press release

First Majestic Reports Q2 2026 Production Results; Announces Updated 2026 Production and Cost Guidance, and Q2 Conference Call Details

2026-07-08

TSX - Toronto Stock Exchange · Copper · Molybdenum · Silver · Gold · Zinc · Lead · Germanium · Indium · Sulfur · Nickel · Platinum · Palladium · Production & Operations

Vancouver, British Columbia--(Newsfile Corp. - July 8, 2026) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") announces that total production in the second quarter of 2026 from the Company's four producing underground mines in Mexico, namely, the Santa Elena Silver/Gold Mine ("Santa Elena"), the Los Gatos Silver Mine ("Los Gatos") (the Company holds a 70% interest in the Los Gatos Joint Venture that owns the mine), the San Dimas Silver/Gold Mine ("San Dimas"), and the La Encantada Silver Mine ("La Encantada") reached 3.8 million silver ("Ag") ounces, 34,660 gold ("Au") ounces, 16.5 million pounds of zinc ("Zn"), 9.0 million pounds of lead ("Pb") and 252,938 pounds of copper ("Cu").

Q2 2026 PRODUCTION HIGHLIGHTS

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Silver Production (+3% Y/Y): The Company produced 3.8 million silver ounces in Q2 2026 compared to 3.7 million silver ounces produced in Q2 2025, an increase of 3%. The increase was primarily driven by strong performances at La Encantada and Santa Elena.

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Gold Production (+2% Y/Y):The Company produced 34,660 gold ounces in Q2 2026, a 2% increase compared to 33,865 gold ounces produced in Q2 2025. The increase in gold production was primarily driven by strong production at Santa Elena.

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Developments at Santa Elena:In June, the Company announced infill drilling results at the Santo Niño and Navidad targets that returned multiple silver and gold intercepts, including high-grade results from resource-conversion drilling. Additionally, the Company secured construction permits for the Santo Niño and Navidad portals and announced an additional $12 million in investments planned in 2026 to advance underground access and position the Santo Niño portal for near-term mining (see news release dated June 25, 2026).

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Sale of the Del Toro Silver Mine: In June, pursuant to the share purchase agreement dated December 17, 2025 between Sierra Madre and First Majestic, Sierra Madre completed its previously announced acquisition of First Majestic's 100%-owned past producing Del Toro Silver Mine located in the Municipality of Chalchihuites, Zacatecas, Mexico for total consideration of up to $60 million comprised of cash and Sierra Madre shares with upfront consideration of $30 million, which has been received, and an additional $30 million in contingent payments (see news release dated June 22, 2026).

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Sustainability Efforts:The Company published its fifth Sustainability Report during the second quarter, disclosing its lowest carbon intensity on record, while achieving record production, in 2025 (see news release dated April 29, 2026).

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Safety Performance in Q2: The consolidated Q2 2026 Total Reportable Incident Frequency Rate ("TRIFR") was 0.63, slightly above the Company's 2026 target KPI of 0.60. The Lost Time Incident Frequency Rate ("LTIFR") was 0.08 compared to our KPI of 0.12 maintaining First Majestic as a leader amongst its peer group.

_"First Majestic has delivered another strong quarter, with continued operational outperformance relative to our original guidance, and we are pleased to increase our production guidance for the second consecutive year," _said Keith Neumeyer, CEO._"Despite labour disruptions at San Dimas and a minor rock fall event at Los Gatos, our team responded quickly and safely, resolving both issues while recovering the majority of the downtime at each operation. At Santa Elena and Los Gatos, our mill and mine expansion projects continue to progress on schedule with both mills achieving record monthly throughputs in the quarter, and both projects are expected to be completed during the third quarter. Q2 also marked another significant milestone for the Company, as Santa Elena secured construction permits for both the Santo Niño and Navidad portals ahead of schedule."_

Attributable Consolidated Production Details:

| Q2 | Q2 | Y/Y | | Q1 | Y/Y | | 2026 | 2025 | Change | Attributable Consolidated Production Results | 2026 | Change | | 1,040,314 | 1,003,804 | 4% | Ore processed/tonnes milled | 1,059,333 | (2)% | | 3,799,823 | 3,701,995 | 3% | Silver ounces produced | 3,545,383 | 7% | | 34,660 | 33,865 | 2% | Gold ounces produced | 34,341 | (1)% | | 16,484,603 | 16,063,947 | 3% | Zinc pounds produced | 15,407,856 | 7% | | 9,023,177 | 9,014,545 | —% | Lead pounds produced | 8,700,148 | 4% | | 252,938 | 205,288 | 23% | Copper pounds produced | 262,913 | (4)% |

1. Consolidated production values include attributable ounces from the Los Gatos Silver Mine (70%).

Q2 2026 Mine-by-Mine Production Details:

| Mine | Ore Processed | Tonnes per Day | Ag Grade (g/t) | Au Grade (g/t) | Ag Recovery | Au Recovery | Ag Oz Produced | Au Oz Produced | | Los Gatos (100%) | 300,867 | 3,306 | 219 | 0.23 | 86% | 49% | 1,827,933 | 1,103 | | Los Gatos (70%) | 210,607 | 2,314 | 219 | 0.23 | 86% | 49% | 1,279,553 | 772 | | Santa Elena | 305,369 | 3,356 | 61 | 2.30 | 71% | 95% | 422,571 | 21,468 | | San Dimas | 203,486 | 2,236 | 185 | 2.01 | 88% | 94% | 1,062,203 | 12,385 | | La Encantada | 320,852 | 3,526 | 135 | 0.00 | 74% | 90% | 1,035,497 | 35 |

1.

Certain amounts shown in this table may not add exactly to the total amount due to rounding.

2.

The metal prices used to calculate the silver equivalent ounces were as follows: silver - $52.00/oz; gold - $3,900/oz; lead - $0.90/lb; zinc - $1.35/lb; and copper - $4.80/lb.

Los Gatos Silver Mine (reported on a 70% attributable basis):

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During the second quarter, Los Gatos' attributable production included 1,279,553 ounces of silver, 16,484,603 pounds of zinc, 9,023,177 pounds of lead, 252,938 pounds of copper and 772 ounces of gold. Despite the strong performance in Q2, production at Los Gatos was slightly impacted by a rockfall on the main ramp at the beginning of April that temporarily disrupted mining operations and required rehabilitation, and unplanned equipment maintenance subsequently that lowered tonnes processed in the quarter. This was offset by higher grades and strong recoveries.

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The mill processed a total of 210,607 tonnes of ore (3,959 tonnes per operating day "tpod" on a 100% basis), with head grades of 219 g/t silver, 4.82% zinc, 2.25% lead, and 0.24 g/t gold. Management continues to focus on achieving sustainably higher mill throughput at Los Gatos by increasing mining rates, with June averaging a record 4,078 tpod on a 100% basis, a key milestone on our path toward a sustained increase in ore throughput of 4,000 tpod on a 100% basis in the second half of 2026.

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Silver, zinc, lead and gold recoveries during the quarter averaged 86%, 64%, 86% and 49%, respectively.

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During the quarter, six surface drill rigs completed approximately 12,143 metres ("m") of drilling on the property. Drilling continued at the Central Deeps and North-West Deeps zones, as well as at other greenfield targets.

Santa Elena Silver/Gold Mine:

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Santa Elena produced 422,571 Ag ounces and 21,468 Au ounces during the quarter, an increase of 38% and 4% year-over-year, respectively. The increased silver production was due to an increase in ore processed, and higher silver recoveries related to slightly higher silver grades achieved through optimized ore blends processed during the quarter.

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The mill processed a new quarterly record of 305,369 tonnes of ore in the second quarter, 13% higher than the same period last year, and 7% higher than the previous record of 283,721 tonnes in Q1 2026, as the Company continues advancing the 3,500 tpd expansion project. Average silver and gold head grades were 61 g/t and 2.30 g/t, respectively.

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Silver and gold recoveries during the quarter averaged 71% and 95%, respectively, compared to 64% and 94% in the same period last year. Higher recoveries were a result of the optimized blending process.

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During the quarter, eight drill rigs, consisting of five surface rigs and three underground rigs, completed approximately 25,345 m of drilling on the property. Drilling focused on testing extensions of the newly discovered Santo Niño and Navidad resources, and the conversion of Inferred Mineral Resources to Indicated Mineral Resources at Ermitaño-Luna.

San Dimas Silver/Gold Mine:

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San Dimas produced 1,062,203 Ag ounces and 12,385 Au ounces during the quarter representing a 15% decrease and 1% decrease, respectively, compared to the same period last year. The decreased quarterly production was a result of a delay in mine haulage due to now resolved labour negotiations as well as a now resolved equipment failure that slowed processing. Operations have resumed at targeted rates, and the Company has revised San Dimas' production guidance higher for 2026 despite these events.

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The mill processed a total of 203,486 tonnes of ore, a decrease of 7% compared to the same period last year, with average silver and gold grades of 185 g/t and 2.01 g/t, respectively, compared with 197 g/t and 1.90 g/t, respectively, in the same period last year. Lower throughput was a result of the disrupted mine haulage.

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Silver and gold recoveries during the quarter averaged 88% and 94%, respectively, compared to 90% and 93%, respectively, in the same period last year.

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During the quarter, a total of 17 drill rigs consisting of five surface rigs and 12 underground rigs completed 39,483 m of drilling on the property. Drilling focused on the Coronado, Carmen Escobosa, Elia and Convención veins with targets spanning across the exploration pipeline (Resource expansion and Resource conversion drilling).

La Encantada Silver Mine:

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During the quarter, La Encantada produced 1,035,497 Ag ounces, representing a 65% increase compared to Q2 2025, driven primarily by a 14% increase in ore processed, a 27% increase in silver grades and a 14% improvement in silver recoveries. Production at La Encantada improved significantly due to improved ore flow and mine development rates, and process optimization resulting from management initiatives.

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The mill processed a new quarterly record of 320,852 tonnes of ore, a 14% increase over the same period last year, with an average silver grade of 135 g/t, compared to 106 g/t in the same period last year.

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Silver recovery for the quarter was 74%, compared to 65% in Q2 2025.

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During the quarter, two surface drill rigs completed 4,357 m of drilling on the property. The Company is concurrently testing new exploration targets and potential near-term mineralization expansion areas.

Jerritt Canyon Gold Mine:

Preparations to re-start the Company's Jerritt Canyon Gold Mine in Nevada, USA continue to advance with several notable achievements during the quarter. The Company is targeting to begin production from Jerritt Canyon in H2 2027.

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Underground Equipment:Purchase orders have been placed for an initial fleet of 17 Sandvik underground mining units, while letters of intent have been submitted for the remainder of the required equipment.

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Rehabilitation and Development:The underground contractor ("Cementation") has safely completed 3,380 m of underground rehabilitation to establish underground diamond drill locations. Development of access drives to initial stoping areas will commence in the third quarter.

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People:The hiring of key roles at site is progressing to plan. The Company has successfully onboarded notable hires during the quarter including key positions in Technical Services, Water Resources and Processing.

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Technical Studies:The development and optimization of the re-start mine plan continues to progress well with the support of Stantec Consulting Services Inc ("Stantec").

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Surface and Plant Infrastructure:BBA Consultants USA LP ("BBA") has been engaged to support the Jerritt Canyon process plant restart and refurbishment. BBA completed the first phase of engineering and process plant inspections during the quarter and is progressing to plan.

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Exploration Drilling:During the quarter, two reverse circulation rigs completed approximately 12,495 m of surface drilling, and one diamond drill rig completed approximately 320 m of underground drilling. A second underground diamond drill rig is expected to commence operations in the third quarter. Surface drilling focused on defining the historical deepest open pit mining depth within partially backfilled pits, while increasing confidence level on in-situ mineralization along the Central and Northern mineralized trends. Underground drilling tested areas identified as having potential for early mining.

2026 REVISED OUTLOOK

The Company is updating its full year 2026 guidance primarily to reflect the following changes:

1.

Santa Elena:Increased gold production forecast from 72,000 to 76,000 ounces, an increase of 10% (mid-point) compared to the original guidance, primarily due to higher gold grades and slightly increased gold recoveries. Silver production is expected to be 1.4 - 1.5 million ounces, toward the high-end of the original guidance.

2.

Los Gatos:Increased the attributable production forecast to 5.1 - 5.5 million Ag ounces, a 5% improvement (mid-point). The Company is on track with its objective of achieving and sustaining a throughput level of 4,000 tpd in the second half of 2026.

3.

San Dimas:Increased production forecast to 4.6 - 4.9 million Ag ounces, an increase of 13% (mid-point) compared to the original guidance, primarily due to higher throughput rates.

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La Encantada: Increased production forecast to 3.4 - 3.6 million Ag ounces, an increase of 19% (mid-point) compared to the original guidance, primarily due to higher throughput and slightly higher silver recoveries.

5.

Capital Investments:Management has increased the 2026 capital budget to a range of $318 million to $344 million to support key growth initiatives, including the Jerritt Canyon restart program ($75 million), development projects at Santa Elena including Navidad and the early advancement of underground access to Santo Niño for near-term mining ($12 million), further development across San Dimas, Los Gatos and La Encantada, and the acquisition of additional equipment to enhance and sustain higher throughput rates at Los Gatos.

With strong production results in H1 2026, and the Company's successful progress on throughput expansions across all mine sites as well as continued operating efficiencies, the 2026 attributable consolidated production guidance has increased to 14.6 - 15.5 million Ag ounces, representing a 10% increase compared to the original guidance of 13.0 - 14.4 million Ag ounces, as well as a 7% increase to 128,000 - 135,000 Au ounces compared to the original guidance of 116,000 to 129,000 Au ounces.

A mine-by-mine breakdown of the Company's updated 2026 production and cost guidance is set out in the table below.

2026 Updated Full Year Mine-by-Mine Guidance:

| Operation | Silver Oz (M) | Gold Oz (k) | Lead Lb (M) | Zinc Lb (M) | Copper Lb (M) | Cash Cost ($ per AgEq Oz) | AISC ($ per AgEq Oz) | | | | | | | | | | | Los Gatos (70%), Mexico | 5.1 - 5.5 | 3 - 4 | 32 - 34 | 53 - 56 | 1.0 - 1.1 | 16.56 - 17.10 | 20.35 - 21.11 | | Santa Elena, Mexico | 1.4 - 1.5 | 72 - 76 | - | - | - | 19.86 - 20.32 | 25.09 - 25.83 | | San Dimas, Mexico | 4.6 - 4.9 | 52 - 56 | - | - | - | 18.79 - 19.42 | 25.38 - 26.42 | | La Encantada, Mexico | 3.4 - 3.6 | 0 | - | - | - | 24.50 - 25.21 | 31.18 - 32.36 | | Operations Total | 14.6 - 15.5 | 128 - 135 | 32 - 34 | 53 - 56 | 1.0 - 1.1 | $19.27 - $19.85 | $25.00 - $25.91 | | Corporate: | | | | | | ($ per AgEq Oz) | ($ per AgEq Oz) | | Corp. G&A and Services | - | - | - | - | - | - | 2.69 - 2.86 | | Total: | | | | | | ($ per AgEq Oz) | ($ per AgEq Oz) | | Total Consolidated | 14.6 - 15.5 | 128 - 135 | 32 - 34 | 53 - 56 | 1.0 - 1.1 | $19.27 - $19.85 | $27.69 - $28.77 |

1.

Certain amounts shown in the above table may not add exactly to the total amount due to rounding differences.

2.

These measures do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate these measures may differ from methods used by other companies with similar descriptions. The Company calculates cash costs and consolidated AISC in the manner set out in the table below. These measures have been calculated on a basis consistent with historical periods. See "Non-GAAP Measures" at the end of this news release for further details regarding these measures and a reconciliation of non-GAAP to GAAP measures.

For 2026, the Company is reporting cash costs and all-in sustaining costs ("AISC") guidance on a cost per unit basis, using a fixed gold-to-silver ratio of 75:1 with the following metal price assumptions: silver - $52.00/oz; gold - $3,900/oz; lead - $0.90/lb; zinc - $1.35/lb; copper - $4.80/lb. The foreign currency assumption is MXN:USD 18.25:1. These assumptions remain unchanged.

Annual cash costs are now expected to be within the tightened range of $19.27 to $19.85 per consolidated payable AgEq ounce, consistent with the Company's previous guidance of $18.64 to $19.62 per consolidated payable AgEq ounce.

The Company is projecting its 2026 consolidated AISC to be $27.69 to $28.77 on a per consolidated payable AgEq ounce basis, compared with the original guidance range of $26.15 to $27.91, a 4% increase at the mid-point, primarily as a result of higher costs linked to higher than forecasted silver prices and a stronger Mexican Peso in the first half of 2026 (17.50:1 actual vs 18.25:1 assumption). Although strong silver production and higher silver prices improve overall economics, some variable costs increase occur with higher silver prices. The Company remains focused on maximizing margins and operating efficiently.

Excluding non-cash items (share-based payments, and accretion and reclamation costs), the Company anticipates its 2026 AISC to be within the range of $26.86 to $27.88 per consolidated payable AgEq ounce. An itemized cost table for the AISC calculation is provided below:

| All-In Sustaining Cost Calculation | FY 2026 ($ per AgEq oz) | | | | | Total Cash Costs per Payable Silver Ounce | 19.27 - 19.85 | | General and Administrative Costs | 2.04 - 2.16 | | Sustaining Development Costs | 1.01 - 1.04 | | Sustaining Property, Plant and Equipment Costs | 1.59 - 1.69 | | Profit Sharing | 2.16 - 2.29 | | Lease Payments | 0.79 - 0.85 | | Share-based Payments (non-cash) | 0.65 - 0.70 | | Accretion and Reclamation Costs (non-cash) | 0.18 - 0.19 | | | | | All-In Sustaining Costs (AgEq Oz) | $27.69 - $28.77 | | All-In Sustaining Costs: (AgEq Oz excluding non-cash items) | $26.86 - $27.88 |

1.

Certain amounts shown may not add exactly to the total amount due to rounding differences.

2.

Consolidated AISC includes general and administrative cost estimates and non-cash costs of $2.69 to $2.86 per AgEq ounce.

3.

AISC does not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate AISC may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" at the end of this news release for further details regarding these measures and a reconciliation of non-GAAP to GAAP measures.

CAPITAL INVESTMENTS IN 2026

The Company now plans to invest between $318 million to $344 million in capital expenditures in 2026 consisting of $62 million to $70 million for sustaining activities and $256 million to $274 million for expansionary projects. This represents a 47% increase compared to the original 2026 capital expenditure guidance of $213 million to $236 million primarily driven by the Jerritt Canyon restart program ($75 million), the accelerated development and portal construction projects at Santa Elena including Navidad and Santo Niño with the recently received permits ($12 million), further development across San Dimas, Los Gatos and La Encantada, and the acquisition of additional equipment to enhance and sustain higher throughput rates at Los Gatos.

Other ongoing key investment initiatives previously announced include the Santa Elena plant expansion from 3,200 tpd to 3,500 tpd (on track), the mine throughput increase at Los Gatos from 3,500 tpod to 4,000 tpod (on track), and the acquisition of the remaining haulage fleet at La Encantada to support higher mining and throughput rates (100% complete). These investments are fully aligned with the Company's long-term growth strategy.