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Earnings of US$6.4M compared to US$5.1M in Q1-2007

05.07.2008

23% copper production increase from Q1-2007

Higher production and strong copper prices offset by unprecedented high power costs in Chile

US$6M dividend paid in Q1-2008

Q2-2008 production impacted by disruptions of tailings flow to MVC

VANCOUVER, BRITISH COLUMBIA – May 7/Amerigo Resources Ltd. (TSX:ARG) (“Amerigo” or the “Company”) reported today results for the quarter ended March 31, 2008. Significant events are as follows:

• Net earnings after tax in Q1-2008 were $6,383,012 compared to $5,551,282 in Q1-2007.
• Earnings per share for the quarter were 7¢, compared to earnings per share of 6¢ in Q1-2007.
• Production in Q1-2008 was 7.8 million pounds of copper and 148,670 pounds of molybdenum, an increase of 23% in copper production from Q1-2007 due to normalized operations at MVC and processing of old tailings in the amount of 11,000 to 13,000 tonnes per day. Molybdenum production increased 20% due to higher molybdenum content in fresh tailings.
• The Company’s copper selling price before smelter, refinery and other charges in Q1-2008 was $3.56/lb; in addition, quarterly revenue included $7,131,784 of positive settlement adjustments to prior quarters’ sales.
• Despite higher production and strong copper prices in the quarter, earnings were significantly affected by unprecedented high power costs in Chile. Power costs in Q1-2008 were $13,903,331, compared to $3,609,673 in Q1-2007, an increase of $10,293,658 or 285%, which resulted in a major adverse effect on the Company’s earnings. Power costs represented 71% of cash costs in Q1-2008, compared to 39% in Q1-2007, significantly higher than for copper producers with traditional mining operations.
• Cash cost (the aggregate of smelter, refinery and other charges, production costs net of molybdenum-related net benefits, administration and transportation costs) before El Teniente royalty was $2.51/lb in Q1-2008, compared to $1.47/lb in Q1-2007. The increase in cash cost was caused almost exclusively by unprecedented high power costs, mitigated by higher production levels.
• Total cost (the aggregate of cash cost, El Teniente royalty, MVC stock-based compensation, depreciation and accretion) for the quarter ended March 31, 2008 was $3.34/lb compared to $2.03/lb in Q1-2007. The increase in total cost was driven fundamentally by higher cash costs and affected to a lesser degree by higher royalties to El Teniente and higher amortization charges.
• Cash flow from operating activities was $2,197,096 or 2¢ per share in Q1-2008, compared to $7,281,275 or 8¢ per share in Q1-2007 due mostly to an increase of $9,356,009 in accounts receivable from higher production and stronger copper prices.
• The Company made the strategic decision to become substantially energy self-sufficient and to limit its exposure to high power costs through the purchase of two used 10 megawatt generators. The project has an estimated capital cost of $14.3M and, pending receipt of environmental approvals, the generators are scheduled to be operational in the second half of 2008.
• Cash payments for capital expenditures in Q1-2008 were $6,870,595.
• Dividends – On February 27, 2008 the Company declared a dividend of $6,018,524 or Cdn 6.5¢ per share, paid on April 2, 2008, to shareholders of record as of March 25, 2008. The Company advanced the funds to its transfer agent on March 30, 2008 to ensure dividend payments were made to shareholders on a timely basis.
• Cash balance was $10,959,717 at March 31, 2008 after $6,870,595 of cash payments for capital expenditures and $6,018,524 in dividend payments.
• The Company recorded $4,505,662 as other comprehensive loss in Q1-2008 from the fair value adjustments of two strategic investments during the quarter. Other comprehensive loss is not a component of net earnings.
• Q2-2008 production to date has been adversely impacted due to the effect of the labour disruption caused by the dispute between Codelco and workers of subcontractors providing services at several of Codelco’s mines, including El Teniente. As a result, the Company experienced disruptions to the flow of tailings during the month of April and the first week of May. Management has been informed that the dispute has now been resolved, and that operations will return to normal within the next few days.

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 quarter ended March 31, 2008, 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 (604) 681-2802
Amerigo Resources Ltd. (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 LTD.

SELECTED FINANCIAL INFORMATION

QUARTERS ENDED MARCH 31, 2008 AND 2007

All figures expressed in US Dollars

AMERIGO RESOURCES LTD.
SELECTED TRAILING DATA

All figures expressed in US Dollars