First Majestic Silver Corp. announced that total production in the fourth quarter of 2023 from the Company's three producing mines in Mexico, namely the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine reached 6.6 million silver equivalent ("AgEq") ounces, consisting of 2.6 million silver ounces and 46,585 gold ounces. Total production for the full year of 2023 consisted of 26.9 million AgEq ounces, aligned to the Company's 2023 revised guidance of between 26.2 to 27.8 million AgEq ounces, consisting of 10.3 million silver ounces and 198,921 gold ounces.

San Dimas Silver/Gold Mine: San Dimas produced 3,110,677 AgEq ounces during the quarter consisting of 1,513,791 ounces of silver and 18,468 ounces of gold, representing a 2% decrease and a 3% increase, respectively, when compared to the prior quarter. The mill processed a total of 215,232 tonnes of ore with average silver and gold grades of 234 g/t and 2.77 g/t, respectively. Silver and gold recoveries during the quarter averaged 93% and 96%, respectively.

The Central Block and Sinaloa Graben areas contributed approximately 78% and 22%, respectively, of the total production during the quarter. During the quarter, a total of twelve drill rigs consisting of two surface rigs and ten underground rigs, completed 24,932 m of drilling on the property. Santa Elena Silver/Gold Mine: Santa Elena produced 3,008,449 AgEq ounces, a quarterly production record, consisting of 582,484 ounces of silver and 28,056 ounces of gold, representing a 67% increase in silver ounces and a 1% decrease in gold ounces when compared to the prior quarter.

The increase in silver equivalent production was driven by higher silver grades and recoveries in the period. The mill processed a total of 233,601 tonnes of ore, containing average silver and gold head grades of 106 g/t and 3.88 g/t, respectively. Consolidated silver and gold recoveries averaged a record 73% and 96%, respectively, during the quarter.

The strong metallurgical recoveries are due to the continuous operational optimization of the new dual-circuit plant. During the quarter, four drill rigs consisting of two surface rigs and two underground rigs, completed 7,949 m of drilling on the property. La Encantada Silver Mine: Throughout H2 2023, La Encantada was impacted by limited water supply to the mill, mainly driven by severe drought conditions in 2023 which impacted the existing water wells in the area.

During Third Quarter and Fourth Quarter 2023, management drilled a total of three exploration and production holes in an effort to source additional water. To date, these efforts have had limited success. The Company has identified several new targets that will be drilled in First Quarter and Second Quarter 2024 to identify additional water sources and allow for the mill to process ore tonnes at budgeted rates.

During the quarter, La Encantada produced 516,141 ounces of silver, representing a 9% decrease compared to the prior quarter. The mill processed a total of 203,898 tonnes of ore with an average silver grade and recovery of 110 g/t and 71%, respectively. Stope production from the new Beca Zone has contributed 48,811 tonnes with average silver grades of 121 g/t. Looking forward to 2024, management has decided to take a conservative approach when it comes to guidance on production and costs at La Encantada.

Despite the fact management believes a water source will be discovered, thereby restoring La Encantada to its historical production numbers and costs, the timing for the discovery of this positive outcome is currently not known. 2024 PRODUCTION GUIDANCE; The Company expects to achieve total production in 2024 from its three operating mines in Mexico of between 21.1 to 23.5 million AgEq ounces consisting of 8.6 to 9.6 million ounces of silver and 150,000 to 167,000 ounces of gold. The decrease in forecasted gold production is primarily due to the temporary suspension of the Jerritt Canyon Gold Mine in Nevada announced in First Quarter 2023.