Ms. Aurora Davidson reports

AMERIGO ANNOUNCES 2023 RESULTS & QUARTERLY DIVIDEND

Amerigo Resources Ltd. has released financial results for the year and three months ended Dec. 31, 2023. Dollar amounts in this news release are in U.S. dollars unless indicated otherwise.

Amerigo's annual financial results included net income of $3.4 million, earnings per share ("EPS") of $0.02 and EBITDA1 of $34.6 million. In 2023, Amerigo returned $17.2 million to shareholders despite lower copper production levels due to historically significant Chilean weather events and a higher-than-normal capital expenditure ("Capex") year.

"We are pleased to report our return to normal operations in the fourth quarter, generating a strong operational and financial quarterly close for 2023. With copper prices in the neighbourhood of $3.80 per pound during the fourth quarter, we generated strong quarterly free cash flow to equity1 of $6.5 million, our ultimate financial performance measure," said Aurora Davidson, Amerigo's President and CEO.

"We have turned the page on the impact of 2023's historically significant weather events and a year of scheduled, higher-than-normal capital expenditures. Amerigo is again building cash that will be returned to shareholders, and we anticipate the further tightening of copper supply and demand fundamentals to result in stronger copper prices in 2024. Amerigo's Board of Directors declared another quarterly dividend of Cdn$0.03 per share, illustrating the continued prioritization of our strong capital return policy and reliability of our quarterly payout," she added.

Q4-2023 marked the return to normal operations and strong financial results for Amerigo. In the fourth quarter, the Company posted net income of $3.9 million (EPS of $0.02), erasing the cumulative losses posted in the first nine months of 2023. In Q4-2023, EBITDA1 was $11.2 million, and free cash flow to equity1 was $6.5 million.

On February 20, 2024, Amerigo's Board of Directors declared its tenth consecutive quarterly dividend. The dividend will be in the amount of Cdn$0.03 per share, payable on March 20, 2024, to shareholders of record as of March 6, 20244. 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 December 29, 2023 share closing price of Cdn$1.39, this represents an annual dividend yield of 8.6%3.

This news release should be read with Amerigo's audited consolidated financial statements and Management's Discussion and Analysis ("MD&A") for the years ended December 31, 2023 and 2022, available on the Company's website at www.amerigoresources.com and www.sedarplus.ca.

Highlights and Significant Items

In 2023, Amerigo's operations and financial performance were affected by heavy rains and flooding in Chile, negatively impacting copper production. Amerigo's 2023 copper production of 57.6 million pounds ("M lbs") was 10% lower than the 2022 production of 64.0 M lbs. The Company's average copper price in 2023 was also lower at $3.86 per pound ("/lb") compared to $4.01/lb in 2022.

Notwithstanding the negative production impact, the Company posted 2023 net income of $3.4 million (2022: $4.4 million) and annual EPS of $0.02 (Cdn$0.03) (2022: $0.03 (Cdn$0.03)).

The Company's revenue in 2023 was $157.5 million (2022: $168.1 million). Revenue was comprised of lower gross value of copper tolled on behalf of DET of $220.7 million (2022: $255.4 million) from lower copper production and copper prices, less notional items including DET royalties of $58.8 million (2022: $70.5 million), smelting and refining of $23.3 million (2022: $24.0 million) and transportation of $1.6 million (2022: $1.7 million), and positive fair value adjustments to settlement receivables of $1.1 million (2022: negative adjustments of $6.2 million). Revenue also included increased molybdenum revenue of $19.4 million (2022: $15.1 million) due to stronger molybdenum production and prices in 2023.

2023 copper production was 57.6 million pounds ("M lbs") (2022: 64.0 M lbs), including 35.8 M lbs from fresh tailings (2022: 37.7 M lbs) and 21.8 M lbs from the Cauquenes historical tailings (2022: 26.3 M lbs).

2023 molybdenum production was 1.2 M lbs (2022: 1.0 M lbs).

In 2023, the Company generated annual operating cash flow before changes in non-cash working capital1 of $22.3 million (2022: $34.9 million). Annual net operating cash flow in 2023 was $20.3 million (2022: $23.6 million). Free cash flow to equity1 in 2023 was $nil (2022: $17.1 million).

2023 cash cost1 was $2.17/lb (2022: $1.98/lb). The main driver of the increase in cash cost was lower copper production, which increased other direct costs ($0.17/lb) and power costs ($0.07/lb). Higher industry-wide smelting and refining charges in 2023 impacted these costs by $0.04/lb. Strong molybdenum production and prices in 2023 offset these increases with stronger by-product credits of $0.10/lb.

The Company's financial performance is sensitive to changes in copper prices. MVC's year-end provisional copper price was $3.83/lb, and final prices for October, November, and December 2023 sales will be the average London Metal Exchange ("LME") prices for January, February, and March 2024, respectively. A 10% change from the $3.83/lb provisional price used on December 31, 2023, would result in a $6.2 million change in revenue in Q1-2024 regarding Q4-2023 production.

In 2023, Amerigo returned $17.2 million to shareholders; $14.6 million was paid through Amerigo's quarterly dividend of Cdn$0.03 per share, and $2.6 million was returned through the purchase of 2.3 million common shares for cancellation through a Normal Course Issuer Bid. The Normal Course Issuer Bid was renewed on December 2, 2023, and allows Amerigo to purchase for cancellation up to 10.9 million common shares through December 1, 20242.

In 2023, net debt repayments were $5.3 million (2022: $7.0 million), and MVC drew $2.0 million from its working capital line of credit (2022: $nil). The Company's outstanding bank debt on December 31, 2023, was $20.7 million (December 31, 2022: $23.7 million). In 2023, the Company repaid all outstanding leases with payments of $1.9 million (2022: $1.0 million).

2023 was an unusually intensive Capex year for the Company, with Capex payments of $16.9 million (2022: $9.8 million). Capex included building a new Cauquenes sump with an expected life of 3.5 years, investing in risk-mitigation projects and carrying out other sustaining Capex projects.

On December 31, 2023, the Company held cash and cash equivalents of $16.2 million (December 31, 2022: $37.8 million), a restricted cash balance of $6.3 million (December 31, 2022: $4.2 million) and had a working capital deficiency of $12.3 million (December 31, 2022: working capital of $10.0 million).

Investor Conference Call on February 22, 2024

Amerigo's quarterly investor conference call will occur on Thursday, February 22, 2024, at 11:00 a.m. Pacific Standard Time/2:00 p.m. Eastern Standard Time. Participants can join by visiting https://emportal.ink/48Ie9Zs 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 Q4-2023 Earnings Call.

About Amerigo and Minera Valle Central ("MVC")

Amerigo Resources Ltd. 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 by-product 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. Tel: (604) 681-2802; Web: www.amerigoresources.com; ARG:TSX; OTCQX: ARREF.

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