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MAG Silver Mobilizes Drilling at Lagartos and Provides Exploration Update

August 30, 2004

MAG Silver Corp.(TSX-V:MAG) announces that it has begun a 1500 metre, Stage 1 drilling program at its Lagartos Project, 30 kilometres northwest of the Fresnillo District, Zacatecas, Mexico along the famous Fresnillo Trend. Drill targets are in areas of near-complete sediment cover flanking a rhyolite flow-dome affected by advanced argillic alteration and pervasive silicification. Drilling will test coincident NSAMT geophysical, soil geochemical, and SWIR-detected (Short-Wave Infra-Red) mineralogical anomalies.

Because MAG's Phase 1 drilling at Juanicipio, described below, cut higher gold grades than are typically encountered in the district, MAG performed an extensive re-assessment in late 2003 of the zoning of the Fresnillo system. This interpretation led to the conclusion that the known part of the Fresnillo District may be only a small portion of a mega-district. The Lagartos NW and SE Claims were filed to cover the ground along a major regional structure that links the billion-ounce Zacatecas and Fresnillo districts (See Press Release of January 21, 2004). MAG's NW Lagartos claims, which are the focus of the drilling announced today, cover a nearly contiguous area of ground stretching 30 kilometres on trend from the site of its previous high grade drill interceptions at Juanicipio. Although much of this ground is sediment covered, MAG is currently applying the exploration tools it developed and successfully used at Juanicipio to test a series of regional targets developed over the last year in the Lagartos Claims. Those tools include NSAMT geophysics, which have yielded similar signatures in the NW Lagartos claims over 23 kilometres along trend, to those that identified the structures at Juanicipio and helped pinpoint the successful drilling in 2003.

The drill campaign at Lagartos forms a part of the $2,000,000 exploration program for 2004 previously approved by the MAG board of directors, which will also include drilling later in the fall at the Batopilas project.

Exploration Update
MAG is also pleased to provide below an update on activity on each of its six projects in Mexico. Since inception in 2003, MAG has maintained a focus on projects in proven silver districts with potential in any conceivable silver-gold market.

Juanicipio Project, Zacatecas District, Mexico: The planned 1500 metre Phase 2 drilling program at Juanicipio has been completed and assays are pending. MAG's Phase 1 drilling verified that the mineralization common in the adjacent Fresnillo Mine continues into Juanicipio from the historic mining areas on at least four structures. Phase 2 targeted a structural intersection 800 metres west of the zone of Phase 1 intercepts including a structure not reached in Phase 1 due to drilling problems. No offset drilling of mineralized veins cut in Phase 1 was included in phase 2. MAG believes the extent of the results in Phase 1, undertaken in 2003, provide substantial proof of its exploration concept.

Don Fippi Project, Batopilas District, Chihuahua: An orientation underground and surface-based NSAMT and 3-axis UTM survey to seek conductive Batopilas-style native silver mineralization has been completed. Results are presently being combined with detailed geologic studies, and with a number of coincident structural and geophysical anomalies already identified for drilling. The permitting process has been initiated to begin Phase 1 drilling in late October.

Sierra Ramirez Property, Durango State: Reconnaissance examination of the Sierra Ramirez district was initiated in early May. Exploration is focusing on determining the overall mineralization controls and zoning to define targets for drilling in the fourth quarter of 2004 or first quarter of 2005. To this end, samples have been taken from over 200 old mines, prospects, and mineralized outcrops to evaluate district-scale metals ratio zoning patterns. Assay results show a wide range of metals values across the district and the geographic ratio patterns are currently being evaluated. Table 1 below shows a selection of sampling results that strongly confirm the historic production values reported from the district and reflect the high grades anticipated in target mineralization in the district.

Adargas District, Jimenez, Chihuahua: Drilling of a 4-hole, 1600 metre program to follow a chimney orebody to depth below historic high-grade oxide stopes has been completed and assays received. Strong skarn and associated galena-sphalerite-pyrite dominated massive sulfide mineralization were cut in the first 2 holes and strong skarn, with minor sulfides was cut in the last 2 holes. Down-hole UTM geophysics indicates a conductive anomaly off the first two holes. Despite the presence of strong skarn and sulfide mineralization with good Pb and Zn values (the best intercept was 1.2 metre grading 300 ppb Au, 55 ppm Ag, 9.0% Pb and 5.8% Zn), the silver values are significantly lower than historic production records and underground sampling indicate are present in the system. [Pre-1924 production from Adargas was approximately 350,000 T of oxide ores grading 9-27 g/T (.25-.9 oz/T) Au, 1000 g/T (34 oz/T) Ag, and 24-36% Pb].

Cinco de Mayo Project, Benito Juarez District, Chihuahua State: Existing detailed geologic mapping and geochemical sampling are being used to guide design of a geophysical survey over covered areas adjoining outcropping mineralization. The immediate goal is to develop targets for drilling in the fourth quarter of 2004.

Guigui Project, Santa Eulalia District, Chihuahua: In light of the re-opening of the San Antonio Mine in the eastern part of the Santa Eulalia District by Grupo Mexico (Mexico's largest mining company), MAG is reexamining the results of its Phase 1 drill holes placed 1200 metres south of the mine along the same mineralized structure. MAG completed Phase 1 drilling in early 2004 and followed with a 3-Axis Bore-Hole UTM survey. Holes 5 and 6 both cut 40-100 metre-wide breccias laced with Ag-Pb-Zn sulfide stringers and the BHUTM survey indicated a conductive anomaly adjacent to the drill holes. Table 2 presents selected assay results recently returned for Holes 5 and 6.

About MAG's Projects

Juanicipio lies 5 kilometres from the principal production headframe of the Fresnillo Mine, and less than 3 kilometres from its westernmost underground workings. Industrias Peñoles currently produce over 31 million ounces of silver annually from high-grade (23 oz/T Ag plus up to 0.1 oz/T Au) veins. Production since 1560 is around 800 million ounces of silver, with half of this coming since 1976 when the high-grade Santo Nino style veins currently being mined were found. Recent exploration by Peñoles has focused on tracing veins discovered in the last 6 years westward from the historic mining centre towards Juanicipio.

The Don Fippi project area covers approximately 4,800 hectares centered on the historic Batopilas District located deep within the famous Copper Canyon country of southwestern Chihuahua State. Batopilas produced an estimated 200 to 300 million ounces of silver between 1660 and 1913 from bodies of very high grade crystalline native silver irregularly distributed along a series of NE and NW-trending structures. Batopilas ore grades range from the 1880-1913 average direct-smelting grade of 8,000 g/T (257 oz/T) to high-grade ores of up to 75% Ag. Significant tonnages of milling ore grading 265 g/T (8.5 oz/T) were also produced. Historically, Batopilas exploration was "stope and hope" with new bonanza grades encountered along structural breaks. MAG is applying modern geological and geophysical exploration techniques to predict and locate potential new high-grade ore shoots.

The Sierra Ramirez District lies in extreme eastern Durango State, approximately 80 kilometres west of the Western Silver's Peñasquito Property in the famous Providencia-Concepcion del Oro, Zacatecas District. Sierra Ramirez is a typical Mexican Carbonate Replacement Deposit (CRD) that produced an estimated 750,000-1,000,000 tons of very high-grade (1000-3000 g/T Ag) Ag-Pb-Zn ores from Spanish Colonial times until the mid 1960s. Until recently, the land status was high fractionated, but MAG has acquired over 80% of the district by option from Minera Rio Tinto of Chihuahua, Mexico.

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 the Santa Eulalia and other important CRD systems. The potential for finding a large CRD at Cinco de Mayo is considered excellent.

The Guigui property lies in the Santa Eulalia Mining District, 22 kilometres east of Chihuahua City, Chihuahua. The District has produced over 450 million ounces of high-grade silver and substantial amounts of lead and zinc over the nearly 300-year period from 1702-2001. The extension of the two major mineralized zones in the system (the West Camp and the San Antonio Mine) are the primary exploration targets at Guigui.

Qualified Person and Quality Assurance and Control

Dr. Peter Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined in National Instrument 43-101, for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focussed on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent as he is a MAG Silver shareholder and a vendor of two projects, other than Juanicipio, whereby he may receive additional shares.

Readers are referred to the qualifying report dated November 19, 2002 by Pincock, Allen and Holt, Qualified Person, available at www.magsilver.com for background information on the projects and the programs underway.

About MAG Silver Corp.

MAG Silver, based in Vancouver Canada, 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

                               TABLE 1:  
                        SAMPLE    Ag    Pb    Zn
                        Number   g/T     %     %
                        33533   3650   8.5   0.2
                        33584   2640   3.5   0.3
                        33544   1980   3.0   1.0
                        33522    991  19.4   4.6
                        33578    862  15.0   9.7
                        33543    839   1.0   0.3
                        33539    822   0.2   0.3
                        33563    793   3.4   0.3
                        33550    659  12.3   3.5
                        33542    609   8.9   1.4
                        33609    566   3.0   0.3
                        33601    555  10.7   4.7
                        33551    543   1.6   0.2
                        33552    543   3.0   0.5
                        33587    538   7.9   4.0
                        33585    421   1.8   4.7
                        33581    415   2.6   4.3
                        33537    397   0.2   0.1
                        33546    395  12.8  19.7
                        33555    392   3.6  11.7
                        33593    316   2.6   0.2
                        33605    316   6.4   0.1
                        33613    316   7.6   1.2
                        33603    315   2.2   0.3
                        33548    310  10.0   9.0
                        33602    305   1.8   0.0
                        33577    302   3.2   4.6

HOLE     FROM     TO    INTER.   REC    Au    Ag     Ag      Pb      Zn
                        metres     %   ppb   ppm   oz/T     ppm     ppm
GG0405  244.00  244.40   0.40     98   560   109    3.5   56000   43000
GG0405  362.80  364.00   1.20    100          13    0.4    1290    2720
GG0405  407.90  418.20  10.30    100          24    0.8    1492    4898
GG0405  426.35  427.80   1.45     97          27    0.9    8100    5800
GG0405  480.60  483.15   2.55    100          16    0.5    2280    9351
GG0405  532.60  546.55     14     97           7    0.2     960    1409
GG0405  599     601         2    100           7    0.2    1226    1830
GG0405  606.80  610.90      4    100           3    0.1     171    7795
GG0405  615.05  618.00      3     95           3    0.1     319    3747
GG0405  675.55  678.95   3.40    100          13    0.4     271    1239
GG0405  759.00  762.75   1.85     82          29    0.9     212     254
GG0405  769.30  770.10   0.80    100   558    90    2.9      85    1034
GG0405  788.60  789.15   0.55    100          13    0.4    3830    2690
GG0406  433.85  434.75   0.90    100          23    0.7     208     387
GG0406  441.70  448.95   7.25    100           9    0.3     716    3751
GG0406  454.95  455.95   1.00    100           7    0.2    2760    4500
GG0406  462.45  464.70   2.25    100           3    0.1     489     969
GG0406  498.90  511.90  13.00     99          98    3.1     432     801
GG0406  501.95  510.25   8.30     97         131    4.2     569    1031

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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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