(TSX Venture Exchange Symbol: MSM)

OVERVIEW

Mexican Silver Mines Ltd. is a company focused on silver exploration in Mexico.

It has acquired 100% of three former silver producing properties that have been mined since the Spanish era but which have seen limited exploration in the past.

Having raised $ 15 million in the last quarter, the Company has the technical, management and financial capability to aggressively undertake extensive exploration of its properties which cover 322,500 acres.

Initial sampling has revealed bonanza type grades, with over 7,000 grams/tonne silver and 30% zinc.

THE COMPANY

The Company is registered as a British Columbia reporting issuer and its shares trade on the TSX Venture Exchange, under the symbol MSM.

Premier Diamond Corp. was the private company that acquired the rights to the Mexican properties. Premier acquired the Company under a reverse take over (RTO) and then took the Company public in May 2007.

SILVER FUNDAMENTALS

The silver market in 2006 turned from a long-term deficit market (investors were net sellers of silver) to a surplus market (investors are net buyers), according to the CPM Group. This was a critical tipping point for trends that have been developing over the last several years.

The last time this happened was in 1979 and silver responded by rising from $ 5.92 in early 1979 to a peak of $ 48.70 in January 1980.

In 2006, the average price of an ounce of silver was $ 11.23 per ounces, up 58% from a year earlier. In spite of sharply higher prices, total demand fell by less than 1%.

The broad categories of silver demand in 2004 were (in millions of ounces): industrial applications (430), jewelry (165) and photography (145). Industrial demand from China and Japan rose by over 10% in each country, while Chinese jewelry demand rose by 16%, according to the Silver Institute.

Supply came primarily from three sources (in millions of ounces): mining (646), government sales (78) and silver scrap (188). Despite a rapid increase in prices since 2001, when silver was below $ 4.50, mining supply has risen by less than 7% since 2001 as there is a several year lead time for silver deposits to become producing mines.

Bill Gates of Microsoft and Warren Buffett of Berkshire Hathaway (the two richest men in the US) are known to be very large investors in silver.

MEXICO AND SILVER

Mexico is the second largest silver producer in the world, with 96.4 million ounces of silver production in 2006.

Northern Mexico, where the Company's properties are located, hosts many of the world's largest carbonate-hosted silver-lead-zinc deposits, most of which have been in production since the 1600s.

Eight of seventeen districts have produced or had resources in excess of 10 million tons, with silver contents of 80 grams to 350 grams per ton and combined lead and zinc of about 10 percent; eight other districts had more than 0.5 million tons of similar grades.

THE ASSETS

Mexican Silver's properties are located within the eastern Cordillera. This means that the properties have seen very little modern exploration, and yet are located on similar geology, potentially even the same veins as some of the major discoveries in the belt.

The properties lie near a major highway system in Northern Mexico, providing year-round access. The properties cover 322,580 acres in the state of Nuevo Leon, contain four historic silver mines and are 100% owned by the Company.

The Company's holdings comprise a historic silver belt unexplored in modern times. They represent very favourable geological setting for the discovery of large manto silver deposits. No drilling has ever been done on any of the properties to date!

In addition, mining on the properties (except in one location) has not exceeded 50 meters, which allows for the possibility of significant results as drilling is undertaken.

There are two belts of intrusives in the area. The northern belt hosts Peñoles' La Cencantada silver mine, which produces 800,000 ounces of silver annually. The Company's properties are in the southern belt.

In Jan 2007, a 43-101 report was prepared by ACA Howe Intl., which recommended a two phase program of exploration and drilling, with a total cost of US$ 890, 700.

EL RAL CONCESSION

El Ral comprises 10,160 acres containing the La Iguana and Guadalupe Mines, with high grades historically. There is good potential to extend ore at the mine and exploration potential within the surrounding areas to discover similar high grade ore bodies.

Initial sampling has returned high values of 5,000 g/t silver, 30% zinc and 25% lead.

The Company is doing detailed surface mapping; assessing historic workings; sampling and trenching and ground geophysics in anticipation of drilling , to begin this summer.

PROVIDENCIA CONCESSION

Providencia hosts 8 former mining operations, including La Blanca and Valecillo, yielding silver, zinc and lead. High grade silver (up to 5,000 g/t) has been mined from near surface working, which represents 'leakage' from a deeper source.

Sampling by the Company at La Blanca has returned 3,000 to 7,000 g/t silver assays from galena. La Blanca has never been drilled and represents a high priority target for drilling.

ANILLO de FUEGO CONCESSION

This comprises 160,020 acres with numerous Ag, Zn and PB occurrences. Mineralisation is localised along the crest of broad anticlines which is a very favourable structural setting.

The Company intends to undertake prospecting, mapping, sampling and trenching work in order to provide target generation for drilling.

BOARD OF DIRECTORS/MANAGEMENT

Feisal Somji, President & Director

Feisal Somji has more than 13 years' experience in the mineral exploration and development business and has been involved in early stage, late stage and mine development projects around the world. Mr. Somji has had experience as an officer and director for several public companies involved in diamond, gold and platinum group element assets in Canada, Mexico, Brazil and Africa.

Mr. Somji holds a Bachelor of Science degree from the University of British Columbia and a Master of Business Administration from Queens University.

Dr. Roger Norwich, Executive Chairman

Dr. Norwich has extensive experience in the exploration business, primarily in the North Sea. He worked for the major American oil producer/explorer Texaco, gaining experience of the Permian Basin. He is also Non-Executive Chairman of Nighthawk Energy plc, an AIM listed energy company. Dr. Norwich Roger is a dual graduate of Manchester University having studied geology in the early 1970s and medicine in the 1980s.

Michael Thomsen, Geological Consultant/Proposed Director

Mr. Thomsen has 30 years of professional experience in the resource sector, working in over 30 countries. He has held senior positions at Newmont Mining, Gold Fields and Freeport-McMoRan, and has played leaderships roles in the discovery of world class mineral deposits and the creation of worldwide exploration programs.

He holds Bachelors and Masters Degrees in Geology from the University of Wisconsin.

Bill Dynes, Director

Mr. Dynes brings 30 years of practical mining, mineral exploration, and corporate managerial experience. Mr. Dynes had integral and direct involvement in the successful discoveries of the Jericho (Tahera Diamond Corporation) and Gaucho Kue (De Beers Canada) diamond deposits in Northern Canada and in the setting up the Diamond Research Center at UBC. Mr Dynes has a Bachelor of Science Honors Degree from the University of British Columbia.

Bob Ashauer, CFO

Bob Ashauer is a Chartered Accountant with more than 15 years of business experience managing high growth companies across several industries. He has completed several debt and equity placements for proceeds in excess of $80 million and the acquisition of several companies. Mr. Ashauer provides his public company regulatory expertise, including compliance with Canadian SOX regulatory requirements. Mr. Ashauer holds a Chartered Accountant designation, a Bachelor of Commerce Degree from the University of Alberta and a Diploma in Business Administration (Finance) from the Northern Alberta Institute of Technology.

Raul Ramirez, Director, VP Operations

Mr. Ramirez brings 15 years of corporate managerial experience working with different companies in Mexico. He also has vast experience in helping international companies establishing operations in Mexico. Mr. Ramirez Raul obtained a degree in Business Management at the Monterrey Institute of Technology and a Certificate Degree in Administration and Management at Harvard Extension School.

A.J.H. (Harry) McGucken, Director

Mr. McGucken has more than 25 years of financial and managerial experience. Since 1985, Mr. McGucken has been involved at both the director and senior level management of a number of mineral exploration and development companies, in both the private and public sectors.

Joe O'Farrell, Director

Mr. O'Farrell has 25 years of corporate experience in the oil and mining industry. He is a former director of Oil Quest Resources plc and currently an Executive Director of Nighthawk Energy plc. He has assisted a number of companies working in conjunction with corporate advisers and brokers in pre- IPO fund raising and project acquisition.

SUMMARY

In summary, Mexican Silver Mines has a large land position with advanced stage projects (more than 11 mines) and blue sky potential.

The properties have never been drilled. Using modern exploration technology creates excellent potential for significant discoveries.

The Company will focus on the advanced stage projects with the aim of defining a viable resource by the end of 2007.

For further information, visit www.MexicanSilverMines.com.