VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2008) - Genco Resources Ltd. (TSX:GGC - News) is pleased to announce that it has entered into an agreement to purchase from Industrias Penoles, S.A.B. de C.V. mining concessions covering approximately 354 hectares in the Temascaltepec Mining District of Mexico State, Mexico and an associated sliding scale net smelter royalty (which, at the current metal prices, is 3.5%). These mining concessions were previously leased from Penoles.

The total consideration to be paid for the concessions and royalty is US$1,400,000 consisting of US$1,000,000 in cash and 134,648 common shares. The issuance of the shares is subject to regulatory approval.

Wayne Moorhouse, Vice President of Finance for Genco, states, "The purchase of the mining concessions from Penoles represents a significant step towards our goal of developing the Temascaltepec Mining District into one of the premier silver districts in the world. Genco not only gains long term security with ownership of the concessions, but also eliminates a royalty which has and was expected to grow significantly as production at our La Guitarra Mine expanded."

Greg Liller, President of Genco, states, "The purchase of the concessions and associated royalty from Penoles will have a positive impact on our planned production expansion program. These concessions cover the Creston bulk tonnage deposit, which is a major focus of the feasibility study currently being conducted by Kappes Cassiday and Associates. In addition the concessions also cover part of the Nazareno Mine Area which we believe has the potential for significant future production."

Genco is a primary silver producer in Mexico, whose core assets are multiple mining sites, including La Guitarra Mine located in its wholly-owned Temascaltepec Mining District of central Mexico.

The Toronto Exchange does not accept responsibility for the adequacy or accuracy of this release.