Through the powder metallurgy technique, alloys of the eutectic composition of the Zn-Al system were manufactured (22.3 wt.%Al), reinforced with Ag additions (0.5, 1, 2.5, 5 wt.%), with subsequent annealing heat treatment at three different temperatures; 100, 150 and 200°C for 1 hr. X-ray diffraction, optical microscopy and mechanical tests were performed on the resulting samples. The addition of Ag favors the formation of alpha and beta compounds with Al and Zn respectively, which improves the compressive strength of the alloy. However, with the presence of Ag the hardness is decreased. On the other hand, the application of an annealing heat treatment, shows no significant effect on the evaluated properties of the alloy. The microstructure of the alloys resulted in the presence of very small grains smaller than 1 mm and with rounded morphology.