VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2012) - MAG Silver Corp. (TSX:MAG)(NYSE MKT:MVG)(NYSE Amex:MVG) ("MAG") is pleased to announce that exploration drill hole CM12-431 has intersected four distinct, closely spaced zones of massive sulphides ranging from 3.1 metres to 61.6 metres in thickness (See Diagram 1 and Table 1). These new discovery intercepts were drilled approximately 225 metres beneath the strongest mineralization previously drilled in the "Jose Manto-Bridge Zone" and show all of the hallmarks of the near-source part of the Carbonate Replacement Deposit ("CRD") system that MAG has been systematically seeking at Cinco de Mayo. The mineralization in the upper intercept of Hole CM12-431 is likely connected to the 4 kilometre long Bridge Zone-Jose Manto where high grade mineralization of lead, zinc and silver has previously been drilled.

To view Diagrams 1-3 associated with this release, please visit the following link: http://media3.marketwire.com/docs/mag718i.pdf.

"This is a real victory for our systematic exploration methodology and we are very pleased to deliver another discovery of this magnitude to our shareholders, this time 100% owned. Hole 431 has cut by far the strongest mineralization yet seen at Cinco de Mayo," said Dan MacInnis, MAG Silver President and CEO. "The size and geological characteristics we see are the kind of major mineralization centre/source we have long expected at Cinco de Mayo, and it is open in all directions."

The shallower high grade silver, lead and zinc mineralization of the 4,000 metre long combined Bridge Zone-Jose Manto is also growing rapidly through systematic delineation drilling. New assay results from drilling at the Bridge Zone-Jose Manto are in process and planned for release by the Company shortly. An initial resource estimate and NI 43-101 Technical Report for Cinco de Mayo are currently in process and will include all drill holes completed to date.

Details

The principal new mineralized intercepts in Hole CM12-431 start at 730 metres down hole. The thickest intercept, called the Pegaso Zone, begins at 927 metres down hole and for 61.6 metres grades 89 grams per tonne ("g/t") (2.6 ounces per ton ("opt")) silver, 0.78 g/t gold, 0.13% copper with 2.1% lead and 7.3% zinc; including: 31.9 metres that grades 117 g/t (3.4 opt) silver, 1.13 g/t gold, 0.16% copper with 2.7% lead and 9.3% zinc. Three additional intercepts (See Table 1) ranging from 3.12 to 20.15 metres thick lie above this, between 817 and 900 metres depth. The best is the 10 metre intercept (817.22 - 827.22 metres down hole) which returned 1.38 g/t gold, 139 g/t (4.1 opt) silver, 0.11% copper, 2.62% lead and 11.8% zinc. The gold and copper grades in all four intercepts are the highest and most consistent yet encountered on the project. Significantly, broad zones of coarse marble and pervasive tungsten-bearing garnet skarn occur above, between and below the massive sulphide zones, indicating a very large scale system has been located.