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Overallotment Option Completed Additional $0.7 Million Financing Received

07.18.2003

AMERIGO RESOURCES LTD. is pleased to announce the closing of the $2 million oversubscription option for the Company’s private placement.  A total of 46,598,501 units have now been issued for proceeds of $28,000,000, including the previous closing with total proceeds of CDN$26,000,000.  Each unit consists of one share and one-half of one warrant, with each full warrant exercisable until June 18, 2005 at $0.70. The agents were Salman Partners Inc. and CIBC World Markets Inc., who have received a 6% commission and who have received a total of 1,268,974 agent’s warrants entitling the agents to purchase units (consisting of one share and one-half of one warrant, with each full warrant exercisable until June 18, 2005 at $0.70) for $0.60 until June 18, 2005.

In addition to the oversubscription option, the Company is completing a non-brokered private placement of 1,159,333 units having the same terms.  Amerigo has received subscriptions for approximately $0.7 million, predominately from three of the vendors of Minera Valle Central S.A. (MVC) from whom Amerigo purchased MVC on July 10, 2003.

The proceeds of the overallotment and the subsequent private placement will be used to fund the planned expansion of copper production of MVC.  The 4,459,333 units and 99,000 agent’s warrants (and underlying securities) issued today will have a hold period expiring on November 19, 2003. The completion of the private placements is subject to final acceptance of the TSX Venture Exchange.

Amerigo Resources Ltd. is a Canadian junior copper production company currently producing approximately 12,000 tonnes of copper per annum from its MVC operations near Santiago, Chile.  Amerigo is also exploring for Olympic Dam style copper-gold deposits on four properties in the Sault Ste. Marie area of Ontario, Canada.

For further information, please contact:   

Jeffrey Giesbrecht, Secretary  (604) 641.2779

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.