MAG Silver Reports Third Quarter Financial Results

MAG Silver Reports Third Quarter Financial Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 -- MAG Silver
Corp. (TSX:MAG)(NYSE MKT:MVG) ("MAG" or the "Company") announces the
Company's unaudited financial results for the three and nine months
ended September 30, 2012. For complete details of the third quarter
unaudited Condensed Interim Consolidated Financial Statements and
related Management's Discussion and Analysis, please see the
Company's filings on SEDAR ( or on EDGAR (
All amounts herein are reported in United States dollars unless
otherwise specified. 
As at September 30, 2012, the Company had working capital of
$43,685,026, including cash on hand of $44,081,885. On September 5,
2012, the Company closed a brokered private placement for 3,526,210
common shares of the Company at a price of C$9.40 per share for net
proceeds of $31,325,931. The primary use of cash during the three and
nine months ended September 30, 2012 was for exploration and
evaluation expenditures totaling $4,691,045 and $10,481,860
respectively, and an additional $824,936 and $3,203,074 respectively
for the Juanicipio property. Accounts receivable at September 30,
2012 totaled $1,123,544 (2011: $2,218,162) and was comprised
primarily of value added taxes repayable to the Company by the
Government of Mexico. Current liabilities at September 30, 2012
amounted to $2,145,298 (2011: $2,069,740) and are attributable
primarily to accrued exploration and legal expenses. 
The Company's net loss for the three and nine months ended September
30, 2012 amounted to $3,609,463 and $6,167,196 respectively
(September 30, 2011: $3,049,184 and $4,463,335 respectively). The net
loss increased in the current period due to additional costs incurred
in the current quarter dealing and negotiating with a dissident group
of MAG shareholders, Mining Investors for Shareholder Value ("MISV").
MISV and the Company ultimately reached a settlement agreement on
September 4, 2012 whereby MAG presented a slate of nine directors for
election to shareholders at the annual and special meeting, including
two MISV nominees (Richard Clark and Peter Barnes), along with seven
existing members of MAG's board. Subsequent to the quarter end, the
shareholders overwhelmingly elected all nine 
directors standing for
Minera Juanicipio 
A National Instrument 43-101 compliant Updated Preliminary Economic
Assessment for the Juanicipio Project carried out by AMC Mining
Consultants (Canada) Ltd. (the "AMC Study") was announced on June 14,
2012 and filed on SEDAR on July 16, 2012, (see News Release dated
June 14, 2012: With
the completion of the AMC Study, MAG and Fresnillo Plc. now have a
framework on which the joint venture Technical Committee can build
upon for the continued advancement of the Juanicipio Project. 
On August 15, 2012, the Company announced that the board of directors
of Minera Juanicipio S.A. de C.V. ("Minera Juanicipio") had approved
an 18 month mine permitting and underground development budget of $25
million ($10.0 million for 2012 with the remaining $15 million
earmarked for 2013). The 2013 underground development plan includes
the first 2,500 metres of ramp development and is projected to cost
$11.9 million with another $2.3 million dedicated to further
drilling, plus $1.2 million for reporting, general and other
administrative expenses. MAG's 44% share of the 2013 predevelopment
budget is $6.6 million. The Minera Juancipio 2013 exploration budget
will be determined in the fourth quarter. 
The Joint Venture has begun the permitting process and anticipates
receipt of all necessary permits by early 2013, with the underground
decline ground breaking expected to follow shortly thereafter. 
Cinco de Mayo 
Because of the expense of drilling at depths, MAG has currently
contracted for the execution of an orientation 2 and 3 Dimensional
Seismic survey to determine if the newly discovered Pegaso system can
be better defined before further deep drilling is undertaken. This
work is scheduled to commence early in the first quarter of 2013.
Definition and exploration drilling will resume immediately
thereafter pending completion of the seismic survey and permit
renewal. Exploration drilling permits in Mexico now require a "Soil
Use Change Permit," reflecting conversion of land from agricultural
to industrial use. These permits incorporate surface access
permissions, verification of mining concession title, and compliance
with environmental norms. The Company is in the process assembling
the information required in order to submit the application, and
final permit approval is expected in the first quarter of 2013. 
On October 3, 2012, MAG announced that Roscoe Postle Associates Inc.
("RPA") had completed the first independent mineral resource estimate
for the Upper Manto (see News Release dated October 3, 2012: The
Company is currently negotiating the terms of reference for a PEA on
the Upper Manto for completion in 2013. In addition, metallurgical
test work on the Pozo Seco zone has indicated that recoveries of both
molybdenum and gold are sufficient to warrant a PEA, and MAG has
engaged RPA and Samuel Engineering to carry out an independent PEA on
Pozo Seco which will be completed in the fourth quarter of 2012. 
About MAG Silver Corp. ( 
MAG is focused on district scale projects located within the Mexican
Silver Belt. Our mission is to become one of the premier companies in
the silver mining industry. MAG is conducting ongoing exploration of
its portfolio of 100% owned properties in Mexico including a silver,
lead and zinc discovery and a moly-gold discovery at its 100% owned
Cinco de Mayo property in Chihuahua State. MAG and Fresnillo plc are
jointly developing the Valdecanas Vein and delineating the
Desprendido and Juanicipio discoveries on the Juanicipio Joint
Venture in Zacatecas State. MAG is based in Vancouver, British
Columbia, Canada. Its common shares trade on the TSX under the symbol
MAG and on the NYSE MKT under the symbol MVG. 
On behalf of the Board of MAG SILVER CORP. 
Larry Taddei, Chief Financial Officer 
This release includes certain statements that may be deemed to be
"forward-looking statements" within the meaning of the US Private
Securities Litigation Reform Act of 1995. All statements in this
release, other than statements of historical facts are forward
looking statements, including statements that address future mineral
production, reserve potential, exploration drilling, exploitation
activities and events or developments. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "predict", "potential", "targeting", "intend",
"could", "might", "should", "believe" and similar expressions. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. Although
MAG believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
statements. Factors that could cause actual results to differ
materially from those in forward-looking 
statements include, but are
not limited to, changes in commodities prices, changes in mineral
production performance, exploitation and exploration successes,
continued availability of capital and financing, and general
economic, market or business conditions, political risk, currency
risk and capital cost inflation. In addition, forward-looking
statements are subject to various risks, including that data is
incomplete and considerable additional work will be required to
complete further evaluation, including but not limited to drilling,
engineering and socio-economic studies and investment. The reader is
referred to the Company's filings with the SEC and Canadian
securities regulators for disclosure regarding these and other risk
factors. There is no certainty that any forward looking statement
will come to pass and investors should not place undue reliance upon
forward-looking statements. 
Cautionary Note to Investors Concerning Estimates of Indicated
This press release uses the term "Indicated Resources". MAG advises
investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not
to assume that any part or all of mineral deposits in this category
will ever be converted into reserves. 
Cautionary Note to Investors Concerning Estimates of Inferred
This press release uses the term "Inferred Resources". MAG advises
investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101-Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not
to assume that any part or all of the mineral deposits in this
category will ever be converted into reserves. In addition, "Inferred
Resources" have a great amount of uncertainty as to their existence,
and 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, or economic studies except for Preliminary Assessment as
defined under Canadian National Instrument 43-101. Investors are
cautioned not to assume that part or all of an Inferred Resource
exists, or is economically or legally mineable. 
Please Note: 
Investors are urged to consider closely the disclosures in MAG's
annual and quarterly reports and other public filings, accessible
through the Internet at and 
Neither the Toronto Stock Exchange nor the NYSE MKT has reviewed or
accepted responsibility for the accuracy or adequacy of this press
release, which has been prepared by management. 
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 681-0894 (FAX)
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