SILVERMEX RESOURCES LTD.: A Low-Priced, Emerging Silver Company

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Silvermex Resources Ltd. Was formed in 2005 and taken public in August of 2006 on the TSX Venture Exchange (TSXV: SMR).* The company’s largest shareholder is Silver Standard Resources Inc. (NASDAQ: SSRI).

Silvermex’s primary objective is to increase shareholder value through the acquisition and development of near-surface, advanced-stage silver deposits in Mexico.* The company holds an impressive 85,000 acres of mineral claims located in Mexico’s most prolific mining production regions.

Silvermex has defined near-surface resources of 42.4 million ounces of silver and 240 million pounds of lead and zinc on its primary projects. Silvermex’s goal is to advance these projects to the prefeasibility stage in 2009.

Silvermex has a very low MCAP valuation per resource ounce of silver, currently trading at only $0.13 per ounce, plus base metals. The company offers superior leverage in increased resources and silver prices.

Silvermex is in the select and rare group of junior silver explorers that have established in-ground silver primary resources. Of this group, Silvermex has the lowest market capitalization at $5.3 million CDN or $4.3 million USD.

Silvermex’s projects are located close to infrastructure within low-risk mining jurisdictions.* The resources are near-surface and are potential low-cost bulk-mineable targets.

To date, Silvermex has raised $9.1 million which translates to some 4.7 ounces of silver delineated for every $1.00 raised or $0.21 per resource ounce owned or under option.* Future financings will fund development of priority projects toward the pre-feasibility stage.

San Marcial

The San Marcial project is located approximately 90 kilometers east of* Mazatlan in the state of Sinaloa Mexico. It is a past-producer with current total resources of 22.4 million ozs of silver. The indicated mineral resource is estimated at 3,756,000 tonnes averaging 149.2 g/t silver; inferred mineral resources are estimated at 3.075,000 tonnes averaging 44.21 g/t silver. The resource also holds 49.4 million* lbs of lead and 90 million lbs of zinc.* Each of these intersections is on or near surface.

This deposit is a near-surface, potential bulk mineable target which is open along a 1.8 km strike length and at depth. Preliminary metallurgical testing demonstrates 90%+ recoveries. San Marcial is under option from Silver Standard Resources Inc. whereby Silvermex has the right to earn-in 100% interest in the project.

La Frazada

The La Frazada project is a past producer located in the state* of Nayarit, Mexico approximately 300 kilometers west of Guadalajara.* The project has extensive underground workings and has a current high grade measured mineral resource of 304,000 t grading 259.6 g/t silver, an indicated Mineral Resources of 279,000 t grading 240.5 g/t silver, and an Inferred Mineral Resource of 534,000 t grading 224.9 g/t silver.

Additional base metal resources of 22 million lbs lead and 62 million lbs zinc in all resource categories offer increased potential for development. The resource is located near surface and is a potential bulk-mineable target.* Past production records indicate positive metallurgy.

Penasco Quermado

Penasco Quermado project is located approx 3 hours south of Phoenix, Arizona in the state of Senora, Mexico.* It is a past open-pit producer with a near surface current resource of 11 million ozs of silver. Recent metallurgical testing demonstrates 78% recoveries in 45 hours by 2 stage leach process.* This project is potentially a low-cost, open-pit target. Thus far, a total of 9.847 meters of core and reverse circulation drilling has been completed at Penasco Quermado. The deposit sits on surface and has a maximum depth of approximately 100 meters.* The near surface and oxidized nature of the mineralization suggest the deposit would have a low strip ratio and be amenable to low cost, bulk tonnage, open pit mining methods.

42.4 million Oz silver resources (NI 43-101)
240 million lbs of lead and zinc (NI 43-101)
1.42 Oz silver resources per share
443% resource growth in last 24 months
High resource return on money raised
The lowest market cap within its peer group
Low MCAP Value per OZ ($0.13 per Oz)
Near-surface, bulk-mineable projects
Proven management in Canada and Mexico
The Company’s objective is to advance its projects toward production. Preliminary economic assessments are scheduled to commence October 1, 2009.

Investors looking for undervalued situations which offer low MCAP valuations on established, in-ground silver resources with superior leveraged exposure to increased resources and silver prices, should consider this company carefully.

Silvermex is a client of Grandich Publications and Peter Grandich participated in its most recent private placement.