USA.TO · 2018-01-29 12:00:00

Americas Silver Corporation Provides Annual 2017 Production and Costs, 2018 Guidance, and an Exploration Update ON Its Cosalá Operation’S Zone 120 Property

Exploration Programs

AMERICAS SILVER CORPORATION PROVIDES ANNUAL 2017 PRODUCTION AND COSTS, 2018 GUIDANCE,

AND AN EXPLORATION UPDATE ON ITS COSALÁ OPERATION’S ZONE 120 PROPERTY

TORONTO, ONTARIO—January 29, 2018—Americas Silver Co rporation (TSX: USA) (NYSE American: USAS)

(“Americas Silver” or the “Company”) is pleased to announce pro duction and operating cost results for

fiscal 2017, 2018 production and cost guidance, and results from recent follow‐up exploration drilling

completed on its 100%‐owned Zone 120 deposit. The Zone 120 depo sit is part of the Cosalá Operations

property in Sinaloa, Mexico and located adjacent to the San Raf ael Mine. The Company declared

commercial production at the San Rafael Mine as of December 19, 2017.

Consolidated 2017 Results and 2018 Guidance

● Guidance for 2018 is 1.6 ‐ 2.0 million silver ounces and 7.2 ‐ 8.0 million silver equivalent ounces at cash

costs of negative $10.00 to negative $5.00 per silver ounce and all‐in sustaining costs of negative $1.00

to $4.00 per silver ounce. The Company assumed $17.00 per ounce silver, $1.35 per pound zinc, $1.05

per pound lead, and an exchange rate of 18.5 Mexican pesos to US dollar for these guidance estimates.

● The Company drilled seven holes at the Zone 120 deposit in the fourth quarter of 2017 following the

success of the spring 2017 drill program. Drill highlights include:

o Hole SR‐415, containing 23.4 meters grading 259 g/t silver, 0.40 g/t gold and 0.5% copper

(345 g/t silver equivalent) and 7.2 meters grading 335 g/t silver, 0.23 g/t gold and 0.55%

copper (413 g/t silver equivalent);

o Hole SR‐402, containing 16.9 meters grading 138 g/t silver, 0.23 g/t gold and 0.43% copper

(204 g/t silver equivalent); and

o Hole SR‐409, containing 2.0 meters grading 920 g/t silver, 0.40 g/t gold and 2.36% copper

(1,218 g/t silver equivalent)

● The Board has approved a $4.0 million exploration program for t he Cosalá Operations property, with

the majority to be spent on expansion and in‐filling drilling of the Zone 120 deposit.

● Consolidated silver and silver equivalent production1 for 2017 of approximately 2.1 million silver

ounces and 4.7 million silver equivalent ounces, respectively, resulting in a 14% decrease in silver

production and 4% increase in silver equivalent production compared to 2016.

● Consolidated cash costs2 and all‐in sustaining costs2 for 2017 of $9.37 per silver ounce and $13.12 per

silver ounce, respectively, resulting in a 6% decrease in cash costs and 3% increase in all‐in sustaining

costs compared to 2016.

● The Company had a cash balance of $9.3 million as at December 3 1, 2017.

“This year will be transformative for Americas Silver with the San Rafael Mine and mill ramping up to full

c a p a c i t y b y t h e m i d d l e o f t h e y e a r , ” s a i d A m e r i c a s S i l v e r P r e s ident and CEO Darren Blasutti. “We are

1 Silver equivalent production for fiscal 2017 throughout this p ress release was calculated based on silver, zinc, lead and cop per

realized prices during each respective period, unless otherwise indicated.

2 Cash cost per ounce and all‐in sustaining cost per ounce are n on‐IFRS performance measures with no standardized definition.

For further information and detailed reconciliations, please refer to the Company’s 2016 year‐end and quarterly MD&A. The

performance measures for the qua rter and year ended December 31 , 2017 are preliminary throughout this press release subject

to refinement from the Company’s year‐end financial results to be released on or before March 2, 2018.

expecting record free cash flow, earnings, and silver equivalent production for the Company as we become

one of the lowest all‐in sustaining cost producers in the silver industry.”

Mr. Blasutti continued, “Building on the exciting 2017 drilling success at Zone 120, we are well into a

12,000‐meter drill program in the first half of 2018. San Rafael’s free cash flow will allow us to develop the

potential high‐grade, silver‐copper targets at Zone 120‐El Cajó n without equity dilution to our

shareholders.”

Consolidated 2017 Results and 2018 Guidance

Consolidated silver production for 2017 was approximately 2,060,000 ounces, which represents a decrease

of 14% compared to 2016. Silver equivalent production was approximately 4,746,000 ounces, an increase

of 4% compared to 2016. Consolidated cash costs improved by 6% to $9.37 per silver ounce compared to

2016. In addition, zinc and copper production increased 11% and 10% year‐over‐year, respectively, as a

result of strong production from the Cosalá Operations.

Table 1

2017 Consolidated Production Highlights

2017 2016 Change

Processed Ore (tonnes milled) 690,498 671,616 3%

Silver Production (ounces) 2,056,017 2,389,808 ‐14%

Silver Equivalent Production (ounces) 4,746,387 4,579,373 4%

Silver Grade (grams per tonne) 104 126 ‐18%

Cost of Sales ($ per silver equiv. ounce)1 $10.19 $10.08 1%

Cash Costs ($ per silver ounce)1 $9.37 $10.00 ‐6%

All‐in Sustaining Costs ($ per silver ounce)1 $13.12 $12.71 3%

Zinc Production (pounds) 11,623,138 10,488,773 11%

Lead Production (pounds) 25,392,619 29,067,673 ‐13%

Copper Production (pounds) 1,167,401 1,058,250 10%

1 Cost of sales per silver equivalent ounce, cash costs per silver ounce, and all‐in sustaining costs per silver ounce for 2017

excludes pre‐production of 50,490 silver ounces and 435,323 silver equivalent ounces mined from San Rafael during its

commissioning period, and excludes pre‐production of 245,391 silver ounces and 360,530 silver equivalent ounces mined from

El Cajón during its commissioning period. Pre‐production revenue and cost of sales from San Rafael and El Cajón are capitalized

as an offset to development costs.

The Company produced 2.1 million silver ounces and 4.7 million silver equivalent ounces which are within

the 2.0 ‐ 2.5 million silver ounces and slightly below the 5.0 ‐ 5.5 million silver equivalent ounces 2017

guidance estimates. The shortfall to silver equivalent guidance was due to lower than expected tonnage

a n d g r a d e f r o m t h e G a l e n a C o m p l e x a s b o t h s i l v e r a n d l e a d p r o d uc t i o n w e r e b e l o w e x p e c t a t i o n s . I n

addition, guidance to the market was estimated on the San Rafae l Mine declaring commercial production

early in the fourth quarter of 2017 instead of later in the qua rter. As a result, silver equivalent production

was lower than expected due to delay in by‐product metal produc tion expected from the high

concentration of zinc and lead in the Lower Zone of the San Rafael Mine.

Table 2

Consolidated Results and Guidance

2017 Actual 2018 Guidance*

Silver Production (ounces) 2.1M oz. 1.6 ‐ 2.0M oz.

Silver Equivalent Production (ounces) 4.7M oz. 7.2 ‐ 8.0M oz.

Cost of Sales ($ per silver equiv. ounce) $10.19/oz. $7.00 ‐ $8.00/oz.

Cash Costs ($ per silver ounce) $9.37/oz. $(10.00) ‐ $(5.00)/oz .

All‐in Sustaining Costs ($ per silver ounce) $13.12/oz. $(1.00) ‐ $4.00/oz.

* The Company assumed $17.00 per ounce silver, $1.35 per pound zinc, $1.05 per pound lead, and an exchange rate of 18.5

Mexican pesos to US dollar for these guidance estimates

The Company declared commercial production at its San Rafael Mi ne in December 2017. The mine was

constructed for approximately $17 million, 25% lower than the i nitial pre‐feasibility estimate. Mine

production, mill throughput and metal recoveries are expected to ramp‐up to internal targets through the

first half of 2018. Capital development is expected to be highest in the first quarter of 2018 as development

into the deepest levels of the Ma in Zone progress and the remai nder of the mine’s capital development

and equipment purchases are finalized. The Company is expected to invest a consolidated $18‐19 million

in its operating mines in 2018.

Silver production is expected to b e l o w e r i n t h e f i r s t 1 8 m o n t hs of the mine’s production due to mine

sequencing within San Rafael. The initial development in the San Rafael ore body was into the area closest

to the portal where the silver grade is approximately half of t he reserve silver grade. The Main and the

Upper Zones of the ore body are estimated to have higher silver grades. Silver equivalent production is

expected to increase significantly, and cash costs and all‐in s ustaining costs are expected to decrease due

to the significant increase in lead and zinc projected to be pr oduced from the San Rafael mine. At current

spot prices, the mine is expected to generate significant free cash flow in 2018 and with further growth in

2019 as capital requirements decrease and the silver grade improves.

Zone 120 Exploration Results

The Company is pleased to release results from its ongoing drill program on the Zone 120 deposit.

Exploration drilling resumed at the Cosalá Operations property in 2017 for the first time since 2014.

Starting in April, an initial 4,000‐meter diamond drill program a t Z o n e 1 2 0 w i l l c o m m e n c e f o c u s e d o n

upgrading the existing resource3 as well as expanding the footprint of mineralization to the southeast.

Following up on the success of step‐out Hole SR‐396, the Compan y drilled 3,260 meters in seven holes to

further test continuity, concentration, and extent of the silver‐copper mineralization.

Table 3

Q4 2017 Zone 120 Selected Drill Results

Hole From (m) To (m) Width (m)* Ag (g/t) Au (g/t) Cu % AgEg (g/ t)**

SR‐402

including

371.3

389.2

406.1

34.8

16.9

138

0.15

0.23

0.29

0.43

136

204

SR‐409 228.0 230.0 2.0 920 0.40 2.36 1,218

3 December 31, 2016 estimate reported at Measured and Indicated resources of 1.8 million tonnes grading 128g/t Ag and 0.35%

Cu (7.3Moz Ag and 13.7Mlbs Cu contained).

SR‐410 163.6 174.3 10.7 97 0.16 0.24 136

SR‐415

including

257.0

268.3

276.3

279.0

280.4

269.4

277.5

280.4

23.4

1.1

1.2

1.4

259

1,460

839

623

0.40

2.61

0.61

0.59

0.50

2.55

1.13

1.35

345

1,940

1,012

820

SR‐415 291.1 305.9 14.8 75 0.25 0.16 111

SR‐415 416.2 426.3 10.1 120 0.08 0.13 141

* True width varies from 85‐92% of interval.

** The AqEq was calculated using $18/oz Ag, $1300/oz Au and $3.00/lb Cu.

The Company also drilled three holes between El Cajón and Zone 120 to test for mineralization in the

corridor separating two known resources with similar host rocks , mineralogical characteristics and

structural controls, All three holes encountered short intervals of significant silver and copper values and

have provided important structur al and lithological information which will be valuable in targeting

extensions and the potential connection in the one kilometer distance between El Cajón and Zone 120.

Detailed exploration results from the 2017 drill program and 2018 targets can be found on the Company’s

website and investor presentation at www.americassilvercorp.com.

The Company is moving forward with a $4 million, 20,000‐meter exploration program focused on the Zone

120 deposit and its regional land position. Approximately 14,00 0 meters of the drilling will be focused on

Zone 120 and the corridor between Zone 120 and El Cajón. The drilling is expected to be completed by mid‐

second quarter 2018 with results t o be released late in Q2, 201 8 for inclusion in the Company’s mid‐year

resource update. Funding for the program is expected to be provided from internally‐generated, operating

cash flow from the Company’s San Rafael Mine.

Drill core samples are prepared at the Company’s secure facilit y in Cosalá, Sinaloa. Assaying was done by

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

Person.

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 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 r elease. For further information please see

SEDAR or americassilvercorp.com.

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 operational, exploration

and development plans, the Cosalá Operations and Galena Complex as well as the Company’s financing

e f f o r t s . O f t e n , b u t n o t a l w a y s , f o r w a r d ‐ l o o k i n g i n f o r m a t i o n c a n be identified by forward‐looking words

such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “estimate”, “may”, “assume” and “will”

or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions,

intentions, or statements about future events or performance. F orward‐looking information is based on

the opinions and estimates of the Company as of the date such i nformation is provided and is subject to

known and unknown risks, uncertainties, and other factors that may cause the actual results, level of

activity, performance, or 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 operate the Cosalá

and Galena properties, risks associated with the mining industry such as economic factors (including future

commodity prices, currency fluctuations and energy prices), gro und 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 r e s u l t s o f c u r r e n t e x p l o r a t i o n a n d

p r o d u c t i o n a c t i v i t i e s , p o s s i b l e v a r i a t i o n s i n o r e g r a d e o r r e c overy rates, permitting timelines, capital

expenditures, reclamation activities, social and political devel o p m e n t s a n d o t h e r r i s k s o f t h e m i n i n g

industry. Although the Company has attempted to identify important factors that could cause actual results

to differ materially from those contained in forward‐looking in formation, there may be other factors that

cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue

reliance on such information. By its nature, forward‐looking in formation 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 Company undertakes no

obligation to update publicly or otherwise revise any forward‐l ooking information whether as a result of

new information, future events or other such factors which affe ct this information, except as required by

law.

For more information:

Darren Blasutti

President and CEO

416‐848‐9503

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