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UPDATE: MAG Silver Reports 2012 Annual Results; Shares Fall 3.8%

MAG Silver Corp. (MAG.TO) today announced its audited consolidated financial results for the year ended December 31, 2012, in US$.

2012 FINANCIAL PERFORMANCE

At December 31, 2012, the Company had working capital of $40,492,095 (December 31, 2011: $25,779,667), including cash on hand of $40,621,158 (December 31, 2011: $26,217,409). The primary use of cash during the year ended December 31, 2012 was for exploration and evaluation expenditures in Mexico totaling $11,981,221 (December 31, 2011: $9,014,714). The Company also advanced to Minera Juanicipio, S.A. de C.V. and expended on its own account a further $4,577,611 (December 31, 2011: $2,583,367) for work conducted on the Juanicipio property.

The Company's net loss amounted to $12,109,761 (or $0.22 per share) for the year ended December 31, 2012 as compared to $8,250,743 (or $0.15 per share) in 2011. The increased net loss in 2012 is due to increased exploration and evaluation cost write-downs (Esperanza - $2,468,379 and a claim under the Lagartos properties - $896,099, compared to $531,515 in 2011 for the San Ramone property) and costs incurred in 2012 dealing and negotiating with a dissident group of MAG shareholders. The 2011 comparable loss was also reduced by the receipt of a $1.86 million arbitration award recognized as income in the prior year.

Gordon Neal, VP of Corporate Development, resigned from MAG Silver for personal reasons. Neal joined MAG in 2005. He has agreed to be available to the Company on a consulting basis through a transitional period. Effective March 4, 2013, the Company appointed Michael Curlook as Vice President, Investor Relations and Communications. Curlook recently held the position of Head of Investor Relations and Communications for Great Basin Gold Ltd and was previously Manager of Investor Relations for Farallon Mining/Hunter Dickinson Inc.

Michael Petrina, VP of Operations has tendered his resignation effective mid-April, to accept a new position based in Ontario.

Shares are down 36 cents to $9.28 late morning, on volume 16,250.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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