Korelin Economics Report

MAG Silver Mobilizes to Start Phase 2 Drill Program on Canasil’s La Esperanza Project in Durango and Zacatecas States, Mexico

Canasil Resources Inc. announces that MAG Silver Corp. (TSX: MAG, NYSE-MKT: MVG, “MAG”) has mobilized crews to prepare for the start of the Phase 2 drill program in early October 2012 at Canasil’s La Esperanza silver-zinc-lead project in Durango and Zacatecas States, Mexico. Plans include up to 3,500 metres of diamond drilling to test three silver-lead-zinc veins in the northwest of the project area. This drill program will be part of the CAD$ 1,500,000 exploration expenditures required between September 2012 and September 2013 under the option agreement for MAG to earn a 60% interest in the La Esperanza project.

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