MAG SILVER REPORTS 2012 ANNUAL RESULTS AND PERSONNEL CHANGES

Vancouver, B.C. MAG Silver Corp. (TSX: MAG; NYSE MKT: MVG) (“MAG” or the “Company”)

announces the Company’s audited consolidated financial results for the year ended December 31, 2012. For complete details of the annual financial statements and related Management’s Discussion and Analysis, please see the Company’s filings on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov). All amounts herein are reported in United States dollars unless otherwise specified.

2012 FINANCIAL PERFORMANCE

At December 31, 2012, the Company had working capital of $40,492,095 (December 31, 2011: $25,779,667), including cash on hand of $40,621,158 (December 31, 2011: $26,217,409). The primary use of cash during the year ended December 31, 2012 was for exploration and evaluation expenditures in Mexico totaling $11,981,221 (December 31, 2011: $9,014,714). The Company also advanced to Minera Juanicipio, S.A. de C.V. (“Minera Juanicipio”) and expended on its own account a further $4,577,611 (December 31, 2011: $2,583,367) for work conducted on the Juanicipio property.

The Company’s net loss amounted to $12,109,761 (or $0.22 per share) for the year ended December 31, 2012 as compared to $8,250,743 (or $0.15 per share) in 2011. The increased net loss in 2012 is due to increased exploration and evaluation cost write-downs (Esperanza - $2,468,379 and a claim under the Lagartos properties - $896,099, compared to $531,515 in 2011 for the San Ramone property) and costs incurred in 2012 dealing and negotiating with a dissident group of MAG shareholders. The 2011 comparable loss was also reduced by the receipt of a $1.86 million arbitration award recognized as income in the prior year.

Shareholders may receive, upon request and free of charge, a hard copy of the Audited Financial Statements. The Company’s 40-F has also been filed with the United States Securities and Exchange Commission.

Juanicipio Project

An updated Preliminary Economic Assessment for the Juanicipio Project, commissioned by Minera Juanicipio and carried out by AMC Mining Consultants (Canada) Ltd. (the "AMC Study") was announced on June 14, 2012 and filed on SEDAR on July 16, 2012 (see press release dated June 14, 2012). With the completion of the AMC Study, MAG and Fresnillo Plc (“Fresnillo”) now have a framework on which the Minera Juanicipio Technical Committee can build upon for the continued advancement of the project. On August 15, 2012, the Company announced that Minera Juanicipio had approved an 18 month mine permitting and underground development budget of $25 million. The majority of this budget has been rolled over into 2013 and the early part of 2014 because of development permitting delays resulting from the Mexican government changeover late in 2012. The budgeted program covers mine permitting, surface preparation and the commencement of the first 2,500 metres of underground decline development.

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A hydrogeology (water management) study has been commenced. A geotechnical study has been completed with the assistance of Peñoles’ (a related party of Fresnillo) Geotechnical & Construction Group, which has included a visit to the nearby Fresnillo Saucito operation in order to analyze rock quality in anticipation of stope preparation and development at Juanicipio. As well, a division of Peñoles (CIDT) has been contracted to run the recommended metallurgical tests, with almost 254 kilograms of ore bearing material collected systematically along the deposit for metallurgical studies to be carried out. Originally expected in the first quarter of 2013, the operator Fresnillo now reports that it expects the underground decline ground breaking to commence in the second quarter of 2013. Five different contractors from North and South America have been asked to tender for the decline construction and a decision is pending.

Currently, there are a total of 11 drills operating on the property in various work categories from exploration to water studies with two more coming in for infill drilling at Valdecañas.

Cinco de Mayo

The Company incurred exploration and evaluation costs in 2012 of $8,329,879 (2011: $6,271,072) at Cinco de Mayo and drilled approximately 33,067 metres (2011: 25,716 metres). Overall, the 2012 drilling demonstrated that mineralization is continuous from the Jose Manto through the Bridge Zone to Cinco Ridge, which is now collectively referred to as the “Upper Manto.” In mid-June 2012, exploration hole CM12-431 drilled deep beneath the overlap zone between the Bridge Zone and the Jose Manto, cut four significant sulphide intervals within a 300 metre wide skarn and marble zone (see press release dated July 18, 2012). The largest and deepest interval was 61 metres of high-grade massive sulphides that lies behind (to the southwest of) the structures that host the Upper Manto mineralization. This is an entirely new mineralization zone named the “Pegaso Zone” which shows all of the hallmarks of being a near-source part of the Carbonate Replacement Deposit system that MAG has been systematically seeking at Cinco de Mayo.

On October 3, 2012, MAG announced that Roscoe Postle Associates Inc. had completed the first independent mineral resource estimate for the Upper Manto zone. Inferred Mineral Resources are estimated to be 12.45 million tonnes at 132 g/t (3.9 opt) silver, 0.24 g/t gold, 2.86% lead, and 6.47% zinc (9.33% lead plus zinc) (see press release dated October 3, 2012).

In the fourth quarter of 2012, the Company was in the process of renewing ordinary course surface access permissions with the Ejido Benito Juarez (the “Ejido”) as the final component in the application for its Soil Use Change Permits. However, on November 17, 2012 at what the Company believes was an illegally constituted meeting, the Ejido voted to expel MAG from its Cinco de Mayo property. Several Ejido members challenged the meeting on the grounds that proper notice was not given, key signatures required to properly call the meeting were fraudulent, and that the vote taken at the meeting was fraught with irregularities. A court hearing was held on February 6, 2013 in Chihuahua where the ejiditarios calling for the meeting to be declared illegal presented their evidence. The opponents who had organized the illegal meeting failed to appear in court on time and their testimony was dismissed by the judge. The judge ordered the Ejido administration to provide original documents for the meeting, which to date they have failed to provide. It is expected to take the judge one to two months to write his decision on the legality of the meeting once he has settled the original documents questions.

MAG remains highly confident that the meeting and the illegal resolutions will be nullified, at which time, the Company will ask government officials to oversee a new assembly meeting of the Ejido to ensure that the necessary procedural and governance rules are respected and the vote is properly conducted. Although there is no certainty that a new vote would produce a favourable outcome for the Company, MAG believes that the opposition group and its supporters do not represent the will of the majority of the 421 voting members of the Ejido. Further exploration and drilling at Cinco de Mayo will resume only upon obtaining a Soil Use Change Permit, drill permits and a surface access agreement with the Ejido. MAG believes that it has the support of a majority of the members of the Ejido and that the requisite authorizations to complete its submission for the Soil use Change Permit will be obtained in due course, and that access will be negotiated and resolved on a permanent basis with the Ejido.