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2005 Financial Results

02.16.2006

AMERIGO RESOURCES LTD. (Vancouver, British Columbia) reported results of the year ended December 31, 2005 today. Significant events are as follows:

• Net earnings after tax for the year ended December 31, 2005 were US$17,992,467, 79% higher than restated earnings of US$10,049,614 in fiscal 2004. Net earnings in 2005 are after year-end adjustments of US$770,000 and settlement provisions of US$1.7M in Q4 due to lower year end molybdenum prices. Annual earnings were higher in 2005 due to higher copper prices and the contribution of molybdenum production starting in May 2005. Net earnings in 2004 were restated for adjustments to future income tax assets to accord with Canadian GAAP.
   
• Earnings per share for the year ended December 31, 2005 were US$0.2287 non diluted, from earnings per share of US$0.1586 non diluted in fiscal 2004.
   
• Cash flow from operations was US$21,874,229 in the year ended December 31, 2005,compared to cash flow from operations of US$14,029,775 in the year ended December 31, 2005.
   
• Copper production in fiscal 2005 was 29.88 million pounds, compared to 31.12 million pounds produced in fiscal 2004. Copper production did not meet the annual forecast due to low extraction rates from Colihues, unfavourable ore characteristics from the El Teniente tailings during the year and the Company’s emphasis on maximizing molybdenum production at prevailing high prices.
   
• High-volume extraction equipment at Colihues – The first stage of monitoring equipment for the extraction of Colihues tailings was commissioned in February 2006 with initial operating results performing to design expectations. Installation of the second stage of equipment is expected to be commissioned in March 2006, with additional stages to be added during the remainder of the year.
   
• Molybdenum production in fiscal 2005 was 631,843 pounds from eight months of production, 26% higher than original 2005 projections of 500,000 pounds of moly.
   
• 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 lower at US$0.60/lb in fiscal 2005, compared to a cash cost of US$0.69/lb in the preceding fiscal year, despite significantly higher smelter and refinery charges.
  
  Total costs (the aggregate of cash costs, El Teniente royalty, depreciation and accretion) for the year ended December 31, 2005 were US$0.93/lb compared to US$0.88/lb in fiscal 2004 due to higher royalty payments to El Teniente resulting from higher copper prices.
   
• Capital plant expenditures for the molybdenum plant and expansion of the copper processing facility of US$26.7M were undertaken in 2005 and were funded from cash flow from operations.
   
• Cash balance was US$13M at December 31, 2005 after $26.7M of capital expenditures and the payment to shareholders of a semi-annual dividend of $3.2M.
   
• Strategic investment - Subsequent to December 31, 2005 Amerigo acquired beneficial ownership of 26,643,000 common shares of Chariot Resources Limited (“Chariot”) and 11,532,000 share purchase warrants of Chariot. Each share purchase warrant entitles Amerigo to acquire an additional common share of Chariot at a price of Cdn$0.35 per share until December 22, 2006. The common shares and warrants acquired representapproximately 19.7% of Chariot's 193,965,147 issued and outstanding common shares, which amount includes common shares issuable on the exercise of the warrants. The Company purchased these securities for investment purposes, as it believes in the potential of Chariot and its Marcona copper project in southern Peru.
   
• Dividend – On August 4, 2005 the Board of Directors of Amerigo declared a semi-annual dividend of Cdn 4.5 cents that was paid to shareholders on September 1, 2005. On February 16, 2006 the Board of Directors of Amerigo declared a dividend of Cdn 4.5 cents per share payable on April 7, 2006 to shareholders of record as of March 31, 2006.

The information herein contained should be read in conjunction with the Audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended December 31, 2005, 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:

Michael J. Kuta, General Counsel & 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 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.