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Silvermex Resources Ltd.

TICKER:  SMR: TSX.V
DESCRIPTION:  Silvermex Resources Ltd. is a Canadian-based resource company focused on advancing economic silver resources to production. Silvermex’s portfolio of advanced stage silver projects in Mexico hosts high-grade, near-surface, potentially bulk-mineable silver deposits. The company has an initial measured and indicated NI 43-101 resource of 32.7 million ozs silver and inferred resources of 9.6 million ozs silver. The company’s flagship project, San Marcial, which includes the newly acquired Rosario silver mine, is located in Sinaloa state, 90 km east of Mazatlan. The project consists of just over 17,750 hectares with upgraded facilities and infrastructure.
WEBSITE:  http://www.silvermexresources.com/s/Home.asp
Corp. Presentation (1/15/10)

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"In an interview on King World News, 'Mr. Gold' Jim Sinclair, spoke of the mortal danger that 'onerous underwriters' pose to a mining exploration company. Since exploration is capital-intensive, a lot of money goes into the ground before any gold/silver comes out. The management has to exchange shares for a loan—generally the only money coming into the explorer—which the underwriter then sells into the marketplace, depressing share price.

Sinclair says, 'The whole play for the companies is to get out of exploration alone, into production in which they can make more money than the day-to-day expenses, and avoid Wall Street financing. . .It would appear that Silvermex Resources, via its Rosario silver/gold/lead/zinc mine and surrounding past-producing properties, along with indications of a significant near-surface ore body, has been handed the opportunity and is developing the strategy by which to fulfill Jim Sinclair's dictum of 'graduating' from an externally financed exploration company, to an internally financed (through production) mid-tier silver producer. And if their near-term strategy, supported by a well-conceived business model is successful, they shouldn't have to 'use a shovel' to get themselves onto the profit side of the ledger.

Sinclair concludes: 'Any junior which has this opportunity, should stop looking towards markets and go for that opportunity. . .if you have to use a shovel!'

. . .The existing Rosario Mill Site is the linchpin in the Silvermex plan to turn itself into a near-term silver producer.

Having in its possession a previously-permitted mill site, which can be reconstructed and put back into production in a relatively short time, is a major reason why management could be able to jumpstart its efforts toward moving into the producer league. . .significantly cutting down the time AND dollars necessary to do so."
- David Smith, The Morgan Report (12/17/09)

"One of the first companies out of the chute in what promises to be a robust December bull market for precious metals is Silvermex Resources, Ltd. or as we might now call it, Hecla Down South. In addition to a star-studded board of directors that now includes former Hecla Exploration Veep Mike Callahan, Silvermex has rearranged itself as a premier mining explorer and near-term producer of precious metals in the Rosario District of Mexico, of Sinaloa State."
- David Bond, SILVERMINERS (12/15/09)

"Silvermex is a silver exploration and development company focused on near-term production in Mexico. The company recently acquired a past-producing mine and associated infrastructure, which is located close to one of its advanced-stage deposits. The company is investigating the feasibility of using the recently acquired facilities to treat ore from its deposit.

The company's flagship past-producing San Marcial silver mine hosts 22 million ounces of silver in the measured, indicated and inferred categories, plus substantial lead and zinc values. The deposit is open in all directions. Silvermex plans to conduct expansion drilling of the deposit, but only after commercial production is achieved.

Silvermex now has a total of 42 million ounces of silver at its various projects giving it a favorable value per ounce compared to its peers. More important than the ounces now in hand is the potential to greatly expand the resources, as well as the prospects for near-term production. The recently expanded management team provides a basis for confidence that the company will achieve its objectives."
- Lawrence Raulston, Resource Opportunities (12/01/09)

"Silvermex offers good value on both a market capitalization per oz and enterprise value per oz basis. It is also one of the lowest market capitalizations and enterprise values of its peer group. Additionally, this company has high leverage to an increase in resource estimates.

The market is currently giving little to no value for the infrastructure or production potential in place at the San Marcial/Rosario Project and very little if any value to the bulk-mineable portion of the deposits held."
- Morgan Report/Silver Investor (11/30/09)

"I went to Mexico three weeks ago to see some silver projects. Anyone who wants to believe there is some sort of shortage of silver has obviously never been to Mexico. There is a lot of silver yet to be mined in Mexico, far more than has been mined to date.

My first visit was to Silvermex (SMR-V). Silvermex has about 40 million ounces of 43-101 silver resource in addition to some gold, lead and zinc resources. It works out to about an ounce of silver per share. That should put some kind of floor under the share price. As it works out right now, investors are buying ounces of silver for less than $.20 an ounce. With near-term production potential, that's pretty cheap.

All of the properties belonging to Silvermex were past producers. They went out of production due to silver prices, not any lack of resources. For anyone who believes the price of silver is going up, Silvermex offers a low price way to buy silver ounces. The company believes they can be in production within 24 months at a capital cost of under $15 million. This is one of the most highly leveraged silver plays in the world."
- Bob Moriarty, 321.gold (08/19/09)

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