Ms. Aurora Davidson reports

AMERIGO REPORTS Q3 2023 PRODUCTION RESULTS

Amerigo Resources Ltd. has released production results for the quarter ended Sept. 30, 2023 (Q3 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 third quarter of 2023 was 11.1 million pounds (Mlb), aligned with our revised guidance published on Sept. 11, 2023. This revised guidance reflected the impact of severe rain in central Chile, which affected the production of historic tailings in two separate events," said Aurora Davidson, Amerigo's president and chief executive officer.

Ms. Davidson added, "MVC's operations were back to normal before the end of September, and we now expect Q4 2023 copper production to exceed the 16.6 million pounds produced during Q4 2022."

In Q3 2023, MVC produced 11.1 million pounds of copper, with 74 per cent of production coming from fresh tailings. Amerigo's total 2023 copper production is expected to exceed the revised annual guidance of 57.8 Mlb announced to the market on Sept. 11, 2023. This revised annual guidance incorporated the impact of the severe rains on MVC's Q2 2023 and Q3 2023 copper production.

Q3 2023 molybdenum production was 200,000 pounds (lb). YTD (year-to-date) molybdenum production of 800,000 lb is 3 per cent over guidance. Amerigo's annual molybdenum production guidance has been revised upward from one Mlb to 1.1 Mlb.

Amerigo's cash cost in Q3 2023 was $2.44 per pound, primarily due to temporarily reduced production levels.

Amerigo's quarterly copper price in Q3 2023 was $3.76/lb, compared with $3.80/lb in Q2 2023, and the company's molybdenum price was $23.31/lb, up from $20.76/lb in Q2 2023.

On Sept. 30, 2023, Amerigo's cash position was $13.1-million (a decrease of $24.7-million from Dec. 31, 2022), and restricted cash was $6.3-million (an increase of $2.1-million from Dec. 31, 2022). Outstanding bank debt was $21-million, compared with $24.5-million on Dec. 31, 2022.

On Sept. 30, 2023, MVC's water reserves were over 10 million cubic metres, 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 revised 2023 production guidance, released on Sept. 11, 2023, and the company's copper price outlook. In Q3 2023, Amerigo returned $3.7-million to shareholders through the company's eighth consecutive quarterly dividend of three cents per share.

Since the implementation of Amerigo's capital return strategy in September, 2021, the company has paid a cumulative dividend of 23 cents per share ($29.6-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 Q3 2023 financial results on Nov. 1, 2023

Amerigo will release its Q3 2023 financial results at the market open on Wednesday, Nov. 1, 2023.

Investor conference call on Nov. 2, 2023

Amerigo's quarterly investor conference call will occur on Thursday, Nov. 2, 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 in North America) and state you wish to participate in the Amerigo Resources Q2 2023 earnings call.

About Amerigo Resources Ltd.

Amerigo 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.

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