1.	NATURE OF OPERATIONS

MAG Silver Corp. (the “Company” or “MAG”) was incorporated on

April 21, 1999

under the Company Act of the Province of British Columbia and its shares were listed on the TSX Venture Exchange on

April 21, 2000

and subsequently moved to a TSX listing on

October 5, 2007.

The Company is an exploration and development company working on mineral properties that it has a direct or indirect interest in, that have either been staked or acquired by way of option agreement. The Company has

not

yet determined whether these mineral properties contain any economically recoverable ore reserves. The Company defers all acquisition, exploration and development costs related to the properties on which it is conducting exploration. The recoverability of these amounts is dependent upon the existence of economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the development of the interests, and future profitable production, or alternatively, upon the Company’s ability to dispose of its interests on a profitable basis.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current stage of exploration of such properties, these procedures do

not

guarantee the Company’s title. Property title

may

be subject to unregistered prior agreements and non-compliance with regulatory requirements.

Address of registered offices of the Company:

2600

–

595

Burrard Street

Vancouver, British Columbia,

Canada

V7X

1L3

Head office and principal place of business:

770

–

800

West Pender Street

Vancouver, British Columbia,

Canada

V6C

2V6