USA.TO · 2017-05-11 12:00:00

Americas Silver Corporation Reports First Quarter 2017 Financial Results

Financials

AMERICAS SILVER CORPORATION REPORTS FIRST QUARTER 2017 FINANCIAL RESULTS

TORONTO, ONTARIO—May 11, 2017—Americas Silver Cor poration (TSX: USA) (NYSE “MKT ”: USAS)

(“Americas Silver” or the “Company”) today reported consolidate d financial and operational results for

the first quarter of 2017.

This earnings release should be read in conjunction with the Company’s First Quarter Production and Cost

Update, Management’s Discussion and Analysis, Financial Stateme nts and Notes to Financial Statements

for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available

on the Company’s website at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise

noted.

First Quarter Highlights

 Revenues of $15.2 million in Q1, 2017 compared with revenues of $14.9 million in Q1, 2016.

 Cash flow generated from operating activities 1 in Q1, 2017 of approximately $3.1 million compared

to cash generated from operating activities of approximately $0.9 million in Q1, 2016.

 A net loss of ($0.2) million or ($0.00) cents per share in Q1, 2017, compared with a net loss of ($1.7)

million or ($0.06) cents per share in Q1, 2016.

 Since late April, development rates at San Rafael have returned to budgeted rates, with ore stockpiling

expected in August in the first development area of the Main Zone, and in September from the second

development area lower in the Main Zone. San Rafael remains on budget and on time for the start of

production by the end of Q3, 2017.

 As previously released, consolidated silver production for the quarter decreased by 22% year‐over‐

year to approximately 524,000 silver ounces, while silver equivalent2 ounces decreased by 13% year‐

over‐year to approximately 1.1 million ounces as a result of planned lower grade and longer than

expected mill repairs at the Galena Complex offset by greater t han expected output from the Cosalá

Operations.

 Consolidated cash costs 3 were approximately $10.49 per silver ounce, an increase of 7% year‐over‐

year, while consolidated all‐in sustaining costs3 were approximately $14.27 per silver ounce, an

increase of 19% year‐over‐year.

 Consolidated guidance for 2017 remains unchanged at 2.0 ‐ 2.5 m illion ounces in silver production

and 5.5 ‐ 6.0 million ounces in silver equivalent production with projected cash costs of $4.00 ‐ $5.00

per silver ounce and all‐in sustaining cash costs of $9.00 ‐ $10.00 per silver ounce.

 The Company purchased an option on the San Felipe Project for t otal payments of $7.0 million (plus

VAT) in March 2017.

 At the end of the first quarter, the Company drew upon the $15 million Glencore pre‐payment facility

and fully repaid its previously existing debt of approximately $8.0 million during the quarter.

1 Cash flow generated from operating activities is a non‐IFRS fi nancial measure calculated as net cash flow used in operating

activities less changes in non‐cash working capital items such as trade and other receivables, inventories, prepaid expenses, and

trade and other payables.

2 Silver equivalent production throughout this press release was calculated based on average sil ver, zinc, lead and copper spot

prices during each respective period.

3 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.

 Cash balance at March 31, 2017 of $17.6 million with net working capital of approximately $24.9

million.

“The first quarter showed major improvements in both our cash flow and net loss compared to the

previous year and quarter despite being our expected lowest production quarter of the year,” said

Americas Silver Corporation President and CEO Darren Blasutti. “We expect to build on these positive

results further through the second quarter with our operational challenges at Galena behind us, and in

the latter half of the year as San Rafael begins production. Wi th zinc and lead prices continuing to be

strong, the mine will bring a step change reduction in our company‐wide all‐in costs in the fourth quarter.”

Consolidated Production and Operating Costs

Consolidated Production and Cost Details

Q1 2017 Q1 2016

Total ore processed (tonnes milled) 167,493 175,108

Silver produced (ounces) 523,747 672,074

Zinc produced (pounds) 2,389,133 3,552,522

Lead produced (pounds) 6,160,732 7,121,573

Copper produced (pounds) 308,100 245,808

Silver equivalent produced (ounces) 1,107,460 1,269,120

Silver recovery (percent) 90.6 88.4

Silver grade (grams per tonne) 107 135

Silver sold (ounces) 528,827 671,253

Zinc sold (pounds) 2,500,550 3,683,054

Lead sold (pounds) 6,119,207 7,206,277

Copper sold (pounds) 295,336 237,808

Cost of sales ($ per silver equivalent ounce)1 $9.91 $9.53

Silver cash cost ($ per silver ounce) 1 $10.49 $9.82

All‐in sustaining cost ($ per silver ounce) 1 $14.27 $12.02

1 Cost of sales per silver equiva lent ounce, cash costs per silver ounce, and all‐in sustaining costs per silver ounce in Q1, 2017

excludes pre‐production of 62,714 silver ounces and 89,042 silv e r e q u i v a l e n t o u n c e s m i n e d f r o m E l C a j ó n d u r i n g i t s

commissioning period. Pre‐production revenue and cost of sales from El Cajón are capitalized as development costs.

A net loss of ($0.2) million was recorded for the quarter, comp ared to a net loss of ($1.7) million for the

first quarter of 2016. The improvement in net loss is primarily attributable to higher net revenue on

concentrate sales, lower cost of sales, and lower care, maintena n c e a n d r e s t r u c t u r i n g c o s t s , p a r t i a l l y

offset by lower metal production, higher one‐time corporate general and administrative expenses related

to the NYSE “MKT” listing and share‐based compensation. Further information is available in the

Company’s Management’s Discussion and Analysis for the three months ending March 31, 2017.

Consolidated silver production for the first quarter of 2017 was 523,747 ounces which represents a

decrease of 22% year‐over‐year. Silver equivalent production was approximately 1.1 million ounces, down

13% year‐over‐year. Consolidated cash costs increased 7% to $10.49 per silver ounce year‐over‐year, and

all‐in sustaining costs increased 19% to $14.27 per silver ounc e year‐over‐year. Consolidated production

levels for the remainder of the year are expected to improve and become similar to fiscal 2016 production

levels subsequent to the mill repairs at the Galena Complex during the quarter.

During the first quarter, the Company obtained a low‐interest, $15.0 million concentrate pre‐payment

facility with a subsidiary of Glencore PLC to fund a portion of the project costs for San Rafael. At the end

of the quarter, the facility was drawn in full and the Company fully repaid its previously outstanding debt

of approximately $8.0 million during the quarter. In addition, the Company made a payment of

approximately $7.0 million for purchase of the option to acquire 100% interest of the San Felipe property

located in Sonora, Mexico. The cash balance as at March 31, 201 7 was $17.6 million and the Company

expects to be able to fully fund the development of San Rafael.

The Company expects to provide a separate update on its progres s on its San Rafael project as well as

drilling results from both the Cosalá Operations and the Galena Complex before the end of the second

quarter.

Further information concerning the consolidated and individual mine operations is included in the

Company’s first quarter Condensed Interim Consolidated Financial Statements for the three months

ended March 31, 2017 and Management’s Discussion and Analysis for the same period.

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 Complex in Idaho, USA. The Compa ny 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 release. 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 thi ngs, the realization of operational and

development plans (including completion of the San Rafael Proje ct), 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”, “estimate”, “may”, “assume” and “will” or similar wor ds suggesting future outcomes, or other

expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or

performance. Forward‐looking information is based on the opinio ns and estimates of the Company as of

the date such information 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 Gale na properties, risks associated with the

mining industry such as economic factors (including future comm odity prices, currency fluctuations and

energy prices), ground conditions and factors other factors lim iting 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 th at could cause actual results t o differ materially from those contained in

forward‐looking information, there may be other factors that cause results not to be as anticipated,

estimated, or intended. Readers are cautioned not to place undu e 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 Company undertakes no obligation to update publicly or

otherwise revise any forward‐looking information whether as a r esult of new information, future events

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

For more information:

Darren Blasutti

President and CEO

416‐848‐9503

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