Mr. Darren Blasutti reports

AMERICAS SILVER CORPORATION ANNOUNCES 2016 PRODUCTION AND COSTS, 2017 GUIDANCE, AND GLENCORE PRE-PAYMENT FACILITY

Americas Silver Corp. has released its preliminary consolidated production and operating cost results for fiscal 2016 and guidance for fiscal 2017. A subsidiary of the company has also entered into a non-dilutive $15-million prepayment facility with a subsidiary of Glencore PLC, with proceeds used to support the development costs for the San Rafael zinc-lead-silver project within the Cosala district of Sinaloa, Mexico. The information provided in this press release is preliminary and unaudited; final results in the 2016 annual consolidated financial statements and management's discussion and analysis (MD&A) may differ. All amounts are in U.S. dollars unless otherwise indicated.

Consolidated 2016 results and 2017 guidance

The company had consolidated silver production of 2.4 million silver ounces and 4.7 million silver-equivalent ounces, slightly below the 2016 guidance estimates of 2.5 million silver ounces and five million silver-equivalent ounces. This shortfall to guidance was primarily due to the ground movement at the Nuestra Senora mine announced in April, 2016, that impaired access to the mine for the entire second quarter as development crews worked to re-establish access. Despite this ground movement, both silver cash costs and all-in sustaining costs (AISC) met guidance at $10.00 per ounce and $12.71 per ounce, a decrease of 22 per cent and 26 per cent, respectively, as a result of cost discipline and the increase in the sales price of its byproduct metals. Please see the attached table for details. The cash balance as at Dec. 31, 2016, was $24.1-million.

                                CONSOLIDATED RESULTS AND GUIDANCE                               
                       
                                          2015 actual       2016 actual           2017 guidance      
             
Silver production                            2.65M oz          2.39M oz          2.0 to 2.5M oz
Silver-equivalent production (1)             4.87M oz          4.68M oz          5.5 to 6.0M oz
Silver cost of sales (1)               $10.80/oz AgEq     $9.92/oz AgEq       $8 to $10/oz AgEq
Silver cash costs (2)                       $12.75/oz         $10.00/oz             $4 to $5/oz
Silver all-in sustaining costs (2)          $17.16/oz         $12.71/oz            $9 to $10/oz

(1) Silver-equivalent figures for 2015 are based on $17.00 per ounce silver, 95 cents per pound zinc, 90 cents per pound lead and $2.90 per pound copper. Silver-equivalent figures for 2016 are based on $14.50 per ounce silver, 75 cents per pound zinc, 80 cents per pound lead and $2.00 per pound copper. Silver-equivalent figures and silver cost guidance for 2017 are based on $16.50 per ounce silver, $1.15 per pound zinc, 95 cents per pound lead and $2.50 per pound copper.

(2) Cash cost per ounce and all-in sustaining cost per ounce are non-international financial reporting standards financial performance measures with no standardized definition. For further information and detailed reconciliations, please refer to the company's 2015 year-end and quarterly MD&A. The performance measures for the year ended Dec. 31, 2016, are preliminary throughout this press release subject to refinement from the company's year-end financial results to be released on or before March 14, 2017.

As previously announced, the company began construction of the San Rafael project at its Cosala operations after receiving board approval at the end of third quarter 2016. The project is targeted to be in production by the end of third quarter 2017 at a reduced initial capital cost of $18-million. The Nuestra Senora and El Cajon mines are expected to operate up to the end of second quarter 2017, after which the project is expected to begin preproduction operations during third quarter 2017. As a result, the first half of the year is expected to have results similar to those experienced in 2016, followed by a gradual reduction in silver cash costs and AISC in the third quarter, with the project in commercial production in the fourth quarter with significantly lower silver cash costs and AISC. The Galena mine is expected to continue to operate similarly as in 2016 with a continuing focus on mining silver-lead mineralization on the 3200 and 4900 levels of the mine. As a result, consolidated silver cash costs are projected to fall approximately 55 per cent year over year to between $4 and $5 per ounce, and silver all-in sustaining cash costs are projected to drop approximately 25 per cent year over year to $9 to $10 per ounce.

"We are very excited for our investors as the San Rafael project is developed and transitions into production this year. The transition will prove to be a significant catalyst for our share price as it will drive our consolidated costs lower to silver-industry, first-quartile, consolidated cash costs and all-in sustaining costs, and create considerable free cash flow. This is an accomplishment which neither of the predecessor companies ever envisioned," said Darren Blasutti, president and chief executive officer of Americas Silver. "Though 2016 silver and silver-equivalent production was slightly below guidance, the company was able to maintain its pattern of cost control and benefited from higher byproduct metal prices."

Consolidated production details

Consolidated silver production for the 2016 was approximately 2.39 million ounces, which represents an decrease of 10 per cent compared with 2015. Silver-equivalent production was approximately 4,682,000 ounces, down 4 per cent compared with 2015. Consolidated cash costs improved by 22 per cent to $10.00 per silver ounce compared with 2015, while AISC improved by 26 per cent to $12.71 per silver ounce compared with 2015. In addition, lead production increased 27 per cent year over year, as the Galena complex continued to successfully increase silver-lead ore production as part of management's strategic vision for the mine.

                   CONSOLIDATED PRODUCTION HIGHLIGHTS                    
                    
                                                       2016         2015
   
Processed ore (tonnes milled)                       671,616      657,617     
Silver production (ounces)                        2,389,808    2,652,026   
Silver-equivalent production (ounces)             4,682,030    4,866,145   
Silver grade (grams per tonne)                          126          141  
Cost of sales ($ per equivalent ounce silver)         $9.92       $10.80  
Cash costs ($ per ounce silver)                      $10.00       $12.75  
All-in sustaining costs ($ per ounce silver)         $12.71       $17.16  
Zinc (pounds)                                    10,488,733   11,647,962  
Lead (pounds)                                    29,067,673   22,905,826   
Copper (pounds)                                   1,058,250    2,054,896

Galena complex production details

The Galena complex produced approximately 1,384,000 ounces of silver and approximately 2,756,000 silver-equivalent ounces during 2016 at cash costs of $11.60 per silver ounce and all-in sustaining costs of $15.18 per silver ounce. Silver production decreased 7 per cent compared with 2015, while silver-equivalent production increased 12 per cent for the same period as a result of a 43-per-cent increase in lead production. Silver cash costs improved 19 per cent compared with 2015, and AISC also improved 20 per cent for the same period.

The Galena complex had a solid year with performance meeting expectations, and the company expects the mine to provide consistent, predictable performance for 2017, similar to that experienced in 2016. As a result of decisions and actions taken more than a year ago, producing areas were well balanced across several levels of the mine. Given the recently improved economic outlook for the asset and continued drilling and capital development, further areas for improvement have been identified, including near-term development opportunities on both the 3200 and 4900 levels of the mine. These projects promise to add further operational flexibility and consistency in the future.

                        GALENA COMPLEX HIGHLIGHTS                       
                        
                                                       2016         2015
    
Processed ore (tonnes milled)                       171,107      151,469    
Silver production (ounces)                        1,383,689    1,489,736    
Silver-equivalent production (ounces)             2,756,331    2,464,841    
Grade (grams per tonne)                                 266          324   
Cost of sales ($ per equivalent ounce silver)        $10.43       $12.32   
Cash costs ($ per ounce silver)                      $11.60       $14.27   
All-in sustaining costs ($ per ounce silver)         $15.18       $18.92   
Lead (pounds)                                    24,879,134   17,436,671   
Copper (pounds)                                           -      304,753

Cosala operations production details

The Cosala operations produced approximately 1,006,000 ounces of silver during 2016 and approximately 1,926,000 ounces of silver equivalent during the same period at cash costs of $7.79 per silver ounce and all-in sustaining costs of $9.31 per silver ounce. Silver production decreased 13 per cent compared with 2015, while silver-equivalent production decreased by 20 per cent. Cash costs per silver ounce improved by 28 per cent compared with 2015, while AISC improved 37 per cent year over year.

                       COSALA OPERATIONS HIGHLIGHTS                     
                   
                                                       2016         2015

Processed ore (tonnes milled)                       500,509      506,148    
Silver production (ounces)                        1,006,119    1,162,290   
Silver-equivalent production (ounces)             1,925,699    2,401,303   
Silver grade (grams per tonne)                           78           86   
Cost of sales ($ per equivalent ounce silver)         $9.19        $9.25   
Cash costs ($ per ounce silver)                       $7.79       $10.80   
All-in sustaining costs ($ per ounce silver)          $9.31       $14.89   
Zinc (pounds)                                    10,488,773   11,647,962   
Lead (pounds)                                     4,188,539    5,469,155   
Copper (pounds)                                   1,058,250    1,750,143 

The Cosala operations made progress on several fronts. Cost containment efforts continue to lower costs despite lower silver production and silver-equivalent production than the previous year. At the Nuestra Senora mine, activities began to slow as preparations were made to transition to other ore sources. Dewatering is completed, and stope development continues for El Cajon with production supplementing Nuestra Senora feed through the first half of 2017. Most importantly for the company, San Rafael construction began in the third quarter as previously discussed.

An exploration budget of $2-million has been approved for the Cosala operations focusing on exciting targets in the San Rafael/El Cajon corridor and on the San Rafael 120 zone to increase confidence in the known resource and to expand mineralization to the southeast. This is the first exploration drilling at the Cosala operations in over four years.

Glencore prepayment facility and concentrate sales agreements

The company has entered into a low-interest-rate $15-million concentrate prepayment facility with Metagri SA de CV, a subsidiary of Glencore, to finance a portion of the development costs for the project. Under the terms of the facility, Glencore will provide the company with a four-year facility of up to $15-million to be used for the development of the project and commercial production of its concentrates. The facility is secured by a promissory note in the amount of up to $15-million issued by the company to Glencore and a parent company guarantee. The company has also entered into four-year offtake agreements with Glencore for the zinc and lead concentrates produced from the project. Glencore will pay for the concentrates at prevailing market prices for silver, lead and zinc, less treatment and refining charges.

"The company is honoured to be entering into this strategic financing agreement and exclusive offtake agreement with one of the world's premier metal traders," said Warren Varga, chief financial officer. "This agreement marks a major milestone for Americas Silver. Glencore's due diligence on the project and support of the management team indicates significant approval of the company and its strategic direction. Furthermore, this low-cost financing recapitalizes its existing debt and ensures that Americas Silver will have sufficient capital to further advance operations and continue with its growth strategy without dilution to shareholders."

The company has changed its resource estimate timing to a cut-off of June 30 to better support its annual budgeting and life-of-mine modelling.

Daren Dell, chief operating officer and a qualified person under Canadian Securities Administrators guidelines, has approved the applicable contents of this news release.

We seek Safe Harbor.