Mr. Darren Blasutti reports

AMERICAS SILVER CORPORATION PROVIDES FIRST QUARTER PRODUCTION UPDATE

Americas Silver Corp. has released its production for the first quarter of 2016 for its Cosala operations and Galena complex. All figures are in U.S. dollars unless otherwise indicated.

Highlights

• Consolidated silver production for the quarter was approximately 672,000 silver ounces and 1.28 million ounces of silver equivalent(1), representing increases of 12 per cent and 7 per cent, respectively, compared with the fourth quarter of 2015. Cash costs(2) for the quarter were approximately $10.08 per silver ounce, a reduction of 19 per cent over the previous quarter and 30 per cent over the first quarter of 2016, while all-in sustaining costs(2) were approximately $12.28 per silver ounce, down 33 per cent compared with the previous quarter and 28 per cent year over year.
• Quarterly production at the Cosala operations was approximately 308,000 silver ounces and 609,000 ounces silver equivalent, representing increases of 16 per cent and 6 per cent, respectively, compared with the fourth quarter of 2015. Cash costs were approximately $7.13 per silver ounce and all-in sustaining costs were $8.60 per silver ounce, down 47 per cent and 53 per cent, respectively, over the previous quarter, and 27 per cent and 39 per cent, respectively, year over year.
• Galena complex silver production for the quarter was approximately 364,000 ounces and 674,000 ounces silver equivalent, representing increases of 9 per cent and 7 per cent, respectively, compared with the fourth quarter 2015. Cash costs of approximately $12.57 per silver ounce and all-in sustaining costs of $15.39 per silver ounce, down 17 per cent and 18 per cent, respectively, over the previous quarter, and 14 per cent and 21 per cent, respectively, year over year.
• Guidance for 2016 remains unchanged at 2.5 million to three million ounces in silver production and five million to 5.6 million ounces of silver-equivalent production with projected cash costs of $9.00 to $10.00 per silver ounce and all-in sustaining cash costs of $11.75 to $12.75 per silver ounce.
• The company's cash balance at March 31, 2016, was $2.8-million.

"We delivered a solid operational quarter due in large part to the restructuring plan we put in place earlier this year combined with our continued focus on cost reductions and productivity improvements despite lower lead grades at the Galena complex," said Americas Silver president and chief executive officer Darren Blasutti. "For the remainder of the year, our focus will be on improving our Cosala operations mine planning, securing financing for our San Rafael project and increasing mining in higher lead grade areas at the Galena complex in order to maintain our momentum on lowering costs to achieve or exceed our stated guidance for the year."

The company expects to release its first quarter financial results on or before May 13, 2016.

Notes

(1) Silver-equivalent production for 2016 throughout this press release is based on prices of $14.50 per ounce silver, 75 cents per pound zinc, 80 cents per pound lead and $2 per pound copper. Silver-equivalent production for 2015 throughout this press release is based on prices of $17 per ounce silver, 95 cents per pound zinc, 90 cents per pound lead and $2.90 per pound copper.

(2) Cash cost per ounce and all-in sustaining cost per ounce are non-international financial reporting standards performance measures with no standardized definition. For further information and detailed reconciliations, please refer to the company's 2015 year-end and quarter management's discussion and analysis. The performance measures for the quarter ended March 31, 2016, are preliminary throughout this press release subject to refinement from the company's first quarter financial results to be released on or before May 13, 2016.

Consolidated first quarter production details

Consolidated silver production for the first quarter of 2016 was 672,074 ounces which represents an increase of 12 per cent over the previous quarter and a decrease of 5 per cent year over year. Silver-equivalent production was approximately 1.28 million ounces, up 7 per cent over the previous quarter and 3 per cent year over year. Consolidated cash costs fell 30 per cent to $10.08 per silver ounce compared with the fourth quarter of 2015 and 19 per cent year over year; while all-in sustaining costs dropped 33 per cent to $12.28 per silver ounce compared with the prior quarter and 28 per cent year over year. In addition, lead production increased 53 per cent year over year, as the Galena complex continued to successfully increase silver-lead ore production.

First quarter cash and all-in sustaining costs were in line with company expectations for meeting projected annual guidance of $9.00 to $10.00 per silver ounce and $11.75 to $12.75 per silver ounce, respectively. Processed ore tonnage, silver grade and silver production were on budget during the quarter. Silver-lead production tonnage from the Galena complex has ramped up in accordance with the plan, however, lead grades were lower in the first quarter as the company worked in lower-grade lead areas. Lead grades will increase over the course of the year. Management continues to implement productivity enhancements and cost-control initiatives are under way to protect the company's cash balance given current metal prices.

                              
                CONSOLIDATED PRODUCTION HIGHLIGHTS                     

                                  Q1 2016      Q4 2015      Q1 2015
Processed ore (tonnes
milled)                           175,108      167,398      163,942
Silver production (ounces)        672,074      599,677      708,241
Silver-equivalent
production (ounces)             1,282,644    1,200,583    1,246,099
Grade (grams per tonne)               135          126          149
Cash costs ($ per silver
ounce)                             $10.08       $14.38       $12.46
All-in sustaining costs ($
per silver ounce)                  $12.28       $18.45       $17.15
Zinc (pounds)                   3,552,522    3,075,468    3,253,739
Lead (pounds)                   7,121,573    7,067,802    4,646,945
Copper (pounds)                   245,808      321,616      644,923

Cosala operations production details

The Cosala operations produced 307,580 ounces of silver during the first quarter of 2016 and 608,549 ounces of silver equivalent during the same period at cash costs of $7.13 per silver ounce and all-in sustaining costs of $8.60 per silver ounce. Silver production increased 16 per cent compared with the previous quarter, while silver-equivalent production rose 6 per cent. Cash costs decreased by 47 per cent to $7.13 per silver ounce compared with the previous quarter and fell 27 per cent year over year while all-in sustaining costs dropped 53 per cent to $8.60 per silver ounce compared with the prior quarter and 39 per cent year over year. These reductions were achieved as a result of a further restructuring of the labour force in the first quarter, reduced smelting and refining costs, and a favourable Mexican peso/U.S. dollar exchange rate offset by slightly lower base metal grades and lower realized base metal prices.

                         
                  COSALA OPERATIONS HIGHLIGHTS                        

                                Q1 2016      Q4 2015      Q1 2015
Processed ore (tonnes
milled)                         131,063      128,001      126,425
Silver production (ounces)      307,580      266,145      316,616
Silver-equivalent
production (ounces)             608,549      571,856      650,010
Grade (grams per tonne)              88           79           92
Cash costs ($ per silver
ounce)                            $7.13       $13.51       $ 9.83
All-in sustaining costs ($
per silver ounce)                 $8.60       $18.12       $ 4.16
Zinc (pounds)                 3,552,522    3,075,468    3,253,739
Lead (pounds)                 1,510,053    1,506,003    1,200,286
Copper (pounds)                 245,808      317,237      515,994

During the week of April 4, 2016, the Cosala operations' Nuestra Senora mine began to experience ground movements around historic stopes near the primary access to the mine. The mine was later closed for safety reasons as the ground movement continued throughout the week. During this time, the mill continued to process ore stockpiles. This situation is expected to continue while mining crews work to re-establish a primary ore passageway in and out of the mine. It is expected that supplementary feed sources will maintain milling rates until the resumption of production at Neustra Senora ore can re-established in four to six weeks.

Galena complex production details

The Galena complex produced 364,494 ounces of silver and 674,095 ounces silver equivalent during the first quarter of 2016 at cash costs of $12.57 per silver ounce and all-in sustaining costs of $15.39 per silver ounce. Silver production increased 9 per cent compared with the previous quarter, while silver-equivalent production rose 7 per cent over the same period and 13 per cent compared with the first quarter of 2015. Cash costs were down 17 per cent compared with the previous quarter and 14 per cent year over year and all-in sustaining costs fell 18 per cent from the previous quarter and 21 per cent year over year. Cash costs decreased following a work force reduction in the first quarter of 2016 and the successful ramp-up of silver-lead ore tonnage during the first quarter, offset by lower lead grades and higher than expected electrical costs. The first quarter saw mining in relatively low-grade lead areas in the mine. This situation is expected to improve over the rest of the year.

                     GALENA COMPLEX HIGHLIGHTS                         

                                 Q1 2016     Q4 2015      Q1 2015
Processed ore (tonnes
milled)                           44,045      39,397       37,517
Silver production (ounces)       364,494     333,532      391,625
Silver-equivalent
production (ounces)              674,095     628,727      596,089
Grade (grams per tonne)              276         278          340
Cash costs ($ per silver
ounce)                            $12.57      $15.07       $14.59
All-in sustaining costs ($
per silver ounce)                 $15.39      $18.71       $19.57
Lead (pounds)                  5,611,520   5,561,799    3,446,659
Copper (pounds)                        -       4,379      128,929

Daren Dell, chief operating officer and a qualified person under Canadian securities administrators guidelines, has approved the applicable contents of this news release. For further information please see SEDAR or the company's website.

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