Amerigo Reports Q2-2023 Production Results and Provides MVC Operational Update

Q2-2023 copper production of 13.6 million pounds

MVC currently producing copper using a secondary power source

Q2-2023 cash cost¹ of $2.37 per pound

$4.5 million returned to shareholders in Q2-2023

VANCOUVER, British Columbia, July 12, 2023 -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ("Amerigo" or the "Company") announces production results for the quarter ended June 30, 2023 ("Q2-2023") from Minera Valle Central ("MVC"), the Company's 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars ("USD") unless indicated otherwise.

"MVC's copper production in the second quarter was 13.6 million pounds. As expected, the quarter was impacted by our 8-day annual plant maintenance shutdown but unexpectedly impacted by a full shutdown on June 23, 2023, through the end of the quarter. The extraordinary flooding that severed MVC's connection to Chile's central power grid, causing the shutdown, resulted in 1.3 million pounds of lost copper production in June," said Aurora Davidson, Amerigo's President and CEO.

Ms. Davidson added, "Using additional sources of secured power, on July 6, 2023, MVC began processing fresh tailings from El Teniente and producing 90,000 pounds of copper daily. Repair work to the infrastructure necessary for reconnection to Chile's central power grid is underway, including a revised work program with additional upgrades and repairs to increase safety levels from a similar climatic event. We currently expect fully restored operations at MVC during the last week of July."

In Q2-2023, MVC produced 13.6 million pounds ("M lbs") of copper, with 65% of production coming from fresh tailings. Copper production to the end of May 2023 was trending 4% over guidance. As a result of the lost production due to the climatic event, cumulative production to June 30, 2023 of 30.15 M lbs was 1.5% below guidance. Amerigo's 2023 adjusted copper production guidance of 60.5 M lbs, reflecting the impact of the unexpected shutdown and announced to the market on June 30, 2023, remains in place.

Q2-2023 molybdenum production was 0.3 M lbs. YTD molybdenum production of 0.6 M lbs is 10.3% over guidance. Amerigo's annual molybdenum production guidance remains at 1.0 M lbs.

Amerigo's cash cost¹ in Q2-2023 was $2.37 per pound ("/lb"), higher than in preceding quarters, primarily due to lower production. Before the interruption of operations due to the climatic event, MVC's YTD cash cost¹ was $2.09/lb, below guidance.

Amerigo's quarterly copper price in Q2-2023 was $3.80/lb, compared to $4.02/lb in Q1-2023, and the Company's molybdenum price was $20.76/lb, down from $31.73/lb in Q1-2023.

On June 30, 2023, cash was $31.7 million (a decrease of $6.1 million from December 31, 2022), and restricted cash was $4.2 million (unchanged from December 31, 2022). Outstanding bank debt was $21.0 million, compared to $24.5 million on December 31, 2022.

On June 30, 2023, MVC's water reserves were over 10.0 million cubic meters, compared to 4.7 million cubic meters on March 31, 2023. Water reserves are sufficient to maintain projected Cauquenes processing rates for at least eighteen months, our maximum forecast horizon.

Capital Return Strategy

Amerigo's quarterly dividend remains secure based on the Company's adjusted production guidance, released on June 30, 2023. In Q2-2023, Amerigo returned $3.7 million to shareholders through the Company's seventh consecutive quarterly dividend of Cdn$0.03 per share, and $0.8 million was returned through the purchase of 0.7 million common shares for cancellation through Amerigo's ongoing Normal Course Issuer Bid.

Since the implementation of Amerigo's Capital Return Strategy (the "Strategy") in September 2021, the Company has paid a cumulative dividend of Cdn$0.20 per share ($25.9 million) and used $23.7 million to purchase and cancel 20.1 million of its common shares, an 11.1% reduction in the number of common shares outstanding at the inception of the Strategy.

Release of Q2-2023 financial results on August 2, 2023

Amerigo will release Q2-2023 financial results at the market open on Wednesday, August 2, 2023.

Investor conference call on August 3, 2023

Amerigo's quarterly investor conference call will occur on Thursday, August 3, 2023, at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

Participants can join by visiting https://emportal.ink/3HHL7xU and entering their name and phone number. The conference system will then call the participants and place them instantly into the call.

Alternatively, participants can dial directly to be entered into the call by an Operator. Dial 1-888-664-6392 (Toll-Free North America) and state they wish to participate in the Amerigo Resources Q2-2023 Earnings Call.

About Amerigo and MVC

Amerigo is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile ("Codelco"), the world's largest copper producer.

Amerigo produces copper concentrate and molybdenum concentrate as a by-product at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com; Listing: ARG: TSX.

Non-IFRS Measures

This news release references cash cost and normalized cash cost, performance measures not defined under International Financial Reporting Standards ("IFRS").

Cash cost is a non-IFRS performance measure included in this news release as it is a key performance measure used by management to monitor operating performance, assess corporate performance, and plan and assess the overall effectiveness and efficiency of Amerigo's operations. Non-IFRS performance measures are not standardized under IFRS; therefore, amounts presented may not be comparable to similar financial measures disclosed by other companies. Non-IFRS performance measures should not be considered a substitute for performance measures under IFRS.

Cash cost is a performance measure commonly used in the mining industry. In Amerigo's case, cash cost is the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments, and administration costs net of by-product credits. Cash cost per pound produced is based on pounds of copper produced and is calculated by dividing cash cost by the number of pounds of copper produced.

The Company reconciles non-IFRS performance measures against IFRS measures every quarter when financial results are reported. Reconciliations are included in the Company's quarterly earnings release and its Management's Discussion and Analysis.

Cautionary Note Regarding Forward-Looking Information

This news release contains certain forward-looking information and statements defined in applicable securities laws (collectively called "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions are intended to identify forward-looking statements. These forward-looking statements include but are not limited to, statements concerning:

• the estimated time to complete the work to reconnect MVC to the Chilean central grid and fully restore operations at MVC;
• the extent of the impact on the Company's operations at MVC caused by the unexpected shutdown at the end of Q2-2023;
• forecasted production and operating costs;
• our strategies and objectives;
• our estimates of the availability and quantity of tailings and the quality of our mine plan estimates;
• the sufficiency of MVC's water reserves to maintain projected Cauquenes tonnage processing for a period of at least 18 months;
• prices and price volatility for copper, molybdenum and other commodities and materials we use in our operations;
• the demand for and supply of copper, molybdenum and other commodities and materials that we produce, sell and use;
• sensitivity of our financial results and share price to changes in commodity prices;
• our financial resources and financial condition and our expected ability to redeploy other tools of our capital return strategy;
• interest and other expenses;
• domestic and foreign laws affecting our operations;
• our tax position and the tax rates applicable to us;
• our ability to comply with our loan covenants;
• the production capacity of our operations, our planned production levels and future production;
• potential impact of production and transportation disruptions;
• hazards inherent in the mining industry causing personal injury or loss of life, severe damage to or destruction of property and equipment, pollution or environmental damage, claims by third parties and suspension of operations
• estimates of asset retirement obligations and other costs related to environmental protection;
• our future capital and production costs, including the costs and potential impact of complying with existing and proposed environmental laws and regulations in the operation and closure of our operations;
• repudiation, nullification, modification or renegotiation of contracts;
• our financial and operating objectives;
• our environmental, health and safety initiatives;
• the outcome of legal proceedings and other disputes in which we may be involved;
• the outcome of negotiations concerning metal sales, treatment charges and royalties;
• disruptions to the Company's information technology systems, including those related to cybersecurity;
• our dividend policy, including the potential deployment of performance dividends in 2023; and
• general business and economic conditions, including, but not limited to, our assessment of strong market fundamentals supporting copper prices.
  

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems (including, but not limited to, the condition of the land on the banks of the Cachapoal river in the vicinity of where the new power towers are to be installed), adverse weather conditions (including, but not limited to, continued extreme rainfall and unseasonal temperatures that could delay the completion of the repairs to the damaged power towers), process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; risks related to the potential impact of global or national health concerns, including COVID-19, and the inability of employees to access sufficient healthcare; government or regulatory actions or inactions; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco's Division El Teniente's current production and historic tailings from tailings deposit; the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; risks associated with supply chain disruptions; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of these risks and uncertainties apply to the Company and its operations and Codelco and its operations. Codelco's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production. Therefore, these risks and uncertainties may also affect their operations and have a material effect on the Company.

Actual results and developments will likely differ materially from those expressed or implied by the forward-looking statements in this news release. Such statements are based on several assumptions which may prove to be incorrect, including, but not limited to, assumptions about;

• general business and economic conditions;
• interest and currency exchange rates;
• changes in commodity and power prices;
• acts of foreign governments and the outcome of legal proceedings;
• the supply and demand for, deliveries of, and the level and volatility of prices of copper, molybdenum and other commodities and products used in our operations;
• the ongoing supply of material for processing from Codelco's current mining operations;
• the continued availability of secondary sources of power until MVC is reconnected to the Chilean central power grid;
• the grade and projected recoveries of tailings processed by MVC;
• the ability of the Company to profitably extract and process material from the Cauquenes tailings deposit;
• the timing of the receipt of and retention of permits and other regulatory and governmental approvals;
• our costs of production and our production and productivity levels, as well as those of our competitors;
• changes in credit market conditions and conditions in financial markets generally;
• our ability to procure equipment and operating supplies in sufficient quantities and on a timely basis;
• the availability of qualified employees and contractors for our operations;
• our ability to attract and retain skilled staff;
• the satisfactory negotiation of collective agreements with unionized employees;
• the impact of changes in foreign exchange rates and capital repatriation on our costs and results;
• engineering and construction timetables and capital costs for our expansion projects;
• costs of closure of various operations;
• market competition;
• tax benefits and tax rates;
• the outcome of our copper concentrate sales and treatment and refining charge negotiations;
• the resolution of environmental and other proceedings or disputes;
• the future supply of reasonably priced power;
• rainfall in the vicinity of MVC continuing to trend towards normal levels;
• average recoveries for fresh tailings and Cauquenes tailings;
• our ability to obtain, comply with and renew permits and licenses in a timely manner; and
• our ongoing relations with our employees and entities we do business with.

Future production levels and cost estimates assume no adverse mining or other events significantly affecting budgeted production levels.

Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements.

The preceding list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our results to differ materially from those estimated, projected, and expressed in or implied by our forward-looking statements. You should also consider the matters discussed under Risk Factors in the Company`s Annual Information Form. The forward-looking statements contained herein speak only as of the date of this news release. Except as required by law, we undertake no obligation to publicly or otherwise revise any forward-looking statements or the preceding list of factors, whether due to new information or future events.