About First Majestic Silver

First Majestic Silver Corp. (First Majestic) engages in the business of the production, development, exploration and acquisition of mineral properties with a focus on silver and gold production in México and the United States. As such, the company's business is dependent on foreign operations in México and the United States. The company owns and operates three producing mines in México and one producing mine in the United States: the San Dimas Silver/Gold Mine in Durango State ('San Dimas Silver/Gold Mine' or 'San Dimas'); the Santa Elena Silver/Gold Mine in Sonora State ('Santa Elena Silver/Gold Mine' or 'Santa Elena'); the La Encantada Silver Mine in Coahuila State ('La Encantada Silver Mine' or 'La Encantada'); and the Jerritt Canyon Gold Mine in Elko, Nevada (the 'Jerritt Canyon Gold Mine' or 'Jerritt Canyon'). On March 20, 2023, the company announced a planned temporary suspension of all mining activities at Jerritt Canyon. The company also owns several non-material mines, which are under care and maintenance: the San Martín Silver Mine in Jalisco State ('San Martín Silver Mine' or 'San Martín'); the La Parrilla Silver Mine in Durango State ('La Parrilla Silver Mine' or 'La Parrilla'); and the Del Toro Silver Mine in Zacatecas State ('Del Toro Silver Mine' or 'Del Toro'). The company also owns two advanced-stage silver development projects in México: the La Luz Silver Project in San Luis Potosi State and La Joya Silver Project in Durango State, as well as a number of exploration projects in México. The La Joya Silver Project is under option to Silver Dollar Resources Ltd. Subsequent to year end, following the receipt of approval from the Comisión Federal de Competencia Económica ('COFECE') and the TSX Venture Exchange, as well as the completion of other customary closing conditions, on March 29, 2023 the company sold all of the shares of La Guitarra Compañia S.A. de C.V., its wholly owned subsidiary which owns the La Guitarra Silver Mine. The company has also entered into an asset purchase agreement to sell all of the assets comprising the La Parrilla Silver Mine. Closing of the La Parrilla transaction is subject to certain conditions and remains pending. On March 29, 2023, the company completed the sale of all of the shares of La Guitarra Compania S.A. de C.V., its wholly owned subsidiary which owns the La Guitarra Silver Mine located in the Temascaltepec mining district, Mexico State to Sierra Madre Gold & Silver Ltd. ('Sierra Madre'). Principal Markets for Silver and Gold The company's products are silver and gold. Silver is a precious metal that is a very important industrial commodity, with growing uses in several technologies, and desirable for jewellery and investment purposes. The company is a primary silver producer with approximately 38% of its revenue in 2022 from the sale of silver and approximately 62% of its revenue in 2022 from the sale of gold. The company also maintains an e-commerce website from which it sells a portion of its silver production directly to retail buyers (business to consumer) over the internet as high quality 0.999-fine silver rounds, ingots, bars and medallion sets. In 2022, these bullion product sales totaled approximately 4.2% of the company's silver production. Mineral Properties The following properties are material to First Majestic's business: the San Dimas Silver/Gold Mine; the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and the Jerritt Canyon Gold Mine. San Dimas Silver/Gold Mine, Durango and Sinaloa States, México The San Dimas mine is an actively producing silver and gold mining complex owned and operated by the company's wholly owned indirect subsidiary, PEM. The San Dimas mine is located near the town of Tayoltita on the borders of the States of Durango and Sinaloa, approximately 125 km northeast of Mazatlán, Sinaloa, and 150 km west of the city of Durango, in Durango State, Mexico. The company maintains a de Havilland Twin Otter aircraft and a helicopter, both of which are based at Tayoltita. The San Dimas mine consists of 119 individual concessions covering 71,839 hectares (ha). In 2013, the Mexican Federal government introduced a mining royalty, effective January 1, 2014, based on 7.5% of taxable earnings before interest and depreciation. In addition, precious metal mining companies must pay a 0.5% royalty on revenues from gold, silver, and platinum. First Majestic is party to a purchase (streaming) agreement with Wheaton Precious Metals which entitles Wheaton Precious Metals to receive 25% of the gold equivalent production from the San Dimas mine. First Majestic (and its predecessor companies) secured surface rights by either acquisition of private and public land or by entering into temporary occupation agreements with surrounding Ejido communities. The surface right agreements in place with the communities provide for use of surface land for exploration activities and mine-related ventilation infrastructure. Agreements cover the operation for the company's LOM plan. San Dimas holds the necessary permits to operate, including the Environmental License, water rights concessions, and federal land occupation concessions, among others. The San Dimas mine includes five underground gold and silver mining areas: West Block (San Antonio mine), Sinaloa Graben Block (Graben Block), Central Block, Tayoltita Block, and the Arana Hanging-wall Block (Santa Rita mine). Mining activities are conducted by First Majestic and contractor personnel. Two mining methods are in use at San Dimas: Cut-and-Fill, and Longhole Stoping. San Dimas is an operating mine, as such it holds all major environmental permits and licenses required by the Mexican authorities to carry out mineral extracting activities in the mining complex. Santa Elena Silver/Gold Mine, Sonora State, México The Santa Elena mine is an actively producing underground gold and silver mining complex owned and operated by the company's wholly owned indirect subsidiary, Nusantara de México, S.A. de C.V. ('Nusantara'). The property is in Sonora, México, approximately 150 kilometres northeast of the state capital city of Hermosillo and seven kilometres east of the community of Banámichi. First Majestic is party to a purchase (streaming) agreement with Sandstorm Gold Ltd. ('Sandstorm'). Surface rights in the area of the mining concessions are held both privately and through group ownership either as communal or Ejido lands. First Majestic has agreements in place regarding surface rights with Bienes Comunales de Banámichi, Mr. Francisco Maldonado, Dabafa S.P.R. de R.L., Ejido Banámichi, and the Community of Banámichi. As of December 2022, all obligations were met for these agreements. Santa Elena holds the necessary permits to operate, such as the Environmental License, water rights concessions, and federal land occupation concessions. The Santa Elena deposits are hosted in rocks of the Sierra Madre Occidental ('SMO'), an igneous province that extends from the USA-Mexican border south to Guadalajara, Mexico. The Santa Elena and the Ermitaño deposits are the most significant zones of gold and silver mineralization known within the Santa Elena property. The Santa Elena Mine operation consists of the Santa Elena and Ermitaño underground mines. Mining activities are conducted by First Majestic and contractor personnel. In December 2022 active mining operations at the Santa Elena mine were temporarily suspended and all mining was concentrated on the Ermitano mine for 2023 as exploration activities continued in both mines. La Encantada Silver Mine, Coahuila State, México La Encantada mine is an actively producing silver mining complex owned and operated by the company's wholly owned indirect subsidiary, Minera La Encantada, S.A. de C.V. ('Minera La Encantada'). The property is in the municipality of Ocampo, State of Coahuila, Mexico. Access to La Encantada is primarily by charter airplane from Durango city (about two hours flying time), or from the city of Torreón, Coahuila (about 1:15 hours flying time). Minera La Encantada operates its own private airstrip at the La Encantada mine. Driving time from the city of Melchor Múzquiz is approximately 2.5 hours by asphalt road, about five hours from the town of Ocampo and about eight hours from the international airport in Torreón city. The mine can be accessed and operated all-year round. The La Encantada property consist of 22 exploitation concessions covering 4,076 ha. All 22 concessions are in good standing and expire between 2030 and 2065. Minera La Encantada holds a 100 % royalty-free interest in its concessions. Minera La Encantada owns surface rights covering 2,237 ha on the 'Cañon del Regalado' properties. This surface covers access to the mining complex, mine portals, grinding mill and flotation plant (Plant No. 1), cyanidation plant (Plant No. 2), tailings management facilities, the mine camp, offices, and an airstrip. In 2011 the Tenochtitlán Ejido filed a lawsuit against Minera La Encantada in agrarian court claiming title to 1,097 hectares of the land owned by Minera La Encantada. The initial lawsuit was decided in favour of Minera La Encantada and was followed by a series of motions and appeals regarding judicial reviews of the subsequent rulings. In August 2021, the Minera La Encantada and the Commisariat reached an agreement to settle the lawsuit; however, eight dissenting Ejido members launched a suit against the Agrarian Attorney's Office and the Commisariat to nullify the election of the members of the Commisariat. Judicial approval of the settlement agreement is pending resolution of the Dissenting Suit. Minera La Encantada also holds 19,114 ha of surface rights, 'Cielo Norteño' or 'Rancho El Granizo' property to the North-East of the mine covering an area with water rights. The remainder of the surface rights in the mining concession areas are held privately and through group ownership either as communal lands or Ejido lands. Minera La Encantada has all necessary permits for current mining and processing operations, including an operating license for mining and mineral processing activities, a mine water use permit, an Environmental Impact Authorization ('EIA') for the La Encantada mine, processing plants and tailings management facilities, and a permit for power generation. The La Encantada mine operation consists of an underground mine. Mining activities are conducted by both First Majestic and contractor personnel. Jerritt Canyon Gold Mine, Elko County, Nevada, USA Jerritt Canyon is owned by Jerritt Canyon Gold LLC ('JCG'), an indirect, wholly owned subsidiary of the company. Jerritt Canyon consists of the permitted Jerritt Canyon processing plant and four producing gold mines, including the Smith mine, the SSX mine, the Saval II mine and the West Generator mine. Jerritt Canyon is located in Elko County, northeastern Nevada. Jerritt Canyon operations are located on a combination of public and private lands, with the deposits and mining related surface facilities being located primarily on mining claims in United States Forest Service land within the Humboldt-Toiyabe National Forest. The process facilities, offices, shops, and tailings dams are located on private land owned by JCG. Non-Material Properties San Martín Silver Mine, Jalisco State, México The San Martín mine is an underground silver and gold mine and processing facility in Jalisco State, México, approximately 250 km north of the state capital city of Guadalajara, and owned by the company's wholly owned indirect subsidiary, Minera El Pilón, S.A. de C.V. La Parrilla Silver Mine, Durango State, México The La Parrilla mine is an underground silver, lead and zinc mine and processing facility located in Durango State, México, approximately 76 kilometres southeast of the capital city of Durango, and is owned by the company's wholly owned indirect subsidiary, First Majestic Plata, S.A. de C.V. The La Parrilla mine also supports First Majestic's ISO certified Central Laboratory and metallurgical pilot plant testing facilities which continue in operation supporting the company's metallurgical investigations and assay work for the company's exploration samples. Del Toro Silver Mine, Zacatecas State, México Del Toro mine is an underground silver, lead and zinc mine and processing facility located in Zacatecas State, México, approximately 150 km northwest of the state capital city of Zacatecas, and is owned by the company's wholly owned indirect subsidiary, First Majestic Del Toro S.A. de C.V. The company operated the mine from 2004 until 21 January 2020 when mining operations were placed on temporary suspension. The Del Toro mine includes three main independent underground mining areas which are accessed via surface portals, the San Juan mine, the Dolores mine and the Perseverancia mine. Strategy As part of the company's business strategy, it has sought and expects to continue to seek new exploration, mining and development opportunities with a focus on silver and gold and to dispose of properties if appropriate opportunities arise. History The company was incorporated pursuant to the company Act (British Columbia) in 1979. It was formerly known as Brandy Resources Inc. and changed its name to Vital Pacific Resources Ltd. in 1984. Further, the company changed its name to First Majestic Silver Corp. in 2006.