ARG:CC - Amerigo Reports Q1-2022 Production Results

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Q1-2022 copper production of 16.5million pounds

Cash cost1 of$1.90/lb

Q1-2022 copperproduction and cash cost aligned with annual guidance

Amerigo ResourcesLtd. (TSX: ARG; ARREF:OTC) (“Amerigo” or the “Company”) ispleased to announce production results for the quarter ended March 31,2022 (“Q1-2022”) from Minera Valle Central ("MVC"), theCompany’s 100% owned operation located near Rancagua, Chile. Dollar amounts in this news release are in U.S. dollars unlessindicated otherwise.

“We arepleased to report another strong operational quarter with productionof 16.5 million pounds of copper at a cash cost of $1.90 per pound forthe first quarter of 2022. These results are aligned with our 2022annual guidance, which incorporates lower Q2 production due to MVC’sannual nine-day maintenance plant shutdown”, said Aurora Davidson,Amerigo’s President and CEO. “With a quarterly copper price of$4.64 per pound, $0.32 higher than the price in the previous quarter,Q1-2022 was a strong start to the year for Amerigo. We look forward toreleasing financial results on May 4, 2022 and hosting our quarterlyearnings call on May 5, 2022”, Ms. Davidson added.

In Q1-2022, MVC produced 16.5 millionpounds (“M lbs”) of copper at a cash cost1 of $1.90 per pound(“/lb”). Copper production in the quarter reflects Amerigo’sfocus on maximizing production from fresh tailings, which accountedfor 58% of quarterly copper production. This focus has allowed MVC toreduce processing from Cauquenes with the advantages of preservingwater and delaying mineral resource depletion without lowering copperproduction.

Molybdenum productionin the quarter was 0.2 M lbs, trending slightly below guidance mostlydue to lower molybdenum content in fresh tailings.

Water reserves at Colihues on March 31,2022 were 4.5 million cubic meters, in line with projections. Waterreserves continue to be sufficient for MVC to maintain the projectedCauquenes tonnage processing for a period of at least eighteenmonths.

MVC’s annual plantshutdown commenced on April 5 and is currently expected to becompleted on April 13, 2022.

MVC’s operations have continued without any significantdisruptions due to Covid-19.

MVC’s average copper price in Q1-2022 was $4.64/lb, comparedto $4.32/lb in Q4-2021.

InQ1-2022, Amerigo returned $7.5 million to shareholders: $4.1 millionwere paid on March 21, 2022, through Amerigo’s increased quarterlydividend of Cdn$0.03 per share, and $3.4 million were returned throughthe purchase of 2.4 million common shares for cancellation throughAmerigo’s ongoing Normal Course Issuer Bid (“NCIB”). A further6.9 million shares remain available for repurchase and cancellationunder the NCIB.

On March 30, 2022,Amerigo filed an updated National Instrument 43-101 Technical Reportfor MVC, available on www.sedar.com and at www.amerigoresources.com .

On March 31, 2022, the Company’scash and restricted cash balance was $77.5 million (an increase of$13.5 million from December 31, 2021).

Release of Q1-2022 results on May 4, 2021

Amerigo will release Q1-2022 financialresults at market open on Wednesday, May 4, 2022.

I nvestor conference call on May 5,2022

Amerigo’s quarterlyinvestor conference call will take place on Thursday, May 5, 2022 at11:00 am Pacific Standard Time/2:00 pm Eastern Standard Time. To jointhe call, please dial 1-888-664-6392 (Toll-Free North America) andenter confirmation number 54894230 .

Upcoming Investor Conference Participation

Amerigo will be participating in theSidoti Micro Cap Virtual Conference and the Inflection Partners 2022Virtual Conference on May 11 and 12, 2022. CEO Aurora Davidson willpresent the Amerigo investment thesis and will be available forone-on-one meetings throughout each event.

About Amerigo and MVC

Amerigo Resources Ltd. is an innovativecopper producer with a long-term relationship with CorporaciónNacional del Cobre de Chile (“Codelco”), the world’s largestcopper producer.

Amerigo producescopper concentrate and molybdenum concentrate as a by-product at theMVC operation in Chile by processing fresh and historic tailings fromCodelco’s El Teniente mine, the world's largest undergroundcopper mine. Tel: (604) 681-2802; Web: www.amerigoresources.com;Listing: ARG:TSX.

¹ Non-IFRS Measures

This news releaseincludes references to cash cost, a performance measure not definedunder International Financial Reporting Standards (“IFRS”). Cashcost is a performance measure commonly used in the mining industry. InAmerigo’s case, cash cost is the aggregate of smelting and refiningcharges, tolling/production costs net of inventory adjustments andadministration costs, net of by-product credits. Cash cost per poundproduced is based on pounds of copper produced and is calculated bydividing cash cost over the number of pounds of copper produced.

The Companyprovides a reconciliation of cash cost against IFRS measures on aquarterly basis when financial results are reported.

Cash cost is includedin this news release because it is a key performance measure used bymanagement to monitor operating performance, assess corporateperformance, and to plan and assess the overall effectiveness andefficiency of Amerigo’s operations. Performance measures such ascash cost are not standardized financial measures under IFRS and,therefore, amounts presented may not be comparable to similarfinancial measures disclosed by other companies. These performancemeasures should not be considered in isolation as a substitute formeasures of performance in accordance with IFRS.

Cautionary NoteRegarding Forward-Looking Information

This news release contains certainforward-looking information and statements as defined in applicablesecurities laws (collectively referred to as "forward-lookingstatements"). These statements relate to future events or theCompany’s future performance. All statements other than statementsof historical fact are forward-looking statements. The use of any ofthe words "anticipate", "plan", "continue","estimate", "expect", "may", "will","project", "predict", "potential","should", "believe" and similar expressions isintended to identify forward-looking statements. These forward-lookingstatements include but are not limited to, statementsconcerning:

• forecasted production and operatingcosts;

• our strategies and objectives;

• our estimates of the availability andquantity of tailings, and the quality of our mine planestimates;

• the sufficiency of Colihues water reserves to maintain theCauquenes tonnage processing projected in Amerigo’s 2022 productionguidance;

• prices and price volatility for copper, molybdenum and othercommodities and of materials we use in our operations;

• the demand for andsupply of copper, molybdenum and other commodities and materials thatwe produce, sell and use;

• sensitivity of our financial results and shareprice to changes in commodity prices;

• our financial resources and our expectedability to meet our obligations for the next 12 months;

• interest and otherexpenses;

• domestic and foreign laws affecting ouroperations;

• our tax position and the tax rates applicable tous;

• ourability to comply with our loan covenants;

• the production capacityof our operations, our planned production levels and futureproduction;

• potential impact of production and transportationdisruptions;

• hazards inherent in the mining industry causing personal injuryor loss of life, severe damage to or destruction of property andequipment, pollution or environmental damage, claims by third partiesand suspension of operations

• estimates of asset retirement obligations andother costs related to environmental protection;

• our future capital andproduction costs, including the costs and potential impact ofcomplying with existing and proposed environmental laws andregulations in the operation and closure of ouroperations;

• repudiation, nullification, modification or renegotiation ofcontracts;

• our financial and operating objectives;

• our environmental,health and safety initiatives;

• the outcome of legal proceedings andother disputes in which we may be involved;

• the outcome ofnegotiations concerning metal sales, treatment charges androyalties;

• disruptions to the Company's information technology systems,including those related to cybersecurity;

• our dividend policy;and

• general business andeconomic conditions.

These forward-looking statements involve knownand unknown risks, uncertainties and other factors that may causeactual results or events to differ materially from those anticipatedin such statements. Inherent in forward-looking statements are risksand uncertainties beyond our ability to predict or control, includingrisks that may affect our operating or capital plans; risks generallyencountered in the permitting and development of mineral projects suchas unusual or unexpected geological formations, negotiations withgovernment and other third parties, unanticipated metallurgicaldifficulties, delays associated with permits, approvals and permitappeals, ground control problems, adverse weather conditions, processupsets and equipment malfunctions; risks associated with labourdisturbances and availability of skilled labour and management; risksrelated to the potential impact of global or national health concerns,including COVID-19, and the inability of employees to accesssufficient healthcare; government or regulatory actions or inactions;fluctuations in the market prices of our principal commodities, whichare cyclical and subject to substantial price fluctuations; riskscreated through competition for mining projects and properties; risksassociated with lack of access to markets; risks associated withavailability of and our ability to obtain both tailings fromCodelco’s Division El Teniente’s current production and historictailings from tailings deposit; the availability of and ability of theCompany to obtain adequate funding on reasonable terms for expansionsand acquisitions; mine plan estimates; risks posed by fluctuations inexchange rates and interest rates, as well as general economicconditions; risks associated with environmental compliance and changesin environmental legislation and regulation; risks associated with ourdependence on third parties for the provision of critical services;risks associated with non-performance by contractual counterparties;title risks; social and political risks associated with operations inforeign countries; risks of changes in laws affecting our operationsor their interpretation, including foreign exchange controls; andrisks associated with tax reassessments and legal proceedings.Notwithstanding the efforts of the Company and MVC, there can be noguarantee that the Company’s or MVC’s staff will not contractCOVID-19 or that the Company’s and MVC’s measures to protect stafffrom COVID-19 will be effective. Many of these risks and uncertaintiesapply not only to the Company and its operations, but also to Codelcoand its operations. Codelco’s ongoing mining operations provide asignificant portion of the materials the Company processes and itsresulting metals production, therefore these risks and uncertaintiesmay also affect their operations and in turn have a material effect onthe Company.

Actual results and developments are likely to differ, and maydiffer materially, from those expressed or implied by theforward-looking statements contained in this news release. Suchstatements are based on several assumptions which may prove to beincorrect, including, but not limited to, assumptions about:

• general business and economicconditions;

• interest and currency exchange rates;

• changes in commodityand power prices;

• acts of foreign governments and the outcome oflegal proceedings;

• the supply and demand for, deliveries of, and thelevel and volatility of prices of copper, molybdenum and othercommodities and products used in our operations;

• the ongoing supply ofmaterial for processing from Codelco’s current miningoperations;

• the grade and projected recoveries of tailings processed byMVC;

• theability of the Company to profitably extract and process material fromthe Cauquenes tailings deposit;

• the timing of the receipt of andretention of permits and other regulatory and governmentalapprovals;

• our costs of production and our production and productivitylevels, as well as those of our competitors;

• changes in creditmarket conditions and conditions in financial marketsgenerally;

• our ability to procure equipment and operating supplies insufficient quantities and on a timely basis;

• the availability ofqualified employees and contractors for our operations;

• our ability to attractand retain skilled staff;

• the satisfactory negotiation of collectiveagreements with unionized employees;

• the impact of changes in foreign exchangerates and capital repatriation on our costs andresults;

• engineering and construction timetables and capital costs forour expansion projects;

• costs of closure of variousoperations;

• market competition;

• tax benefits and tax rates;

• the outcome of ourcopper concentrate sales and treatment and refining chargenegotiations;

• the resolution of environmental and other proceedings ordisputes;

• the future supply of reasonably priced power;

• rainfall in thevicinity of MVC continuing to trend towards normallevels;

• average recoveries for fresh tailings and Cauquenestailings;

• our ability to obtain, comply with and renew permits andlicenses in a timely manner; and

• our ongoing relations with our employees and entities withwhich we do business.

Future production levels and cost estimatesassume there are no adverse mining or other events which significantlyaffect budgeted production levels.

Although the Company believes that theseassumptions were reasonable when made, because these assumptions areinherently subject to significant uncertainties and contingencieswhich are difficult or impossible to predict and are beyond theCompany’s control, the Company cannot assure that it will achieve oraccomplish the expectations, beliefs or projections described in theforward-looking statements.

We caution you that the foregoing list ofimportant factors and assumptions is not exhaustive. Other events orcircumstances could cause our actual results to differ materially fromthose estimated or projected and expressed in, or implied by, ourforward-looking statements. You should also carefully consider thematters discussed under Risk Factors in the Company`s AnnualInformation Form. The forward-looking statements contained hereinspeak only as of the date of this news release and except as requiredby law, we undertake no obligation to update publicly or otherwiserevise any forward-looking statements or the foregoing list offactors, whether as a result of new information or future events orotherwise.

Contact Details

AuroraDavidson

President and CEO

+1 604-697-6207

ad@amerigoresources.com

GrahamFarrell

Investor Relations

+1 416-842-9003

Graham.Farrell@Harbor-Access.com

CompanyWebsite

http://www.amerigoresources.com/

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