Amerigo Announces Q3-2017 Production Results

Vancouver, British Columbia--(Newsfile Corp. - October 16, 2017) - Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") announced today production results for the third quarter of 2017 from Minera Valle Central ("MVC"), the Company's 100% owned operation located near Rancagua, Chile.

Operational Highlights for Q3-2017:

In Q3-2017, MVC produced 15.5 million pounds of copper at a cash cost of $1.69 per pound, pursuant to a tolling agreement with Codelco's Division El Teniente. Production guidance for 2017 is maintained at 60 to 65 million pounds of copper and 1.5 million pounds of molybdenum, at an annual cash cost of $1.60 to $1.75 per pound.

Construction of MVC's Phase Two expansion project is underway and is on track for completion in Q3-2018 with full production expected in Q4-2018. The project will increase MVC's production to 85 to 90 million pounds of copper per year, at an estimated cash cost of $1.40 to $1.60 per pound.

Summary of Production Results for the Most Recent Five Quarters:

Release of Financial Results for Q3-2017:

The Company will release Q3-2017 financial results at market open on Wednesday November 8, 2017, followed by an investor conference call on Thursday November 9, 2017 at 11:00 am Pacific Daylight Time/2:00 pm Eastern Daylight Time.

Conference Call Participation:

To participate in the call, please dial 1-866-225-0198 (Toll-Free North America) and let the operator know you wish to participate in the Amerigo Resources conference call. Media are invited to attend on a listen-only basis. Following management's discussion of the quarterly results, the analyst and investment community will be invited to ask questions.

About the Company:

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporaci??n Nacional del Cobre de Chile ("Codelco"), the world's largest copper producer. Amerigo produces copper concentrate at its 100% owned Minera Valle Central 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; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.

For further information, please contact:

Rob Henderson, President and CEO
(604) 697-6203
Aurora Davidson, Executive Vice-President and CFO
(604) 697-6207

Cautionary Note Regarding Forward-Looking Information

This news release contains certain forward-looking information and statements as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These statements relate to future events or the Company's future performance. All statements other than statements of historical fact are forward-looking statements. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "should", "believe" and similar expressions is intended to identify forward-looking statements. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot assure that it will achieve or accomplish the expectations, beliefs or projections described in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such statements. These forward-looking statements include but are not limited to, statements concerning:

• a forecasted increase in production and a reduction in operating costs;
• our strategies and objectives;
• our estimates of the availability and quantity of tailings, and thequality of our mine plan estimates;
• prices and price volatility for copper and other commodities and ofmaterials we use in our operations;
• the demand for and supply of copper and other commodities and materialsthat we produce, sell and use;
• sensitivity of our financial results and share price to changes incommodity prices;
• our financial resources and our expected ability to meet our obligationsfor the next 12 months;
• interest and other expenses;
• domestic and foreign laws affecting our operations;
• our tax position and the tax rates applicable to us;
• the timing and costs of construction and tolling/production of, and theissuance and maintenance of the necessary permits and other authorizationsrequired for, our expansion projects, including the expansion for theCauquenes deposit and the timing of ramp-up to full production from Cauquenes;
• our ability to procure or have access to financing and to comply with ourloan covenants;
• the production capacity of our operations, our planned production levelsand future production;
• potential impact of production and transportation disruptions;
• hazards inherent in the mining industry causing personal injury or loss oflife, severe damage to or destruction of property and equipment, pollution orenvironmental damage, claims by third parties and suspension of operations
• our planned capital expenditures (including our plan to upgrade ourexisting plant and operations) including the timing and cost of completion ofour capital projects;
• estimates of asset retirement obligations and other costs related toenvironmental protection;
• our future capital and production costs, including the costs and potentialimpact of complying with existing and proposed environmental laws andregulations in the operation and closure of our operations;
• repudiation, nullification, modification or renegotiation of contracts;
• our financial and operating objectives;
• our environmental, health and safety initiatives;
• the outcome of legal proceedings and other disputes in which we may beinvolved;
• the outcome of negotiations concerning metal sales, treatment charges androyalties;
• disruptions to the Company's information technology systems, includingthose related to cybersecurity;
• our dividend policy; and
• general business and economic conditions.

Inherent in forward-looking statements are risks and uncertainties beyond our ability to predict or control, including risks that may affect our operating or capital plans; risks generally encountered in the permitting and development of mineral projects such as unusual or unexpected geological formations, negotiations with government and other third parties, unanticipated metallurgical difficulties, delays associated with permits, approvals and permit appeals, ground control problems, adverse weather conditions, process upsets and equipment malfunctions; risks associated with labour disturbances and availability of skilled labour and management; fluctuations in the market prices of our principal commodities, which are cyclical and subject to substantial price fluctuations; risks created through competition for mining projects and properties; risks associated with lack of access to markets; risks associated with availability of and our ability to obtain both tailings from Codelco's Division El Teniente's current production and historic tailings from tailings deposit; risks with respect to completion of all phases of the Cauquenes expansion, the ability of the Company to draw down funds from bank facilities and lines of credit, the availability of and ability of the Company to obtain adequate funding on reasonable terms for expansions and acquisitions, including all phases of the Cauquenes expansion; mine plan estimates; risks posed by fluctuations in exchange rates and interest rates, as well as general economic conditions; risks associated with environmental compliance and changes in environmental legislation and regulation; risks associated with our dependence on third parties for the provision of critical services; risks associated with non-performance by contractual counterparties; title risks; social and political risks associated with operations in foreign countries; risks of changes in laws affecting our operations or their interpretation, including foreign exchange controls; and risks associated with tax reassessments and legal proceedings. Many of these risks and uncertainties apply not only to the Company and its operations, but also to Codelco and its operations. Codelco's ongoing mining operations provide a significant portion of the materials the Company processes and its resulting metals production, therefore these risks and uncertainties may also affect their operations and in turn have a material effect on the Company.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about:

• general business and economic conditions;
• interest rates;
• changes in commodity and power prices;
• acts of foreign governments and the outcome of legal proceedings;
• the supply and demand for, deliveries of, and the level and volatility ofprices of copper and other commodities and products used in our operations;
• the ongoing supply of material for processing from Codelco's currentmining operations;
• the ability of the Company to profitably extract and process material fromthe Cauquenes tailings deposit;
• the timing of the receipt of and retention of permits and other regulatoryand governmental approvals;
• the availability of and ability of the Company to obtain adequate fundingon reasonable terms for expansions and acquisitions, Including all phases ofthe Cauquenes expansion;
• the ability of the Company to draw down funds from bank facilities andlines of credit;
• our costs of production and our production and productivity levels, aswell as those of our competitors;
• changes in credit market conditions and conditions in financial marketsgenerally;
• our ability to procure equipment and operating supplies in sufficientquantities and on a timely basis;
• the availability of qualified employees and contractors for ouroperations;
• our ability to attract and retain skilled staff;
• the satisfactory negotiation of collective agreements with unionizedemployees;
• the impact of changes in foreign exchange rates and capital repatriationon our costs and results;
• engineering and construction timetables and capital costs for ourexpansion projects;
• costs of closure of various operations;
• market competition;
• the accuracy of our preliminary economic assessment (including withrespect to size, grade and recoverability) and the geological, operational andprice assumptions on which these are based;
• tax benefits and tax rates;
• the outcome of our copper concentrate sales and treatment and refiningcharge negotiations;
• the resolution of environmental and other proceedings or disputes;
• the future supply of reasonably priced power;
• our ability to obtain, comply with and renew permits and licenses in atimely manner; and
• our ongoing relations with our employees and entities with which we dobusiness.

Future production levels and cost estimates assume there are no adverse mining or other events which significantly affect budgeted production levels.

We caution you that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause our actual results to differ materially from those estimated or projected and expressed in, or implied by, our forward-looking statements. Except as required by law, we undertake no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise.