First Majestic Silver Corp T.AG

Acquisition of the La Candelaria Silver Mine

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First Majestic Resource Corp.: Acquisition of the La Candelaria Silver Mine, Hostotipaquillo Jalisco, Mexico VANCOUVER, BRITISH COLUMBIA, May 03, 2006 (MARKET WIRE via COMTEX News Network) -- First Majestic Resource Corp. ("FR-V") ("First Majestic" or the "Company") (TSX VENTURE:FR)(PINK SHEETS:FMJRF)(FRANKFURT:905910) is pleased to announce that after the most recent due diligence program on the La Candelaria Silver Mine, the Company has entered into a revised agreement (the "Agreement") with Compania Minera Rio Frio, S.A. de C.V., ("Rio Frio") a privately owned Mexican mining company, for the purchase of a 100% interest in the La Candelaria Silver Mine. Included in this purchase is an operating flotation mill with a present capacity of 100 tpd and over 1,384 hectares of mining claims. This large land package located within a historically prolific silver district includes several historic mines such as the El Orito and La Fortuna silver mines. Under the revised terms of the agreement First Majestic will be required to make a payment of US$110,000 and issue 100,000 common shares to Rio Frio upon confirmation of re-registration of the mining claims. Additional payments totalling US$2,090,000 will be paid over 5 staged payments on each 6 month anniversary from closing up to the 24th month as follows: (a) US$110,000 on the 6th month anniversary (b) US$220,000 on the 12th month anniversary Copyright US$ $275,000 on the 18th month anniversary, and (d) a payment of US$1,485,000 on the 24th month anniversary. Closing was initially anticipated in January, however, re-registration of the mining claims has taken much longer than anticipated. The re-registration process should be completed within 30 days, and at which time closing will take place and title will be transferred to First Majestic. The intent of the due diligence program was to determine whether or not there was sufficient ore available to both continue and increase the production levels. Geological mapping and extensive surface and underground sampling were carried out. The results confirmed the district's potential for silver mineralization however it was determined that an additional exploration program is required in order to confirm the anticipated production levels. This additional program will focus both on those areas which had been the site of open pit mining by Rio Frio and also on the underground workings at the historic silver mines located within the mining claims. The mill, which operated at a rate of approximately 50 tonnes per day, has been put on 'care and maintenance' pending the completion of this Phase 2 program and a NI 43-101 compliant report in addition to the required permitting. The La Candelaria Silver Mine is located in the Hostotipaquillo Silver Mining District in Jalisco State, Mexico. This district has experienced over 400 years of production history of high grade silver and gold. The 1,384 hectare land package hosts a very large and prolific network of veins and brachiated ore bodies. Originally mined by the Spanish, the production on the property dates back to the 1500's. Since that time, mining has taken place intermittently. Since 1974, the area remained inactive until Rio Frio was able to assemble this attractive package of mining claims and commenced operations again in 2003. The foregoing is subject to regulatory approval. FIRST MAJESTIC RESOURCE CORP. Keith Neumeyer, President This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Resource Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and the TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Contacts: First Majestic Resource Corp. Keith Neumeyer President [phone] or Toll Free: 1-866-529-2807 [phone] (FAX) [e-mail] www.firstmajestic.com SOURCE: First Majestic Resource Corp. mailto:[e-mail] https://www.firstmajestic.com Copyright 2006 Market Wire, All rights reserved.