Q3-2023 copper production of 11.1 million pounds *

Q3-2023 cash cost¹ of $2.44 per pound *

$3.7 million returned to shareholders in Q3-2023

MVC resumed full production on September 21, 2023

*Results impacted by the temporary impact of historic flooding

Amerigo Resources Ltd. (TSX: ARG) (OTCQX: ARREF) announces production results for the quarter ended September 30, 2023 (“Q3-2023”) 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.

“MVC’s copper production in the third quarter of 2023 was 11.1 million pounds, aligned with our revised guidance published on September 11, 2023. This revised guidance reflected the impact of severe rain in central Chile, which affected the production of historic tailings in two separate events,” said Aurora Davidson, Amerigo’s President and CEO.

Ms. Davidson added, “MVC’s operations were back to normal before the end of September, and we now expect Q4-2023 copper production to exceed the 16.6 million pounds produced during Q4-2022.”

In Q3-2023, MVC produced 11.1 million pounds of copper, with 74% of production coming from fresh tailings. Amerigo’s total 2023 copper production is expected to exceed the revised annual guidance of 57.8 M lbs announced to the market on September 11, 2023. This revised annual guidance incorporated the severe rains’ impact on MVC’s Q2-2023 and Q3-2023 copper production.

Q3-2023 molybdenum production was 0.2 M lbs. YTD molybdenum production of 0.8 M lbs is 3% over guidance. Amerigo’s annual molybdenum production guidance has been revised upwards from 1.0 M lbs to 1.1 M lbs.

Amerigo’s cash cost¹ in Q3-2023 was $2.44 per pound, primarily due to temporarily reduced production levels.

Amerigo’s quarterly copper price in Q3-2023 was $3.76/lb, compared to $3.80/lb in Q2-2023, and the Company’s molybdenum price was $23.31/lb, up from $20.76/lb in Q2-2023.

On September 30, 2023, Amerigo’s cash position was $13.1 million (a decrease of $24.7 million from December 31, 2022), and restricted cash was $6.3 million (an increase of $2.1 million from December 31, 2022). Outstanding bank debt was $21.0 million, compared to $24.5 million on December 31, 2022.

On September 30, 2023, MVC’s water reserves were over 10.0 million cubic meters, 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 revised 2023 production guidance, released on September 11, 2023, and the Company’s copper price outlook. In Q3-2023, Amerigo returned $3.7 million to shareholders through the Company’s eighth consecutive quarterly dividend of Cdn$0.03 per share.

Since the implementation of Amerigo’s Capital Return Strategy (the “Strategy”) in September 2021, the Company has paid a cumulative dividend of Cdn$0.23 per share ($29.6 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 Q3-2023 financial results on November 1, 2023

Amerigo will release Q3-2023 financial results at the market open on Wednesday, November 1, 2023.

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.