Amerigo Announces Renewal of Normal Course Issuer Bid

(NewsDirect)

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:

www.amerigoresources.com

;
Listing: ARG:TSX.

Forward-Looking
Information

Forward-looking information (“forward-looking statements”) is
included in this news release. These forward-looking statements are
identified by the use of terms such as “anticipate”,
“believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”,
“will”, “would”, and “should” and similar terms and
phrases, including references to assumptions. Such statements may
involve but are not limited to, Amerigo’s plans, objectives,
expectations and intentions, including Amerigo’s objectives and
expectations regarding the number of shares that may be purchased by
Amerigo pursuant to the NCIB, Amerigo’s return of capital policy and
other comments with respect to strategies, expectations, planned
operations or future actions.

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. Inherent in forward-looking statements are risks and
uncertainties beyond Amerigo’s ability to predict or control,
including risks that may affect Amerigo’s 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; risks related to the potential impact of global
or national health concerns, including COVID-19, and the inability of
employees to access sufficient healthcare; government or regulatory
actions or inactions; fluctuations in the market prices of Amerigo’s
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 Amerigo’s ability
to obtain both tailings from Codelco’s Division El Teniente’s
current production and historic tailings from tailings deposits; risks
with respect to the ability of Amerigo to draw down funds from lines
of credit and the availability of and ability of Amerigo to obtain
adequate funding on reasonable terms for expansions and acquisitions;
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 Amerigo’s
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 Amerigo’s
operations or their interpretation, including foreign exchange
controls; and risks associated with tax reassessments and legal
proceedings. Notwithstanding the efforts of Amerigo and MVC, there can
be no guarantee that Amerigo’s or MVC’s staff will not contract
COVID-19 or that Amerigo’s and MVC’s measures to protect staff
from COVID-19 will be effective. Many of these risks and uncertainties
apply not only to Amerigo and its operations, but also to Codelco and
its operations. Codelco’s ongoing mining operations provide a
significant portion of the materials Amerigo processes and its
resulting metals production, therefore these risks and uncertainties
may also affect their operations and in turn have a material effect on
Amerigo.

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 several 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 of prices of copper and other commodities and products used
in Amerigo’s operations;
the ongoing supply of material for
processing from Codelco’s current mining operations;
the
ability of Amerigo to profitably extract and process material from the
Cauquenes tailings deposit;
the timing of the receipt of and
retention of permits and other regulatory and governmental
approvals;
Amerigo’s costs of production and its production
and productivity levels, as well as those of Amerigo’s
competitors;
changes in credit market conditions and
conditions in financial markets generally;
Amerigo’s ability
to procure equipment and operating supplies in sufficient quantities
and on a timely basis;
the availability of qualified employees
and contractors for Amerigo’s operations;
Amerigo’s
ability to attract and retain skilled staff;
the satisfactory
negotiation of collective agreements with unionized
employees;
the impact of changes in foreign exchange rates and
capital repatriation on Amerigo’s costs and results;
costs
of closure of various operations;
market
competition;
tax benefits and tax rates;
the outcome
of Amerigo’s copper concentrate sales and treatment and refining
charge negotiations;
the resolution of environmental and other
proceedings or disputes;
the future supply of reasonably
priced power;
rainfall in the vicinity of MVC continuing to
trend towards normal levels;
average recoveries for fresh
tailings and Cauquenes tailings;
Amerigo’s ability to
obtain, comply with and renew permits and licenses in a timely manner;
and
Amerigo’s ongoing relations with its employees and
entities with which it does business.

Future production levels
and cost estimates assume there are no adverse mining or other events
which significantly affect budgeted production levels. Although
Amerigo 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 Amerigo’s control, Amerigo cannot assure that
it will achieve or accomplish the expectations, beliefs or projections
described in the forward-looking statements.

Amerigo cautions you
that the foregoing list of important factors and assumptions is not
exhaustive. Other events or circumstances could cause Amerigo’s
actual results to differ materially from those estimated or projected
and expressed in, or implied by, its forward-looking statements. You
should also carefully consider the matters discussed under Risk
Factors in Amerigo’s Annual Information Form. The forward-looking
statements contained herein speak only as of the date of this news
release and except as required by law, Amerigo undertakes 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.