6-K

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 November 4, 2021

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, 2021 and 2020
99.2	Management's Discussion and Analysis for the Quarter Ended June 30, 2021
99.3	Certification of Interim Filings - CEO
99.4	Certification of Interim Filings - CFO
99.5	News Release dated August 16, 2021

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

November 4, 2021

EX-99.1

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(UNAUDITED)

925 West Georgia Street, Suite 1800, Vancouver, B.C., Canada V6C 3L2
Phone: 604.688.3033 | Fax: 604.639.8873| Toll Free: 1.866.529.2807 | Email: info@firstmajestic.com
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	Raymond Polman, CPA, CA
President & CEO	Chief Financial Officer
November 3, 2021	November 3, 2021

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.	8
Statements of Earnings (Loss)
	Note 5. Segmented Information	11
	Note 6. Revenues	13
	Note 7. Cost of Sales	14
	Note 8. General and Administrative Expenses	14
	Note 9. Mine Holding Costs	14
	Note 10. Investment and Other Income (Loss)	15
	Note 11. Finance Costs	15
	Note 12. Earnings or Loss per Share	15
Statements of Financial Position
	Note 13. Inventories	16
	Note 14. Other Financial Assets	16
	Note 15. Mining Interests	16
	Note 16. Property, Plant and Equipment	19
	Note 17. Right-of-Use Assets	20
	Note 18. Restricted Cash	21
	Note 19. Trade and Other Payables	22
	Note 20. Debt Facilities	22
	Note 21. Lease Liabilities	24
	Note 22. Share Capital	26
Other items
	Note 23. Financial Instruments and Related Risk Management	29
	Note 24. Supplemental Cash Flow Information	33
	Note 25. Contingencies and Other Matters	34

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 and 2020
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 September 30,		Nine Months Ended September 30,
	Note	2021	2020	2021	2020
Revenues	6	$124,646	$125,881	$379,241	$246,801
Mine operating costs
Cost of sales	7	92,006	60,275	244,849	136,297
Cost of sales - standby costs	7	—	—	—	10,112
Depletion, depreciation and amortization		29,122	17,573	73,335	39,006
		121,128	77,848	318,184	185,415
Mine operating earnings		3,518	48,033	61,057	61,386
General and administrative expenses	8	6,213	5,520	20,075	17,650
Share-based payments		3,069	1,703	9,431	6,028
Mine holding costs	9	3,344	4,184	9,571	14,566
Loss on divestiture of exploration projects		—	(6,421)	—	3,685
Acquisition costs	4	127	—	1,950	—
Foreign exchange loss (gain)		1,676	5,340	(903)	8,743
Operating (loss) earnings		(10,911)	37,707	20,933	10,714
Investment and other (loss) income	10	(4,863)	2,741	(3,684)	7,460
Finance costs	11	(4,027)	(3,650)	(11,927)	(11,056)
Unrealized gain (loss) on foreign currency derivatives		—	7,541	—	(4,862)
Earnings (loss) before income taxes		(19,801)	44,339	5,322	2,256
Incometaxes
Current income tax expense		6,678	3,842	25,540	5,851
Deferred income tax (recovery) expense		(8,073)	9,551	(19,266)	7,863
		(1,395)	13,393	6,274	13,714
Net (loss) earnings for the period		($18,406)	$30,946	($952)	($11,458)
(Loss) earnings per common share
Basic	12	($0.07)	$0.14	$0.00	($0.05)
Diluted	12	($0.07)	$0.14	$0.00	($0.05)
Weightedaveragesharesoutstanding
Basic	12	256,363,759	214,919,070	240,687,196	211,333,281
Diluted	12	256,363,759	233,794,570	240,687,196	211,333,281

Approved and authorized by the Board of Directors for issuance on November 3, 2021

Keith Neumeyer, Director	Douglas Penrose, Director

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 1

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 3O, 2021 and 2020
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 September 30,		Nine Months Ended September 30,
		2021	2020	2021	2020
Net (loss) earnings for the period		($18,406)	$30,946	($952)	($11,458)
Other comprehensive (loss) income
Items that will not be subsequently reclassified to net earnings (loss):
Unrealized (loss) gain on fair value of investments in marketable securities, net of tax	14(b)	(7,516)	1,273	(12,652)	7,351
Realized (loss) gain on investments in marketable securities, net of tax	14(b)	(169)	83	(1,425)	280
Remeasurement of retirement benefit plan		—	—	—	(455)
Other comprehensive (loss) income		(7,685)	1,356	(14,077)	7,176
Total comprehensive (loss) income		($26,091)	$32,302	($15,029)	($4,282)

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 and 2020
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 September 30,		Nine Months Ended September 30,
	Note	2021	2020	2021	2020
OperatingActivities
Net (loss) earnings for the period		($18,406)	$30,946	($952)	($11,458)
Adjustments for:
Depletion, depreciation and amortization		29,528	18,048	74,608	40,406
Share-based payments		3,069	1,703	9,431	6,028
Income tax expense (recovery)		(1,395)	13,393	6,274	13,714
Finance costs	11	4,027	3,650	11,927	11,056
Acquisition costs	4	127	—	1,950	—
Loss on assets held-for-sale	10	—	—	2,081	—
Loss (gain) from marketable securities and silver futures derivatives		5,169	(2,497)	2,358	(6,497)
Loss (gain) on divestiture of exploration projects	15	—	(6,282)	—	3,894
Fair value adjustment on foreign currency derivatives		—	(7,541)	—	4,862
Unrealized foreign exchange loss (gain)		486	800	(2,751)	(2,886)
Operatingcashflowsbeforeworkingcapital and taxes		22,605	52,220	104,926	59,119
Net change in non-cash working capital items	24	(19,210)	3,565	(53,988)	(17,817)
Income taxes paid		(15,383)	(782)	(72,027)	(4,799)
Cash (used in) provided byoperatingactivities		(11,988)	55,003	(21,089)	36,503
InvestingActivities
Restricted cash acquired on the acquisition of Jerritt Canyon	4	—	—	30,000	—
Reclassification to restricted cash related to the acquisition of Jerritt Canyon	18(a)	(12,505)	—	(12,505)	—
Expenditures on mining interests		(30,291)	(17,492)	(97,720)	(46,724)
Acquisition of property, plant and equipment		(15,757)	(12,574)	(33,716)	(31,664)
Deposits paid for acquisition of non-current assets		(2,805)	(660)	(7,096)	(6,290)
Jerritt Canyon acquisition costs, net of cash acquired	4	(127)	—	(925)	—
Acquisition of Springpole Silver Stream	15(d)	—	(2,521)	—	(2,521)
Other	24	45	(275)	948	1,424
Cash used ininvestingactivities		(61,440)	(33,522)	(121,014)	(85,775)
FinancingActivities
Proceeds from prospectus offering, net of share issue costs	22(a)	17,606	112,374	66,674	126,166
Proceeds from exercise of stock options		379	7,337	13,643	10,183
Repayment of lease liabilities	21	(2,734)	(1,803)	(6,260)	(5,220)
Finance costs paid		(1,763)	(1,736)	(4,195)	(3,976)
Proceeds from debt facility	20	30,000	—	30,000	—
Repayment of debt facilities	20(b)	—	—	—	(10,000)
Dividends declared and paid	22(g)	(1,535)	—	(2,667)	—
Shares repurchased and cancelled	22(f)	(42)	—	(42)	(1,694)
Cashprovided by financingactivities		41,911	116,172	97,153	115,459
Effect of exchange rate on cash and cash equivalents held in foreign currencies		(2,782)	(447)	(818)	(2,760)
(Decrease) increase in cash and cash equivalents		(31,517)	137,653	(44,950)	66,187
Cash and cash equivalents, beginning of the period		227,109	95,230	238,578	169,009
Cash and cash equivalents, end of period		$192,810	$232,436	$192,810	$232,436
Cash		$192,810	$202,445	$192,810	$202,445
Short-term investments		—	29,991	—	29,991
Cash and cash equivalents, end of period		$192,810	$232,436	$192,810	$232,436
Supplementalcashflowinformation	24

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 3

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT SEPTEMBER 30, 2021 AND DECEMBER 31, 2020
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	September 30, 2021	December 31, 2020
Assets
Currentassets
Cash and cash equivalents		$192,810	$238,578
Restricted cash	18(a)	43,666	—
Trade and other receivables		5,540	4,271
Value added taxes receivable	23(c)	57,378	41,641
Inventories	13	71,760	32,512
Other financial assets	14	23,482	36,319
Prepaid expenses and other		5,487	2,725
Totalcurrentassets		400,123	356,046
Non-currentassets
Mining interests	15	987,869	509,730
Property, plant and equipment	16	486,849	258,220
Right-of-use assets	17	29,351	14,330
Deposits on non-current assets		10,631	14,246
Non-current restricted cash	18(b)	66,997	—
Non-current value added taxes receivable	23(c)	580	15,301
Deferred tax assets		69,088	69,644
Totalassets		$2,051,488	$1,237,517
LiabilitiesandEquity
Currentliabilities
Trade and other payables	19	$112,731	$76,002
Unearned revenue	6	4,391	2,717
Current portion of debt facilities	20	383	10,975
Current portion of lease liabilities	21	10,815	5,358
Income taxes payable		9,326	6,574
Total currentliabilities		137,646	101,626
Non-currentliabilities
Debt facilities	20	186,390	141,733
Lease liabilities	21	25,926	15,217
Decommissioning liabilities		157,942	51,471
Other liabilities		6,282	5,406
Non-current income taxes payable		22,031	23,099
Deferred tax liabilities		122,866	48,729
Totalliabilities		$659,083	$387,281
Equity
Share capital		1,620,423	1,087,139
Equity reserves		114,501	101,997
Accumulated deficit		(342,519)	(338,900)
Totalequity		$1,392,405	$850,236
Totalliabilitiesandequity		$2,051,488	$1,237,517
Commitments (Note 15; Note 23(c))

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 4

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020
Condensed Interim Consolidated Financial Statements - Unaudited	(In thousands of US dollars, except share and per share amounts)

The 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		Total equity
Balance at December 31, 2019	208,112,072	$933,182	$74,060	($2,532)	$19,164	$90,692	($361,553)	$662,321
Net loss for the period	—	—	—	—	—	—	(11,458)	(11,458)
Other comprehensive income	—	—	—	7,176	—	7,176	—	7,176
Total comprehensive loss	—	—	—	7,176	—	7,176	(11,458)	(4,282)
Share-based payments	—	—	6,028	—	—	6,028	—	6,028
Shares issued for:
Prospectus offerings (Note 22(a))	10,654,338	126,166	—	—	—	—	—	126,166
Exercise of stock options (Note 22(b))	1,710,079	14,551	(4,368)	—	—	(4,368)	—	10,183
Acquisition of Springpole Silver Stream (Note 15)	805,698	7,479	—	—	—	—	—	7,479
Settlement of restricted share units (Note 22(c))	127,000	992	(992)	—	—	(992)	—	—
Shares repurchased and cancelled (Note 22(f))	(275,000)	(1,260)	—	—	—	—	(434)	(1,694)
Balance at September 30, 2020	221,134,187	$1,081,110	$74,728	$4,644	$19,164	$98,536	($373,445)	$806,201
Balance at December 31, 2020	221,965,011	$1,087,139	$75,420	$7,413	$19,164	$101,997	($338,900)	$850,236
Net loss for the period	—	—	—	—	—	—	(952)	(952)
Other comprehensive loss	—	—	—	(14,077)	—	(14,077)	—	(14,077)
Total comprehensive loss	—	—	—	(14,077)	—	(14,077)	(952)	(15,029)
Share-based payments	—	—	9,562	—	—	9,562	—	9,562
Shares issued for:
Acquisition of Jerritt Canyon (Note 4)	26,719,727	416,561	23,150	—	—	23,150	—	439,711
Sprott Private Placement (Note 4)	1,705,514	26,589	—	—	—	—	—	26,589
Prospectus offerings (Note 22(a))	4,225,000	66,674	—	—	—	—	—	66,674
Exercise of stock options (Note 22(b))	1,562,564	19,179	(5,536)	—	—	(5,536)	—	13,643
Acquisition of Springpole Silver Stream (Note 15(d))	287,300	3,750	—	—	—	—	—	3,750
Settlement of restricted share units (Note 22(c))	44,137	573	(595)	—	—	(595)	—	(22)
Shares repurchased and cancelled (Note 22(f))	(6,913)	(42)	—	—	—	—	—	(42)
Dividend declared and paid (Note 22(g))	—	—	—	—	—	—	(2,667)	(2,667)
Balance at September 30, 2021	256,502,340	$1,620,423	$102,001	($6,664)	$19,164	$114,501	($342,519)	$1,392,405

(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 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") 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 $26.3 million, net of deferred tax effect of $7.1 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. 2021 Third Quarter Report	Page 5

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

1. NATURE OF OPERATIONS

First Majestic Silver Corp. (the “Company” or “First Majestic”) is in the business of silver 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: the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, and the recently acquired 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.

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.

2. 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, 2020, 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 23(a)) 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, 2020 except as outlined in Note 3.

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 nine months ended September 30, 2021, 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, 2020 and the following accounting policies, critical judgments and estimates in applying accounting policies:

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 6

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

3. SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS (continued)

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

Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

The amendments in Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) introduce a practical expedient for modifications required by the reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and introduce disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition.

The amendments were applied effective January 1, 2021 and did not have a material impact on the Company’s financial statements.

Future Changes in Accounting Policies Not Yet Effective as at September 30, 2021:

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 are applied on or after the first annual reporting period beginning on or after January 1, 2022, with early application permitted. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Company first applies the amendments. The Company will recognise the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings at the beginning of that earliest period presented. This amendment will impact the Company’s accounting for proceeds from mineral sales prior to reaching commercial production levels intended by management.

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.

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.

Critical Judgments and Estimates

Fair Value Estimates in the Acquisition of Jerritt Canyon (Note 4)

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. These provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period ends as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable and shall not exceed one year from the acquisition date.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 7

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

3. SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGMENTS (continued)

Critical Judgments and Estimates (continued)

Classification of current and non-current restricted cash (Note 18)

The Company assesses the classification of the restricted cash between current and non-current based on the following factors:

•an asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the period; and

•it expects to realize the asset within twelve months after the reporting period.

The evaluation was performed based on the available information at the end of the reporting period; if there are changes in the circumstances the Company will reassess the classification.

4. 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"), five million common share purchase warrants, each exercisable for one common share of the Company at a price of $20 per share for a period of three years (the "Consideration Warrants"). 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. The parties have agreed that the estimated amount of such tax liability is approximately $47.1 million, which amount was paid from the Escrowed Funds and the Purchase Price was thereby increased by $12.5 million, being the difference between the Triggered Tax amount and $60 million ("Triggered Tax Adjustment"). In addition, the purchase price was reduced by $2.8 million by which the closing working capital of Jerritt Canyon was less than zero (the “Working Capital Adjustment”).

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 3,600 tonnes per day (“tpd”) and is currently operating at an average rate of approximately 2,200 tpd due to limited ore production from two underground mines. The property consists of a large, underexplored land package consisting of 30,821 hectares (119 square miles). In 2020, Jerritt Canyon produced 112,749 ounces of gold at a cash cost of $1,289 per ounce.

Management has concluded that Jerritt Canyon constitutes a business and, therefore, the acquisition is accounted for in accordance with IFRS 3 - Business Combinations.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

4. ACQUISITION OF JERRITT CANYON CANADA LTD.

Description of the Transaction (continued)

For the purpose of these consolidated condensed interim financial statements, the purchase consideration has been allocated on a preliminary basis based on management’s best estimates at the time these interim consolidated financial statements were prepared. Any future changes to the purchase price allocation may result in adjustments to mining interests.

The Company is completing a full and detailed valuation of the fair value of the net assets of Jerritt Canyon acquired with the assistance of an independent third party. Therefore, it is likely that the purchase price and fair values of assets acquired, and liabilities assumed will vary from those shown below and the differences may be material. The allocation of the purchase price is based upon management’s preliminary estimates and certain assumptions with respect to the fair value increment associated with the assets to be acquired and the liabilities assumed. The actual fair values of the assets and liabilities will be determined as of the date of acquisition and may differ materially from the amounts disclosed below in the assumed preliminary purchase price allocation as further analysis, including the assumption of liabilities including finalization of decommissioning liabilities, identification of contingent liabilities, finalization of the special trust agreement and reclamation bond requirement review with Nevada Division of Environmental Protection ("NDEP"), as well as finalization of working capital adjustments. Consequently, the actual allocation of the purchase price may result in different adjustments than those in these unaudited interim consolidated financial statements.

Total transaction costs of $2.0 million related to the acquisition were expensed during the year.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 9

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

4. ACQUISITION OF JERRITT CANYON CANADA LTD. (continued)

Consideration and Purchase Price Allocation

Total consideration for the acquisition was valued at $476.5 million on the acquisition date. The preliminary purchase price

allocation, which is subject to final adjustments, is estimated as follows:

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
Estimated Triggered Tax Adjustment	12,913
Estimated Working Capital Adjustment	(2,758)
Total consideration	$476,455
Allocation of Purchase Price
Cash and cash equivalents	$1,025
Inventories	19,304
Trade and other receivables(3)	135
Other financial assets	3,581
Prepaid expenses	1,662
Restricted cash(4)	96,985
Mining interest	409,930
Property, plant and equipment	224,034
Deposit on non-current assets	128
Trade and other payables	(27,159)
Lease liabilities	(2,194)
Income taxes payable	(47,185)
Contingent environmental provision(5)	(17,900)
Decommissioning liabilities	(87,705)
Deferred tax liabilities	(98,186)
Net assets acquired	$476,455

(1) Fair values of Consideration Shares and Private Placement Shares were estimated at $15.59 per shares 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.

(3) Trade and other receivables are expected to be fully recoverable.

(4)     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.

(5)     Contingent environmental provision relates to funds required to establish a trust agreement with the Nevada Division of Environmental Protection (“NDEP”) to cover post-closure water treatment cost at Jerritt Canyon. Amounts are subject to management review of reclamation plan and cost estimates as well as alternative treatment options after the acquisition. Actual amount may differ significantly from the amount disclosed above.

Financial and operating results of Jerritt Canyon are included in the Company’s consolidated financial statements effective April 30, 2021. During the nine months ended September 30, 2021, the acquisition of Jerritt Canyon contributed $80.5 million of revenues and $18.1 million of net loss to the Company’s financial results since April 30, 2021.

Had the business combination been effected at January 1, 2021, pro forma revenues and net loss of the Company for the nine

months ended September 30, 2021 would have been $431.3 million and $18.8 million, respectively.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

5. 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 nine months ended September 30, 2021, the Company's significant reporting segments includes its three operating mines in Mexico, the recently acquired Jerritt Canyon Gold Mine in Nevada, United States, 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 15), debt facilities (Note 20), 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 September 30, 2021 and 2020		Revenue	Cost of sales	Depletion, depreciation, and amortization	Mine operating earnings (loss)	Capital expenditures
Mexico
San Dimas	2021	$46,312	$24,104	$8,280	$13,928	$14,153
	2020	72,029	30,034	9,990	32,005	11,613
Santa Elena	2021	19,988	15,603	3,963	422	15,658
	2020	28,212	18,120	3,954	6,138	8,524
La Encantada	2021	16,097	8,653	1,547	5,897	2,786
	2020	27,396	12,842	3,213	11,341	3,050
Non-producing Properties	2021	—	—	80	(80)	574
	2020	—	—	151	(151)	932
United States
Jerritt Canyon	2021	45,654	44,881	14,774	(14,001)	22,392
	2020	—	—	—	—	—
Others(1)	2021	1,376	1,164	478	(266)	4,133
	2020	1,131	548	265	318	11,155
Intercompany elimination(2)	2021	(4,781)	(2,399)	—	(2,382)	—
	2020	(2,887)	(1,269)	—	(1,618)	—
Consolidated	2021	$124,646	$92,006	$29,122	$3,518	$59,696
	2020	$125,881	$60,275	$17,573	$48,033	$35,275

(1) The "Others" segment includes revenues of $1.4 million from coins and bullion sales of 46,572 silver ounces at an average price of $29.49 per ounce.

(2) Effective January 1, 2021, the Company is presenting its segment revenue, cost of sales and mine operating earnings (loss) on a gross basis, with a new line item to reflect intercompany eliminations. The segmented information for the comparative periods have been adjusted to reflect this change for consistency.

During the nine months ended September 30, 2021, the Company had three (September 30, 2020 - three) customers that accounted for 100% (2020 - 99%) of its sales revenue, with one major metal broker accounting for 92% of total revenue (2020 - 92%).

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 11

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Condensed Interim Consolidated Financial Statements - Unaudited	(Tabular amounts are expressed in thousands of US dollars)

5. SEGMENTED INFORMATION (continued)

Nine Months Ended September 30, 2021 and 2020		Revenue	Cost of sales	Depletion, depreciation, and amortization	Mine operating earnings (loss)	Capital expenditures
Mexico
San Dimas	2021	$178,793	$89,757	$29,620	$59,416	$44,137
	2020	146,036	81,075	23,921	41,040	29,653
Santa Elena	2021	70,431	52,509	11,472	6,450	47,208
	2020	55,938	38,279	7,834	9,825	19,972
La Encantada	2021	58,918	30,473	5,442	23,003	8,340
	2020	46,554	26,308	5,975	14,271	7,135
Non-producing Properties	2021	—	—	315	(315)	1,742
	2020	183	1,361	489	(1,667)	3,027
United States
Jerritt Canyon	2021	80,510	76,594	25,073	(21,157)	30,506
	2020	—	—	—	—	—
Others(1)	2021	8,690	4,471	1,413	2,806	31,090
	2020	2,037	1,249	787	1	21,585
Intercompany elimination	2021	(18,101)	(8,955)	—	(9,146)	—
	2020	(3,947)	(1,863)	—	(2,084)	—
Consolidated	2021	$379,241	$244,849	$73,335	$61,057	$163,023
	2020	$246,801	$146,409	$39,006	$61,386	$81,372

(1) The "Others" segment includes revenues of $8.7 million from coins and bullion sales of 271,215 silver ounces at an average price of $32.04 per ounce.

At September 30, 2021 and December 31, 2020		Mining Interests		Property, plant and equipment	Total mining assets	Total assets	Total liabilities
		Producing	Exploration
Mexico
San Dimas	2021	$211,780	$27,373	$106,089	$345,242	$480,131	$113,132
	2020	204,592	17,179	112,105	333,876	439,145	105,462
Santa Elena	2021	71,443	47,253	57,006	175,702	227,147	57,143
	2020	52,892	33,951	49,245	136,088	166,525	33,467
La Encantada	2021	25,946	3,981	19,296	49,223	106,649	30,834
	2020	25,865	2,955	16,555	45,375	99,185	29,354
Non-producing Properties	2021	108,837	38,692	27,562	175,092	218,149	33,139
	2020	108,837	37,004	29,888	175,730	219,109	40,274
United States
Jerritt Canyon	2021	276,356	141,409	221,720	639,485	730,558	240,215
	2020	—	—	—	—	—	—
Others	2021	—	34,798	55,176	89,974	288,855	184,620
	2020	—	26,455	50,427	76,882	313,553	178,724
Consolidated	2021	$694,362	$293,507	$486,849	$1,474,718	$2,051,488	$659,083
	2020	$392,185	$117,545	$258,220	$767,950	$1,237,517	$387,281

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

6. 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 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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Grossrevenuefrompayablemetals:
Silver	$43,154	34	%	$85,426	67	%	$201,917	53	%	$157,772	63	%
Gold	81,966	66	%	41,406	33	%	179,253	47	%	90,934	37	%
Lead	—	0	%	—	0	%	—	0	%	76	0	%
Gross revenue	125,120	100	%	126,832	100	%	381,170	100	%	248,782	100	%
Less: smelting and refining costs	(474)			(951)			(1,929)			(1,981)
Revenues	$124,646			$125,881			$379,241			$246,801

As at September 30, 2021, the Company had $4.4 million of unearned revenue (December 31, 2020 - $2.7 million) that has not satisfied performance obligations.

(a)Gold Stream Agreement with Sandstorm Gold Ltd.

The Santa Elena mine has a purchase 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. 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 nine months ended September 30, 2021, the Company delivered 1,472 and 4,342 ounces (2020 - 1,730 and 4,457 ounces), respectively, of gold to Sandstorm at an average price of $468 and $467 per ounce (2020 - $463 and $461 per ounce), respectively.

(b) Gold Stream Agreement with Wheaton Precious Metals Corporation

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 September 30, 2021 was 70:1.

During the three and nine months ended September 30, 2021, the Company delivered 11,346 and 32,833 ounces (2020 - 9,687 and 27,075 ounces) of gold, respectively, to WPMI at $618 and $616 (2020 - $612 and $609) per ounce, respectively.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

7. 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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Consumables and materials	$25,476	$10,559	$53,516	$26,148
Labour costs	52,839	28,863	136,890	71,202
Energy	10,250	6,473	31,506	17,654
Other costs	11,924	1,047	20,575	7,598
Production costs	$100,489	$46,942	$242,487	$122,602
Transportation and other selling costs	569	662	1,958	1,504
Workers participation costs	4,017	2,276	10,380	11,000
Environmental duties and royalties	1,492	696	3,133	1,344
Inventory changes	(14,734)	9,699	(13,569)	(153)
Other	173	—	460	—
Cost of Sales	$92,006	$60,275	$244,849	$136,297
Cost of Sales - Standby Costs	$—	$—	$—	$10,112

8. 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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Corporate administration	$2,124	$1,067	$5,555	$3,590
Salaries and benefits	2,830	2,771	9,090	8,399
Audit, legal and professional fees	482	881	3,150	3,251
Filing and listing fees	163	103	407	396
Directors fees and expenses	208	223	600	614
Depreciation	406	475	1,273	1,400
	$6,213	$5,520	$20,075	$17,650

9. MINE HOLDING COSTS

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Del Toro	$831	$1,211	$2,594	$6,081
La Parrilla	889	1,056	2,639	4,422
San Martin	698	1,097	2,038	1,989
La Guitarra	926	820	2,300	2,074
	$3,344	$4,184	$9,571	$14,566

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

10. INVESTMENT AND OTHER (LOSS) INCOME

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
(Loss) gain from investment in marketable securities (Note 14(a))	($5,169)	$2,497	($2,891)	$4,418
Loss on write-down of assets held-for-sale(1)(2)	—	—	(2,081)	—
Gain from investment in silver futures derivatives	—	—	593	2,079
Interest income and other	306	244	695	963
	($4,863)	$2,741	($3,684)	$7,460

(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 nine months ended September 30, 2021, the Company completed the sale and 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.

(2) In May 2021, the Company entered into an agreement with Capstone Mining Corp. to sell certain mill equipment for gross proceeds of $6.4 million in cash, of which $5.7 million has been received as at September 30, 2021. No gain or loss was recognized as part of this transaction as the equipment were sold at cost.

11. 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 September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Debt facilities(1) (Note 20)	$2,599	$2,674	$7,810	$7,936
Lease liabilities (Note 21)	547	348	1,418	1,115
Accretion of decommissioning liabilities	709	571	2,276	1,740
Silver sales and other	172	57	423	265
	$4,027	$3,650	$11,927	$11,056

(1) During the three and nine month periods ended September 30, 2021, finance costs for debt facilities include non-cash accretion expense of $1.7 million (2020 - $1.7 million) and $5.2 million (2020 - $5.1 million), respectively.

12. 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 period. 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 September 30, 2021 and 2020 are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Net (loss) earnings for the period	($18,406)	$30,946	($952)	($11,458)
Add: finance costs on convertible debt, net of tax	—	1,691	—	—
Diluted net (loss) earnings for the period	($18,406)	$32,637	($952)	($11,458)
Weighted average number of shares on issue - basic	256,363,759	214,919,070	240,687,196	211,333,281
Impact of effect on dilutive securities:
Stock options	—	2,243,895	—	—
Restricted, performance and deferred share units	—	304,007	—	—
Convertible debt shares	—	16,327,598	—	—
Weighted average number of shares on issue - diluted(1)	256,363,759	233,794,570	240,687,196	211,333,281
Earnings per share - basic	($0.07)	$0.14	$0.00	($0.05)
Earnings (loss) per share - basic and diluted	($0.07)	$0.14	$0.00	($0.05)

(1)For the nine months ended September 30, 2021, diluted weighted average number of shares excluded 6,525,871 (2020 - 6,980,689) options, 5,000,000 (2020 - nil) warrants, nil restricted and performance share units (2020 - 304,007) and 16,327,598 (2020 - 16,327,598) common shares issuable under the convertible debentures (Note 20(a)) that were anti-dilutive.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 15

NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts are expressed in thousands of US dollars)

13. 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.

	September 30, 2021	December 31, 2020
Finished goods - doré	$19,644	$2,812
Work-in-process	7,096	2,780
Stockpile	6,245	1,336
Silver coins and bullion	8,526	956
Materials and supplies	30,249	24,628
	$71,760	$32,512

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.

14. OTHER FINANCIAL ASSETS

As at September 30, 2021, other financial assets consists of the Company’s investment in marketable securities comprised of the following:

	September 30, 2021	December 31, 2020
FVTPL marketable securities (a)	$9,977	$13,876
FVTOCI marketable securities (b)	13,505	22,443
Total other financial assets	$23,482	$36,319

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

Loss in marketable securities designated as FVTPL for the three and nine months ended September 30, 2021 were $5.2 million (2020 - gain of $2.5 million) and $2.9 million (2020 - gain of $4.4 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 nine months ended September 30, 2021 were a loss of $7.7 million (2020 - gain of $1.4 million) and $14.1 million (2020 - gain of $7.4 million), net of tax, and were recorded through other comprehensive income and will not be transferred into earnings or loss upon disposition or impairment.

15. MINING INTERESTS

Mining interests primarily consist of acquisition, development and exploration 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:

	September 30, 2021	December 31, 2020
Depletable properties	$694,362	$392,185
Non-depletable properties (exploration and evaluation costs)	293,507	117,545
	$987,869	$509,730

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

15. MINING INTERESTS (continued)

Depletable properties are allocated as follows:

Depletable properties	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Non-producing Properties(1)	Total
Cost
At December 31, 2019	$220,658	$61,654	$111,590	$—	$494,132	$888,034
Additions	21,263	6,218	4,201	—	—	31,682
Change in decommissioning liabilities	4,527	1,191	2,049	—	3,059	10,826
Transfer from exploration properties	3,645	4,229	472	—	—	8,346
At December 31, 2020	$250,093	$73,292	$118,312	$—	$497,191	$938,888
Additions	27,127	12,282	2,023	11,192	—	52,624
Acquisition of Jerritt Canyon (Note 4)	—	—	—	275,870	—	275,870
Transfer from exploration properties	—	11,402	1,293	—	—	12,695
At September 30, 2021	$277,220	$96,976	$121,627	$287,062	$497,191	$1,280,077
Accumulated depletion, amortization and impairment
At December 31, 2019	($27,225)	($16,608)	($88,499)	$—	($388,354)	($520,686)
Depletion and amortization	(18,277)	(3,792)	(3,948)	—	—	(26,017)
At December 31, 2020	($45,502)	($20,400)	($92,447)	$—	($388,354)	($546,703)
Depletion and amortization	(19,939)	(5,133)	(3,234)	(10,706)	—	(39,012)
At September 30, 2021	($65,441)	($25,533)	($95,681)	($10,706)	($388,354)	($585,715)
Carrying values
At December 31, 2020	$204,592	$52,892	$25,865	$—	$108,837	$392,185
At September 30, 2021	$211,780	$71,443	$25,946	$276,356	$108,837	$694,362

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

Non-depletable properties costs are allocated as follows:

Non-depletableproperties	San Dimas(a)	SantaElena(b)	La Encantada	Jerritt Canyon(c)	Non-producing Properties(1)	Exploration Projects(2)	Springpole Stream(d)	Total
AtDecember31,2019	$8,699	$18,592	$1,104	$—	$32,938	$34,710	$—	$96,043
Exploration and evaluation expenditures	12,125	19,588	2,323	—	4,066	1,142	4,356	43,601
Change in decommissioning liabilities (Note 20)	—	—	—	—	—	59	—	59
Sale of exploration project	—	—	—	—	—	(13,812)	—	(13,812)
Transfer to producing properties	(3,645)	(4,229)	(472)	—	—	—	—	(8,346)
AtDecember31,2020	$17,179	$33,951	$2,955	$—	$37,004	$22,099	$4,356	$117,545
Exploration and evaluation expenditures	10,194	24,704	2,319	7,349	1,688	843	7,500	54,597
Acquisition of Jerritt Canyon (Note 4)	—	—	—	134,060	—	—	—	134,060
Transfer to producing properties	—	(11,402)	(1,293)	—	—	—	—	(12,695)
At September 30, 2021	$27,373	$47,253	$3,981	$141,409	$38,692	$22,942	$11,856	$293,507

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

(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.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

15. MINING INTERESTS (continued)

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

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 September 30, 2021 was 70:1.

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

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 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.

(c) Jerritt Canyon Gold Mine, Nevada, United States

The Jerritt Canyon Mine is subject to a 0.5% Net Smelter Returns ("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 September 30, 2021, total NSR royalty accrual outstanding was $4.5 million, of which $4.0 million was payable to Sprott Mining Corp. which will be settled concurrent with the Triggered Tax Adjustment and Working Capital Adjustment.

(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.

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 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.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

15. MINING INTERESTS (continued)

(d) Springpole Silver Stream, Ontario, Canada (continued)

As at September 30, 2021, 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.

16. 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, 2019	$198,412	$456,655	$27,645	$24,438	$707,150
Additions	—	2,096	47,266	391	49,753
Transfers and disposals	917	9,873	(19,242)	3,822	(4,630)
At December 31, 2020	$199,329	$468,624	$55,669	$28,651	$752,273
Additions	34	2,591	52,948	229	55,802
Acquisition of Jerritt Canyon (Note 4)	32,992	185,469	5,516	57	224,034
Transfers and disposals	4,763	8,669	(29,391)	3,132	(12,827)
At September 30, 2021	$237,118	$665,353	$84,742	$32,069	$1,019,282
Accumulated depreciation, amortization and impairment
At December 31, 2019	($129,040)	($326,300)	$—	($15,171)	($470,511)
Depreciation and amortization	(4,188)	(19,833)	—	(2,555)	(26,576)
Transfers and disposals	72	2,754	—	208	3,034
At December 31, 2020	($133,156)	($343,379)	$—	($17,518)	($494,053)
Depreciation and amortization	(9,204)	(25,105)	—	(2,139)	(36,448)
Transfers and disposals	—	125	—	24	149
Loss on disposal of equipment	—	—	—	(2,081)	(2,081)
At September 30, 2021	($142,360)	($368,359)	$—	($21,714)	($532,433)
Carrying values
At December 31, 2020	$66,173	$125,245	$55,669	$11,133	$258,220
At September 30, 2021	$94,758	$296,994	$84,742	$10,355	$486,849

(1) Included in land and buildings is $11.2 million (2020 - $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, 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. 2021 Third 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)

16. 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	Jerritt Canyon	Santa Elena	La Encantada	Non-producing Properties(1)	Other	Total
Cost
At December 31, 2019	$136,303	$—	$90,762	$137,302	$297,240	$45,543	$707,150
Additions	10,384	—	7,933	4,209	272	26,955	49,753
Transfers and disposals	41	—	(1,364)	1,999	(3,751)	(1,555)	(4,630)
At December 31, 2020	$146,728	$—	$97,331	$143,510	$293,761	$70,943	$752,273
Additions(2)	6,816	11,965	10,222	3,998	54	22,747	55,802
Acquisition of Jerritt Canyon (Note 4)	—	224,034	—	—	—	—	224,034
Transfers and disposals	1,664	—	5,591	1,504	(7,166)	(14,420)	(12,827)
At September 30, 2021	$155,208	$235,999	$113,144	$149,012	$286,649	$79,270	$1,019,282
Accumulated depreciation, amortization and impairment
At December 31, 2019	($19,747)	$—	($42,975)	($122,566)	($266,190)	($19,033)	($470,511)
Depreciation and amortization	(15,032)	—	(6,451)	(2,646)	(592)	(1,855)	(26,576)
Transfers and disposals	156	—	1,340	(1,743)	2,909	372	3,034
At December 31, 2020	($34,623)	$—	($48,086)	($126,955)	($263,873)	($20,516)	($494,053)
Depreciation and amortization	(13,405)	(14,279)	(5,164)	(1,742)	(203)	(1,655)	(36,448)
Transfers and disposals	(1,091)	—	(2,888)	(1,019)	4,989	158	149
Write-down on assets held-for-sale	—	—	—	—	—	(2,081)	(2,081)
At September 30, 2021	($49,119)	($14,279)	($56,138)	($129,716)	($259,087)	($24,094)	($532,433)
Carrying values
At December 31, 2020	$112,105	$—	$49,245	$16,555	$29,888	$50,427	$258,220
At September 30, 2021	$106,089	$221,720	$57,006	$19,296	$27,562	$55,176	$486,849

(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.

17. 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 asset is 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. 2021 Third 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)

17. 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, 2019	$4,207	$7,812	$15	$12,034
Additions	1,939	554	—	2,494
Remeasurements	2,789	(10)	—	2,779
Depreciation and amortization	(848)	(2,106)	(7)	(2,961)
Disposals	—	(16)	—	(16)
At December 31, 2020	$8,087	$6,234	$8	$14,330
Additions	609	17,516	—	18,126
Remeasurements	360	637	—	997
Depreciation and amortization	(976)	(3,004)	(5)	(3,985)
Disposals	(117)	—	—	(116)
At September 30, 2021	$7,963	$21,384	$4	$29,351

18. RESTRICTED CASH

Restricted cash is comprised of the following:

(a)Current

	September 30, 2021	December 31, 2020
Escrowed funds for the acquisition of Jerritt Canyon(1)	$12,505	$—
SAT Primero tax dispute(2)	31,161	—
	$43,666	$—

1.As part of the acquisition of Jerritt Canyon (Note 4), the Company was required to hold certain funds in escrow to settle the payment for trigger tax provisions along with any adjustments to working capital. As at September 30, 2021, $12.5 million remains in escrow which the Company expects to be settled within the next twelve months.

2.In connection with the Primero Empresa Minera, S.A. de C.V. ("PEM") tax ruling (Note 25(b)), the tax authority has frozen a PEM bank account with funds of $31.2 million (633 million MXN) as a guarantee against certain disputed tax assessments. 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 Servicio de Admistracion Tributaria's ("SAT") position and has challenged it through the relevant legal channels.

(b)Non-Current

	September 30, 2021	December 31, 2020
Nevada Division of Environmental Protection bond(1)	$39,727	$—
Chartis Commutation Account(2)	27,270	—
	$66,997	$—

1.Jerritt Canyon is required to provide a surety bond to the Nevada Division of Environmental Protection ("NDEP") and the US Forestry Service to fund the ongoing reclamation and mine closure obligations. To meet this surety requirement, the Company has on deposit $39.7 million in money market accounts. The money market account principal balance plus interest earned on the principal is used to fund ongoing reclamation and mine closure obligations.

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.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

19. 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:

	September 30, 2021	December 31, 2020
Trade payables	$34,053	$31,262
Trade related accruals	37,103	18,635
Payroll and related benefits	23,421	21,427
Estimated Triggered Tax Adjustment and Working Capital Adjustment payable, net (Note 4)	10,155	—
NSR royalty liabilities (Note 15(c))	4,479	—
Environmental duty	2,015	2,156
Other accrued liabilities	1,505	2,522
	$112,731	$76,002

20. DEBT FACILITIES

The movement in debt facilities during the nine months ended September 30, 2021 and year ended December 31, 2020, respectively, are comprised of the following:

	Convertible Debentures (a)	Revolving Credit Facility (b)	Total
Balance at December 31, 2019	$136,607	$19,211	$155,818
Finance costs
Interest expense	2,984	763	3,747
Accretion	6,168	678	6,846
Proceeds from drawdown of Revolving Credit Facility	—	10,000	10,000
Repayments of principal	—	(19,969)	(19,969)
Payments of finance costs	(2,934)	(800)	(3,734)
Balance at December 31, 2020	$142,825	$9,883	$152,708
Net proceeds from debt financing	$—	$30,000	$30,000
Finance costs
Interest expense	2,225	422	2,647
Accretion	4,875	288	5,163
Transaction costs	—	(320)	(320)
Payments of finance costs	(2,934)	(491)	(3,425)
Balance at September 30, 2021	$146,991	$39,782	$186,773
Statements of Financial Position Presentation
Current portion of debt facilities	$1,092	$9,883	$10,975
Non-current portion of debt facilities	141,733	—	141,733
Balance at December 31, 2020	$142,825	$9,883	$152,708
Current portion of debt facilities	$383	$—	$383
Non-current portion of debt facilities	146,608	39,782	186,390
Balance at September 30, 2021	$146,991	$39,782	$186,773

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

20. DEBT FACILITIES (continued)

(a)Convertible Debentures

During the first quarter of 2018, the Company issued $156.5 million of unsecured senior convertible debentures (the “Notes”). The Company received net proceeds of $151.1 million after transaction costs of $5.4 million. The Notes mature on March 1, 2023 and bear an interest rate of 1.875% per annum, payable semi-annually in arrears in March and September of each year.

The Notes are convertible into common shares of the Company at any time prior to maturity at a conversion rate of 104.3297 common shares per $1,000 principal amount of Notes converted, representing an initial conversion price of $9.59 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 Company may not redeem the Notes before March 6, 2021, except in the event of certain changes in Canadian tax law. At any time on or after March 6, 2021 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 or $12.47 per common share. 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 $151.1 million from the Notes were allocated into its debt and equity components. The fair value of the debt portion was estimated at $124.8 million using a discounted cash flow model method with an expected life of five years and a discount rate of 6.14%. This amount is recorded as a financial liability on an amortized cost basis using the effective interest method using an effective interest rate of 6.47% 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 $26.3 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 $7.1 million related to taxable temporary difference arising from the equity portion of the convertible debenture was recognized in equity reserves.

Transaction costs of $5.4 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.

(b)     Revolving Credit Facility

On April 1, 2021, the Company renewed its senior secured revolving credit facility ("Revolving Credit Facility") with the Bank of Nova Scotia and Bank of Montreal by extending the maturity date from May 10, 2021 to November 30, 2022 and reducing the credit limit from $75.0 million to $50.0 million. Interest on the drawn balance will accrue at LIBOR plus an applicable range of 2.25% to 3.5% while the undrawn portion is subject to a standby fee with an applicable range of 0.563% to 0.875%, dependent on certain financial parameters of First Majestic. During the third quarter, the Company drew down $30 million from the revolving credit facility which was paid back subsequent to quarter end. As at September 30, 2021, the applicable rates were 2.3% and 0.5625%, respectively.

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 accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

20. DEBT FACILITIES (continued)

(b)     Revolving Credit Facility (continued)

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 3.00 to 1.00; (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; and (c) tangible net worth of not less than $563.5 million plus 50% of its positive earnings subsequent to June 30, 2018. 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 $30.0 million. As at September 30, 2021 and December 31, 2020, the Company was in compliance with these covenants.

21. 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. 2021 Third 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)

21. LEASE LIABILITIES (continued)

The movement in lease liabilities during the nine months ended September 30, 2021 and year ended December 31, 2020 are comprised of the following:

	Finance Leases	Operating Leases(1)	Equipment Financing(2)	Total
Balance at December 31, 2019	$50	$18,951	$2,935	$21,936
Additions	—	2,494	—	2,494
Remeasurements	—	2,779	—	2,779
Finance costs	—	1,396	83	1,479
Repayments of principal	(50)	(5,353)	(2,303)	(7,706)
Payments of finance costs	—	—	(126)	(126)
Foreign exchange gain	—	(281)	—	(281)
Balance at December 31, 2020	$—	$19,986	$589	$20,575
Acquisition of Jerritt Canyon (Note 4)	2,194	—	—	2,194
Additions	—	18,126	—	18,126
Remeasurements	—	997	—	997
Disposals	—	(126)	—	(126)
Finance costs	21	1,389	8	1,418
Repayments of principal	(609)	(5,174)	(477)	(6,260)
Payments of finance costs	(21)	—	(7)	(28)
Foreign exchange loss	—	(155)	—	(155)
Balance at September 30, 2021	$1,585	$35,043	$113	$36,741
Statements of Financial Position Presentation
Current portion of lease liabilities	$—	$4,820	$538	$5,358
Non-current portion of lease liabilities	—	15,166	51	15,217
Balance at December 31, 2020	$—	$19,986	$589	$20,575
Current portion of lease liabilities	$1,011	$9,691	$113	$10,815
Non-current portion of lease liabilities	574	25,352	—	25,926
Balance at September 30, 2021	$1,585	$35,043	$113	$36,741

(1) 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 4.2% to 12.4%.

(2) Equipment financing bears an interest rate of LIBOR plus 4.60% and 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 September 30, 2021 and year ended December 31, 2020, the Company was in compliance with these covenants. As at September 30, 2021, the net book value of property, plant and equipment includes $0.7 million (December 31, 2020 - $1.9 million) of equipment pledged as security for the equipment financing.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

22. 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.

	Nine Months Ended September 30, 2021		Nine Months Ended September 30, 2020
	Number of Shares	Net Proceeds	Number of Shares	Net Proceeds
ATM program(1)	4,225,000	$66,674	5,654,338	$67,896
Prospectus offering	—	—	5,000,000	58,280
	4,225,000	$66,674	10,654,338	$126,176

(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 three and nine months ended September 30, 2021, the Company sold 4,225,000 (2020 - 5,654,338) common shares of the Company under the ATM program at an average price of $15.78 (2020 - $12.31) for gross proceeds of $68.6 million (2020 - $69.6 million), or net proceeds of $66.7 million (2020 - $67.9 million) after costs. At September 30, 2021, the Company completed $68.6 million of the ATM program.

(b)Stock options

Under the terms of the Company’s 2020 Long-Term Incentive Plan ("LTIP"), the maximum number of shares reserved for issuance under the LTIP is 8% 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 following table summarizes information about stock options outstanding as at September 30, 2021:

	Options Outstanding			Options Exercisable
Exercise prices (CAD$)	Number of Options	Weighted Average Exercise Price (CAD $/Share)	Weighted Average Remaining Life (Years)	Number of Options	Weighted Average Exercise Price (CAD $/Share)	Weighted Average Remaining Life (Years)
5.01 - 10.00	2,260,159	8.62	7.11	1,806,409	8.57	6.91
10.01 - 15.00	2,276,743	12.61	5.25	1,169,871	11.42	1.90
15.01 - 20.00	1,232,446	16.14	8.61	297,598	15.93	7.83
20.01 - 250.00	756,523	21.86	8.88	64,273	25.85	0.42
	6,525,871	12.96	6.95	3,338,151	10.56	5.11

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

22. SHARE CAPITAL (continued)

(b)Stock options (continued)

The movements in stock options issued during the nine months ended September 30, 2021 and year ended December 31, 2020 are summarized as follows:

	Nine Months Ended		Year Ended
	September 30, 2021		December 31, 2020
	Number of Options	Weighted Average Exercise Price (CAD $/Share)	Number of Options	Weighted Average Exercise Price (CAD $/Share)
Balance, beginning of the year	7,074,092	12.07	7,583,439	10.70
Granted	1,300,000	19.17	2,621,924	13.46
Exercised	(1,562,564)	10.80	(2,473,926)	7.50
Cancelled or expired	(285,657)	30.91	(657,345)	18.96
Balance, end of the period	6,525,871	12.96	7,074,092	12.07

During the nine months ended September 30, 2021, the aggregate fair value of stock options granted was $9.3 million (December 31, 2020 - $12.1 million), or a weighted average fair value of $7.14 per stock option granted (2020 - $4.63).

During the nine months ended September 30, 2021, total share-based payments expense related to stock options was $6.7 million (December 31, 2020 - $7.0 million).

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

		Nine Months Ended	Year Ended
Assumption	Basedon	September 30, 2021	December 31, 2020
Risk-free interest rate (%)	Yield curves on Canadian government zero- coupon bonds with a remaining term equal to the stock options’ expected life	1.00	1.03
Expected life (years)	Average of the expected vesting term and expiry term of the option	5.94	5.83
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	—	—

The weighted average closing share price at date of exercise for the nine months ended September 30, 2021 was CAD$12.96 (December 31, 2020 - CAD$15.61).

(c) Restricted Share Units

The Company adopted the 2019 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 accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

22. SHARE CAPITAL (continued)

(c) Restricted Share Units (continued)

The following table summarizes the changes in RSU's for the nine months ended September 30, 2021 and the year ended December 31, 2020:

	Nine Months Ended September 30, 2021		Year Ended December 31, 2020
	Number of shares	Weighted Average Fair Value (CAD$)	Number of shares	Weighted Average Fair Value (CAD$)
Outstanding, beginning of the year	184,483	15.66	128,944	10.36
Granted	312,991	17.19	211,192	15.72
Settled	(39,949)	15.93	(127,000)	10.32
Forfeited	(27,421)	16.56	(28,653)	15.93
Outstanding, end of the period	430,104	16.69	184,483	15.66

During the nine months ended September 30, 2021, total share-based payments expense related to RSUs was $1.5 million (December 31, 2020 - $0.8 million).

(d) Performance Share Units

The Company adopted the 2019 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 nine months ended September 30, 2021 and the year ended December 31, 2020:    

	Nine Months Ended September 30, 2021		Year Ended December 31, 2020
	Number of shares	Weighted Average Fair Value (CAD$)	Number of shares	Weighted Average Fair Value (CAD$)
Outstanding, beginning of the year	109,035	15.61	—	—
Granted	184,050	17.15	122,575	15.65
Forfeited	(17,569)	16.56	(13,540)	(15.93)
Outstanding, end of the period	275,516	16.58	109,035	19.57

During the nine months ended September 30, 2021, total share-based payments expense related to PSUs was $0.9 million (year ended December 31, 2020 - $0.5 million).

(e)     Deferred Share Units

The Company adopted the 2019 LTIP to allow the Company to grant to its directors, employees and consultants non-transferrable Deferred Share Units ("DSU's"). Unless otherwise stated, the 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 in equity.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

22. SHARE CAPITAL (continued)

(e)     Deferred Share Units (continued)

The following table summarizes the changes in DSU's granted to directors for the nine months ended September 30, 2021:    

	Nine Months Ended September 30, 2021
	Number of shares	Weighted Average Fair Value (CAD$)
Outstanding, beginning of the year	—	—
Granted	31,040	18.08
Settled	(5,855)	17.08
Outstanding, end of the period	25,185	18.31

During the nine months ended September 30, 2021, total share-based payments expense related to Deferred Share Units was $0.4 million (year ended December 31, 2020 - $nil).

(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. During the year ended December 31, 2020, the Company repurchased and cancelled 275,000 common shares for a total consideration of $1.7 million through a normal course issuer bid in the open market as approved by the Toronto Stock Exchange. No shares were repurchased during the nine months ended September 30, 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)     Dividend

The Company declared the following dividends during the nine months ended September 30, 2021:

Declaration Date	Record Date	Dividend per Common Share
May 6, 2021	May 17, 2021	$0.0045
August 16, 2021	August 26, 2021	$0.0060
November 4, 2021(1)	November 17, 2021	$0.0049

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

23. 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 accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

23. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(a)     Fair value and categories of financial instruments (continued)

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 nine months ended September 30, 2021 and year ended December 31, 2020.

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.
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:

	September 30, 2021						December 31, 2020
			Fair value measurement						Fair value measurement
	Carrying value		Level 1		Level 2		Carrying value		Level 1		Level 2
Financial assets
Marketable securities (Note 14)	$	23,482	$	20,187	$	3,295	$	36,319	$	30,996	$	5,323

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.

(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 accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

23. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(b) Capital risk management (continued)

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:

	September 30, 2021	December 31, 2020
Equity	$1,392,405	$850,236
Debt facilities	186,773	152,708
Lease liabilities	36,741	20,575
Less: cash and cash equivalents	(192,810)	(238,578)
	$1,423,109	$784,941

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 20) and lease liabilities. As at September 30, 2021 and December 31, 2020, the Company was in compliance with these covenants.

(c) Financial risk management

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 September 30, 2021, value added taxes (“VAT”) receivable was $58.0 million (December 31, 2020 - $56.9 million), of which $34.8 million (December 31, 2020 - $37.9 million) relates to PEM. SAT has 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.

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 accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

23. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(c) Financial risk management (continued)

Liquidity Risk (continued)

The following table summarizes the maturities of the Company’s financial liabilities as at September 30, 2021 based on the undiscounted contractual cash flows:

	Carrying Amount	Contractual CashFlows	Less than 1 year	2 to 3 years	4 to 5 years	After 5 years
Trade and other payables	$112,731	$112,731	$112,731	$—	$—	$—
Debt facilities	186,773	202,058	3,926	198,132	—	—
Lease liabilities	36,741	42,126	10,854	18,222	11,586	1,464
Other liabilities	6,282	6,282	—	—	—	6,282
	$342,527	$363,197	$127,511	$216,354	$11,586	$7,746

At September 30, 2021, the Company had working capital of $262.5 million (December 31, 2020 – $254.4 million). Total available liquidity at September 30, 2021 was $272.5 million, including $10.0 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:

	September 30, 2021
	Cash and cash equivalents	Restricted cash	Value added taxes receivable	Other financial assets	Trade and other payables	Foreign currency derivative	Net assets (liabilities) exposure	Effect of +/- 10% change in currency
Canadian dollar	$49,482	$12,505	$—	$6,906	($2,853)	$—	$66,040	$6,604
Mexican peso	33,431	31,161	54,535	—	(41,577)	12,000	89,550	8,955
	$82,913	$43,666	$54,535	$6,906	($44,430)	$12,000	$155,590	$15,559

The Company utilizes certain derivatives to manage its foreign exchange exposures to the Mexican Peso. During the three and nine months ended September 30, 2021, the Company had an unrealized loss of $0.05 million (2020 - unrealized gain of $7.5 million and unrealized loss of $4.9 million) on fair value adjustments to its foreign currency derivatives. As at September 30, 2021, the Company held $12.0 million in foreign currency derivatives (2020 - $23.6 million).

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.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

23. FINANCIAL INSTRUMENTS AND RELATED RISK MANAGEMENT (continued)

(c) Financial risk management (continued)

Commodity Price Risk (continued)

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

		September 30, 2021
	Effect of +/- 10% change in metal prices
	Silver	Gold	Total
Metals in doré inventory	$3,085	$281	$3,366
	$3,085	$281	$3,366

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 September 30, 2021, 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 September 30, 2021, a change of 25 basis points increase or decrease of market interest rate does not have a significant impact on net earnings or loss.

24. SUPPLEMENTAL CASH FLOW INFORMATION

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Netchangeinnon-cashworkingcapitalitems:
Decrease (increase) in trade and other receivables	$3,449	($3,628)	($1,134)	($839)
Decrease (increase) in value added taxes receivable	19,659	(7,534)	(437)	(9,548)
(Increase) decrease in inventories	(15,203)	9,627	(15,618)	(1,452)
Decrease (increase) in prepaid expenses and other	713	782	(1,100)	(1,434)
Decrease (increase) in income taxes payable	9,208	332	1,174	(507)
(Decrease) Increase in trade and other payables	(5,875)	3,986	(5,712)	(4,037)
(Increase) in restricted cash (Note 18(a))	(31,161)	—	(31,161)	—
	($19,210)	$3,565	($53,988)	($17,817)
Non-cashinvestingandfinancingactivities:
Acquisition of Jerritt Canyon (Note 4)	$—	$—	$466,300	$—
Transfer of share-based payments reserve upon settlement of RSUs	$139	$76	$595	$992
Transfer of share-based payments reserve upon exercise of options	$193	$3,262	$5,536	$4,368
Acquisition of mining interests	$—	$—	($3,750)	$—

As at September 30, 2021, cash and cash equivalents include $5.7 million (December 31, 2020 - $6.4 million) that are held in-trust as bonds for tax audits in Mexico, that are expected to be resolved within the next twelve months.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

25. 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 had a Silver Purchase Agreement (“Old Stream Agreement”) that required its subsidiary PEM to sell 100% of the silver produced from the San Dimas mine to WPMI, up to 6 million ounces and 50% of silver produced thereafter, at the lower of: (i) the spot market price and (ii) $4.04 per ounce plus an annual increase of 1%.

In order to reflect commercial realities 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 an Advance Pricing Agreement (“APA”) from the SAT. The APA confirmed that the PEM Realized Price would be used as Primero’s basis for calculating taxes owed by PEM on the silver sold under the Old Stream Agreement. PEM believed that the intent of an APA was to have SAT provide tax certainty and as a result made significant investments in Mexico based on that certainty. On October 4, 2012, PEM received the APA Ruling from SAT which confirmed the appropriate price for sales of silver under the Old Stream Agreement was the PEM Realized Price. Under Mexican tax law, an APA ruling is generally applicable for a five year period and this ruling was made effective for 2010 to 2014.

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

In 2019, the SAT issued reassessments for the 2010 to 2012 tax years in the total amount of $242.2 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 $134.1 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 reassessments based on the market price of silver, 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. 2021 Third 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)

25. 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 have no legal basis and breach international obligations regarding double taxation treaties, and 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 with 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 the Note 18(a)2.

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 has yet to be resolved, and a complaint before Mexico’s Federal Taxpayer Defense Attorney's Office (known as “PRODECON”), which determined that PEM has all legal remedies at its disposal and it has already challenged every SAT ruling, thus the matter must be decided by Mexican Courts. The Company believes that these actions are neither fair nor equitable and are discriminatory against the Company as a foreign investor and amount to a denial of justice under international law, in addition to violating various provisions of the Federal Constitution of the United Mexican States and Mexican domestic law, and Mexican court precedents. As a result, 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 initiated 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 made by the Federal Court 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 reviewed the written reasons and are of the view 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 amparo 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 commence discussions regarding the procedural rules which govern the NAFTA Proceedings. These rules were finalized upon the issuance by the Tribunal of Procedural Order No. 1 on October 21, 2021.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third 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)

25. CONTINGENCIES AND OTHER MATTERS (continued)

Primero Tax Rulings (continued)

If the SAT were successful in retroactively nullifying the APA, the SAT may seek to audit and reassess PEM in respect of its sales of silver in connection with the Old Stream Agreement for 2010 through 2014. If the SAT were successful in retroactively nullifying the APA and issuing reassessments, it 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 market prices without any mitigating adjustments, the incremental income tax for the years 2010-2018 would be approximately $223.1 million (4,531 million MXN), before interest or penalties.

Based on the Company’s assessments with third party advisors, the Company believes PEM filed its tax returns compliant with applicable Mexican law and, therefore, 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 material effect on the Company’s business, financial position and results of operations.

The accompanying notes are an integral part of the condensed interim consolidated financial statements
First Majestic Silver Corp. 2021 Third Quarter Report	Page 36

EX-99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE QUARTER ENDED SEPTEMBER 30, 2021

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

TABLE OF CONTENTS

COMPANY OVERVIEW		3
2021 THIRD QUARTER HIGHLIGHTS		4
OVERVIEW OF OPERATING RESULTS
	Summary of Selected Quarterly Production Results	6
	Consolidated Operations	7
	San Dimas Silver/Gold Mine	8
	Santa Elena Silver/Gold Mine	10
	La Encantada Silver Mine	12
	Jerritt Canyon Gold Mine	13
	La Parrilla Silver Mine	15
	Del Toro Silver Mine	15
	San Martin Silver Mine	15
	La Guitarra Silver Mine	15
	Springpole Silver Stream	16
OVERVIEW OF FINANCIAL PERFORMANCE
	Third Quarter 2021 vs 2020	17
	Year to Date 2021 vs 2020	19
	Summary of Selected Quarterly Results	21
OTHER DISCLOSURES
	Liquidity, Capital Resources and Contractual Obligations	21
	Management of Risks and Uncertainties	23
	Other Financial Information	28
	Subsequent Events	29
	Accounting Policies, Judgments and Estimates	29
	Non-GAAP Measures	31
	Management's Report on Internal Control Over Financial Reporting	38
	Cautionary Statements	39

First Majestic Silver Corp. 2021 Third 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 nine months ended September 30, 2021 which are prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”, andaudited consolidated financial statements of the Company as at and for the year ended December 31, 2020, 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 November 3, 2021 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, 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.

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. 2021 Third Quarter Report Page 3

2021 THIRD QUARTER HIGHLIGHTS

Key Performance Metrics	2021-Q3	2021-Q2	Change Q3 vs Q2		2020-Q3	Change Q3 vs Q3		2021-YTD	2020-YTD	Change
Operational
Ore Processed / Tonnes Milled	943,126	826,213	14	%	655,920	44	%	2,383,584	1,588,621	50	%
Silver Ounces Produced	3,302,086	3,274,026	1	%	3,158,866	5	%	9,484,135	8,145,421	16	%
Silver Equivalent Ounces Produced	7,319,441	6,435,023	14	%	5,201,085	41	%	18,294,760	14,901,518	23	%
Cash Costs per Silver Equivalent Ounce (1)	$14.09	$13.89	1	%	$9.48	49	%	$13.65	$8.56	60	%
All-in Sustaining Cost per Silver Equivalent Ounce (1)	$19.93	$19.42	3	%	$14.01	42	%	$19.60	$13.25	48	%
Total Production Cost per Tonne (1)	$106.52	$104.94	2	%	$71.56	49	%	$101.73	$77.18	32	%
Average Realized Silver Price per Ounce (1)	$23.10	$27.32	(15	%)	$22.58	2	%	$25.74	$19.74	30	%
Financial (in $millions)
Revenues	$124.6	$154.1	(19	%)	$125.9	(1	%)	$379.2	$246.8	54	%
Mine Operating Earnings	$3.5	$29.4	(88	%)	$48.0	(93	%)	$61.1	$61.4	(1	%)
Net (Loss) Earnings	($18.4)	$15.6	NM		$30.9	NM		($1.0)	($11.5)	(92	%)
Operating Cash Flows before Movements in Working Capital and Taxes	$22.6	$51.2	(56	%)	$52.2	(57	%)	$104.9	$59.1	77	%
Cash and Cash Equivalents	$192.8	$227.1	(15	%)	$232.4	(17	%)	$192.8	$232.4	(17	%)
Working Capital (1)	$262.5	$276.3	(5	%)	$266.7	(2	%)	$262.5	$266.7	(2	%)
Shareholders
(Loss) Earnings per Share ("EPS") - Basic	($0.07)	$0.06	NM		$0.14	NM		$0.00	($0.05)	(93	%)
Adjusted EPS (1)	($0.07)	$0.05	NM		$0.12	NM		$0.01	$0.06	(90	%)
Cash Flow per Share (1)	$0.09	$0.21	(58	%)	$0.24	(64	%)	$0.44	$0.28	56	%

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 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 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 31 to 37 for a reconciliation of non-GAAP to GAAP measures.

Third Quarter Production Summary	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Ore Processed / Tonnes Milled	214,205	234,862	263,645	230,415	943,126
Silver Ounces Produced	1,888,371	508,641	905,074	—	3,302,086
Gold Ounces Produced	20,767	7,498	114	26,145	54,525
Silver Equivalent Ounces Produced	3,422,032	1,061,657	913,481	1,922,270	7,319,441
Cash Costs per Silver Equivalent Ounce	$8.29	$17.09	$12.25	N/A	$14.09
All-in Sustaining Cost per Silver Equivalent Ounce	$11.58	$21.10	$15.28	N/A	$19.93
Cash cost per AuEq Ounce	N/A	N/A	N/A	$1,735	N/A
All-In sustaining costs per AuEq Ounce	N/A	N/A	N/A	$2,286	N/A
Total Production Cost per Tonne	$128.67	$75.76	$41.08	$192.17	$106.52

First Majestic Silver Corp. 2021 Third Quarter Report Page 4

Operational Highlights

•Total production: During the quarter, total production was 7.3 million silver equivalent ounces, consisting of 3.3 million ounces of silver and 54,525 ounces of gold, representing an increase of 1% and 17%, respectively, compared to the previous quarter primarily due to a 39% or 7,383 ounce increase in gold production from the Jerritt Canyon operation in Nevada.

•Withheld 1.4 million ounces of silver: At the end of the quarter, the Company held 1.4 million ounces of silver in inventory due to suppressed silver prices in the third quarter. Silver sales resumed in the fourth quarter. Furthermore, the Company has not withheld sales of any of its gold production.

•Cash cost per silver equivalent ("AgEq") ounce for the quarter was $14.09 per ounce, compared to $13.89 per ounce in the previous quarter. The increase in cash cost per AgEq ounce was due to the addition of Jerritt Canyon which was producing at a higher cash cost compared to the previous quarter which was affected by a 14-day planned maintenance of the dual roasters. This resulted in lower production during the period, which was partially offset by the lower cash costs at San Dimas and La Encantada.

•All-in sustaining cost ("AISC") per AgEq ounce in the third quarter was $19.93 per ounce compared to $19.42 per ounce in the previous quarter. The increase in AISC per AgEq ounce was primarily attributed to the increase in sustaining capital costs related to the Tailings Storage Facility 2 ("TSF2") lift project at Jerritt Canyon. The increase in AISC was partially offset by increased production at San Dimas and La Encantada.

•Major capital projects continue at Jerritt Canyon: During the quarter, the Company completed the structural fill for the tailings lift on TSF2 and installed approximately 25% of the new liner. In addition, the semi-annual maintenance overhaul for the dual roasters was completed on October 4, 2021. As a result of this planned 14-day maintenance shutdown of the dual roasters, there was an increase in the ore stockpile to approximately 30,000 tonnes during the planned 14-day major maintenance shutdown.

•Stockpiling higher grade material at Ermitaño: During the quarter, the Company continued extracting mineralized material from the development of the Ermitaño ore deposit at Santa Elena. At quarter end, a total of 45,271 tonnes of mineralized material grading 4.0 g/t gold and 41 g/t silver have been placed in surface stockpiles. Over the next few months, the Company anticipates initial batch test processing to begin at the Santa Elena processing plant.

•27 active drill rigs: The Company completed a total of 79,066 metres in exploration drilling across the Company's mines during the quarter. At the end of the quarter, a total of 27 exploration drill rigs were active consisting of 12 rigs at San Dimas, six at Jerritt Canyon, seven rigs at Santa Elena and two rigs at La Encantada.

Financial Highlights

•In the third quarter, the Company generated revenues of $124.6 million compared to $125.9 million in the third quarter of 2020. The decrease in revenues was primarily attributed to inventory changes consisting of withheld sales of 1.4 million ounces of silver which remained in inventory at quarter end, and 970,000 ounces of silver withheld from the second quarter of 2020 and sold in the third quarter of 2020. The realized price of silver averaged$23.10 per ounce during the quarter, a 2% increase compared to $22.58 in the third quarter of 2020. Had the Company sold the withheld inventory, the Company would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce.

•The Company realized mine operating earnings of $3.5 million compared to mine operating earnings of $48.0 million in the third quarter of 2020. The decrease in mine operating earnings was primarily attributed to lower silver ounces sold along with higher costs primarily attributed to the first full quarter of operations of Jerritt Canyon.

•Net loss for the quarter was $18.4 million (EPS of ($0.07)) compared to net earnings of $30.9 million (EPS of $0.14) in the third quarter of 2020. The decrease in net earnings was primarily attributed to the reduction in revenue as a result of the decision to withhold the sale of 1.4 million ounces of silver at the end of the quarter.

•Adjusted net loss (a non-GAAP measure) for the quarter, normalized for non-cash or unusual items such as unrealized gain or loss on marketable securities, share-based payments and deferred income taxes for the quarter ended September 30, 2021, was $18.1 million (Adjusted EPS of ($0.07)) compared to adjusted net earnings of $25.7 million (Adjusted EPS of $0.12) in the third quarter of 2020.

•Operating cash flow before movements in working capital and taxes in the quarter was an inflow of $22.6 million ($0.09 per share) compared to a cash inflow of $52.2 million ($0.24 per share) in the third quarter of 2020.

•As of September 30, 2021, the Company had cash and cash equivalents of $192.8 million and working capital of $262.5 million.

First Majestic Silver Corp. 2021 Third Quarter Report Page 5

OVERVIEW OF OPERATING RESULTS

Selected Production Results for the Past Eight Quarters

	2021						2020								2019
PRODUCTION HIGHLIGHTS	Q3		Q2(4)		Q1		Q4		Q3		Q2(2)		Q1		Q4
Ore processed/tonnes milled
San Dimas	214,205		202,382		199,466		208,648		189,918		114,390		200,109		182,265
Santa Elena	234,862		234,381		185,358		168,276		204,577		89,590		177,834		196,640
La Encantada	263,645		242,839		229,421		248,408		261,425		129,579		221,200		221,049
Jerritt Canyon	230,415		146,611		—		—		—		—		—		—
Non-producing properties(1)	—		—		—		—		—		—		—		26,528
Consolidated	943,126		826,213		614,245		625,332		655,920		333,559		599,142		626,482
Silver equivalent ounces produced
San Dimas	3,422,032		3,176,725		2,910,946		3,477,061		3,125,662		2,395,633		3,672,169		3,516,117
Santa Elena	1,061,657		1,140,398		884,332		901,630		1,091,026		595,651		1,593,400		1,592,397
La Encantada	913,481		847,502		745,018		1,098,800		984,397		514,092		929,487		991,856
Jerritt Canyon	1,922,270		1,270,398		—		—		—		—		—		—
Non-producing properties(1)	—		—		—		—		—		—		—		133,042
Consolidated	7,319,441		6,435,023		4,540,296		5,477,492		5,201,085		3,505,376		6,195,057		6,233,412
Silver ounces produced
San Dimas	1,888,371		1,868,031		1,716,143		1,941,286		1,678,075		1,102,931		1,677,376		1,658,721
Santa Elena	508,641		565,453		453,528		418,153		502,375		222,100		550,133		619,321
La Encantada	905,074		840,541		738,354		1,093,521		978,416		509,544		924,472		987,630
Non-producing properties(1)	—		—		—		—		—		—		—		82,752
Consolidated	3,302,086		3,274,026		2,908,024		3,452,959		3,158,866		1,834,575		3,151,980		3,348,424
Gold ounces produced
San Dimas	20,767		19,227		17,448		19,980		18,268		12,042		21,308		21,713
Santa Elena	7,498		8,453		6,327		6,294		7,428		3,677		10,842		11,391
Jerritt Canyon	26,145		18,762		—		—		—		—		—		—
Consolidated	54,410		46,442		23,775		26,274		25,696		15,719		32,150		33,104
Cash cost per Ounce(3)
San Dimas (per AgEq Ounce)	$	8.29	$	10.17	$	10.00	$	8.49	$	7.74	$	6.43	$	7.15	$	6.86
Santa Elena (per AgEq Ounce)	$	17.09	$	16.70	$	20.18	$	16.50	$	13.81	$	11.44	$	9.25	$	8.73
La Encantada (per AgEq Ounce)	$	12.25	$	13.66	$	13.77	$	10.42	$	10.16	$	9.55	$	10.80	$	10.15
Jerritt Canyon (per AuEq Ounce)	$	1,735	$	1,407	$	—	$	—	$	—	$	—	$	—	$	—
Consolidated (per AgEq Ounce)	$	14.09	$	13.89	$	12.61	$	10.21	$	9.48	$	7.76	$	8.25	$	8.23
All-in sustaining cost per Ounce(3)
San Dimas (per AgEq Ounce)	$	11.58	$	14.22	$	14.31	$	12.32	$	10.74	$	10.70	$	9.86	$	10.01
Santa Elena (per AgEq Ounce)	$	21.10	$	21.31	$	25.66	$	21.76	$	16.36	$	15.02	$	10.60	$	10.70
La Encantada (per AgEq Ounce)	$	15.28	$	15.97	$	16.30	$	12.39	$	12.12	$	11.76	$	13.33	$	12.69
Jerritt Canyon (per AuEq Ounce)	$	2,286	$	1,679	$	—	$	—	$	—	$	—	$	—	$	—
Consolidated (per AgEq Ounce)	$	19.93	$	19.42	$	19.35	$	16.12	$	14.01	$	13.95	$	12.23	$	12.81
Production cost per tonne
San Dimas	$	128.67	$	153.43	$	140.29	$	135.13	$	120.60	$	129.67	$	126.33	$	127.19
Santa Elena	$	75.76	$	79.17	$	94.15	$	86.32	$	71.44	$	74.50	$	81.04	$	68.77
La Encantada	$	41.08	$	45.71	$	42.99	$	43.72	$	36.04	$	36.80	$	43.82	$	43.92
Jerritt Canyon	$	192.17	$	177.30	$	—	$	—	$	—	$	—	$	—	$	—
Consolidated	$	106.52	$	104.94	$	90.03	$	85.68	$	71.56	$	78.78	$	82.41	$	78.62

1) Non-producing properties include the San Martin, Del Toro, La Parrilla and La Guitarra mines which are currently placed on temporary suspension.

2) In response to the COVID-19 pandemic, the Mexican Ministry of Health issued a decree requiring non-essential businesses, including mining, to temporarily suspend activities until May 23, 2020. As a result, production and costs were adversely affected during the quarter.

3) 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.

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

First Majestic Silver Corp. 2021 Third Quarter Report Page 6

Operating Results – Consolidated Operations

CONSOLIDATED	2021-Q3		2021-Q2		2021-Q1		2021-YTD		2020-YTD		Change Q3 vs Q2		Change '21 vs '20
Ore processed/tonnes milled	943,126		826,213		614,245		2,383,584		1,588,621		14	%	50	%
Average silver grade (g/t)	122		137		166		138		181		(11	%)	(24	%)
Average gold grade (g/t)	2.00		1.80		1.26		1.74		1.50		11	%	16	%
Silver recovery (%)	90	%	90	%	89	%	89	%	88	%	0	%	1	%
Gold recovery (%)	90	%	91	%	96	%	92	%	96%		(1	%)	(4	%)
Production
Silver ounces produced	3,302,086		3,274,026		2,908,024		9,484,135		8,145,421		1	%	16	%
Gold ounces produced	54,525		46,544		23,873		124,942		73,738		17	%	69	%
Silver equivalent ounces produced	7,319,441		6,435,023		4,540,296		18,294,760		14,901,518		14	%	23	%
Cost
Cash cost per AgEq Ounce	$14.09		$13.89		$12.61		$13.65		$8.56		1	%	59	%
All-In sustaining costs per AgEq Ounce	$19.93		$19.42		$19.35		$19.60		$13.25		3	%	48	%
Total production cost per tonne	$106.52		$104.94		$90.03		$101.73		$77.18		2	%	32	%
Underground development (m)	11,827		13,490		13,707		39,024		25,131		(12	%)	55	%
Diamond drilling (m)	79,066		53,608		39,552		172,225		97,460		47	%	77	%

Production

Total production in the third quarter was 7.3 million silver equivalent ounces, consisting of 3.3 million ounces of silver and 54,525 ounces of gold, representing an increase of 1% and 17%, respectively, compared to the previous quarter primarily due to a 39% increase in gold production from the Jerritt Canyon operation in Nevada.

Total ore processed amounted to 943,126 tonnes, representing a 14% increase compared to the previous quarter. The increase in tonnes processed was primarily due to a 57% increase in tonnes milled at Jerritt Canyon while operating for a full quarter under First Majestic's control, in addition to a 9% increase in tonnes milled at La Encantada and a 6% increase in tonnes milled at San Dimas.

Consolidated silver grades in the quarter averaged 122 g/t compared to 137 g/t in the previous quarter and consolidated gold grades averaged 2.00 g/t compared to 1.80 g/t in the prior quarter. Consolidated silver grades at the three Mexican mines decreased 4% compared to the prior quarter primarily due to slightly lower grades at San Dimas and La Encantada. Gold grades increased by 11% when compared to the prior quarter due to higher gold grades at Jerritt Canyon and San Dimas during the quarter. Consolidated silver and gold recoveries both averaged 90%.

Cash Cost and All-In Sustaining Cost per Ounce

Cash cost per silver equivalent ("AgEq") ounce for the quarter was $14.09 per ounce, compared to $13.89 per ounce in the previous quarter. The increase in cash cost per AgEq ounce was due to the addition of Jerritt Canyon which was producing at a higher cash cost compared to the previous quarter as a result of a 14-day planned maintenance of the dual roaster. This resulted in lower production during the period, which was partially offset by the lower cash costs at San Dimas and La Encantada.

All-in Sustaining Cost ("AISC") per AgEq ounce in the third quarter was $19.93 per ounce compared to $19.42 per ounce in the previous quarter. The increase in AISC per AgEq ounce was primarily attributed to the increase in sustaining capital costs related to the Tailings Storage Facility 2 ("TSF2") lift project at Jerritt Canyon. The increase in AISC was partially offset by decreases at San Dimas and La Encantada as a result of increased rates of production.

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Development and Exploration

During the quarter, the Company completed 11,827 metres of underground development and 79,066 metres of diamond drilling, compared to 13,490 metres and 53,608 metres, respectively, in the previous quarter.

The Company completed a total of 79,066 metres in exploration drilling across the Company's mines during the quarter. At the end of the quarter, a total of 27 exploration drill rigs were active consisting of twelve rigs at San Dimas, six at Jerritt Canyon, seven rigs at Santa Elena and two rigs at La Encantada.

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	2021-Q3		2021-Q2		2021-Q1		2021-YTD		2020-YTD		Change Q3 vs Q2		Change '21 vs '20
Total ore processed/tonnes milled	214,205		202,382		199,466		616,053		504,417		6	%	22	%
Average silver grade (g/t)	289		301		285		291		292		(4	%)	0	%
Average gold grade (g/t)	3.14		3.07		2.83		3.02		3.30		2	%	(8	%)
Silver recovery (%)	95	%	95	%	94	%	95	%	94	%	0	%	1	%
Gold recovery (%)	96	%	96	%	96	%	96	%	96	%	0	%	0	%
Production
Silver ounces produced	1,888,371		1,868,031		1,716,143		5,472,545		4,458,381		1	%	23	%
Gold ounces produced	20,767		19,227		17,448		57,442		51,618		8	%	11	%
Silver equivalent ounces produced	3,422,032		3,176,725		2,910,946		9,509,703		9,193,464		8	%	3	%
Cost
Cash cost per AgEq Ounce	$8.29		$10.17		$10.00		$9.44		$7.16		(18	%)	32	%
All-In sustaining costs per AgEq Ounce	$11.58		$14.22		$14.31		$13.30		$10.38		(19	%)	28	%
Total production cost per tonne	$128.67		$153.43		$140.29		$140.56		$124.93		(16	%)	13	%
Underground development (m)	5,237		6,637		8,242		20,116		17,700		(21	%)	14	%
Diamond drilling (m)	32,086		26,382		24,078		82,546		61,123		22	%	35	%

During the third quarter, San Dimas produced 1,888,371 ounces of silver and 20,767 ounces of gold representing an increase of 1% and 8%, respectively, compared to the prior quarter for total production of 3,422,032 silver equivalent ounces, compared to 3,176,725 silver equivalent ounces in the prior quarter.

The mill processed a total of 214,205 tonnes of ore with average silver and gold grades of 289 g/t and 3.14 g/t, respectively, compared to 202,382 tonnes milled with average silver and gold grades of 301 g/t and 3.07 g/t in the previous quarter. The Central Block and Sinaloa Graben areas contributed approximately 62% and 29%, respectively, of the total production during the quarter. In addition, the Tayoltita, El Cristo and West Block areas contributed approximately 9% of total production in the quarter. Silver and gold grades are expected to increase in the fourth quarter as a major high-grade area within the Jessica vein of the Central Block was brought into production in September.

Silver and gold recoveries averaged 95% and 96%, respectively, during the quarter which were consistent with the prior quarter.

In the third quarter, cash cost per AgEq ounce was $8.29 per ounce compared to $10.17 per ounce in the prior quarter. The decrease in cash costs during the quarter was primarily due to lower energy costs as the mine was able to generate more

First Majestic Silver Corp. 2021 Third Quarter Report Page 8

energy from its hydroelectric plant, compared to higher cost of electricity that was required from the national grid in the prior quarter. Costs were further reduced as a result of an 8% increase in silver equivalent ounces produced along with a 21% reduction in ore development metres compared to the prior quarter .

AISC per AgEq ounce for the quarter was $11.58 per ounce compared to $14.22 per ounce in the prior quarter, primarily due to a decrease in cash costs and a decrease in sustainable investments in property, plant and equipment and development costs.

The San Dimas mine is subject to a gold and silver streaming agreement with Wheaton Precious Metals International Ltd. ("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 per ounce of gold (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 September 30, 2021 was 70:1. During the third quarter, the Company delivered 11,346 ounces (2020 - 9,285 ounces) of gold to WPMI at $618 (2020 - $612) per ounce.

A total of 5,237 metres of underground development was completed in the third quarter, compared to 6,637 metres in the prior quarter. During the third quarter, 10 underground drills completed 32,086 metres compared to 26,382 metres in the prior quarter. Exploration drilling in the quarter continued to focus in the Central, Sinaloa, Tayoltita and El Cristo Blocks.

First Majestic Silver Corp. 2021 Third Quarter Report Page 9

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 and spent ore from the previous heap leach pad. The Company owns 100% of the Santa Elena mine including mining concessions totaling over 102,244 hectares, inclusive of the Ermitaño concessions and ore deposit.

SANTA ELENA	2021-Q3		2021-Q2		2021-Q1		2021-YTD		2020-YTD		Change Q3 vs Q2		Change '21 vs '20
Total ore processed/tonnes milled	234,862		234,381		185,358		654,600		472,000		0	%	39	%
Underground tonnes
Tonnes milled	160,012		166,969		122,401		449,382		316,860		(4	%)	42	%
Average silver grade (g/t)	92		100		106		99		117		(8	%)	(15	%)
Average gold grade (g/t)	1.23		1.39		1.37		1.33		1.92		(12	%)	(31	%)
Heap leach tonnes
Tonnes milled	74,849		67,412		62,957		205,217		155,141		11	%	32	%
Average silver grade (g/t)	37		33		35		35		34		12	%	3	%
Average gold grade (g/t)	0.63		0.62		0.61		0.62		0.65		2	%	(5	%)
Silver recovery (%)	91	%	93	%	93	%	92	%	93	%	(2	%)	(1	%)
Gold recovery (%)	96	%	96	%	96	%	96	%	96	%	0	%	0	%
Production
Silver ounces produced	508,641		565,453		453,528		1,527,621		1,274,608		(10	%)	20	%
Gold ounces produced	7,498		8,453		6,327		22,279		21,948		(11	%)	2	%
Silver equivalent ounces produced	1,061,657		1,140,398		884,332		3,086,388		3,280,078		(7	%)	(6	%)
Cost
Cash cost per AgEq Ounce	$17.09		$16.70		$20.18		$17.83		$11.17		2	%	60	%
All-In sustaining costs per AgEq Ounce	$21.10		$21.31		$25.66		$22.48		$13.32		(1	%)	69	%
Total production cost per tonne	$75.76		$79.17		$94.15		$82.18		$75.64		(4	%)	9	%
Underground development (m)	4,195		4,994		4,500		13,689		3,820		(16	%)	258	%
Diamond drilling (m)	19,609		17,915		12,607		50,130		20,584		9	%	144	%

During the third quarter, Santa Elena produced 1,061,657 silver equivalent ounces, consisting of 508,641 ounces of silver and 7,498 ounces of gold, representing a decrease of 10% and 11%, respectively compared to the prior quarter.

The mill processed a total of 234,862 tonnes during the quarter, consisting of 160,012 tonnes from the underground mine ore and 74,849 tonnes from the above ground heap leach pad compared to 234,381 total tonnes in the prior quarter. Underground production rates were slightly lower than budget due to the loss of the main ventilation fan in August which restricted mining in the 290 level of the Main vein. A new ventilation fan was successfully installed in September and underground rates returned to normal levels.

During the quarter, silver and gold grades from underground ore averaged 92 g/t and 1.23 g/t, respectively, compared to 100 g/t and 1.39 g/t in the prior quarter. Above ground heap leach pad averaged 37 g/t and 0.63 g/t, compared to 33 g/t and 0.62 g/t in the prior quarter.

Silver and gold recoveries in the third quarter averaged 91% and 96%, respectively, consistent with the previous quarter.

Cash cost per AgEq ounce in the third quarter was $17.09 per ounce compared to $16.70 per ounce in the previous quarter. The increase in cash cost was primarily attributed to a 7% decrease in production due to lower grades compared to the previous quarter.

First Majestic Silver Corp. 2021 Third Quarter Report Page 10

AISC per AgEq ounce for the quarter was $21.10 per ounce compared to $21.31 per ounce in the prior quarter. The decrease was primarily attributed to a decrease in sustainable mine development metres.

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 Santa Elena 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 1,472 ounces (2020 - 1,730 ounces) of gold to Sandstorm at an average selling price of $468 per ounce of gold (2020 - $463 per ounce).

In the third quarter, Santa Elena completed a total of 4,195 metres of underground development, compared to 4,994 metres in the previous quarter.

At the Ermitaño project approximately four kilometres from the Santa Elena processing plant, extraction of mineralized material from the development of the Ermitaño orebody continued with a total of 45,271 tonnes of material grading 4.0 g/t gold and 41 g/t silver are now on the surface in stockpiles. The Company is planning to begin initial batch testing at the Santa Elena processing plant in the coming weeks. In addition, the main access road connecting the new mine to the Santa Elena processing plant was completed in October.

During the third quarter, the lab at Santa Elena completed and passed its ISO 9001 surveillance audit determining the facility is fully compliant with the management system quality standards for sample preparation, geochemical and assay services.

A total of seven drill rigs, consisting of four surface rigs and three underground rigs, were active at the end of the quarter, completing 19,609 metres compared to 17,915 metres in the prior quarter. At Santa Elena, near-mine drilling focused on the Santa Elena main, Alejandra del Bajo and Fenix veins. Brownfield drilling was carried out at Santa Elena Norte vein while greenfield drilling targeted the El Colmillo area. Drilling at Santa Elena demonstrates the continuity of the deep ore shoot at the Alejandra del Bajo vein and intersects a significant vein width in the deep main vein zone. Drilling at Ermitaño continues to delineate significant vein widths in the eastern extension and at the Ermitaño-Splay infill.

The Santa Elena mine team is currently working with the Ermitaño project team to begin shipping ore from the Ermitaño stockpile to be processed in the Santa Elena plant in the fourth quarter.

First Majestic Silver Corp. 2021 Third Quarter Report Page 11

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	2021-Q3		2021-Q2		2021-Q1		2021-YTD		2020-YTD		Change Q3 vs Q2		Change '21 vs '20
Ore processed/tonnes milled	263,645		242,839		229,421		735,905		612,204		9	%	20	%
Average silver grade (g/t)	134		138		131		134		158		(3	%)	(15	%)
Silver recovery (%)	80	%	78	%	77	%	78	%	78	%	2	%	0	%
Production
Silver ounces produced	905,074		840,541		738,354		2,483,969		2,412,432		8	%	3	%
Gold ounces produced	114		102		97		314		172		12	%	83	%
Silver equivalent ounces produced	913,481		847,502		745,018		2,506,001		2,427,976		8	%	3	%
Cost
Cash cost per AgEq Ounce	$12.25		$13.66		$13.77		$13.18		$10.28		(10	%)	28	%
All-In sustaining costs per AgEq Ounce	$15.28		$15.97		$16.30		$15.81		$12.50		(4	%)	26	%
Total production cost per tonne	$41.08		$45.71		$42.99		$43.19		$39.01		(10	%)	11	%
Underground development (m)	722		827		965		2,514		2,786		(13	%)	(10	%)
Diamond drilling (m)	5,196		4,905		2,867		12,968		10,510		6%		23%

During the quarter, La Encantada produced 905,074 silver ounces, representing a 8% increase in production compared to the previous quarter primarily due to a 9% increase in tonnes processed. The La Prieta and San Javier caving areas contributed approximately 77% and 3%, respectively, of the total production during the quarter. In addition, previously mined backfill areas contributed approximately 20% of total production during the quarter.

The mill processed a total of 263,645 tonnes with an average silver grade and recovery during the quarter of 134 g/t and 80%, respectively, compared to 138 g/t and 78%, respectively, in the previous quarter.

Cash cost per AgEq ounce for the quarter was $12.25 compared to $13.66 in the previous quarter. The decrease in cash cost per AgEq ounce was primarily due to the 8% increase in silver equivalent ounces produced.

AISC per AgEq ounce for the quarter was $15.28 per ounce, a decrease of 4% compared to $15.97 per ounce in the previous quarter primarily due to the decrease in cash cost per AgEq ounce.

A total of 722 metres of underground development were completed in the third quarter compared to 827 metres in the prior quarter. One underground and one surface drill completed 5,196 metres of drilling compared to 4,905 metres in the previous quarter.

During the third quarter, the Company entered into a surface access agreement with the Tenochtitlan Ejido to gain access to the 10,100 hectares of land owned by the Ejido's, covering the Company's 4,076 hectares of mineral concessions at La Encantada. This new agreement allows the Company, for the first time since owning the mine, to initiate surface exploration programs on this large Ejido land package.

First Majestic Silver Corp. 2021 Third Quarter Report Page 12

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 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	2021-Q3		2021-Q2		2021-YTD		Change Q3 vs Q2
Ore processed/tonnes milled	230,415		146,611		377,026		57	%
Average gold grade (g/t)	4.19		4.03		4.13		4	%
Gold recovery (%)	84	%	84	%	84	%	0	%
Production
Gold ounces produced	26,145		18,762		44,907		39	%
Gold equivalent ounces produced	26,145		18,762		44,907		39	%
Silver equivalent ounces produced	1,922,270		1,270,398		3,192,668		51	%
Cost
Cash cost per AuEq Ounce	$1,735		$1,407		$1,598		23	%
All-In sustaining costs per AuEq Ounce	$2,286		$1,679		$2,032		36	%
Total production cost per tonne	$192.17		$177.30		$186.46		8	%
Underground development (m)	1,673		1,032		2,705		62	%
Diamond drilling (m)	22,175		4,406		26,581		403%

During the quarter, Jerritt Canyon produced 26,145 ounces of gold, representing a 39% increase compared to the prior quarter. The increase was primarily due to achieving a full quarter of production under the Company's ownership as well as improved underground mine and plant production rates, whereas the prior quarter only included two months of production since the April 30, 2021 acquisition date.

The mill processed a total of 230,415 tonnes with an average gold grade and recovery of 4.19 g/t and 84%, respectively, compared to 146,611 tonnes with an average grade and recovery of 4.03 g/t and 84%, respectively in the prior quarter. Increased ore development rates and processing of lower ore grade from surface material continued during the quarter which resulted in higher average tonnage and ore grades processed in the plant.

The SSX and Smith mines contributed approximately 42% and 38%, respectively, of the total production during the quarter. In addition, numerous lower grade surface stockpiles contributed approximately 20% of total production during the quarter.

Cash cost per AuEq ounce for the quarter was $1,735 compared to $1,407 in the prior quarter primarily due to a 14-day planned major maintenance of the dual roasters at the end of the current quarter as well as the new Nevada State mineral tax effective July 1, 2021. AISC per AuEq ounce for the quarter was $2,286 per ounce, compared to $1,679 in the prior quarter primarily due to the TSF2 tailings lift project.

The majority of permitting, preparation and construction activities for the TSF2 12 foot (3.7 metres) tailings lift project, occurred during the quarter with completion expected in the fourth quarter. The estimated cost of $12.3 million lift will be expected to provide over two years of additional deposition storage for tailings material at the site. In addition, construction activities on the TSF2 advanced with the completion of the structural fill and approximately 25% of the new liner installation. The lift project remains ahead of schedule with expected completion in November. The majority of the lift costs are captured in the third quarter and as a result, the mine is expecting AISC to decrease in the fourth quarter and normalize at the beginning of 2022 after the completion of the lift.

First Majestic Silver Corp. 2021 Third Quarter Report Page 13

The semi-annual maintenance overhaul of the dual roasters was completed on October 4th. There was an increase in the ore stockpile to approximately 30,000 tonnes during the planned 14-day major maintenance shutdown. This large surface stockpile is expected to be completely processed during the fourth quarter. Currently, the processing plant is operating at a rate of 3,000 tonnes per day.

A total of six drill rigs, consisting of three surface rigs and three underground rigs, were active at the end of the quarter. A total of 1,673 metres of underground development were drilled during the quarter.

At the end of the quarter, the underground connection drift between the SSX and Smith mines was approximately 75% complete and the project remains on schedule for completion by the end of the year. The new connection is expected to reduce transportation bottlenecks and improve movement efficiencies of personnel and equipment. In addition, the connection drift is expected to support future exploration activities.

Since the acquisition announcement in January 2021, 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 will be implemented over the next 12 to 24 months to improve production and reduce costs at the mine and processing plant, including:

1.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

2.Obtain permits for potential pushbacks of past-producing open pits for future mill feed

3.Test over 25 high-priority exploration targets, both near-mine and greenfield

4.Evaluate and complete ore purchase opportunities with third parties to fill roaster excess capacity

5.Execute a roaster expansion capacity study for future growth

6.Optimize the water treatment plant for mine dewatering prioritization

7.Complete the lift upgrade and develop a long-term TSF plan

8.Optimize the underground mining plan and execution of mining with the mine contractor

It should be noted that many 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.

In late October, the Company executed an agreement with the Nevada Division of Environmental Protection ("NDEP") relating to funds required to establish a trust agreement to cover post-closure water treatment cost at Jerritt Canyon. The estimated costs are $17.6 million and would need to be funded by October 31, 2022.

First Majestic Silver Corp. 2021 Third Quarter Report Page 14

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 producing 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 temporarily suspended since September 2019. The Company is in discussions with the La Parrilla Ejido to continue the long-term land use agreement at La Parrilla.

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 temporarily suspended since January 2020 in order to improve overall operating cash flows and profit margins while focusing on the exploration program in the area. The exploration program will continue to test near mine, brownfield and greenfield targets in an effort to develop new resources necessary to support a potential reopening in the future, subject to a sufficient improvement in mineral economics to justify a restart.

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 to acquire a new mining concession covering 24,723 hectares. 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 temporarily suspended all mining and processing activities at the San Martin operation due to lower economics and growing insecurity in the area and safety concerns for our workforce. The Company continues to work with government authorities to secure the area and continued to maintain the mine and plant facilities, including advancing a buttressing project on the TSF2 tailing impoundment. The re-opening date is contingent on economics and security conditions in the region and cannot be determined at this time.

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 and the Company is currently reviewing strategic options including the potential sale of the operation. The Company will continue with remediation programs to prepare the operation for a potential reopening in the future, subject to sufficient improvement in the economic situation to justify a restart of the operation. Ongoing care and maintenance activities include pumping, de-watering of the underground mine and water treatment continue.

First Majestic Silver Corp. 2021 Third Quarter Report Page 15

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 of $7.5 million, consisting of $3.75 million in cash and $3.75 million in First Majestic shares (287,300 common shares) was paid in 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) is payable upon receipt by First Mining of a Federal or Provincial Environmental Assessment approval for Springpole.

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.

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 directors and/or officers of First Majestic.

First Majestic Silver Corp. 2021 Third Quarter Report Page 16

OVERVIEW OF FINANCIAL PERFORMANCE

For the quarters ended September 30, 2021 and 2020 (in thousands of dollars, except for per share amounts):

	Third Quarter	Third Quarter
	2021	2020	Variance %
Revenues	$124,646	$125,881	(1	%)	(1)
Mine operating costs
Cost of sales	92,006	60,275	53	%	(2)
Depletion, depreciation and amortization	29,122	17,573	66	%	(3)
	121,128	77,848	56	%
Mine operating earnings	3,518	48,033	(93	%)
General and administrative expenses	6,213	5,520	13	%
Share-based payments	3,069	1,703	80	%
Mine holding costs	3,344	4,184	(20	%)	(4)
Loss on divestiture of exploration projects	—	(6,421)	(100	%)	(5)
Acquisition costs	127	—	100	%
Foreign exchange loss	1,676	5,340	(69	%)
Operating (loss) earnings	(10,911)	37,707	NM
Unrealized gain on foreign currency derivatives	—	7,541	(100	%)	(6)
Investment and other (loss) income	(4,863)	2,741	NM		(7)
Finance costs	(4,027)	(3,650)	(10	%)
(Loss) earnings before income taxes	(19,801)	44,339	NM
Current income tax expense	6,678	3,842	(74	%)
Deferred income tax (recovery) expense	(8,073)	9,551	NM
Income tax (recovery) expense	(1,395)	13,393	(110	%)	(8)
Net (loss) earnings for the period	($18,406)	$30,946	NM		(9)
(Loss) earnings per share (basic)	($0.07)	$0.14	NM		(9)
(Loss) earnings per share (diluted)	($0.07)	$0.14	NM		(9)

NM - Not meaningful

1.Revenues in the quarter decreased $1.2 million compared to the same quarter of the previous year primarily attributed to:

•a decrease in payable silver equivalent ounces sold mainly attributed to inventory changes consisting of:

◦1.4 million ounces of silver withheld in inventory in anticipation of higher silver prices in the fourth quarter;

◦970,000 ounces of silver and 6,000 ounces of gold which were sold in the third quarter of 2020 that were held as finished goods inventory at the end of the second quarter of 2020; and

partially offset by:

◦ 26,195 ounces of gold sold by Jerritt Canyon.

Had the Company sold the withheld inventory of 1.4 million ounces of silver, the Company would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce;

Partially offset by:

•a 2% increase in realized silver price per ounce sold, which averaged$23.10 during the quarter compared to $22.58 in the third quarter of 2020, resulting in a $3.6 million increase in revenues.    

First Majestic Silver Corp. 2021 Third Quarter Report Page 17

2.Cost of sales in the quarter increased $31.7 million compared to the same quarter of the previous year primarily due to:

•the addition of the Jerritt Canyon mine which incurred $44.9 million in cost of sales during its first full quarter of operations;

•a stronger Mexican Peso against the U.S. Dollar, which averaged 9% higher compared to the third quarter of 2020;

Partially offset by:

•a $24.4 million decrease in change in inventory expense due to a $14 million reduction in inventory expense from the 1.4 million silver ounces of withheld inventory in the third quarter of 2021 compared to an inventory expense of $9.7 million in the third quarter of 2020 related to 0.9 million silver ounces withheld at the end of the second quarter of 2020.

3.Depletion, depreciation and amortization in the quarter increased $11.5 million compared to the same quarter of the previous year, primarily as a result of:

•the addition of the Jerritt Canyon mine which incurred $14.8 million during the quarter, a full three month operating period;

Partially offset by:

•a decrease of $3.5 million at San Dimas and La Encantada during the quarter primarily due to the withheld inventory which resulted in a deferral of depletion, depreciation and amortization expenses relating to these withheld ounces.

4.Mine holding costs decreased by $0.8 million compared to the same quarter of 2020, primarily due to a decrease in labour costs at Del Toro, San Martin and La Parrilla following restructuring that took place in 2020.

5.Gain on divestiture of exploration project $6.4 million during the same quarter of the previous year relates to the arrangement to option the La Joya project to Silver Dollar Resources Inc. in September 2020.

6.Fair value adjustment on foreign currency derivatives a gainof $7.5 million in the third quarter of the prior year related to mark-to-market adjustments on the Company's foreign currency derivatives, which were fully settled as at December 31, 2020. The Company utilized these foreign currency options and swaps to hedge cash flows relating to mining operations, exploration and evaluation activities and corporate expenses in Mexican Pesos.

7.Investment and other (loss) income decrease of $7.6 million compared to the third quarter of the prior year, primarily due to a $5.2 million unrealized loss on investment compared to an unrealized gain of $2.7 million in the same quarter of the prior year.

8.During the quarter, the Company recorded an income tax recovery of $1.4 million compared to an expense of $13.4 million in the third quarter of 2020. The increase in income tax recovery was primarily due to inflationary effects on the tax loss carryforwards, the foreign exchange impact on the Company's Mexican Peso denominated future income tax liability balances and timing differences on the deductibility of capital expenditures for tax and accounting purposes.

9.As a result of the foregoing, net loss for the quarter was $18.4 million (EPS of ($0.07)) compared to net earnings of $30.9 million (EPS of $0.14) in the same quarter of the prior year.

First Majestic Silver Corp. 2021 Third Quarter Report Page 18

For the year to date ended September 30, 2021, and 2020 (in thousands of dollars, except for per share amounts):

	Year to date	Year to date	Variance %
	2021	2020	'21 vs '20
Revenues	$379,241	$246,801	54	%	(1)
Mine operating costs
Cost of sales	244,849	136,297	80	%	(2)
Cost of sales - standby costs	—	10,112	(100	%)	(3)
Depletion, depreciation and amortization	73,335	39,006	88	%	(4)
	318,184	185,415	72	%
Mine operating earnings	61,057	61,386	(1	%)
General and administrative	20,075	17,650	14	%
Share-based payments	9,431	6,028	56	%
Acquisition costs	1,950	—	100	%	(5)
Mine holding costs	9,571	14,566	(34	%)	(6)
Loss on divestiture of exploration projects	—	3,685	(100	%)	(7)
Foreign exchange (gain) loss	(903)	8,743	(110	%)
Operating earnings	20,933	10,714	95	%
Fair value adjustment on foreign currency derivatives	—	(4,862)	(100	%)	(8)
Investment and other (loss) income	(3,684)	7,460	(149	%)	(9)
Finance costs	(11,927)	(11,056)	(8	%)
Earnings before income taxes	5,322	2,256	NM
Current income tax expense	25,540	5,851	NM
Deferred income tax (recovery) expense	(19,266)	7,863	NM
Income tax expense	6,274	13,714	(54	%)	(10)
Net loss for the period	($952)	($11,458)	NM		(11)
Earnings (loss) per share (basic and diluted)	$0.00	($0.05)	NM		(11)

NM - Not meaningful

1.Revenues in the nine months ended September 30, 2021 increased $132.4 million or 54% compared to same period of the previous year, primarily attributed to the increase in production from the Mexican operations attributed to the reduced effect of the temporary COVID-19 Suspension and units operating with limited workforce levels in the third quarter of the previous year, as well as the following factors:

•$87.4 million increase due to a 30% increase in realized silver price per ounce sold, which averaged $25.74 compared to $19.74 in the prior year; and

•$45.0 million increase due to a 16%increase in payable silver equivalent ounces sold compared to the prior year mainly due to the addition of Jerritt Canyon and partially offset by the 1.4 million ounces of silver withheld in inventory in anticipation of higher prices in the fourth quarter. Had the Company sold the withheld inventory, the Company would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce.     

2.Cost of sales in the year increased $108.6 million or 80% compared to 2020 as a result of the following factors:

•the addition of the Jerritt Canyon mine on April 30, 2021, which contributed $76.6 million to cost of sales since its acquisition by First Majestic;

•a 26% increase in throughput from the Mexican operations compared to 2020 primarily attributed to an increase in operational days due to lower impact from the COVID-19 Suspension;

First Majestic Silver Corp. 2021 Third Quarter Report Page 19

•a stronger Mexican Peso against the U.S. Dollar, which averaged 8% higher compared to the same period of 2020;

Partially offset by:

•a $13.4 million increase in change in inventory expense due to approximately 1.4 million ounces of silver withheld as finished goods inventory in the third quarter of 2021 due to lower silver prices.

3.Standby costs in 2020 were primarily related to direct costs incurred at the San Dimas ($3.5 million), Santa Elena ($2.0 million) and La Encantada ($1.7 million) mines during the temporary COVID-19 Suspensions, as well as $2.0 million incurred during a 13-day union work stoppage at San Dimas during the third quarter of 2020.

4.Depletion, depreciation and amortization in the year increased $34.3 million or 88% compared to the previous year primarily as a result of the addition of the Jerritt Canyon mine, which contributed $25.1 million during the year, and $8.6 million increase from Mexican operations due to an increase in throughput and higher mining interest and property plant and equipment balances.

5.Acquisition costs of $2.0 million relates to due diligence costs and closing fees incurred in connection with the acquisition of the Jerritt Canyon Canada Ltd. which closed on April 30, 2021.

6.Mine holding costs for the year decreased $5.0 million compared to the previous year primarily due to a decrease in labour costs at Del Toro, San Martin and La Parrilla following restructuring that took place in early 2020.

7.Loss on divestiture of exploration projects in 2020 related to $10.1 million loss on the sale of the Plomosas project to GR Silver Mining Ltd. in March 2020.

8.Fair value adjustment on foreign currency derivatives of $4.9 million loss during 2020 related to mark-to-market adjustments on the Company's foreign currency derivatives, which have been fully settled as at December 31, 2020. The Company utilized these foreign currency options and swaps to hedge cash flows relating to mining operations, exploration and evaluation activities and corporate expenses in Mexican Pesos.

9.Investment and other income in the year decreased $11.1 million primarily due to a $2.8 million unrealized loss on investment compared to an unrealized gain of $4.4 million in the same quarter of the prior year as well as a $2.1 million write-down on assets held-for-sale in relation to the sale of certain AG mill equipment to Condor Gold PLC.

10.During the nine months ended September 30, 2021, the Company recorded an income tax expense of $6.3 million, compared to $13.7 million in 2020. The decrease in income tax expense was primarily driven by the inflationary adjustment on Mexican tax bases, timing differences on the deductibility of capital expenditures for tax and accounting purposes, and the foreign exchange impact on the Company's Mexican Peso denominated future income tax liability balances.

11.As a result of the foregoing, net loss for the nine months ended September 30, 2021 was $1.0 million (EPS of $0.00), compared to net loss of $11.5 million (EPS of ($0.05)) in the prior year.

First Majestic Silver Corp. 2021 Third Quarter Report Page 20

SUMMARY OF QUARTERLY RESULTS

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

	2021			2020				2019
Selected Financial Information	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Revenue	$124,646	$154,073	$100,522	$117,075	$125,881	$34,855	$86,065	$96,476
Cost of sales	$92,006	$95,782	$57,061	$58,008	$60,275	$26,187	$49,835	$55,033
Cost of sales - standby costs	$—	$—	$—	$—	$—	$9,166	$946	$—
Depletion, depreciation and amortization	$29,122	$28,868	$15,345	$15,399	$17,573	$7,264	$14,169	$17,502
Mine operating earnings (loss)	$3,518	$29,423	$28,116	$43,668	$48,033	($7,762)	$21,115	$23,941
Net (loss) earnings after tax	($18,406)	$15,599	$1,855	$34,545	$30,946	($9,968)	($32,436)	($39,946)
(Loss) earnings per share - basic	($0.07)	$0.06	$0.01	$0.16	$0.14	($0.05)	($0.15)	($0.19)
(Loss) earnings per share - diluted	($0.07)	$0.06	$0.01	$0.15	$0.14	($0.05)	($0.15)	($0.19)

During the third quarter of 2021, mine operating earnings were $3.5 million compared to earnings of $29.4 million in the previous quarter. Net loss for the quarter was $18.4 million compared to earnings of $15.6 million in the prior quarter, as the Company withheld 1.4 million ounces of silver in inventory in anticipation of higher silver prices in the fourth quarter.

LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL OBLIGATIONS

Liquidity

As at September 30, 2021, the Company had cash and cash equivalents of $192.8 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 $5.7 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 September 30, 2021 was $262.5 million compared to $254.4 million at December 31, 2020. Total available liquidity at September 30, 2021 was $272.5 million, including $10.0 million of undrawn revolving credit facility. Subsequent to September 30, 2021, the Company repaid $30 million of debt that had been drawn down from the Scotiabank revolving credit facility.

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Cash flow
Cash (used in) generated by operating activities	($11,988)	$55,003	($21,089)	$36,503
Cash used in investing activities	(61,440)	(33,522)	(121,014)	(85,775)
Cash generated by financing activities	41,911	116,172	97,153	115,459
(Decrease) increase in cash and cash equivalents	($31,517)	$137,653	($44,950)	$66,187
Effect of exchange rate on cash and cash equivalents held in foreign currencies	(2,782)	(447)	(818)	(2,760)
Cash and cash equivalents, beginning of the period	227,109	95,230	238,578	169,009
Cash and cash equivalents, end of period	$192,810	$232,436	$192,810	$232,436

First Majestic Silver Corp. 2021 Third Quarter Report Page 21

The Company’s cash flows from operating, investing and financing activities during the nine months ended September 30, 2021 are summarized as follows:

•Cash used in operating activities of $21.1 million, primarily due to:

•$104.9 million in operating cash flows from operating activities before movements in working capital and taxes;

net of:

•$72.0 million in income taxes paid during the period;

•$54.0 million in net change in non-cash working capital items during the period, including $0.4 million increase in VAT receivables, $15.6 million increase in inventories, $31.2 increase in restricted cash (PEM frozen bank account), net of $5.7 million decrease in trade and other payables; and

•Cash used in investing activities of $121.0 million, primarily related to:

•$97.7 million spent on mine development and exploration activities;

•$33.7 million spent on purchase of property, plant and equipment;

•$12.5 million reclassification of restricted cash for the acquisition of Jerritt Canyon (escrow funds);

•$7.1 million spent on deposits on non-current assets;

•$1.8 million spent on the purchase of marketable securities;

net of:

•$30.0 million of restricted cash acquired through the acquisition of Jerritt Canyon; and

•$2.2 million of net proceeds from the disposal of marketable securities.

•Cash provided by financing activities of $97.2 million, primarily consists of the following:

•$66.7 million of net proceeds from the issuance of shares through the ATM;

•$13.6 million of net proceeds from the exercise of stock options;

•$30.0 million of net proceeds from the drawdown on the Scotiabank revolving credit facility;

net of:

•$6.3 million on repayment of lease obligations.

•$4.2 million payment of financing costs; and

•$2.7 million payment on dividends paid.

As of September 30, 2021 the Company had received $31.2 million (633 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 funds of $31.2 million as a guarantee against certain disputed tax assessments. 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 assessments through the relevant legal channels. Additionally, as part of the acquisition of Jerritt Canyon, the Company was required to hold certain funds in escrow to settle the payment for trigger tax provisions along with any adjustments to working capital. As at September 30, 2021, $12.5 million remained in escrow which the Company expects to be settled within the next twelve months.

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.

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 September 30, 2021 and December 31, 2020, the Company was fully in compliance with these covenants.

First Majestic Silver Corp. 2021 Third Quarter Report Page 22

Contractual Obligations and Commitments

As at September 30, 2021, the Company’s contractual obligations and commitments are summarized as follows:

	Contractual Cash Flows	Less than 1 year	2 to 3 years	4 to 5 years	After 5 years
Trade and other payables	$112,731	$112,731	$—	$—	$—
Debt facilities	202,058	3,926	198,132	—	—
Lease liabilities	42,126	10,854	18,222	11,586	1,464
Other liabilities	6,282	—	—	—	6,282
Purchase obligations and commitments	36,387	36,387	—	—	—
	$399,584	$163,898	$216,354	$11,586	$7,746

At September 30, 2021, the Company had working capital of $262.5 million (2020 – $254.4 million) and total available liquidity of $272.5 million (2020 – $319.4 million), including $10.0 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

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 September 30, 2021, value added taxes (“VAT”) receivable was $58.0 million (December 31, 2020 - $56.9 million), of which $34.8 million (December 31, 2020 - $37.9 million) relates to PEM. SAT has 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.

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.

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.

First Majestic Silver Corp. 2021 Third Quarter Report Page 23

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:

	September 30, 2021
	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	$49,482	$12,505	$—	$6,906	($2,853)	$—	$66,040	$6,604
Mexican peso	33,431	31,161	54,535	—	(41,577)	12,000	89,550	8,955
	$82,913	$43,666	$54,535	$6,906	($44,430)	$12,000	$155,590	$15,559

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.

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

		September 30, 2021
	Effect of +/- 10% change in metal prices
	Silver	Gold	Total
Metals in doré inventory	$3,085	$281	$3,366
	$3,085	$281	$3,366

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, 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, 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, at various times in the past and may in the future, experience extreme volatility in response to economic shocks or other events, such as the ongoing situation concerning

First Majestic Silver Corp. 2021 Third Quarter Report Page 24

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 at the date of this MD&A, the global reactions to the spread of COVID‐19 have led to, among other things, significant restrictions in many jurisdictions on travel and gatherings of individuals, quarantines, temporary business closures and a general reduction in consumer activity. Although quarantines have been lifted in many jurisdictions, certain jurisdictions that have previously lifted quarantines have been required to re-impose them. While these effects are expected to be temporary, the duration of the disruptions to business internationally and the 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 increasing number of individuals infected with COVID‐19 has resulted in a widespread global health crisis that has adversely affected global economies and financial markets 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 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.

On March 24, 2020, the Mexican federal government implemented a decree imposing certain preventive measures aimed at mitigating the impact of COVID‐19. The decree temporarily suspended certain activities relating to physical gatherings and the transit or movement of individuals and was subsequently amended to restrict access and require the closure of the Company’s mines from April 3, 2020. On May 13, 2020, the Mexican government officially confirmed that mining was deemed essential and operations were permitted to restart on May 18, 2020. On May 23, 2020, Mexican government authorized the Company to restart its mining operations, however, there can be no guarantee that the decree will not be amended in the future to impose more severe measures or restrictions or that state governments in those jurisdictions in which the Company’s facilities are located will not pass similar decrees reducing or preventing access to the Company’s facilities, potentially causing disruption or closure of one or more of the Company’s mines.

As a result of the temporary closures of its facilities, the Company experienced loss of production at its facilities during the second and third financial quarters of 2020. In early November 2020, the Company’s three operating mines had returned to normal operations. Worker availability is a challenge but has been gradually improving and is being mitigated by increasing the use of temporary workers and contractors. The Company constructed a Polymerase Chain Reaction ("PCR") laboratory test facilities on site at San Dimas and partnered with test labs at Santa Elena to speed up COVID-19 testing capabilities at its mine sites. 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, as well as pre-screening for virus symptoms remain in effect.

The Company continues to monitor the government health measures and in the areas where our mines operate, currently there are no COVID-19 restrictions 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.

First Majestic Silver Corp. 2021 Third Quarter Report Page 25

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 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, 3021, the Company acquired Jerritt Canyon Canada Ltd, which, through subsidiaries, owns and operates the Jerritt Canyon). There is currently no hearing scheduled or any scheduling order in the matter, and the parties have yet to engage in discovery. At this time the estimated amount cannot be reliably determined.

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.

Primero Tax Rulings

When Primero, the previous owner of San Dimas acquired the San Dimas Mine in August 2010, it had a Silver Purchase Agreement (“Old Stream Agreement”) that required its subsidiary PEM to sell 100% of the silver produced from the San Dimas mine to WPMI, up to 6 million ounces and 50% of silver produced thereafter, at the lower of: (i) the spot market price and (ii) $4.04 per ounce plus an annual increase of 1%.

In order to reflect commercial realities 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

First Majestic Silver Corp. 2021 Third Quarter Report Page 26

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 an Advance Pricing Agreement (“APA”) from the SAT. The APA confirmed that the PEM Realized Price would be used as Primero’s basis for calculating taxes owed by PEM on the silver sold under the Old Stream Agreement. PEM believed that the intent of an APA was to have SAT provide tax certainty and as a result made significant investments in Mexico based on that certainty. On October 4, 2012, PEM received the APA Ruling from SAT which confirmed the appropriate price for sales of silver under the Old Stream Agreement was the PEM Realized Price. Under Mexican tax law, an APA ruling is generally applicable for a five year period and this ruling was made effective for 2010 to 2014.

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

In 2019, the SAT issued reassessments for the 2010 to 2012 tax years in the total amount of $242.2 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 $134.1 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 reassessments based on the market price of silver, denial of the deductibility of interest expense and service fees, SAT technical error related to double counting of taxes, and interest and penalties.

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 have no legal basis and breach international obligations regarding double taxation treaties, and 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 with 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 the Note 18(a)2.

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 has yet to be resolved, and a complaint before Mexico’s Federal Taxpayer Defense Attorney's Office (known as “PRODECON”), which determined that PEM has all legal remedies at its disposal and it has already challenged every SAT ruling, thus the matter must be decided by Mexican Courts. The Company believes that these actions are neither fair nor equitable and are discriminatory against the Company as a foreign investor and amount to a denial of justice under international law, in addition to violating various provisions of the Federal Constitution of the United Mexican States and Mexican domestic law, and Mexican court precedents. As a result, 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 initiated 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 made by the Federal Court 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 reviewed the written reasons and are of the view 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

First Majestic Silver Corp. 2021 Third Quarter Report Page 27

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 amparo 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 commence discussions regarding the procedural rules which govern the NAFTA Proceedings. These rules were finalized upon the issuance by the Tribunal of Procedural Order No. 1 on October 21, 2021.

If the SAT were successful in retroactively nullifying the APA, the SAT may seek to audit and reassess PEM in respect of its sales of silver in connection with the Old Stream Agreement for 2010 through 2014. If the SAT were successful in retroactively nullifying the APA and issuing reassessments, it 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 market prices without any mitigating adjustments, the incremental income tax for the years 2010-2018 would be approximately $223.1 million (4,531 million MXN), before interest or penalties.

Based on the Company’s assessments with third party advisors, the Company believes PEM filed its tax returns compliant with applicable Mexican law and, therefore, 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 material effect on the Company’s business, financial position and results of operations.

La Encantada Tax Re-assessments

In December 2019, as part of the ongoing annual audits of the tax returns of Minera La Encantada S.A. de C.V. (“MLE”), the SAT issued tax assessments for fiscal 2012 and 2013 in the amount of $7.7 million (155.5 million MXN) and $6.2 million (126.6 million MXN), respectively.  The key items relate to a 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 believes MLE’s tax filings were appropriate and its tax filing position is correct, therefore no liability has been recognized in the financial statements. The Company’s legal and financial advisors continue to believe that the Company has filed its tax returns in compliance with applicable Mexican law.           

OTHER FINANCIAL INFORMATION

Share Repurchase Program

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.

During the year ended December 31, 2020, the Company repurchased and cancelled 275,000 common shares for a total consideration of $1.7 million, through a normal course issuer bid in the open market as approved by the Toronto Stock Exchange. No shares were repurchased during the nine months ended September 30, 2021.

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Off-Balance Sheet Arrangements

At September 30, 2021, 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 nine months ended September 30, 2021.

Outstanding Share Data

As at November 2, 2021, the Company has 256,612,414 common shares issued and outstanding.

SUBSEQUENT EVENTS

The following significant events occurred subsequent to September 30, 2021:

Declaration of Quarterly Dividend

On November 3, 2021, the Company's board of directors approved and declared a quarterly common share dividend of $0.0049 per share, payable on and after November 30, 2021, to common shareholders of record at the close of business on November 17, 2021. These dividends were declared subsequent to the quarter end and have not been recognized as distributions to owners during the quarter ended September 30, 2021.

ACCOUNTING POLICIES, JUDGMENTS AND ESTIMATES

Critical Accounting Judgments and Estimates

The preparation of consolidated financial statements in conformity with IFRS as issued by 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 three and nine months ended September 30, 2021, 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, 2020 and the following accounting policies, critical judgments and estimates in applying accounting policies:

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

Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

The amendments in Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) introduce a practical expedient for modifications required by the reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and introduce disclosures that allow users to understand the nature and extent of risks

First Majestic Silver Corp. 2021 Third Quarter Report Page 29

arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity is managing this transition.

The amendments were applied effective January 1, 2021 and did not have a material impact on the Company’s financial statements.

Future Changes in Accounting Policies Not Yet Effective as at September 30, 2021:

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 are applied on or after the first annual reporting period beginning on or after January 1, 2022, with early application permitted. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the Company first applies the amendments. The Company will recognise the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings at the beginning of that earliest period presented. This amendment will impact the Company’s accounting for proceeds from mineral sales prior to reaching commercial production levels intended by management.

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.

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.

Critical Judgments and Estimates

Fair Value Estimates in the Acquisition of Jerritt Canyon

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Company reports provisional amounts for the items for which the accounting is incomplete. These provisional amounts are adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period ends as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable and shall not exceed one year from the acquisition date.

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Classification of current and non-current restricted cash

The Company assesses the classification of the restricted cash between current and non-current based on the following factors:

•an asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the period; and

•it expects to realize the asset within twelve months after the reporting period.

The evaluation was performed based on the available information at the end of the reporting period; if there are changes in the circumstances the Company will reassess the classification.

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”, “Adjusted earnings per share”, “Cash flow per share” 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.

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 measures used by the Company to manage and evaluate operating performance at each of the Company’s operating mining units, and 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.

All-in sustaining cost (“AISC”) is a non-GAAP 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 for the Company’s consolidated operating performance by providing greater visibility, comparability and representation of the total costs associated with producing silver from its current operations.

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

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includes costs required to improve/enhance assets beyond their minimum standard for reliability, environmental or safety requirements.

Consolidated AISC includes total production cash costs 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.

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

(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)	Three Months Ended September 30, 2021
	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Mining cost	$11,746	$7,424	$3,169	$23,391	$45,730
Milling cost	6,187	6,967	4,827	14,128	32,109
Indirect cost	9,628	3,404	2,833	6,784	22,649
Total production cost (A)	$27,561	$17,794	$10,829	$44,304	$100,488
Add: transportation and other selling cost	274	136	88	20	569
Add: smelting and refining cost	223	94	140	16	473
Add: environmental duty and royalties cost	296	100	80	1,013	1,492
Total cash cost (B)	$28,354	$18,124	$11,137	$45,353	$103,022
Workers’ participation	3,346	108	520	—	3,975
General and administrative expenses	—	—	—	—	5,807
Share-based payments	—	—	—	—	3,069
Accretion of decommissioning liabilities	181	79	131	57	710
Sustaining capital expenditures	7,648	2,978	1,361	14,050	26,497
Operating lease payments	92	1,093	744	300	2,609
All-In Sustaining Costs (C)	$39,621	$22,382	$13,893	$59,760	$145,689
Payable silver equivalent ounces produced (D)	3,420,327	1,060,598	909,609	1,920,310	7,310,844
Payable gold equivalent ounces produced (E)	N/A	N/A	N/A	26,145	N/A
Tonnes milled (F)	214,205	234,862	263,645	230,415	943,126
Cash cost per AgEq ounce (B/D)	$8.29	$17.09	$12.25	$23.61	$14.09
AISC per AgEq ounce (C/D)	$11.58	$21.10	$15.28	$31.11	$19.93
Cash cost per AuEq ounce (B/D)	N/A	N/A	N/A	$1,735	N/A
AISC per AuEq ounce (C/E)	N/A	N/A	N/A	$2,286	N/A
Production cost per tonne (A/F)	$128.67	$75.76	$41.08	$192.17	$106.52

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(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)		Three Months Ended September 30, 2020
	San Dimas	Santa Elena	La Encantada	Consolidated
Mining cost	$10,219	$4,536	$2,669	$17,424
Milling cost	4,233	6,847	4,107	15,187
Indirect cost	8,452	3,233	2,646	14,331
Total production cost (A)	$22,905	$14,616	$9,422	$46,943
Add: transportation and other selling cost	348	133	124	662
Add: smelting and refining cost	506	166	279	951
Add: environmental duty and royalties cost	416	142	139	697
Total cash cost (B)	$24,175	$15,057	$9,964	$49,253
Workers’ participation	2,146	51	80	2,276
General and administrative expenses	—	—	—	5,045
Share-based payments	—	—	—	1,703
Accretion of decommissioning liabilities	136	71	116	570
Sustaining capital expenditures	7,047	2,460	1,075	12,735
Operating lease payments	60	192	644	1,187
All-In Sustaining Costs (C)	$33,564	$17,831	$11,879	$72,769
Payable silver equivalent ounces produced (D)	3,124,100	1,089,935	980,303	5,194,338
Tonnes milled (E)	189,918	204,577	261,425	655,920
Cash cost per AgEq ounce (B/D)	$7.74	$13.81	$10.16	$9.48
AISC per AgEq ounce (C/D)	$10.74	$16.36	$12.12	$14.01
Production cost per tonne (A/E)	$120.60	$71.44	$36.04	$71.56

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(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)	Nine Months Ended September 30, 2021
	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Mining cost	$36,038	$21,972	$9,692	$38,209	$105,911
Milling cost	21,097	21,080	13,688	22,254	78,119
Indirect cost	29,459	10,752	8,411	9,834	58,457
Total production cost (A)	$86,594	$53,803	$31,791	$70,298	$242,486
Add: transportation and other selling cost	984	458	324	33	1,958
Add: smelting and refining cost	1,064	358	479	27	1,928
Add: environmental duty and royalties cost	1,092	356	290	1,395	3,133
Total cash cost (B)	$89,734	$54,975	$32,884	$71,753	$249,505
Workers’ participation	9,364	215	758	—	10,338
General and administrative expenses	—	—	—	—	18,802
Share-based payments	—	—	—	—	9,431
Accretion of decommissioning liabilities	541	237	393	323	2,277
Sustaining capital expenditures	26,553	12,122	3,344	18,678	62,277
Operating lease payments	217	1,776	2,078	515	5,712
All-In Sustaining Costs (C)	$126,409	$69,325	$39,457	$91,269	$358,342
Payable silver equivalent ounces produced (D)	9,504,954	3,083,303	2,495,405	3,189,438	18,273,100
Payable gold equivalent ounces produced (E)	N/A	N/A	N/A	44,907	N/A
Tonnes milled (F)	616,053	654,600	735,905	377,026	2,383,584
Cash cost per AgEq ounce (B/D)	$9.44	$17.83	$13.18	$22.41	$13.65
AISC per AgEq ounce (C/D)	$13.30	$22.48	$15.81	$28.53	$19.60
Cash cost per AuEq ounce (B/D)	N/A	N/A	N/A	$1,598	N/A
AISC per AuEq ounce (C/E)	N/A	N/A	N/A	$2,032	N/A
Production cost per tonne (A/E)	$140.56	$82.18	$43.19	$186.46	$101.73

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(expressed in thousands of U.S. Dollars, except ounce and per ounce amounts)	Nine Months Ended September 30, 2020
	San Dimas	Santa Elena	La Encantada	Consolidated
Mining cost	$27,992	$11,491	$6,492	$45,975
Milling cost	13,290	16,879	10,762	40,931
Indirect cost	21,735	7,331	6,630	35,696
Total production cost (A)	$63,018	$35,701	$23,884	$122,603
Add: transportation and other selling cost	791	263	265	1,504
Add: smelting and refining cost	1,133	327	508	1,981
Add: environmental duty and royalties cost	853	298	196	1,345
Total cash cost (B)	$65,795	$36,589	$24,853	$127,433
Workers’ participation	10,560	151	290	11,000
General and administrative expenses	—	—	—	16,250
Share-based payments	—	—	—	6,028
Accretion of decommissioning liabilities	416	217	352	1,739
Sustaining capital expenditures	18,362	6,397	2,814	31,496
Operating lease payments	233	289	1,927	3,325
All-In Sustaining Costs (C)	$95,366	$43,643	$30,236	$197,271
Payable silver equivalent ounces produced (D)	9,188,868	3,276,798	2,417,859	14,883,525.43
Tonnes milled (E)	504,417	472,000	612,204	1,588,621
Cash cost per AgEq ounce (B/D)	$7.16	$11.17	$10.28	$8.56
AISC per AgEq ounce (C/D)	$10.38	$13.32	$12.50	$13.25
Production cost per tonne (A/E)	$124.92	$75.64	$39.01	$77.19

First Majestic Silver Corp. 2021 Third Quarter Report Page 35

Average Realized Silver Price per Ounce

Revenues are presented as the net sum of invoiced revenues related to delivered shipments of silver doré bars and concentrates, including associated metal by-products of gold, 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 following is an analysis of the gross revenues prior to refining and smelting charges, and shows deducted smelting and refining charges to arrive at the net reportable revenue for the period per IFRS. Gross revenues are divided into payable silver equivalent ounces sold to calculate the average realized price per ounce of silver equivalents sold.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Revenues as reported	$124,646	$125,881	$379,241	$246,801
Add back: smelting and refining charges	474	951	1,929	1,981
Gross revenues	125,120	126,832	381,170	248,782
Less: Sandstorm gold revenues	(689)	(802)	(2,028)	(2,056)
Less: Wheaton gold revenues	(7,014)	(5,930)	(20,226)	(16,485)
Gross revenues, excluding Sandstorm, Wheaton (A)	$117,417	$120,100	$358,916	$230,241
Payable silver equivalent ounces sold	6,061,557	6,328,867	16,575,585	14,294,458
Less: Payable silver equivalent ounces sold to Sandstorm	(112,423)	(138,087)	(308,105)	(418,612)
Less: Payable silver equivalent ounces sold to Wheaton	(865,884)	(871,856)	(2,321,765)	(2,209,612)
Payable silver equivalent ounces sold, excluding     Sandstorm and Wheaton (B)	5,083,250	5,318,924	13,945,715	11,666,234
Average realized silver price per ounce (A/B)	$23.10	$22.58	$25.74	$19.74
Average market price per ounce of silver per COMEX	$24.31	$24.35	$25.75	$19.21

Cash Flow per Share

Cash Flow per Share is determined based on operating cash flows before movements in working capital and income taxes, as illustrated in the consolidated statements of cash flow, divided by the weighted average shares outstanding during the period.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Operating Cash Flows before Working Capital and Taxes	$22,605	$52,220	$104,926	$59,119
Weighted average number of shares on issue - basic	256,363,759	214,919,070	240,687,196	211,333,281
Cash Flow per Share	$0.09	$0.24	$0.44	$0.28

First Majestic Silver Corp. 2021 Third Quarter Report Page 36

Adjusted Earnings per Share (“Adjusted EPS”)

The Company uses the financial measure “Adjusted EPS” to supplement information in its 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. The Company excludes certain non-cash and unusual items from net earnings to provide a measure which allows the Company and investors to evaluate the operating results of 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.

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

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Net (loss) earnings as reported	($18,406)	$30,946	($952)	($11,458)
Adjustments for non-cash or unusual items:
Deferred income tax (recovery) expense	(8,073)	9,551	(19,266)	7,863
Share-based payments	3,069	1,703	9,431	6,028
Loss (gain) from investment in derivatives and marketable     securities	5,169	(2,497)	2,298	(4,418)
Write-down on assets held-for-sale	—	—	2,081	—
Write-down (recovery) of mineral inventory	—	—	6,034	(443)
Acquisition costs	127	—	1,950	—
Unrealized (gain) loss on foreign currency derivatives	—	(7,541)	—	4,862
Standby costs related to COVID-19 Suspension	—	—	—	7,162
(Gain) loss on divestiture of exploration projects	—	(6,421)	—	3,685
Adjusted net (loss) earnings	($18,114)	$25,741	$1,576	$13,281
Weighted average number of shares on issue - basic	256,363,759	214,919,070	240,687,196	211,333,281
Adjusted EPS	($0.07)	$0.12	$0.01	$0.06

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.

	September 30, 2021	December 31, 2020
Current Assets	$400,123	$356,046
Less: Current Liabilities	(137,646)	(101,626)
Working Capital	$262,477	$254,420
Available Undrawn Revolving Credit Facility	10,000	65,000
Available Liquidity	$272,477	$319,420

First Majestic Silver Corp. 2021 Third Quarter Report Page 37

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 September 30, 2021, 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 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.

Management excluded from its assessment the internal controls, policies and procedures of Jerritt Canyon, which the Company acquired control on April 30, 2021. Jerritt Canyon’s total assets, net assets, total revenues and net profit/loss on a combined basis constitute approximately 35%, 39%, 21% and 1,906%, respectively, of the condensed interim consolidated financial statement amounts as of September 30, 2021. This limitation of scope is in accordance with section 3.3(1)(b) of NI 52-109, which allows for an issuer to limit the design of DC&P or ICFR to exclude a business that the issuer acquired not more than 365 days before the end of the financial period to which the CEO’s and CFO’s certification of annual filings relates. With the exception of the internal controls of Jerritt Canyon, there have been no significant changes in our internal controls during the quarter ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

First Majestic Silver Corp. 2021 Third Quarter Report Page 38

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.

First Majestic Silver Corp. 2021 Third Quarter Report Page 39

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 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.comor 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, 2020, is available on SEDAR at www.sedar.comand on the Company’s website at www.firstmajestic.com.

First Majestic Silver Corp. 2021 Third Quarter Report Page 40

EX-99.3

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 September 30, 2021.

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 July 1, 2021 and ended on September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date:	November 3, 2021
“Keith Neumeyer”
Keith Neumeyer
Chief Executive Officer

EX-99.4

Exhibit 99.4

Form 52-109F1

Certification of Interim Filings

Full Certificate

I, Raymond Polman, Chief Financial 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 September 30, 2021.

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 July 1, 2021 and ended on September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date:	November 3, 2021
“Raymond Polman”
Raymond Polman
Chief Financial Officer

EX-99.5

NEWS RELEASE

New York - AG	November 4, 2021
Toronto – FR
Frankfurt – FMV

First Majestic Reports Third Quarter Financial Results and Quarterly Dividend Payment

Vancouver, BC, Canada – FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) . (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce the unaudited interim consolidated financial results of the Company for the third quarter ended September 30, 2021. 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.

THIRD QUARTER 2021 HIGHLIGHTS

(compared to Q3 2020)

•Generated revenues of $124.6 million, representing a 1% decrease due to the decision to withhold 1.4 million ounces of silver in inventory in an effort to maximize future profits. Had the Company sold these ounces at the end of the quarter it would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce

•Cash costs increased to $14.09 per AgEq ounce due to the addition of Jerritt Canyon

•All-in sustaining costs (“AISC”) increased to $19.93 per AgEq ounce primarily due to an increase in sustaining capital costs related to the $12.3 million Tailings Storage Facility 2 (“TSF2”) lift project at Jerritt Canyon

•Mine operating earnings of $3.5 million during the quarter, compared to earnings of $48.0 million in Q3 2020, the decrease in earnings was primarily attributed to lower silver ounces sold due to the holdback of 1.4 million ounces of silver along with higher costs attributed to the first full quarter of operations at Jerritt Canyon

•Net earnings of ($18.4) million attributed to the reduction in revenue as a result of withholding 1.4 million ounces of silver from sales at quarter end

•Adjusted EPS of ($0.07) after excluding non-cash and non-recurring items

•Cash flow per share of $0.09 (non-GAAP)

•Cash and cash equivalents at September 30, 2021 were $192.8 million with strong working capital of $262.5 million

•Declared a third quarter cash dividend payment of $0.0049 per common share for shareholders of record as of the close of business on November 17, 2021 which will be distributed on or about November 30, 2021

“Our decision to inventory a significant amount of silver during the quarter obviously impacted our third quarter financial results but those additional revenues and cash flows are expected to be realized in the coming quarters as prices improve,” stated Keith Neumeyer, President and CEO. “During the quarter, we also invested in two

1

significant capital projects at Jerritt Canyon which temporarily increased our all-in sustaining costs at the site. With the majority of these investments now complete, we expect a reduction in costs starting in the fourth quarter driven by higher production, reduced capital costs and continued improvements in operating efficiencies. At San Dimas, AISC costs decreased by 19% to $11.58 per ounce due to higher production and higher consumption rates of low-cost energy from our hydro dam when compared to diesel or grid power. At Santa Elena, the mill is preparing to begin test batching low-grade stockpiles from the Ermitaño deposit which is expected to further drive down costs and increase overall production. Finally, the Company declared its third quarter dividend which was also impacted by the lower quarterly revenues due to the withholding of the 1.4 million unsold ounces of silver, however, the upcoming future quarter dividends are expected to increase as this large inventory is divested.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Key Performance Metrics	2021-Q3	2021-Q2	Change Q3 vs Q2		2020-Q3	Change Q3 vs Q3		2021-YTD
Operational
Ore Processed / Tonnes Milled	943,126	826,213	14	%	655,920	44	%	2,383,584
Silver Ounces Produced	3,302,086	3,274,026	1	%	3,158,866	5	%	9,484,135
Silver Equivalent Ounces Produced	7,319,441	6,435,023	14	%	5,201,085	41	%	18,294,760
Cash Costs per Silver Equivalent Ounce (1)	$14.09	$13.89	1	%	$9.48	49	%	$13.65
All-in Sustaining Cost per Silver Equivalent Ounce (1)	$19.93	$19.42	3	%	$14.01	42	%	$19.60
Total Production Cost per Tonne (1)	$106.52	$104.94	2	%	$71.56	49	%	$101.73
Average Realized Silver Price per Ounce (1)	$23.10	$27.32	(15	%)	$22.58	2	%	$25.74
Financial (in $millions)
Revenues	$124.6	$154.1	(19	%)	$125.9	(1	%)	$379.2
Mine Operating Earnings	$3.5	$29.4	(88	%)	$48.0	(93	%)	$61.1
Net Earnings (Loss)	($18.4)	$15.6	NM		$30.9	NM		($1.0)
Operating Cash Flows before Movements in Working Capital and Taxes	$22.6	$51.2	(56	%)	$52.2	(57	%)	$104.9
Cash and Cash Equivalents	$192.8	$227.1	(15	%)	$232.4	(17	%)	$192.8
Working Capital (1)	$262.5	$276.3	(5	%)	$266.7	(2	%)	$262.5
Shareholders
(Loss) Earnings per Share ("EPS") - Basic	($0.07)	$0.06	NM		$0.14	NM		$0.00
Adjusted EPS (1)	($0.07)	$0.05	NM		$0.12	NM		$0.01
Cash Flow per Share (1)	$0.09	$0.21	(58	%)	$0.24	(64	%)	$0.44

"NM" - Not meaningful

(1)  The Company reports non-GAAP measures which include cash costs per ounce, all-in sustaining cost per ounce, total production cost per ounce, total production cost per tonne, average realized silver price per ounce, 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 and may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" in the Company's MD&A for a reconciliation of non-GAAP to GAAP measures.

Q3 2021 FINANCIAL RESULTS

The Company realized an average silver price of $23.10 per ounce during the third quarter of 2021, representing a 2% increase compared to $22.58 per ounce in the third quarter of 2020.

Revenues generated in the third quarter totaled $124.6 million compared to $125.9 million in the third quarter of 2020. Revenues in the quarter were impacted primarily due to the temporary withholding of 1.4 million ounces of silver, which remained in the inventory at quarter end. Had the Company sold the withheld inventory, the Company would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce.

2

The Company realized mine operating earnings of $3.5 million compared with mine operating earnings of $48.0 million in the third quarter of 2020. The decrease in mine operating earnings was primarily attributed to the decision to withhold 1.4 million silver ounces from sale along with higher costs primarily attributed to the first full quarter of operations of Jerritt Canyon.

Earnings for the quarter was ($18.4) million (EPS of ($0.07)) compared to $30.9 million (EPS of $0.14) in the third quarter of 2020.

Adjusted net earnings for the quarter was ($18.1) million (Adjusted EPS of ($0.07)) compared to $25.7 million (Adjusted EPS of $0.12) in the third quarter of 2020, after excluding non-cash and non-recurring items.

Cash flow from operations before movements in working capital and income taxes in the quarter was $22.6 million ($0.09 per share) compared to operating cash flow from operations of $52.2 million ($0.24 per share) in the third quarter of 2020.

Ended the quarter with $192.8 million in cash and cash equivalents as of September 30, 2021. In addition, the Company has a strong working capital position of $262.5 million and total available liquidity of $272.5 million, including a $10 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 silver and gold mines.

Third Quarter Production Summary	San Dimas	Santa Elena	La Encantada	Jerritt Canyon	Consolidated
Ore Processed / Tonnes Milled	214,205	234,862	263,645	230,415	943,126
Silver Ounces Produced	1,888,371	508,641	905,074	—	3,302,086
Gold Ounces Produced	20,767	7,498	114	26,145	54,525
Silver Equivalent Ounces Produced	3,422,032	1,061,657	913,481	1,922,270	7,319,441
Cash Costs per Silver Equivalent Ounce	$8.29	$17.09	$12.25	N/A	$14.09
All-in Sustaining Cost per Silver Equivalent Ounce	$11.58	$21.10	$15.28	N/A	$19.93
Cash cost per AuEq Ounce	N/A	N/A	N/A	$1,735	N/A
All-In sustaining costs per AuEq Ounce	N/A	N/A	N/A	$2,286	N/A
Total Production Cost per Tonne	$128.67	$75.76	$41.08	$192.17	$106.52

(1) The Company reports non-GAAP measures which include cash costs per ounce, all-in sustaining cost per ounce, total production cost per ounce and total production cost per tonne. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" in the Company's MD&A for a reconciliation of non-GAAP to GAAP measures.

The Company produced 7.3 million silver equivalent ounces consisting of 3.3 million ounces of silver and 54,525 ounces of gold, representing an increase of 1% and 17%, respectively, compared to the previous quarter primarily due to a 39% increase in gold production from the Jerritt Canyon operation in Nevada. In the first nine months of 2021, the Company has produced 9.5 million ounces of silver and 124,942 ounces of gold for total production of 18.3 million silver equivalent ounces, or approximately 69% of the Company’s 2021 guidance midpoint of producing 25.7 to 27.5 million ounces. Furthermore, the Company anticipates achieving its 2021 production guidance due to expected higher grades at San Dimas, Jerritt Canyon and Santa Elena in the fourth quarter.

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COSTS AND CAPITAL EXPENDITURES

Cash cost per ounce for the quarter was $14.09 per AgEq ounce, an increase of 1% from $13.89 per ounce in the previous quarter. The increase in cash cost per AgEq ounce was due to the addition of Jerritt Canyon which was producing at a higher cash cost compared to the previous quarter which was primarily affected by a 14-day planned semi-annual maintenance shutdown of the dual roasters.

AISC in the second quarter was $19.93 per ounce compared to $19.42 per ounce in the previous quarter. The increase in AISC per AgEq ounce was primarily attributed to the TSF2 lift project at Jerritt Canyon. The increase in AISC was partially offset by lower costs at San Dimas and La Encantada as a result of increased rates of production.

Total capital expenditures in the third quarter were $59.7 million, primarily consisting of $22.4 million at Jerritt Canyon, $14.2 million at San Dimas, $15.7 million at Santa Elena (including $9.3 million towards the Ermitaño project), $2.8 million at La Encantada and $4.6 million for strategic projects.

Q3 2021 DIVIDEND ANNOUNCEMENT

The Company is pleased to announce that its Board of Directors has declared a cash dividend payment in the amount of $0.0049 per common share for the third quarter of 2021. The third quarter cash dividend will be paid to holders of record of First Majestic’s common shares as of the close of business on November 17, 2021 and will be distributed on or about November 30, 2021.

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.

FOR FURTHER INFORMATION contactinfo@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

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: the Company’s business strategy; future planning processes; commercial mining operations; cash flow; budgets; the timing and amount of estimated future production; ore grades; recovery rates; mine plans and mine life; integration of operations; future sales and revenue; the future price of silver and other metals; costs of production; costs and timing of development at the Company's projects; commencement of initial batch test processing at the Santa Elena processing plant; capital projects and exploration activities and the possible results thereof; and amount and timing of dividend payments. 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. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking

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statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. 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, 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; actions by national and local governments and agencies; 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; violence and other criminal activities in Mexico; 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..

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