Ms. Aurora Davidson reports

AMERIGO ANNOUNCES Q2 2023 RESULTS & QUARTERLY DIVIDEND

Amerigo Resources Ltd. has released its financial results for the three months ended June 30, 2023 (Q2 2023). Dollar amounts in this news release are in United States dollars unless indicated otherwise.

Amerigo's quarterly financial results were impacted by reduced copper production from Minera Valle Central (MVC), the company's 100-per-cent-owned operation near Rancagua, Chile, and $2.7-million in negative price settlement adjustments to prior quarter copper sales. Copper production was impacted by MVC's scheduled eight-day annual maintenance shutdown and by an additional eight days of lost production in June, 2023, due to flooding in central Chile.

Quarterly results included a net loss of $3.8-million, loss per share (LPS) of two cents (three Canadian cents) and EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.7-million. Following year-to-date capital returns to shareholders of $10-million, capex (capital expenditure) payments of $9.2-million, and debt and lease repayments of $5.4-million, cash and restricted cash on June 30, 2023, was $35.9-million, compared with starting 2023 cash and restricted cash of $42-million.

"Our second-quarter production and financial results were impacted by a total operations shutdown at the end of June that will also be felt in the third quarter," said Aurora Davidson, Amerigo's president and chief executive officer. "Prior to the flooding event, our copper production outperformed guidance by 4 per cent. Because of that outperformance, although we adjusted our annual copper production guidance by 3 per cent due to the flood, our financial health and outlook remain robust. Amerigo remains committed to its capital return strategy. Despite the disruption, I am pleased to announce that the company's eighth consecutive dividend has been declared," she added.

On July 31, 2023, Amerigo's board of directors declared a quarterly dividend of three Canadian cents per share, payable on Sept. 20, 2023, to shareholders of record as of Aug. 30, 2023. Amerigo designates the entire amount of this taxable dividend to be an eligible dividend for purposes of the Income Tax Act (Canada), as amended from time to time. Based on Amerigo's June 30, 2023, share closing price of $1.54 (Canadian), this represents an annual dividend yield of 7.79 per cent.

This news release should be read with Amerigo's interim consolidated financial statements and management's discussion and analysis (MD&A) for Q2 2023, available on the company's website and on SEDAR.

Highlights and significant items:

• Amerigo's Q2 2023 financial performance was impacted by MVC's planned eight-day annual plant maintenance shutdown, but unexpectedly affected by a complete shutdown commencing on June 23, 2023, caused by extraordinary flooding that disconnected MVC from Chile's central power grid and resulted in 1.3 million pounds of lost copper production in the quarter, bringing production 9 per cent lower than in the three months ended June 30, 2022 (Q2 2022). On July 21, 2023, MVC was reconnected to the power grid, enabling MVC to resume normal operations on July 22, 2023.
• The 8-per-cent decline in copper deliveries and a lower average copper price of $3.80 per pound (lb), compared with an average copper price of $4.10/lb during Q2 2022, resulted in lower gross copper revenue of $10.9-million in the quarter.
• Net loss during Q2 2023 was $3.8-million, compared with a net loss of $5.1-million in Q2 2022, due to stronger foreign exchange gains and lower income tax expense.
• LPS during Q2 2023 was two cents (three Canadian cents) (Q2 2022: three cents (four Canadian cents)).
• Q2 2023 copper production was 13.6 million pounds (Mlb) (Q2 2022: 14.9 Mlb), including 8.8 Mlb from fresh tailings (Q2 2022: 9.1 Mlb) and 4.8 Mlb from Cauquenes historical tailings (Q2 2022: 5.8 Mlb).
• Molybdenum production during Q2 2023 was 300,000 lb (Q2 2022: 200,000 lb). MVC's molybdenum price increased to $20.76/lb (Q2 2022: $17.58/lb), resulting in a Q2 2023 molybdenum revenue of $2.9-million (Q2 2022: $2.2-million).
• Copper tolling revenue is calculated from the gross value of copper produced in Q2 2023 of $52.8-million (Q2 2022: $63.7-million) and negative fair value adjustments to settlement receivables of $3.5-million (Q2 2022: $7.8-million), less notional items including DET royalties of $14-million (Q2 2022: $18.3-million), smelting and refining of $5.7-million (Q2 2022: $5.8-million), and transportation of $400,000 (Q2 2022: $400,000).
• The company used operating cash flow before changes in non-cash working capital1 of $2.3-million in Q2 2023 (Q2 2022: $4-million). Quarterly net operating cash flow was $500,000 (Q2 2022: $500,000). There was negative free cash flow to equity of $12.8-million in Q2 2023 compared with $10.7-million in Q2 2022.
• Q2 2023 cash cost was $2.37/lb (Q2 2022: $2.01/lb), impacted by lower production, which resulted in increases of 29 cents/lb in other direct costs, eight cents/lb in power costs, three cents/lb in smelting and refining charges, and three cents/lb in administration costs. The increases were mitigated by stronger molybdenum byproduct credits of six cents/lb from stronger molybdenum production and prices.
• Amerigo's financial performance is sensitive to changes in copper prices. MVC's Q2 2023 provisional copper price was $3.80/lb. The final prices for April, May and June, 2023, sales will be the average London Metal Exchange (LME) prices for July, August and September, 2023, respectively. A 10-per-cent increase or decrease from the $3.80/lb provisional price would result in a $5.2-million change in revenue in Q3 2023 regarding Q2 2023 production.
• In Q2 2023, Amerigo returned $4.5-million to shareholders (Q2 2022: $13-million), including $3.7-million through Amerigo's regular quarterly dividend of three Canadian cents per share (Q2 2022: $4.1-million), and $800,000 used to repurchase for cancellation 700,000 common shares (Q2 2022: $8.9-million used to repurchase 6.8 million common shares).
• In Q2 2023, the company made scheduled debt payments of $3.5-million (Q2 2022: $3.5-million), lease repayments of $1.7-million (Q2 2022: $200,000), and paid $4.8-million for plant and equipment (Q2 2022: $3-million).
• On June 30, 2023, the company held cash and cash equivalents of $31.7-million (Dec. 31, 2022: $37.8-million), a restricted cash balance of $4.2-million (Dec. 31, 2022: $4.2-million) and had a working capital deficiency of $4.9-million (Dec. 31, 2022: working capital of $10-million).

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 they 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.