Amerigo Reports Q3-2024 Operational Results

Q3-2024 Copper Production of 16.3 million pounds, Outperforming Guidance

Q3-2024 cash cost¹ of $1.93 per pound, Outperforming Guidance

Current Copper Prices Rising in Response to Global Stimulus

$8.5 million in Quarterly and Performance Dividends Paid in Q3-2024

VANCOUVER, British Columbia, Oct. 08, 2024 -- Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) ("Amerigo" or the "Company") is pleased to announce production results for the quarter ended September 30, 2024 ("Q3-2024") 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 unless indicated otherwise.

"MVC delivered a strong quarter with copper production of 16.3 million pounds, outperforming guidance. The Company's quarterly cash cost of $1.93 per pound was again lower than expected, and Amerigo's quarterly copper price in the third quarter was $4.22 per pound. This combination of excellent operational performance, controlled costs and high copper prices translates into robust financial performance, permitting the Company to continue implementing its Capital Return Strategy," said Aurora Davidson, Amerigo's President and CEO.

"Amerigo's Capital Return Strategy was designed so shareholders can quickly benefit from a quarter like this. We will continue to deploy all three mechanisms in the Strategy with maximum flexibility, as we expect copper prices to continue strengthening due to fundamental supply and demand issues. We are off to a great start in Q4, as copper prices are well above the quarterly average prices we have received throughout 2024," she added.

In Q3-2024, MVC produced 16.3 million pounds ("M lbs") of copper, with 70% of production coming from fresh tailings and 0.3 M lbs of molybdenum. MVC's plant availability was 97%.

During the nine months ended September 30, 2024 ("YTD-2024"), MVC produced 46.2 M lbs of copper and 1.0 M lbs of molybdenum. YTD-2024 production results are trending ahead of Amerigo's annual production guidance of 62.4 M lbs of copper and 1.2 M lbs of molybdenum.

Amerigo's cash cost¹ in Q3-2024 was $1.93 per pound ("/lb"), and YTD-2024 normalized cash cost¹ was $1.93/lb, both below the Company's 2024 cash cost¹ guidance of $2.08/lb. YTD-2024 normalized cash cost¹ excludes $0.02/lb paid to MVC's supervisors in January 2024 as the signing bonus of a 3-year collective labour agreement.

On September 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.

Amerigo's quarterly copper price in Q3-2024 was $4.22/lb, compared to $4.39/lb in Q2-2024. The Company's molybdenum price was $21.39/lb, compared to $21.11/lb in Q2-2024.

In Q3-2024, Amerigo paid shareholders $8.5 million in dividends, bringing YTD-2024 dividend payments to $15.8 million.

On September 30, 2024, Amerigo's cash position was $25.1 million ($8.9 million higher than December 31, 2023), and restricted cash was $6.7 million ($0.4 million higher than December 31, 2023). Outstanding bank debt was $15.5 million, $5.8 million lower than December 31, 2023.

Capital Return Strategy

Since implementing its Capital Return Strategy (the "Strategy") in September 2021, Amerigo has returned a total of $72.7 million to shareholders, $49.0 million through quarterly and performance dividends and $23.7 million through share buybacks, reducing by 11.1% the number of common shares outstanding at the inception of the Strategy.

Amerigo's Strategy consists of three mechanisms: quarterly dividends, performance dividends, and share buybacks. These mechanisms ideally provide shareholders with a consistent return on invested capital and quickly transfer the benefits of rising copper prices to Amerigo's shareholders.

Release of Q3-2024 financial results on October 30, 2024

Amerigo will release Q3-2024 financial results at the market open on Wednesday, October 30, 2024.

Investor conference call on Thursday, October 31, 2024

Amerigo's quarterly investor conference call will be held on Thursday, October 31, 2024, at 11:00 a.m. Pacific Daylight Time/2:00 p.m. Eastern Daylight Time.

Participants can join by visiting https://emportal.ink/4dccA8Y 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 1-888-510-2154 (Toll-Free North America) and state they wish to participate in the Amerigo Resources Q3-2024 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.

Contact Information

Non-IFRS Measures

This news release references cash cost, and YTD-2024 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.

YTD-2024 normalized cash cost excludes $0.02/lb paid to MVC's supervisors in January 2024 as the signing bonus of a 3-year collective labour agreement.

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:

• forecasted production and operating costs for 2024;
• the maintenance of the Company's Capital Return Strategy;
• 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 historic tailings tonnage processing for 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; 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, adverse weather conditions (including, but not limited to, continued extreme rainfall), 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, 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 ("DET") 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, as well as DET and its operations. DET'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 the Company's operations and have a material effect.

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 DET's current mining operations;
• the grade and projected recoveries of tailings processed by MVC;
• the ability of the Company to profitably extract and process historic tailings;
• 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;
• average recoveries for fresh tailings and historic 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.