6-K - AG - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 4, 2022

Commission File Number 001-34984

FIRST MAJESTIC SILVER CORP.

(Translation of registrant's name into English)

925 West Georgia Street, Suite 1800, Vancouver BC V6C 3L2

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[ ] Form 20-F [x] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [ ]

DOCUMENTS INCORPORATED BY REFERENCE

Exhibits 99.1 and 99.2 to this Report on Form 6-K are hereby incorporated by reference as Exhibits to the Registration Statement on Form F-10 of First Majestic Silver Corp. (File No. 333-255798).

DOCUMENTS FILED AS PART OF THIS FORM 6-K

Exhibits

99.1	Condensed Interim Consolidated Financial Statements for the three and six months ended June 30 , 2022 and 2021
99.2	Management's Discussion and Analysis for the Quarter Ended June 30 , 2022
99.3	Certification of Interim Filings - CEO
99.4	Certification of Interim Filings - CFO
99.5	News Release dated August 4, 2022

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FIRST MAJESTIC SILVER CORP.
By:
/s/ Connie Lillico
Connie Lillico
Corporate Secretary
August 4, 2022

Document

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021

(UNAUDITED)

925 West Georgia Street, Suite 1800, Vancouver, B.C., Canada V6C 3L2<br>Phone: 604.688.3033	Fax: 604.639.8873	Toll Free: 1.866.529.2807	Email: info@firstmajestic.com<br>www.firstmajestic.com

Management’s Responsibilities over Financial Reporting

The condensed interim consolidated financial statements of First Majestic Silver Corp. (the “Company”) are the responsibility of the Company’s management. The condensed interim consolidated financial statements are prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as issued by the International Accounting Standards Board and reflect management’s best estimates and judgment based on information currently available.

Management has developed and maintains a system of internal controls to ensure that the Company’s assets are safeguarded, transactions are authorized and properly recorded, and financial information is reliable.

The Board of Directors is responsible for ensuring management fulfills its responsibilities. The Audit Committee reviews the results of the condensed interim consolidated financial statements prior to their submission to the Board of Directors for approval.

The condensed interim consolidated financial statements have not been audited.

Keith Neumeyer	David Soares, CPA, CA
President & CEO	Chief Financial Officer
August 3, 2022	August 3, 2022

TABLE OF CONTENTS

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
	Condensed Interim Consolidated Statements of Earnings (Loss)	1
	Condensed Interim Consolidated Statements of Comprehensive Income (Loss)	2
	Condensed Interim Consolidated Statements of Cash Flows	3
	Condensed Interim Consolidated Statements of Financial Position	4
	Condensed Interim Consolidated Statements of Changes in Equity	5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
General
	Note 1. Nature of Operations	6
	Note 2. Basis of Presentation	6
	Note 3. Significant Accounting Policies, Estimates and Judgments	6
	Note 4. Acquisition of Jerritt Canyon Canada Ltd.	9
Statements of Earnings (Loss)
	Note 5. Segmented Information	10
	Note 6. Revenues	12
	Note 7. Cost of Sales	13
	Note 8. General and Administrative Expenses	13
	Note 9. Mine Holding Costs	14
	Note 10. Investment and Other Income (Loss)	14
	Note 11. Finance Costs	14
	Note 12. Earnings or Loss per Share	15
Statements of Financial Position
	Note 13. Inventories	15
	Note 14. Other Financial Assets	16
	Note 15. Assets Held-For-Sale	16
	Note 16. Mining Interests	18
	Note 17. Property, Plant and Equipment	21
	Note 18. Right-of-Use Assets	22
	Note 19. Restricted Cash	23
	Note 20. Trade and Other Payables	24
	Note 21. Debt Facilities	25
	Note 22. Lease Liabilities	27
	Note 23. Share Capital	29
Other items
	Note 24. Financial Instruments and Related Risk Management	33
	Note 25. Supplemental Cash Flow Information	37
	Note 26. Contingencies and Other Matters	38
	Note 27. Subsequent Events	40
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
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FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 and 2021
Condensed Interim Consolidated Financial Statements - Unaudited	(In thousands of US dollars, except share and per share amounts)

The Condensed Interim Consolidated Statements of Earnings (Loss) provide a summary of the Company’s financial performance and net earnings or loss over the reporting periods.

		Three Months Ended June 30,		Six Months Ended June 30,
	Note	2022	2021	2022	2021
Revenues	6	$159,443	$154,073	$316,281	$254,595
Mine operating costs
Cost of sales	7	113,619	95,782	224,832	152,843
Depletion, depreciation and amortization		34,212	28,868	64,768	44,213
		147,831	124,650	289,600	197,056
Mine operating earnings		11,612	29,423	26,681	57,539
General and administrative expenses	8	9,380	6,901	19,662	13,862
Share-based payments		2,986	2,768	7,808	6,362
Mine holding costs	9	2,430	2,359	5,595	6,227
Reversal of impairment	15	(7,585)	—	(7,585)	—
Acquisition costs	4	—	1,823	—	1,823
Foreign exchange gain (loss)		986	(782)	277	(2,579)
Operating earnings		3,415	16,354	924	31,844
Investment and other (loss) income	10	(3,918)	4,329	(1,286)	1,179
Finance costs	11	(4,835)	(4,127)	(9,425)	(7,900)
(Loss) earnings before income taxes		(5,338)	16,556	(9,787)	25,123
Income taxes
Current income tax expense		25,450	10,325	36,942	18,862
Deferred income tax expense (recovery)		53,262	(9,368)	30,036	(11,193)
		78,712	957	66,978	7,669
Net (loss) earnings for the period		($84,050)	$15,599	($76,765)	$17,454
(Loss) earnings per common share
Basic	12	($0.32)	$0.06	($0.29)	$0.08
Diluted	12	($0.32)	$0.06	($0.29)	$0.07
Weighted average shares outstanding
Basic	12	262,680,950	242,781,479	261,447,267	232,718,998
Diluted	12	262,680,950	245,837,994	261,447,267	235,856,369

Approved and authorized by the Board of Directors for issuance on August 3, 2022

| Keith Neumeyer, Director | Colette Rustad, Director | | --- | --- || The accompanying notes are an integral part of the condensed interim consolidated financial statements | | | --- | --- | | First Majestic Silver Corp. 2022 Second Quarter Report | Page 1 | | CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | | | --- | --- | | FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 and 2021 | | | Condensed Interim Consolidated Financial Statements - Unaudited | (In thousands of US dollars) |

The Condensed Interim Consolidated Statements of Comprehensive Income (Loss) provide a summary of total comprehensive earnings or loss and summarizes items recorded in other comprehensive income that may or may not be subsequently reclassified to profit or loss depending on future events.

	Note	Three Months Ended June 30,		Six Months Ended June 30,
		2022	2021	2022	2021
Net (loss) earnings for the period		($84,050)	$15,599	($76,765)	$17,454
Other comprehensive income (loss)
Items that will not be subsequently reclassified to net earnings:
Unrealized (loss) gain on fair value of investments in marketable securities, net of tax	14(b)	(9,421)	(410)	(8,106)	(5,136)
Realized gain (loss) on investments in marketable securities, net of tax	14(b)	248	(605)	482	(1,256)
Other comprehensive loss		(9,173)	(1,015)	(7,624)	(6,392)
Total comprehensive (loss) income		($93,223)	$14,584	($84,389)	$11,062
The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2022 Second Quarter Report	Page 2
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
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FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 and 2021
Condensed Interim Consolidated Financial Statements - Unaudited	(In thousands of US dollars)

The Condensed Interim Consolidated Statements of Cash Flows provide a summary of movements in cash and cash equivalents during the reporting periods by classifying them as operating, investing or financing activities.

		Three Months Ended June 30,		Six Months Ended June 30,
	Note	2022	2021	2022	2021
Operating Activities
Net (loss) earnings for the period		($84,050)	$15,599	($76,765)	$17,454
Adjustments for:
Depletion, depreciation and amortization		34,623	29,275	65,580	45,080
Share-based payments		2,986	2,768	7,808	6,362
Income tax expense		78,712	957	66,978	7,669
Finance costs	11	4,835	4,127	9,425	7,900
Acquisition costs	4	—	1,823	—	1,823
Loss on assets held-for-sale	10	—	—	—	2,081
Loss (gain) from marketable securities and silver futures derivatives		3,303	(4,100)	961	(2,811)
Reversal of Impairment	15	(7,585)	—	(7,585)	—
Unrealized foreign exchange loss (gain)		181	743	1,931	(3,237)
Operating cash flows before working capital and taxes		33,005	51,192	68,333	82,321
Net change in non-cash working capital items	25	(17,426)	(21,012)	(44,265)	(34,778)
Income taxes paid		(28,832)	(46,712)	(56,305)	(56,644)
Cash used in operating activities		(13,253)	(16,532)	(32,237)	(9,101)
Investing Activities
Restricted cash acquired on the acquisition of Jerritt Canyon	4	—	30,000	—	30,000
Expenditures on mining interests		(49,319)	(34,013)	(81,347)	(67,429)
Acquisition of property, plant and equipment		(18,148)	(7,153)	(24,444)	(17,959)
Deposits paid for acquisition of non-current assets		(839)	(1,999)	(4,879)	(4,291)
Jerritt Canyon acquisition costs, net of cash acquired	4	—	(798)	—	(798)
Other	25	1,257	653	3,842	903
Cash used in investing activities		(67,049)	(13,310)	(106,828)	(59,574)
Financing Activities
Proceeds from prospectus offering, net of share issue costs	23(a)	17,341	49,068	30,580	49,068
Proceeds from exercise of stock options		1,108	8,901	3,293	13,264
Repayment of lease liabilities	22	(2,978)	(2,198)	(5,998)	(3,526)
Finance costs paid		(436)	(673)	(688)	(2,432)
Dividends declared and paid	23(g)	(3,634)	(1,132)	(3,634)	(1,132)
Cash provided by financing activities		11,401	53,966	23,553	55,242
Effect of exchange rate on cash and cash equivalents held in foreign currencies		(1,508)	1,301	(22)	1,964
(Decrease) increase in cash and cash equivalents		(68,901)	24,124	(115,512)	(13,433)
Cash and cash equivalents, beginning of the period		192,801	201,684	237,926	238,578
Cash and cash equivalent reclassified as held for sale		(4,671)	—	(4,671)	—
Cash and cash equivalents, end of period		$117,721	$227,109	$117,721	$227,109
Supplemental cash flow information	25					The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2022 Second Quarter Report	Page 3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
---	---
AS AT JUNE 30, 2022 AND DECEMBER 31, 2021
Condensed Interim Consolidated Financial Statements - Unaudited	(In thousands of US dollars)

The Condensed Interim Consolidated Statements of Financial Position provides a summary of assets, liabilities and equity, as well as their current versus non-current nature, as at the reporting date.

	Note	June 30, 2022	December 31, 2021
Assets
Current assets
Cash and cash equivalents		$117,721	$237,926
Restricted cash	19	44,131	12,570
Trade and other receivables		6,573	7,729
Value added taxes receivable	24	30,539	46,531
Inventories	13	66,612	60,613
Other financial assets	14	15,953	26,486
Prepaid expenses and other		11,641	5,352
Assets held-for-sale	15	43,087	—
Total current assets		336,257	397,207
Non-current assets
Mining interests	16	1,065,918	1,048,530
Property, plant and equipment	17	455,228	449,237
Right-of-use assets	18	28,425	29,225
Deposits on non-current assets		10,406	10,949
Non-current restricted cash	19	97,488	115,012
Non-current value added taxes receivable	24(c)	7,902	572
Deferred tax assets		33,131	74,257
Total assets		$2,034,755	$2,124,989
Liabilities and Equity
Current liabilities
Trade and other payables	20	$101,665	$120,666
Unearned revenue	6	5,867	12,226
Current portion of debt facilities	21	605	125
Current portion of lease liabilities	22	12,393	11,825
Liabilities relating to assets held-for-sale	15	8,163	—
Income taxes payable		7,738	27,980
Total current liabilities		136,431	172,822
Non-current liabilities
Debt facilities	21	185,394	181,108
Lease liabilities	22	27,475	28,036
Decommissioning liabilities		155,499	153,607
Other liabilities		6,716	5,797
Non-current income taxes payable		23,682	21,812
Deferred tax liabilities		135,292	150,836
Total liabilities		$670,489	$714,018
Equity
Share capital		1,696,259	1,659,781
Equity reserves		96,159	98,943
Accumulated deficit		(428,152)	(347,753)
Total equity		$1,364,266	$1,410,971
Total liabilities and equity		$2,034,755	$2,124,989
Commitments (Note 16; Contingencies (Note 26); Subsequent event (Note 27)				The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2022 Second Quarter Report	Page 4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
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FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
Condensed Interim Consolidated Financial Statements - Unaudited	(In thousands of US dollars, except share and per share amounts)

The Condensed Interim Consolidated Statements of Changes in Equity summarizes movements in equity, including common shares, share capital, equity reserves and retained earnings or accumulated deficit.

	Share Capital		Equity Reserves				Accumulated deficit
	Shares	Amount	Share-based payments(a)	Other comprehensive income(loss)(b)	Equity component of convertible debenture(c)	Total equity reserves
Balance at December 31, 2020	221,965,011	$1,087,139	$75,420	$7,413	$19,164	$101,997	(338,900)	$850,236
Net earnings for the period	—	—	—	—	—	—	17,454	17,454
Other comprehensive loss	—	—	—	(6,392)	—	(6,392)	—	(6,392)
Total comprehensive income	—	—	—	(6,392)	—	(6,392)	17,454	11,062
Share-based payments	—	—	7,113	—	—	7,113	—	7,113
Shares issued for:
Acquisition of Jerritt Canyon (Note 4)	26,719,727	416,561	23,150	—	—	23,150	—	439,711
Exercise of stock options (Note 23(b))	1,507,564	18,606	(5,342)	—	—	(5,342)	—	13,264
Acquisition of Springpole Silver Stream (Note 16(d))	287,300	3,750	—	—	—	—	—	3,750
Sprott Private Placement (Note 4)	1,705,514	26,589	—	—	—	—	—	26,589
Prospectus offerings (Note 23(a))	3,000,000	49,068	—	—	—	—	—	49,068
Settlement of restricted share units (Note 23(c))	32,850	431	(456)	—	—	(456)	—	(25)
Dividend declared and paid (Note 23(g))	—	—	—	—	—	—	(1,132)	(1,132)
Balance at June 30, 2021	255,217,966	$1,602,144	$99,885	$1,021	$19,164	$120,070	(322,578)	$1,399,636
Balance at December 31, 2021	260,050,658	$1,659,781	$101,385	($6,387)	$3,945	$98,943	(347,753)	$1,410,971
Net loss for the period	—	—	—	—	—	—	(76,765)	(76,765)
Other comprehensive loss	—	—	—	(7,624)	—	(7,624)	—	(7,624)
Total comprehensive loss	—	—	—	(7,624)	—	(7,624)	(76,765)	(84,389)
Share-based payments	—	—	7,710	—	—	7,710	—	7,710
Shares issued for:
Prospectus offerings (Note 23(a))	2,318,497	30,580	—	—	—	—	—	30,580
Exercise of stock options (Note 23(b))	401,498	4,823	(1,530)	—	—	(1,530)	—	3,293
Settlement of restricted share units<br><br>(Note 23(c)and23(e))	82,515	1,075	(1,340)	—	—	(1,340)	—	(265)
Dividend declared (Note 23(g))	—	—	—	—	—	—	(3,634)	(3,634)
Balance at June 30, 2022	262,853,168	$1,696,259	$106,225	($14,011)	$3,945	$96,159	(428,152)	$1,364,266

All values are in US Dollars.

(a)Share-based payments reserve records the cumulative amount recognized under IFRS 2 share-based payments in respect of stock options granted, restricted share units, deferred share units and shares purchase warrants issued but not exercised or settled to acquire shares of the Company.

(b)Other comprehensive income reserve principally records the unrealized fair value gains or losses related to fair value through other comprehensive income ("FVTOCI") of financial instruments financial instruments and re-measurements arising from actuarial gains or losses and return on plan assets in relation to San Dimas' retirement benefit plan.

(c)Equity component of convertible debenture reserve represents the estimated fair value of its conversion option of $42.3 million, net of deferred tax effect of $11.4 million. This amount is not subsequently remeasured and will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. Where the conversion option remains unexercised at the maturity date of the convertible note, the balance will remain in equity reserves.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 5
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

NATURE OF OPERATIONS

First Majestic Silver Corp. (the “Company” or “First Majestic”) is in the business of production, development, exploration, and acquisition of mineral properties with a focus on silver and gold production in North America. The Company owns four producing mines, three mines in Mexico consisting of the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine and the Jerritt Canyon Gold Mine in Nevada, USA (see Note 4). In addition, the Company owns four mines in suspension: the San Martin Silver Mine, the Del Toro Silver Mine, the La Parrilla Silver Mine and the La Guitarra Silver/Gold Mine and several exploration stage projects. As at June 30, 2022 the La Guitarra mine was classified as an asset held-for-sale (Note 15).

First Majestic is incorporated in Canada with limited liability under the legislation of the Province of British Columbia and is publicly listed on the New York Stock Exchange under the symbol “AG”, on the Toronto Stock Exchange under the symbol “FR” and on the Frankfurt Stock Exchange under the symbol “FMV”. The Company’s head office and principal address is located at 925 West Georgia Street, Suite 1800, Vancouver, British Columbia, Canada, V6C 3L2.

BASIS OF PRESENTATION

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”. These condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements as at and for the year ended December 31, 2021, as some disclosures from the annual consolidated financial statements have been condensed or omitted.

These condensed interim consolidated financial statements have been prepared on a historical cost basis except for certain items that are measured at fair value including derivative financial instruments (Note 24) and marketable securities (Note 14). All dollar amounts presented are in thousands of United States dollars unless otherwise specified.

These condensed interim consolidated financial statements incorporate the financial statements of the Company and its controlled subsidiaries. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances, transactions, income and expenses are eliminated on consolidation.

These condensed interim consolidated financial statements were prepared using accounting policies consistent with those in the audited consolidated financial statements as at and for the year ended December 31, 2021 except as outlined in Note 3.

SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS

The Company’s management makes judgments in its process of applying the Company’s accounting policies in the preparation of its unaudited condensed interim consolidated financial statements. In addition, the preparation of the financial data requires that the Company’s management to make assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

In preparing the Company’s unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2022, the Company applied the accounting policies, critical judgments and estimates disclosed in Note 3 of its audited consolidated financial statements for the year ended December 31, 2021 and the following accounting policies, critical judgments and estimates in applying accounting policies:

Assets and liabilities held-for-sale:

Accounting Policy:

A non-current asset or disposal group of assets and liabilities ("disposal group") is classified as held-for-sale, if its carrying amount will be recovered principally through a sale transaction rather than through continuing use, and when the following criteria are met:

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 6
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS (continued)

Assets and liabilities held-for-sale (continued)

(i) The non-current asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; and

(ii) The sale of the non-current asset or disposal group is highly probable. For the sale to be highly probable:

•The appropriate level of management must be committed to a plan to sell the asset or disposal group;

•An active program to locate a buyer and complete the plan must have been initiated;

•The non-current asset or disposal group must be actively marketed for sale at a price that is reasonable in relation to its current fair value;

•The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale (with certain exceptions); and

•Actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets and disposal groups are classified as held for sale from the date these criteria are met and are measured at the lower of the carrying amount and fair value less costs to sell ("FVLCTS"). If the FVLCTS is lower than the carrying amount, an impairment loss is recognized in net earnings. Upon classification as held for sale, non-current assets are no longer depreciated.

Significant estimates and judgements:

In determining the probability of the sale being completed within a year, management has considered a number of factors including necessary approvals from management, the Board of Directors, regulators and shareholders.

New and amended IFRS standards that are effective for the current year:

Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss.

The amendments were applied effective January 1, 2022 and did not have a material impact on the Company's consolidated financial statements.

Provisions, Contingent Liabilities and Contingent Assets (Amendment to IAS 37)

The amendments clarify that the cost of fulfilling a contract when assessing whether a contract is onerous comprise both the incremental costs and an allocation of other costs that relate directly to fulfilling the contract. The amendments apply to contracts existing at the date when the amendments are first applied. On adoption of this amendment, there was no impact to the Company's consolidated financial statements.

Future Changes in Accounting Policies Not Yet Effective as at June 30, 2022:

Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current.

The amendments are applied on or after the first annual reporting period beginning on or after January 1, 2023, with early application permitted. This amendment is not expected to have a material impact on the Company’s financial statements.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 7
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS (continued)

Future Changes in Accounting Policies Not Yet Effective as at June 30, 2022 (continued)

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgments—Disclosure of Accounting Policies

The amendments change the requirements in IAS 1 with regard to disclosure of accounting policies. The amendments replace all instances of the term "significant accounting policies" with "material accounting policy information". Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can

reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements.

The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The International Accounting Standards Board ("IASB") has also developed guidance and examples to explain and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice Statement 2.

The amendments to IAS 1 are effective for annual periods beginning on or after January 1, 2023, with earlier application permitted and are applied prospectively. The amendments to IFRS Practice Statement 2 do not contain an effective date or transition requirements. This amendment is not expected to have a material impact on the Company's financial statements.

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors—Definition of Accounting Estimates

The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”.

The definition of a change in accounting estimates was deleted. However, the Board retained the concept of changes in accounting estimates in the Standard with the following clarifications:

• A change in accounting estimate that results from new information or new developments is not the correction of an error

• The effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors

The amendments are effective for annual periods beginning on or after January 1, 2023 to changes in accounting policies and changes in accounting estimates that occur on or after the beginning of that period, with earlier application permitted. This amendment is not expected to have a material impact on the Company's financial statements.

Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12)

In May 2021, the International Accounting Standards Board issued targeted amendments to IAS 12, Income Taxes. The amendments are effective for annual periods beginning on or after January 1, 2023, although earlier application is permitted. With a view to reducing diversity in reporting, the amendments will clarify that companies are required to recognize deferred taxes on transactions where both assets and liabilities are recognized, such as with leases and decommissioning liabilities. This amendment is not expected to have a material impact on the Company's financial statements.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 8
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

ACQUISITION OF JERRITT CANYON CANADA LTD.

Description of the Transaction

On April 30, 2021, the Company completed the acquisition of 100% of the issued and outstanding shares of Jerritt Canyon Canada Ltd. from Sprott Mining Inc. ("Sprott Mining") in exchange for 26,719,727 common shares of First Majestic (the "Consideration Shares") and five million common share purchase warrants (the "Consideration Warrants"), each exercisable for one common share of the Company at a price of $20 per share for a period of three years from the date of acquisition on April 30, 2021 (the “Acquisition Date”). Concurrent with closing of the acquisition, Sprott Mining also completed a private placement consisting of $30.0 million at a price of $17.59 per share for a total of 1,705,514 common shares of the Company (the "Private Placement Shares") (together, the "Acquisition Agreement").

Pursuant to closing of the Acquisition Agreement, the Company deposited into escrow an aggregate of $60.0 million (the "Escrowed Funds"), including $30.0 million from First Majestic and $30.0 million proceeds from the Private Placement Shares, representing the estimated tax ("Triggered Tax") due by Jerritt Canyon Canada as a result of a reorganization completed prior to the acquisition of the Jerritt Canyon Gold Mine. Pursuant to the Acquisition Agreement, the Purchase Price is increased to the extent the Triggered Tax is less than $60 million (“Triggered Tax Adjustment”) and decreased to the extent the working capital (the “Working Capital Adjustment”) of Jerritt Canyon is less than zero. The amount of such tax liability was $45.2 million and has been paid from the Escrowed Funds. As of April 30, 2021, Jerritt Canyon had a preliminary negative working capital of $2.8 million. The parties have agreed to settle the Triggered Tax Adjustment by releasing the Escrow funds of $12.6 million to Sprott Mining and have agreed to settle the Working Capital Adjustment to $nil. These funds were released to Sprott Mining during the three months ended June 30, 2022.

Jerritt Canyon owns and operates the Jerritt Canyon Gold Mine located in Elko County, Nevada. Jerritt Canyon was discovered in 1972 and has been in production since 1981 having produced over 9.5 million ounces of gold over its 40-year production history. The mine currently operates as an underground mine and has one of three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4,000 tonnes per day (“tpd”) and is currently operating at an average rate of approximately 2,200 tpd. The property consists of a large, under explored land package consisting of 30,821 hectares (119 square miles). The acquisition was completed in order to support the Company's growth strategy by adding another cornerstone asset within a world class mining jurisdiction to the Company's portfolio.

Management has concluded that Jerritt Canyon constitutes a business and, therefore, the acquisition is accounted for in accordance with IFRS 3 - Business Combinations. Given the delivery of the consideration and the fulfillment of the covenants as per the Acquisition Agreement, the transaction was deemed to be completed with First Majestic identified as the acquirer. Based on the April 30, 2021 opening share price of common shares, the total consideration of the Jerritt Canyon acquisition is $478.9 million. The Company began consolidating the operating results, cash flows and net assets of Jerritt Canyon from April 30, 2021 onwards.

The determination of the fair value of assets acquired and liabilities assumed was previously reported based on preliminary estimates at the Acquisition Date. The Company has completed a full and detailed valuation of the fair value of the net assets of Jerritt Canyon acquired using income, market, and cost valuation methods with the assistance of an independent third party. As of the date of the audited annual consolidated financial statements, the allocation of purchase price with respect to the fair value increment of assets acquired and liabilities assumed was updated to reflect new information obtained which existed at the Acquisition Date.

The fair value of assets acquired, and liabilities assumed are subject to change for up to one year from the Acquisition Date. The Company has finalized its full and detailed assessment of the fair value of the net assets of Jerritt Canyon acquired. As stated above, the Triggered Tax Adjustment and the Working Capital Adjustment, as well as any consequential impact on the deferred tax liabilities, were finalized at March 31, 2022. There were no changes to management's assessment of the fair value at the Acquisition Date that was reported at December 31, 2021. Consequently, the final allocation of the purchase price consideration did not result in material adjustments to the amounts shown in the audited consolidated financial statements for the year ended December 31, 2021.

ACQUISITION OF JERRITT CANYON CANADA LTD. (continued)

Consideration and Purchase Price Allocation

Total consideration for the acquisition was valued at $478.9 million on the Acquisition Date. The following table summarizes the consideration paid as part of the purchase price:

Total Consideration
26,719,727 Consideration Shares issued to Sprott Mining with an accounting fair value of $15.59 per share(1)	$416,561
1,705,514 Private Placement Shares issued to Sprott Mining with an accounting fair value of $15.59 per share(1)	26,589
5,000,000 Consideration Warrants issued to Sprott Mining with an accounting fair value of $4.63 per warrant(2)	23,150
Triggered Tax Adjustment	12,570
Total consideration	$478,870

(1)Fair values of Consideration Shares and Private Placement Shares were estimated at $15.59 per share based on the opening price of First Majestic’s common share on the New York Stock Exchange on April 30, 2021, as compared to their deemed price of $17.59 according to the Acquisition Agreement.

(2)The Consideration Warrants have an exercise price of $20 per share for a three-year term expiring on April 30, 2024. The fair value of Consideration Warrants were estimated using the Black-Scholes method at the Jerritt Canyon Acquisition Date, using the following assumptions:

Stock price (as of opening on April 30, 2021)	$15.59
Exercise price of Consideration Warrants	$20.00
Term (years)	3
Volatility	55%
Annual rate of quarterly dividends	0%
Discount rate - bond equivalent yield	0.5%
Total fair value of warrants	$23,150

ACQUISITION OF JERRITT CANYON CANADA LTD. (continued)

Consideration and Purchase Price Allocation (continued)

The following table summarizes the preliminary and revised purchase price allocated to the identifiable assets and liabilities based on their estimated fair values on the acquisition date:

Allocation of Purchase Price
	Preliminary as reported June 30, 2021	Adjustments	As reported December 31, <br>2021
Cash and cash equivalents	$1,025	$—	$1,025
Inventories	19,304	—	19,304
Trade and other receivables	135	(63)	72
Other financial assets	3,581	—	3,581
Prepaid expenses	1,662	62	1,724
Restricted cash(1)	96,985	—	96,985
Mining interest	409,930	22,729	432,659
Property, plant and equipment	224,034	(48,307)	175,727
Deposit on non-current assets	128	—	128
Trade and other payables	(27,159)	3,974	(23,185)
Lease liabilities(3)	(2,194)	—	(2,194)
Income taxes payable	(47,185)	1,866	(45,319)
Contingent environmental provision(2)	(17,900)	17,900	—
Decommissioning liabilities(2)	(87,705)	16,570	(71,135)
Deferred tax liabilities	(98,186)	(12,316)	(110,502)
Net assets acquired	$476,455	$2,415	$478,870

(1) Restricted cash includes $30.0 million proceeds from the issuance of Private Placement Shares which were deposited into the Escrowed Funds and $67.0 million in non-current environmental reclamation bonds.

(2) Decommissioning liabilities include funds required to establish a trust agreement with the Nevada Division of Environmental Protection (“NDEP”) to cover post-closure water treatment costs at Jerritt Canyon, which were previously reported as a contingent environmental provision.

3) Lease liabilities are defined per Note 22.

The Company used discounted cash flow models to determine the fair value of the depletable mining interest. The expected future cash flows are based on estimates of future gold prices, estimated quantities of ore reserves and mineral resources, expected future production costs and capital expenditures based on the life of mine plans at the acquisition date. The discounted future cash flow models used a 5.1% discount rate based on the Company’s assessment of country risk, project risk, and other potential risks specific to the acquired mining interest.

The significant assumptions used in the determination of the fair value of the mining interests were as follows:

Short-term and long-term gold price	$1,750
Discount rate	5.1%
Mine life (years)	11
Average gold grade over life of mine	6.0 g/t
Average gold recovery rate	86%

The Company used a market approach to determine the fair value of exploration potential by comparing the costs of other precedent market transactions within the industry on a dollar per square kilometres basis. Those amounts were used to determine the range of area-based resources multiples implied within the value of transactions by other market participants. Management made a significant assumption in the determination of the fair value of exploration potential by using an implied multiple of $298,524 per square kilometre for a total of $92.0 million. The Company accounted for exploration potential through inclusion within non-depletable mineral interest.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 9
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SEGMENTED INFORMATION

All of the Company’s operations are within the mining industry and its major products are precious metals doré which are refined or smelted into pure silver and gold and sold to global metal brokers. Transfer prices between reporting segments are set on an arms-length basis in a manner similar to transactions with third parties. Coins and bullion cost of sales are based on transfer prices.

A reporting segment is defined as a component of the Company that:

•engages in business activities from which it may earn revenues and incur expenses;

•whose operating results are reviewed regularly by the entity’s chief operating decision maker; and

•for which discrete financial information is available.

For the six months ended June 30, 2022, the Company's significant reporting segments includes its three operating mines in Mexico, the Jerritt Canyon Gold Mine in Nevada, United States and its "non-producing properties" in Mexico which include the La Parrilla, Del Toro, San Martin and La Guitarra mines, which have been placed on suspension. “Others” consists primarily of the Company’s corporate assets including cash and cash equivalents, other development and exploration properties (Note 16), debt facilities (Note 21), coins and bullion sales, and corporate expenses which are not allocated to operating segments. The Company’s chief operating decision maker (“CODM”) evaluates segment performance based on mine operating earnings. Therefore, other income and expense items are not allocated to the segments.

Significant information relating to the Company’s reportable operating segments is summarized in the tables below:

Three Months Ended June 30, 2022 and 2021		Revenue	Cost of sales	Depletion, depreciation, and amortization	Mine operating earnings (loss)	Capital expenditures
Mexico
San Dimas	2022	$54,255	$33,532	$11,445	$9,278	$14,356
	2021	70,692	34,330	11,536	24,826	15,502
Santa Elena	2022	49,334	27,911	6,902	14,521	16,390
	2021	28,260	19,021	4,397	4,842	17,216
La Encantada	2022	21,317	11,702	2,341	7,274	2,739
	2021	23,119	11,777	2,062	9,280	2,825
Non-producing Properties	2022	—	—	104	(104)	183
	2021	—	(17)	112	(95)	236
United States
Jerritt Canyon	2022	36,252	41,743	12,827	(18,318)	26,859
	2021	34,856	31,713	10,299	(7,156)	8,114
Others	2022	2,570	1,428	593	549	9,521
	2021	2,521	1,587	462	472	14,374
Intercompany elimination	2022	(4,285)	(2,697)	—	(1,588)	—
	2021	(5,375)	(2,629)	—	(2,746)	—
Consolidated	2022	$159,443	$113,619	$34,212	$11,612	$70,049
	2021	$154,073	$95,782	$28,868	$29,423	$58,267
The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2022 Second Quarter Report	Page 10
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SEGMENTED INFORMATION (continued)

Six Months Ended June 30, 2022 and 2021		Revenue	Cost of sales	Depletion, depreciation, and amortization	Mine operating earnings (loss)	Capital expenditures
Mexico
San Dimas	2022	$116,196	$64,835	$22,321	$29,040	$27,259
	2021	132,481	65,653	21,340	45,488	29,984
Santa Elena	2022	92,218	52,215	12,312	27,691	26,510
	2021	50,443	36,906	7,509	6,028	31,550
La Encantada	2022	36,830	21,731	4,112	10,987	4,938
	2021	42,821	21,820	3,895	17,106	5,554
Non-producing Properties	2022	—	—	208	(208)	412
	2021	—	—	235	(235)	1,168
United States
Jerritt Canyon	2022	73,284	87,354	24,422	(38,492)	42,978
	2021	34,856	31,713	10,299	(7,156)	8,114
Others(1)	2022	6,922	3,857	1,393	1,672	14,876
	2021	7,314	3,307	935	3,072	26,957
Intercompany elimination	2022	(9,169)	(5,160)	—	(4,009)	—
	2021	(13,320)	(6,556)	—	(6,764)	—
Consolidated	2022	$316,281	$224,832	$64,768	$26,681	$116,974
	2021	$254,595	$152,843	$44,213	$57,539	$103,327

(1) The "Others" segment includes revenues of $6.9 million from coins and bullion sales of 248,698 silver ounces at an average price of $27.83 per ounce.

During the six months ended June 30, 2022, the Company had three (June 30, 2021 - three) customers that accounted for 99% (2021 - 100%) of its sales revenue, with one major metal broker accounting for 94% of total revenue (2021 - 91%).

At June 30, 2022 and <br>December 31, 2021			Mining Interests		Property, plant and equipment	Total <br>mining assets	Total <br>assets	Total liabilities
		Producing
Mexico
San Dimas	2022		216,189	$35,688	$100,177	$352,054	$457,293	$66,774
	2021		213,526	29,186	105,473	348,185	495,479	119,764
Santa Elena	2022		104,604	37,663	67,630	209,897	277,487	75,160
	2021		97,271	31,067	64,843	193,181	257,244	66,795
La Encantada	2022		27,075	3,844	22,798	53,717	107,571	33,413
	2021		25,827	4,640	20,680	51,147	114,634	35,245
Non-producing Properties	2022		84,223	33,280	25,706	143,209	227,521	35,237
	2021		106,215	38,752	27,180	172,147	215,725	31,760
United States
Jerritt Canyon	2022		401,938	86,279	169,511	657,728	753,136	246,369
	2021		362,811	104,431	172,857	640,099	733,725	233,484
Others	2022		—	35,134	69,406	104,540	211,747	213,536
	2021		—	34,804	58,204	93,008	308,182	226,970
Consolidated	2022		834,029	$231,889	$455,228	$1,521,145	$2,034,755	$670,489
	2021		805,649	$242,881	$449,237	$1,497,767	$2,124,989	$714,018

All values are in US Dollars.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 11
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
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Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

REVENUES

The majority of the Company’s revenues are from the sale of precious metals contained in doré form. The Company’s primary products are precious metals of silver and gold. Revenues from the sale of metal, including by-products, are recorded net of smelting and refining costs.

Revenues for the period are summarized as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Gross revenue from payable metals:
Silver	62,090	%	85,911	%	124,245	%	158,763	%
Gold	98,009	%	68,949	%	193,337	%	97,287	%
Gross revenue	160,099	%	154,860	%	317,582	%	256,050	%
Less: smelting and refining costs	(656)		(787)		(1,301)		(1,455)
Revenues	159,443		154,073		316,281		254,595

All values are in US Dollars.

As at June 30, 2022, the Company had $5.9 million of unearned revenue (December 31, 2021 - $12.2 million) that has not satisfied performance obligations.

(a)Gold Stream Agreement with Sandstorm Gold Ltd.

The Santa Elena mine is subject to a gold streaming agreement with Sandstorm Gold Ltd. (“Sandstorm”), which requires the Company to sell 20% of its gold production over the life of mine from its leach pad and a designated area of its underground operations at the Santa Elena mine. The selling price to Sandstorm is the lesser of the prevailing market price or $450 per ounce, subject to a 1% annual inflation. During the three and six months ended June 30, 2022, the Company delivered 864 and 1,484 ounces (2021 - 1,669 and 2,870 ounces), respectively, of gold to Sandstorm at an average price of $473 and $471 per ounce (2021 - $468 and $466 per ounce), respectively.

(b) Net Smelter Royalty

The Santa Elena mine has a net smelter royalty ("NSR") agreement with Orogen Royalties Inc. that requires a 2% NSR from the production of the Ermitaño property. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR from the sale of mineral products extracted from the Ermitaño property. For the three and six months ended June 30, 2022, the Company has incurred $1.3 million and $2.6 million (2021 - $nil) in NSR from the production of Ermitaño.

In 2018, the San Dimas mine entered into a purchase agreement with Wheaton Precious Metals International ("WPMI"), a wholly owned subsidiary of Wheaton Precious Metals Corp., which entitles WPMI to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment) and the prevailing market price for each gold equivalent ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as at June 30, 2022 was 70:1.

During the three and six months ended June 30, 2022, the Company delivered 10,633 and 20,703 ounces (2021 - 11,214 and 21,487 ounces) of gold, respectively, to WPMI at $624 and $621 (2021 - $618 and $615) per ounce, respectively.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 12
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

COST OF SALES

Cost of sales excludes depletion, depreciation and amortization and are costs that are directly related to production and generation of revenues at the operating segments. Significant components of cost of sales are comprised of the following:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Consumables and materials	$26,277	$17,264	$51,907	$28,040
Labour costs	51,528	51,204	110,608	84,051
Energy	13,768	12,624	26,093	21,256
Other costs(1)	11,950	5,611	18,859	8,651
Production costs	$103,523	$86,703	$207,467	$141,998
Transportation and other selling costs	915	727	1,284	1,389
Workers participation costs	4,531	2,696	7,241	6,363
Environmental duties and royalties	2,878	1,068	5,647	1,641
Finished goods inventory changes	(1,345)	4,301	76	1,165
Other (2)	3,117	287	3,117	287
Cost of Sales	$113,619	$95,782	$224,832	$152,843

(1) Other costs include insurance, stockpile and work-in-process inventory changes, as well as services.

(2) Other includes $3.1 million in costs that were incurred as a result of marginal ore material that was processed to keep the mill running at minimum feed requirements to perform government mandated air compliance test work at the Jerritt Canyon Gold mine.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses are incurred to support the administration of the business that are not directly related to production. Significant components of general and administrative expenses are comprised of the following:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Corporate administration	$2,457	$1,947	$4,295	$3,431
Salaries and benefits	3,510	3,164	9,186	6,260
Audit, legal and professional fees	2,593	1,012	4,635	2,668
Filing and listing fees	188	156	314	244
Directors fees and expenses	221	215	420	392
Depreciation	411	407	812	867
	$9,380	$6,901	$19,662	$13,862
The accompanying notes are an integral part of the condensed interim consolidated financial statements
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First Majestic Silver Corp. 2022 Second Quarter Report	Page 13
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

MINE HOLDING COSTS

The Company’s mine holding costs are primarily comprised of labour costs associated with care and maintenance staff, electricity, security, environmental and community support costs for the following mines which are currently under temporary suspension:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
La Parrilla	$546	$717	$1,615	$1,750
Del Toro	580	794	1,226	1,763
San Martin	993	321	1,586	1,340
La Guitarra(1)	311	527	1,168	1,375
	$2,430	$2,359	$5,595	$6,227

(1) On May 24, 2022, there was an announcement for the proposed sale of the La Guitarra mine (Note 15), upon which the mine was classified as an asset held-for-sale ("AHFS").

INVESTMENT AND OTHER INCOME (LOSS)

The Company’s investment and other income (loss) are comprised of the following:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Gain from investment in silver futures derivatives	$—	$593	$2,888	$593
(Loss) gain from investment in marketable securities<br><br>(Note 14(a))	(3,303)	3,567	(3,849)	2,278
Loss on write-down of assets held-for-sale(1)	—	—	—	(2,081)
Interest income and other	(615)	169	(325)	389
	($3,918)	$4,329	($1,286)	$1,179

(1) In March 2021, the Company entered into an agreement with Condor Gold PLC ("Condor") to sell its AG Mill equipment for gross proceeds of $6.5 million, including $3.5 million in cash and $3.0 million in common shares of Condor. During the six months ended June 30, 2021, recognized a loss of $2.1 million, being the difference between the proceeds of disposal and the carrying amount of the project's net assets, as loss on write-down of assets held-for-sale.

FINANCE COSTS

Finance costs are primarily related to interest and accretion expense on the Company’s debt facilities, lease liabilities and accretion of decommissioning liabilities. The Company’s finance costs in the periods are summarized as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Debt facilities(1) (Note 21)	$2,507	$2,541	$4,889	$5,211
Accretion of decommissioning liabilities	1,510	927	3,016	1,567
Lease liabilities (Note 22)	506	500	1,041	871
Silver sales and other	312	159	479	251
	$4,835	$4,127	$9,425	$7,900

(1) During the three and six month periods ended June 30, 2022, finance costs for debt facilities include non-cash accretion expense of $2.3 million (2021- $1.7 million) and $4.4 million (2021 - $3.4 million), respectively.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 14
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

EARNINGS OR LOSS PER SHARE

Basic earnings or loss per share is the net earnings or loss available to common shareholders divided by the weighted average number of common shares outstanding during the periods. Diluted net earnings or loss per share adjusts basic net earnings per share for the effects of potential dilutive common shares. The calculations of basic and diluted earnings or loss per share for the periods ended June 30, 2022 and 2021 are as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Net (loss) earnings for the periods	($84,050)	$15,599	($76,765)	$17,454
Weighted average number of shares on issue - basic	262,680,950	242,781,479	261,447,267	232,718,998
Impact of effect on dilutive securities:
Stock options	—	2,316,272	—	2,397,128
Restricted, performance and deferred share units	—	740,243	—	740,243
Weighted average number of shares on issue - diluted(1)	262,680,950	245,837,994	261,447,267	235,856,369
(Loss) earnings per share - basic	($0.32)	$0.06	($0.29)	$0.08
(Loss) earnings per share - basic and diluted	($0.32)	$0.06	($0.29)	$0.07

(1)For the six months ended June 30, 2022, diluted weighted average number of shares excluded 4,272,575 (2021 - 1,231,523) options, 5,000,000 (2021 - 5,000,000) warrants, 1,293,862 restricted and performance share units (2021 - nil), nil (2021 - 16,327,598) common shares issuable under the 2018 convertible debentures (Note 21(a)) and 13,888,895 common shares issuable under the 2021 convertible debentures (2021- nil) (Note 21(a)) that were anti-dilutive.

INVENTORIES

Inventories consist primarily of materials and supplies and products of the Company’s operations, in varying stages of the production process, and are presented at the lower of weighted average cost or net realizable value.

	June 30,<br>2022	December 31,<br>2021
Finished goods - doré	$5,694	$3,735
Work-in-process	8,335	6,409
Stockpile	5,295	9,015
Silver coins and bullion	12,810	10,790
Materials and supplies	34,478	30,664
	$66,612	$60,613

The amount of inventories recognized as an expense during the period is equivalent to the total of cost of sales plus depletion, depreciation and amortization for the period. As at June 30, 2022, mineral inventories, which consist of stockpile, work-in-process and finished goods includes a $1.9 million write down (December 2021 - $7.5 million) which was recognized in cost of sales during the quarter.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 15
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

OTHER FINANCIAL ASSETS

As at June 30, 2022, other financial assets consists of the Company’s investment in marketable securities comprised of the following:

	June 30,<br>2022	December 31,<br>2021
FVTPL marketable securities (a)	$7,436	$10,851
FVTOCI marketable securities (b)	8,517	15,635
Total other financial assets	$15,953	$26,486

(a)Fair Value through Profit or Loss ("FVTPL") Marketable Securities

Loss in marketable securities designated as FVTPL for the three and six months ended June 30, 2022 was $3.3 million (2021- gain of $3.6 million) and $3.8 million (2021 - gain of $2.3 million), respectively, and were recorded through profit or loss.

(b)Fair Value through Other Comprehensive Income ("FVTOCI") Marketable Securities

Changes in fair value of marketable securities designated as FVTOCI for the three and six months ended June 30,2022 was a loss of $9.2 million (2021 - loss of $1.0 million) and $7.6 million (2021 - loss of $6.4 million), net of tax, and were recorded through other comprehensive income and will not be transferred into earnings or loss upon disposition or impairment.

ASSETS HELD-FOR-SALE

On May 24, 2022, the Company announced that it entered into a share purchase agreement with Sierra Madre Gold and Silver Ltd. ("Sierra Madre"), to sell the La Guitarra Compañia Minera S.A. de C.V. ("La Guitarra") silver mine in Mexico for total consideration of approximately $35 million, consisting of 69,063,076 Sierra Madre shares at a deemed price of $0.51 per share. The closing of the transaction requires that Sierra Madre raise a minimum of $7.7 million (CAD $10 million) in a private placement concurrent or prior to the sale. Upon closing, First Majestic will also be granted a 2% net smelter royalty return ("NSR") on all mineral production from the La Guitarra concessions, with the NSR subject to a 1% buy-back option for $2 million. The transaction is expected to close in the second half of 2022. At June 30, 2022, the sale was considered highly probable; therefore, the assets and liabilities of La Guitarra were classified as assets and liabilities held for sale and presented separately under current assets and current liabilities, respectively. Immediately prior to the classification to asset and liabilities held for sale, the carrying amount of La Guitarra was remeasured to its recoverable amount, being its fair value less cost of disposal ("FVLCD"), based on the expected proceeds from the sale. As a result, the Company has recorded a reversal of impairment loss related to the La Guitarra assets of $7.6 million based on the recoverable amount implied by the share purchase agreement.

During the quarter ended June 30, 2022, out of the impairment reversal of $7.6 million related to La Guitarra, $5.8 million was allocated to depletable mining interest, $1.6 million was allocated to non-depletable mining interest with the remaining $0.3 million allocated to property, plant and equipment, resulting in an impairment reversal of $5.0 million, net of a $2.7 million adjustment to the deferred tax liability. The recoverable amount of La Guitarra, being its FVLCD, was $34.9 million based on the expected proceeds from the sale.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 16
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

ASSETS HELD-FOR-SALE (continued)

The components of assets and liabilities held for sale relating to La Guitarra are as follows:

	As at June 30, 2022
Assets:
Cash and cash equivalents	$4,670
Trade and other receivables	1,446
Inventory	444
Prepaid expenses and other	46
Current assets	6,606
Non-Current Assets:
Mineral Interests - depletable	27,836
Mineral Interests - non-depletable	7,423
Property, plant and equipment	1,179
Right of use assets	18
Deposits on long-term assets	25
Total assets held-for-sale	$43,087
Liabilities:
Trade payables and accrued liabilities	$134
Current portion of lease obligations	9
Current Liabilities	143
Non-Current Liabilities:
Deferred tax liabilities	5,243
Lease obligations	17
Decommissioning liabilities	2,760
Total liabilities relating to assets held-for-sale	$8,163
Net assets held for sale	$34,924

The La Guitarra mine is presented in the non-producing properties reportable segment (Note 5, 16 and 17 ).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 17
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

MINING INTERESTS

Mining interests primarily consist of acquisition, development, exploration and exploration potential costs directly related to the Company’s operations and projects. Upon commencement of commercial production, mining interests for producing properties are depleted on a units-of-production basis over the estimated economic life of the mine. In applying the units of production method, depletion is determined using quantity of material extracted from the mine in the period as a portion of total quantity of material, based on reserves and resources, considered to be highly probable to be economically extracted over the life of mine plan.

The Company’s mining interests are comprised of the following:

	June 30,<br>2022	December 31,<br>2021
Depletable properties	$834,029	$805,649
Non-depletable properties (exploration and evaluation costs, exploration potential)	231,889	242,881
	$1,065,918	$1,048,530

Depletable properties are allocated as follows

Depletable properties	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Non-producing<br><br>Properties(1)	Total
Cost
At December 31, 2020	$250,093	$73,292	$118,312	$—	$497,191	$938,888
Additions	34,894	16,150	2,546	16,618	—	70,208
Acquisition of Jerritt Canyon (Note 4)	—	—	—	340,652	—	340,652
Change in decommissioning liabilities	1,209	2,177	584	28,799	(2,622)	30,147
Transfer from non-depletable properties	—	34,302	1,293	—	—	35,595
At December 31, 2021	$286,196	$125,921	$122,735	$386,069	$494,569	$1,415,490
Additions	17,385	13,355	1,274	23,743	—	55,757
Reclassification to asset held-for-sale (Note 15)	—	—	—	—	(110,341)	(110,341)
Transfer from non-depletable properties	—	—	2,098	30,503	—	32,601
At June 30, 2022	$303,582	$139,276	$126,107	$440,315	$384,227	$1,393,507
Accumulated depletion, amortization and impairment reversal
At December 31, 2020	($45,502)	($20,400)	($92,447)	$—	($388,354)	($546,703)
Depletion and amortization	(27,169)	(8,250)	(4,461)	(23,258)	—	(63,138)
At December 31, 2021	($72,671)	($28,650)	($96,908)	($23,258)	($388,354)	($609,841)
Depletion and amortization	(14,722)	(6,023)	(2,124)	(15,118)	—	(37,987)
Reversal of impairment (Note 15)	—	—	—	—	5,845	5,845
Reclassification to asset held-for-sale(Note 15)	—	—	—	—	82,505	82,505
At June 30, 2022	($87,393)	($34,673)	($99,032)	($38,376)	($300,004)	($559,478)
Carrying values
At December 31, 2021	$213,526	$97,271	$25,827	$362,811	$106,215	$805,649
At June 30, 2022	$216,189	$104,604	$27,075	$401,938	$84,223	$834,029

(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines. The net book value of La Guitarra classified as an asset held-for-sale is $27.8 million.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 18
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

MINING INTERESTS (continued)

Non-depletable properties costs are allocated as follows:

Non-depletable properties	San Dimas(a)	Santa Elena(b)	La Encantada	Jerritt Canyon(c)	Non-producing<br><br>Properties(1)	Exploration Projects(2)	Springpole<br><br>Stream(d)	Total
At December 31, 2020	$17,179	$33,951	$2,955	$—	$37,004	$22,099	$4,356	$117,545
Exploration and evaluation expenditures	12,007	31,418	2,978	12,424	1,748	985	7,500	69,060
Change in decommissioning liabilities	—	—	—	—	—	(136)	—	(136)
Acquisition of Jerritt Canyon (Note 4)	—	—	—	92,007	—	—	—	92,007
Transfer to depletable properties	—	(34,302)	(1,293)	—	—	—	—	(35,595)
At December 31, 2021	$29,186	$31,067	$4,640	$104,431	$38,752	$22,948	$11,856	$242,881
Exploration and evaluation expenditures	6,502	6,596	1,302	12,351	386	330	—	27,468
Reversal of impairment (Note 15)	—	—	—	—	1,564	—	—	1,564
Reclassification to asset held-for-sale (Note 15)	—	—	—	—	(7,423)	—	—	(7,423)
Transfer to depletable properties	—	—	(2,098)	(30,503)	—	—	—	(32,601)
At June 30, 2022	$35,688	$37,663	$3,844	$86,279	$33,279	$23,278	$11,856	$231,889

(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines. The net book value of La Guitarra classified as an asset held-for-sale is $7.4 million.

(2) Exploration projects include the La Luz, La Joya, Los Amoles, Jalisco Group of Properties and Jimenez del Tuel projects, as well as the Plomosas project which was sold during 2020.

(a)San Dimas Silver/Gold Mine, Durango State, Mexico

The San Dimas Mine is subject to a gold and silver streaming agreement with WPMI which entitles WPMI to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment commencing in May 2019) and the prevailing market price for each gold ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as at June 30, 2022 was 70:1.

(b)Santa Elena Silver/Gold Mine, Sonora State, Mexico

The Santa Elena Mine is subject to a gold streaming agreement with Sandstorm, which requires the mine to sell 20% of its life of mine gold production from its leach pad and a designated area of its underground operations of the Santa Elena mine to Sandstorm. The selling price to Sandstorm is currently the lesser of $464 per ounce, subject to a 1% annual inflation increase every April, and the prevailing market price.

The Santa Elena mine has a net smelter royalty ("NSR") agreement with Orogen Royalties Inc. that requires a 2% NSR from the production of the Ermitaño property. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR from the sale of mineral products extracted from the Ermitaño property. During the three and six months ended June 30, 2022, the Company has incurred $1.3 million and $2.6 million (2021 - $nil) in NSR from the production of Ermitaño.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 19
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

MINING INTERESTS (continued)

The Jerritt Canyon Mine is subject to a 0.5% NSR royalty on production of gold and silver from the Jerritt Canyon mines and processing plant. The royalty is applied, at a fixed rate of 0.5%, against proceeds from gold and silver products after deducting treatment, refining, transportation, insurance, taxes and levies charges.

The Jerritt Canyon Mine is also subject to a 2.5% to 5% NSR royalty relating to the production of gold and silver within specific boundary lines at certain mining areas. The royalty is applied, at a fixed rate of 2.5% to 5.0%, against proceeds from gold and silver products.

As at June 30, 2022, total NSR royalty accrual outstanding was $0.4 million (2021 -$nil).

(d) Springpole Silver Stream, Ontario, Canada

In July 2020, the Company completed an agreement with First Mining Gold Corp. (“First Mining”) to purchase 50% of the life of mine payable silver produced from the Springpole Gold Project ("Springpole Silver Stream"), a development stage mining project located in Ontario, Canada. First Majestic agreed to pay First Mining consideration of $22.5 million in cash and shares, in three milestone payments, for the right to purchase silver at a price of 33% of the silver spot price per ounce, to a maximum of $7.50 per ounce (subject to annual inflation escalation of 2%, commencing at the start of the third anniversary of production). Commencing with its production of silver, First Mining must deliver 50% of the payable silver which it receives from the offtaker within five business days of the end of each quarter.

Transaction consideration paid and payable by First Majestic is summarized as follows:

•The first payment of $10.0 million, consisting of $2.5 million in cash and $7.5 million in First Majestic shares (805,698 common shares), was paid to First Mining on July 2, 2020;

•The second payment, consisting of $3.75 million in cash and $3.75 million in First Majestic shares (287,300 common shares), was paid on January 21, 2021 upon the completion and public announcement by First Mining of the results of a Pre-Feasibility Study for Springpole; and

•The third payment, consisting of $2.5 million in cash and $2.5 million in First Majestic shares (based on 20 days volume weighted average price), will be paid upon receipt by First Mining of a Federal or Provincial Environmental Assessment approval for Springpole, which has not yet been received.

In connection with the agreement, First Mining also granted First Majestic 30 million common share purchase warrants, each of which will entitle the Company to purchase one common share of First Mining at CAD$0.40 over a period of five years. The fair value of the warrants was measured at $5.7 million using the Black-Scholes option pricing model.

First Mining shall have the right to repurchase 50% of the silver stream for $22.5 million at any time prior to the commencement of production at Springpole leaving the Company with a reduced silver stream of 25% of life of mine payable silver production.

As at June 30, 2022, the Company has paid $17.5 million in consideration to First Mining as part of the agreement, of which $5.7 million was allocated to other financial assets and $11.8 million was allocated to the Springpole Silver Stream recognized within exploration and evaluation assets.

First Mining is a related party with two independent board members who are also directors and/or officers of First Majestic.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 20
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

PROPERTY, PLANT AND EQUIPMENT

The majority of the Company's property, plant and equipment is used in the Company's operating mine segments. Property, plant and equipment is depreciated using either the straight-line or units-of-production method over the shorter of the estimated useful life of the asset or the expected life of mine. Where an item of property, plant and equipment comprises of major components with different useful lives, the components are accounted for as separate items of property, plant and equipment. Assets under construction are recorded at cost and re-allocated to land and buildings, machinery and equipment or other when they become available for use.

Property, plant and equipment are comprised of the following:

	Land and Buildings(1)	Machinery and Equipment	Assets under Construction(2)(3)	Other	Total
Cost
At December 31, 2020	$199,329	$468,624	$55,669	$28,651	$752,273
Additions	34	2,974	77,151	341	80,500
Acquisition of Jerritt Canyon (Note 4)	32,992	137,219	4,337	1,179	175,727
Transfers and disposals	12,602	15,645	(46,706)	3,412	(15,047)
At December 31, 2021	$244,957	$624,462	$90,451	$33,583	$993,453
Additions	—	1,991	31,497	260	33,748
Reclassification to asset held-for-sale (Note 15)	(8,246)	(16,158)	(24)	(912)	(25,340)
Transfers and disposals	16,570	8,925	(30,415)	3,642	(1,278)
At June 30, 2022	$253,281	$619,220	$91,509	$36,573	$1,000,583
Accumulated depreciation, amortization and impairment reversal
At December 31, 2020	($133,156)	($343,379)	$—	($17,518)	($494,053)
Depreciation and amortization	(13,923)	(33,137)	—	(2,899)	(49,959)
Transfers and disposals	—	1,637	—	240	1,877
Loss on disposal of equipment	—	—	—	(2,081)	(2,081)
At December 31, 2021	($147,079)	($374,879)	$—	($22,258)	($544,216)
Depreciation and amortization	(5,780)	(19,198)	—	(1,693)	(26,671)
Impairment reversal (Note 15)	252	—	—	—	252
Reclassification to asset held-for-sale (Note 15)	7,725	15,672	—	764	24,161
Transfers and disposals	—	1,081	—	38	1,119
At June 30, 2022	($144,882)	($377,324)	$—	($23,149)	($545,355)
Carrying values
At December 31, 2021	$97,878	$249,583	$90,451	$11,325	$449,237
At June 30, 2022	$108,399	$241,896	$91,509	$13,424	$455,228

(1) Included in land and buildings is $11.2 million (2021 - $11.2 million) of land which is not subject to depreciation.

(2) Assets under construction includes certain innovation projects, such as high-intensity grinding ("HIG") mills and related modernization, the Santa Elena dual circuit project, plant improvements, other mine infrastructures and equipment overhauls.

(3) Transfers and disposals in construction in progress includes the sale of the AG mill and certain mill equipment to Condor Gold PLC and Capstone Mining Corp. as disclosed in Note 10.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 21
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

PROPERTY, PLANT AND EQUIPMENT (continued)

Property, plant and equipment, including land and buildings, machinery and equipment, assets under construction and other assets above are allocated by mine as follow:

	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Non-producing<br><br>Properties(1)	Other	Total
Cost
At December 31, 2020	$146,728	$97,331	$143,510	$—	$293,761	$70,943	$752,273
Additions	9,484	19,885	5,831	17,366	229	27,705	80,500
Acquisition of Jerritt Canyon (Note 4)	—	—	—	175,727	—	—	175,727
Transfers and disposals	2,316	5,381	1,377	(8)	(8,184)	(15,929)	(15,047)
At December 31, 2021	$158,528	$122,597	$150,718	$193,085	$285,806	$82,719	$993,453
Additions(2)	3,372	6,559	2,362	6,884	26	14,545	33,748
Reclassification to asset held-for-sale (Note 15)	—	—	—	—	(25,340)	—	(25,340)
Transfers and disposals	(252)	456	1,532	424	(1,411)	(2,027)	(1,278)
At June 30, 2022	$161,648	$129,612	$154,612	$200,393	$259,081	$95,237	$1,000,583
Accumulated depreciation, amortization and impairment
At December 31, 2020	($34,623)	($48,086)	($126,955)	$—	($263,873)	($20,516)	($494,053)
Depreciation and amortization	(17,801)	(6,997)	(2,259)	(20,228)	(266)	(2,408)	(49,959)
Transfers and disposals	(631)	(2,671)	(824)	—	5,513	490	1,877
Write-down on assets held-for-sale	—	—	—	—	—	(2,081)	(2,081)
At December 31, 2021	($53,055)	($57,754)	($130,038)	($20,228)	($258,626)	($24,515)	($544,216)
Depreciation and amortization	(8,575)	(4,782)	(1,151)	(10,654)	(116)	(1,393)	(26,671)
Impairment reversal (Note 15)	—	—	—	—	252	—	252
Reclassification to asset held-for-sale (Note 15)	—	—	—	—	24,161	—	24,161
Transfers and disposals	159	554	(625)	—	954	77	1,119
At June 30, 2022	($61,471)	($61,982)	($131,814)	($30,882)	($233,375)	($25,831)	($545,355)
Carrying values
At December 31, 2021	$105,473	$64,843	$20,680	$172,857	$27,180	$58,204	$449,237
At June 30, 2022	$100,177	$67,630	$22,798	$169,511	$25,706	$69,406	$455,228

(1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines.

(2) Additions classified in "Other" primarily consist of innovation projects and construction-in-progress.

RIGHT-OF-USE ASSETS

The Company entered into operating leases to use certain land, building, mining equipment and corporate equipment for its operations. The Company is required to recognize right-of-use assets representing its right to use these underlying leased asset over the lease term.

Right-of-use assets are initially measured at cost, equivalent to its obligation for payments over the term of the leases, and subsequently measured at cost less accumulated depreciation and impairment losses. Depreciation is recorded on a straight-line basis over the shorter period of lease term and useful life of the underlying asset.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 22
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

RIGHT-OF-USE ASSETS (continued)

Right-of-use assets are comprised of the following:

	Land and Buildings	Machinery and Equipment	Other	Total
At December 31, 2020	$8,087	$6,234	$8	$14,330
Additions	1,294	17,560	—	18,854
Remeasurements	363	1,668	—	2,031
Depreciation and amortization	(1,325)	(4,520)	(7)	(5,851)
Disposals	(117)	(23)	—	(139)
At December 31, 2021	$8,302	$20,921	$2	$29,225
Additions	1,519	609	14	2,142
Remeasurements	759	88	(2)	845
Depreciation and amortization	(732)	(3,034)	(2)	(3,768)
Transfer to asset held-for-sale(Note 15)	(19)	—	—	(19)
At June 30, 2022	$9,830	$18,583	$12	$28,425

RESTRICTED CASH

Restricted cash is comprised of the following:

	June 30,<br>2022	December 31,<br>2021
Nevada Division of Environmental Protection bond(1)	$39,132	$—
Collateral for bond(1)	5,000	—
Escrowed Funds for the acquisition of Jerritt Canyon	—	12,570
Current Restricted Cash	44,131	12,570
Nevada Division of Environmental Protection bond(1)	595	39,727
Chartis Commutation Account(2)	27,279	27,275
SAT Primero tax dispute(3)	69,614	48,010
Non-Current Restricted Cash	97,488	115,012
Total Restricted Cash	$141,619	$127,582

1.Current Restricted Cash includes $39.1 million related to the cash bonds held with the Nevada Division of Environmental Protection (“NDEP”) and the US Forestry Service (“USFS”) which were replaced with surety bonds to fund ongoing reclamation and mine closure obligations. As part of this agreement, the Company made a $5 million collateral payment, of which subsequent to June 30th, was replaced by a letter of credit. The NDEP and USFS have provided correspondence confirming that the funds will be returned to the Company in the third quarter of 2022 therefore, the total of $44.1 million, has been re-classified to current restricted cash at June 30, 2022. Upon receipt of these funds from the NDEP and USFS, the total current restricted cash balance of $44.1 million will be reclassified to cash and cash equivalents.

2.The Company owns an environmental risk transfer program (the "ERTP") for Jerritt Canyon from American Insurance Group ("AIG"). As part of the ERTP, $27.3 million is on deposit in an interest-bearing account with AIG (the "Commutation Account"). The Commutation Account principal plus interest earned on the principal is used to fund ongoing reclamation and mine closure obligations. The Company can elect to extinguish all rights under the policy, which would release AIG from reclamation cost and financial assurance liabilities, and substitute with replacement bonds. AIG would pay Jerritt Canyon the remaining balance in the Commutation Account.

3.In connection with the dispute between Primero Empresa Minera, S.A. de C.V. ("PEM") and the Servicio de Admistracion Tributaria ("SAT") in relation to the advanced pricing agreement (Note 26), the tax authority has frozen a PEM bank account with funds of $69.6 million (1,391 million MXN) as a guarantee against certain disputed tax assessments. This balance consists of Value Added Tax ("VAT") refunds that the Company has received which were previously withheld by the tax authority. The Company does not agree with SAT's position and has challenged it through the relevant legal channels.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 23
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

TRADE AND OTHER PAYABLES

The Company’s trade and other payables are primarily comprised of amounts outstanding for purchases relating to mining operations, exploration and evaluation activities and corporate expenses. The normal credit period for these purchases is usually between 30 to 90 days.

Trade and other payables are comprised of the following items:

	June 30,<br>2022	December 31,<br>2021
Trade payables	$31,430	$41,827
Trade related accruals	39,930	30,621
Payroll and related benefits	20,247	28,162
Estimated Triggered Tax Adjustment and Working Capital Adjustment payable, net (Note 4)	—	12,570
NSR royalty liabilities (Notes 16(b)(c))	2,864	1,147
Environmental duty and net mineral sales proceeds tax	1,837	3,281
Other accrued liabilities	5,357	3,058
	$101,665	$120,666
The accompanying notes are an integral part of the condensed interim consolidated financial statements
---	---
First Majestic Silver Corp. 2022 Second Quarter Report	Page 24
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

DEBT FACILITIES

The movement in debt facilities during the six months ended June 30, 2022 and year ended December 31, 2021, respectively, are comprised of the following:

	Convertible Debentures<br>(a)	Revolving Credit Facility <br>(b)	Total
Balance at December 31, 2020	$142,825	$9,883	$152,708
Gross proceeds from debt financing	$230,000	$—	$230,000
Portion allocated to equity reserves from debt financing	(42,340)	—	(42,340)
Finance costs
Interest expense	2,846	537	3,383
Accretion	6,809	349	7,158
Proceeds from drawdown of revolving credit facility	—	30,000	30,000
Repayments of principal	(125,576)	(40,000)	(165,576)
Conversion of senior convertible notes to common shares	(23,230)	—	(23,230)
Transaction costs	(7,224)	(101)	(7,325)
Payments of finance costs	(2,932)	(612)	(3,544)
Balance at December 31, 2021	$181,178	$56	$181,234
Finance costs
Interest expense	398	209	607
Accretion	4,282	—	4,282
Payments of finance costs	—	(124)	(124)
Balance at June 30, 2022	$185,858	$141	$185,999
Statements of Financial Position Presentation
Current portion of debt facilities	$69	$56	$125
Non-current portion of debt facilities	181,108	—	181,108
Balance at December 31, 2021	$181,178	$56	$181,234
Current portion of debt facilities	$464	$141	$605
Non-current portion of debt facilities	185,394	—	185,394
Balance at June 30, 2022	$185,858	$141	$185,999

(a)Convertible Debentures

2021 Senior Convertible Debentures

On December 2, 2021, the Company issued $230 million of unsecured senior convertible debentures (the “Notes”). The Company received net proceeds of $222.8 million after transaction costs of $7.2 million. The Notes mature on January 15, 2027 and bear an interest rate of 0.375% per annum, payable semi-annually in arrears in January and July of each year.

The Notes are convertible into common shares of the Company at any time prior to maturity at a conversion rate of 60.3865 common shares per $1,000 principal amount of Notes converted, representing an initial conversion price of $16.56 per common share, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the Notes may be entitled to an increased conversion rate.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 25
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

DEBT FACILITIES (continued)

(a)Convertible Debentures (continued)

The Company may not redeem the Notes before January 20, 2025 except in the event of certain changes in Canadian tax law. At any time on or after January 20, 2025 and until maturity, the Company may redeem all or part of the Notes for cash if the last reported share price of the Company’s common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price in effect on each such trading day. The redemption price is equal to the sum of: (i) 100% of the principal amount of the Notes to be redeemed and (ii) accrued and unpaid interest, if any, to the redemption date.

The Company is required to offer to purchase for cash all of the outstanding Notes upon a fundamental change, at a cash purchase price equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, to the fundamental change purchase date.

The component parts of the convertible debentures, a compound instrument, are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Company's own equity instrument is an equity instrument.

At initial recognition, net proceeds of $222.8 million from the Notes were allocated into its debt and equity components. The fair value of the debt portion was estimated at $180.4 million using a discounted cash flow model method with an expected life of five years and a discount rate of 4.75%. This amount is recorded as a financial liability on an amortized cost basis using the effective interest method using an effective interest rate of 5.09% until extinguished upon conversion or at its maturity date.

The conversion option is classified as equity and was estimated based on the residual value of $42.3 million. This amount is not subsequently remeasured and will remain in equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to share capital. Where the conversion option remains unexercised at the maturity date of the convertible note, the balance will remain in equity reserves. Deferred tax liability of $11.4 million related to taxable temporary difference arising from the equity portion of the convertible debenture was recognized in equity reserves.

Transaction costs of $7.2 million that relate to the issuance of the convertible debentures were allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component and are amortized over the life of the convertible debentures using the effective interest method.

A portion of the Notes proceeds received were used to redeem 125,231 of the 2018 Senior Convertible Notes ("Existing Notes") for total costs of $164.9 million. The total proceeds were allocated to the carrying value of the debt by $118.9 million and $41.8 million to equity reserves of these Existing Notes, resulting with a loss on the settlement of debt of $4.6 million. 24,219 of the remaining Existing Notes were converted to common shares by note holders at an adjusted conversion rate of 106.0528 common shares per $1,000 face value note, where $23.2 million were allocated to the carrying value of the debt and $4.1 million were transferred to share capital from equity reserves. Finally, 6,950 of the remaining notes were settled at par value with a payment in cash of $6.95 million; the cash paid was allocated to the carrying value of the debt by $6.6 million and $0.2 million to equity reserves. At December 31, 2021, the Existing Notes have been fully settled, with a remaining carrying value of $nil.

(b) Revolving Credit Facility

On March 31, 2022, the Company amended its senior secured revolving credit facility (the "Revolving Credit Facility") with the Bank of Nova Scotia, Bank of Montreal and Toronto Dominion Bank ("syndicate") by extending the maturity date from November 30, 2022 to March 31, 2025 and increasing the credit limit from $50.0 million to $100.0 million. Interest on the drawn balance will accrue at the Secured Overnight Financing Rate ("SOFR") plus an applicable range of 2.25% to 3.5% per annum while the undrawn portion is subject to a standby fee with an applicable range of 0.563% to 0.875% per annum, dependent on certain financial parameters of First Majestic. As at June 30, 2022, the applicable rates were 2.3% and 0.5625% per annum, respectively.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 26
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

DEBT FACILITIES (continued)

(b) Revolving Credit Facility (continued)

These debt facilities are guaranteed by certain subsidiaries of the Company and are also secured by a first priority charge against the assets of the Company, and a first priority pledge of shares of the Company’s subsidiaries.

The Revolving Credit Facility includes financial covenants, to be tested quarterly on a consolidated basis, requiring First Majestic to maintain the following: (a) a leverage ratio based on net indebtedness to rolling four quarters adjusted EBITDA of not more than 3.50 to 1.00; and (b) an interest coverage ratio, based on rolling four quarters adjusted EBITDA divided by interest payments, of not less than 4.00 to 1.00. The debt facilities also provide for negative covenants customary for these types of facilities and allows the Company to enter into finance leases, excluding any leases that would have been classified as operating leases in effect immediately prior to the implementation of IFRS 16 - Leases, of up to $50.0 million. As at June 30, 2022 and December 31, 2021, the Company was in compliance with these covenants.

LEASE LIABILITIES

The Company has finance leases, operating leases and equipment financing liabilities for various mine and plant equipment, office space and land. Finance leases and equipment financing obligations require underlying assets to be pledged as security against the obligations and all of the risks and rewards incidental to ownership of the underlying asset being transferred to the Company. For operating leases, the Company controls but does not have ownership of the underlying right-of-use assets.

Lease liabilities are initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Lease liabilities are subsequently measured at amortized cost using the effective interest rate method.

Certain lease agreements may contain lease and non-lease components, which are generally accounted for separately. For certain equipment leases, such as vehicles, the Company has elected to account for the lease and non-lease components as a single lease component.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 27
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

LEASE LIABILITIES (continued)

The movement in lease liabilities during the periods ended June 30, 2022 and December 31, 2021 are comprised of the following:

	Finance Leases	Operating Leases(a)	Equipment Financing(b)	Total
Balance at December 31, 2020	$—	$19,986	$589	$20,575
Acquisition of Jerritt Canyon (Note 4)	2,194	—	—	2,194
Additions	4,001	18,854	—	22,855
Remeasurements	—	2,031	—	2,031
Disposals	—	(150)	—	(150)
Finance costs	89	1,915	9	2,013
Repayments of principal	(942)	(7,824)	(521)	(9,287)
Payments of finance costs	(89)	—	(13)	(102)
Foreign exchange gain	—	(268)	—	(268)
Balance at December 31, 2021	$5,253	$34,544	$64	$39,861
Additions	1,810	2,142	—	3,952
Remeasurements	—	845	—	845
Finance costs	85	956	—	1,041
Repayments of principal	(1,209)	(4,725)	(64)	(5,998)
Payments of finance costs	(85)	—	—	(85)
Foreign exchange loss	—	252	—	252
Balance at June 30, 2022	$5,854	$34,014	$—	$39,868
Statements of Financial Position Presentation
Current portion of lease liabilities	$2,165	$9,596	$64	$11,825
Non-current portion of lease liabilities	3,088	24,948	—	28,036
Balance at December 31, 2021	$5,253	$34,544	$64	$39,861
Current portion of lease liabilities	$2,406	$9,987	$—	$12,393
Non-current portion of lease liabilities	3,448	24,027	—	27,475
Balance at June 30, 2022	$5,854	$34,014	$—	$39,868

(a) Operating leases

Operating leases primarily relate to equipment and building rental contracts, land easement contracts and service contracts that contain embedded leases for property, plant and equipment. These operating leases have remaining lease terms of one to ten years, some of which include options to terminate the leases within a year, with incremental borrowing rates ranging from 2.5% to 11.20% per annum.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 28
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

LEASE LIABILITIES (continued)

(b) Equipment financing

During 2017, the Company entered into a $7.9 million credit facility with repayment terms ranging from 12 to 16 equal quarterly installments in principal plus related interest. The facility bears an interest rate of LIBOR plus 4.60%. Proceeds from the equipment financing were primarily used for the purchase and rehabilitation of property, plant and equipment. The equipment financing is secured by certain equipment of the Company and is subject to various covenants, including the requirement for First Majestic to maintain a leverage ratio based on total debt to rolling four quarters adjusted EBITDA. As of June 30, 2022 and December 31, 2021, the Company was in compliance with these covenants.

As at June 30, 2022, the net book value of property, plant and equipment includes $nil (December 31, 2021 - $2.0 million) equipment pledged as security for the equipment financing.

SHARE CAPITAL

(a)Authorized and issued capital

The Company has unlimited authorized common shares with no par value.

The movement in the Company’s issued and outstanding capital during the periods is summarized in the consolidated statements of changes in equity.

	Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
	Number of Shares	Net Proceeds	Number of Shares	Net Proceeds
ATM program(1)	2,318,497	$30,580	3,000,000	49,068
	2,318,497	$30,580	3,000,000	49,068

(1) In May 2021, the Company filed prospectus supplements to its short form base shelf prospectus, pursuant to which the Company may, at its discretion and from time-to-time, sell common shares of the Company for aggregate gross proceeds of up to $100.0 million. The sale of common shares is to be made through “at-the-market distributions” ("ATM"), as defined in the Canadian Securities Administrators’ National Instrument 44-102 Shelf Distributions, directly on the New York Stock Exchange. During the six months ended June 30, 2022, the Company sold 2,318,497 (2021 - 3,000,000) common shares of the Company under the ATM program at an average price of $13.53 (2021 - $16.87) for gross proceeds of $31.4 million (2021 - $50.6 million), or net proceeds of $30.6 million (2021 - $49.1 million) after costs. At June 30, 2022, the Company completed $100 million of the ATM program.

(b)Stock options

On May 26, 2022, a new Long-Term Incentive Plan was adopted ("LTIP"). Under the terms of the Company’s LTIP, the maximum number of shares reserved for issuance under the LTIP is 6% of the issued shares on a rolling basis. Options may be exercisable over periods of up to ten years as determined by the Board of Directors of the Company and the exercise price shall not be less than the closing price of the shares on the day preceding the award date, subject to regulatory approval. All stock options granted are subject to vesting with 25% vesting on first anniversary from the date of grant, and 25% vesting each six months thereafter.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 29
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SHARE CAPITAL (continued)

(b)Stock options (continued)

The following table summarizes information about stock options outstanding as at June 30, 2022:

	Options Outstanding			Options Exercisable
Exercise prices (CAD$)	Number of<br>Options	Weighted Average Exercise Price (CAD $/Share)	Weighted Average Remaining Life (Years)	Number of<br>Options	Weighted Average Exercise Price (CAD $/Share)	Weighted Average Remaining Life (Years)
5.01 - 10.00	1,984,920	8.62	6.37	1,774,295	8.60	6.28
10.01 - 15.00	2,519,921	13.77	8.87	680,547	13.70	7.79
15.01 - 20.00	1,386,152	16.37	8.27	510,716	16.12	7.44
20.01 - 250.00	641,625	21.47	8.91	159,555	21.47	8.91
	6,532,618	13.51	7.99	3,125,113	11.60	6.93

The movements in stock options issued during the six months ended June 30, 2022 and year ended December 31, 2021 are summarized as follows:

	Six Months Ended		Year Ended
	June 30, 2022		December 31, 2021
	Number of<br>Options	Weighted Average Exercise Price (CAD $/Share)	Number of<br>Options	Weighted Average Exercise Price (CAD $/Share)
Balance, beginning of the period	5,638,383	13.29	7,074,092	12.07
Granted	1,765,000	14.14	1,400,000	18.98
Exercised	(401,498)	10.38	(2,502,234)	10.87
Cancelled or expired	(469,267)	15.89	(333,475)	29.45
Balance, end of the period	6,532,618	13.51	5,638,383	13.29

During the six months ended June 30, 2022, the aggregate fair value of stock options granted was $9.2 million (2021 - $9.9 million), or a weighted average fair value of $5.22 per stock option granted (2021 - $7.04).

During the six months ended June 30, 2022, total share-based payments expense related to stock options was $4.8 million (2021 - $8.8 million).

The following weighted average assumptions were used in estimating the fair value of stock options granted using the Black-Scholes Option Pricing Model:

		Six Months Ended	Year Ended
Assumption	Based on	June 30, 2022	December 31, 2021
Risk-free interest rate (%)	Yield curves on Canadian government zero- coupon bonds with a remaining term equal to the stock options’ expected life	1.60	1.04
Expected life (years)	Average of the expected vesting term and expiry term of the option	5.93	5.93
Expected volatility (%)	Historical and implied volatility of the precious metals mining sector	49.00	49.00
Expected dividend yield (%)	Annualized dividend rate as of the date of grant	1.64%	0.10%

The weighted average closing share price at date of exercise for the six months ended June 30, 2022 was CAD$13.51 (December 31, 2021 - CAD$13.29).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 30
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SHARE CAPITAL (continued)

On May 26, 2022, a new LTIP was adopted. The Company adopted the LTIP to allow the Company to grant to its directors, employees and consultants non-transferable Restricted Share Units ("RSU's") based on the value of the Company's share price at the date of grant. Unless otherwise stated, the awards typically have a graded vesting schedule over a three-year period and can be settled either in cash or equity upon vesting at the discretion of the Company. The Company intends to settle all RSU's in equity.

The associated compensation cost is recorded as share-based payments expense against equity reserves.

The following table summarizes the changes in RSU's for the six months ended June 30, 2022 and the year ended December 31, 2021:

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
	Number of shares	Weighted<br>Average<br>Fair Value <br>(CAD$)	Number of shares	Weighted<br>Average<br>Fair Value <br>(CAD$)
Outstanding, beginning of the period	400,549	16.77	184,483	15.66
Granted	494,006	13.21	312,991	17.19
Settled	(92,330)	16.45	(69,504)	15.79
Forfeited	(48,272)	15.18	(27,421)	16.56
Outstanding, end of the period	753,953	14.58	400,549	16.77

During the six months ended June 30, 2022, total share-based payments expense related to RSU's was $1.8 million (December 31, 2021 - $1.9 million).

(d) Performance Share Units

On May 26, 2022, a new LTIP was adopted. The Company adopted the LTIP to allow the Company to grant to its directors, employees and consultants non-transferable Performance Share Units ("PSU's"). The amount of units to be issued on the vesting date will vary from 0% to 200% of the number of PSU’s granted, depending on the Company’s total shareholder return compared to the return of a selected group of peer companies. Unless otherwise stated, the awards typically vest three years from the grant date. The fair value of a PSU is based on the value of the Company's share price at the date of grant and will be adjusted based on actual units issued on the vesting date. The Company intends to settle all PSU's in equity.

The following table summarizes the changes in PSU's granted to employees and consultants for the six months ended June 30, 2022 and the year ended December 31, 2021:

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
	Number of shares	Weighted<br>Average<br>Fair Value<br>(CAD$)	Number of shares	Weighted<br>Average<br>Fair Value<br>(CAD$)
Outstanding, beginning of the period	275,516	16.58	109,035	15.62
Granted	264,221	13.25	184,050	17.15
Forfeited	(50,429)	15.74	(17,569)	16.56
Outstanding, end of the period	489,308	14.87	275,516	16.58

During the six months ended June 30, 2022, total share-based payments expense related to PSU's was $0.7 million (year ended December 31, 2021 - $1.2 million).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 31
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SHARE CAPITAL (continued)

(e) Deferred Share Units

The Company adopted the 2019 Long-Term Incentive Plan ("2019 LTIP") to allow the Company to grant to its directors, employees and consultants non-transferrable Deferred Share Units ("DSU's"), in addition to options, RSU's and PSU's. Unless otherwise stated, the DSU awards typically vest immediately at the grant date. The fair value of a DSU is based on the value of the Company's share price at the date of grant. The Company intends to settle all DSU's under the 2019 LTIP in equity.

On March 23, 2022, a new DSU plan was adopted ("2022 DSU Plan"). All DSU's issued under the 2022 DSU Plan will be settled in cash. There were two grants made during the six months ended June 30, 2022 resulting with a total expense of $0.1 million.

The following table summarizes the changes in DSU's granted to directors for the six months ended June 30, 2022 and the year ended December 31, 2021:

	Six Months Ended June 30, 2022		Year Ended December 31, 2021
	Number of shares	Weighted<br>Average<br>Fair Value<br>(CAD$)	Number of shares	Weighted<br>Average<br>Fair Value<br>(CAD$)
Outstanding, beginning of the period	25,185	18.31	—	—
Granted	37,312	14.07	31,040	18.08
Settled	(11,896)	15.55	(5,855)	17.08
Outstanding, end of the period	50,601	15.83	25,185	18.31

During the six months ended June 30, 2022, total share-based payments expense related to DSU's was $0.4 million (year ended December 31, 2021 - $0.4 million).

(f) Share Repurchase Program and Share Cancellation

The Company has an ongoing share repurchase program to repurchase up to 5% of the Company’s issued and outstanding shares. The normal course issuer bids will be carried through the facilities of the Toronto Stock Exchange and alternative Canadian marketplaces. No shares were repurchased during the six months ended June 30, 2022 or during the year ended December 31, 2021 (Note 27).

During the year ended December 31, 2021, the Company cancelled 6,913 shares pursuant to section 4.4 of the plan of arrangement between Primero Mining Corp. ("Primero") and the Company with an effective date of May 10, 2018 that states that any former shareholder of Primero who does not surrender their shares on the third anniversary of the effective date would cease the right to any of the Company's shares and as such would automatically be cancelled.

(g) Dividends

The Company declared the following dividends during the six months ended June 30, 2022:

Declaration Date	Record Date	Dividend per Common Share
March 10, 2022	March 21, 2022	$0.0079
May 12, 2022	May 25, 2022	$0.0060
August 4, 2022(1)	August 16, 2022	$0.0061

(1) These dividends were declared subsequent to the period end and have not been recognized as distributions to owners during the period presented.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 32
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT

The Company’s financial instruments and related risk management objectives, policies, exposures and sensitivity related to financial risks are summarized below.

(a) Fair value and categories of financial instruments

Financial instruments included in the consolidated statements of financial position are measured either at fair value or amortized cost. Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in an arm’s-length transaction between knowledgeable and willing parties.

The Company uses various valuation techniques in determining the fair value of financial assets and liabilities based on the extent to which the fair value is observable. The following fair value hierarchy is used to categorize and disclose the Company’s financial assets and liabilities held at fair value for which a valuation technique is used.

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2: All inputs which have a significant effect on the fair value are observable, either directly or indirectly, for substantially the full contractual term.

Level 3: Inputs which have a significant effect on the fair value are not based on observable market data.

There were no transfers between levels 1, 2 and 3 during the six months ended June 30, 2022 and year ended December 31, 2021.

The table below summarizes the valuation methods used to determine the fair value of each financial instrument:

Financial Instruments Measured at Fair Value	Valuation Method
Marketable securities - common shares	Marketable securities and silver future derivatives are valued based on quoted market prices for identical assets in an active market (Level 1) as at the date of statements of financial position. Marketable securities - stock warrants are valued using the Black-Scholes model based on the observable market inputs (Level 2).
Marketable securities - stock warrants
Silver futures derivatives
Financial Instruments Measured at Amortized Cost	Valuation Method
Cash and cash equivalents	Approximated carrying value due to their short-term nature
Restricted cash
Trade and other receivables
Trade and other payables
Debt facilities	Approximated carrying value as discount rate on these
	instruments approximate the Company's credit risk.

The following table presents the Company’s fair value hierarchy for financial assets and financial liabilities that are measured at fair value:

	June 30, 2022						December 31, 2021
			Fair value measurement						Fair value measurement
	Carrying value		Level 1		Level 2		Carrying value		Level 1		Level 2
Financial assets
Marketable securities (Note 14)	$	15,953	$	14,303	$	1,650	$	26,486	$	22,531	$	3,955

The Company’s objectives when managing capital are to maintain financial flexibility to continue as a going concern while

optimizing growth and maximizing returns of investments from shareholders.

During the period ended June 30, 2022, an impairment reversal was recorded for the La Guitarra mine, bringing the carrying value of the asset up to its recoverable amount, being its FVLCD. The valuation technique used in the calculation of this fair value is categorized as Level 1 as it is based on the selling price in the market (Note 15).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 33
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(b) Capital risk management

The Company monitors its capital structure and, based on changes in operations and economic conditions, may adjust the structure by repurchasing shares, issuing new shares, issuing new debt or retiring existing debt. The Company prepares annual budget and quarterly forecasts to facilitate the management of its capital requirements. The annual budget is approved by the Company’s Board of Directors.

The capital of the Company consists of equity (comprising of issued capital, equity reserves and retained earnings or accumulated deficit), debt facilities, lease liabilities, net of cash and cash equivalents as follows:

	June 30,<br>2022	December 31,<br>2021
Equity	$1,364,266	$1,410,971
Debt facilities	185,999	181,233
Lease liabilities	39,868	39,861
Less: cash and cash equivalents	(117,721)	(237,926)
	$1,472,412	$1,394,139

The Company’s investment policy is to invest its cash in highly liquid short-term investments with maturities of 90 days or less, selected with regards to the expected timing of expenditures from operations. The Company expects that its available capital resources will be sufficient to carry out its development plans and operations for at least the next 12 months.

The Company is not subject to any externally imposed capital requirements with the exception of complying with covenants under the debt facilities (Note 21(b)) and lease liabilities (Note 22(b)). As at June 30, 2022 and December 31, 2021, the Company was in compliance with these covenants.

The Company thoroughly examines the various financial instruments and risks to which it is exposed and assesses the impact and likelihood of those risks. These risks may include credit risk, liquidity risk, currency risk, commodity price risk, and interest rate risk. Where material, these risks are reviewed and monitored by the Board of Directors.

Credit Risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Company’s credit risk relates primarily to chartered banks, trade receivables in the ordinary course of business, value added taxes receivable and other receivables.

As at June 30, 2022, VAT receivable was $38.4 million (December 31, 2021 - $47.1 million), of which $22.1 million (December 31, 2021 - $22.2 million) relates to Minera La Encantada S.A. de C.V. ("MLE") and $14.1 million (December 31, 2021 - $22.0 million) relates to PEM. The SAT commenced processing VAT refund requests by PEM in June 2021 and the Company expects the amounts to be refunded within the next twelve months.

The Company sells and receives payment upon delivery of its silver doré and by-products primarily through three international customers. All of the Company's customers have good ratings and payments of receivables are scheduled, routine and fully received within 60 days of submission; therefore, the balance of trade receivables owed to the Company

in the ordinary course of business is not significant.

The carrying amount of financial assets recorded in the consolidated financial statements represents the Company’s maximum exposure to credit risk. With the exception to the above, the Company believes it is not exposed to significant credit risk.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 34
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company manages liquidity risk by monitoring actual and projected cash flows and matching the maturity profile of financial assets and liabilities. Cash flow forecasting is performed regularly to ensure that there is sufficient capital in order to meet short-term business requirements, after taking into account cash flows from operations and our holdings of cash and cash equivalents.

The following table summarizes the maturities of the Company’s financial liabilities as at June 30, 2022 based on the undiscounted contractual cash flows:

	Carrying Amount	Contractual<br><br>Cash Flows	Less than <br>1 year	2 to 3<br>years	4 to 5<br>years	After 5 years
Trade and other payables	$101,665	$101,665	$101,665	$—	$—	$—
Debt facilities	185,999	235,500	1,425	2,709	231,366	—
Lease liabilities	39,868	43,318	12,380	21,795	8,080	1,063
Other liabilities	6,716	6,716	—	—	—	6,716
	$334,248	$387,199	$115,470	$24,504	$239,446	$7,779

At June 30, 2022, the Company had working capital of $199.8 million (December 31, 2021 – $224.4 million). Total available liquidity at June 30, 2022 was $299.8 million, including $100.0 million of undrawn revolving credit facility.

The Company believes it has sufficient cash on hand, combined with cash flows from operations, to meet operating requirements as they arise for at least the next 12 months. If the Company needs additional liquidity to meet obligations, the Company may consider drawing on its debt facility, securing additional debt financing and/or equity financing.

Currency Risk

The Company is exposed to foreign exchange risk primarily relating to financial instruments that are denominated in Canadian dollars or Mexican pesos, which would impact the Company’s net earnings or loss. To manage foreign exchange risk, the Company may occasionally enter into short-term foreign currency derivatives, such as forwards and options, to hedge its cash flows.

The sensitivity of the Company’s net earnings or loss and comprehensive income or loss due to changes in the exchange rates of the Canadian dollar and the Mexican peso against the U.S. dollar is included in the table below:

	June 30, 2022
	Cash and cash equivalents	Restricted cash	Value added taxes receivable	Other financial assets	Trade and other payables	Foreign exchange derivative	Net assets (liabilities) exposure	Effect of +/- 10% change in currency
Canadian dollar	$45,830	$4	$—	$4,308	($2,119)	$—	$48,023	$4,802
Mexican peso	15,050	69,506	34,761	—	(45,291)	20,000	94,026	9,403
	$60,880	$69,510	$34,761	$4,308	($47,410)	$20,000	$142,049	$14,205

The Company utilizes certain derivatives to manage its foreign exchange exposures to the Mexican Peso. During the three and six months ended June 30, 2022, the Company had an unrealized gain of $0.5 million (2021 - $nil) on fair value adjustments to its foreign currency derivatives. As at June 30, 2022, the Company holds $20 million in foreign currency derivatives (2021 - $nil).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 35
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

Commodity Price Risk

The Company is exposed to commodity price risk on silver and gold, which have a direct and immediate impact on the value of its related financial instruments and net earnings. The Company’s revenues are directly dependent on commodity prices that have shown volatility and are beyond the Company’s control. The Company does not use derivative instruments to hedge its commodity price risk to silver or gold.

The following table summarizes the Company’s exposure to commodity price risk and their impact on net earnings:

		June 30, 2022
	Effect of +/- 10% change in metal prices
	Silver	Gold	Total
Metals in doré inventory	$2,522	$515	$3,037
	$2,522	$515	$3,037

Interest Rate Risk

The Company is exposed to interest rate risk on its short-term investments, debt facilities and lease liabilities. The Company monitors its exposure to interest rates and has not entered into any derivative contracts to manage this risk. The Company’s interest bearing financial assets comprise of cash and cash equivalents which bear interest at a mixture of variable and fixed rates for pre-set periods of time.

As at June 30, 2022, the Company’s exposure to interest rate risk on interest bearing liabilities is limited to its debt facilities and lease liabilities. Based on the Company’s interest rate exposure at June 30, 2022, a change of 100 basis points increase or decrease of market interest rate does not have a significant impact on net earnings or loss.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 36
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SUPPLEMENTAL CASH FLOW INFORMATION

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Other adjustments to investing activities:
Purchase of marketable securities	$—	($1,703)	($1,419)	($1,703)
Proceeds from disposal of marketable securities	1,623	1,823	2,739	2,073
Cash (paid) received on settlement of derivatives	(366)	533	2,522	533
	$1,257	$653	$3,842	$903
Net change in non-cash working capital items:
Decrease (increase) in trade and other receivables	$3,783	($5,074)	$1,134	($4,583)
Decrease (increase) in value added taxes receivable	126	(11,746)	7,216	(20,096)
(Increase) decrease in inventories	(1,576)	2,741	(3,953)	(415)
(Increase) decrease in prepaid expenses and other	(2,101)	288	(6,338)	(1,813)
Increase (decrease) in income taxes payable	450	(8,326)	442	(8,034)
Increase (decrease) in trade and other payables	(20,441)	1,105	(28,732)	163
Decrease (increase) in restricted cash (Note 19(b))	2,333	—	(14,034)	—
	($17,426)	($21,012)	($44,265)	($34,778)
Non-cash investing and financing activities:
Transfer of share-based payments reserve upon settlement of RSU's	$493	$326	1,340	456
Transfer of share-based payments reserve upon exercise of options	505	3,559	1,530	5,342
Acquisition of mining interests	—	—	—	(3,750)
Assets acquired by finance lease	—	—	(1,810)	—
	$998	$3,885	$1,060	$468,348

As at June 30, 2022, cash and cash equivalents include $1.8 million (December 31, 2021 - $6.4 million) that are held in-trust as bonds for tax audits in Mexico.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 37
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

CONTINGENCIES AND OTHER MATTERS

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is probable and the amount can be reasonably estimated. In the opinion of management, these matters will not have a material effect on the consolidated financial statements of the Company.

(a) Claims and Legal Proceedings Risks

The Company is subject to various claims and legal proceedings covering a wide range of matters that arise in the ordinary course of business activities. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: availability of time on court calendars in Canada and elsewhere; the recognition of Canadian judgments under Mexican law; the possibility of settlement discussions; the risk of appeal of judgment; and the insufficiency of the defendant’s assets to satisfy the judgment amount. Each of these matters is subject to various uncertainties and it is possible that some of these matters may be resolved unfavourably to the Company. First Majestic carries liability insurance coverage and establishes provisions for matters that are probable and can be reasonably estimated. In addition, the Company may be involved in disputes with other parties in the future which may result in a significant impact on our financial condition, cash flow and results of operations.

Although the Company has taken steps to verify ownership and legal title to mineral properties in which it has an interest, according to the usual industry standards for the stage of mining, development and exploration of such properties, these procedures do not guarantee the Company’s title. Such properties may be subject to prior agreements or transfers, and title may be affected by undetected defects. However, management is not aware of any such agreements, transfers or defects.

(b) Primero Tax Rulings

When Primero, the previous owner of San Dimas acquired the San Dimas Mine in August 2010, it assumed the obligations under a Silver Purchase Agreement (“Old Stream Agreement”) that required its subsidiary PEM to sell to WPMI all the silver produced from the San Dimas mine, up to 6 million ounces and 50% of silver produced thereafter, at the lower of: (i) the spot market price and (ii) $4.014 per ounce plus an annual increase of 1%.

In order to reflect the commercial terms and the effects of the Old Stream Agreement, for Mexican income tax purposes, PEM recognized the revenue on these silver sales based on its actual realized revenue (“PEM Realized Price”) instead of at spot market prices.

To obtain assurance that the SAT would accept the PEM Realized Price as the price to use to calculate Mexican income taxes, Primero applied for and received on October 4, 2012, an Advance Pricing Agreement (“APA”) from the SAT for taxation years 2010 to 2014. The APA confirmed that the PEM Realized Price could be used as Primero’s basis for calculating taxes owed by PEM for the silver sold under the Old Stream Agreement. The purpose of the APA was to have SAT provide tax certainty and as a result Primero and PEM made significant investments in Mexico based on that certainty.

In February 2016, PEM received a legal claim from the SAT seeking to nullify the APA. The legal claim did not identify any alternative basis for paying taxes.

In 2019, the SAT issued reassessments for the 2010 to 2012 tax years in the total amount of $246.0 million (4,919 million MXN) inclusive of interest, inflation, and penalties. In 2021, the SAT also issued a reassessment against PEM for the 2013 tax year in the total amount of $136.2 million (2,723 million MXN) (collectively, the "Reassessments"). The Company believes that the Reassessments were issued in violation of the terms of the APA. The key items in the Reassessments include determining revenue on the sale based on the silver spot market price, denial of the deductibility of interest expense and service fees, SAT technical error related to double counting of taxes, and interest and penalties.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 38
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

CONTINGENCIES AND OTHER MATTERS (continued)

(b) Primero Tax Rulings (continued)

The Company continues to defend the APA in the Mexican legal proceedings, and initiated proceedings under relevant tax treaties between the competent tax authorities of Mexico, Canada, Luxembourg and Barbados, all of which were subsequently dismissed on a unilateral basis by the SAT ("Dismissals") in May 2020. The Company believes that the Dismissals breach international obligations regarding double taxation treaties, and also that the APA remains valid and legally binding. The Company will continue disputing the Reassessments, exhausting its domestic and international remedies.

While the Company continues to vigorously defend the validity of the APA and its transfer pricing position, it is also engaging in various proceedings against the SAT seeking to resolve matters and bring tax certainty through a negotiated solution. Despite these extensive efforts and ongoing legal challenges to the Reassessments and the Dismissals, in April 2020 and February 2021, SAT issued notifications to PEM to attempt to secure amounts it claims are owed pursuant to its reassessments issued. These notifications impose certain restrictions on PEM including its ability to dispose of its concessions and real properties, and to restrict access to funds within its bank account, the latter as disclosed in Note 19 of the condensed interim consolidated financial statements.

The Company has challenged SAT’s Reassessments and Dismissals through all domestic means available to it, including annulment suits before the Mexican Federal Tax Court on Administrative Matters ("Federal Court"), which remain unresolved, and a complaint before Mexico’s Federal Taxpayer Defense Attorney's Office (known as “PRODECON”). The Company believes that the actions of the SAT are neither fair nor equitable, are discriminatory against the Company as a foreign investor, amount to a denial of justice under international law, and furthermore violate various provisions of the Federal Constitution of the United Mexican States, Mexican domestic law, and Mexican court precedents.

On May 13, 2020, the Company provided to the Government of Mexico notice of its intention to initiate an international arbitration proceeding (“Notice of Intent”) pursuant to the North American Free Trade Agreement (“NAFTA”). The Notice of Intent commenced a 90-day period for the Government of Mexico to enter into good faith and amicable negotiations with the Company to resolve the dispute. On August 11, 2020, the 90-day period expired without any resolution of the dispute.

In September 2020, the Company was served with a decision of the Federal Court seeking to nullify the APA granted to PEM. The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA with retroactive effect, for the following key reasons:

(i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and

(ii) SAT’s failure to request from PEM certain additional information before issuing the APA.

The Company’s legal advisors having reviewed the written reasons have advised that the Federal Court’s decision is flawed both due to SAT's procedural irregularities and failure to address the relevant evidence and legal authorities. In addition, they consider that the laws applied to PEM in the decision are unconstitutional. As a result, the Company filed an appeal of the decision to the Mexican Circuit Courts on November 30, 2020. Since two writs of certiorari were filed before the Mexican Supreme Court of Justice, on April 15, 2021, the Plenary of the Supreme Court i) admitted one of those writs, ii) requested the Circuit Court to send the appeal file and iii) assigned such writ to the Second Chamber of the Supreme Court for issuing the corresponding decision. The other writ of certiorari has not been admitted by the Plenary of the Supreme Court. Therefore, the Company is currently waiting for the Supreme Court to issue a resolution towards such writs of certiorari.

The Company intends to continue to challenge the actions of the SAT in Mexican courts. However, due to the ongoing COVID-19 crisis, the Mexican courts continues to be available only on a restricted basis for further hearings on these matters.

On March 2, 2021, the Company announced that it submitted a Request for Arbitration to the International Centre for Settlement of Investment Disputes ("ICSID"), on its own behalf and on behalf of PEM, based on Chapter 11 of NAFTA. On March 31, 2021, the Notice of Registration of the Request for Arbitration was issued by the ICSID Secretariat. Once the NAFTA Arbitration Panel (the “Tribunal”) was fully constituted by the appointment of all three panel members on August 20, 2021, the NAFTA Arbitration Proceedings (the “NAFTA Proceedings”) were deemed to have commenced. The first session of the NAFTA Proceedings was held by videoconference on September 24, 2021 to decide upon the procedural rules which will govern the NAFTA Proceedings. The Tribunal issued Procedural Order No. 1 on October 21, 2021. Thereafter, on April 26, 2022, the Company submitted its Claimant’s Memorial including expert reports and witness statements to the Tribunal. Mexico is required to respond to the Claimant’s Memorial by November 24, 2022.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 39
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

CONTINGENCIES AND OTHER MATTERS (continued)

(b) Primero Tax Rulings (continued)

If the SAT were to be successful in retroactively nullifying the APA, the SAT may seek to audit and reassess PEM in respect of its sales of silver pursuant to the Old Stream Agreement for 2010 through 2014. Such an outcome would likely have a material adverse effect on the Company’s results of operations, financial condition and cash flows. Should the Company ultimately be required to pay tax on its silver revenues based on spot market prices without any mitigating adjustments, the incremental income tax for the years 2010-2019 would be approximately $244.7 million (4,703 million MXN), before taking into consideration interest or penalties.

Based on the Company’s consultation with third party advisors, the Company believes PEM filed its tax returns in compliance with applicable Mexican law and, therefore, at this time no liability has been recognized in the financial statements.

To the extent it is ultimately determined that the appropriate price of silver sales under the Old Stream Agreement is significantly different from the PEM Realized Price and while PEM would have rights of appeal in connection with any reassessments, it is likely to have a materially adverse effect on the Company’s business, financial position and results of operations.

In December 2019, as part of the ongoing annual audits of the tax returns of Minera La Encantada S.A. de C.V. and Corporacion First Majestic S.A. de C.V., the SAT issued tax assessments for fiscal 2013 for corporate income tax in the amount of $4.4 million (88.4 million MXN) and $14.1 million (282 million MXN), respectively including interest, inflation and penalties. The key items relate to forward silver purchase agreement and denial of the deductibility of mine development costs and service fees. The Company continues to defend the validity of the forward silver purchase agreement and will vigorously dispute the assessments that have been issued. The Company, based on advice from legal and financial advisors believes MLE’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements.

(d) Corporación First Majestic Back-to-Back Loans

During the quarter, following the completion of a tax audit, a conclusive agreement with the SAT was signed by Corporación First Majestic S.A. de C.V. (“CFM”) through Mexico’s Office of the Taxpayer Ombudsman (“PRODECON”) to settle an uncertain tax position concerning Mexican back-to-back loan provisions. The provisions were originally conceived from an anti-avoidance rule and a literal interpretation of the rules would convert most debt financing in Mexico into back-to-back loans. The back-to-back loan provisions establish that interest expense derived from back-to-back loans can be recharacterized as dividends resulting in significant changes to the tax treatment of interest, including withholding taxes. As a result of this recharacterization and in accordance with the conclusive agreement, CFM made a one time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a deferred tax expense of $54 million.

SUBSEQUENT EVENTS

Declaration of Quarterly Dividend

On August 3, 2022, the Company's board of directors approved the declaration of its quarterly common share dividend of $0.0061 per share, payable on or after August 31, 2022, to common shareholders of record at the close of business on August 16, 2022. These dividends were declared subsequent to the quarter end and have not been recognized as distributions to owners during the period ended June 30, 2022.

At-the-Market Distributions ("ATM") Programs

In July 2022, the Company filed prospectus supplements to its short form base shelf prospectus, pursuant to which the Company may, at its discretion and from time-to-time, sell common shares of the Company for aggregate gross proceeds of up to $100.0 million. The sale of common shares is to be made through “at-the-market distributions” ("ATM"), as defined in the Canadian Securities Administrators’ National Instrument 44-102 Shelf Distributions, directly on the New York Stock Exchange.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 40
NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
---	---
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

SUBSEQUENT EVENTS (continued)

Share Repurchase Program

The Company previously announced that it has received regulatory consent to extend its share repurchase program pursuant to a normal course issuer bid in the open market over the next 12 months. Pursuant to the Share Repurchase, the Company has the ability to repurchase up to 10,000,000 common shares of the Company. All common shares, if any, purchased pursuant to the Share Repurchase will be cancelled. The Company believes that, from time to time, the market price of its common shares may not fully reflect the underlying value of the Company's business and its future business prospects. The Company believes that at such times the purchase of common shares would be in the best interests of the Company. Such purchases are expected to benefit all remaining shareholders by increasing their proportionate equity interest in the Company. Subsequent to quarter end, the Company repurchased 100,000 common shares at an average price of CDN $8.52 per share as part of the Share Repurchase Program.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2022 Second Quarter Report	Page 41

Document

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE QUARTER ENDED JUNE 30, 2022

925 West Georgia Street, Suite 1800, Vancouver, B.C., Canada V6C 3L2<br>Phone: 604.688.3033	Fax: 604.639.8873	Toll Free: 1.866.529.2807
TABLE OF CONTENTS
---		COMPANY OVERVIEW	3
---	---	---
2022 SECOND QUARTER HIGHLIGHTS		4
2022PRODUCTION OUTLOOK AND COST GUIDANCE UPDATE		7
OVERVIEW OF OPERATING RESULTS
	Summary of Selected Quarterly Production Results	9
	Consolidated Operations	10
	San Dimas Silver/Gold Mine	12
	Santa Elena Silver/Gold Mine	14
	La Encantada Silver Mine	16
	Jerritt Canyon Gold Mine	17
	La Parrilla Silver Mine	18
	Del Toro Silver Mine	18
	San Martin Silver Mine	19
	La Guitarra Silver Mine	19
	Springpole Silver Stream	19
OVERVIEW OF FINANCIAL PERFORMANCE
	First Quarter 2022 vs 2021	21
	Year to Date 2022 vs 2021	23
	Summary of Selected Quarterly Results	25
OTHER DISCLOSURES
	Liquidity, Capital Resources and Contractual Obligations	25
	Management of Risks and Uncertainties	27
	Other Financial Information	33
	Subsequent Events	33
	Accounting Policies, Judgments and Estimates	34
	Non-GAAP Measures	36
	Management's Report on Internal Control Over Financial Reporting	45
	Cautionary Statements	46
First Majestic Silver Corp. 2022 Second Quarter Report	Page 2
---	---

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) should be read in conjunction with the unaudited consolidated financial statements of First Majestic Silver Corp. (“First Majestic” or “the Company”) for the six months ended June 30, 2022 which are prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”, and audited consolidated financial statements of the Company as at and for the year ended December 31, 2021, as some disclosures from the annual consolidated financial statements have been condensed or omitted. All dollar amounts are expressed in United States (“US”) dollars and tabular amounts are expressed in thousands of US dollars, unless otherwise indicated. Certain amounts shown in this MD&A may not add exactly to total amounts due to rounding differences.

This MD&A contains “forward-looking statements” that are subject to risk factors set out in a cautionary note contained at the end of this MD&A. All information contained in this MD&A is current and has been approved by the Board of Directors of the Company as of August 3, 2022 unless otherwise stated.

COMPANY OVERVIEW

First Majestic is a multinational mining company headquartered in Vancouver, Canada, focused on primary silver and gold production in North America, pursuing the exploration and development of its existing mineral properties and acquiring new assets. The Company owns one producing mine in the USA, the Jerritt Canyon Gold Mine, three producing mines in Mexico: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine and four mines currently in care and maintenance in Mexico: the San Martin Silver Mine, the Del Toro Silver Mine, the La Parrilla Silver Mine and the La Guitarra Silver/Gold Mine. As at June 30, 2022 the La Guitarra mine was classified as an asset held-for-sale.

First Majestic is publicly listed on the New York Stock Exchange under the symbol “AG”, on the Toronto Stock Exchange under the symbol “FR” and on the Frankfurt Stock Exchange under the symbol “FMV”.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 3
2022 SECOND QUARTER HIGHLIGHTS
---
Key Performance Metrics	2022-Q1	Change<br>Q2 vs Q1		2021-Q2	Change<br>Q2 vs Q2		2022-YTD	2021-YTD	Change
---	---	---	---	---	---	---	---	---	---	---
Operational
Ore Processed / Tonnes Milled	877,118	3	%	826,213	9	%	1,780,909	1,440,457	24	%
Silver Ounces Produced	2,613,327	6	%	3,274,026	(15	%)	5,389,255	6,182,050	(13	%)
Silver Equivalent Ounces Produced	7,222,002	7	%	6,435,023	20	%	14,927,937	10,975,319	36	%
Cash Costs per Silver Equivalent Ounce (1)	$14.94	(5	%)	$13.89	2	%	$14.52	$13.36	9	%
All-in Sustaining Cost per Silver Equivalent Ounce (1)	$20.87	(5	%)	$19.42	3	%	$20.38	$19.39	5	%
Total Production Cost per Tonne(1)	$118.51	(3	%)	$104.94	9	%	$116.50	$98.58	18	%
Average Realized Silver Price per Silver Equivalent Ounce (1)	$26.68	(10	%)	$27.32	(12	%)	$23.82	$27.25	(13	%)
Financial (in millions)
Revenues	$156.8	2	%	$154.1	3	%	$316.3	$254.6	24	%
Mine Operating Earnings	$15.1	(23	%)	$29.4	(61	%)	$26.7	$57.5	(54	%)
Net (Loss) earnings	$7.3	NM		$15.6	NM		($76.8)	$17.5	NM
Operating Cash Flows before Movements in Working Capital and Taxes	$35.3	(7	%)	$51.2	(36	%)	$68.3	$82.3	(17	%)
Cash and Cash Equivalents	$192.8	(39	%)	$227.1	(48	%)	$117.7	$227.1	(48	%)
Working Capital (1)	$194.4	3	%	$276.3	(28	%)	$199.8	$276.3	(28	%)
Free Cash Flow (1)	($40.4)	(7	%)	($37.2)	1	%	($77.9)	($44.9)	73	%
Shareholders
(Loss) Earnings per Share ("EPS") - Basic	$0.03	NM		$0.06	NM		($0.29)	$0.08	NM
Adjusted EPS (1)	($0.02)	8	%	$0.05	(141	%)	($0.05)	$0.08	(154	%)

All values are in US Dollars.

NM - Not meaningful

(1)The Company reports non-GAAP measures which include cash costs per silver equivalent ounce produced, all-in sustaining cost per silver equivalent ounce produced, total production cost per tonne, average realized silver price per silver equivalent ounce sold, average realized gold price per ounce sold, working capital, adjusted EPS and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See “Non-GAAP Measures” on pages 36 to 45 for a reconciliation of non-GAAP to GAAP measures.

Second Quarter Production Summary	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Ore Processed / Tonnes Milled	197,102	228,487	264,555	213,647	903,791
Silver Ounces Produced	1,527,465	384,953	863,510	—	2,775,928
Gold Ounces Produced	18,354	22,309	96	18,632	59,391
Silver Equivalent Ounces Produced	3,046,664	2,241,763	871,365	1,546,143	7,705,935
Cash Costs per Silver Equivalent Ounce	$10.41	$12.34	$14.09	$23.99	$14.12
All-in Sustaining Cost per Silver Equivalent Ounce	$14.97	$15.34	$16.65	$29.29	$19.91
Cash Cost per Gold Equivalent Ounce	N/A	N/A	N/A	$1,989	N/A
All-In Sustaining Costs per Gold Equivalent Ounce	N/A	N/A	N/A	$2,429	N/A
Total Production Cost per Tonne	$155.09	$109.50	$44.58	$169.16	$114.55
First Majestic Silver Corp. 2022 Second Quarter Report	Page 4
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Operational Highlights

•Total Production Increased by 20% Year-Over-Year: The Company produced 7.7 million silver equivalent ounces ("AgEq"), consisting of 2.8 million ounces of silver and 59,391 ounces of gold representing a 20% increase when compared to the second quarter of 2021 primarily due to the acquisition of Jerritt Canyon which contributed a full quarter in the second quarter of 2022 compared to 62 days in the same quarter of the prior year, and successful ramp up of the Ermitaño mine at Santa Elena.

•Cash Cost per Silver Equivalent Ounce for the quarter was $14.12 per ounce, compared to $14.94 per ounce in the previous quarter. The decrease in cash costs per AgEq ounce was primarily attributed to an increase in AgEq production and costs saving measures implemented. Production at Santa Elena and La Encantada increased by 20% and 34%, respectively, compared to the prior quarter, driven by the successful ramp up of the Ermitaño mine and a 30% increase in silver grades at La Encantada compared to the prior quarter. Additionally, the Company has implemented a number of costs saving measures in an effort to combat the inflationary impacts.

•All-in Sustaining Cost ("AISC") per Silver Equivalent Ounce in the second quarter was $19.91 per ounce compared to $20.87 per ounce in the previous quarter. The decrease in AISC per AgEq ounce was primarily attributed to lower cash costs per AgEq ounce as well as a decrease in general and administrative costs and share-based payments during the quarter.

•Record Production at Santa Elena: Strong ore production and improved ore grade from the Ermitaño mine enabled Santa Elena to set an all-time new quarterly production record of 2.2 million AgEq ounces. The Company is now planning for higher production rates from Ermitaño in the second half of 2022 which is expected to result in a projected 28% increase in FY2022 guidance at Santa Elena to between 8.7 to 9.2 million AgEq ounces.

•Restarting West Generator and Saval II Mines at Jerritt Canyon: Underground mining activities began at the West Generator mine at the end of the quarter and the Company expects to start mining activities at Saval II in the fourth quarter. These two new sources of ore feed, along with operational improvements at the SSX and Smith mines, are anticipated to increase the average head grade and nearly double the amount of fresh ore feed to the plant in the fourth quarter of 2022. In addition, these improvements are expected to significantly reduce unit costs in the second half of 2022.

•Liquefied Natural Gas (“LNG”) Power Plant Expansion at Santa Elena: The Company continued the construction of the LNG power plant expansion project and power line at Santa Elena to provide low-cost, clean energy to the Ermitaño mine and the dual-circuit project in Santa Elena. The power plant is expected to be operational in the third quarter following the installation of LNG generators. In addition, the connection of the Ermitaño transmission power line to the power plant is expected to be completed in August of 2022.

•30 Exploration Drill Rigs Active: The Company completed a total of 76,444 metres of exploration drilling across the Company’s mines during the quarter. Throughout the quarter, a total of 30 drill rigs were active consisting of 11 rigs at San Dimas, 11 rigs at Jerritt Canyon, six rigs at Santa Elena and two rigs at La Encantada.

Financial Highlights

•In the second quarter, the Company generated revenues of $159.4 million compared to $154.1 million in the second quarter of 2021. The increase in revenues was primarily attributed to inclusion of a full quarter of production from Jerritt Canyon and the processing of the Ermitaño ore which was partially offset by a lower average realized silver price which averaged $23.93 per ounce during the quarter, a 12% decrease compared to $27.32 in the second quarter of 2021. Additionally, the Company withheld sales of 0.2 million ounces of silver at the end of the quarter. Had the Company sold the withheld inventory, the Company would have generated approximately $5.2 million in additional revenue using the quarterly average realized price of $23.93 per ounce.

•The Company realized mine operating earnings of $11.6 million compared to mine operating earnings of $29.4 million in the second quarter of 2021. The decrease in mine operating earnings was primarily attributed to lower metal prices, an increase in cost of sales and depreciation and depletion due to the addition of Jerritt Canyon and Ermitaño, partially offset by an increase in silver equivalent ounces sold. During the quarter, the Company recorded a non-recurring severance cost of $0.6 million relating to restructuring efforts to optimize the workforce with additional reductions planned for the remainder of the year.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 5

•During the quarter, following the completion of a tax audit, a conclusive agreement with the Mexican tax authority, the Servicio de Administracion Tributaria ("SAT") was signed by Corporación First Majestic S.A. de C.V. (“CFM”) through Mexico’s Office of the Taxpayer Ombudsman (“PRODECON”) to settle an uncertain tax position concerning Mexican back-to-back loan provisions. The provisions were originally conceived from an anti-avoidance rule and a literal interpretation of the rules would convert most debt financing in Mexico into back-to-back loans. The back-to-back loan provisions establish that interest expense derived from back-to-back loans can be recharacterized as dividends resulting in significant changes to the tax treatment of interest, including withholding taxes. As a result of this recharacterization and in accordance with the agreement, CFM made a one time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a non cash deferred tax expense of $54 million.

•Net loss for the quarter was $84.1 million (EPS of ($0.32)) compared to net earnings of $15.6 million (EPS of $0.06) in the second quarter of 2021. The decrease in net earnings was primarily attributed to a $78.7 million income tax expense compared to an expense of $1.0 million in the second quarter of 2021. This was partially offset by a reversal of impairment recorded at La Guitarra of $7.6 million as the mine was classified as an asset held-for-sale following the announcement in May 2022 to sell the property to Sierra Madre Gold and Silver Ltd. for approximately $35 million.

•Adjusted net loss (a non-GAAP measure) for the quarter, normalized for non-cash or non-recurring items such as share-based payments, unrealized gain on foreign currency derivatives and impairment reversals as well as certain current and deferred income taxes for the quarter ended June 30, 2022, was $5.7 million (Adjusted EPS of ($0.02)) compared to adjusted net earnings of $12.7 million (Adjusted EPS of $0.05) in the second quarter of 2021.

•Operating cash flow before movements in working capital and taxes in the quarter was an inflow of $33.0 million compared to a cash inflow of $51.2 million in the second quarter of 2021.

•As of June 30, 2022, the Company had cash and cash equivalents of $117.7 million and working capital of $199.8 million. Working capital is inclusive of $44.1 million of current restricted cash which is expected to be converted to cash and cash equivalents in the third quarter.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 6
2022 PRODUCTION OUTLOOK AND COST GUIDANCE UPDATE
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This section provides management’s revised production outlook and cost guidance for 2022. These are forward-looking estimates and are subject to the cautionary note regarding the risks associated with relying on forward-looking statements at the end of this MD&A. Actual results may vary based on production throughputs, grades, recoveries and changes in economic circumstances.

The Company is revising its second half and full year 2022 guidance to reflect changes due to increased production from the Ermitaño mine and improved milling efficiencies at Santa Elena, improved production tonnages and grades at Jerritt Canyon as well as incorporating changes to metal price assumptions and production impacts from the first half of 2022. Details of the changes and their expected impacts are presented below:

1.Increased production at Santa Elena to between 8.7 to 9.2 million AgEq ounces following higher mine production from the Ermitaño mine along with expected higher-grade ore from the Alejandra de Bajo and America veins at the Santa Elena mine.

2.Completion of Santa Elena’s dual-circuit project to improve metallurgical recoveries of Ermitaño ores and to allow higher plant throughput capacity.

3.Improving dilution controls at San Dimas and prioritizing long-hole stoping of the Jessica and Regina veins to improve ore grade and overall production.

4.At Jerritt Canyon, the Company has accelerated the restart of the West Generator and Saval II mines which are expected to contribute higher tonnages, improved grades and reduced AISC in the second half of 2022. AISC in the second half of 2022 is now projected to be within a range of $1,739 to $1,861 per ounce.

5.At La Encantada, mining is expected to begin at the Ojeulas and Beca-Zone orebodies in the second half of 2022 aimed at increasing ore tonnage and silver grades.

6.Reduced silver price assumptions in the second half of 2022 to $20.50/oz (previously $22.50/oz) but maintained gold price assumptions at $1,750/oz, resulting in a 85:1 silver to gold ratio.

As a result of these adjustments, our 2022 total production remains relatively unchanged at 32.5 to 34.6 million AgEq ounces compared to the prior guidance of 32.2 to 35.8 million AgEq ounces. The Company is also providing guidance below on a mine-by-mine basis for the second half of 2022.

GUIDANCE FOR SECOND HALF 2022

	Silver Oz (M)	Gold Oz (k)	Silver Eqv Oz (M)	Cash Cost	AISC
Silver:				($ per AgEq oz)	($ per AgEq oz)
San Dimas, Mexico	3.5 – 3.9	37 – 42	6.6 – 7.4	8.58 – 9.11	12.11 – 13.05
Santa Elena, Mexico	0.9 – 1.0	44 – 49	4.6 – 5.1	10.37 – 11.03	12.00 – 12.86
La Encantada, Mexico	1.5 – 1.6	–	1.5 – 1.6	15.21 – 16.15	19.35 – 20.76
Mexico Consolidated:	5.8 – 6.5	81 – 90	12.7 – 14.2	9.99 – 10.62	12.91 – 13.87
Gold:				($ per AuEq oz)	($ per AuEq oz)
Jerritt Canyon, USA	–	57 – 64	4.9 – 5.4	1,498 – 1,592	1,739 – 1,861
Total Production				($ per AgEq oz)	($ per AgEq oz)
Consolidated*	5.8 – 6.5	138 - 154	17.6 – 19.6	12.09 – 12.85	16.09 – 17.27

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

*Consolidated AISC includes general and administrative cost estimates and non-cash costs of $1.30 to $1.41 per AgEq ounce.

In the first half of 2022, the Company produced a total of 14.9 million AgEq ounces consisting of 5.4 million ounces of silver and 118,283 ounces of gold. In the second half of 2022, the Company expects to produce 17.6 to 19.6 million AgEq ounces, or a 25% increase compared the first half of 2022. Silver production is expected to range between 5.8 to 6.5 million ounces, or a 14% increase compared the first half of the year. Additionally, gold production is now expected to be in the range of between 138,000 to 154,000 ounces, or a 23% increase compared to the first half of 2022. The increases in production are primarily due to expected higher ore production from the Ermitaño mine at Santa Elena and improved mine production and gold grades at Jerritt Canyon in the second half of 2022, as well as a higher contribution of AgEq credits due to an increase in the gold to silver ratio.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 7

Cash costs in the second half of 2022 are expected to trend lower to within the range of $12.09 to $12.85 per AgEq ounce, primarily due to higher gold production at both Santa Elena and Jerritt Canyon. In addition, AISC are expected to be within a range of $16.09 to $17.27 per AgEq ounce in the second half of 2022.

A mine-by-mine breakdown of the revised full year 2022 production guidance is included in the table below and assumes the following prices for calculating AgEq ounces are the same as previously stated above.

GUIDANCE FOR FULL YEAR 2022

	Silver Oz (M)	Gold Oz (k)	Silver Eqv Oz (M)	Cash Cost	AISC
Silver:				($ per AgEq oz)	($ per AgEq oz)
San Dimas, Mexico	6.6 – 7.0	74 – 79	12.8 – 13.6	9.16 – 9.47	12.46 – 12.98
Santa Elena, Mexico	1.6 – 1.7	85 – 90	8.7 – 9.2	11.33 – 11.74	13.50 – 14.05
La Encantada, Mexico	3.0 – 3.2	–	3.0 – 3.2	15.10 – 15.56	18.51 – 19.16
Mexico Consolidated:	11.2 – 11.9	160 – 169	24.5 – 26.0	10.66 – 11.02	15.17 – 15.79
Gold:				($ per AuEq oz)	($ per AuEq oz)
Jerritt Canyon, USA	–	96 – 103	8.0 – 8.6	1,744 – 1,817	2,012 – 2,103
Total Production				($ per AgEq oz)	($ per AgEq oz)
Consolidated*	11.2 – 11.9	256 – 273	32.5 – 34.6	13.21 – 13.69	17.68 – 18.42

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

*Consolidated AISC includes general and administrative cost estimates and non-cash costs of $1.44 to $1.52 per AgEq ounce.

For the full year of 2022, the Company now estimates silver production will range between 11.2 to 11.9 million ounces compared to the prior guidance of 12.2 to 13.5 million ounces. Additionally, gold production is estimated to range between 256,000 to 273,000 ounces compared to the prior guidance of 258,000 to 288,000 ounces.

Annual cash costs are now expected to be within the range of $13.21 to $13.69 per ounce or slightly higher than the previous guidance of $12.20 to $12.94 per ounce, primarily due to inflationary pressures and higher costs at Jerritt Canyon in the first half of 2022. In addition, annual AISC are expected to be within a range of $17.68 to $18.42 per AgEq ounce compared to the previous guidance of $16.79 to $18.06 per AgEq ounce.

REVISED CAPITAL BUDGET

In an effort to maintain its strong balance sheet, the Company has updated its annual 2022 capital budget to include the reallocation of development and exploration expenditures across its operations and investments in innovative projects. As a result, the Company has reduced its 2022 capital investments by 4% to $199.5 million consisting of $83.9 million of sustaining investments and $115.6 million of expansionary investments.

The revised 2022 annual budget includes total capital investments of $90.0 million on underground development, $44.5 million towards property, plant and equipment, $36.5 million on exploration and $28.5 million towards efficiency and corporate projects.

Revised 2022 Capital Budget ($millions)	Sustaining	Expansionary	Total
Underground Development	$55.1	$34.9	$90.0
Exploration	3.0	33.5	36.5
Property, Plant and Equipment	23.2	21.3	44.5
Corporate Projects	2.6	25.9	28.5
Total*	$83.9	$115.6	$199.5

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

Under the revised 2022 budget, the Company is planning to complete a total of approximately 45,900 metres of underground development, representing a 15% decrease compared to the original guidance. In addition, the Company is now planning to complete a total of approximately 240,450 metres of exploration drilling in 2022, representing a 25% decrease compared to the original guidance. In the first half of 2022, the Company completed 23,553 metres of underground development and 151,668 metres of exploration drilling.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 8
OVERVIEW OF OPERATING RESULTS
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Selected Production Results for the Past Eight Quarters

	2022				2021								2020
PRODUCTION HIGHLIGHTS	Q2		Q1		Q4		Q3		Q2(2)		Q1		Q4		Q3
Ore processed/tonnes milled
San Dimas	197,102		195,300		206,738		214,205		202,382		199,466		208,648		189,918
Santa Elena	228,487		201,911		224,459		234,862		234,381		185,358		168,276		204,577
La Encantada	264,555		249,906		268,239		263,645		242,839		229,421		248,408		261,425
Jerritt Canyon	213,647		230,001		256,374		230,415		146,611		—		—		—
Consolidated	903,791		877,118		955,810		943,126		826,213		614,245		625,332		655,920
Silver equivalent ounces produced
San Dimas	3,046,664		3,080,940		4,015,346		3,422,032		3,176,725		2,910,946		3,477,061		3,125,662
Santa Elena	2,241,763		1,868,787		1,955,550		1,061,657		1,140,398		884,332		901,630		1,091,026
La Encantada	871,365		651,875		768,796		913,481		847,502		745,018		1,098,800		984,397
Jerritt Canyon	1,546,143		1,620,400		1,821,331		1,922,270		1,270,398		—		—		—
Consolidated	7,705,935		7,222,002		8,561,023		7,319,441		6,435,023		4,540,296		5,477,492		5,201,085
Silver ounces produced
San Dimas	1,527,465		1,632,117		2,174,353		1,888,371		1,868,031		1,716,143		1,941,286		1,678,075
Santa Elena	384,953		337,201		426,870		508,641		565,453		453,528		418,153		502,375
La Encantada	863,510		644,009		757,586		905,074		840,541		738,354		1,093,521		978,416
Consolidated	2,775,928		2,613,327		3,358,809		3,302,086		3,274,026		2,908,024		3,452,959		3,158,866
Gold ounces produced
San Dimas	18,354		18,528		23,795		20,767		19,227		17,448		19,980		18,268
Santa Elena	22,309		19,556		19,810		7,498		8,453		6,327		6,294		7,428
Jerritt Canyon	18,632		20,707		23,660		26,145		18,762		—		—		—
Consolidated	59,295		58,791		67,265		54,410		46,442		23,775		26,274		25,696
Cash cost per Ounce(1)
San Dimas (per AgEq Ounce)	$	10.41	$	9.41	$	7.98	$	8.29	$	10.17	$	10.00	$	8.49	$	7.74
Santa Elena (per AgEq Ounce)	$	12.34	$	12.96	$	11.56	$	17.09	$	16.70	$	20.18	$	16.50	$	13.81
La Encantada (per AgEq Ounce)	$	14.09	$	16.41	$	14.51	$	12.25	$	13.66	$	13.77	$	10.42	$	10.16
Jerritt Canyon (per AuEq Ounce)	$	1,989	$	2,120	$	1,674	$	1,735	$	1,407	$	—	$	—	$	—
Consolidated (per AgEq Ounce)	$	14.12	$	14.94	$	12.32	$	14.09	$	13.89	$	12.61	$	10.21	$	9.48
All-in sustaining cost per Ounce(1)
San Dimas (per AgEq Ounce)	$	14.97	$	12.98	$	11.29	$	11.58	$	14.22	$	14.31	$	12.32	$	10.74
Santa Elena (per AgEq Ounce)	$	15.34	$	16.31	$	14.02	$	21.10	$	21.31	$	25.66	$	21.76	$	16.36
La Encantada (per AgEq Ounce)	$	16.65	$	19.63	$	19.41	$	15.28	$	15.97	$	16.30	$	12.39	$	12.12
Jerritt Canyon (per AuEq Ounce)	$	2,429	$	2,488	$	2,077	$	2,286	$	1,679	$	—	$	—	$	—
Consolidated (per AgEq Ounce)	$	19.91	$	20.87	$	17.26	$	19.93	$	19.42	$	19.35	$	16.12	$	14.01
Production cost per tonne
San Dimas	$	155.09	$	143.66	$	146.30	$	128.67	$	153.43	$	140.29	$	135.13	$	120.60
Santa Elena	$	109.50	$	111.36	$	93.78	$	75.76	$	79.17	$	94.15	$	86.32	$	71.44
La Encantada	$	44.58	$	41.43	$	39.70	$	41.08	$	45.71	$	42.99	$	43.72	$	36.04
Jerritt Canyon	$	169.16	$	187.15	$	151.23	$	192.17	$	177.30	$	—	$	—	$	—
Consolidated	$	114.55	$	118.51	$	105.37	$	106.52	$	104.94	$	90.03	$	85.68	$	71.56

1) Effective January 1, 2021, the Company is reporting its cash costs and all-in sustaining costs on a per silver equivalent ("AgEq") ounce basis. Cash cost and AISC per AgEq Ounce for previous comparative periods were updated based on the new metric. See "Non-GAAP" section.

2) Jerritt Canyon quarterly production was from April 30, 2021 to June 30, 2021, or 62 days.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 9

Operating Results – Consolidated Operations

CONSOLIDATED	2022-Q2	2022-Q1	2022-YTD	2021-YTD	Change <br>Q2 vs Q1		Change<br>'22 vs '21
Ore processed/tonnes milled	903,791	877,118	1,780,909	1,440,457	3	%	24	%
Average silver grade (g/t)	114	109	112	150	5	%	(25	%)
Average gold grade (g/t)	2.29	2.31	2.30	1.57	(1	%)	46	%
Silver recovery (%)	84	85	84	89	(1	%)	(6	%)
Gold recovery (%)	89	90	90	93%	(1	%)	(3	%)
Production
Silver ounces produced	2,775,928	2,613,327	5,389,255	6,182,050	6	%	(13	%)
Gold ounces produced	59,391	58,891	118,282	70,418	1	%	68	%
Silver equivalent ounces produced	7,705,935	7,222,002	14,927,937	10,975,319	7	%	36	%
Cost
Cash cost per AgEq Ounce	14.12	14.94	14.52	13.36	(5	%)	9	%
All-in sustaining costs per AgEq ounce	19.91	20.87	20.38	19.39	(5	%)	5	%
Total production cost per tonne	114.55	118.51	116.50	98.58	(3	%)	18	%
Underground development (m)	13,404	11,153	24,557	27,198	20	%	(10	%)
Diamond drilling (m)	76,444	75,225	151,669	93,159	2	%	63	%

All values are in US Dollars.

The Impact of COVID-19 on Business and Operations

COVID-19 sanitary protocols were established in 2020 at all Company facilities and operations. These protocols include continuous monitoring and testing of workers, use of effective PPE, and other sanitary control measures. These measures have proven effective at managing the pandemic impacts on the Company’s operations and remain in effect.

The Company also continues supporting local communities by sponsoring health professionals, medical and testing equipment, personal protective equipment, medicine and health supplements.

Production

Total production in the second quarter was 7.7 million silver equivalent ounces, consisting of 2.8 million ounces of silver and 59,391 ounces of gold, representing an increase of 6% and 1%, respectively, compared to the previous quarter.

Total ore processed during the quarter at the Company's mines amounted to 903,791 tonnes, representing a 3% increase compared to the previous quarter. The increase in tonnes processed was primarily due to higher throughput rates achieved at Santa Elena and La Encantada and slightly offset by lower processed tonnes at Jerritt Canyon.

Consolidated silver and gold grades in the quarter averaged 114 g/t and 2.29 g/t, respectively, compared to 109 g/t and 2.31 g/t, respectively, in the previous quarter. The 5% increase in consolidated silver grades was primarily due to a 30% increase in silver grades at La Encantada partially offset by a 9% decrease in silver grades at San Dimas. Head grades at Santa Elena and Jerritt Canyon were relatively unchanged compared to the prior quarter.

On a consolidated basis the average silver recoveries were 84% and the average gold recoveries were 89% during the quarter. The Company continued to advance the Santa Elena dual-circuit project in order to increase the leaching performance and metallurgical recoveries of the Santa Elena and Ermitaño ores at the processing plant. A new tailings filter-press, an additional leaching tank and a fourth CCD thickener are expected to be commissioned at Santa Elena in the fourth quarter of 2022. Once the dual circuit project is fully operational the Company expects to achieve significantly higher silver and gold recoveries and throughput.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 10

Cash Cost and All-In Sustaining Cost per Ounce

Cash cost per AgEq ounce for the quarter was $14.12 per ounce, compared to $14.94 per ounce in the previous quarter. The decrease in cash costs per silver equivalent ounce was primarily attributed to an increase in AgEq production at Santa Elena and La Encantada by 20% and 34%, respectively, compared to the prior quarter, driven by the successful ramp up of the Ermitaño mine and a 30% increase in silver grades at La Encantada compared to the prior quarter. Additionally, the Company has implemented a number of costs saving measures in an effort to combat the inflationary impacts.

All-in Sustaining Cost per AgEq ounce in the second quarter was $19.91 per ounce compared to $20.87 per ounce in the previous quarter. The decrease in AISC per AgEq ounce was primarily attributed to lower cash costs per AgEq ounce due to higher production as well as lower general and administrative and share-based payments during the quarter.

Additionally, management developed a series of cost reduction initiatives across the organization to improve efficiencies, lower production costs, capital spending, care and maintenance holding costs and corporate G&A costs while also increasing production. This plan includes:

•Renegotiating contracts and reducing external consultants;

•Restructuring to optimize workforce and reduce labour costs;

•Reducing reagent consumption without impacting recoveries or performance;

•Conversion to LNG power with long-term contracts;

•Increasing production at Santa Elena by leveraging the Ermitaño ore and refocusing mining on the mid and higher-grade Alejandra de Bajo and America veins in the Santa Elena mine to improve grade and production;

•Completing the Dual Circuit project to improve metal recovery rates and allow higher plant throughput;

•Improving dilution controls at San Dimas and prioritizing long hole stoping of the Jessica and Regina veins to improve ore grade and production and initiating ore shipments from the higher-grade Perez vein in the third quarter of 2022;

•Developing the newly identified Zone 10 higher-grade ore zone in the Smith mine and accelerating the restart of the West Generator and Saval II mines at Jerritt Canyon while reducing the planned maintenance downtime at the plant to gain more ore volume and better ore grades; and

•Advancing mining at La Encantada towards the Ojeulas and Beca orebodies to generate more ore tonnage and higher ore grades.

Development and Exploration

During the quarter, the Company completed 13,404 metres of underground development and 76,444 metres of diamond drilling, compared to 11,153 metres and 75,225 metres, respectively, in the previous quarter. The increase in exploration metres was primarily attributed to the expanded exploration program at Jerritt Canyon Gold mine.

Throughout the quarter, a total of 30 drill rigs were active consisting of 11 rigs at San Dimas, 11 rigs at Jerritt Canyon, six rigs at Santa Elena and two rigs at La Encantada.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 11

San Dimas Silver/Gold Mine, Durango, México

The San Dimas Silver/Gold Mine is located approximately 130 km northwest of Durango, Durango State, Mexico and consists of 71,868 hectares of mining claims located in the states of Durango and Sinaloa, Mexico. San Dimas is one of the country’s most prominent silver and gold mines and the largest producing underground mine in the state of Durango with over 250 years of operating history. The San Dimas operating plan involves processing ore from several underground mining areas with a 2,500 tpd capacity milling operation which produces silver/gold doré bars. The mine is accessible via a 40-minute flight from the Durango International Airport to the private airstrip in the town of Tayoltita, or by improved roadway. The Company owns 100% of the San Dimas mine.

San Dimas	2022-Q2	2022-Q1	2022-YTD	2021 YTD	Change <br>Q2 vs Q1		Change<br>'22 vs '21
Total ore processed/tonnes milled	197,102	195,300	392,402	401,848	1	%	(2	%)
Average silver grade (g/t)	257	282	269	293	(9	%)	(8	%)
Average gold grade (g/t)	3.01	3.09	3.05	2.95	(3	%)	3	%
Silver recovery (%)	94	92	93	95	2	%	(2	%)
Gold recovery (%)	96	96	96	96	0	%	0	%
Production
Silver ounces produced	1,527,465	1,632,117	3,159,582	3,584,174	(6	%)	(12	%)
Gold ounces produced	18,354	18,528	36,882	36,676	(1	%)	1	%
Silver equivalent ounces produced	3,046,664	3,080,940	6,127,604	6,087,671	(1	%)	1	%
Cost
Cash cost per AgEq Ounce	10.41	9.41	9.90	10.09	11	%	(2	%)
All-In sustaining costs per AgEq Ounce	14.97	12.98	13.97	14.26	15	%	(2	%)
Total production cost per tonne	155.09	143.66	149.40	146.90	8	%	2	%
Underground development (m)	5,856	6,005	11,861	14,879	(2	%)	(20	%)
Diamond drilling (m)	22,356	19,344	41,700	50,460	16	%	(17	%)

All values are in US Dollars.

During the second quarter, San Dimas produced 3,046,664 silver equivalent ounces consisting of 1,527,465 ounces of silver and 18,354 ounces of gold, representing a decrease of 6% and 1%, respectively, when compared to the prior quarter.

The mill processed a total of 197,102 tonnes of ore with average silver and gold grades of 257 g/t and 3.01 g/t, respectively, compared to 195,300 tonnes milled with average silver and gold grades of 282 g/t and 3.09 g/t, in the previous quarter. Silver and gold grades were lower in the second quarter compared to the prior quarter due to slightly higher dilution from the long hole stopes in the Jessica and Regina veins. The Company is implementing a recovery plan for the second half of 2022 to reduce dilution and prioritize long hole stoping of the Jessica and Regina veins to improve ore grade and overall production.

Silver and gold recoveries averaged 94% and 96%, respectively, during the quarter.

The Central Block and Sinaloa Graben areas contributed approximately 76% and 24%, respectively, of the total production during the quarter. The Company continued advancing underground development for stope preparation and ventilation within the Perez vein to be ready for initial production in August.

In the second quarter, cash cost per AgEq ounce was $10.41 per ounce compared to $9.41 per ounce in the prior quarter. The increase in cash costs during the quarter was primarily due to a 1% decrease in silver equivalent ounces produced.

AISC per AgEq ounce for the quarter was $14.97 per ounce compared to $12.98 per ounce in the prior quarter. The increase was primarily due to an increase in cash costs per AgEq ounce along with higher overall sustaining capital expenditures incurred during the quarter.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 12

The San Dimas mine is subject to a gold and silver streaming agreement with Wheaton Precious Metals Corp. ("Wheaton" or "WPM") which entitles Wheaton to receive 25% of the gold equivalent production (based on a fixed exchange ratio of 70 silver ounces to 1 gold ounce) at San Dimas in exchange for ongoing payments equal to the lesser of $600 (subject to a 1% annual inflation adjustment commencing in May 2019) and the prevailing market price, for each gold ounce delivered. Should the average gold to silver ratio over a six-month period exceed 90:1 or fall below 50:1, the fixed exchange ratio would be increased to 90:1 or decreased to 50:1, respectively. The fixed gold to silver exchange ratio as at June 30, 2022 was 70:1. During the three months ended June 30, 2022 , the Company delivered 10,633 ounces (2021 - 11,214 ounces) of gold to WPM at $624 (2021 - $618) per ounce.

A total of 5,856 metres of underground development was completed in the second quarter, compared to 6,005 metres in the prior quarter. During the second quarter, a total of 11 drill rigs, consisting of one surface rig and 10 underground rigs, were active on the property and completed 22,356 metres compared to 19,344 metres in the prior quarter.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 13

Santa Elena Silver/Gold Mine, Sonora, México

The Santa Elena Silver/Gold Mine is located approximately 150 kilometres northeast of the city of Hermosillo, Sonora, Mexico. The operating plan for Santa Elena involves the processing of ore in a 3,000 tpd cyanidation circuit from a combination of underground reserves. The Company owns 100% of the Santa Elena mine including mining concessions totaling over 102,244 hectares.

SANTA ELENA	2022-Q2	2022-Q1	2022-YTD	2021-YTD	Change <br>Q2 vs Q1		Change<br>'22 vs '21
Total ore processed/tonnes milled	228,487	201,911	430,398	419,738	13	%	3	%
Average silver grade (g/t)	67	69	68	82	(3	%)	(17	%)
Average gold grade (g/t)	3.26	3.18	3.22	1.15	3	%	180	%
Silver recovery (%)	78	76	77	93	3	%	(17	%)
Gold recovery (%)	93	95	94	96	(2	%)	(2	%)
Production
Silver ounces produced	384,953	337,201	722,154	1,018,981	14	%	(29	%)
Gold ounces produced	22,309	19,556	41,865	14,780	14	%	183	%
Silver equivalent ounces produced	2,241,763	1,868,787	4,110,550	2,024,730	20	%	103	%
Cost
Cash cost per AgEq Ounce	12.34	12.96	12.62	18.22	(5	%)	(31	%)
All-In sustaining costs per AgEq Ounce	15.34	16.31	15.78	23.21	(6	%)	(32	%)
Total production cost per tonne	109.50	111.36	110.37	85.78	(2	%)	29	%
Underground development (m)	4,381	3,043	7,424	9,495	44	%	(22	%)
Diamond drilling (m)	19,079	13,241	32,320	30,522	44	%	6	%

All values are in US Dollars.

During the second quarter, Santa Elena produced a new quarterly record of 2,241,763 silver equivalent ounces consisting of 384,953 ounces of silver and 22,309 ounces of gold representing a 14% increase in both silver and gold production, when compared to the prior quarter. The increase in production was primarily due to processing higher volumes of Ermitaño’s ore which is known to contain higher gold grades than Santa Elena’s ore. Santa Elena processed 228,487 ore tonnes during the quarter compared to total production of 201,911 tonnes in the prior quarter.

Silver and gold grades from Santa Elena averaged 95 g/t and 1.20 g/t, respectively, which represented a decrease of 2% in silver grades and an increase of 6% in gold grades compared to the previous quarter. Silver and gold grades from Ermitaño averaged 45 g/t and 4.86 g/t, respectively, compared to 45 g/t and 4.98 g/t, in the previous quarter.

Consolidated silver and gold recoveries in the second quarter averaged 78% and 93%, respectively, compared to 76% and 95%, respectively, in the prior quarter. The Company continues to advance construction of the dual circuit project at the Santa Elena processing plant which was approximately 82% complete at quarter end. An additional leaching tank and a fourth CCD thickener were installed in the quarter and are anticipated to be commissioned in the third quarter followed by the commissioning of the new tailings filter-press in the fourth quarter. The new tailing filter plant is expected to be fully operational by the end of the year allowing for improved recoveries, increased plant throughput and reduced costs.

During the quarter, the Company advanced the construction of the LNG power plant expansion and power line to provide low-cost, cleaner power to the Ermitaño mine and to support the power requirements for the dual-circuit installations. At the power plant, the structural steel erection inside the powerhouse was completed and the installation of the ventilation fans and overhead crane was completed in July. The construction of the transmission line to join Ermitaño to Santa Elena also advanced with the installation of the electrical poles and approximately 70% of the cable lines. The power line was completed in July 2022 and remains on schedule to be connected to the Santa Elena power plant in the third quarter. The Company plans to install and commission additional LNG generators in the third quarter of 2022.

Cash cost per AgEq ounce in the second quarter was $12.34 per ounce compared to $12.96 per ounce in the previous quarter. The decrease in cash cost was primarily attributed to a 20% increase in silver equivalent ounces produced

First Majestic Silver Corp. 2022 Second Quarter Report	Page 14

compared to the previous quarter partially offset by increased costs incurred for planned maintenance downtime as well as unexpected failure in the ball mill lubrication system. AISC per AgEq ounce for the quarter was $15.34 per ounce compared to $16.31 per ounce in the prior quarter. The decrease in AISC was primarily driven by the decrease in cash costs per ounce as well as lower capital expenditures during the quarter.

The Santa Elena mine is subject to a gold streaming agreement with Sandstorm Gold Ltd. (“Sandstorm”), which requires the mine to sell 20% of its gold production from the leach pad and a designated area of its underground operations over the life of mine to Sandstorm. The selling price to Sandstorm is currently the lesser of $450 per ounce (subject to a 1% annual inflation increase every April) and the prevailing market price. During the quarter the Company delivered 864 ounces of gold (2021 - 1,669 ounces) to Sandstorm at an average price of $473 per ounce (2021 - $468 per ounce).

Orogen Royalties Inc., formerly Evrim Resource Corp., retains a 2% net smelter return ("NSR") royalty from the sale of mineral products extracted from the Ermitaño mining concessions. In addition, there is an underlying NSR royalty where Osisko Gold Royalties Ltd. retains a 2% NSR from the sale of mineral products extracted from the Ermitaño mining concessions. During the three and six months ended June 30, 2022, the Company has incurred $1.3 million and $2.6 million (2021 - $nil) in NSR from the production of Ermitaño.

In the second quarter, Santa Elena completed a total of 4,381 metres of underground development, compared to 3,043 metres in the previous quarter. A total of six drill rigs, consisting of four surface rigs and two underground rig, were active at the end of the quarter, completing 19,079 metres of exploration drilling compared to 13,241 metres in the prior quarter.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 15

La Encantada Silver Mine, Coahuila, México

The La Encantada Silver Mine is an underground mine located in the northern México State of Coahuila, 708 kilometres northeast of Torreon. La Encantada has 4,076 hectares of mineral concessions and surface land ownership of 1,343 hectares. La Encantada also has a 4,000 tpd cyanidation plant, a camp with 120 houses as well as administrative offices, laboratory, general store, hospital, airstrip and all the necessary infrastructure required for such an operation. The mine is accessible via a two-hour flight from the Durango International Airport to the mine’s private airstrip, or via an improved road from the closest city, Muzquiz, Coahuila State, which is 225 kilometres away. The Company owns 100% of the La Encantada Silver Mine.

LA ENCANTADA	2022-Q2	2022-Q1	2022-YTD	2021-YTD	Change <br>Q2 vs Q1		Change <br>'22 vs '21
Ore processed/tonnes milled	264,555	249,906	514,462	472,260	6	%	9	%
Average silver grade (g/t)	141	108	125	134	30	%	(7	%)
Silver recovery (%)	72	74	73	77	(3	%)	(5	%)
Production
Silver ounces produced	863,510	644,009	1,507,519	1,578,895	34	%	(5	%)
Gold ounces produced	96	100	196	200	(4	%)	(2	%)
Silver equivalent ounces produced	871,365	651,875	1,523,240	1,592,520	34	%	(4	%)
Cost
Cash cost per AgEq Ounce	14.09	16.41	15.08	13.71	(14	%)	10	%
All-In sustaining costs per AgEq Ounce	16.65	19.63	17.92	16.12	(15	%)	11	%
Total production cost per tonne	44.58	41.43	43.05	44.38	8	%	(3	%)
Underground development (m)	590	510	1,101	1,792	16	%	(39	%)
Diamond drilling (m)	3,942	1,284	5,225	7,772	NM		(33%)

All values are in US Dollars.

During the quarter, La Encantada produced 863,510 silver ounces compared to 644,009 silver ounces in the previous quarter, representing a 34% increase in production. The increase was primarily due to a 30% increase in silver grades.

The mill processed a total of 264,555 tonnes with an average silver grade and recovery during the quarter of 141 g/t and 72%, respectively, compared to 249,906 tonnes, 108 g/t and 74%, respectively, in the previous quarter. The increase in grades were the result of additional ore feed being sourced from the new draw points in the Cuerpo 660 and La Prieta areas. The Company continued development activities in the Ojuelas and Beca-Zone orebodies to further increase silver grades in the second half of 2022.

Cash cost per AgEq ounce for the quarter was $14.09 compared to $16.41 in the previous quarter. The decrease in cash cost was primarily due to the 34% increase in silver equivalent ounces produced driven by a 30% increase in the silver grade during the quarter, partially offset by maintenance costs associated with the presence of oversized material in the extraction points which clogged flow and required special handling.

AISC per AgEq ounce for the quarter was $16.65 per ounce compared to $19.63 per ounce in the previous quarter due to lower cash costs incurred in the quarter.

Two underground drill rigs were active on the property at the end of the quarter. A total of 590 metres of underground development was completed in the second quarter compared to 510 metres in the prior quarter. One underground and one surface drill completed 3,942 metres of drilling compared to 1,284 metres in the previous quarter.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 16

Jerritt Canyon Gold Mine, Nevada, United States

The Jerritt Canyon Gold mine is an underground mine located in Northern Nevada, United States. Jerritt Canyon was discovered in 1972 and has been in production since 1981 having produced over 9.5 million ounces of gold over its 40-year production history. The mine was purchased by the Company on April 30, 2021 and currently operates as an underground mine and has one of three permitted gold processing plants in Nevada that uses roasting in its treatment of ore. This processing plant has a capacity of 4,000 tonnes per day (“tpd”). The property consists of a large, under explored land package consisting of 30,821 hectares (119 square miles). Jerritt Canyon is 100% owned by the Company.

Jerritt Canyon	2022-Q2	2022-Q1	2022-YTD	2021-YTD	Change <br>Q2 vs Q1		Change <br>'22 vs '21
Ore processed/tonnes milled	213,647	230,001	443,648	146,611	(7	%)	203	%
Average gold grade (g/t)	3.40	3.39	3.40	4.03	1	%	(16	%)
Gold recovery (%)	80	83	81	84	(4	%)	(4	%)
Production
Gold ounces produced	18,632	20,707	39,339	18,762	(10	%)	110	%
Silver equivalent ounces produced	1,546,143	1,620,400	3,166,543	1,270,398	(5	%)	149	%
Cost
Cash cost per AuEq Ounce	1,989	2,120	2,058	1,407	(6	%)	46	%
All-In sustaining costs per AuEq Ounce	2,428	2,488	2,460	1,679	(2	%)	47	%
Total production cost per tonne	169.16	187.15	178.49	177.30	(10	%)	1	%
Underground development (m)	2,577	1,595	4,172	1,032	62	%	304	%
Diamond drilling (m)	31,067	41,356	72,423	4,406	(25	%)	1,544	%

All values are in US Dollars.

During the quarter, Jerritt Canyon produced 18,632 ounces of gold, representing a 10% decrease compared to the prior quarter. The decrease was primarily due to a major failure in the oxygen plant to produce liquid oxygen which significantly reduced roasting capacity over a two-week period in May.

The mill processed a total of 213,647 tonnes with an average gold grade and recovery of 3.40 g/t and 80%, respectively, compared to 230,001 tonnes with an average grade and recovery of 3.39 g/t and 83%, respectively, in the prior quarter. The SSX and Smith mines contributed approximately 58% and 42%, respectively, of the total production in the quarter. The processing of lower ore grade from SSX continued during the quarter which resulted in lower than budgeted ore grades processed in the plant. The Company expects gold grades from the SSX mine will improve in the second half of 2022 as higher-grade ore areas are developed into and extracted following recent successful exploration activities.

The Company continued with rehabilitation efforts in the West Generator underground mine. This new ore resource, along with the restart of the Saval II underground mine in the fourth quarter of 2022 and operational improvements at the SSX mine, are anticipated to increase the average head grade and nearly double the amount of fresh ore feed to the plant. In addition, these improvements are expected to significantly reduce costs in the third and fourth quarter of 2022.

Cash cost per AuEq ounce for the quarter was $1,989 compared to $2,120 in the prior quarter. This decrease was primarily due to a shift towards mine development projects to focus on better defined areas and fresh ore zones rather than remnant mining, partially offset by a 10% decrease in production. AISC per AuEq ounce for the quarter was $2,428 per ounce, compared to $2,488 in the prior quarter primarily due to lower cash costs during the quarter.

A total of eleven drill rigs, consisting of one surface rig and 10 underground rigs, were active during the quarter. A total of 31,067 diamond drilling metres and 2,577 metres of underground development were drilled during the quarter.

Since the acquisition, First Majestic has been developing a long-term mine and exploration plan for the future of the operation. The Company has identified numerous projects that have been implemented or will be implemented over the next 12 to 24 months to improve environmental compliance and production, and reduce costs at the mine and processing plant, including:

First Majestic Silver Corp. 2022 Second Quarter Report	Page 17

1.Rebuild a Leadership Team and add technical expertise to the operation (Completed)

2.Complete the remodeling of all resources inclusive of all available drilling data and mapping (Completed)

3.Execute a roaster expansion capacity study for future growth (Completed)

4.Optimize the water treatment plant for mine dewatering prioritization (Completed)

5.Complete the lift upgrade and develop a long-term TSF2 plan (Completed)

6.Establish a Special Environmental Trust to manage the Reclamation and Closure of four waste rock stockpiles (Completed)

7.Complete a site-wide Environmental Audit (Completed)

8.Connect the two underground Smith and SSX producing mines with an underground development drift which will be used for future ore haulage and exploration activities (Completed)

9.Obtain permits for potential pushbacks of past-producing open pits for future mill feed (Ongoing)

10.Test over 25 high-priority exploration targets, both near-mine and greenfield (Ongoing)

11.Evaluate and complete ore purchase opportunities with third parties to fill roaster excess capacity (Ongoing)

12.Optimize the underground mining plan and execution of mining with the mine contractor (Ongoing)

13.Develop additional higher-grade ore resources from the West Gen and Saval II underground mines (Ongoing)

14.Converting to more efficient and lower cost long-hole stoping methods where practice, to reduce mining costs (Ongoing)

15.Evaluate and competitively bid all major procurement contracts for services and consumables (Ongoing)

16.Develop a mercury remediation plan for improved capture of off-gas from the roasters and refinery (Ongoing)

It should be noted that a number of the anticipated benefits from these modifications are not yet reflected in the forecasted operating results and are expected to take several quarters to materialize.

La Parrilla Silver Mine, Durango, México

The La Parrilla Silver Mine, located approximately 65 kilometres southeast of the city of Durango in Durango State, México, is a complex of underground operations consisting of the Rosarios, La Blanca and San Marcos mines which are inter-connected through underground workings, and the Vacas and Quebradillas mines which are connected via above-ground gravel roads. The total mining concessions consist of 69,478 hectares. The Company owns 60 hectares, and leases an additional 107 hectares of surface rights, for a total of 167 hectares of surface rights. La Parrilla includes a 2,000 tpd sequential processing plant consisting of a 1,000 tpd cyanidation circuit and a 1,000 tpd flotation circuit, an ISO 9001 certified central laboratory, metallurgical pilot plant, buildings, offices and associated infrastructure. The Company owns 100% of the La Parrilla Silver Mine.

Operations at the La Parrilla mine have been placed on care and maintenance since September 2019. The Company completed discussions with the La Parrilla Ejido to continue the long-term land use agreement at La Parrilla during the fourth quarter of 2021.

Del Toro Silver Mine, Zacatecas, México

The Del Toro Silver Mine is located 60 kilometres to the southeast of the Company’s La Parrilla mine and consists of 3,815 hectares of mining concessions and 219 hectares of surface rights. The Del Toro operation represents the consolidation of three historical silver mines, the Perseverancia, San Juan and Dolores mines, which are approximately one and three kilometres apart, respectively. Del Toro includes a 2,000 tpd flotation circuit and a 2,000 tpd cyanidation circuit. First Majestic owns 100% of the Del Toro Silver Mine.

Operations at the Del Toro mine has been placed on care and maintenance since January 2020.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 18

San Martin Silver Mine, Jalisco, México

The San Martin Silver Mine is an underground mine located near the town of San Martin de Bolaños in the Bolaños river valley, in the northern portion of the State of Jalisco, México. San Martin has 33 contiguous mining concessions in the San Martin de Bolaños mining district covering mineral rights for 12,795 hectares, plus an application of a new mining concession covering 24,723 hectares to be granted. In addition, the mine owns 160 hectares of surface land where the processing plant, camp, office facilities, maintenance shops, and tailings dams are located, and an additional 640 hectares of surface rights. The 1,300 tpd mill and processing plant consists of crushing, grinding and conventional cyanidation by agitation in tanks and a Merrill-Crowe doré production system. The mine can be accessed via small plane, 150 kilometres from Durango, or 250 kilometres by paved road north of Guadalajara, Jalisco. The San Martin Silver Mine is 100% owned by the Company.

In July 2019, the Company suspended all mining and processing activities at the San Martin operation due to marginal economics and growing insecurity in the area. The Company continues to maintain the mine and plant facilities, including advancing a buttressing project on the TSF2 tailings impoundment. The mine remains in care and maintenance.

La Guitarra Silver Mine, México State, México

The La Guitarra Silver Mine is located in the Temascaltepec Mining District in the State of México, México, approximately 130 kilometres southwest from México City. The La Guitarra mine covers 39,714 hectares of mining claims and has a 500 tpd flotation processing plant, buildings and related infrastructure. The Company owns 100% of the La Guitarra Silver Mine.

The La Guitarra milling and mining operations were placed under care and maintenance effective August 3, 2018.

Springpole Silver Stream, Ontario, Canada

Transaction consideration paid and payable by First Majestic is summarized as follows:

•The first payment of $10.0 million, consisting of $2.5 million in cash and $7.5 million in First Majestic shares (805,698 common shares), was paid to First Mining on July 2, 2020;

First Majestic Silver Corp. 2022 Second Quarter Report	Page 19

Springpole is one of Canada’s largest, undeveloped gold projects with permitting underway. In January 2021, First Mining announced positive results of its Pre-Feasibility Study (“PFS”) which supports a 30,000 tonnes-per-day open pit mining operation over an 11 year mine life. First Mining announced resources of 24.3 million ounces of silver in the Indicated category and 1.4 million ounces of silver in the Inferred category, plus 4.6 million ounces of gold in the Indicated category and 0.3 million ounces of gold in the Inferred category.

The Springpole Project also includes large land holdings of 41,913 hectares which are fully encompassed under the silver streaming agreement.

First Mining is a related party with two independent board members who are also directors and/or officers of First Majestic.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 20
OVERVIEW OF FINANCIAL PERFORMANCE
---

For the quarters ended June 30, 2022 and 2021 (in thousands of dollars, except for per share amounts):

	Second Quarter	Second Quarter
	2022	2021	Variance %
Revenues	$159,443	$154,073	3	%	(1)
Mine operating costs
Cost of sales	113,619	95,782	19	%	(2)
Depletion, depreciation and amortization	34,212	28,868	19	%	(3)
	147,831	124,650	19	%
Mine operating earnings	11,612	29,423	(61	%)
General and administrative expenses	9,380	6,901	36	%	(4)
Share-based payments	2,986	2,768	8	%
Mine holding costs	2,430	2,359	3	%
Reversal of impairment	(7,585)	—	100	%	(5)
Acquisition costs	—	1,823	(100	%)	(6)
Foreign exchange loss (gain)	986	(782)	NM
Operating earnings	3,415	16,354	79	%
Investment and other (loss) income	(3,918)	4,329	191	%	(7)
Finance costs	(4,835)	(4,127)	(17	%)
Loss (earnings) before income taxes	(5,338)	16,556	NM
Current income tax expense	25,450	10,325	146	%	(8)
Deferred income tax expense (recovery)	53,262	(9,368)	NM
Income tax expense	78,712	957	NM		(8)
Net (loss) earnings for the period	($84,050)	$15,599	NM		(9)
(Loss) earnings per share (basic) and diluted	($0.32)	$0.06	NM		(9)

NM - Not meaningful

1.Revenues in the quarter increased $5.4 million compared to the same quarter of the previous year primarily attributed to:

•a 17% increase in payable silver equivalent ounces sold compared to the same quarter of the previous year which resulted in an increase in revenues of $27.6 million. This was primarily due to the addition of the Jerritt Canyon Gold mine on April 30, 2021 and the addition of the Ermitaño mine at Santa Elena in the fourth quarter of 2021;

Partially offset by:

•a decrease in realized silver price per ounce sold, which averaged $23.93 during the quarter compared to $27.32 per ounce in the second quarter of 2021, resulting in a $22.4 million decrease in revenues; and

•0.2 million ounces of silver withheld in inventory at the end of the quarter. Had the Company sold the withheld inventory of 0.2 million ounces of silver, the Company would have generated approximately $5.2 million in additional revenue using the average realized price of $23.93 per ounce.

2.Cost of sales in the quarter increased $17.8 million compared to the same quarter of the previous year primarily due to:

•an increase of $10.0 million due to the addition of the Jerritt Canyon Gold mine which was acquired on April 30, 2021 and therefore contributed towards a full quarter in 2022;

•an increase of $8.9 million at Santa Elena due to the additional ore tonnage processed from the Ermitaño mine which was added in the the fourth quarter of 2021;

First Majestic Silver Corp. 2022 Second Quarter Report	Page 21

•$3.1 million increase in abnormal costs that were incurred as a result of marginal ore material that was processed to keep the mill running at minimum feed requirements to perform government mandated air compliance test work at the Jerritt Canyon Gold mine;

•an increase in environmental duties and royalties of $1.8 million relating to royalties due from the production of the Ermitaño mine;

•an increase in worker participation costs of $1.8 million relating to updated employment benefits during the year; and

•higher labour, consumables, energy and other costs including insurance, work-in-process and stockpile inventory changes as well as service costs, partially due to inflationary pressures during the quarter;

Partially offset by:

•a $5.6 million decrease in change in finished goods inventory expense primarily due to the initial recognition of the Jerritt Canyon inventory in the same quarter of the prior year.

3.Depletion, depreciation and amortization in the quarter increased $5.3 million compared to the same quarter of the previous year, primarily as a result of:

•an increase of $2.5 million related to depletion at Jerritt Canyon Gold mine due to a higher depletable balance following the finalization of the purchase price allocation in the fourth quarter of 2021 and a reclassification from non-depletable to depletable mining interest in the first quarter of 2022;

•an increase of $2.7 million related to depletion at the San Dimas, Santa Elena and La Encantada mines due to a higher depletable balance of mining interests during the period following the reclassifications from non-depletable to depletable mineral interest in the first quarter of 2022; and

•an increase from the Santa Elena LNG powerplant facility which was not in operation in the same quarter of the prior year and incurred $0.8 million in depreciation.

4.General and administrative expenses increased by $2.5 million compared to the same quarter of 2021, primarily to support growth initiatives from the addition of Jerritt Canyon as well as an increase in legal and audit fees during the quarter.

5.Reversal of impairment increased by $7.6 million compared to the same quarter of 2021, attributed to the announcement for the Sale of La Guitarra silver mine in Mexico for total proceeds of $35 million. Immediately prior to the classification to asset and liabilities held-for-sale, the carrying amount of La Guitarra was remeasured to its recoverable amount, being its fair value less cost of disposal ("FVLCD"), based on the expected proceeds from the sale. As a result, the Company has recorded a reversal of impairment loss in related to the La Guitarra assets of $7.6 million based on the recoverable amount implied by the share purchase agreement.

6.Acquisition costs of $1.8 million in 2021 was in relation to due diligence costs and closing fees incurred in connection with the acquisition of Jerritt Canyon Gold mine which closed on April 30, 2021.

7.Investment and other income for the quarter decreased by $8.2 million compared to the second quarter of the prior year, primarily due to an unrealized loss of $3.3 million on the Company's marketable securities, compared to an unrealized gain on the Company's marketable securities of $3.6 million in the same quarter of the prior year.

8.During the quarter, the Company recorded an income tax expense of $78.7 million compared to an expense of $1.0 million in the second quarter of 2021. During the quarter, following the completion of a tax audit, a conclusive agreement with the Mexican tax authority, the Servicio de Administracion Tributaria ("SAT") was signed by Corporación First Majestic S.A. de C.V. (“CFM”) through Mexico’s Office of the Taxpayer Ombudsman (“PRODECON”) to settle an uncertain tax position concerning Mexican back-to-back loan provisions. The provisions were originally conceived from an anti-avoidance rule and a literal interpretation of the rules would convert most debt financing in Mexico into back-to-back loans. The back-to-back loan provisions establish that interest expense derived from back-to-back loans can be recharacterized as dividends resulting in significant changes to the tax treatment of interest, including withholding taxes. As a result of this recharacterization and in accordance with the agreement, CFM made a one time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a non cash deferred tax expense of $54 million.

9.As a result of the foregoing, net loss for the quarter was $84.1 million (EPS of ($0.32)) compared to net earnings of $15.6 million (EPS of $0.06) in the same quarter of the prior year.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 22

For the years to date ended June 30, 2022 and 2021 (in thousands of dollars, except for per share amounts):

	Annual	Annual	Variance %
	2022	2021	'22 vs '21
Revenues	$316,281	$254,595	24	%	(1)
Mine operating costs
Cost of sales	224,832	152,843	47	%	(2)
Depletion, depreciation and amortization	64,768	44,213	46	%	(3)
	289,600	197,056	47	%
Mine operating earnings	26,681	57,539	(54	%)
General and administrative	19,662	13,862	42	%	(4)
Share-based payments	7,808	6,362	23	%	(5)
Reversal of impairment	(7,585)	—	100	%	(6)
Acquisition costs	—	1,823	(100)	%	(7)
Mine holding costs	5,595	6,227	(10	%)
Foreign exchange loss (gain)	277	(2,579)	(111	%)
Operating earnings	924	31,844	(97)	%
Investment and other (loss) income	(1,286)	1,179	NM		(8)
Finance costs	(9,425)	(7,900)	(19	%)	(9)
(Loss) earnings before income taxes	(9,787)	25,123	NM
Current income tax expense	36,942	18,862	96	%
Deferred income tax expense (recovery)	30,036	(11,193)	NM
Income tax expense	66,978	7,669	NM		(10)
Net (loss) earnings for the year	($76,765)	$17,454	NM		(11)
(Loss) earnings per common share
Basic	($0.29)	$0.08	NM		(11)
Diluted	($0.29)	$0.07	NM		(10)

NM - Not meaningful

1.Revenues in the six months ended June 30, 2022 increased $61.7 million or 24% compared to the previous year, primarily attributed to:

•$106.2 million increase due to a 38% increase in payable silver equivalent ounces sold compared to the prior year. This was mainly attributed to the full quarter of quarterly results from the addition of Jerritt Canyon on April 30, 2021 which contributed a full two quarters of revenue in the current year versus 62 days in the prior year, achieving production at the Ermitaño mine in Santa Elena during the fourth quarter of 2021 and the increase in production from the Mexican operations due to the reduced effect of the temporary COVID-19 suspension and units operating with limited workforce levels in the previous year;

Partially offset by:

•$44.7 million decrease due to a 13% decrease in realized silver price per ounce sold, which averaged $23.82 compared to $27.25 in the prior year; and

2.Cost of sales in the year increased $72.0 million or 47% compared to 2021 as a result of the following factors:

•an increase in cost of sales of $55.6 million due to the addition of the Jerritt Canyon Gold mine which was acquired on April 30, 2021;

First Majestic Silver Corp. 2022 Second Quarter Report	Page 23

•an increase in cost of sales of $14.4 million at Santa Elena due to the additional ore tonnage processed from the Ermitaño mine which was added in the fourth quarter of 2021;

•$3.1 million in abnormal costs that were incurred as a result of marginal ore material that was processed to keep the mill running at minimum feed requirements to perform mandated air compliance test work at the Jerritt Canyon Gold mine; and

3.Depletion, depreciation and amortization in the year increased $20.6 million or 46% compared to the previous year primarily as a result of the addition of the Jerritt Canyon Gold mine, which contributed to an increase of $14.1 million during the year, and a $6.0 million increase from Mexican operations due to an increase in throughput, higher mining interest and property plant and equipment balances during the year.

4.General and administrative expense in the year increased $5.8 million or 42% compared to the prior year, primarily to support growth initiatives from the addition of Jerritt Canyon, an increase in legal and audit fees during the year as well as an increase in employee salaries and benefits including the annual incentive compensation.

5.Share based payments in the year increased $1.4 million primarily attributed to an increase in the fair value of the options granted, restricted and performance share units granted during the year as well as the introduction of the deferred shares units compensation for the independent directors.

6.Reversal of impairment increased by $7.6 million compared to the same quarter of 2021, attributed to the announcement for the Sale of La Guitarra silver mine in Mexico for total proceeds of $35 million. At June 30, 2022, the sale was considered highly probable; therefore, the assets and liabilities of La Guitarra were classified as assets and liabilities held for sale and presented separately under current assets and current liabilities, respectively. Immediately prior to the classification to asset and liabilities held for sale, the carrying amount of La Guitarra was remeasured to its recoverable amount, being its fair value less cost of disposal ("FVLCD"), based on the expected proceeds from the sale. As a result, the Company has recorded a reversal of impairment loss in related to the La Guitarra assets of $7.6 million based on the recoverable amount implied by the share purchase agreement.

7.Acquisition costs of $1.8 million in 2021 relates to due diligence costs and closing fees incurred in connection with the acquisition of the Jerritt Canyon Gold mine which closed on April 30, 2021.

8.Investment and other income in the year decreased $2.5 million compared to the previous year primarily due to an unrealized loss of $3.8 million on the Company's marketable securities, compared to an unrealized gain on the Company's marketable securities of $2.3 million in the prior year. Additionally, there was a $2.1 million loss on the write-down of property and equipment in relation to the sale of certain AG mill equipment to Condor Gold PLC in the prior year.

9.Finance costs in the year increased by $1.5 million compared to the previous year primarily due to an increase in the accretion expense for decommissioning liabilities resulting from changes in the asset retirement obligations in the fourth quarter of the prior year.

10.During the six months ended June 30, 2022, the Company recorded an income tax expense of $67.0 million, compared to $7.7 million in 2021. During the year, following the completion of a tax audit, a conclusive agreement with the Mexican tax authority, the Servicio de Administracion Tributaria ("SAT") was signed by Corporación First Majestic S.A. de C.V. (“CFM”) through Mexico’s Office of the Taxpayer Ombudsman (“PRODECON”) to settle an uncertain tax position concerning Mexican back-to-back loan provisions. The provisions were originally conceived from an anti-avoidance rule and a literal interpretation of the rules would convert most debt financing in Mexico into back-to-back loans. The back-to-back loan provisions establish that interest expense derived from back-to-back loans can be recharacterized as dividends resulting in significant changes to the tax treatment of interest, including withholding taxes. As a result of this recharacterization and in accordance with the agreement, CFM made a one time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a non cash deferred tax expense of $54 million.

11.As a result of the foregoing, net loss for the six months ended June 30, 2022 was $76.8 million (EPS of ($0.29)), compared to net income of $17.5 million (EPS of $0.08) in the prior year.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 24
SUMMARY OF QUARTERLY RESULTS
---

The following table presents selected financial information for each of the most recent eight quarters:

	2022		2021				2020
Selected Financial Information	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3
Revenue	$159,443	$156,838	$204,876	$124,646	$154,073	$100,522	$117,075	$125,881
Cost of sales	$113,619	$111,213	$121,236	$92,006	$95,782	$57,061	$58,008	$60,275
Depletion, depreciation and amortization	$34,212	$30,556	$43,278	$29,122	$28,868	$15,345	$15,399	$17,573
Mine operating earnings (loss)	$11,612	$15,069	$40,362	$3,518	$29,423	$28,116	$43,668	$48,033
Net (loss) earnings after tax	($84,050)	$7,285	($3,971)	($18,406)	$15,599	$1,855	$34,545	$30,946
(Loss) earnings per share - basic	($0.32)	$0.03	($0.02)	($0.07)	$0.06	$0.01	$0.16	$0.14
(Loss) earnings per share - diluted	($0.32)	$0.03	($0.02)	($0.07)	$0.06	$0.01	$0.15	$0.14

During the second quarter of 2022, mine operating earnings were $11.6 million compared to earnings of $15.1 million in the previous quarter primarily attributed to higher depreciation than the previous quarter. The net loss for the quarter was $84.1 million compared to net earnings of $7.3 million in the prior quarter primarily attributed to an income tax expense of $78.7 million compared to an income tax recovery of $11.7 million in the previous quarter due to the settlement of an uncertain tax position with the SAT relating to Corporación First Majestic S.A. de C.V. (“CFM”). As a result, CFM made a payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, the Company agreed to surrender certain tax loss carry forwards resulting in a deferred tax expense of $54 million.

LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL OBLIGATIONS

Liquidity

As at June 30, 2022, the Company had cash and cash equivalents of $117.7 million, comprised primarily of cash held with reputable financial institutions and is invested in cash accounts and in highly liquid short-term investments with maturities of three months or less. With the exception of $1.8 million held in-trust for tax audits in Mexico, the Company's cash and cash equivalents are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations.

Working capital as at June 30, 2022 was $199.8 million compared to $224.4 million at December 31, 2021. Total available liquidity at June 30, 2022 was $299.8 million, including working capital and $100.0 million of undrawn revolving credit facility.

The following table summarizes the Company's cash flow activity during the period:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Cash flow
Cash used in by operating activities	($13,253)	($16,532)	($32,237)	($9,101)
Cash used in investing activities	(67,049)	(13,310)	(106,828)	(59,574)
Cash generated by financing activities	11,401	53,966	23,553	55,242
(Decrease) increase in cash and cash equivalents	($68,901)	$24,124	($115,512)	($13,433)
Effect of exchange rate on cash and cash equivalents held in foreign currencies	(1,508)	1,301	(22)	1,964
Cash and cash equivalents, beginning of the period	192,801	201,684	237,926	238,578
Cash and cash equivalents, end of period	$117,721	$227,109	$117,721	$227,109

The Company’s cash flows from operating, investing and financing activities during the six months ended June 30, 2022 are summarized as follows:

First Majestic Silver Corp. 2022 Second Quarter Report	Page 25

•Cash used in operating activities of $32.2 million, primarily due to:

•$56.3 million in income taxes paid during the period;

•$44.3 million net change in non-cash working capital items during the period, including a $4.0 million increase in inventories, a $6.3 million increase in prepaid expenses, a $28.7 million decrease in trade payables primarily due to the release of $12.6 million held in escrow for the acquisition of Jerritt Canyon and annual profit sharing payments made in Mexico during the quarter, a $0.4 million decrease in income taxes payable and a $2.3 million increase in restricted cash (PEM frozen bank account), partially offset by a $1.1 million decrease in trade and other receivables and a $7.2 million decrease in value added tax ("VAT") receivables;

net of:

•$68.3 million in cash flows from operating activities before movements in working capital and taxes.

•Cash used in investing activities of $106.8 million, primarily related to:

•$81.3 million spent on mine development and exploration activities;

•$24.4 million spent on purchase of property, plant and equipment;

•$4.9 million spent on deposits on non-current assets;

•$1.4 million spent on the purchase of marketable securities;

net of:

•$2.5 million of net proceeds from the settlement of derivatives; and

•$2.7 million of net proceeds from the disposal of marketable securities.

•Cash provided by financing activities of $23.6 million, primarily consists of the following:

•$30.6 million of net proceeds from the issuance of shares through the ATM;

•$3.3 million of net proceeds from the exercise of stock options;

net of:

•$6.0 million on repayment of lease obligations;

•$3.6 million for the payment of dividends during the year; and

•$0.7 million payment of financing costs.

During the quarter ended June 30, 2022 the Company received $19.6 million (399.9 million MXN) related to value added tax filings. In connection with the PEM tax ruling, the tax authority has frozen a PEM bank account with cumulative funds of $69.6 million as a guarantee against certain disputed tax assessments which are currently held within the Company's restricted cash accounts. This balance consists of VAT refunds that the Company has received which were previously withheld by the tax authority. The Company does not agree with SAT's position and is challenging the freezing of the bank account through the relevant legal channels.

Current Restricted Cash includes $39.1 million related to the cash bonds held with the Nevada Division of Environmental Protection (“NDEP”) and the US Forestry Service (“USFS”) which were replaced with surety bonds to fund ongoing reclamation and mine closure obligations. As part of this agreement, the Company made a $5 million collateral payment, of which subsequent to June 30th, was replaced by a letter of credit. The NDEP and USFS have provided correspondence confirming that the funds will be returned to the Company in the third quarter of 2022 therefore, the total of $44.1 million, has been re-classified to current restricted cash at June 30, 2022. Upon receipt of these funds from the NDEP and USFS, the total current restricted cash balance of $44.1 million will be reclassified to cash and cash equivalents.

Capital Resources

The Company’s objective when managing capital is to maintain financial flexibility to continue as a going concern while optimizing growth and maximizing returns of investments from shareholders.

The Company monitors its capital structure and based on changes in operations and economic conditions, may adjust the structure by repurchasing shares, issuing new shares, issuing new debt or retiring existing debt. The Company prepares an annual budget and quarterly forecasts to facilitate the management of its capital requirements. The annual budget is approved by the Company’s Board of Directors.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 26

The Company is not subject to any externally imposed capital requirements with the exception of complying with banking covenants defined in its debt facilities. As at June 30, 2022 and December 31, 2021, the Company was fully in compliance with these covenants.

Contractual Obligations and Commitments

As at June 30, 2022, the Company’s contractual obligations and commitments are summarized as follows:

	Contractual<br>Cash Flows	Less than <br>1 year	2 to 3<br>years	4 to 5<br>years	After 5 years
Trade and other payables	$101,665	$101,665	$—	$—	$—
Debt facilities	235,500	1,425	2,709	231,366	—
Lease liabilities	43,318	12,380	21,795	8,080	1,063
Other liabilities	6,716	—	—	—	6,716
Purchase obligations and commitments	13,995	13,995	—	—	—
	$401,194	$129,465	$24,504	$239,446	$7,779

At June 30, 2022, the Company had a working capital of $199.8 million (2021 – $224.4 million) and total available liquidity of $299.8 million (2021 – $274.4 million), including $100.0 million of undrawn revolving credit facility.

The Company believes it has sufficient cash on hand, combined with cash flows from operations, to meet operating requirements as they arise for at least the next 12 months.

MANAGEMENT OF RISKS AND UNCERTAINTIES

Credit Risk

Liquidity Risk

First Majestic Silver Corp. 2022 Second Quarter Report	Page 27

Currency Risk

The sensitivity of the Company’s net earnings or loss and comprehensive income or loss due to changes in the exchange rates of the Canadian Dollar and the Mexican Peso against the U.S. Dollar is included in the table below:

	June 30, 2022
	Cash and cash equivalents	Restricted cash	Value added taxes receivable	Other financial assets	Trade and other payables	Foreign exchange derivative	Net assets (liabilities) exposure	Effect of +/- 10% change in currency
Canadian dollar	$45,830	$4	$—	$4,308	($2,119)	$—	$48,023	$4,802
Mexican peso	15,050	69,506	34,761	—	(45,291)	20,000	94,026	9,403
	$60,880	$69,510	$34,761	$4,308	($47,410)	$20,000	$142,049	$14,205

Commodity Price Risk

The following table summarizes the Company’s exposure to commodity price risk and their impact on net earnings:

		June 30, 2022
	Effect of +/- 10% change in metal prices
	Silver	Gold	Total
Metals in doré inventory	$2,522	$515	$3,037
	$2,522	$515	$3,037

Political and Country Risk

First Majestic currently conducts foreign operations in México and the United States, and as such the Company’s operations are exposed to various levels of political and economic risks by factors outside of the Company’s control. These potential factors include, but are not limited to: royalty and tax increases or claims by governmental bodies, the conflict between Russia and Ukraine, expropriation or nationalization, foreign exchange controls, high rates of inflation, extreme fluctuations in foreign currency exchange rates, import and export tariffs and regulations, lawlessness, cancellation or renegotiation of contracts and environmental and permitting regulations. The Company currently has no political risk insurance coverage against these risks.

The Company is unable to determine the impact of these risks on its future financial position or results of operations. Changes, if any, in mining or investment policies or shifts in political attitude in foreign countries may substantively affect the Company’s exploration, development and production activities.

Uncertainty in the Calculation of Mineral Reserves, Resources and Silver Recovery

There is a degree of uncertainty attributable to the calculation of Mineral Reserves and Mineral Resources (as defined in NI 43-101). Until Mineral Reserves or Mineral Resources are actually mined, extracted and processed, the quantity of minerals and their grades must be considered estimates only. In addition, the quantity of Mineral Reserves and Mineral Resources may vary depending on, among other things, applicable metal prices. Any material change in the quantity of Mineral Reserves, Mineral Resources, grade or mining widths may affect the economic viability of some or all of the Company’s mineral properties and may have a material adverse effect on the Company's operational results and financial condition. Mineral Reserves on the Company’s properties have been calculated on the basis of economic factors at the time of calculation; variations in such factors may have an impact on the amount of the Company’s Mineral Reserves. In addition,

First Majestic Silver Corp. 2022 Second Quarter Report	Page 28

there can be no assurance that silver recoveries or other metal recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production, or that the existing known and experienced recoveries will continue.

Public Health Crises

Global financial conditions and the global economy in general have experienced, at various times in the past and potentially in the future, extreme volatility in response to economic shocks or other events, such as the ongoing situation concerning COVID‐19. Many industries, including the mining industry, are impacted by volatile market conditions in response to the widespread outbreak of epidemics, pandemics, or other health crises. Such public health crises and the responses of governments and private actors can result in disruptions and volatility in economies, financial markets, and global supply chains as well as declining trade and market sentiment and reduced mobility of people, all of which could impact commodity prices, interest rates, credit ratings, credit risk and inflation.

The Company's business could be materially adversely affected by the effects of the COVID‐19 pandemic. As of the date of this MD&A, the global spread of COVID‐19 continues to result in, among other things, restrictions in many jurisdictions on travel and gatherings of individuals, quarantines, temporary business closures and a general reduction in consumer activity. Due to the potential for new variants of COVID-19, future disruptions to business internationally and related financial impact on the Company and the economy in general cannot be estimated with any degree of certainty at this time. In addition, the long-term impact of the pandemic on global economies and financial markets remains uncertain and could result in a protracted economic downturn that could have an adverse effect on the demand for precious metals and the Company's future prospects.

In particular, the continued spread of COVID‐19 globally and emergence of new variants could materially and adversely impact the Company's business, including without limitation, employee health, workforce availability and productivity, limitations on travel, supply chain disruptions, increased insurance premiums, increased costs and reduced efficiencies, the availability of industry experts and personnel, restrictions on the Company's exploration and drilling programs and/or the timing to process drill and other metallurgical testing and the slowdown or temporary suspension of operations at some or all of the Company's properties, resulting in reduced production volumes. Although the Company has the capacity to continue certain administrative functions remotely, many other functions, including mining operations, cannot be conducted remotely.

During 2022, the Company continued to implement preventative control measures to protect the safety and health of our employees, contractors, and communities in which we operate, including social distancing, remote working, cancellation of any non-essential visits to the mines, comprehensive sanitation measures for the workplace and company transportation, and pre-screening for virus symptoms. The Company’s Polymerase Chain Reaction (PCR) laboratory in Durango, Mexico, supported these initiatives.

The Company continues to monitor the various government health measures in the jurisdictions where we operate and there are no COVID-19-related restrictions on mine operations at this time.

There is no guarantee that the Company will not experience significant disruptions to or additional closures of some or all of its active mining operations due to COVID-19 restrictions in the future. Any such disruptions or closures could have a material adverse effect on the Company’s production, revenue, net income and business. In addition, parties with whom the Company does business or on whom the Company is reliant, including suppliers and refineries may also be adversely impacted by the COVID-19 crisis which may in turn cause further disruption to the Company’s business, including delays or halts in availability or delivery of consumables and delays or halts in refining of ore from the Company’s mines. Any long-term closures or suspensions may also result in the loss of personnel or the workforce in general as employees seek employment elsewhere.

The impact of COVID‐19 and government responses thereto may also continue to have a material impact on financial markets and could constrain the Company's ability to obtain equity or debt financing in the future, which may have a material and adverse effect on its business, financial condition, and results of operations.

Environmental and Health and Safety Risks

The Company’s activities are subject to extensive laws and regulations governing environmental protection and employee health and safety. Environmental laws and regulations are complex and have tended to become more stringent over time. The Company is required to obtain governmental permits and in some instances air, water quality, and mine reclamation

First Majestic Silver Corp. 2022 Second Quarter Report	Page 29

rules and permits. The Company has complied with environmental taxes applied to the use of certain fossil fuels according to the Kyoto Protocol. Although the Company makes provisions for reclamation costs, it cannot be assured that these provisions will be adequate to discharge its future obligations for these costs. Failure to comply with applicable environmental and health and safety laws may result in injunctions, damages, suspension or revocation of permits and imposition of penalties. While the health and safety of our people and responsible environmental stewardship are our top priorities, there can be no assurance that First Majestic has been or will be at all times in complete compliance with such laws, regulations and permits, or that the costs of complying with current and future environmental and health and safety laws and permits will not materially and adversely affect the Company’s business, results of operations or financial condition.

On August 26, 2021, the NDEP issued 10 Notices of Alleged Violation (collectively the “NOAV”) that alleged the Company doing business as Jerritt Canyon Gold, LLC had violated various air permit conditions and regulations applicable to operations at the Jerritt Canyon in Elko County, Nevada. The NOAV are related to compliance with emission monitoring, testing, recordkeeping requirements, and emission and throughput limits.

The Company filed a Notice of Appeal on September 3, 2021, challenging the NOAV before the Nevada State Environmental Commission (“NSEC”). The Company raised various defenses to the NOAV, including that the Company is not liable for the violations because it was never the owner/operator of Jerritt Canyon during the period the alleged violations began (on April 30, 2021, the Company acquired Jerritt Canyon Canada Ltd, which, through subsidiaries, owns and operates Jerritt Canyon). There is currently no hearing scheduled or any scheduling order in the matter, and the parties have yet to engage in discovery.

On March 8, 2022, NDEP issued an additional four Notices of Alleged Violations to Jerritt Canyon Gold, LLC for alleged exceedances and violations of an Air Quality Operating permit and Mercury Operating Permit to Construct. The new NOAVs relate to alleged exceedances of a mercury emission limitations, exceedances of operating parameters, installation of equipment, and recordkeeping requirements. The Company filed a Request for Hearing with the Nevada State Environmental Commission on March 18, 2022 that challenged the bases for the alleged NOAVs and any potential penalties associated with the NOAVs. JCG and NDEP agreed to waive the 20-day hearing requirement for the NOAVs and the parties request that the NSEC withhold schedule a hearing for the NOAVs at this time. At this time the estimated amount cannot be reliably determined.

Claims and Legal Proceedings Risks

Primero Tax Rulings

First Majestic Silver Corp. 2022 Second Quarter Report	Page 30

In February 2016, PEM received a legal claim from the SAT seeking to nullify the APA. The legal claim did not identify any alternative basis for paying taxes.

(i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request; and

(ii) SAT’s failure to request from PEM certain additional information before issuing the APA.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 31

La Encantada Tax Re-assessments

Corporación First Majestic Back-to-Back Loans

First Majestic Silver Corp. 2022 Second Quarter Report	Page 32

anti-avoidance rule and a literal interpretation of the rules would convert most debt financing in Mexico into back-to-back loans. The back-to-back loan provisions establish that interest expense derived from back-to-back loans can be recharacterized as dividends resulting in significant changes to the tax treatment of interest, including withholding taxes. As a result of this recharacterization and in accordance with the conclusive agreement, CFM made a one time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a deferred tax expense of $54 million.

OTHER FINANCIAL INFORMATION

Share Repurchase Program

No shares were repurchased during the six months ended June 30, 2022 and during the year ended December 31, 2021.

Off-Balance Sheet Arrangements

At June 30, 2022, the Company had no material off-balance sheet arrangements such as contingent interest in assets transferred to an entity, derivative instruments obligations or any obligations that generate financing, liquidity, market or credit risk to the Company, other than contingent liabilities and vendor liability and interest, as disclosed in this MD&A and the consolidated financial statements and the related notes.

Related Party Disclosures

Amounts paid to related parties were incurred in the normal course of business and measured at the exchange amount, which is the amount agreed upon by the transacting parties and on terms and conditions similar to non-related parties.

In July 2020, the Company completed the agreement with First Mining Gold Corp., to purchase 50% of the payable silver produced from the Springpole Gold Project for total consideration of $22.5 million in cash and shares, over three payments, for the silver stream which covers the life of the Springpole project. First Mining is a related party with two independent board members who are directors and/or officers of First Majestic.

With the exception of the agreement with First Mining Gold Corp., there were no transactions with related parties outside of the ordinary course of business during the six months ended June 30, 2022.

Outstanding Share Data

As at August 3, 2022, the Company has 262,765,301 common shares issued and outstanding.

SUBSEQUENT EVENTS

The following significant events occurred subsequent to June 30, 2022:

Declaration of Quarterly Dividend

At-the-Market Distributions ("ATM") Programs

First Majestic Silver Corp. 2022 Second Quarter Report	Page 33

up to $100.0 million. The sale of common shares is to be made through “at-the-market distributions” ("ATM"), as defined in the Canadian Securities Administrators’ National Instrument 44-102 Shelf Distributions, directly on the New York Stock Exchange.

Share Repurchase Program

ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

Critical Accounting Judgments and Estimates

The preparation of consolidated financial statements in conformity with IFRS as issued by the International Accounting Standards Board ("IASB") requires management to make judgments, estimates and assumptions about future events that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may differ from these estimates.

The Company's condensed interim consolidated financial statements for the six months ended June 30, 2022, there were no changes in critical accounting judgments and estimates that were significantly different from those disclosed in the Company’s annual MD&A as at and for the year ended December 31, 2021 and the following accounting policies, critical judgments and estimates in applying accounting policies:

Assets and Liabilities Held-for-Sale:

Accounting Policy:

(ii) The sale of the non-current asset or disposal group is highly probable. For the sale to be highly probable:

•The appropriate level of management must be committed to a plan to sell the asset or disposal group;

•An active program to locate a buyer and complete the plan must have been initiated;

•The non-current asset or disposal group must be actively marketed for sale at a price that is reasonable in relation to its current fair value;

•The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale (with certain exceptions); and

•Actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 34

Significant estimates and judgements:

New and amended IFRS standards that are effective for the current year

In the current year, the Company has applied the below amendments to IFRS Standards and Interpretations issued by the IASB that were effective for annual periods that begin on or after January 1, 2022. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

Property, Plant and Equipment — Proceeds before Intended Use (Amendments to IAS 16)

The amendments were applied effective January 1, 2022 and did not have a material impact on the Company's consolidated financial statements.

Provisions, Contingent Liabilities and Contingent Assets (Amendment to IAS 37)

Future Changes in Accounting Policies Not Yet Effective as at June 30, 2022:

Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgments—Disclosure of Accounting Policies

First Majestic Silver Corp. 2022 Second Quarter Report	Page 35

Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors—Definition of Accounting Estimates

The definition of a change in accounting estimates was deleted. However, the Board retained the concept of changes in accounting estimates in the Standard with the following clarifications:

• A change in accounting estimate that results from new information or new developments is not the correction of an error

Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (Amendments to IAS 12)

NON-GAAP MEASURES

The Company has included certain non-GAAP measures including “Cash costs per silver equivalents ounce”, "All-in sustaining cost per silver equivalent ounce", “Production cost per tonne”, “Average realized silver equivalent price”, "Average realized gold price", “Adjusted earnings per share”, “Free cash flow” and "Working capital” to supplement its consolidated financial statements, which are presented in accordance with IFRS. The terms IFRS and generally accepted accounting principles (“GAAP”) are used interchangeably throughout this MD&A.

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Effective January 1, 2021, the Company transitioned its cost reporting from Cost per Silver Ounce to Cost per Silver Equivalent ("AqEq") Ounce basis. Management believes the change to using silver equivalent ounce will provide management and investors with an improved ability to evaluate operating performance of the Company, as it eliminates volatility in Cash Cost and AISC per ounce due to market volatility in silver and gold prices as well as timing of by-product credit sales. Prior period comparatives of Cash Cost and AISC per ounce have been updated to be consistent with the new AgEq ounce metric.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 36

Cash Cost per AgEq Ounce, All-In Sustaining Cost per AgEq Ounce and Production Cost per Tonne

Cash costs per AgEq ounce and total production cost per tonne are non-GAAP performance measures used by the Company to manage and evaluate operating performance at each of the Company’s operating mining units, in conjunction with the related GAAP amounts. These metrics are widely reported in the mining industry as benchmarks for performance but do not have a standardized meaning and are disclosed in addition to IFRS measures. Management and investors use these metrics for comparing the costs against peers in the industry and for assessing the performance of each mine within the portfolio.

Management calculates the cash costs per ounce and production costs per tonne by:

•starting with the production costs (GAAP) from the income statement;

•adding back duties and royalties, smelting and refining costs as well as transportation and selling costs, which form a part of the cost of sales on the financial statements and provide a better representation of total costs incurred;

•cash costs are divided by the payable silver equivalent ounces produced; and

•production costs are divided by the total tonnes milled.

AISC is a non-GAAP performance measure and was calculated based on guidance provided by the World Gold Council (“WGC”). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining versus expansionary capital expenditures. AISC is a more comprehensive measure than cash cost per ounce and is useful for investors and management to assess the Company’s operating performance by providing greater visibility, comparability and representation of the total costs associated with producing silver from its current operations, in conjunction with related GAAP amounts. AISC helps investors to assess costs against peers in the industry and help management assess the performance of each mine within the portfolio in a standardized manner.

The Company defines sustaining capital expenditures as, “costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output without resulting in an increase in the life of assets, future earnings, or improvements in recovery or grade. Sustaining capital includes costs required to improve/enhance assets to minimum standards for reliability, environmental or safety requirements. Sustaining capital expenditures excludes all expenditures at the Company’s new projects and certain expenditures at current operations which are deemed expansionary in nature.”

Expansionary capital expenditure is defined as, "costs incurred to extend existing assets beyond their current productive capacity and beyond their planned levels of productive output, resulting in an increase in the life of the assets, increasing their future earnings potential, or improving their recoveries or grades which would serve to increase the value of the assets over their useful lives". Development and exploration work which moves inferred resources to measured or indicated resources and adds to the Net Present Value of the assets is considered expansionary in nature. Expansionary capital also includes costs required to improve/enhance assets beyond their minimum standard for reliability, environmental or safety requirements.

Consolidated AISC includes total production costs (GAAP measure) incurred at the Company’s mining operations, which forms the basis of the Company’s total cash costs. Additionally, the Company includes sustaining capital expenditures, corporate general and administrative expense, share-based payments, operating lease payments and reclamation cost accretion. AISC by mine does not include certain corporate and non-cash items such as general and administrative expense and share-based payments. The Company believes this measure represents the total sustainable costs of producing silver from current operations, and provides additional information of the Company’s operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of silver production from current operations, new project and expansionary capital at current operations are not included. Certain other cash expenditures, including tax payments, dividends and financing costs are also not included.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 37

The following tables provide detailed reconciliations of these measures to cost of sales, as reported in notes to our condensed interim consolidated financial statements.

(expressed in thousands of U.S. Dollars, <br>except ounce and per ounce amounts)		Three Months Ended June 30, 2022
	San Dimas
Mining cost		11,785	11,611	3,683	18,270	$45,348
Milling cost		8,550	8,237	5,284	12,696	34,767
Indirect cost		10,234	5,171	2,827	5,176	23,408
Total production cost (A)		30,569	25,019	11,794	36,141	$103,523
Add: transportation and other selling cost		405	267	136	53	915
Add: smelting and refining cost		331	116	187	23	657
Add: environmental duty and royalties cost		316	2,209	106	837	3,468
Total cash cost (B)		31,621	27,611	12,223	37,054	$108,563
Workers’ participation		3,619	1,392	(480)	—	4,531
General and administrative expenses		—	—	—	—	8,969
Share-based payments		—	—	—	—	2,986
Accretion of decommissioning liabilities		298	163	210	514	1,510
Sustaining capital expenditures		9,844	4,163	1,673	7,682	24,227
Operating lease payments		125	1,007	815	—	2,345
All-In Sustaining Costs (C)		45,507	34,336	14,441	45,250	$153,131
Payable silver equivalent ounces produced (D)		3,039,048	2,238,242	867,675	1,544,596	7,689,561
Payable gold equivalent ounces produced (E)		N/A	N/A	N/A	18,632	N/A
Tonnes milled (F)		197,102	228,487	264,555	213,647	903,791
Cash cost per AgEq ounce (B/D)		10.41	12.34	14.09	23.99	$14.12
AISC per AgEq ounce (C/D)		14.97	15.34	16.65	29.29	$19.91
Cash cost per AuEq ounce (B/E)		N/A	N/A	N/A	1,989	N/A
AISC per AuEq ounce (C/E)		N/A	N/A	N/A	2,429	N/A
Production cost per tonne (A/F)		155.09	109.50	44.58	169.16	$114.55

All values are in US Dollars.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 38
(expressed in thousands of U.S. Dollars, <br>except ounce and per ounce amounts)			Three Months Ended June 30, 2021
---	---	---	---	---	---
	San Dimas
Mining cost		12,715	8,253	3,341	14,818	$39,127
Milling cost		8,266	6,868	4,925	8,127	28,185
Indirect cost		10,070	3,436	2,835	3,050	19,391
Total production cost (A)		31,051	18,558	11,101	25,994	$86,704
Add: transportation and other selling cost		363	174	125	13	727
Add: smelting and refining cost		447	145	184	11	787
Add: environmental duty and royalties cost		427	144	118	382	1,068
Total cash cost (B)		32,288	19,021	11,528	26,400	$89,286
Workers’ participation		2,549	52	112	—	2,696
General and administrative expenses		—	—	—	—	6,494
Share-based payments		—	—	—	—	2,768
Accretion of decommissioning liabilities		183	81	133	266	928
Sustaining capital expenditures		10,069	4,487	1,010	4,628	20,684
Operating lease payments		57	633	690	215	1,972
All-In Sustaining Costs (C)		45,146	24,274	13,473	31,509	$124,828
Payable silver equivalent ounces produced (D)		3,175,136	1,139,258	843,931	1,269,128	6,427,453
Payable gold equivalent ounces produced (E)		N/A	N/A	N/A	18,762	N/A
Tonnes milled (F)		202,382	234,381	242,839	146,611	826,213
Cash cost per AgEq ounce (B/D)		10.17	16.70	13.66	20.80	$13.89
AISC per AgEq ounce (C/D)		14.22	21.31	15.97	24.83	$19.42
Cash cost per AuEq ounce (B/E)		N/A	N/A	N/A	1,407	N/A
AISC per AuEq ounce (C/E)		N/A	N/A	N/A	1,679	N/A
Production cost per tonne (A/F)		153.43	79.17	45.71	177.30	$104.94

All values are in US Dollars.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 39
(expressed in thousands of U.S. Dollars, <br>except ounce and per ounce amounts)		Six Months Ended June 30, 2022
---	---	---	---	---	---
	San Dimas
Mining cost		22,682	21,902	6,776	45,463	$96,824
Milling cost		14,708	15,466	9,516	23,029	62,719
Indirect cost		21,235	10,136	5,856	10,694	47,921
Total production cost (A)		58,626	47,504	22,149	79,187	$207,466
Add: transportation and other selling cost		511	377	222	66	1,284
Add: smelting and refining cost		721	216	325	39	1,301
Add: environmental duty and royalties cost		697	3,688	183	1,670	6,238
Total cash cost (B)		60,555	51,785	22,879	80,962	$216,289
Workers’ participation		6,018	2,223	(1,000)	—	7,241
General and administrative expenses		—	—	—	—	18,850
Share-based payments		—	—	—	—	7,808
Accretion of decommissioning liabilities		590	322	419	1,027	3,017
Sustaining capital expenditures		18,023	8,354	3,261	14,783	45,672
Operating lease payments		241	2,076	1,625	—	4,724
All-In Sustaining Costs (C)		85,427	64,760	27,184	96,772	$303,601
Payable silver equivalent ounces produced (D)		6,114,098	4,104,111	1,516,738	3,163,376	14,898,323
Payable gold equivalent ounces produced (E)		N/A	N/A	N/A	39,339	N/A
Tonnes milled (F)		392,402	430,398	514,462	443,648	1,780,909
Cash cost per AgEq ounce (B/D)		9.90	12.62	15.08	25.59	$14.52
AISC per AgEq ounce (C/D)		13.97	15.78	17.92	30.59	$20.38
Cash cost per AuEq ounce (B/E)		N/A	N/A	N/A	2,058	N/A
AISC per AuEq ounce (C/E)		N/A	N/A	N/A	2,460	N/A
Production cost per tonne (A/F)		149.40	110.37	43.05	178.49	$116.50

All values are in US Dollars.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 40
(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)		Six months ended June 30, 2021
---	---	---	---	---	---
	San Dimas
Mining cost		24,292	14,549	6,522	14,818	$60,181
Milling cost		14,909	14,113	8,861	8,127	46,011
Indirect cost		19,831	7,347	5,578	3,050	35,807
Total production cost (A)		59,033	36,009	20,962	25,994	$141,998
Add: transportation and other selling cost		710	322	236	13	1,389
Add: smelting and refining cost		841	264	339	11	1,455
Add: environmental duty and royalties cost		796	256	210	382	1,641
Total cash cost (B)		61,380	36,851	21,747	26,400	$146,483
Workers’ participation		6,018	107	238	—	6,363
General and administrative expenses		—	—	—	—	12,995
Share-based payments		—	—	—	—	6,362
Accretion of decommissioning liabilities		360	158	262	266	1,567
Sustaining capital expenditures		18,905	9,144	1,983	4,628	35,780
Operating lease payments		125	683	1,334	215	3,103
All-In Sustaining Costs (C)		86,788	46,943	25,564	31,509	$212,653
Payable silver equivalent ounces produced (D)		6,084,627	2,022,706	1,585,796	1,269,128	10,962,256
Payable gold equivalent ounces produced (E)		N/A	N/A	N/A	18,762	N/A
Tonnes milled (F)		401,848	419,738	472,260	146,611	1,440,457
Cash cost per AgEq ounce (B/D)		10.09	18.22	13.71	20.80	$13.36
AISC per AgEq ounce (C/D)		14.26	23.21	16.12	24.83	$19.40
Cash cost per AuEq ounce (B/E)		N/A	N/A	N/A	1,407	N/A
AISC per AuEq ounce (C/E)		N/A	N/A	N/A	1,679	N/A
Production cost per tonne (A/F)		146.90	85.78	44.38	177.30	$98.58

All values are in US Dollars.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 41

Average Realized Silver Price per Silver Equivalent Ounce

Revenues are presented as the net sum of invoiced revenues related to delivered shipments of silver or gold doré bars, including associated metal by-products of lead and zinc after having deducted refining and smelting charges, and after elimination of intercompany shipments of silver, silver being minted into coins, ingots and bullion products.

The average realized silver price is a non-GAAP performance measure that allows management and investors to assess the Company's ability to sell ounces produced, in conjunction with related GAAP amounts. Management calculates this measure by taking total revenue reported under GAAP and adding back smelting and refining charges to arrive at the gross reportable revenue for the period. Gross revenues are divided into payable silver equivalent ounces sold to calculate the average realized price per ounce of silver equivalents sold. The streaming and royalty agreements in place between the Company and Sandstorm as well as Wheaton, impacts the total revenues reported on the financial statements given the reduced prices provided to these vendors in line with the terms of the agreements. Therefore, management adjusts revenue to exclude smelting and refining charges as well as revenues earned through agreements with these vendors. This provides management with a better picture regarding its ability to convert ounces produced to ounces sold and provides the investor with a clear picture of the price that the Company can currently sell the inventory for, excluding pre-arranged agreements.

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Revenues as reported	$159,442	$154,073	$316,281	$254,595
Add back: smelting and refining charges	656	787	1,301	1,455
Gross revenues	160,098	154,860	317,582	256,050
Less: Sandstorm gold revenues	(408)	(781)	(699)	(1,338)
Less: Wheaton gold revenues	(6,630)	(6,925)	(12,855)	(13,213)
Gross revenues, excluding Sandstorm, Wheaton (A)	$153,060	$147,154	$304,028	$241,499
Payable silver equivalent ounces sold	7,359,045	6,264,513	14,559,149	10,514,029
Less: Payable silver equivalent ounces sold to<br> Sandstorm	(73,311)	(113,432)	(121,425)	(195,682)
Less: Payable silver equivalent ounces sold to<br> Wheaton	(889,941)	(765,751)	(1,676,335)	(1,455,881)
Payable silver equivalent ounces sold, excluding <br>Sandstorm and Wheaton (B)	6,395,794	5,385,330	12,761,388	8,862,466
Average realized silver price per silver equivalent ounce (A/B)	$23.93	$27.32	$23.82	$27.25
Average market price per ounce of silver per COMEX	$22.63	$26.69	$23.34	$26.47
First Majestic Silver Corp. 2022 Second Quarter Report	Page 42
---	---

Average Realized Gold Price per Ounce

The average realized gold price is a non-GAAP performance measure that allows management and investors to assess the Company's ability to sell ounces produced, in conjunction with related GAAP amounts. Management calculates this measure by taking total revenue reported under GAAP and adding back smelting and refining charges to arrive at the gross reportable revenue for the period. Silver revenues are deducted from the reportable revenue for the period in order to arrive at the gold revenue for the period. Gross gold revenues are divided into gold ounces sold to calculate the average realized price per ounce of gold sold. The streaming and royalty agreements in place between the Company and Sandstorm as well as Wheaton, impacts the total revenues reported on the financial statements given the reduced prices provided to these vendors in line with the terms of the agreements. Therefore, management adjusts revenue to exclude smelting and refining charges as well as revenues earned through agreements with these vendors. This provides management with a better picture regarding its ability to convert ounces produced to ounces sold and provides the investor with a clear picture of the price that the Company can currently sell the inventory for, excluding pre-arranged agreements.

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Gross revenue, excluding Sandstorm, Wheaton	$153,060	$147,154	$304,028	$241,499
Less: Silver revenues	62,089	85,911	124,245	158,762
Gross gold revenues, excluding Sandstorm, Wheaton (A)	$90,970	$61,243	$179,783	$82,737
Gold ounces sold	59,697	46,454	117,912	69,729
Less: Gold ounces sold to Wheaton	10,633	11,214	20,703	21,487
Less: Gold ounces sold to Sandstorm	864	1,669	1,484	2,870
Gold ounces sold, excluding Sandstorm and Wheaton (B)	48,200	33,571	95,725	45,372
Average realized gold price per ounce (A/B)	$1,887	$1,824	$1,878	$1,824
Average market price per ounce of gold	$1,872	$1,816	$1,873	$1,807

Free Cash Flow

Free cash flow is a non-GAAP liquidity measure which is determined based on operating cash flows less sustaining capital expenditures. Management uses free cash flow as a critical measure in the evaluation of liquidity in conjunction with related GAAP amounts. It also uses the measure when considering available cash, including for decision-making purposes related to dividends and discretionary investments. Further, it helps management, the Board of Directors and investors evaluate a Company's ability to generate liquidity from operating activities.

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Operating cash flows	($13,253)	($16,532)	($32,237)	($9,101)
Less: Sustaining capital expenditures	24,227	20,684	45,672	35,780
Free cash flow	($37,480)	($37,216)	($77,909)	($44,881)
First Majestic Silver Corp. 2022 Second Quarter Report	Page 43
---	---

Adjusted Earnings per Share (“Adjusted EPS”)

The Company uses the financial measure “Adjusted EPS” which is a non-GAAP measure, to supplement earnings per share (GAAP) information in its condensed interim consolidated financial statements . The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance.

Management uses adjusted earnings per share as a critical measure operating performance in conjunction with the related GAAP amounts. The only items considered in the adjusted earnings-per-share calculation are those that management believes (1) may affect trends in underlying performance from year to year and (2) are not considered normal recurring cash operating expense.

Adjusted earnings per share is used for forecasting, operational and strategic decision making, evaluating current Company and management performance, and calculating financial covenants. Management believes that excluding certain non-cash and non-recurring items from the calculation increases comparability of the metric from period to period, which makes it useful for management, the audit committee and investors, to evaluate the underlying core operations. The presentation of Adjusted EPS is not meant to be a substitute for EPS presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.

To calculate adjusted earnings per share, management adjusts from net earnings (GAAP), the per-share impact, net of the tax effects of adjustments, of the following:

•share based payments;

•realized and unrealized gains and losses from investment in derivatives and marketable securities; and

•other infrequent or unusual losses and gains.

The following table provides a detailed reconciliation of net earnings (losses) as reported in the Company’s condensed interim consolidated financial statements to adjusted net earnings and Adjusted EPS:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Net (loss) earnings as reported	($84,050)	$15,599	($76,765)	$17,454
Adjustments for non-cash or unusual items:
Tax settlement	21,340	—	21,340	—
Reversal of impairment	(7,585)	—	(7,585)	—
Deferred income tax expense (recovery)	53,262	(9,368)	30,036	(11,193)
Share-based payments	2,986	2,768	7,808	6,362
Loss (gain) from investment in derivatives and marketable securities	3,303	(4,160)	3,849	(2,871)
Abnormal costs (1)	3,117	—	3,117	—
Write-down on assets held-for-sale	—	—	—	2,081
Write-down of mineral inventory	1,941	6,034	6,353	6,034
Acquisition costs	—	1,823	—	1,823
Adjusted net (loss) earnings	($5,686)	$12,696	($11,847)	$19,690
Weighted average number of shares on issue - basic	262,680,950	242,781,479	261,447,267	232,718,998
Adjusted EPS	($0.02)	$0.05	($0.05)	$0.08

(1) Abnormal costs includes $3.1 million incurred as a result of marginal ore material that was processed to keep the mill running at minimum feed requirements to perform government mandated air compliance test work at the Jerritt Canyon Gold mine.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 44

Working Capital and Available Liquidity

Working capital is determined based on current assets and current liabilities as reported in the Company’s consolidated financial statements. The Company uses working capital as a measure of the Company’s short-term financial health and operating efficiency. Available liquidity includes the Company's working capital and undrawn revolving credit facility.

	June 30, 2022	December 31, 2021
Current Assets	$336,257	$397,207
Less: Current Liabilities	(136,431)	(172,822)
Working Capital	$199,826	$224,385
Available Undrawn Revolving Credit Facility	100,000	50,000
Available Liquidity	$299,826	$274,385
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
---

Disclosure Controls and Procedures

The Company’s management, with the participation of its President and Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of the Company’s disclosure controls and procedures. Based upon the results of that evaluation, the Company’s CEO and CFO have concluded that, as of June 30, 2022, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, within the appropriate time periods and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Internal Control over Financial Reporting

The Company’s management, with the participation of its CEO and CFO, is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in the rules of the United States Securities and Exchange Commission and the Canadian Securities Administrators. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS as issued by the IASB. The Company’s internal control over financial reporting includes policies and procedures that:

•maintain records that accurately and fairly reflect, in reasonable detail, the transactions and dispositions of assets of the Company;

• provide reasonable assurance that transactions are recorded as necessary for preparation of financial statements in accordance with IFRS as issued by IASB;

•provide reasonable assurance that the Company’s receipts and expenditures are made only in accordance with authorizations of management and the Company’s Directors; and

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the Company’s condensed interim consolidated financial statements.

The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness for future periods are subject to the risk that controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures.

The Company's management evaluated the effectiveness of our internal controls over financial reporting based upon the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on management's evaluation, our CEO and CFO concluded that our internal controls over financial reporting was effective as of June 30, 2022. There have been no significant changes in our internal controls during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 45

Limitations of Controls and Procedures

The Company’s management, including the President and Chief Executive Officer and Chief Financial Officer, believes that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, may not prevent or detect all misstatements because of inherent limitations. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

CAUTIONARY STATEMENTS

Cautionary Note regarding Forward-Looking Statements

Certain information contained herein this MD&A constitutes forward-looking statements under applicable securities laws (collectively, “forward-looking statements”). These statements relate to future events or the Company’s future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to: commercial mining operations; anticipated mineral recoveries; projected quantities of future mineral production; statements with respect to the Company’s business strategy; future planning processes; anticipated development, expansion, exploration activities and production rates; the estimated cost and timing of plant improvements at the Company’s operating mines and development of the Company’s development projects; the timing of completion of exploration programs and drilling programs; the repayment of the Debentures; statements with respect to the Company’s future financial position including operating efficiencies, cash flow, capital budgets, costs and expenditures; the preparation of technical reports and completion of preliminary economic assessments; the repurchase of the Company’s shares; viability of the Company’s projects; potential metal recovery rates; the conversion of the Company’s securities. All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward-looking statements”.

Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, without limitation: the inherent risks involved in the mining, exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project delays or cost overruns or unanticipated excessive operating costs and expenses, uncertainties related to the necessity of financing, the availability of and costs of financing needed in the future, and other factors described in the Company’s Annual Information Form under the heading “Risk Factors”.

The Company believes that the expectations reflected in any such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein this MD&A should not be unduly relied upon. These statements speak only as of the date of this MD&A. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Cautionary Note regarding Reserves and Resources

National Instrument 43-101 (“NI 43-101”), issued by the Canadian Securities Administrators, lays out the standards of disclosure for mineral projects. This includes a requirement that a certified Qualified Person (“QP”) (as defined under the NI 43-101) supervises the preparation of the mineral reserves and mineral resources. Ramon Mendoza, P. Eng., Vice President

First Majestic Silver Corp. 2022 Second Quarter Report	Page 46

of Technical Services is a certified QP for the Company and has reviewed this MD&A for QP technical disclosures. All NI 43-101 technical reports can be found on the Company’s website at www.firstmajestic.com or on SEDAR at www.sedar.com.

Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Resources

This Management’s Discussion and Analysis has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian NI 43-101 Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) and contained in Industry Guide 7 (“Industry Guide 7”). Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101. However, these terms are not defined terms under Industry Guide 7 and are not permitted to be used in reports and registration statements of United States companies filed with the Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations. In contrast, the Commission only permits U.S. companies to report mineralization that does not constitute “mineral reserves” by Commission standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this Management’s Discussion and Analysis may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.

Additional Information

Additional information on the Company, including the Company’s Annual Information Form and the Company’s audited consolidated financial statements for the year ended December 31, 2021, is available on SEDAR at www.sedar.com and on the Company’s website at www.firstmajestic.com.

First Majestic Silver Corp. 2022 Second Quarter Report	Page 47

Document

Exhibit 99.3

Form 52-109F1

Certification of Interim Filings

Full Certificate

I, Keith Neumeyer, Chief Executive Officer of First Majestic Silver Corp., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of First Majestic Silver Corp. (the “issuer”) for the interim period ended June 30, 2022.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the financial year end

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is COSO’s 2013 Internal Control – Integrated Framework.

5.2ICFR – material weakness relating to design: The issuer has disclosed in its annual MD&A for each material weakness relating to design existing at the financial year end

(a)a description of the material weakness;

(b)the impact of the material weakness on the issuer’s financial reporting and its ICFR; and

(c)the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 Limitation on scope of design: N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2022 and ended on June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date:	August 3, 2022
“Keith Neumeyer”
Keith Neumeyer
Chief Executive Officer

Document

Exhibit 99.4

Form 52-109F1

Certification of Interim Filings

Full Certificate

I, David Soares, Chief Financial Officer of First Majestic Silver Corp., certify the following:

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the financial year end

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the annual filings are being prepared; and

5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is COSO’s 2013 Internal Control – Integrated Framework.

5.2ICFR – material weakness relating to design: The issuer has disclosed in its annual MD&A for each material weakness relating to design existing at the financial year end

(a)a description of the material weakness;

(b)the impact of the material weakness on the issuer’s financial reporting and its ICFR; and

(c)the issuer’s current plans, if any, or any actions already undertaken, for remediating the material weakness.

5.3 Limitation on scope of design: N/A

Date:	August 3, 2022
“David Soares”
David Soares
Chief Financial Officer

Document

NEWS RELEASE

New York - AG	August 4, 2022
Toronto – FR
Frankfurt – FMV

First Majestic Reports Second Quarter Financial Results

and Quarterly Dividend Payment

Vancouver, BC, Canada – First Majestic Silver Corp. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce the unaudited interim consolidated financial results of the Company for the second quarter ended June 30, 2022. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.

SECOND QUARTER 2022 HIGHLIGHTS

•Total production of 7.7 million silver equivalent (“AgEq”) ounces , up 20% compared to Q2 2021. Total production consisted of 2.8 million ounces of silver and 59,391 ounces of gold

•Quarterly revenues totalled $159.4 million, an increase of 3% compared to Q2 2021. The Company withheld approximately 0.2 million ounces of silver in inventory at the end of the quarter. Had the Company sold the withheld inventory, the Company would have generated approximately $5.2 million in additional revenue

•Mine operating earnings of $11.6 million, or a decrease of 61% compared to Q2 2021

•Operating cash flows before movements in working capital and taxes totalled $33.0 million, a decrease of 36% compared to Q2 2021

•Cash costs were $14.12 per AgEq ounce and All-in sustaining costs (“AISC”) (see “Non-GAAP Financial Measures”, below) were $19.91 per AgEq ounce

•Adjusted earnings of ($5.7) million (adjusted EPS of ($0.02)) (see “Non-GAAP Financial Measures”, below) after excluding non-cash and non-recuring items

•As of June 30, 2022, the Company had cash and cash equivalents of $117.7 million and restricted cash of $141.6 million totalling $259.3 million. Restricted cash is inclusive of $44.1 million which is expected to be converted to cash and cash equivalents in the third quarter

•Declared a cash dividend payment of $0.0061 per common share for the second quarter of 2022 for shareholders of record as of the close of business on August 16, 2022, and will be distributed on or about August 31, 2022

•Subsequent to quarter end, the Company repurchased 100,000 common shares at an average price of C$8.52 per share as part of its share repurchase program

“Throughout the second quarter, the silver price continued to experience significant volatility, declining approximately 20% from $25 to $20,” stated President and CEO, Keith Neumeyer. “As a result of this weakness, the Company refocused and successfully reduced its 2022 capital investments without impacting its strong growth in projected production. In Mexico, our three operations generated healthy profit margins as approximately 80% of our total production came in at a low AISC cost of $15.34 per ounce. In addition, we expect consolidated AISC to continue to trend lower throughout the next two quarters as production ramps up at Santa Elena and Jerritt Canyon, as well as other inflationary cost saving measures are achieved.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Key Performance Metrics	2022-Q1	Change<br><br>Q2 vs Q1	2021-Q2	Change<br><br>Q2 vs Q1
Operational
Ore Processed / Tonnes Milled	877,118	3%	826,213	9%
Silver Ounces Produced	2,613,327	6%	3,274,026	(15%)
Silver Equivalent Ounces Produced	7,222,002	7%	6,435,023	20%
Cash Costs per Silver Equivalent Ounce (1)	$14.94	(5%)	$13.89	2%
All-in Sustaining Cost per Silver Equivalent Ounce (1)	$20.87	(5%)	$19.42	3%
Total Production Cost per Tonne(1)	$118.51	(3%)	$104.94	9%
Average Realized Silver Price per Silver Equivalent Ounce (1)	$26.68	(10%)	$27.32	(12%)
Financial (in millions)
Revenues	$156.8	2%	$154.1	3%
Mine Operating Earnings	$15.1	(23%)	$29.4	(61%)
Net (Loss) earnings	$7.3	NM	$15.6	NM
Operating Cash Flows before Movements in Working Capital and Taxes	$35.3	(7%)	$51.2	(36%)
Cash and Cash Equivalents	$192.8	(39%)	$227.1	(48%)
Working Capital (1)	$194.4	3%	$276.3	(28%)
Free Cash Flow (1)	($40.4)	(7%)	($37.2)	1%
Shareholders
(Loss) Earnings per Share ("EPS") - Basic	$0.03	NM	$0.06	NM
Adjusted EPS (1)	($0.02)	8%	$0.05	(141%)

All values are in US Dollars.

NM – Not meaningful

(1) The Company reports non-GAAP measures which include cash costs per silver equivalent ounce produced, all-in sustaining cost per silver equivalent ounce produced, total production cost per tonne, average realized silver price per ounce sold, working capital, adjusted EPS and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company’s financial reporting framework. See “Non-GAAP Financial Measures” below.

Q2 2022 FINANCIAL RESULTS

The Company realized an average silver price of $23.93 per AgEq ounce during the second quarter of 2022, representing a 12% decrease compared to the second quarter of 2021 and a 10% decrease compared to the prior quarter.

Revenues generated in the second quarter totaled $159.4 million compared to $154.1 million in the second quarter of 2021. The increase in revenues was primarily attributed to inclusion of a full quarter of production from Jerritt Canyon and the processing of the Ermitaño ore at the Santa Elena mill, partially offset by weaker metal prices. Additionally, the Company withheld sales of approximately 0.2 million ounces of silver at the end of the

quarter. Had the Company sold the withheld inventory, the Company would have generated approximately $5.2 million in additional revenue using the quarterly average realized price of $23.93 per ounce.

Mine operating earnings totaled $11.6 million compared to $29.4 million in the second quarter of 2021. The decrease in mine operating earnings is primarily attributed to lower metal prices, an increase in cost of sales and depreciation and depletion attributed to the addition of Jerritt Canyon and Ermitaño, partially offset by an increase in AgEq ounces sold.

During the quarter, following the completion of a tax audit, the Company successfully negotiated and signed a conclusive agreement with the Mexican tax authority, the Servicio de Administration Tributaria (“SAT”) via Corporación First Majestic S.A. de C.V. (“CFM”) through Mexico’s Office of the Taxpayer Ombudsman (“PRODECON”) to settle an uncertain tax position relating to intercompany debt financing in Mexico. In accordance with the conclusive agreement, CFM made a one-time payment of approximately $21.3 million in the period which has been recognized as a current tax expense during the period. In addition to the payment made, CFM agreed to surrender certain tax loss carry forwards resulting in a non-cash deferred tax expense of $54 million.

The Company reported net earnings of ($84.1 million) (EPS of ($0.32)) compared to $15.6 million (EPS of $0.06) in the second quarter of 2021. The decrease in net earnings was primarily attributed to a $78.7 million income tax expense compared to an expense of $1.0 million in the second quarter of 2021. This was partially offset by a reversal of impairment recorded at La Guitarra of $7.6 million as the mine was classified as an asset held-for-sale following the announcement in May 2022 to sell the property to Sierra Madre Gold and Silver Ltd. for approximately $35 million in share consideration.

Adjusted net earnings for the quarter was ($5.7) million (adjusted EPS of ($0.02)) compared to $12.7 million (adjusted EPS of $0.05) in the second quarter of 2021.

Cash flow from operations before movements in working capital and income taxes in the quarter was $33.0 million compared to $51.2 million in the second quarter of 2021.

As of June 30, 2022, the Company had cash and cash equivalents of $117.7 million and restricted cash of $141.6 million totalling $259.3 million. Restricted cash is inclusive of $44.1 million which is expected to be converted to cash and cash equivalents in the third quarter. The Company has total available liquidity of $299.8 million, including $100.0 million of available undrawn revolving credit facility.

OPERATIONAL HIGHLIGHTS

The table below represents the quarterly operating and cost parameters at each of the Company’s four producing mines during the quarter.

Second Quarter Production Summary	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Ore Processed / Tonnes Milled	197,102	228,487	264,555	213,647	903,791
Silver Ounces Produced	1,527,465	384,953	863,510	—	2,775,928
Gold Ounces Produced	18,354	22,309	96	18,632	59,391
Silver Equivalent Ounces Produced	3,046,664	2,241,763	871,365	1,546,143	7,705,935
Cash Costs per Silver Equivalent Ounce	$10.41	$12.34	$14.09	$23.99	$14.12
All-in Sustaining Cost per Silver Equivalent Ounce	$14.97	$15.34	$16.65	$29.29	$19.91
Cash Cost per Gold Equivalent Ounce	N/A	N/A	N/A	$1,989	N/A
All-In Sustaining Costs per Gold Equivalent Ounce	N/A	N/A	N/A	$2,429	N/A
Total Production Cost per Tonne	$155.09	$109.50	$44.58	$169.16	$114.55

(1) The Company reports non-GAAP measures which include cash costs per silver equivalent ounce produced, all-in sustaining cost per silver equivalent ounce produced, total production cost per tonne, average realized silver price per ounce sold, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company's financial reporting framework. See “Non-GAAP Financial Measures”, below

Total production in the second quarter was 7.7 million AgEq ounces, consisting of 2.8 million ounces of silver and 59,391 ounces of gold, representing a 20% increase compared to the second quarter of 2021 primarily due to a full quarter of production from the Jerritt Canyon mine and successful ramp up of the Ermitaño mine at Santa Elena.

COSTS AND CAPITAL EXPENDITURES

Cash cost for the quarter was $14.12 per AgEq ounce, compared to $14.94 per ounce in the previous quarter. The decrease in cash costs per AgEq ounce was primarily attributed to an increase in AgEq production and implementation of costs saving measures. Production at Santa Elena and La Encantada increased by 20% and 34%, respectively, compared to the prior quarter, driven by the successful ramp up of the Ermitaño mine and a 30% increase in silver grades at La Encantada compared to the prior quarter. Additionally, the Company has implemented a number of costs saving measures in an effort to combat the inflationary impacts.

AISC in the second quarter was $19.91 per ounce compared to $20.87 per ounce the previous quarter. The decrease in AISC per AgEq ounce was primarily attributed to lower cash costs per AgEq ounce as well as a decrease in general and administrative costs and share-based payments during the quarter.

Total capital expenditures in the second quarter were $70.0 million, primarily consisting of $14.4 million at San Dimas, $16.4 million at Santa Elena, $2.8 million at La Encantada, $26.9 million at Jerritt Canyon and $9.5 million for strategic projects.

Q2 2022 DIVIDEND ANNOUNCEMENT

The Company is pleased to announce that its Board of Directors has declared a cash dividend payment in the amount of $0.0061 per common share for the second quarter of 2022. The second quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on August 16, 2022 and will be distributed on or about August 31, 2022.

Under the Company’s dividend policy, the quarterly dividend per common share is targeted to equal approximately 1% of the Company’s net quarterly revenues divided by the Company’s then outstanding common shares on the record date.

The amount and distribution dates of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.

ABOUT THE COMPANY

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.

First Majestic is proud to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at its Bullion Store at some of the lowest possible premiums.

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.

“signed”

Keith Neumeyer, President & CEO

Non-GAAP Measures

This press release includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework. These measures include cash costs per silver equivalent ounce produced, all-in sustaining cost (or “AISC”) per silver equivalent ounce produced, total production cost per tonne, average realized silver price per ounce sold, working capital, adjusted EPS and cash flow per share. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These measures are widely used in the mining industry as a benchmark for performance but do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures disclosed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to GAAP terms please see "Non-GAAP Measures" in the Company's most recent management discussion and analysis filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov and which is incorporated by reference herein.

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward‐looking information” and "forward-looking statements” under applicable Canadian and U.S. securities laws (collectively, “forward‐looking statements”). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: conversion of restricted cash and payment of dividends. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “forecast”, “potential”, “target”, “intend”, “could”, “might”, “should”, “believe” and similar expressions) are not statements of historical fact and may be “forward‐looking statements”.

Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.