Q2-2024 Copper Production of 14.0 million pounds, 2024 Guidance Maintained

$3.6M Quarterly Dividend Paid in Q2-2024, Additional $4.8 M Performance Dividend Declared

Q2-2024 cash cost¹ of $1.96 per pound, Outperforming Guidance

Annual Maintenance Shutdown Completed According to Plan

Amerigo Resources Ltd. (TSX: ARG) (OTCQX: ARREF) is pleased to announce production results for the quarter ended June 30, 2024 from Minera Valle Central, the Company’s 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.

“During the second quarter, Amerigo’s team at MVC completed its planned annual 8-day maintenance shutdown. Despite the non-planned impact of one million pounds of reduced copper production due to the previously reported periods of heavy rains (see Company news releases of June 17, 2024, and June 26, 2024), we have maintained our 2024 production guidance. The impact of the rains was significantly lower than in 2023 because of recently completed risk mitigation projects and MVC’s response plan,” said Aurora Davidson, Amerigo’s President and CEO.

“In addition to its swift operational response to the heavy rains, the MVC team continues to excel in managing and controlling costs. Successfully blunting the headwind of a lower-than-expected quarterly copper production level, we are trending below our guided cash cost. The combination of excellent operational results from MVC and the robust copper prices recorded in the second quarter enabled us to continue strengthening our balance sheet with increased cash and lowered debt. Amerigo’s board of directors has just declared the Company’s first performance dividend, which is Amerigo’s unique way of quickly transferring strong copper price performance to shareholders,” she added.

In Q2-2024, MVC produced 14.0 million pounds (“M lbs”) of copper, with 64% of production coming from fresh tailings. MVC’s plant availability was 94%. Production for the first half of 2024 (“H1-2024”) was 30.0 M lbs, representing 48% of Amerigo’s 2024 copper production guidance of 62.4 M lbs.

Q2-2024 molybdenum production was 0.3 M lbs. H1-2024 molybdenum production of 0.6 M lbs. is in line with Amerigo’s annual molybdenum production guidance of 1.2 M lbs.

Amerigo’s cash cost¹ in Q2-2024 was $1.96 per pound, and H1-2024 normalized cash cost¹ was $1.92/lb, both below the Company’s 2024 cash cost¹ guidance of $2.08/lb. Normalized H1-2024 cash cost¹ excludes $0.04/lb paid to MVC’s supervisors in January 2024 as the signing bonus of a 3-year collective labor agreement.

Amerigo’s quarterly copper price in Q2-2024 was $4.39/lb, compared to $3.95/lb in Q1-2024. The Company’s molybdenum price was $21.11/lb, up from $19.67/lb in Q1-2024.

On June 30, 2024, Amerigo’s cash position was $28.7 million ($12.5 million higher than December 31, 2023), and restricted cash was $4.2 million ($2.1 million lower than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.

On June 30, 2024, MVC’s water reserves were over 10.0 million cubic meters, sufficient to maintain projected historic tailings processing rates for at least eighteen months, the Company’s maximum forecast horizon.

Capital Return Strategy

Since implementing its Capital Return Strategy (the “Strategy”) in September 2021, Amerigo has paid cumulative quarterly dividends of Cdn$0.32 per share ($40.5 million) and used $23.7 million to purchase and cancel 20.1 million of its common shares, a 11.1% reduction in the number of common shares outstanding at the inception of the Strategy.

On July 8, 2024, Amerigo’s board of directors declared the Company’s first Performance Dividend of Cdn$0.04 per share. With the declaration of the Company’s first Performance Dividend, the three legs of the Strategy (quarterly dividends, performance dividends and share buybacks) are now fully deployed. Amerigo’s Performance Dividend is a flexible mechanism with regard to timing, frequency and the amount of capital returned to shareholders. It is ideally suited to return capital to shareholders quickly and is a unique tool to transfer the benefits of solid copper price performance to Amerigo’s shareholders.

Release of Q2-2024 financial results on July 31, 2024

Amerigo will release Q2-2024 financial results at the market open on Wednesday, July 31, 2024.

About Amerigo and MVC

Amerigo is an innovative copper producer with a long-term relationship with Corporación Nacional del Cobre de Chile, 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.