Up to 11.08 million shares (6.67% of current outstanding) may be retired over a one-year period

Announcement confirms Amerigo’s commitment of capital returns to shareholders

Amerigo Resources Ltd. (TSX: ARG; OTCQX: ARREF) (“Amerigo” or the “Company”) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has accepted Amerigo’s application to implement a new normal course issuer bid (the “NCIB”).

Under the NCIB Amerigo may purchase up to 11,080,000 common shares (representing 6.67% of its 166,032,658 common shares outstanding as at November 18, 2022) over a period of twelve months commencing on December 2, 2022. The NCIB will terminate no later than December 1, 2023.

“We are pleased to renew Amerigo’s ability to buy back shares for cancellation, which is one of our tools to return capital to shareholders,” said Aurora Davidson, Amerigo’s President and CEO. “Amerigo’s last NCIB was fully completed in June 2022 and 10.75 million shares were retired at an average price of Cdn$1.62 per common share, in addition to 7.12 million shares retired under a Substantial Issuer Bid completed in November 2021. Under the right market conditions, up to 11.08 million shares of the Company could also be retired in the next year,” added Ms. Davidson. “This would represent a cumulative reduction of 28.95 million shares (17.43% of current outstanding) over a two-year period. These share buyback programs, in combination with our quarterly dividend yielding 9.6%¹, confirms Amerigo’s shareholder capital return commitment.”

In line with Amerigo’s longer-term strategy and commitment to creating value, Amerigo believes that the purchase of common shares pursuant to the NCIB represents an attractive investment opportunity for Amerigo and an appropriate and desirable use of available funds, as well being accretive to the value of Amerigo’s common shares.

Under the NCIB, common shares may be purchased in open market transactions on the TSX at the prevailing market price at the time of such transaction.

Pursuant to the rules of the TSX, the total number of common shares that Amerigo is permitted to purchase is subject to a daily purchase limit of 62,016 common shares, which represents 25% of the average daily trading volume of 248,067 common shares on the TSX for the six-month period ended October 31, 2022. However, Amerigo may make one block purchase per calendar week which exceeds the daily purchase restriction.

All common shares purchased under the NCIB will be cancelled.

The actual number of common shares purchased pursuant to the NCIB, and the timing of such purchases will be determined by Amerigo. There cannot be any assurance as to how many common shares, if any, will ultimately be acquired by the Company.

¹ The disclosed annual yield of 9.6% is based on four quarterly dividends of Cdn$0.03 per share each, divided over Amerigo’s November 29, 2022 share price of Cdn$1.25.

About Amerigo and Minera Valle Central (“MVC”)

Amerigo Resources Ltd. is an innovative copper producer with a long-term relationship with Corporación 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: ; Listing: ARG:TSX.

Graham Farrell

Company Website