Ms. Aurora Davidson reports

AMERIGO REPORTS Q2 2023 PRODUCTION RESULTS AND PROVIDES MVC OPERATIONAL UPDATE

Amerigo Resources Ltd. has released production results for the quarter ended June 30, 2023 (Q2 2023), from Minera Valle Central (MVC), the company's 100-per-cent-owned operation located near Rancagua, Chile. Dollar amounts in this news release are in United States dollars unless indicated otherwise.

"MVC's copper production in the second quarter was 13.6 million pounds. As expected, the quarter was impacted by our eight-day annual plant maintenance shutdown but unexpectedly impacted by a full shutdown on June 23, 2023, through the end of the quarter. The extraordinary flooding that severed MVC's connection to Chile's central power grid, causing the shutdown, resulted in 1.3 million pounds of lost copper production in June," said Aurora Davidson, Amerigo's president and chief executive officer.

Ms. Davidson added: "Using additional sources of secured power, on July 6, 2023, MVC began processing fresh tailings from El Teniente and producing 90,000 pounds of copper daily. Repair work to the infrastructure necessary for reconnection to Chile's central power grid is under way, including a revised work program with additional upgrades and repairs to increase safety levels from a similar climatic event. We currently expect fully restored operations at MVC during the last week of July."

In Q2 2023, MVC produced 13.6 million pounds (Mlb) of copper, with 65 per cent of production coming from fresh tailings. Copper production to the end of May, 2023, was trending 4 per cent over guidance. As a result of the lost production due to the climatic event, cumulative production to June 30, 2023, of 30.15 Mlb was 1.5 per cent below guidance. Amerigo's 2023 adjusted copper production guidance of 60.5 Mlb, reflecting the impact of the unexpected shutdown and announced to the market on June 30, 2023, remains in place.

Q2 2023 molybdenum production was 300,000 lb. YTD (year-to-date) molybdenum production of 600,000 lb is 10.3 per cent over guidance. Amerigo's annual molybdenum production guidance remains at one Mlb.

Amerigo's cash cost in Q2 2023 was $2.37 per pound, higher than in preceding quarters, primarily due to lower production. Before the interruption of operations due to the climatic event, MVC's YTD cash cost was $2.09/lb, below guidance.

Amerigo's quarterly copper price in Q2 2023 was $3.80/lb, compared with $4.02/lb in Q1 2023, and the company's molybdenum price was $20.76/lb, down from $31.73/lb in Q1 2023.

On June 30, 2023, cash was $31.7-million (a decrease of $6.1-million from Dec. 31, 2022), and restricted cash was $4.2-million (unchanged from Dec. 31, 2022). Outstanding bank debt was $21-million, compared with $24.5-million on Dec. 31, 2022.

On June 30, 2023, MVC's water reserves were over 10 million cubic metres, compared with 4.7 million cubic metres on March 31, 2023. Water reserves are sufficient to maintain projected Cauquenes processing rates for at least 18 months, the company's maximum forecast horizon.

Capital return strategy

Amerigo's quarterly dividend remains secure based on the company's adjusted production guidance, released on June 30, 2023. In Q2 2023, Amerigo returned $3.7-million to shareholders through the company's seventh consecutive quarterly dividend of three cents per share, and $800,000 was returned through the purchase of 700,000 common shares for cancellation through Amerigo's continuing normal course issuer bid.

Since the implementation of Amerigo's capital return strategy in September, 2021, the company has paid a cumulative dividend of 20 cents per share ($25.9-million) and used $23.7-million to purchase and cancel 20.1 million of its common shares, an 11.1-per-cent reduction in the number of common shares outstanding at the inception of the strategy.

Release of Q2 2023 financial results on Aug. 2, 2023

Amerigo will release Q2 2023 financial results at the market open on Wednesday, Aug. 2, 2023.

Investor conference call on Aug. 3, 2023

Amerigo's quarterly investor conference call will occur on Thursday, Aug. 3, 2023, at 11 a.m. PT/2 p.m. ET.

Participants can join by visiting the Emportal website and entering their name and phone number. The conference system will then call the participants and place them instantly into the call.

Alternatively, participants can dial directly to be entered into the call by an operator. Dial 1-888-664-6392 (toll-free North America) and state you wish to participate in the Amerigo Resources Q2 2023 earnings call.

About Amerigo Resources Ltd.

Amerigo Resources is an innovative copper producer with a long-term relationship with Corporacion Nacional del Cobre de Chile (Codelco), the world's largest copper producer.

Amerigo produces copper concentrate, and molybdenum concentrate as a byproduct, 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.

We seek Safe Harbor.