Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") announced today
that it has received official notice that the board of directors of the
Corporacion Nacional del Cobre de Chile ("Codelco") has approved the major terms
of an agreement between Codelco's El Teniente Division ("ET") and the Company's
Chilean subsidiary, Minera Valle Central, S.A. ("MVC") granting MVC the rights
to process the historic tailings in the Cauquenes deposit located near MVC's
plant and extending the fresh tailings contract to 2037. 


Dr. Klaus Zeitler, Amerigo's President and CEO, stated "This is a major
milestone for the Company. It will allow Amerigo to double annual copper and
molybdenum production and will extend from 2021 to 2037 MVC's right to process
fresh and old tailings from El Teniente. The Company anticipates receiving final
environmental and regulatory approval for the project within the next several
months, during which time the Company and ET will work together to finalize the
details of the formal agreement. The Company is also currently in advanced
discussions to obtain project financing."


Rob Henderson, Amerigo's Chief Operating Officer, added "When Cauquenes reaches
full production levels in 2015, Amerigo's per pound production costs are
estimated to be reduced by more than 20% from current levels, significantly
improving the Company's financial results and reducing MVC's dependence on El
Teniente's daily production. The feasibility study is in its final stages and
MVC is now in a position to place equipment orders for the first phase of the
expansion."


Copper production from Cauquenes will be subject to a sliding scale royalty for
LME prices from US$1.95 to US$5.50 per pound, with a base rate of 16% that will
vary with the copper price. There will be an adjustment mechanism in the formal
agreement for prices outside of the LME price range for the Cauquenes royalty.
The fresh tailings royalty will also be changed to a sliding scale and modified
to remove disadvantageous foreign exchange rate provisions. .The base rate for
the fresh tailings royalty will be 13.5%, and the threshold increased from
US$0.80 per pound to US$1.95 per pound, the same minimum level as that for the
Cauquenes royalty. The minimum price level for paying royalties is based on
MVC's operating costs, including depreciation and financing costs, and will be
adjusted to MVC's actual costs one year after Cauquenes is in full production.
The parties will meet and review the cost and royalty structure if and when
MVC's cost structure changes significantly. The formal agreement will also
contain provisions allowing Codelco to purchase MVC's operations at certain
predetermined times based on their future net present value.


The Company will provide additional details after all environmental approvals
are obtained, the feasibility study has been completed, and financing
arrangements and the formal agreement have been finalized.


Amerigo Resources Ltd. produces copper and molybdenum under a long term
partnership with the world's largest copper producer, Codelco, by means of
processing fresh and old tailings from the world's largest underground copper
mine, El Teniente near Santiago, Chile. Tel: (604) 681-2802; Fax: (604)
682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX


Certain of the information and statements contained herein that are not
historical facts, constitute "forward-looking information" within the meaning of
the Securities Act (British Columbia), Securities Act (Ontario) and the
Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking
Information is often, but not always, identified by the use of words such as
"seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend";
statements that an event or result is "due" on or "may", "will", "should",
"could", or might" occur or be achieved; and, other similar expressions. More
specifically, Forward-Looking Information contained herein includes, without
limitation, information concerning future tailings production volumes and the
Company's copper and molybdenum production, all of which involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such Forward-Looking Information; including, without
limitation, material factors and assumptions relating to, and risks and
uncertainties associated with, the supply of tailings from El Teniente and
extraction of tailings from the Colihues and Cauquenes tailings impoundments,
the achievement and maintenance of planned production rates, the evolving legal
and political policies of Chile, the volatility in the Chilean economy, military
unrest or terrorist actions, metal price fluctuations, favourable governmental
relations, the availability of financing for activities when required and on
acceptable terms, the estimation of mineral resources and reserves, current and
future environmental and regulatory requirements, the availability and timely
receipt of permits, approvals and licenses, industrial or environmental
accidents, equipment breakdowns, availability of and competition for future
mineral acquisition opportunities, availability and cost of insurance, labour
disputes, land claims, the inherent uncertainty of production and cost
estimates, currency fluctuations, expectations and beliefs of management and
other risks and uncertainties, including those described under Risk Factors in
the Company's Annual Information Form and in Management's Discussion and
Analysis in the Company's financial statements. 


Such Forward-Looking Information is based upon the Company's assumptions
regarding global and Chilean economic, political and market conditions and the
price of metals, including copper and molybdenum, and future tailings production
volumes and the Company's copper and molybdenum production. Among the factors
that have a direct bearing on the Company's future results of operations and
financial conditions are changes in project parameters as plans continue to be
refined, interruptions in the supply of fresh tailings from El Teniente, delays
in the extraction of tailings from the Colihues and Cauquenes tailings
impoundments, a change in government policies, competition, currency
fluctuations and restrictions and technological changes, among other things.
Should one or more of any of the aforementioned risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from any conclusions, forecasts or projections described in
the Forward-Looking Information. Accordingly, readers are advised not to place
undue reliance on Forward-Looking Information. Except as required under
applicable securities legislation, the Company undertakes no obligation to
publicly update or revise Forward-Looking Information, whether as a result of
new information, future events or otherwise


FOR FURTHER INFORMATION PLEASE CONTACT: 
Amerigo Resources Ltd.
Dr. Klaus Zeitler
President and CEO
(604) 218-7013


Amerigo Resources Ltd.
(604) 697-6201
www.amerigoresources.com
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