Vancouver, British Columbia--(Newsfile Corp. - April 18, 2022) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) ("First Majestic" or the "Company") announces that total production in the first quarter of 2022 from the Company's four producing operations, the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine, reached 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,892 ounces of gold. The Company's financial results for the first quarter of 2022 are scheduled to be released on Thursday, May 12, 2022.

FIRST QUARTER HIGHLIGHTS

Total Production Increased by 59% Y/Y: The Company produced 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,892 ounces of gold. Total production increased 59% when compared to the first quarter of 2021 primarily due to the acquisition of Jerritt Canyon. However, compared to a record breaking fourth quarter, production decreased by 16% due to high absenteeism related to an increase in COVID-19 cases in January and February which resulted in lower processed tonnes across all Mexican operating units.

Higher Production at Ermitaño: During the quarter, the Company processed 114,190 tonnes of ore from the Ermitaño mine at the Santa Elena processing plant, representing a 10% increase compared to the prior quarter. The higher volumes were the result of strong underground development rates as the mine continues its planned ramp up in 2022. The Company anticipates higher production rates as new production stopes are prepared and brought into production by year end.

Liquid Natural Gas ("LNG") Powerplant Expansion at Santa Elena: The Company began the construction of the LNG powerplant expansion project and powerline at Santa Elena to provide low-cost, clean energy to the Ermitaño mine. The Company is planning to install four additional LNG generators to increase its power generation capacity to approximately 24 MW from the current 14 MW. In addition, construction of the new powerline to connect the LNG plant to Ermitaño began during the quarter.

Awarded the 2022 Distinctive ESR in Mexico: The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic's San Dimas, Santa Elena and La Encantada mining units the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This annual award of distinction was accomplished after having demonstrated continued responsibility, transparency and sustainability at its operations in Mexico.

29 Exploration Drill Rigs Active: The Company completed a total of 75,224 metres of exploration drilling across the Company's mines during the quarter. Throughout the quarter, a total of 29 exploration drill rigs were active consisting of 11 rigs at San Dimas, 11 rigs at Jerritt Canyon, five rigs at Santa Elena and two rigs at La Encantada.

"Our new Ermitaño mine at Santa Elena has definitely become the highlight for the business in the past two quarters," said Keith Neumeyer, President and CEO. "Having just completed its first full quarter in production, we continue to anticipate additional growth at Ermitaño as the mine ramps up to higher throughput levels over the next few quarters. In addition, we are in the process of converting Ermitaño over to LNG power which is expected to reduce energy costs and lower emissions by the end of 2022. The Jerritt Canyon Gold mine, our latest acquisition, has been receiving a lot of attention over the past year which has shown steady improvements in mining, exploration and processing. Furthermore, many of these efforts are expected to begin showing positive results in the second half of 2022 as we bring two past producing underground areas, West Generator and Saval II, back into production."

PRODUCTION TABLE Q1 Q1 Y/Y Q4 Q/Q
2022 2021 Change 2021 Change
Ore processed/tonnes milled 877,118 614,245 43% 955,810 -8%
Silver ounces produced 2,613,328 2,908,024 -10% 3,358,809 -22%
Gold ounces produced 58,892 23,873 147% 67,411 -13%
Silver equivalent ounces produced 7,222,002 4,540,296 59% 8,561,023 -16%


QUARTERLY REVIEW

Total ore processed during the quarter at the Company's mines amounted to 877,118 tonnes, representing a decrease of 8% compared to the previous quarter. The decrease in tonnes processed was primarily due to higher-than-normal absenteeism in the months of January and February due to new variants of COVID-19 in Mexico. In March, staffing levels improved and production rates returned to budgeted operating rates across the Mexican operating units.

Consolidated silver and gold grades in the quarter averaged 109 g/t and 2.34 g/t, respectively, compared to 125 g/t and 2.42 g/t, respectively, in the previous quarter. The slight decrease in consolidated silver and gold grades were primarily due to lower grades at the La Encantada and San Dimas mines but partially offset by an 11% increase in gold grades at Santa Elena after processing higher volumes of ore from Ermitaño.

Consolidated silver and gold recoveries averaged 85% and 89%, respectively, during the quarter. The Company continued to advance the Santa Elena mill optimization project to facilitate finer grinding and improve metallurgical recoveries of Ermitaño's ore which averaged 52% for silver and 91% for gold in the first quarter. A new tailings filter-press, an additional leaching tank and a fourth CCD thickener is expected to be installed and commissioned at Santa Elena in the coming quarters ahead.

Quarterly Mine by Mine Production Table:

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