First Majestic Silver Corp. Announces Closing of C$50 Million Bought Deal Financing; Over-Allotment Option Fully Exercised

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 12, 2016) - First Majestic Silver Corp.(NYSE:AG)(FRANKFURT:FMV)(BVM:AG) ("First Majestic" or the "Company") has announced today that it has closed the bought deal private placement announced on April 22, 2016 which was co-led by Cormark Securities Inc. and BMO Capital Markets on behalf of a syndicate of underwriters including Desjardins Securities Inc., National Bank Financial Inc. and TD Securities Inc. (the "Underwriters") and that the over-allotment option granted to the Underwriters was exercised in full.

The Company issued an aggregate of 5,250,900 common shares (the "Common Shares") at a price of C$10.95 per Common Share for gross proceeds of C$57,497,355 (the "Offering").

The Company intends to use the net proceeds of the Offering towards the mill and mine expansion at La Guitarra mine to 1,000 tpd, to further advance the roasting analysis and testing at La Encantada mine, and to allow the Company to increase the amount of development and exploration across the Company's six operating mines as well as for general corporate and working capital purposes.

In connection with the Offering, the Underwriters received a cash commission equal to 4.0% of the aggregate gross proceeds raised. The Common Shares are subject to a hold period under Canadian law which will expire four months and one day from the date of closing, being September 13, 2016. United States investors are also subject to a hold period under United States law.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.