NEWS RELEASE.

October 3, 2012: Vancouver, B.C. – MAG Silver Corp. (Stock Profile – TSX:MAG & NYSE MKT:MVG) announces announce that Roscoe Postle Associates Inc. (“RPA”) has completed the first independent mineral resource estimate for the Bridge Zone/Jose Manto on its 100% owned Cinco de Mayo Property in northern Chihuahua, Mexico.

Inferred Mineral Resources are estimated to be 12.45 million tonnes at 132 grams per tonne (“g/t”) ( 3.9 ounces per ton (“opt”)) silver, 0.24 g/t gold, 2.86% lead, and 6.47% zinc (9.33% lead plus zinc).

An economic cut-off grade set at a net smelter return (“NSR”) of US$100 per tonne was applied as the base case for this estimate. No data from recent drill hole CM-12-431 in the newly discovered deep Pegaso Zone (see press release dated July 18, 2012) was used in this estimate.

Sensitivity analysis of the new resource to higher NSR cut-offs reveals significant higher grade portions. This is demonstrated by the $150 NSR cut-off case which gives a total of 9.4 million tonnes of 151 g/t (4.4 opt) silver, 0.26 g/t gold, 3.37% lead, and 7.35% zinc.

“We are pleased, but not surprised, to see a significant resource begin to materialize at the Bridge Zone/Jose Manto” said Dan MacInnis, MAG’s President and CEO. “Combined with Juanicipio, Cinco de Mayo now gives MAG two significant high grade assets. Although we are still in the early stages, Cinco de Mayo is showing very strong potential for an increase to a substantial size. We expect to follow our exploration model and link the Bridge Zone/Jose Manto to the new Pegaso Zone discovery at depth. The 61 metre thick massive sulphide intercept in Pegaso Zone discovery hole CM-12 431, (Press Release July 18, 2012) strongly indicates that there is abundant potential for a much larger resource to emerge at depth.”

To learn more about the results – CLICK HERE.

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