Mr. Darren Blasutti reports

AMERICAS SILVER CORPORATION PROVIDES UPDATE ON SAN RAFAEL PROJECT AND NEW YORK STOCK EXCHANGE LISTING

Americas Silver Corp. has provided an update on its 100-per-cent-owned San Rafael zinc-lead-silver project within the Cosala district of Sinaloa, Mexico, and its New York Stock Exchange listing. All figures are in U.S. dollars unless otherwise indicated.

San Rafael update

Since the board approval announced in September, 2016, the project continues to advance toward commercial production targeted in the third quarter of 2017. Primary ramp development is advancing on schedule with approximately 25 per cent completed and the project received delivery of its new mobile equipment, including a new scoop and bolter. Progress is also being made in the refurbishment of other equipment transferred from the Nuestra Senora mining operations. The electrical substation has been energized and water storage facilities have been constructed. Please see the company's website for photos updating the project's status.

The company also continues to make progress on reducing the initial capital required to advance the project to commercial production. The prefeasibility study released in April, 2016, estimated capital at approximately $22-million, excluding working capital requirements. The company has been able to reduce that capital requirement to approximately $18-million through improvements in mine design, lower-Mexican-peso-to-U.S.-dollar exchange rates (from 16:1 to 18.5:1), and refurbishing existing equipment from Nuestra Senora, as previously noted. The prefeasibility study assumed that mine equipment from existing operations would not be used at San Rafael. Where practical and possible, the company is transferring equipment such as scoops, jumbos, compressors and generators, among other existing assets. Additionally, a continuing review of development plans, including relocation of the underground shop, has yielded quantifiable benefits early in the project development. The project pretax internal rate of return increases to over 100 per cent after adjusting the prefeasibility study for the lower capital requirements and current commodity prices (for instance, the Mexican-peso-to-U.S.-dollar rate of 18.5:1, a silver price of $16.60 per ounce, a lead price of $1.05 per pound and a zinc price of $1.25 per pound).

Furthermore, management has commenced activities at the previously operating El Cajon mine to bring the mine back into limited operation in early 2017 as the Nuestra Senora mine begins its planned closure. The targeted 230,000 tonnes of mineralized material require minimal capital development and benefits from the cost reductions implemented last year under the company's new management team. Dewatering of the existing mine workings has reached the targeted elevation and development material is being stockpiled for future processing. The location of the targeted material is not affected by the continuing boundary issue. Approximately 35 metres of the planned 110 m top cut are complete and work on the bottom cut will commence in the coming weeks.

Potential U.S. exchange listing

Since early in the second quarter of 2016, Americas Silver has been studying the benefits of a listing on the NYSE MKT. A number of the company's silver-producing peers are either dual listed on U.S. and Canadian stock exchanges, or solely listed in the United States. Such companies are shown to have a greater average daily trading volume, a greater number of U.S. retail investors, a significantly deeper pool of capital and on average higher valuations, which collectively result in higher trading multiples and share prices when compared with their peers listed solely on a Canadian stock exchange.

The company began the initial listing process on the NYSE MKT to target the higher valuation exhibited in dual-listed companies. The exchange requires the company to undertake a share consolidation in order to enable the company to satisfy the NYSE MKT minimum listing requirement of $2 (U.S.) per share, among other requirements. The management information circular with the specific particulars of the consolidation was mailed to shareholders in advance of the scheduled shareholder meeting on Dec. 19, 2016, to allow existing shareholders to vote on this measure. Additionally, both Glass Lewis and Institutional Shareholder Services (ISS), leading independent proxy advisory firms which provide voting recommendations to institutional investors, have recommended that shareholders of Americas Silver vote in favour of the consolidation resolution. Further updates will follow in due course as more information is available.

Americas Silver to present at Scotiabank Conference

Scotiabank is hosting a precious metals conference in Toronto on Dec. 7, 2016, at the Ritz Carlton. President and chief executive officer Darren Blasutti will be presenting at the conference and available to meet with investors in one-on-one meetings.

We seek Safe Harbor.