Mr. Darren Blasutti reports

AMERICAS SILVER CORPORATION PROVIDES SECOND QUARTER OPERATING RESULTS AND CORPORATE UPDATE

Americas Silver Corp. has provided production and operating cost results for the second 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 556,000 silver ounces and 1.1 million silver equivalent (1) ounces, representing decreases of 16 per cent and 7 per cent, respectively, when compared with the second quarter of 2015. Cash costs (2) for the quarter were approximately $11.38 per silver ounce, a reduction of 8 per cent year over year, while all-in sustaining costs (2) were approximately $14.62 per silver ounce, down 12 per cent when compared with the same quarter year over year. For the first half of 2016, cash costs were $10.53 per silver ounce and all-in sustaining costs were $13.20 per silver ounce.
• Guidance for 2016 remains unchanged at 2.5 million to three million ounces in silver production and five million to 5.6 million ounces in silver-equivalent production with projected cash costs of $9 to $10 per silver ounce and all-in sustaining costs of $11.75 to $12.75 per silver ounce.
• The San Rafael project is progressing with minor earthworks and is in preparation for official construction start-up expected before the end of the third quarter of 2016. The company has cash on hand to build the project, but is actively soliciting financing proposals for a portion of the development costs and has received strong interest from several potential financiers. At recent spot prices, the project is projected to have an unlevered, pretax internal rate of return of over 65 per cent (3). The company expects to provide a further update on the project status in the third quarter of 2016.
• During the second quarter, the company closed two private placements for aggregate gross proceeds of approximately $32-million (Canadian). The company's cash balance at June 30, 2016, was $16.9-million. Adjusting for July's subsequent receipt of net proceeds from the second private placement of $8.3-million, the company's adjusted cash balance was approximately $25.2-million.

"As expected, second quarter production and cash costs were impacted by the ground movement at the Cosala operations and expected lower grades at the Galena complex. This was offset by the company's continued efforts to cut costs," said Americas Silver president and chief executive officer Darren Blasutti. "With Nuestra Senora returning to expected tonnage, grades and recovery, and with Galena expecting higher grades in the second half of 2016, we expect the second half of the year to be stronger. For the remainder of the year, we will focus on a construction decision for our San Rafael project before the end of the third quarter and increasing mining in higher lead grade areas at the Galena complex."

Consolidated second quarter production details

Consolidated silver production for the second quarter of 2016 was 556,404 ounces, which represents a decrease of 16 per cent compared with the second quarter of 2015. Silver-equivalent production was approximately 1,063,587 ounces, down 7 per cent year over year. Consolidated cash costs improved by 8 per cent to $11.38 per silver ounce compared with the second quarter of 2015, while all-in sustaining costs improved by 12 per cent to $14.62 per silver ounce compared with the second quarter of 2015. In addition, lead production increased 45 per cent year over year, as the Galena complex continued to successfully increase silver-lead ore production.

As previously announced, production and operational costs from the Nuestra Senora mine were affected as a result of the ground movement at the mine. The mine processed lower-grade oxide stockpiles while primary access way was being re-established. Ramp access was restored in late May and normal mining activities with expected results resumed by late June. Management continues to implement productivity enhancements and cost-control initiatives to continue to drive operational efficiencies at both operations.

                               
                    CONSOLIDATED PRODUCTION HIGHLIGHTS                     

                                     Q2 2016      Q1 2016      Q2 2015

Processed ore (tonnes milled)        161,700      175,108      158,395
Silver production (ounces)           556,404      672,074      661,393
Silver-equivalent production
(ounces)                           1,063,587    1,282,644    1,148,769
Grade (grams per tonne)                  130          135          147
Cash costs ($ per ounce
silver)                               $11.38        $9.82       $12.35
All-in sustaining costs ($
per ounce silver)                      14.62        12.02        16.70
Zinc (pounds)                      2,081,046    3,552,522    2,692,214
Lead (pounds)                      6,677,247    7,121,573    4,618,754
Copper (pounds)                      225,785      245,808      541,691

Cosala operations production details

The Cosala operations produced 244,548 ounces of silver during the second quarter of 2016 and 415,043 ounces of silver equivalent during the same period at cash costs of $9.34 per silver ounce and all-in sustaining costs of $11.89 per silver ounce. Silver production decreased 20 per cent compared with the same quarter last year, while silver-equivalent production also decreased by 31 per cent. Cash costs per silver ounce remained relatively flat when compared with the second quarter of 2015 while all-in sustaining costs decreased 4 per cent year over year. Underperformance at the Cosala operations during the second quarter is attributable primarily to the previously mentioned ground movement. The mill processed lower-grade, oxidized stockpiles from both Nuestra Senora and historical operating mines on the property in order to maintain production and cash flow while an alternative access ramp was constructed. Nuestra Senora returned to normal operations in late June and is anticipated to operate within expectations for the remainder of the year. All costs associated with the alternative access ramp are included in the second quarter 2016 costs.

 
                     COSALA OPERATIONS HIGHLIGHTS                        

                                    Q2 2016     Q1 2016   Q2 2015

Processed ore (tonnes milled)       120,347     131,063   124,809
Silver production (ounces)          244,548     307,580   304,610
Silver-equivalent production
(ounces)                            415,043     608,549   603,296
Grade (grams per tonne)                  88          88        91
Cash costs ($ per ounce
silver)                               $9.34       $7.12     $9.23
All-in sustaining costs ($
per ounce silver)                     11.89        8.59     12.34
Zinc (pounds)                     2,081,046   3,552,522 2,692,214
Lead (pounds)                       574,775   1,510,053 1,370,466
Copper (pounds)                     245,808     245,808   443,668

San Rafael project update

The company continues to advance the San Rafael brownfield development project at its Cosala operations. Published in March, 2016, the project prefeasibility study estimates initial capital of $22-million, production of approximately 5.5 million ounces of silver, 250 million pounds of zinc and 100 million pounds of lead over an initial 5.5-year mine life at negative all-in sustaining costs per silver ounce at the zinc-silver-lead property. The recent price increases in precious and base metals continue to strongly support the development of this project and the potential to extend the project mine life. At recent spot prices, the project's projected pretax IRR improved from the previous IRR of 27 per cent to over 65 per cent (3).

Minor earthworks have started with preparatory activities such as soliciting quotes and ordering long-lead items for preparation of the official project start after the rainy season. The company also began soliciting financing proposals from a number of concentrate offtakers and metals trading companies, in addition to traditional and non-traditional financing sources and has received strong interest to date. The company expects the project to start construction before the end of the third quarter of 2016.

Galena complex production details

The Galena complex produced 311,856 ounces of silver and 648,544 silver-equivalent ounces during the second quarter of 2016 at cash costs of $12.98 per silver ounce and all-in sustaining costs of $16.76 per silver ounce. Silver production decreased 13 per cent compared with the same quarter last year, while silver-equivalent production increased 19 per cent year over year as a result of an 88-per-cent increase in lead production. Cash costs improved 13 per cent compared with second quarter of 2015 and all-in sustaining costs also improved 18 per cent year over year.

The company expected the second quarter of 2016 to be a lower-production quarter, however, the shortfall in silver and silver-equivalent production was further affected by inconsistent sand production from the first quarter of 2016, a cemented fill failure in one of the main stopes on the 5200 level and slightly lower-than-modelled grades produced from the recently developed 3400 level stopes. As of the end of July, management believes these issues to be adequately resolved and expects the second half of 2016 to provide more consistent, predictable performance than experienced in the first half of 2016.

                              
                                GALENA COMPLEX HIGHLIGHTS                         

                                         Q2 2016          Q1 2016          Q2 2015

Processed ore (tonnes milled)             41,353           44,045           33,586
Silver production (ounces)               311,856          364,494          356,783
Silver-equivalent production
(ounces)                                 648,544          674,095          545,473
Grade (grams per tonne)                      251              276              355
Cash costs ($ per ounce
silver)                                   $12.98           $12.10           $15.00
All-in sustaining costs ($
per ounce silver)                          16.76            14.92            20.42
Lead (pounds)                          6,102,472        5,611,520        3,248,288
Copper (pounds)                                -                -           98,023

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.

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-IFRS 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 June 30, 2016, are preliminary throughout this press release subject to refinement from the company's second quarter financial results to be released on or before Aug. 12, 2016.

(3) The March, 2016, prefeasibility study for the San Rafael project adjusted for recent spot prices of $20.00 per ounce of silver, $1.01 per pound of zinc, 83 cents per pound of lead and 18.5:1 for the Mexican-peso/U.S.-dollar exchange rate.

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