Ms. Aurora Davidson reports

AMERIGO ANNOUNCES Q3-2023 RESULTS & QUARTERLY DIVIDEND

Amerigo Resources Ltd. has released financial results for the three months ended Sept. 30, 2023 (Q3 2023). Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.

Q3 2023 results included a net loss of $5.8-million, loss per share (LPS) of four cents (five Canadian cents) and EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.2-million. Lower copper production from Minera Valle Central (MVC), the company's 100-per-cent-owned operation near Rancagua, Chile, impacted these results. The negative impact from lower production was mitigated by lower settlement adjustments to prior-quarter sales, copper royalties, and tolling and production costs quarter-on-quarter. Financial performance was also impacted by an increase of $1.4-million in unrealized foreign exchange loss and a $1.1-million environmental compliance plan.

"This was a very challenging operational quarter for Amerigo," said Aurora Davidson, Amerigo's president and chief executive officer. "However, since the end of September, we are again outperforming our production targets, which is a testament to the excellence of our operational teams. We have put this production interruption behind us and are looking ahead with even more confidence in MVC's ability to produce copper profitably and sustainably. Despite the past two challenging quarters, I am pleased to announce the board of directors has declared the company's ninth consecutive dividend. Given the combination of recent operational impacts and current economic headwinds weighing on copper prices, the board is examining the temporary modification of the quarterly and performance dividend components of our capital return strategy. While we wait for copper prices to improve, we have maintained our pause on buying back shares in the marketplace," she added.

After year-to-date capital returns to shareholders of $13.6-million, capital expenditure payments of $14.4-million, and debt and lease repayments of $5.4-million, cash and restricted cash on Sept. 30, 2023, were $19.4-million, compared with the beginning of 2023 cash and restricted cash of $42-million.

On Oct. 30, 2023, Amerigo's board of directors declared its ninth consecutive quarterly dividend. The dividend will be in the amount of three Canadian cents per share, payable on Dec. 20, 2023, to shareholders of record as of Nov. 30, 20233. 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 Sept. 29, 2023, share closing price of $1.27 (Canadian), this represents an annual dividend yield of 9.4 per cent.

This news release should be read with Amerigo's interim consolidated financial statements and management's discussion and analysis (MD&A) for Q3 2023, available on the company's website and SEDAR+.

Highlights and significant items:

• Amerigo's Q3 2023 financial performance was impacted by 31-per-cent-lower copper production compared with the quarter ended Sept. 30, 2022 (Q3 2022) due to severe rain in central Chile, which temporarily affected MVC's operations in two separate events. MVC fully resolved these disruptions and resumed normal operations and production levels on Sept. 21, 2023.
• Despite 31-per-cent-lower copper production, Q3 2023 revenue of $30.3-million was only 2 per cent lower than Q3 2022 revenue of $30.9-million due to a higher average copper price of $3.76 per pound (Q3 2022: $3.50/lb), a reduction of $8.4-million in negative settlement adjustment to prior-quarter sales, $1.6-million in lower notional items, including copper royalties to DET, and a $1.1-million increase in molybdenum revenue.
• Tolling and production costs were $32.4-million (Q3 2022: $34.4-million) due to lower copper production.
• Net loss during Q3 2023 was $5.8-million, compared with a net loss of $4.4-million in Q3 2022, primarily due to an increase of $1.4-million in unrealized foreign exchange loss and $1.1-million spent on environmental compliance plan costs which could not be capitalized under international financial reporting standards.
• LPS during Q3 2023 was four cents (five Canadian cents) (Q3 2022: three cents (three Canadian cents).
• Q3 2023 copper production was 11.1 million pounds (Q3 2022: 16 Mlb), including 8.2 Mlb from fresh tailings (Q3 2022: 8.6 Mlb) and 2.9 Mlb from historic tailings (Q3 2022: 7.4 Mlb).
• Molybdenum production during Q3 2023 was 200,000 lb (Q3 2022: 300,000 lb). MVC's molybdenum price increased to $23.31/lb (Q3 2022: $15.39/lb), resulting in a Q3 2023 molybdenum revenue of $4.6-million (Q3 2022: $3.5-million).
• Copper tolling revenue is calculated from the gross value of copper produced in Q3 2023 of $41.6-million (Q3 2022: $56.8-million) and negative fair value adjustments to settlement receivables of $400,000 (Q3 2022: $8.8-million), less notional items, including DET royalties of $10.6-million (Q3 2022: $14.3-million), smelting and refining of $4.5-million (Q3 2022: $5.9-million), and transportation of $300,000 (Q3 2022: $400,000).
• In Q3 2023, the company generated cash flow before changes in non-cash working capital1 of $2.6-million (Q3 2022: $2.6-million), used net operating cash of $7.5-million (Q3 2022: $4.1-million) and had negative free cash flow to equity (FCFE) of $2.6-million (Q3 2022: positive FCFE of $600,000).
• Q3 2023 cash cost was $2.44/lb (Q3 2022: $1.93/lb), impacted by lower production, which resulted in increases of 44 cents/lb in other direct costs, 21 cents/lb in power costs and four cents/lb in administration. Due to prevailing terms, smelting and refining costs were three cents/lb higher. The cost increases were mitigated by stronger molybdenum byproduct credits of 19 cents/lb from higher prices.
• Amerigo's financial performance is sensitive to changes in copper prices. MVC's Q3 2023 provisional copper price was $3.76/lb. The final prices for July, August and September, 2023, sales will be the average London Metal Exchange (LME) prices for October, November and December, 2023, respectively. A 10-per-cent increase or decrease from the $3.76/lb provisional price would result in a $4.1-million change in revenue in Q4 2023 regarding Q3 2023 production.
• In Q3 2023, Amerigo returned $3.7-million to shareholders (Q3 2022: $3.8-million) through Amerigo's quarterly dividend of three Canadian cents per share. Year-to-date 2023 capital returns were $13.6-million: $11-million paid in quarterly dividends and $2.6-million returned through purchasing 2.3 million common shares for cancellation through a normal course issuer bid.
• On Sept. 30, 2023, the company held cash and cash equivalents of $13.1-million (Dec. 31, 2022: $37.8-million), restricted cash of $6.3-million (Dec. 31, 2022: $4.2-million), had a working capital deficiency of $12.7-million (Dec. 31, 2022: working capital of $10-million), and had not used funds from its $15-million working capital line of credit.

Investor conference call on Nov. 2, 2023

Amerigo's quarterly investor conference call will occur on Thursday, Nov. 2, 2023, at 11 a.m. Pacific Daylight Time/2 p.m. Eastern Daylight Time. Participants can join on-line by 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 Q3 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.