Financing To Fully Fund Development Of Relief Canyon Project

TORONTO, ON – Darren Blasutti, President & CEO of Americas Silver Corporation said, “The fourth quarter of 2018 was the best production quarter and representative of expected production going forward, with San Rafael reaching targeted throughput levels, and improved operating performance at Galena in 2019. “With the votes now successfully behind us for both Americas Silver and Pershing Gold, we are only waiting on the CFIUS review prior to closing the transaction. We expect to announce the transaction closing, concurrent with a mine construction decision, and a financing announcement that we expect to fully fund the development of the Relief Canyon Project.”

Pershing Acquisition Update and 2019 Guidance

On January 9, 2019, Americas Silver Corporation and Pershing Gold Corporation announced their respective shareholders provided the requisite approvals for the previously announced business combination transaction between the two companies. Completion of the Transaction remains subject to satisfaction or waiver of certain customary conditions, including the completion of review and approval by the Committee on Foreign Investment in the United States (CFIUS). All deadlines for declarations and transactions under review by CFIUS are currently tolled due to the lapse in appropriations attributable to the partial U.S. government shutdown.

In anticipation of the closing of the Transaction, discussions are proceeding well with parties interested in providing financing for the development of the Relief Canyon Mine. As a result of the delay in closing, the Company is assessing its 2019 guidance and intends to update the market upon completion of the Transaction.

Consolidated silver equivalent production for fiscal 2018 was approximately 6,286,531 ounces, an increase of 32% over fiscal 2017. Consolidated silver production for fiscal 2018 was 1,417,537 silver ounces, a decrease of 31% over fiscal 2017. The significant increase in consolidated silver equivalent production and decrease in silver production relative to 2017 was primarily the result of the San Rafael mine having its first full year of operation after declaring commercial production in December 2017. San Rafael contributed over 190% greater zinc production and over 125% greater lead production, though with approximately 50% lower silver production due to mine sequencing. Similarly, consolidated cash costs decreased over 100% to negative ($0.59) per silver ounce compared to fiscal 2017, and AISC decreased 26% to $9.82 per silver ounce compared to fiscal 2017.

Production at the Galena Complex was negatively impacted by two issues affecting the No.3 Shaft: a 10-day suspension of hoisting in late April to allow the repair of steel sets in the shaft, and a 17-day shutdown of the hoist in June to address a mechanical failure in the brake mechanism. The Complex was temporarily considered to be on care and maintenance for the 17-day shutdown as repairs were performed with certain costs excluded from the cash costs and AISC calculations. Repairs were completed by the end of June 2018. As a result, the Galena Complex produced 969,387 ounces of silver and 2,121,205 ounces of silver equivalent during the year at cash costs of $16.68 per silver ounce and AISC of $23.45 per silver ounce, respectively. Silver and silver equivalent production decreased 15% and 10%, respectively, compared to fiscal 2017. Cash costs increased by 13% compared to fiscal 2017, and AISC were up 16% year-over-year.

The company’s address is Suite 2870, 145 King Street West, Toronto, ON M5H 1J8,  (416) 848-9503, www.americassilvercorp.com.