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Record Q1 earnings of US$5.6M up 21% from Q1-2006 despite production restrictions

05.02.2007

Full fresh tailings flow restored

US$5.3M dividend declared

VANCOUVER, BRITISH COLUMBIA – May 2/CNW/Amerigo Resources Ltd. (TSX:ARG) (“Amerigo” or the “Company”) reported results for the quarter ended March 31, 2007 today. Significant events are as follows:

• Net earnings after tax for the quarter ended March 31, 2007 were $5,551,282, 21% higher than earnings of $4,606,768 in Q1-2006 due to a combination of higher copper prices offsetting lower production. Even with plant shutdowns in connection with final bridge repairs, Q1-2007 results were an earnings record for the first quarter.



• Earnings per share for the quarter ended March 31, 2007 were 6¢ fully diluted, compared to fully diluted earnings per share of 5¢ in Q1-2006.



• Cash flow from operating activities was $6,882,868, or 7¢ per share in Q1-2007, compared to $4,085,418 or 5¢ per share in Q1-2006.



• Production in Q1-2007 was 6.33 million pounds of copper and 123,448 pounds of molybdenum, a production decrease of 6% in copper and 30% in molybdenum from Q1-2006 due to plant shutdowns and low molybdenum content in fresh tailings. Due to the plant shutdowns MVC operated only 84% of operating days in the quarter.



• Gross copper selling price was $3.03/lb after settlement adjustments, compared to an LME average price of $2.69/lb during the quarter. Realized copper price (copper revenue net of smelter and refinery charges and including settlement adjustments to prior quarter sales divided by copper pounds sold in the quarter) was $2.43/lb.



• Cash costs (the aggregate of smelter, refinery and other charges, production costs net of molybdenum-related net benefits, administration and transportation costs) before El Teniente royalty were $1.47/lb in Q1-2007, compared to cash costs of $1.39/lb in Q1-2006. The increase in cash costs was caused by higher power, smelter and refinery costs, mitigated by the positive effect of strong molybdenum by-product credits. Power costs increased substantially due to higher marginal power surcharges in Chile. Smelter and refinery costs remained at significantly higher 2006 levels as MVC was still fulfilling its 2006 copper quota in Q1-2007.



• Total costs (the aggregate of cash costs, El Teniente royalty, MVC stock-based compensation, depreciation and accretion) for the quarter ended March 31, 2007 were $2.03/lb compared to $1.85/lb in Q1-2006. The increase in total costs was driven by higher cash costs and higher royalty payments to El Teniente due to higher copper prices.



• Capital plant additions in Q1-2007 were $1,747,003, for final work on the industrial water recovery system, civil works and mill refurbishing. Cash payments for capital expenditures in the quarter were $5,532,826 funded from operating cash flow.



• Cash balance was $28,743,136 at March 31, 2007 after payments of $5,532,826 for capital expenditures.



• Dividend – On February 28, 2007 a dividend of $5,286,918 or Cdn 6.5¢ per share was declared to shareholders of record as of March 27, 2007. The dividend was paid on April 4, 2007.

The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2007, 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

For further information, please contact:
Dr. Klaus Zeitler, President
Amerigo Resources Ltd. (604) 681-2802
(604) 218-7013

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 forward-looking statements within the meaning of 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. Forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change.

AMERIGO RESOURCES LIMITED
SELECTED FINANCIAL INFORMATION

QUARTERS ENDED MARCH 31, 2007 AND 2006
All figures are in US Dollars

Consolidated Balance Sheets

Consolidated Statements of Operations

Consolidated Statements of Cash Flows