Mexican Silver Mines, LTD., probably the newest pure silver company listed on the TSX Venture Exchange, went public on May 14, 2007. Founded in June 2006, MSM is conducting aggressive exploration programs on their Mexican properties. Mexican Silver Mines is a junior resource company developing three former silver producing properties in northeastern Mexico. Covering approximately 322,500 acres, the 100 percent owned properties have been mined from numerous deposits since the Spanish era; however, only limited exploration has been conducted. There are more than eight historic silver mines located on these properties. MSM is applying modern exploration techniques to exploit fully the exploration potential indicated by bonanza-type samples grading more than 7,000 grams per tonne silver and 30 percent zinc.

Eight of seventeen districts have produced or had resources in excess of 10 million tons,
with silver contents of 80 grams - 350 grams per ton....

Mexican Silver Mines’ inception is an interesting history. All properties owned by MSM were previously owned by two Mexican families for three generations. Raul Ramirez, a family member, decided to advertise online for a joint venture partner. MSM chairman, Dr. Roger Norwich took the initiative to travel to Mexico and build a relationship, and friendship, with the family. He was chosen to joint venture over some other top-tier silver companies in Canada and the US. None of the mines had ever been drilled. Local Mexicans have mined about 20 meters, until reaching the water table. Then, they would abandon the project since not much of a deposit is seen at the surface. “We’re following a strategy of companies like First Majestic Silver Corp. that have gone in there and taken these ore producing mines and shown that these things host a much larger deposit than what can be visually seen from the surface. We’re in an area that hosts carbonate replacement-type deposits or mantos deposits. These things are known to have several layers of ore producing bodies.”

Feisal Somji, President and CEO, has complete confidence in their projects, stating, “We’re following a very solid business plan, solid geological fundamentals. We’re going into an area that we know hosts silver, lead, and zinc-type deposits. We’re going into a country that everyone knows can put mines into production.” Feisal Somji has over 14 years experience in mineral exploration, and has been involved in mine development projects around the would. He started with the diamond rush up in Northern Canada, and for several years ran his own exploration companies, drilling companies and geophysical companies. He has held positions as officer and director for several public companies involved in diamond, gold and platinum group element assets in Canada, Mexico, Brazil, and Africa. He also ran his own companies providing mineral exploration services. Somji holds an MBA from Queens University and recently has been working more in corporate finance and the public company side.

Somji also attributes much success to his management team, expressing, “We’ve got a board of directors that are really, in essence, a management board. All of us are hands on, including directors who are in Mexico running the operations on a day-to-day basis.”

At the end of June, MSM conducted lead assays from the trenching program at its La Blanca silver-lead-zinc project. La Blanca is located in Nuevo Leon, Mexico. Twenty-eight rock chip samples were taken from five trenches. Values range from 59-83% lead, confirming MSM’s initial thesis of high grade silver values being directly related to the lead content of the ore.

Being probably the newest silver company on the market and sitting on numerous projects that had not been drilled before, Mexican Silver Mines, LTD. looked at a peer group review. They found, according to Feisal Somji, “There are companies down there that have just started working in exploration similar to ourselves that have $30 million markets. We have companies that have done some drilling and have proven the resource and are getting into definition drilling, and they all sit at $70 to $80 million market caps. Then we have companies that are now in production like Endeavor and First Majestic that are in the $200 to $300 to $400 million market cap. So we know that the market is responding favorably to companies that go into production for silver in Mexico. We expect to do all that in the short-term future. And that should give a good reward to the people that come and invest in our company today.”

Results of the La Blanca Trench Assays are charted below:

In early July, MSM completed a private placement of 12,841,500 units at a price of C$1.00 per unit for gross proceeds of C$12,841,500. The net proceeds will be used to accelerate and expand the on-going exploration conducted on MSM’s properties, to identify producing silver mines with a view on acquisition.

Somji states, "We are extremely pleased with the response and support we have received for Mexican Silver Mines and its projects. Although we are confident that the private placement could have been completed for our announced maximum proceeds of C$14 million, we limited the amount raised with a view to having a subscribers list comprised of what we consider to be an appropriate mix of institutional and retail investors. With these proceeds, we have a strong financial capacity to explore our properties and to also acquire new properties."

“Why Invest in Mexican Silver Mines, LTD.?”

• The newest silver company on the market
• Large land position in country famous for silver
• Owns eight historic silver mines which have been mined only to relatively shallow depths
• Possibility of near-term silver production to provide cash flow
• Extensive exploration potential with samples grading higher than 7,000 grams per tonne silver and 30 percent zinc
• A board of directors that are really in essence a management board

On September 6 Feisal Somji announced that drilling had commenced. He had told us earlier, “We hope that by the end of 2007, we will take one or more of these old producing mines and they’ll be in the resource definition stage, or actually drilling out a resource base by the end of 2007. We’ll then move towards the engineering feasibility studies through ’08 and ’09. Now typically in any mining operation, it takes one to three years to go from exploration to production. The management team of Mexican Silver Mines is a bit impatient, and what we would like to do is use a portion of the current financing that we’re doing and go out there and start production.”

The management team at Mexican Silver Mines believes strongly in the quality of the company’s projects. As for the direction of the company, Somji claims, “We are currently in discussions with a couple of groups, and we feel that there are good production situations in Mexico that need capital or management. Our hope is that in the year 2008, we will turn ourselves from an exploration development company into being a producing company.”

We’ll be watching this new silver company with great interest.

For more information contact:
Address: 3004 Ogden Road SE
Calgary, AB
T2G 4N5
Telephone: 403.236.2222
Email: feisal@mexicansilvermines.com
Contact: Feisal Somji
http://www.mexicansilvermines.com
Investor Relations Contact: Jamie Mathers
1-866-684-4743 ext 236
Jamie@ascentacapital.com