As a result of the continued rise of the Canadian dollar, the Company had a foreign exchange gain of $3.9 million year-todate
and a gain of $1.2 million on the restructuring of debt. The foreign exchange gain effectively recovers the foreign
exchange loss incurred at the 2008 year end; however the company remains exposed to foreign currency fluctuations. The
Company had net and comprehensive earnings of $2.3 million for the quarter (Year to date: $4.3 million) compared to a loss
of $5.1 million for the same quarter last year (YTD: loss $8.5 million). Excluding the extraordinary gains, the profit from
operations was $0.5 million (YTD: loss of $0.7 million) as compared to a loss of $4.2 million (YTD: $7.8 million) in the last
year.
Other Highlights:
The most significant items during the quarter were:
The Company decided to expand mine production with our current mine crew as well as by contract mining of the
Maravillas orebody;
The plant was shut down from September 15th to the 28th to repair the ball mill motor, resulting in a significant
reduction of concentrate production for the month;
Drilling in the Cobriza Zone defined a new mineralized manto with a drill indicated tonnage of approximately 80,000t;
The expansion plan to 1,500t/d continued with modifications to the flotation circuit and installation of new flotation
tanks. Requests for bids were placed for plant design engineering and reconditioning mill components that were
acquired to complete the expansion;
Silvermex Resources carried out due diligence in support of the planned acquisition of the Rosario Project; and
The Company diluted Reyna from a 20% interest in the La Negra mine to approximately 8% (see Change in Corporate
