May 12, 2003

News Release: Drilling Commences at Juanicipio

MAG Silver Corp. is pleased to announce that drilling commenced on its Juanicipio Property at Fresnillo, Zacatecas on Saturday, May 10, 2003. The 3,500 metre program is designed to test a series of target structures that are aligned with the major veins currently in production, or under advanced exploration, at the Fresnillo Mine. Juanicipio lies 5km from the principal production head-frame of the Fresnillo Mine, and approximately 3km from the western-most underground workings. Exploration and development of the mine continues to advance west towards Juanicipio. Structures in Juanicipio show substantial geological, geochemical and geophysical similarity to the principal Fresnillo veins and are inferred to be the on-strike continuation of the district. Juanicipio is covered by a 3km by 8km blanket of pervasive silicification from 50-100 metres thick believed to be related to early stage Fresnillo mineralization. This silicification is cut by later structures carrying argillic and advanced argillic alteration similar to that marking the upper-most reaches of later stage high-grade Fresnillo veins. These later structures are MAG's targets. The first angle hole will test a 150 metre wide structural zone on trend with a string of over 10 Penoles drill holes. The zone consists of at least 12 parallel fault strands carrying strong pyrite and hematite mineralization. Geochemical signatures are similar to those of the veins of the district. The drill road has exposed advanced argillic alteration of volcanic rocks beneath the silicification that is stronger than anything seen previously on the property. Geological data indicate that target style mineralization is expected to lie at roughly 500 metres depth, which is reinforced by strong NSAMT geophysical anomalies appearing at that depth on the structures. The angle hole is planned to continue to 750 metres (down hole) to cut as many of the structures as possible. Alteration intercepts on structures above the target depth may yield targets for subsequent holes.

The Fresnillo Mine is operated by Industrias Penoles and currently

produces 12% of the world's silver from high-grade (23oz/T Ag plus up to 0.1oz/T Au) veins. Overall production plus reserves for Fresnillo since 1560 is around 1 billion ounces of silver with roughly 400 million ounces of production coming since 1976, when the veins currently being mined were found.

On behalf of the Board of

MAG SILVER CORP.

'George S. Young'

President, Director

CONTACT: TEL: (604) 630-1399 MAG Silver Corp., George S. Young

FAX: (604) 484-4710

Website: www.magsilver.com

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