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Merrill Lynch Increases Investment in Amerigo Resources Now hold 19.99% of Company

01.21.2005

AMERIGO RESOURCES LTD. (Vancouver, British Columbia) Merrill Lynch Investment Managers of London, England has increased its investment in Amerigo Resources by C$2,667,000 through the exercise of 3,810,000 warrants. As a result of the exercise, Amerigo’s cash position increased to US$10,024,000.

The warrants were acquired by Merrill Lynch in July 2003 as part of the C$29 million unit financing undertaken by Amerigo Resources for the purchase of Minera Valle Central, a copper producing company with a long-term contract to process tailings from Codelco’s El Teniente copper mine. Merrill Lynch continues to hold 1,190,000 of the warrants, which trade on the TSX under the symbol ARG.WT and which are exercisable at C$0.70 until expiry on June 20, 2005.

The Exercise of the warrants brings the Merrill Lynch holdings to 13,810,000 common shares, representing 19.99% of a total of 69,064,071 shares of Amerigo Resources outstanding.

Amerigo Resources Ltd. is a Canadian junior copper producing company forecasting 14,000 tonnes of copper production in 2004 from its MVC operations near Santiago, Chile. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX

For further information, please contact:

Jeffrey Giesbrecht, Secretary
Amerigo Resources Ltd.
(604) 697-6201

The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forwardlooking statements as that term is defined in the private securities litigation reform act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company’s filings with the TSX and on SEDAR.