First Majestic Silver issues overallotment warrants

2008-04-04 12:19 ET - News Release

Mr. Keith Neumeyer reports

FIRST MAJESTIC SILVER CORP.: EXERCISE AND CLOSING OF OVER-ALLOTMENT OPTION

First Majestic Silver Corp. issued today, April 4, 2008, 637,500 common share purchase warrants pursuant to the exercise by CIBC World Markets Inc., on behalf of a syndicate of underwriters that includes Blackmont Capital Inc., Cormark Securities Inc. and GMP Securities LP, of the overallotment option granted to the underwriters in connection with the public offering of 8.5 million units of First Majestic, which closed on March 25, 2008. The additional warrants were sold to the underwriters at an issue price of 56 cents per additional warrant. Each additional warrant entitles the holder to acquire one additional common share at a price of $7 until March 25, 2010. The gross proceeds to First Majestic from the exercise of the overallotment option were $357,000.

The company plans to use the net proceeds of the offering for mill expansion plans to increase the company's production capacities going forward, for continuing development and exploration programs presently under way, and for general working capital.

We seek Safe Harbor.