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Exploration update on Sault area Iron Oxide Copper Gold Properties

02.26.2003

Amerigo Resources Ltd. wishes to provide an update on current and planned exploration on its four properties in the Sault Ste. Marie region of Ontario. The properties cover an area of about 50 square kilometers, in three separate blocks, and are considered to have potential for iron oxide copper-gold deposits of the Olympic Dam-type.

A detailed airborne magnetic survey was recently completed over the Coppercorp property. A total of 825 line kilometers at a line spacing of 100 metres was flown to resolve the regional magnetic high that occurs on the north-central boundary of the property and to define further targets for ground follow up.

The regional magnetic high is one of the targets on the Coppercorp Property that will be followed up with detailed mapping and sampling this year. Other targets include:

· brecciated felsic intrusive rocks, associated with copper mineralization, that are partly coincident with the magnetic high, .

· gold-enriched copper mineralization to the north and east of the Coppercorp mine workings with values up to 19.5 g Au/tonne reported in assessment files and up to 5.36 g Au/tonne in recent prospecting (see News Release 2003-2 dated January 23, 2003) .

· the source of a chalcocite – rich boulder, that returned a value of 41.75% Cu, found near the UbetUwanit showing.

· strike extensions of the vein systems mined at the Coppercorp mine (1965-1972 production of just over 1 million tons grading 1.16% Cu).

Other longer-term targets, include the down-dip extension of the mined copper-rich fissure veins, and possible intrusion-related mineralization at depth below the veins.

An aggressive program of exploration with an expected budget of about $250,000 will be planned for 2003 using the results of the airborne geophysical survey. The program will be designed to define targets for drilling later in the year.

Amerigo is earning a 55% interest in the Island Copper property from Falconbridge Limited and is the 100% owner of the adjoining Bellevue property. Together, these properties cover an area of approximately 16 square kilometers of Archean gneiss and Proterozoic sedimentary and volcanic rocks. An alkali granite, that intrudes the gneiss on the Island Copper property, contains copper mineralization, in the form of chalcopyrite, associated with specular hematite. A drilling program completed in the fall of 2002 intersected 1.5% Cu and 0.2 g Au/tonne over eight metres, including 4.4% Cu and 0.5g Au/tonne over two metres (see Amerigo news release dated February 5, 2003).

Historical drilling on the property intersected 4.02% Cu over 9.5 metres, including a 3-metre section grading 6.22% Cu and 1.7g Au/tonne.

A detailed airborne magnetic survey was flown over the Bellevue and Island Copper properties, and also over the Deroche property to the east. The survey is designed to provide targets for ground follow-up, and to resolve a large regional magnetic anomaly located on the Bellevue property.

The 2 square kilometre Deroche property covers a fault-bounded block within Archean granite. Proterozoic sedimentary rocks intruded by diabase occur within this fault-block. The southernmost fault is an extension of the regional scale Bellevue fault, which contains abundant hematite. Hematite also occurs on the Deroche property, both in the sedimentary rocks and in the granite. Recent prospecting indicates that the granite is locally brecciated and contains quartz veins/stockworks locally with pyrite associated with the specular hematite. Mapping and prospecting of the property, specifically targeting airborne magnetic anomalies, will be undertaken by Amerigo this spring.

Amerigo Resources Ltd. is a junior exploration company with properties in Ontario and Quebec. The company is actively exploring for Olympic Dam style deposits on four properties in the Sault Ste. Marie area of Ontario.

Roger Moss, President, Tel: (416) 516-6050 E-Mail: roger.moss@sympatico.ca

Ian E. Gallie, Director, Tel: (250) 598-9091 E-Mail: gallie@horizon.bc.ca

or visit our website at: www.amerigoresources.com

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