR rate plus 350 basis points. The purpose of this prepayment contract is to fund the Company's continuing expansion plans and for general working capital.

This forward sale contract is in addition to the $50 million forward sale agreement announced in December 2012 for a portion of the Company's lead and zinc production to be delivered into by July 2016. The previous forward sale agreement was executed for 12,157.6 MT of lead at $1.01/lb ( $2,236/MT) and 13,175.8 MT of zinc at $0.96/lb ( $2,116/MT). To date, 2,076.4 MT of lead and 2,173.9 MT of zinc have been delivered into this earlier contract. Following today's announcement, the Company is committed to repay a remaining balance totalling 25,992.5 MT of lead (averaging $0.972/lb or $2,143/MT) and 11,001.9 MT of zinc. The Company is now hedged to the extent of 52% of its estimated lead production to September 2017 and remains 49% hedged on its estimated zinc production to July 2016.

Keith Neumeyer, President and CEO of First Majestic, comments: "We are pleased to have executed this contract with BAML which allows us to top up our treasury without diluting our shareholders.  We decided to exclude any future zinc production from this agreement as ongoing global supply issues could put upward pressure on the price of zinc in the coming years.  Furthermore, we remain committed to offering investors full leverage on our future silver production as we have no intentions of ever hedging silver."

First Majestic is a mining company 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.

FIRST MAJESTIC SILVER CORP.

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