MAG SILVER ESTABLISHES SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS AND ADVISES SHAREHOLDERS OF CERTAIN FACTS

VANCOUVER, BRITISH COLUMBIA, Oct 15, 2008 (MARKET WIRE via COMTEX News Network) --

MAG Silver (TSX: MAG)(NYSE-A: MVG) ("MAG" or the "Company") has formed a Special Committee of the Board of Directors to look at strategic alternatives for the Company. This is in response to Fresnillo plc's acquisition of 9,746,193 of the issued and outstanding shares of the Company representing a 19.83% interest (see Table "A" below). Fresnillo is the Company's joint venture partner in, and operator of, MAG's core asset, 44% of the Minera Juanicipio Joint Venture.

The Committee has engaged Macquarie Capital Markets Canada Ltd. to act as its financial advisor and Davies Ward Phillips & Vineberg LLP to act as its legal advisor.

On August 3, 2007 the Company adopted a shareholders' rights plan to prevent creeping acquisitions of control and ensure that shareholders are treated fairly in a change of control situation. The rights plan will be triggered if Fresnillo acquires 20% or more of the Company's shares other than pursuant to an offer made to all of the Company's shareholders that otherwise complies with the permitted bid provisions of the rights plan. Please see MAG's Notice dated December 19, 2007 and the Company's Management Information Circular dated December 17, 2007 for more details on the Shareholder Rights Plan. Both are available at www.sedar.com.

In light of the recent purchases by Fresnillo of MAG shares the Company would like to draw attention to certain information that now appears increasingly relevant to MAG shareholders:

1) Drilling is ongoing at the Valdecanas Vein on the Juanicipio Property with 4 drill rigs, funded by MAG and Fresnillo. A number of holes completed have not been released at this time and assays are outstanding.

2) Fresnillo has reported extensions of the Valdecanas Vein east and west of the joint venture ground (August 19, 2008, Fresnillo six month report). A projection of the Valdecanas Vein further to the west suggests it may trend back onto joint venture ground. The joint holdings have not been extensively tested in the area of this projection.

3) Fresnillo completed an initial public offering in Europe in the Spring of 2008. In its prospectus for that offering, which was embargoed by Fresnillo from distribution in North American Jurisdictions (see the Fresnillo website), Fresnillo's qualified person reported resources for the Valdecanas Vein calculated as at December, 2007, (disclosed by MAG in compliance with Canadian Securities NI 43-101 in July, 2008). The Fresnillo qualified person then goes on to state that; "recent drilling results at Valdecanas has (sic) intersected significant gold and silver mineralization across substantial widths outside the present resource outline" and that "there is a strong likelihood that the current drilling programme will expand the size of the Valdecanas deposit".

4) Fresnillo has reported that it is preparing an updated resource calculation on Valdecanas which is due for publication in late 2008. However, MAG has not been privy to the geo-statistical model or ongoing work on this updated resource calculation.

5) In the Fresnillo prospectus, the Valdecanas Vein and the Juanicipio Property are included in what Fresnillo describes as the "Fresnillo II Project". The following are excerpts from that prospectus:

- "The Fresnillo Group has established plans for and has already made significant investment in the development of a further underground mine adjacent to the existing Fresnillo mine. Fresnillo II is planned to be of approximately equivalent size to the existing Fresnillo Mine".

- "The Saucito and Jarillias veins will be exploited first followed by the Valdecanas Vein.....The conceptual mine plan includes indicated and inferred resources and the resources include 100 % of the Valdecanas resources (of which Fresnillo owns 56%)". (i)

(i)(Fresnillo specifically noted that this is a conceptual plan only, being based on inferred resources).

6) Fresnillo has unilaterally initiated an excavation to the east of the Juanicipio Property boundary which appears to be headed directly toward the Valdecanas Vein on the Juanicipio Property.

The format and schedule for production and the conceptual mine plan described in Fresnillo's prospectus were not provided to, settled with, or approved by MAG. In fact, no development plans of any nature for the Valdecanas Vein have been the subject of a joint venture budget, bankable feasibility study or production decision as required by the shareholders agreement between MAG and Fresnillo. The shareholders agreement requires approval, by a 60% vote, of any major budget, any feasibility study and any production decision for the Juanicipio Property. MAG holds 44% of the voting shares of Minera Juanicipio S.A. de C.V., the joint venture company holding the Juanicipio Property.

MAG has been unsuccessful in establishing a date on which Fresnillo personnel will make themselves available for the initial board meeting of Minera Juanicipio S.A. de C.V. MAG will make every effort to have that meeting held and also to obtain, and then provide to its shareholders, all further information in possession of Fresnillo but not yet provided to MAG regarding or affecting the Juanicipio Property.

Table "A" - Summarized from Fresnillo plc's October 7, 2008 Schedule 13D filed with the U.S. Securities and Exchange Commission:

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MAG Shares      Price    Date            Purchaser
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   621,577      $0.97    Apr 21, 2005    Minas Penoles
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   245,716      $2.35    Feb 24, 2006    IPSA
------------------------------------------------------
   150,000      $8.10    Feb 13, 2007    Minas Penoles
------------------------------------------------------
   275,200     $14.35    Jul 23, 2007    Minas Penoles
------------------------------------------------------
   100,000     $12.00    Aug 27, 2007    Minas Penoles
------------------------------------------------------
   100,000     $14.35    Oct 16, 2007    Minas Penoles
------------------------------------------------------
   185,600     $14.10    Mar 07, 2008    Minas Penoles
------------------------------------------------------
   450,200      $4.82    Sep 18, 2008    Fresnillo
------------------------------------------------------
   105,300      $4.77    Sep 19, 2008    Fresnillo
------------------------------------------------------
 5,000,000      $5.31    Sep 22, 2008    Fresnillo
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 2,512,600      $5.00    Oct 7, 2008     Fresnillo
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 9,746,193
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