ARG:CC - Amerigo Reports Q2-2022 Production Results

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Q2-2022 copperproduction of 14.9 million pounds, meeting company expectations

2022copper production trending 3% over guidance, production costs alignedwith guidance

Amerigo reaffirms return of shareholder capitalpolicy

Amerigo Resources Ltd. (TSX: ARG; OTC: ARREF) (“Amerigo” or the “Company”) is pleased to announceproduction results for the quarter ended June 30, 2022 (“Q2-2022”)from Minera Valle Central ("MVC"), the Company’s 100% ownedoperation located near Rancagua, Chile. Dollar amounts in this newsrelease are in U.S. dollars unless indicated otherwise .

“We are pleased toreport another strong operational quarter which included our 9-dayannual maintenance program shutdown. Amerigo’s operations metexpectations before and after the scheduled shutdown and produced 14.9million pounds of copper. As always, our maintenance shutdown quarterwill be our lowest production quarter of the year”, said AuroraDavidson, Amerigo’s President and CEO. “For the full year, weexpect to exceed copper production guidance by 3%, annual productioncosts to remain aligned with guidance, and we reaffirm the Company’scommitment to returning capital to shareholders.”

“Price volatility is anormal feature of the copper market,” said Ms. Davidson. “However,over the past several years we have transformed Amerigo into a companythat is ready for the long-term, regardless of copper pricevolatility.” She added, “We continue to see strong marketfundamentals supporting copper prices and have a robust balance sheetdesigned to weather market volatility while protecting the regularquarterly dividend of Cdn$0.03 per share. We are monitoring marketconditions to determine the optimum time to trigger additionalperformance dividends as part of our return of capital toshareholders.”

In Q2-2022, MVC produced 14.9 million pounds (“M lbs”) ofcopper at a cash cost ¹ of $2.01 per pound (“/lb”) with61% of MVC’s copper production coming from fresh tailings. Bysuccessfully prioritizing the processing of fresh tailings, water ispreserved and mineral resource depletion at Cauquenes is delayed, allwithout lowering copper production. For the first half of 2022, copperproduction totaled 31.4 M lbs of copper at a cash cost of$1.95/lb.

Lowercopper production in Q2-2022, because of the scheduled annualmaintenance shutdown, resulted in a higher-than-normal quarterly cashcost of $2.01/lb. Based on the Company’s modeling, annual cash costis trending towards $1.96/lb, approximately 3% higher than guidance.This cash cost variance is attributable to lower molybdenum byproductcredits from lower than anticipated molybdenum production. All otherproduction costs remain aligned with Amerigo’sbudget/guidance.

MVC’s water reserves on June 30, 2022, were 5.2 million cubicmeters, an increase of 16% over the previous quarter. These waterreserves continue to be sufficient for MVC to maintain projectedprocessing for a period of at least eighteen months.

MVC’s operations havecontinued without any significant disruptions due to Covid-19.

Molybdenum production inthe quarter was 0.2 M lbs, trending below guidance mostly due to lowermolybdenum content in fresh tailings.

The Company’s quarterly copper price in Q2-2022was $4.10/lb, compared to $4.64/lb in Q1-2022.

In Q2-2022, Amerigoreturned $13.0 million to shareholders: $4.1 million were paid throughAmerigo’s regular quarterly dividend of Cdn$0.03 per share, and $8.9million were returned through the purchase of 6.9 million commonshares for cancellation through Amerigo’s recently completed NormalCourse Issuer Bid. Amerigo also made scheduled debt repayments of $3.5million in the quarter.

On June 30, 2022, the Company’s cash and restricted cashbalance was $57.2 million.

Release of Q2-2022 results on August 3,2022

Amerigowill release Q2-2022 financial results at market open on Wednesday,August 3, 2022.

Investor conference call on August 4, 2022

Amerigo’s quarterlyinvestor conference call will take place on Thursday, August 4, 2022at 11:00 am Pacific Time/2:00 pm Eastern Time. To join the call,please dial 1-888-664-6392 (Toll-Free North America) and enterconfirmation number 81494727 .

Upcoming Investor ConferenceParticipation

Amerigo will be participating in the Sidoti Small CapVirtual Conference on September 21 and 22, 2022 and the 121 Global Online Tech Metals conference on October 25and 26, 2022. CEO Aurora Davidson will be presenting at bothconferences and will be available for one-on-one meetings throughouteach event.

About Amerigo and MVC

Amerigo Resources Ltd. is an innovative copperproducer with a long-term relationship with Corporación Nacional delCobre de Chile (“Codelco”), the world’s largest copper 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.

Cash cost isincluded in this news release because it is a key performance measureused by management 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 and should be read inconjunction with the Company’s consolidated financial statements.Readers should refer to Amerigo’s Management’s Discussion andAnalysis, available on SEDAR at www.sedar.com , under the heading“Non-IFRS Measures” for a more detailed discussion of how Amerigocalculates cash cost and a reconciliation of cash cost against IFRSmeasures.

CautionaryNote Regarding Forward-Looking Information

This news releasecontains certain forward-looking information and statements as definedin applicable securities laws (collectively referred to as"forward-looking statements"). These statements relate tofuture events or the Company’s future performance. All statementsother than statements of historical fact are forward-lookingstatements. The use of any of the words "anticipate","plan", "continue", "estimate","expect", "may", "will", "project","predict", "potential", "should","believe" and similar expressions is intended to identifyforward-looking statements. These forward-looking statements includebut are not limited to, statements concerning:

• forecasted production and operating costs;
• ourstrategies and objectives;

• our estimates of theavailability and quantity of tailings, and the quality of our mineplan estimates;

• the sufficiency of MVC’s waterreserves to maintain projected Cauquenes tonnage processing for aperiod of at least 18 months;

• prices and price volatilityfor copper, molybdenum and other commodities and of materials we usein our operations;
• the demand for and supply of copper,molybdenum and other commodities and materials that we produce, selland use;
• sensitivity of our financial results and share priceto changes in commodity prices;
• our financial resources andfinancial condition and our expected ability to meet our obligationsfor the next 12 months;
• interest and otherexpenses;
• domestic and foreign laws affectingouroperations;
• our tax position and the tax rates applicableto us;
• our ability to comply with our loancovenants;
• the production capacity of our operations, ourplanned production levels and future production;

• potentialimpact of production and transportationdisruptions;

• hazards inherent in the mining industrycausing personal injury or loss of life, severe damage to ordestruction of property and equipment, pollution or environmentaldamage, claims by third parties and suspension ofoperations

• estimates of asset retirement obligationsand other costs related to environmentalprotection;

• our future capitaland productioncosts,including the costs and potential impact of complying withexisting and proposed environmental laws and regulations in theoperation and closure of our operations;

• repudiation,nullification, modification or renegotiation of contracts;
• ourfinancial and operating objectives;
• our environmental, healthand safetyinitiatives;
• 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 informationtechnology systems, including those related tocybersecurity;
• our dividend policy; and
• generalbusiness and economic conditions, including, but not limited to, ourassessment of strong market fundamentals supporting copperprices..

These forward-looking statements involveknown and unknown risks, uncertainties and other factors that maycause actual results or events to differ materially from thoseanticipated in such statements. Inherent in forward-looking statementsare risks and uncertainties beyond our ability to predict or control,including risks that may affect our operating or capital plans; risksgenerally encountered in the permitting and development of mineralprojects such as unusual or unexpected geological formations,negotiations with government and other third parties, unanticipatedmetallurgical difficulties, delays associated with permits, approvalsand permit appeals,ground control problems,adverse weather conditions,process upsets and equipment malfunctions; risks associated withlabour disturbances and availability of skilled labour and management;risks related to the potential impact of global or national healthconcerns, 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 projectsand properties;risks associated 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;risks associated with supply chain disruptions; title risks; socialand political risks associated with operations in foreign countries;risks of changesin laws affecting our operations or theirinterpretation, including foreign exchange controls; and risksassociated 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 todiffer, and may differmaterially, from those expressed or implied bythe forward-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 economic conditions;
• interest and currency exchangerates;
• changes in commodity andpower prices;
• acts of foreigngovernments and the outcome of legal proceedings;
• the supply and demand for, deliveries of,and the level and volatility of prices of copper, molybdenum and othercommodities and products used in our operations;
• the ongoing supply of material forprocessing from Codelco’s current mining operations;
• the grade and projected recoveries oftailings processed by MVC;
• theability of the Company to profitably extract and process material fromthe Cauquenes tailings deposit;
• thetiming of the receipt of and retention of permits and other regulatoryand governmental approvals;
• ourcosts of production and our production and productivity levels, aswell as those of our competitors;
• changes in credit market conditions and conditions in financialmarkets generally;
• our ability toprocure equipment and operating supplies in sufficient quantities andon a timely basis;
• the availabilityof qualified employees and contractors for our operations;
• our ability to attract and retain skilledstaff;
• the satisfactory negotiationof collective agreements with unionized employees;
• the impact of changes in foreign exchangerates and capital repatriation on our costs and results;
• engineering and construction timetables andcapital costs for our expansion projects;
• costs of closure of various operations;
• market competition;
• tax benefits and tax rates;
• the outcome of our copper concentrate salesand treatment and refining charge negotiations;
• the resolution of environmental and otherproceedings or disputes;
• the futuresupply of reasonably priced power;
• rainfall in the vicinity of MVC continuing to trend towardsnormal levels;
• average recoveriesfor fresh tailings and Cauquenes tailings;
• our ability to obtain, comply with and renew permits andlicenses in a timely manner; and
• ourongoing relations with our employees and entities with which we dobusiness.

Future production levels and cost estimates assume there are noadverse mining or other events which significantly affect budgetedproduction levels.

Although the Company believes that these assumptions werereasonable when made, because these assumptions are inherently subjectto significant uncertainties and contingencies which are difficult orimpossible to predict and are beyond the Company’s control, theCompany cannot assure that it will achieve or accomplish theexpectations, beliefs or projections described in the forward-lookingstatements.

We caution you that theforegoing list of important factors and assumptions is not exhaustive.Other events or circumstances could cause our actual results to differmaterially from those estimated or projected and expressed in, orimplied by, our forward-looking statements. You should also carefullyconsider the matters discussed under Risk Factors in theCompany`s Annual Information Form. The forward-looking statementscontained herein speak only as of the date of this news release andexcept as required by law, we undertake no obligation to updatepubliclyor otherwise revise any forward-looking statements or theforegoing list of factors, whether as a result of new information orfuture events or otherwise.

ContactDetails

Aurora Davidson, President and CEO

+1604-697-6207

ad@amerigoresources.com

GrahamFarrell

+1 416-842-9003

Graham.Farrell@Harbor-Access.com

CompanyWebsite

http://www.amerigoresources.com/

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