Fresbal withdraws its proposal to make an offer for the shares of MAG Silver Corp.

    LONDON, TORONTO, and MEXICO CITY, June 22 /CNW/ - Fresnillo plc
("Fresnillo") announces today that its subsidiary Fresbal Investments Ltd.
("Fresbal") has issued an announcement regarding its previously announced
intention to acquire the common shares of MAG Silver Corp (TSX: MAG, AMEX:  
MVG) ("MAG Silver"). The announcement follows below.

                          FRESBAL INVESTMENTS, LTD.
                         Corporativo BAL, Cuarto Piso
                   Moliere 222, Col. Los Morales-Polanco,
                             11540, D.F., México


    After more than six months since announcing, on December 1, 2008, its
intention to make an offer for 100% of MAG Silver Corp.'s ("MAG") (TSX: MAG,
AMEX:   MVG) shares not owned by Fresnillo plc ("Fresnillo") or its affiliates,
Fresnillo today has announced its decision to withdraw such intended offer
(the "Offer") to be made through Fresbal Investment Ltd ("Fresbal") as it is
no longer in the best interests of Fresnillo shareholders.
    Fresnillo's decision reflects the fact that even after this protracted
period of time, it has not been possible to conclude the independent valuation
of MAG required under applicable Canadian securities laws in order to permit
the offer to proceed and it is not clear to Fresnillo when or if this will
    The supervision of the valuation process has been the responsibility of
MAG's Independent Committee which, in its opinion, has not been satisfied with
the level of information that Fresnillo has been willing and able to produce
in order to conclude the valuation, beyond the information regarding the
property jointly held by Fresnillo and MAG. Fresnillo and its advisors have
received the advice of valuation experts such as Paradigm Capital Inc., in its
independent expert's report, and Scotia Capital, as financial advisor to
Fresnillo, that a valuation could be prepared for such purposes with the
information that Fresnillo was willing and able to produce.
    Fresnillo recognizes the efforts of the Ontario Securities Commission
("OSC") in order to expedite the bid process. However, Fresnillo considers
that the document production order as issued by the OSC will require
significant time, effort and money to be expended, without knowing even at
this time (after more than 200 days since the Offer was announced) whether a
valuation will ever be received or the Offer can ever be made.
    These risks to the successful completion of the transaction have resulted
in Fresnillo's decision to withdraw its Offer for MAG immediately. Despite the
withdrawal of the Offer, Fresnillo remains committed to the growth of the
Company, and our growth objectives remain intact.
    Fresnillo highly regrets that it was unable to deliver what would
essentially be a free option to MAG's shareholders for them to evaluate.


    Cautionary Information Regarding Forward-Looking Statements

    Statements about the intentions of Fresnillo plc and Fresbal Investments
Ltd. and all other statements in this release other than historical facts
constitute forward-looking statements. These statements are not guarantees of
future performance and involve risks and uncertainties that are difficult to
predict. The statements are based upon Fresnillo plc's current expectations
and beliefs and are subject to a number of known and unknown risks and
uncertainties that could cause actual results to differ materially from those
described in the forward looking statements. Fresnillo plc disclaims any
obligation to update or revise the information in this news release based on
new information or otherwise, unless otherwise required by law.

For further information:

For further information: please visit or contact:
Fresnillo plc, London Office, Octavio Alvidrez, Head of Investor Relations,
Tel: +44(0)20 7399 2470; Mexico City Office, Gabriela Mayor, Tel: +52555 279
3203; JPMorgan Cazenove, Andrew Wray, Tel: +44 (0)20 7588 2828; Brunswick,
Patrick Handley, Carole Cable, Tel: +44(0)20 7404 5959

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