2 Certain statements contained herein regarding First Majestic - - PowerPoint PPT Presentation

Certain statements contained herein regarding First Majestic Silver Corp. (the “Company”) and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements”. We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with the Canadian and United States Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Ramon Mendoza, P. Eng., Vice President of Technical Services and Jesus Velador, Ph.D., Regional Exploration Manager are certified Qualified Persons (“QP”) for the Company. The Company expressly disclaims any obligation to update any “forward-looking statements”.

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~70% of revenue from Silver (18% Au, 10% Pb, 2% Zn) World’s largest silver producing country Six producing silver mines; 100% owned Multi-Asset Producer Pure Silver Producer Two advanced stage silver projects Achieve annual production of 20M+ Ag oz One Country: Mexico Future Growth Goal

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6.4M shares ~ US$55M in daily liquidity

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Market Capitalization: US$1.5B Cash & Cash Equiv1: US$129.0M Shares Outstanding: 165.1M (FD 176.2M) 3M Avg. Daily Volume:

(NYSE & TSX) 1) As of Dec 31, 2016

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• ~ 3,900 direct employees
• Internally design, develop and construct 100%
• f our silver projects
• Awarded ‘Socially Responsible

Company’ for eight consecutive years, 2008 to 2015, from the Centro Mexicano para la Filantropia (CEMEFI)

BROAD DEPTH OF PEOPLE

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Q/Q Y/Y Full Year 2016

(All shown in $USD)

Q4 2016 Q3 2016 Q4 2015

Revenue

66.2M 79.3M 66.0M 278.1M

Mine Operating Earnings

9.9M 20.0M 3.9M 49.2M

Net Earnings after taxes

1.8M 13.4M (103.0M) 8.6M

Earnings per share - Adjusted1

(0.01) 0.07 (0.02) 0.12

Operating Cash Flows, before movements in WC

23.4M 35.4M 17.5M 107.3M

Cash Flow per share

0.14 0.22 0.11 0.67

Working Capital

130.6M 143.8M 15.6M 130.6M

Cash and Cash equivalents

129.0M 122.5M 51.0M 129.0M

• Avg. Realized Silver price per oz ($/eq. oz)

17.10 19.72 15.21 17.16

(1) Adjusted earnings per share (a non-GAAP measure) af ter remov ing non-cash and non-recurring items

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IN PRODUCTION

La Encantada La Parrilla San Martin La Guitarra Del Toro Santa Elena

3 3 2 1 1 2 5 5 8 8 4 4 7

PROJECTS

Plomosas La Luz

7 6 6 9 9

EXPLORATION

La Joya

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2P Silver Ounces (M) Exploration Metres

Also produced 61M oz of Silver over this period

*Pending permits

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Mine Silver Oz (M) Silver Eqv Oz (M) Cash Costs ($) AISC ($) Santa Elena 2.6 – 2.9 5.4 – 6.0 0.90 – 1.46 6.22 – 7.24 La Encantada 2.6 – 2.9 2.6 – 2.9 9.83 – 10.17 12.35 – 12.90 La Parrilla 1.9 – 2.1 2.9 – 3.2 6.45 – 6.84 10.79 – 11.55 Del Toro 1.3 – 1.4 2.3 – 2.6 4.90 – 5.35 10.38 – 11.30 San Martin 1.8 – 2.0 2.0 – 2.2 8.31 – 8.66 11.77 – 12.41 La Guitarra 0.9 – 1.1 1.4 – 1.6 6.35 – 6.75 14.37 – 15.45 Totals: 11.1 – 12.4 16.6 – 18.5 $6.06 – $6.48 $11.96 – $12.88*

Metal price assumptions f or calculating equiv alents are: silv er: $16.50/oz, gold: $1,200/oz, lead: $1.00/lb, zinc: $1.20/lb. Currency exchange assumption f or costs are: 20:1 MXN:USD *Consolidated AISC includes corporate general & administrativ e expense of $1.38 to $1.53 per ounce, share-based pay ments expense of $0.53 to $0.59 per ounce and accretion of decommissioning liabilities of $0.07 to $0.08 per ounce

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1) AISC is a non-GAAP measure and w as calculated based on guidance provided by the World Gold Council (“WGC”)

Excluding non-cash items: 2017E AISC $11.36 - $12.21

12 $78M Expansionary

$53M - U/G Development $27M - Exploration $33M - PP&E $11M - Corporate Projects

$46M Sustaining

2017E CAPEX include:

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• Undergoing planning stage for the

use of natural gas generators

• Increasing underground production

capacity w/ new San Salvador ramp

• 100% Gold/Silver doré producer

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

2,750 tpd 2.6M – 2.9M Ag oz (5.4M – 6.0M AgEq oz) $6.22 - $7.24 11.1M Ag + 174K Au oz 12.9M Ag + 209K Au oz 2.0M Ag + 39K Au oz

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 660,207 671,423 673,969 2,598,537 Silver eqv. production (oz) 1,470,612 1,430,506 1,506,405 6,185,945 Silver grade (g/t) 89 95 96 92 Gold grade (g/t) 1.5 1.5 1.5 1.6 Cash costs / oz ($US) ($1.43) ($0.81) ($2.84) ($2.09) All-in Sustaining cost / oz ($US) $1.64 $1.82 $1.44 $1.75

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• Recently installed natural gas

generators – currently supplying 90%

• f power requirements
• Roasting circuit construction

expected to begin in early 2017 to reprocessing old tailings – expected to add 1.5M Ag oz per year

• 100% Silver doré producer

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 567,930 685,478 714,057 2,706,516 Silver eqv. production (oz) 569,504 687,841 716,023 2,713,372 Silver grade (g/t) 132 145 157 164 Cash costs / oz ($US) $13.87 $11.20 $11.00 $11.21 All-in Sustaining cost / oz ($US) $16.53 $12.81 $14.28 $12.76

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

3,000 tpd 2.6M – 2.9M Ag oz $12.35 – $12.90 31.0M Ag oz 31.9M Ag oz 5.8M Ag oz

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• Connecting the mines with an

underground 5 kilometre modern ore haulage system

• Expected cash cost reduction and

potential for further expansion

• Large land package consisting of

69,440 hectares covering several old mines

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 497,466 547,913 605,605 2,220,874 Silver eqv. production (oz) 699,497 739,026 1,051,679 3,388,434 Silver grade (g/t) 130 146 156 140 Cash costs / oz ($US) $10.22 $7.70 $7.18 $7.58 All-in Sustaining cost / oz ($US) $15.34 $10.65 $9.98 $10.47

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

1,500 tpd 1.9M – 2.1M Ag oz (2.9M – 3.2M AgEq oz) $10.79 – $11.55 11.5M Ag oz 13.0M Ag oz 32.3M Ag oz

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• Currently produces a silver-lead

concentrate

• Significant cash flow generator and

low cost operation

• Metallurgical recoveries continue to

improve for silver and lead

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 343,894 446,137 331,225 1,500,951 Silver eqv. production (oz) 680,802 707,524 586,672 2,649,326 Silver grade (g/t) 157 195 132 171 Cash costs / oz ($US) $2.80 $3.41 $9.25 $5.73 All-in Sustaining cost / oz ($US) $8.43 $6.01 $11.30 $8.62

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

1,000 tpd 1.3M – 1.4M Ag oz (2.3M – 2.6M AgEq oz) $10.38 - $11.30 9.7M Ag oz 15.6M Ag oz 24.4M Ag oz

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• 100% Silver/Gold doré producer
• Low cost, long mine life operation
• Property consists of 33 mining claims

within 37,518 hectares

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 510,423 500,441 485,227 1,902,963 Silver eqv. production (oz) 573,349 562,096 576,675 2,209,035 Silver grade (g/t) 254 246 231 241 Cash costs / oz ($US) $6.94 $7.05 $7.20 $7.07 All-in Sustaining cost / oz ($US) $10.01 $9.92 $9.83 $9.40

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

1,000 tpd 1.8M – 2.0M Ag oz (2.0M – 2.2M AgEq oz) $11.77 - $12.41 17.2M Ag oz 21.9M Ag oz 32.6M Ag oz

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Large 39,714-hectare property

Quarter End Full Year 2016 Q4 2016 Q3 2016 Q4 2015

Silver production (oz) 239,788 263,235 245,358 923,597 Silver eqv. production (oz) 386,713 397,627 382,953 1,523,688 Silver grade (g/t) 246 252 212 228 Cash costs / oz ($US) $7.73 $6.93 $7.02 $7.23 All-in Sustaining cost / oz ($US) $15.98 $13.60 $14.24 $13.33

Plant Operations Mill Throughput: 2017E Production: 2017E AISC: Reserves & Resources Proven & Probable: Measured & Indicated: Inferred:

*M&I Resources are inclusive of Reserves

400 tpd 0.9M – 1.0M Ag oz (1.4M – 1.5M AgEq oz) $14.37 - $15.45 9.1M Ag + 49K Au oz 9.8M Ag + 53K Au oz 6.3M Ag + 31K Au oz

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1) Revenue forecasts calculated using metal price assumptions of $16.50/oz silver, $1,200/oz gold, $2.50/lb copper, $1.00/lb lead and $1.20/lb zinc. 2) Source: BMO

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AG +36% AU -24% AG +182% AU +69% AG +407% AU +105% AG ? AU ?

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Source: Bloomberg

• ~75% of our
• perating costs are in

MXN Peso’s

• Increasing profit

margins – higher silver price & lower costs

• Weakness of MXN

Peso expected to continue in 2017 due to threat of Trump tariffs

USD/MXN

23

Source: Bloomberg

%

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 Installation of roasting circuit at La Encantada - expected to add 1.5 million Ag ounces to annual productionstarting in Q1 2018  La Guitarra expansion to 1,000 tpd – doubling productionand reducing AISC  Updating NI 43-101’s forSan Martin, Del Toro and La Parrilla  Installation of LNG plant at Santa Elena to further reduce operating costs  Completion of underground haulage system at La Parrilla aimed to further reduce costs and the potential for future expansion  Exploration discovery potential at Plomosas and Santa Elena’s Ermitaño Westproperty

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Our Strategy… One Metal One Country Continue to Acquire the Best Talent in Mexico Build through Development and Acquisitions Become a 20+ Million Ounce Producer

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Institution

% S/O

Van Eck 6.2% Resolute Funds 3.4% M&G Investment 2.7% Vanguard 1.9% Connor Clark & Lunn 1.7% Global X 1.0% Lord Abbett & Co. 1.0% Sprott Inc. 0.8% Research Coverage Bank of Montreal - Andrew Kaip Cormark - Graeme Jennings Desjardins - Mike Parkin Echelon Wealth Partners - Matt O'Keefe National Bank Financial - Shane Nagle Raymond James - Chris Thompson Rodman & Renshaw- Heiko Ihle Scotiabank - Ovais Habib Toronto-Dominion - Daniel Earle

(1) Mineral Reserv es hav e been classif ied in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Def inition Standards on Mineral Resources and Mineral Reserv es, whose def initions are incorporated by ref erence into NI 43-101. (2) Metal prices considered f or Mineral Reserv es estimates were $18.00 /oz Ag, $1,250 /oz Au, $1.00 /lb Pb, and $1.15 /lb Zn. (3) The Mineral Reserv es inf ormation prov ided abov e f or La Encantada, La Parrilla, Del Toro, San Martín, La Guitarra and Santa Elena is based on internal estimates prepared as of December 31, 2016. The inf ormation prov ided was rev iewed and v alidated by the Company ’s internal Qualif ied Person, Mr. Ramon Mendoza Rey es, P.Eng., who has the appropriate relev ant qualif ications, and experience in mining and reserv es estimation practices. (4) Silv er-equiv alent grade is estimated considering: metal price assumptions, metallurgical recov ery f or the corresponding mineral ty pe/mineral process and the metal pay able of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2016 Annual Inf ormation Form. (5) The cut-of f grades and modif y ing f actors used to conv ert Mineral Reserv es f rom Mineral Resources are dif f erent f or all mines . The cut-of f grades and f actors are listed in each mine section of the 2016 Annual Inf ormation Form.

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Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves)

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*See f ootnotes on next page

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(1) Mineral Resources have been classified in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101. (2) In all cases, metal prices considered for Mineral Resource estimates were $19.00 /oz Ag, $1,300 /oz Au, $1.00 /lb Pb, and $1.20 /lb Zn. (3) The Mineral Resources information provided above for La Parrilla, Del Toro and San Martín is based on internal estimates prepared as of December 31, 2016. The information provided was reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology, who has the appropriate relevant qualifications, and experience in geology and resource estimation. (4) Mineral Resource estimates for La Guitarra are based on information contained in the 2015 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016. (5) Mineral Resource estimates for La Encantada are based on information contained in the 2016 Technical Report compiled by First Majestic with contribution of Amec Foster Wheeler Americas Ltd. which were updated by First Majestic with information to 31 December, 2016. (6) Mineral Resource estimates for Santa Elena are internal estimates based on the 2014 Update to Santa Elena Pre-Feasibility Study Technical Report compiled by SilverCrest and re- addressed to First Majestic in October, 2015. These estimates were reviewed and validated by the Company’s internal Qualified Person, Mr. Jesus M. Velador Beltran, MMSA, QP Geology (7) Silver-equivalent grade is estimated considering: metal price assumptions, metallurgical recovery for the corresponding mineral type/mineral process and the metal payable of the corresponding contract of each mine. Estimation details are listed in each mine section of the 2016 Annual Information Form. (8) The cut-off grades for Mineral Resources are different for all mines. The cut-off grades are listed in each mine section of the 2016 Annual Information Form. (9) Measured and Indicated Mineral Resources are reported inclusive of Mineral Reserves.

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(1) Plomosas historical estimates figures are taken from Grupo México’s estimates prepared in 2001. (2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. (3) The Company’s Qualified Persons have not done sufficient work to classify the historical estimates as current Mineral Resources or Mineral Reserves and have been coordinating the work for the verification of the information supporting the historical estimates at Plomos as. The historical estimates at Plomosas do not conform to NI 43-101 for reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserves or Mineral Resources. Since the historical estimates do not have demonstrated current economic viability, these estimates should not be relied upon until the verification process and due diligence in progress by the Company's Qualified Person is completed. (4) In order to verify or upgrade the historical estimates, the Company has started a diamond drilling program at the Ros ario and San Juan mines. The drilling program is designed to confirm the historical estimates reported by Grupo México and will allow the Company to plan a s econd exploration program focused on locating extensions of the known mineralization. Other work required to verify the historical estimates as current includes, but it is not limited to: re-survey of underground workings, re-survey of available exploration drill-hole monuments, review of drilling, sampling and assays databases, and the re-assessment of the estimates following CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and CIM Definition Standards on Mineral Resources and Mineral Reserves.

La Luz Historical Estimates Plomosas Historical Estimates

(1) The La Luz resource estimates are taken f rom the Real de Catorce Property Technical Report dated July 25, 2008 and the Real de Catorce Property Technical Report dated July 30, 2007. The Company ’s Qualif ied Persons consider that those reports do not ref lect current economic conditions and are working on apply ing similar economic inputs to the La Luz Silv er Project to those applied to the other properties. (2) Tonnage is expressed in thousands of tonnes, metal content is expressed in thousands of ounces. (3) The Company ’s Qualif ied Persons hav e not done suf f icient work to classif y the historical estimates as current Mineral Res ources or Mineral Reserv es and have been coordinating the work f or the v erif ication of the inf ormation supporting the historical estimates at La Luz. The historical estimates at La Luz do not conf orm to NI 43-101 f or reporting purposes; as such, the Company is not treating these historical estimates as current Mineral Reserv es or Mineral Resources. Since the historical estimates do not hav e demonstrated current economic v iability , these estimates should not be relied upon until the v erif ication process and due diligence in progress by the Company 's Qualif ied Person is completed. (4) In order to v erif y or upgrade the historical estimates, the Company will need to implement a diamond drilling program at the La Luz mines. The drilling program is designed to conf irm the historical estimates reported in prev ious Technical reports and will allow the Company to plan a second exploration program f ocused on locating extensions of the known mineralization. Other work required to v erif y the historical estimates as current includes, but it is not limited to: re-surv ey of underground workings, re-surv ey of av ailable exploration drill-hole monuments, rev iew of drilling, sampling and assay s databases, and the re-assessment of the estimates f ollowing CIM Estimation of Mineral Resources and Mineral Reserv es Best Practice Guidelines and CIM Def inition Standards on Mineral Resources and Mineral Reserv es.

Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (k Oz) Ag-Eq (k Oz) PLOMOSAS Not in accordance with CIM Standards Sulphides (UG) 896 192 0.8 2.1 3.4 5,500 11,000 Project Category Mineral Type k tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag-Eq (g/t) Ag (k Oz)Ag-Eq (k Oz) LA LUZ Not in accordance with current CIM standards Oxides and Sulphides 5,005 204

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32,836 32,836