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The Mexico Fund, Inc. Announces Stockholder Approval of New Investment Advisory Agreement

WASHINGTON, DC -- (Marketwired) -- 03/21/14 -- The Mexico Fund, Inc. (NYSE: MXF) announced today that its stockholders approved a new investment advisory agreement (the "New Agreement") between the Fund and Impulsora del Fondo México, S.C., the Fund's investment adviser ("Investment Adviser") since the Fund's inception in 1981.

Under the terms of the New Agreement, which will become effective on April 1, 2014, the breakpoints in the current advisory fee will be modified and a new incentive performance fee will be implemented, as described further below:

i) The breakpoints in the current advisory fee will be modified so that the Fund will pay the Investment Adviser 0.80% of the average daily value of the Fund's net assets on assets in excess of $400 million, 0.70% on the excess of average daily net assets above $600 million up to $800 million and 0.60% on average daily net assets above $800 million (the "New Base Fee"). The New Base Fee represents an increase in the advisory fee when Fund assets are above $400 million, as currently the Fund pays the Investment Adviser 0.60% of the average daily value of the Fund's net assets on assets in excess of $400 million. As of March 19, 2014, the net assets of the Fund were $383.05 million.

ii) The new incentive performance fee will be assessed based on the performance of the Fund in comparison to the Morgan Stanley Capital International Mexico Index ("MSCI Mexico Index"). A performance adjustment factor will be applied that will either increase or decrease the New Base Fee, depending on how the Fund's net asset value per share ("NAV") performs relative to the MSCI Mexico Index over a trailing 12-month period. The performance adjustment factor will be applied each day a daily fee is calculated; it will be applied to the average net assets of the Fund over the trailing 12-month period. The resulting dollar figure will be added to or subtracted from the New Base Fee depending on whether the Fund experienced better or worse performance than the MSCI Mexico Index. If the investment performance of the Fund exceeds the investment record of the MSCI Mexico Index by 2 percentage points or more, the performance adjustment will increase the New Base Fee by 0.025% for every percentage point of outperformance. If the investment performance of the Fund trails the investment record of the MSCI Mexico Index by 2 percentage points or more, the performance adjustment will decrease the New Base Fee by 0.025% for every percentage point of underperformance. The maximum amount of the performance adjustment in either direction is 0.20%, if the difference between the investment performance of the Fund and the investment record of the MSCI Mexico Index is 10 percentage points or more.

Performance adjustments under the New Agreement are expected to begin on or about April 1, 2015 based upon the Fund's performance during the 12 months ending March 31, 2015. From April 1, 2014 (the effective date of the New Agreement) until that date, the Fund will pay the New Base Fee to the Adviser.

The Investment Adviser will continue to manage the affairs of the Fund in a manner that is substantially identical to the investment program provided under the Current Agreement. Except with respect to the advisory fee, the terms of the New Agreement are substantially similar to those of the current agreement.

A definitive proxy statement describing in further detail the terms of the New Agreement, which was filed with the U.S. Securities and Exchange Commission on January 13, 2014, is available on the Fund's website at www.themexicofund.com.

For further information, contact the Fund's Investor Relations office at 011-52-55-5282-8900, or by email at [email protected].

The Mexico Fund, Inc. is a non-diversified closed-end management investment company with the investment objective of long-term capital appreciation through investments in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund provides a vehicle to investors who wish to invest in Mexican companies through a managed non-diversified portfolio as part of their overall investment program.

This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund's current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the risks and uncertainties described in the Fund's filings with the Securities and Exchange Commission. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Fund undertakes no obligation to release publicly any revisions to these forward looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by The Mexico Fund or any other person that the events or circumstances described in such statement are material.

CONTACT:
Eduardo Solano
The Mexico Fund, Inc.
011-52-55-5282-8900

CONTACT:
Patricia Baronowski
Pristine Advisers, LLC
(631) 756-2486

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