Mr. Rob Henderson reports

AMERIGO ANNOUNCES 2016 AND Q4-2016 FINANCIAL RESULTS; ANNUAL 2016: $9.6 MILLION IN OPERATING CASH FLOW, NET LOSS OF $7.5 MILLION; RECORD ANNUAL COPPER PRODUCTION

Amerigo Resources Ltd. today released financial results for the year ended Dec. 31, 2016. The company posted revenue of $91.4-million (U.S.), operating cash flow before working capital changes of $9.6-million (U.S.) and a net loss of $7.5-million (U.S.). In the fourth quarter of 2016, the company posted revenue of $29.5-million (U.S.), operating cash flow before working capital changes of $7-million (U.S.) and net earnings of $3-million (U.S.). Cash balance was $15.9-million (U.S.) at Dec. 31, 2016. Rob Henderson, Amerigo's president and chief executive officer, stated: "The increase in copper price and the good production from the high-grade historic Cauquenes deposit are starting to translate into positive earnings performance. In 2017, we plan to invest $30-million (U.S.) at MVC to substantially increase copper production and reduce cash costs. We remain focused on reducing costs, improving liquidity and delivering against our targets to build value." All amounts are in U.S. dollars, unless otherwise specified.

Annual financial results:

• Gross tolling revenue was $124.4-million (2015: $73.8-million), mainly due to a 52-per-cent increase in copper production. The group's recorded copper tolling price was $2.25 per pound (2015: $2.47 per pound). Molybdenum production was restarted in the second half of 2016. Revenue after notional items was $91.4-million (2015: $52.6-million). In 2015, preoperating revenue of $5.1-million from Cauquenes was excluded from revenue.
• Tolling and production costs were $92-million (2015: $65.7-million), an increase of 40 per cent, driven by a 52-per-cent increase in copper production. Preoperating costs of $5.9-million from Cauquenes were excluded from 2015 tolling and production costs. Unit tolling and production costs were $1.64 per pound (2015: $1.76 per pound).
• Cash cost (a non-GAAP (generally accepted accounting principles) measure equal to the aggregate of smelting and refining charges, tolling/production costs, net of inventory adjustments and administration costs, net of byproduct credits) before DET notional copper royalties and DET molybdenum royalties decreased to $1.73 per pound (2015: $2.18 per pound), due to higher production.
• Total cost (a non-GAAP measure equal to the aggregate of cash cost, DET notional copper royalties and DET molybdenum royalties of 38 cents per pound, and depreciation of 25 cents per pound) decreased to $2.36 per pound (2015: $2.85 per pound), due to lower cash cost.
• Gross loss was $600,000 (2015: $13-million), and net loss was $7.5-million (2015: $16.9-million).
• In 2016, the group generated operating cash before changes in non-cash working capital of $9.6-million (2015: used cash flow in operations before changes in non-cash working capital of $5-million).

Production:

• Two thousand sixteen production was 56.8 million pounds of copper, 52 per cent higher than the 37.3 million pounds produced in 2015.
• Two thousand sixteen copper production includes 32.7 million pounds from Cauquenes, 21.1 million pounds from fresh tailings and three million pounds from Maricunga.
• The ramp up in production from Cauquenes in 2016 progressed in line with expectations. Average tonnes per day of 61,615 exceeded design rates of 60,000 tonnes per day, and plant recovery averaged 31.1 per cent in the year. In the fourth quarter of 2016, MVC achieved the project completion criteria set by the lenders which financed phase I of the Cauquenes expansion.
• Molybdenum production restarted in August, 2016, with an annual production of 500,000 pounds. The operation of the molybdenum plant has been outsourced to a subcontractor which refurbished the plant with a $1-million capex investment, which is being paid by MVC over the course of three years.

Cash and working capital:

• The group's cash balance was $15.9-million at Dec. 31, 2016 (Dec. 31, 2015: $9-million), with working capital of $600,000 (Dec. 31, 2015: working capital deficiency of $6-million).
• The group's cash balance at Dec. 31, 2016, includes $9.2-million in operating accounts and $6.7-million in a debt service reserve account (DSRA), required under the terms and provisions of MVC's finance agreement with the lenders which financed the first phase of the Cauquenes expansion. Proceeds in the DSRA must be used to: (i) pay the principal and interest of the bank loan, and the amounts owing under a related interest rate swap if MVC has insufficient proceeds to make these payments, and (ii) finance MVC's operating expenses. If it becomes necessary to finance MVC's operations with proceeds from the DSRA, MVC must replenish into the DSRA at each month-end the proceeds necessary to maintain a balance equal to 100 per cent of the sum of the principal and interest pursuant to the bank loan, and the interest rate swap that are payable in respect of the following six months.

Outlook:

• MVC estimates 2017 production of 60 million to 65 million pounds of copper at an annual cash cost of $1.60 to $1.75 per pound.
• MVC expects to produce 1.5 million pounds of molybdenum.
• Amerigo is advancing debt financing discussions to complete the construction of phase II of the Cauquenes expansion project in the second half of 2018. The project has an estimated cost of $30-million and is planned to increase production to 87 million pounds of copper per year at an estimated cash cost of $1.40 per pound.

The information in this news release and the selected financial information contained should be read in conjunction with the audited consolidated financial statements, and management's discussion and analysis for the years ended Dec. 31, 2016, and 2015, which will be available at the company's website and on SEDAR.

About Amerigo Resources Ltd.

Amerigo Resources is an innovative copper producer with a long-term relationship with Codelco, the world's largest copper producer. Amerigo produces copper concentrate at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine.

                          COMPARATIVE ANNUAL OVERVIEW

                                                               Years ended Dec. 31,       
                                                               2016           2015

Copper produced (million pounds)(1)(2)                         56.8           37.3
Copper delivered (million pounds)(1)(2)                        56.3           37.2
Percentage of production from historic tailings                 58%            29%
Revenue (U.S. $ thousands)(3)                               $91,388        $52,623
DET notional copper royalties (U.S. $ thousands)             20,646         13,674
Tolling and production costs (U.S. $ thousands)              92,011         65,656
Gross (loss) (U.S. $ thousands)(5)                             (623)       (13,033)
Net (loss) (U.S. $ thousands)                                (7,531)       (16,933)
Operating cash flow (U.S. $ thousands)(4)                     9,555         (4,998)
Cash flow paid for plant expansion (U.S. $ thousands)        (8,339)       (52,391)
Cash and cash equivalents (U.S. $ thousands)                 15,921          9,032
Borrowings (U.S. $ thousands)                                69,847         72,645
Gross copper tolling  price (U.S. $/lb)                        2.25           2.47

(1) Copper production is conducted under tolling agreements with DET and Maricunga.
(2) Includes 4.3 million pounds produced from Cauquenes in 2015. For accounting
purposes, revenue of $5.1-million and costs of $5.9-million associated with the
Cauquenes production were excluded from operating results, cash cost and total cost
calculations, and accounted for as a $800,000 preoperating charge to capital
expenditures.
(3) Revenue is reported net of notional items (smelting and refining charges, DET
notional copper royalties, and transportation costs).
(4) Operating cash flow before changes in non-cash working capital.
(5) 5 Total borrowings at Dec. 31, 2016, include short- and long-term portions of
$10.7-million and $59.1-million, respectively.

We seek Safe Harbor.