USA.TO · 2019-04-03 12:00:00

Americas Silver Releases Highlights from El Cajón and Zone 120 Pre‐feasibility Study

Economic Studies

AMERICAS SILVER RELEASES HIGHLIGHTS FROM EL CAJÓN AND ZONE 120 PRE‐FEASIBILITY STUDY

TORONTO, ONTARIO—April 3, 2019—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)

(“Americas Silver” or the “Company”) is pleased to announce the results of a Preliminary Feasibility Study

( “ P F S ” , “ S t u d y ” ) a n d i n i t i a l m i n e r a l r e s e r v e e s t i m a t e p r e p a r e d internally by Company personnel for a

combined operation at its 100% owned El Cajón and Zone 120 silver‐copper deposits (“EC120”, “Project”)

located near Cosalá, Sinaloa, Me xico. The base case economics for the EC120 Project are presented at

long term consensus prices of $17.50 per ounce silver and $3.00 per pound copper, with all amounts

expressed in US dollars.

EC120 Project PFS Highlights (all values in USD unless otherwise noted):

● Estimated probable mineral reserve of 2.9 million tonnes with a grade of 157g/t silver and 0.42%

copper containing 14.5 million ounces of silver and 26.5 million pounds of copper

● 5‐year mine life with average annual metal production of 2.5 million ounces of silver and 4.6

million pounds of copper (3.3 million silver equivalent ounces 1)

● The Project has a pre‐tax net present value with a 5% discount rate (“NPV5%”) of approximately

$43 million and internal rate of return (“IRR”) of 61% or after‐tax NPV5% of $33 million and IRR of

47%

● Initial capital expenditure of approximately $17 million with life of mine sustaining capital of

approximately $15 million2

● Life of mine cash cost3of approximately $9.60 per silver ounce and average all‐in sust aining cost2

(“AISC”) of approximately $10.80 per silver ounce

“The EC120 Project is a significant addition to our precious metals growth pipeline,” said Darren Blasutti,

President & CEO of Americas Silver. “Having a 2.5 million ounc e p e r y e a r s i l v e r p r o j e c t r e a d y f o r

immediate development fits into our strategy of preparing for t he inevitable positive correction in the

silver price. It provides a solid five‐year production base as we continue to further explore the El Cajón

and Zone 120 deposits and our other silver‐rich exploration target areas in Cosalá later in 2019.”

The Study considers two underground operations with concurrent production from the adjacent El Cajón

and Zone 120 deposits. Following an 18‐month pre‐production period, the combined operation will target

a production rate of 1,800 tonnes per day. Overhand mechanized cut‐and‐fill will be the mining method

utilized at both mines. The Project will take advantage of existing infrastructure and equipment currently

in use at the producing San Rafael mine and existing development at the El Cajón deposit.

1 Silver equivalent ounces are calculated using metal prices of $17.50/oz silver and $3.00/lb copper

2 Initial capex excludes working capital and pre‐production operating costs net of revenue

3 Cash cost per ounce and all‐in sustaining cost per ounce are non‐IFRS performance measures with no standardized definition.

The Company reconciles such measures to IFRS measures as shown in the Company’s 2018 Management’s Discussion and

Analysis under the heading “Non‐IFRS measures: Cash Costs per Ounce and All‐in Sustaining Cost per Ounce.” For further

information on the PFS non‐IFRS measures, please see the pre‐feasibility study once it is filed on www.SEDAR.com.

The Study assumes that processing will take place at the existing Los Braceros facility to produce a silver‐

bearing copper concentrate. The Los Braceros facility currently processes San Rafael ore to produce silver‐

bearing zinc and lead concentrates. Only minor modifications t o the plant would be required to process

ore from EC120. The existing ta ilings storage facility has cap acity to store all planned production with

scheduled dam lifts.

Based on the Study, the Project is expected to produce over 12 million ounces of silver and 23.0 million

pounds of copper over a mine life of approximately 5 years. The life of mine all‐in sustaining costs of the

Project are expected to be below $11.00 per ounce of silver produced. The Company has not yet made a

production decision with respect to the Project, however permit s are in place to allow development to

begin at any time.

The Probable Mineral Reserve estimate for EC120 as at April 3, 2019 is presented below.

EC120 Probable Mineral Reserves

Ore Grade Contained Metal

Tonnes Silver Copper Silver Copper

000s g/t % koz Mlbs

Zone 120 Probable 2,047 161 0.40 10,610 18.1

El Cajón Probable 831 147 0.46 3,939 8.4

EC120 Probable 2,877 157 0.42 14,549 26.5

Mineral Reserve Notes:

1. CIM (2014) Definition Standards were followed for Mineral Re serves.

2. Mineral Reserves are estimated at a net smelter return cut‐o ff value of US$40/tonne at El Cajon and Zone

120.

3. Mineral Reserves are estimate d using metal prices of US$16.00/oz Ag and $2.50/lb Cu.

4. A minimum mining width of 4 m eters and a 15% dilution factor , at zero grade, was used for estimating

Reserves at El Cajon and Zone 120. Mining recoveries vary betw een 80% to 95% depending on the width

of the ore zone to reflect the proposed overhand cut and fill mining method.

5. The EC120 Mineral Reserve estimate was prepared internally b y Shawn Wilson, P.Eng., who is a Qualified

Person for the purpose of National Instrument 43‐101 (“NI 43‐101”).

6. Numbers may not add or multipl y accurately due to rounding.

7. Americas Silver is not aware of any environmental, permitti ng, legal, title, taxation, socio‐economic,

marketing, political, or other relevant issues that would materially affect this mineral reserve estimate.

Readers are encouraged to read t he related technical report in its entirety once filed on the Company’s

SEDAR profile at www.sedar.com and on the Company’s website at www.americassilvercorp.com to fully

understand the information in this news release.

The technical information in this news release has been prepared and approved by Shawn Wilson, P.Eng.,

Vice President Technical Services for Americas Silver and a Qualified Person for the purpose of NI 43‐101.

About Americas Silver Corporation

Americas Silver is a precious metal mining company focused on g rowth 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 Company holds a n o p t i o n o n t h e S a n F e l i p e

development project in Sonora, Me xico. 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, Americas Silver’s and Pershing Gold’s

expectations, intentions, plans, assumptions and beliefs with r espect to, among other things, Americas

Silver’s potential advancement of the EC120 Project. 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 opini ons and estimates of Americas Silver as

of the date such information is provided and is subject to know n and unknown risks, uncertainties, and

o t h e r f a c t o r s t h a t m a y c a u s e t h e a c t u a l r e s u l t s , l e v e l o f a c t i vi t y , p e r f o r m a n c e , o r a c h i e v e m e n t s o f

Americas Silver to be materially different from those expressed or implied by such forward‐looking

information. With respect to the business of Americas Silver, these risks and uncertainties include

interpretations or reinterpretations of geologic information; u nfavorable exploration results; inability to

obtain permits required for future exploration, development or production; general economic conditions

and conditions affecting the industries in which the Company operates; the uncertainty of regulatory

requirements and approvals; fluctuating mineral and commodity p rices; the ability to obtain necessary

f u t u r e f i n a n c i n g o n a c c e p t a b l e t e r m s o r a t a l l ; a n d r i s k s a s s o ciated with the mining industry such as

economic factors (including future commodity prices, currency f luctuations and energy prices), ground

conditions and other factors limiting mine access, failure of p lant, 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, labor relations, social and political

developments and other risks of the mining industry. Although t he Company has attempted to identify

important factors that could cause actual results to differ mat erially 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 undue reliance on such information. Additional information

regarding the factors that may c ause actual results to differ m aterially from this forward‐looking

information is available in Americas Silver’s filings with the Canadian Securities Administrators on SEDAR

and with the SEC. Americas Silver does not undertake any obligation to update publicly or otherwise

revise any forward‐looking information whether as a result of n ew information, future events or other

such factors which affect this information, except as required by law. Americas Silver does not give any

assurance (1) that Americas Silver will achieve its expectations, or (2) concerning the result or timing

thereof. All subsequent written and oral forward‐looking information concerning Americas Silver, the

EC120 Project, or any person acting on the behalf of Americas Silver are expressly qualified in their entirety

by the cautionary statements above.

No Offer or Solicitation

This press release is for informational purposes only and does not constitute an offer to sell or the

solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in

which such offer, solicitation or sale would be unlawful prior to registration or qualification under the

securities laws of any such jurisdiction. No offer or sale of securities shall be made except pursuant to

registration under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and

any applicable state securities laws or in compliance with an exemption therefrom.

Cautionary Note to U.S. Investors:

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.

W h i l e t h e t e r m s “ m i n e r a l r e s o u r c e ” , “ m e a s u r e d m i n e r a l r e s o u r c e ”, “indicated mineral resource”, and

“inferred mineral resource” are recognized and required by Cana dian regulations, they are not defined

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 Co mmission (“SEC”). A s 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 legal 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 the mineral deposits in these categories will ever be

converted into reserves.

For more information:

Darren Blasutti

President and CEO

416‐848‐9503

Andrea Totino

IR Manager

416‐866‐1866

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