USA.TO · 2019-07-30 12:00:00

Americas Silver Reports Second Quarter Production Results and Relief Canyon Construction Update

Production Results Mine Development & Operations

AMERICAS SILVER REPORTS SECOND QUARTER PRODUCTION RESULTS AND RELIEF CANYON

CONSTRUCTION UPDATE

TORONTO, ONTARIO—July 30, 2019—Americas Silver Corporation (TSX: USA) (NYSE American: USAS)

(“Americas Silver” or the “Compa ny”), a growing North American precious metals producer, announces

Q2, 2019 production and operating cost results on a consolidated and individual basis for its Cosalá

Operations and Galena Complex and a construction update on the Relief Canyon gold mine. All figures are

in U.S. dollars.

Second Quarter Highlights

 Consolidated silver production of approximately 1.7 million silver equivalenti ounces and 345,695 silver

ounces, representing an increase of 15% year‐over‐year to both silver and silver equivalent.

 Consolidated cash costsii were approximately $8.28 per silver ounce and consolidated all‐in sustaining

costs (“AISC”) were approximately $16.15 per silver ounce, both representing an increase year‐over‐

year and from the prior quarter. These increased costs were primarily the result of lower realized prices

for zinc and lead and lower production at the Galena Complex.

 For the first half of 2019, consolidated silver production of a pproximately 3.4 million silver equivalent

ounces and 740,000 silver ounces with consolidated cash costs of approximately $3.60 per silver ounce

and consolidated AISC of approximately $10.50 per silver ounce.

 Guidance for 2019 remains unchanged at 1.6 – 2.0 million silver ounces and 6.6 – 7.0 million silver

equivalent ounces at cash costs of $4.00 to $6.00 per silver ou nce and AISC of $10.00 to $12.00 per

silver ounce. The Company expects to release its second quarter financial results on or before August

14, 2019.

 Construction is proceeding as expected at the Relief Canyon Mine with leach pad activities progressing,

mobilization of the mining contractor expected later this week and all fabrication work on the crusher

and conveyors progressing to meet scheduled delivery in the third quarter. First gold pour is expected

in late Q4, 2019.

 Milled tonnage at the Cosalá Operations increased by 13% year‐o ver‐year, with the San Rafael mine

sustaining an average milling rate of approximately 1,750 tonnes per operating day during the quarter,

resulting in production of approximately 1.3 million silver equ ivalent ounces, including approximately

145,000 silver ounces. Cash costs were approximately negative ($18.27) per silver ounce and AISC were

approximately negative ($11.66) per silver ounce, representing increases of 70% and 72%, respectively,

when compared to prior year, largely due to lower zinc and lead prices and higher treatment and

refining charges.

 The Galena Complex produced approximately 383,000 silver equiva lent ounces, including

approximately 200,000 silver ounces , representing decreases of 3% and 9%, respectively, when

compared to Q2, 2018. Cash costs were approximately $27.55 per silver ounce and AISC were

approximately $36.35 per silver ounce, representing increases of 50% and 36%, respectively, when

compared to the same period. These increases were largely due to a focus on development over

production given low metals prices during the quarter.

“The Company remains on target to achieve its full year production and cost guidance despite the expected

lower production from the Galena Complex and lower realized metal prices in the quarter,” said Americas

Silver President and CEO Darren Blasutti. “The second half of 2 019 will be a very exciting period for our

Company as we expect not only higher silver production, but mos t importantly, first gold pour from the

Relief Canyon Mine.”

Consolidated Second Quarter Production Details

Consolidated silver production for the second quarter of 2019 w as 345,695 ounces and silver equivalent

production was approximately 1.7 million ounces, an increase of 15% year‐over‐year for both metrics.

Consolidated cash costs increased 235% to $8.28 per silver ounce year‐over‐year and AISC increased 199%

to $16.15 per silver ounce compared year‐over‐year. Consolidated zinc production increased by 27% year‐

over‐year, while consolidated lead production increased by 16% year‐over‐year.

Table 1

Consolidated Production Highlights

Q2 2019 Q2 2018 Change Q1 2019 Change

Processed Ore (tonnes milled) 186,310 164,313 13% 182,029 2%

Silver Production (ounces) 345,695 301,711 15% 393,824 ‐12%

Silver Equivalent Production (ounces) 1,683,358 1,462,170 15% 1 ,754,839 ‐4%

Silver Grade (grams per tonne) 76 77 ‐1% 87 ‐13%

Cost of Sales ($ per equiv. ounce silver) $8.75 $8.20 7% $7.11 23%

Cash Costs ($ per ounce silver) $8.28 ($6.15) >100% ($0.50) >100%

All‐in Sustaining Costs ($ per ounce silver) $16.15 $5.40 >100% $5.54 >100%

Zinc Production (pounds) 11,150,174 8,756,201 27% 11,263,623 ‐1 %

Lead Production (pounds) 7,237,607 6,216,592 16% 8,211,429 ‐12%

Cosalá Operations Production Details

The Cosalá Operations produced 145,410 ounces of silver during the second quarter of 2019 and 1.3 million

ounces of silver equivalent during the same period at cash cost s of negative ($18.27) per silver ounce and

AISC of negative ($11.66) per silver ounce. Silver production increased by 54% while silver equivalent

production increased by 25% over the prior year, respectively. Cash costs and AISC increased by 70% and

72%, respectively, compared to Q2, 2018, despite significant increases in zinc and lead production.

Table 2

Cosalá Operations Highlights

Q2 2019 Q2 2018 Change Q1 2019 Change

Processed Ore (tonnes milled) 156,998 138,708 13% 152,605 3%

Silver Production (ounces) 145,410 94,231 54% 173,169 ‐16%

Silver Equivalent Production (ounces) 1,300,009 1,041,246 25% 1 ,322,045 ‐2%

Silver Grade (grams per tonne) 49 42 17% 57 ‐14%

Cost of Sales ($ per equiv. ounce silver) $5.51 $5.36 3% $4.34 27%

Cash Costs ($ per ounce silver) ($18.27) ($60.13) ‐70% ($30.48) ‐40%

All‐in Sustaining Costs ($ per ounce silver) ($11.66) ($41.66) ‐72% ($25.85) ‐55%

Zinc Production (pounds) 11,150,174 8,756,201 27% 11,263,623 ‐1 %

Lead Production (pounds) 4,052,559 2,982,316 36% 4,626,233 ‐12%

Strong results were driven by sustained improvements in grade, mill throughput and metal recovery as

mining and milling operations generally expanded at San Rafael in Q2, 2019 compared to Q2, 2018. Ore

production from the Main Zone benefited from additional working headings providing greater operational

flexibility.

Silver and lead head grades in Q2, 2019 were lower compared to Q1, 2019 with steady zinc grades

consistent with the Mining Plan though expected to be slightly lower in the second half of 2019. Any

potential reduction in head grades over the remainder of the ye ar are expected to be largely offset by

further gains in mill throughput and metal recovery as additional flotation capacity was installed during the

second quarter with increased recoveries.

The increase in cash costs and AISC were largely the result of higher treatment and refining charges and

lower market prices for both zinc and lead during the quarter. Operating costs and capital expenditures

remain in line with management expectations.

Development of the incline ramp toward the Upper Zone continues to advance with the expectation of

accessing the area prior to the end of the year.

Galena Complex Production Details

As previously noted in Q1, 2019, two high‐tonnage stopes were i mpacted by separate ground falls in late

Q1, 2019 with follow‐on impact in Q2, 2019. The remaining active stopes were unable to replace the

tonnage loss associated with the impacted areas. Due to these issues, the Galena Complex produced

200,285 ounces of silver during Q2 2019 and 383,349 ounces of s ilver equivalent at cash costs of $27.55

per silver ounce and AISC of $36.35 per silver ounce. Silver and silver equivalent production decreased by

9% and 11%, respectively, compared to the prior quarter, and 3% and 9%, respectively, year‐over‐year.

Both cash costs and AISC represe nted an increase of 20% due to the noted lower production and lower

lead prices during the quarter.

In order to improve mining flexibility, the Galena team priorit ized underground development and gained

over 1,600 feet of advance durin g the quarter. New production a reas were established on the 2400 and

3200 levels. In addition, ongoing exploration activities conti nue to yield encouraging results which could

benefit production in the near term. Specifically, drilling on the 4900 level has identified new zones of

mineralization (129 and 130 Veins) near existing infrastructure and further extended the strike and vertical

extent of known resources (137, 146, 167, 168 and 168HW Veins).

Table 3

Galena Complex Highlights

Q2 2019 Q2 2018 Change Q1 2019 Change

Processed Ore (tonnes milled) 29,312 25,605 14% 29,424 0%

Silver Production (ounces) 200,285 207,480 ‐3% 220,655 ‐9%

Silver Equivalent Production (ounces) 383,349 420,924 ‐9% 432,7 94 ‐11%

Silver Grade (grams per tonne) 220 263 ‐16% 242 ‐9%

Cost of Sales ($ per equiv. ounce silver) $19.75 $15.24 30% $15 .55 27%

Cash Costs ($ per ounce silver) $27.55 $18.36 50% $23.03 20%

All‐in Sustaining Costs ($ per ounce silver) $36.35 $26.77 36% $30.17 20%

Lead Production (pounds) 3,185,048 3,234,276 ‐2% 3,585,196 ‐11%

Relief Canyon Update

Construction is advancing well at the fully funded Relief Canyon Mine. Preparation of the leach pad is

approximately 80% complete and installation of the liner has started. Mobilization of the mining contractor

is expected later this week. Work at the existing processing plant has started where upgrades will be made

to the refinery and emissions controls.

Further information on the Relief Canyon development will be ma de available periodically on the

Company’s website as construction progresses at www.americassilvercorp.com.

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 expects to begin producing gold in the fourth quarter

of 2019 at its fully funded Relief Canyon Mine in Nevada, USA which is currently in construction. The

Company also holds 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, Ame r i c a s S i l v e r ’ s e x p e c t a t i o n s , i n t e n t i o n s ,

plans, assumptions and beliefs wit h respect to, among other thi ngs, Americas Silver’s financing efforts;

production and cost performance at the Cosalá Operations and th e Galena Complex; construction,

production, development plans and performance expectations at the Relief Canyon Project and the impact

o n A m e r i c a s S i l v e r ’ s f i n a n c i a l p e r f o r m a n c e ; O f t e n , b u t n o t a l w ays, forward‐looking information can be

identified by forward‐looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”,

“potential’, “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. Forward‐looking information is based on the opinions and estimates of Americas Silver 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 Americas Silver

t o b e m a t e r i a l l y d i f f e r e n t f r o m t h o s e e x p r e s s e d o r i m p l i e d b y such forward‐looking information. With

respect to the business of Americas Silver, these risks and unc ertainties include interpretations or

reinterpretations of geologic information; unfavorable exploration results; inability to obtain permits

required for future exploration, development or production; gen eral economic conditions and conditions

affecting the industries in which the Company operates; the unc ertainty of regulatory requirements and

approvals; fluctuating mineral and commodity prices; the abilit y to obtain necessary future financing on

acceptable terms or at all; the ability to develop, complete co nstruction and operate the Relief Canyon

P r o j e c t ; a n d r i s k s a s s o c i a t e d w i t h t h e m i n i n g i n d u s t r y s u c h a s economic factors (including future

commodity prices, currency fluctuations and energy prices), gro und conditions and other factors limiting

mine access, failure of plant, equipment, processes and transpo rtation 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 and construction

expenditures, reclamation activities, labor relations, social a nd political developments and other risks of

the mining industry. Although the Company has attempted to iden tify important factors that could cause

actual results to 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 undue reliance on such information. Additional informatio n regarding the fact ors that may cause

actual results to differ materially from this forward‐looking information is available in Americas Silver’s

filings with the Canadian Securities Administrators on SEDAR an d 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 new 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 are expressly qu alified in their entirety by the cautionary

statements above.

For more information:

Darren Blasutti

President and CEO

Americas Silver Corporation

416‐848‐9503

i Silver equivalent production thr oughout this press release was calculated based on silver, zinc, and lead realized prices dur ing

each respective period.

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

further information and detailed reconciliations, please refer to the Company’s 2018 year‐end and quarterly MD&A. The

performance measures for the quarter ended June 30, 2019 are pr eliminary throughout this press release subject to refinement

from the Company’s second quarter financial results to be released on or before August 14, 2019.

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