USA.TO · 2018-03-21 12:00:00

Americas Silver Corporation Provides an Update ON San Felipe Resource Estimate

Corporate Updates

AMERICAS SILVER CORPORATION PROVIDES AN UPDATE ON SAN FELIPE RESOURCE ESTIMATE

TORONTO, ONTARIO—March 21, 2018 —Americas Silver Corporation (TSX: USA) (NYSE “American”: USAS)

(“Americas Silver” or the “Company”) is pleased to provide an u pdate of the mineral resource estimate at

the San Felipe zinc‐silver‐lead project (“San Felipe”). San Felipe is located 130 km northeast of Hermosillo,

Sonora, Mexico. In 2017, Americas Silver acquired an option on San Felipe giving it the right to acquire a

100% interest in the property without any underlying third‐party royalties.

Mineral Resource Highlights:

 Indicated mineral resources are estimated to contain 4.7 million tonnes of ore, including 560

million pounds of zinc, 256 million pounds of lead and 9.1 million ounces of silver.

 Inferred mineral resources are estimated to contain 2.0 million tonnes, including 158 million

pounds of zinc, 63 million pounds of lead and 3.1 million ounces of silver.

 Contained zinc and silver increased by 258% and 236% respectively in the indicated mineral

resource.

San Felipe Indicated and Inferred Mineral Resources as at March 21, 2018

Classification Tonnes

(kt)

(%)

(g/t)

(Mlbs)

(Moz)

Indicated 4,685 5.4 2.5 61 560 256 9.1

Inferred 2,008 3.6 1.4 48 158 63 3.1

Notes:

1. CIM Definition Standards were followed for mineral resource estimates.

2. Mineral resources are fully diluted to the 2mx3mx2m block size and estimated at a cut‐off grade of 2.5% zinc equivalent

which incorporate metal recoveries.

3. Mineral resources are estimated using metal prices of US$18.00/oz Ag, US$3.00/lb Cu, US$1.05/lb Pb, and US$1.05/lb Zn.

4. Numbers may not add due to rounding.

5. The current or previous San Felipe resource estimates are not included in the Company’s June 30, 2017 reserve and

resource estimates.

6. Increase is based on comparison to the previous resource estimate from the technical report titled “2014 Resource

Estimate and PEA”, San Felipe Project, Sonora, Mexico”, with an effective date of September 4, 2014 and amended date of

June 29, 2016, completed for the previous option holder, Santacruz Silver Mining Ltd.

“With the significant increase in contained zinc and silver in the indicated resource, San Felipe now

becomes a more substantial project in the current zinc market,” stated Darren Blasutti, President and CEO

of Americas Silver Corporation. “The updated estimate at San Fe lipe highlights potential for another low‐

capital project for the Company, after our successful start‐up of the San Rafael mine and the rapid resource

expansion of the silver‐rich Zone 120 deposit. We will continue to evaluate San Felipe for its economic

merits and strategic fit ahead of making the final payments for the option on the property by the end of

the year.”

Work during the past year on the San Felipe property included a six‐hole, twinning diamond drill hole

program to provide confirmation of historical drilling data, an updated interpretation of the mineralization

and mineral resource estimate by Mine Development Associates (“MDA”), and a preliminary geotechnical

review of the property by Adiuvare GE. Both MDA and Adiuvare GE are independent consulting firms. The

twinning program confirmed the historical drilling data and pro vided increased confidence in the existing

dataset. Three holes were drilled into each of the La Ventana and San Felipe zones. These two zones are

the most significant mineral occurrences identified on the prop e r t y i n t e r m s o f c o n t a i n e d m e t a l s ,

contributing 100% of the indicated mineral resources and approximately 50% of the inferred mineral

resources on a tonnage basis.

Geology and Mineralization

There are four deposits that contribute to the current mineral resource estimate: La Ventana, San Felipe,

Transversales and Las Lamas. The Zn‐Ag‐Pb mineralization occur s as skarn‐related massive sulfide

replacement veins, often cut by late quartz veins. It appears that the late quartz is associated with

increased silver, copper and gold.

The potentially economic sulfide veins (>2.5% ZnEq) are usually 2 to 10 meters wide and occur within much

wider near‐vertical structural zones marked by strongly silicified, weakly brecciated, andesite country rock.

There is significant faulting sub‐parallel to the structural an d mineral zones while cross‐faults off‐set the

mineralized structures.

A granitic batholith borders the south side of property and cut s off the southwestern extension of the Las

Lamas zone. The granodiorite is also encountered at depth within the San Felipe and La Ventana deposits

and in the latter deposit appears to form the footwall boundary to the mineralized structural zone. The

granodiorite is likely pre‐mineral, or possibly contemporaneous, w i t h t h e e a r l y m a s s i v e s u l f i d e s k a r n ,

though is not as amenable to skarn alteration as the andesite. Mineralization within the granodiorite

occurs primarily within narrow fractures and thin veins. Rhyolite intrusives, often significantly faulted and

dismembered, occur within the andesite and like the granodiorite are not as amenable to skarn alteration

but can be host to more fracture‐controlled mineralization.

Project Database

The project database contains collar, downhole survey, assay, and geology data for the four primary drilling

campaigns: Boliden (27 drill holes in 1998‐2000), Hochschild (183 drill holes in 2006‐2008), Santacruz (126

drill holes in 2013 and 2014), and Americas Silver (six drill holes in 2017). Of the 342 total project drill holes

in the database, 294 are within the four deposit areas and cont ribute to the geologic models and grade

estimates.

In preparation for the updated mineral resource estimate, MDA audited the project database by validating

the collar, survey and assay data against available original surveys and assay certificates. MDA made minor

adjustments to some of the historical drill collar locations and corrected some rounding inconsistencies in

the assay data. As part of the data validation, the historical quality assurance/quality control programs

were evaluated. The assay database is considered appropriate for u se i n th e cu r r e n t m i ne r al r e sou r c e

estimate.

Estimation Methodology

Separate orthogonal block models were created for each zone. All have a 2m by 2m by 3m block size that

is appropriate for the application of underground mining methods.

Zinc mineral‐domain interpretations were used to code the drill samples. Quantile plots, along with

domain statistics and spatial location of higher‐grade samples, were made to assess validity of these

domains and to determine capping levels for the individual mine ral domain metal populations.

Compositing was done to 1.5m down‐hole lengths using the capped assays and honouring all mineral‐

domain boundaries.

The mineral domains were also used to code the block models wit h the percent of block in each mineral

domain. Density values are based on 875 density measurements which are grouped and assigned to the

block model by zinc mineral domains. The final block‐diluted metal grade and density value for each model

block is a volume‐weighted average based on the proportion of each domain within the block.

Mineral domains aid in controlling the grade distribution, and the estimation used inverse distance to the

third power (“ID3”) to interpolate grades into the domains. Estimation search distances were determined

from zinc variograms while the different search ellipses reflected the unique deposit orientations.

Estimation Comparison

The current estimate is based on an updated interpretation of 336 drill holes completed by previous

operators on the project since 1998, including 21 that were completed after the last mineral resource

estimate was published for the project in 2014, and 6 new drill holes completed by Americas Silver in

2017. The contained zinc, silver and lead increased by 258%, 236%, and 320% respectively in the indicated

mineral resources and decreased by 52% in the inferred mineral resources. The change in estimate is in

comparison to the previous estimate from the technical report t itled “2014 Resource Estimate and PEA,

San Felipe Project, Sonora, Mexico”, with an effective date of September 4, 2014 and amended date of

June 29, 2016, completed for the previous option holder, Santacruz Silver Mining Ltd. Some of the

differences between the current estimate and the previous estim ate are a result of a reinterpretation of

the project as a zinc deposit compared to a silver deposit. The current mineral resource cut‐off value of

2.5% zinc equivalent, as compared to a combination of 75 gram per tonne (g/t) and 150 g/t silver equivalent

cut‐off values used in the 2014 resource estimate, brought in a dditional material into both the indicated

and inferred categories. The use of more liberal zinc variogram distances in determining classification

criteria, versus the more restrictive silver variogram distances in 2014, also resulted in converting a portion

of the 2014 inferred mineral resources into current Indicated mineral resources.

Updated San Felipe Technical Report

MDA was retained by Americas Silver to prepare the updated mineral resource estimate for San Felipe. An

updated Technical Report will be prepared and filed on SEDAR (w ww.sedar.com) within 45 days of this

news release.

San Felipe Option Agreement

As announced in a release dated March 2, 2017 the Company purch ased an option granting it the right to

acquire a 100% interest in San Felipe for total consideration of US$15 million (plus applicable VAT), payable

in two payments. The initial payment of US$7 million plus VAT was made in March 2017. Subsequently,

the Company agreed to terms with Minera Hochschild Mexico S.A. de C.V. (“Hochschild”) to amend the

timing of payments under its option agreement on the San Felipe project. A further US$0.5 million was

paid on January 1, 2018 with the remaining payments due as follows: April 1, 2018 US$0.5 million; July 1,

2018 US$1 million; and balance of US$6 million on or before Dec ember 31, 2018. The Company expects

to make the remaining payments with cash on hand.

Technical Information

Drill core samples from the twin hole diamond drilling program completed at the San Felipe Project were

prepared at the Company’s secure warehouse facility near San Fe lipe, Sonora. Assaying was done by ALS

Chemex Labs in Hermosillo, Mexico. The Company has a QA/QC program supervised by a Qualified Person.

Daren Dell, Chief Operating Officer and a Qualified Person under Canadian Securities Administrators

guidelines, has approved the applicable contents of this news r elease. For further information please see

SEDAR or americassilvercorp.com.

About Americas Silver Corporation

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 Cosalá Operations in

Sinaloa, Mexico and the Galena Mine Complex in Idaho, USA. The Company holds an option on the San

Felipe development project in Sonora, Mexico.

Cautionary Statement on Forward‐Looking Information:

This news release contains “forward‐looking information” within the meaning of applicable securities laws.

Forward‐looking information includes, but is not limited to, the Company’s expectations intentions, plans,

assumptions and beliefs with respect to, among other things, th e realization of exploration, operational

and development plans (including further exploration and develo pment of San Felipe), the Cosalá

Operations and Galena Complex as well as the Company’s financing efforts. Often, but not always, forward‐

looking information can be identified by forward‐looking words such as “anticipate”, “believe”, “expect”,

“goal”, “plan”, “intend”, “estim ate”, “may”, “assume” and “will ” or similar words suggesting future

outcomes, or other expectations, beliefs, plans, objectives, as sumptions, intentions, or statements about

future events or performance. Forward‐looking information is based on the opinions and estimates of the

Company as of the date such information is provided and is subj ect to known and unknown risks,

uncertainties, and other factors that may cause the actual resul t s , l e v e l o f a c t i v i t y , p e r f o r m a n c e , o r

achievements of the Company to be materially different from those expressed or implied by such forward

looking information. This includes the ability to develop and o perate the Cosalá and Galena properties,

risks associated with the mining i n d u st r y s u c h a s e c o n o m i c f a c tors (including future commodity prices,

currency fluctuations and energy prices), ground conditions and factors other factors limiting mine access,

failure of plant, equipment, processes and transportation services to operate as anticipated, environmental

risks, government regulation, actual results of current exploration and production activities, possible

variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities,

social and political developments and other risks of the mining industry. Although the Company has

attempted to identify important factors that could cause actual results to differ materially from those

contained in forward‐looking information, there may be other fac t o r s t h a t c a u s e r e s u l t s n o t t o b e a s

anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such

information. By its nature, forward‐looking information involves numerous assumptions, inherent risks and

uncertainties, both general and specific that contribute to the possibility that the predictions, forecasts,

and projections of various future events will not occur. The Co mpany undertakes no obligation to update

publicly or otherwise revise any forward‐looking information whe t h e r a s a r e s u l t o f n e w i n f o r m a t i o n ,

future events or other such factors which affect this information, except as required by law.

Cautionary Note to U.S. Investors regarding mineral resources:

The terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, “inferred

mineral resource” used in the press release are Canadian mining terms used in accordance with National

Instrument 43‐101 ‐ Standards of Disclosure for Mineral Projects under the guidelines set out in the

Canadian Institute of Mining, Metallurgy and Petroleum Standards. Mineral resources which are not

mineral reserves do not have demonstrated economic viability.

While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, and

“inferred mineral resource” are recognized and required by Canad i an r e g u l at ion s, t h e y ar e n ot d e f i ne d

terms under standards in the United States and normally are not permitted to be used in reports and

registration statements filed with the Securities & Exchange Commission (“SEC”). As such, information

contained in the Company's disclosure concerning descriptions of mineralization and resources under

Canadian standards may not be comparable to similar information made public by U.S companies in SEC

filings. With respect to “inferred mineral resource” there is a great amount of uncertainty as to their

existence and a great uncertainty as to their economic and lega l feasibility. It cannot be assumed that all

or any part of an “inferred mineral resource” will ever be upgr aded to a higher category. Investors are

cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted

into reserves.

For more information:

Darren Blasutti

President and CEO

416‐848‐9503

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