Mr. Darren Blasutti reports

AMERICAS SILVER CORPORATION PROVIDES THIRD QUARTER PRODUCTION AND COST UPDATE

Americas Silver Corp. has released consolidated production and operating cost results for the third quarter of 2017 and individually for its Cosala operations and Galena complex. All figures are in U.S. dollars unless otherwise indicated.

Third quarter highlights:

• Consolidated silver production for the quarter was approximately 565,000 silver ounces and 1.1 million silver equivalent ounces, representing an increase of 1 per cent and a decrease of 6 per cent, respectively, when compared with Q2 2017 and a decrease of 5 per cent and an increase of 1 per cent, respectively, year over year.
• Consolidated cash costs for the quarter were approximately $12.61 per silver ounce, an increase of 26 per cent year over year, while consolidated all-in sustaining costs were approximately $15.92 per silver ounce, an increase of 24 per cent year over year.
• The company processed 69,000 tonnes of silver-copper El Cajon ore, producing 160,000 ounces of silver. El Cajon ore was mined in the second quarter as transitional feed to bridge the period until the commencement of San Rafael production. It was not determined to be in commercial production and was omitted from the quarterly consolidated cost calculations. Adjusting for this production, consolidated cash costs and all-in sustaining costs would have been $11.75 and $14.18 per silver ounce, respectively.
• San Rafael ore development continued to increase to approximately 1,000 tonnes per day at the end of October. The company expects San Rafael to be the sole source of mill feed by mid-November, 2017, with commercial production expected before the end of the fourth quarter. The project remains fully financed and is tracking well to budget.
• The company has performed two test runs of San Rafael ore, one at the end of September and the second at the end of October, to test the new flotation and concentrate regrind circuits. Both tests confirmed circuit performance predicted in the San Rafael prefeasibility study.
• Guidance for 2017 remains at two million to 2.5 million ounces of silver production and silver equivalent production of five million to 5.5 million ounces with projected cash costs at the high end of the ranges of $4 to $5 per silver ounce and all-in sustaining cash costs of $9 to $10 per silver ounce depending on the timing of the declaration of commercial production of San Rafael.
• The company has cash and cash equivalents of $8.7-million at Sept. 30, 2017. The company expects to release its third quarter financial results on or before Nov. 14, 2017.

"The Cosala team has done an effective job at managing the development and operations of three different mines and a successful drill program during 2017," said Darren Blasutti, president and chief executive officer of Americas Silver. "We expect this strong performance to continue through to the end of 2017 and into 2018 with San Rafael coming into production on time and on budget in the next couple of weeks. We made a prudent decision to process El Cajon ore in the third quarter that increased costs in order to free up working capital that otherwise would have been inaccessible for years."

Consolidated third quarter production details

Consolidated silver production for the third quarter of 2017 was 564,833 silver ounces, which represents an increase of 1 per cent over the previous quarter and a decrease of 5 per cent year over year. Silver equivalent production was approximately 1.1 million ounces, a decrease of 6 per cent over the previous quarter and an increase of 1 per cent year over year. The decrease in silver and silver equivalent production is primarily due to lower tonnage and grade at the Galena complex, partially offset by continuing strong production from the Nuestra Senora and El Cajon mines as the Cosala operations prepares to commence commercial production from San Rafael later in the quarter.

                        CONSOLIDATED PRODUCTION HIGHLIGHTS 
                           
                                                 Q3 2017       Q2 2017       Q3 2016

Processed ore (tonnes milled)                    174,677       179,427       166,770
Silver production (ounces)                       564,833       557,892       596,855
Silver equivalent production (ounces)          1,107,874     1,175,836     1,107,110
Silver grade (grams per tonne)                       111           107           124
Cost of sales ($ per equivalent
ounce silver) (1)                                  $9.17        $11.00        $10.25
Cash costs ($ per ounce silver) (1)               $12.61         $7.21        $10.00
All-in sustaining costs
($ per ounce silver) (1)                          $15.92        $10.65        $12.86
Zinc production (pounds)                       1,433,961     2,904,374     2,183,814
Lead production (pounds)                       5,369,482     6,435,048     7,991,507
Copper production (pounds)                       507,285       273,475       326,639

(1) Cost of sales per silver equivalent ounce, cash costs per silver ounce and 
all-in sustaining costs per silver ounce for Q3 2017 and Q2 2017 exclude 
preproduction of 160,128 and 22,549 silver ounces, respectively, and 238,919 
and 32,955 silver equivalent ounces, respectively, mined from El Cajon during 
its commissioning period and, for Q3 2017, exclude preproduction of 5,146 
silver ounces and 30,161 silver equivalent ounces mined from San Rafael during 
its commissioning period. Preproduction revenue and cost of sales from El Cajon 
and San Rafael are capitalized as an offset to development costs.

Consolidated cash costs increased 75 per cent to $12.61 per silver ounce compared with the previous quarter and 26 per cent year over year. All-in sustaining costs increased 50 per cent to $15.92 per silver ounce compared with the previous quarter and 24 per cent year over year. The increase in cash costs and all-in sustaining costs was primarily due to lower tonnage and grade at the Galena complex as the mine progressed through lower-grade areas of the mine while catching up on development in higher-grade areas and the processing of El Cajon ore in the quarter. The impact of this beneficial work will be realized starting in the fourth quarter.

Approximately 69,000 tonnes of ore from the El Cajon mine was milled in Q3 2017 as the stockpiled El Cajon silver-copper ore could not be processed with either silver-zinc-lead Nuestra Senora or San Rafael ore. The material yielded concentrates containing approximately 160,000 ounces of silver and 462,000 pounds of copper. By processing this ore before the San Rafael production start-up, approximately $3.4-million of preproduction revenue was realized that would have stayed on the stockpile until the end of the San Rafael mine life. The criteria necessary to declare sustainable commercial production of this transitional ore were determined not to have been met. As a result, the byproduct revenues and preproduction costs were omitted from the consolidated cash costs and all-in sustaining cost costs calculation. If El Cajon preproduction revenues and costs were included, the adjusted consolidated cash costs would have been approximately $11.75 per silver ounce and all-in sustaining costs would have been approximately $14.18 per silver ounce for the quarter.

Cosala operations production details

During Q3 2017, the Cosala operations progressed its transition from the existing Nuestra Senora and El Cajon mines to initial production from the San Rafael mine. Production for the Cosala operations was primarily sourced from the silver-zinc-lead-copper Nuestra Senora mine during the first two months of Q3 2017 and silver-copper El Cajon ore in September. Nuestra Senora was originally planned to cease production in early Q2 2017, but has been extended to take advantage of additional material sourced from various areas of the existing workings. It is expected that stockpiled Nuestra Senora ore will be processed during Q4 2017 up to the commencement of San Rafael ore processing in mid-November to late November.

The Cosala operations produced 277,752 ounces of silver during the third quarter of 2017 and 528,823 ounces of silver equivalent, inclusive of El Cajon and preproduction material from San Rafael. Excluding the El Cajon and San Rafael material, the Cosala operations produced 112,478 ounces of silver during the third quarter of 2017 and 259,743 ounces of silver equivalent during the same period at cost of sales of $1.32 per silver equivalent ounce, cash costs and all-in sustaining costs of $3.16 per silver ounce. While silver production increased 15 per cent compared with the previous quarter and 14 per cent year over year, silver equivalent production decreased 6 per cent compared with the previous quarter as a result of lower byproduct production of zinc and lead from Nuestra Senora partially offset by increased copper production. Cash costs and all-in sustaining costs improved year over year by 68 per cent and 73 per cent, respectively, as Nuestra Senora ore was produced with lower operating costs and minimal development work.

                         COSALA OPERATIONS HIGHLIGHTS  
                             
                                              Q3 2017      Q2 2017      Q3 2016

Processed ore (tonnes milled)                 134,273      134,778      121,875
Silver production (ounces)                    277,752      242,523      242,916
Silver equivalent production (ounces)         528,823      564,112      436,774
Silver grade (grams per tonne)                     74           66           75
Cost of Sales ($ per
equivalent ounce silver) (1)                    $1.32        $7.57        $9.96
Cash costs ($ per ounce silver)1                $3.16      ($2.81)        $9.84
All-in sustaining costs
($ per ounce silver)1                           $3.16      ($2.81)       $11.72
Zinc production (pounds)                    1,433,961    2,904,374     ,183,814
Lead production (pounds)                      793,058    1,351,258      885,560
Copper production (pounds)                    507,285      273,475      326,639

(1) Cost of sales per silver equivalent ounce, cash costs per silver 
ounce and all-in sustaining costs per silver ounce for Q3 2017 and 
Q2 2017 exclude preproduction of 160,128 and 22,549 silver ounces, 
respectively, and 238,919 and 32,955 silver equivalent ounces, 
respectively, mined from El Cajon during its commissioning period, and 
for Q3 2017 excludes preproduction of 5,146 silver ounces and 30,161 
silver equivalent ounces mined from San Rafael during its commissioning 
period. Preproduction revenue and cost of sales from El Cajon and 
San Rafael are capitalized as an offset to development costs.

The company provided an exploration update for its Cosala properties on Aug. 24, 2017. The company expects to complete up to 12 additional holes in Q4 2017 to further define the geological controls and extent of mineralization in and around the known zone 120 resource. Further exploration drilling is being proposed for 2018. Results from the continuing 2017 drilling are expected to be released in early 2018.

San Rafael update

The company continued to advance toward production at the San Rafael project during the quarter. Underground development is progressing as expected with ore production ramping up from multiple working faces. The reconfigured Los Braceros mill has been successfully tested with San Rafael ore. Concentrates containing approximately 5,000 ounces of silver, 211,000 pounds of zinc and 134,000 pounds of lead were produced from approximately 6,000 tonnes processed during the quarter. A second trial campaign of approximately 7,000 tonnes occurred in late October to further refine operating parameters. The results of the two campaigns were positive with recoveries and concentrate grades supportive of estimates used in the April, 2016, prefeasibility study. The surface ore stockpile contains approximately 20,000 tonnes of San Rafael ore and is increasing by nearly 1,000 tonnes per day. The mill is expected to shift to San Rafael ore on a full-time basis in mid-November with commercial production to be declared before the end of the quarter. The project remains fully financed and is tracking well to budget.

Galena complex production details

The Galena complex produced 287,081 ounces of silver during the third quarter of 2017 and 579,051 ounces of silver equivalent during the same period at cost of sales of $12.69 per silver equivalent ounce, cash costs of $16.31 per silver ounce and all-in sustaining costs of $20.92 per silver ounce. Silver and silver equivalent production decreased 9 per cent and 5 per cent, respectively, compared with the previous quarter, and decreased 19 per cent and 14 per cent, respectively, year over year. Cash costs increased by 15 per cent compared with the previous quarter and 61 per cent year over year and all-in sustaining costs were up 4 per cent compared with the previous quarter and 53 per cent year over year. Both silver and lead production were below expectations in the third quarter due to a shortfall in tonnage and grade. With the San Rafael transition going as expected, management is focused on returning Galena to an acceptable level of operating performance by advancing several planning-related initiatives, including grade optimization, in order to recapture and build on the gains which were made in 2015 and 2016.

                               GALENA COMPLEX HIGHLIGHTS      
                          
                                                    Q3 2017      Q2 2017      Q3 2016

Processed ore (tonnes milled)                        40,404       44,649       44,895
Silver production (ounces)                          287,081      315,369      353,939
Silver equivalent production (ounces)               579,051      611,724      670,336
Silver grade (grams per tonne)                          233          231          258
Cost of sales ($ per equivalent ounce silver)        $12.69       $13.98       $10.44
Cash costs ($ per ounce silver)                      $16.31       $14.20       $10.10
All-in sustaining costs ($ per ounce silver)         $20.92       $20.03       $13.63
Lead production (pounds)                          4,576,424    5,083,790    7,105,947

About Americas Silver Corp.

Americas Silver is a silver mining company focused on growth in precious metals from its existing asset base and execution of targeted accretive acquisitions. It owns and operates the Cosala operations in Sinaloa, Mexico, and the Galena mine complex in Idaho, United States. The company has acquired an option on the San Felipe development project in Sonora, Mexico.

Daren Dell, chief operating officer and a qualified person under Canadian Securities Administrators guidelines, has approved the applicable contents of this news release.

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