MAG Reports High Grades on the Valdecanas Vein
Wednesday November 19, 9:00 am ET

1,338 g/t (39.0 opt) silver, 3.56 g/t gold, 1.63% lead and 7.37% zinc over 3.37 metres

842 g/t (24.5 opt) silver, 1.20 g/t gold, 2.19% lead and 6.40% zinc over 8.02 metres

The joint venture also reports that drilling has resumed on the Juanicipio Vein located one kilometre south of Valdecanas. Initial drill intercepts in the Juanicipio Vein including 2 metres of 689 grams per tonne (g/t) silver and 11.4 g/t gold (Hole JI03-01) and 0.6 metres of 4,100 g/t silver and 1.4 g/t gold (Hole 18-M) have characteristics indicating they lie above the elevation of a bonanza zone comparable to that in the Valdecanas Vein (see Press Releases of August 14, 2003 and April 16, 2008). The current hole is designed to cut the bonanza zone 125 metres deeper than Hole 18-M.

Three rigs are currently operating on the Valdecanas Vein to complete the ongoing 28,000 metre drill campaign for 2008. This program is focused on defining the Valdecanas Vein on a 100 by 100 metre grid, with the goal of moving as much of the recently reported inferred resource (see press release of June 18, 2008) as possible to an indicated resource by early 2009.

Highlights and discussion of results from the 6 holes released here include the following:

Hole HD was drilled on the western portion of the Valdecanas Vein to determine the top of the bonanza zone and got the expected results typical of this zone. In addition, the Lower Hangingwall Vein seen in several earlier holes is also present in Hole HD and reports 968 g/t (28.2 ounces per ton (opt)) silver, 0.08 g/t gold, 0.31% lead and 0.71% zinc over 0.65 metres. More significantly, a second hangingwall vein was intersected 312 metres up hole from the Valdecanas Vein and reported 27 g/t (0.8 opt) silver and 4.36 g/t gold with negligible lead and zinc over a width of 1.35 metres. This included a 0.60 metre intersection carrying 7.24 g/t gold. The high gold and very low base metals are typical of the top of the hydrothermal system at Valdecanas, which indicates that deeper drilling on these structures is warranted.

Hole JD was drilled in the western portion of the Valdecanas Vein and reports 392 g/t (11.4 opt) silver, 1.01 g/t gold, 4.36% lead and 5.41% zinc over 8.70 metres (true width). This includes a higher grade section of 601 g/t (17.5 opt) silver, 0.61 g/t gold, 7.32% lead and 8.70% zinc over 4.53 metres (true width). The high grade base metals in association with the silver are an example of the increase in base metals in the lower parts of the bonanza zone. Hole JD also intersected a hanging wall vein with 577 g/t (16.2 opt) silver, 1.41 g/t gold, 2.97% lead and 3.22% zinc over 5.09 metres (true width). This is the widest and highest grade hangingwall vein intercept to date.

Hole NE is located in the central portion of the Valdecanas Vein and is a clear example of the high grade bonanza zone. The results returned 1,338 g/t (39.0 opt) silver, 3.56 g/t gold, 1.63% lead and 7.37% zinc over 3.37 metres (true width). Within this zone there was a 1.53 metre (TW) section carrying 7.43 g/t gold and 1,300 g/t silver.

Hole QH is located deep on the east end of the Valdecanas Vein on section "Q". This intercept is typical of the deep, eastern part of the vein where it widens (10.94 metres true width) and silver values diminish. This zone included 120 g/t (3.5 opt) silver, 3.00 g/t gold, 2.95% lead and 3.10% zinc over 4.10 metres (true width).

Hole RD is also from the east end of the Valdecanas Vein and intersected the high grade bonanza zone between Sections "Q" and "S". The results include 1,134 g/t (33.1 opt) silver, 0.48 g/t gold, 2.51% lead and 6.75% zinc over 4.83 metres (true width) within a longer intercept of 842 g/t (24.5 opt) silver, 1.20 g/t gold, 2.19% lead and 6.40% zinc over 8.02 metres (true width). Notably, the highest gold grades (7 g/t) lie outside the highest grade silver zone.

Hole TE is the most easterly hole in this report and, like QH, has the lower silver grades characteristic of the lower vein zone. This hole returned 68 g/t (2.0 opt) silver, 1.32 g/t gold, 0.41% lead and 0.95% zinc over 3.53 metres (true width).