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Dec 21, 2007
MAG Silver & Peñoles Announce the Formation of Minera Juanicipio S.A. DE C.V.


Vancouver, B.C....MAG Silver Corp. (TSX: MAG) (AMEX: MVG) ("MAG") and Industrias Peñoles S.A.B. DE C.V. ("Peñoles") are pleased to announce that "Minera Juanicipio S.A. DE C.V." (Minera Juanicipio) has been incorporated in Mexico as the legal entity to operate the Juanicipio Joint Venture. The shareholders of the company are: Industrias Peñoles S.A.B. DE C.V. which will hold a 56% interest in Minera Juanicipio; and MAG Silver Corp. which will hold a 44% interest in Minera Juanicipio through its wholly owned subsidiary Minera Los Lagartos S.A. DE C.V. Peñoles and MAG are now participating in the project as joint partners and will fund expenditures on a pro rata basis, with Peñoles contributing 56% and MAG 44% respectively. Peñoles maintains its position as operator of the project and will present annual exploration and development programs to the board of Minera Juanicipio for joint approval going forward.

About the Joint Venture
The roughly 8,000 hectare Juanicipio property is located in Zacatecas State, Mexico just outside the mining town of Fresnillo. The Fresnillo mine area has been in continuous production since the 1500's and today is host to the worlds' largest producing silver mine operated by Peñoles. The Peñoles/MAG Juanicipio Joint Venture lies 5 kilometres west from the principal production head-frame of the Fresnillo Mine and 1.5 kilometres west from the Saucito Vein, currently undergoing preproduction development with construction of a 600 metre shaft and a 2,200 metre decline.

About Peñoles (www.penoles.com.mx)
Industrias Peñoles S.A.B. DE C.V. and its subsidiaries make up one of Mexico's largest industrial conglomerates. Since its founding in 1887, this group has been engaged in the sustainable exploitation of non-renewable natural resources. Peñoles is an integral part of Grupo BAL, a private, diversified group made up of independent Mexican companies ranging from mining to insurance to retail. Peñoles' productive operations are currently located in Mexico, where it operates the world's richest silver mine (Fresnillo), the world's fourth largest metallurgical complex in terms of the value of its production, and the largest sodium sulphate plant in the world. These operations make Peñoles the world's largest producer of refined silver, metallic bismuth and sodium sulphate, and a leader in Latin America in refined gold, lead and zinc.

About MAG Silver Corp.

MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG and its partner Peñoles are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on AMEX under the symbol MVG.

On behalf of the Board of
MAG SILVER CORP.

"Dan MacInnis"
President and CEO


For further information on behalf of MAG Silver Corp.
Contact Gordon Neal, VP Corp. Development
Website: www.magsilver.com
Phone: (604) 630-1399
Toll free: (886) 630-1399
Email: info@magsilver.com
Fax: (604) 484-4710

For further information on behalf of Industrias Peñoles, S.A. DE C.V.
Contact Emilio Fandiño, Investor Relations
Website: www.penoles.com.mx
Phone: 52 (55) 5279 3250
Email: Emilio_Fandino@penoles.com.mx
Fax: 52 (55) 5279 3217

Neither the TSX Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments that MAG expects, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html


You can view the Next News Releases item: Mon Jan 21, 2008, MAG Announces Approval of Shareholder Rights Plan You can view the Previous News Releases item: Thu Dec 20, 2007, MAG Silver & Peñoles Valdecañas Vein Update: Drilling Begins on Juanicipio Vein
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