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2006 Financial Results

02.21.2007

VANCOUVER, BRITISH COLUMBIA – February 21/CNW/Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") reported results for the year ended December 31, 2006 today. Significant events are as follows:

• Net earnings after tax for the year ended December 31, 2006 were $39,283,683, 119% higher than earnings of $17,992,467 in 2005 due to higher copper prices more than offsetting lower production and profit from the sale of a strategic investment. Despite production restrictions imposed by El Teniente, 2006 is an record earnings year for Amerigo.
• Earnings per share for the year were 42¢, compared to earnings per share of 23¢ in 2005.
• Cash flow from operating activities was $26,576,910 or 29¢ per share in 2006, compared to $21,874,229 or 28¢ per share in 2005.
• Production in 2006 was 24.67 million pounds of copper and 674,549 pounds of molybdenum, a copper production decrease of 17% due to restricted tailings flow and various temporary plant shutdowns imposed by El Teniente. Molybdenum production increased 7% due to a full year of molybdenum production.
• Gross copper selling price was $3.33/lb after settlement adjustments, compared to an LME average price of $3.05/lb during the year. Realized copper price (copper revenue net of smelter and refinery charges and including settlement adjustments to prior year sales divided by copper pounds sold in the year) was $2.74/lb.
• Cash cost (the aggregate of smelter, refinery and other charges, production costs net of molybdenum-related net benefits, administration and transportation costs) before El Teniente royalty was $1.20/lb in 2006, compared to 60¢/lb in 2005. The increase in cash cost was caused by lower copper production due to production constraints, higher smelter and refinery costs due to the effect of copper price participation with the smelter and higher power, steel and maintenance costs.
• Total cost (the aggregate of cash cost, El Teniente royalty, MVC stock-based compensation, depreciation and accretion) for the year ended December 31, 2006 was $1.80/lb compared to 94¢/lb in 2005. The increase in total cost was driven by higher cash costs and higher royalty payments to El Teniente caused by higher copper prices. .
• Capital plant expenditures for the construction of two thickeners and an industrial water recovery system required to meet Chilean environmental regulations and for the final stages of the MVC plant expansion were $31,943,881 in 2006, funded substantially from operating cash flow.
• Cash balance was $26,574,059 at December 31, 2006 after $27,890,637 of cash payments for capital expenditures, dividend payments of $7,449,203 and the repayment in full of a $3,736,979 note and interest that was issued in 2003 in connection with the acquisition of MVC.
• Dividend – In accordance with Amerigo’s stated policy, two semi-annual dividends of Cdn 4.5¢ per share each were paid in 2006, for aggregate dividends of $7,449,203.
• Determination of dividend – Amerigo’s Board of Directors will consider and resolve on the level of the next semi-annual dividend at its scheduled February 24, 2007 meeting.
• Cash and marketable securities are $27,581,427 at the date of this report.

The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2006, which will be available at the Company’s website at www.amerigoresources.com and at www.sedar.com.

Amerigo Resources Ltd. is a Canadian junior company producing copper and molybdenum from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX