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MAG Silver - Cinco de Mayo Agreement Completed

August 5, 2004

MAG Silver Corp. (TSX-V:MAG) announces, further to the Company's news release of November 19, 2003, MAG has completed the option agreement dated April 5, 2004 between the Company, Lagartos, and Minera Cascabel SA de CV, whereby Lagartos has the option to acquire 100% interest in the Cinco de Mayo property in Mexico. In consideration of this option, the Company has issued 75,000 common shares to Cascabel, which are subject to a four month hold period expiring December 1, 2004. In order to exercise the option, the Company may make cash payments totalling US$1 million (US$100,000 in the first year) and incur exploration expenditures of US$1 million over a five-year period (US$100,000 in the first year). Cascabel will retain a 2.5% net smelter return royalty.

About Cinco de Mayo
Cinco de Mayo is a 2,500 hectare Carbonate Replacement Deposit (CRD) prospect located in north-central Chihuahua along the same major deep crustal break that underlies the important Santa Eulalia, Naica, and San Pedro Corralitos CRD/skarn systems. The potential of this property emerged from 15 years of systematic regional exploration by Dr. Peter Megaw that shows Cinco de Mayo shares many of the key features of the distal parts of Santa Eulalia. The potential for finding a large CRD system is considered to be excellent. Initial geological mapping, sampling and drill target delineation is planned for Cinco de Mayo.

About MAG Silver Corp.
MAG Silver is focussed on exploration targets in the Mexican Silver Belt that are of interest at any conceivable silver price, in districts with known large-scale production.

On behalf of the Board of

"George S. Young"
President, Director

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For further information on behalf of MAG Silver Corp. contact George S. Young
Website: www.magsilver.com
Phone: (604) 630-1399
Toll free: (866) 630-1399

Email: info@magsilver.com
Fax: (604) 484-4710

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

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