MAG Silver Corp. announces the Company's audited financial results for the year ended December 31, 2009..

Highlights for 2009

- At December 31, 2009, the Company's cash position was $26.8 million. The Company's cash is invested with the Royal Bank of Canada in interest bearing current accounts. The Company has no debt.

- During 2009 the Company made a major moly-gold discovery on its 100% owned Cinco de Mayo property. Cinco de Mayo has "stand-alone" importance to the Company and the exploration model provides additional evidence that a very large CRD (skarn) system may lie at depth nearby. All in all, Cinco de Mayo remains the chief focus of MAG's exploration efforts on its 100% controlled properties.

- A 2010 budget of US $5.9 million has been approved by the Board of Directors of Minera Juanicipio (MAG: 44%; FRES: 56%) of which approximately US $2.6 million represents the Company's 44% share. Planned work on the Juanicipio project will include a 21,400 metre drilling program. The budget was amended in March 2010 to provide for an engineering budget of US$1.5 million required to support a prefeasibility study as proposed in 2009 by Wardrop Engineering. Commencement of the prefeasibility study is subject to the completion of a resource audit update planned for June 2010 whereby at least 50% of the total contained silver can be categorized as an indicated resource. To the end of 2009, almost 47% of the total contained ounces were classified as indicated. A 10 hole program utilizing 4 drills is presently underway on the property.

- In December 2009, the Company approved its own 2010 exploration budget for approximately $9.4 million, of which approximately $7.2 million is earmarked for MAG's wholly owned properties in Mexico, including 30,000 metres of diamond drilling.

- The Company's net loss for the year ended December 31, 2009 was $13.49 million or $0.27 per share as compared to $5.87 million or $0.12 per share for the year ended December 31, 2008. Main factors creating the larger 2009 loss were mineral property costs written off, higher legal fees, lower interest earned for the year and losses on foreign exchange.

- For the year ended December 31, 2009, the Company incurred $2,156,057 (2008: $1,926,488) in property acquisition costs and $14,389,336 (2008: $13,336,644) in exploration expenditures on its wholly-owned properties. The Company also contributed $984,920 (2008: $2,404,671) for its 44% share of costs associated with Minera Juanicipio and incurred a further $230,408 (2008: $118,173) directly to its own account for geological and overview work on the Juanicipio property.

- An updated National Instrument 43-101 compliant resource estimate was completed in March 2009 by Scott Wilson Roscoe Postle Associates Inc. (see Press Release dated March 4, 2009) with respect to the Juanicipio property. The total Indicated Resource for the Valdecanas Vein (including the Hanging Wall Vein) was estimated at 2.95 million tonnes of 879 grams per tonne (g/t) silver, 2.22 g/t gold, 2.39% lead and 4.15% zinc. The total Inferred Resource (Valdecanas, Footwall and Hanging Wall Veins and the Stockwork Zone) was estimated at 7.21 million tonnes of 458 grams g/t silver, 1.54 g/t gold, 1.89% lead and 3.14% zinc. The total contained metals in the Indicated Resource are 83 million ounces of silver, 210,000 ounces of gold, 155 million pounds of lead and 269 million pounds of zinc. The Inferred Resources contain an additional 106 million ounces of silver, 356,000 ounces of gold, 301 million pounds of lead and 498 million pounds of zinc. A National Instrument 43-101 technical report documenting the mineral resource estimate was filed on SEDAR on April 8, 2009.

- On December 1, 2008, the Company was advised that a subsidiary of its joint venture partner, Fresnillo plc, intended to make an unsolicited take-over bid for all of the Company's outstanding common shares not currently held by Fresnillo and its affiliates at an offer price of US$4.54 cash per share. Fresnillo, an insider by virtue of its approximately 19.8% interest in the Company, triggered the requirement for a formal valuation by an independent valuator under the supervision of an independent committee of the Company's board of directors. On February 1, 2009, the Company announced that the valuation had been suspended after the independent committee determined that a proper valuation could not be completed without critical information in the sole possession or control of Fresnillo and which Fresnillo had refused or neglected to provide to MAG or the valuator. On June 18, 2009, in connection with MAG's formal application to the Ontario Securities Commission ("OSC") to compel Fresnillo to produce critical information needed to complete the independent valuation report, the OSC ordered Fresnillo to provide discovery of documents and email records. Within two working days of this order, Fresnillo withdrew its intention to make a hostile bid, obviating the need to comply with the OSC order.