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Earnings of US$8.3 million in Q3-2006 up 27% from Q3-2005 despite El Teniente production restraints

11.01.2006

VANCOUVER, BRITISH COLUMBIA – November 1/CNW/Amerigo Resources Ltd. (TSX:ARG) ("Amerigo" or the "Company") reported results for the quarter ended September 30, 2006 today. Significant events are as follows:

• Net earnings after tax for the quarter ended September 30, 2006 were US$8,251,071, 27% higher than earnings of US$6,503,415 in Q3-2005 due to a combination of higher copper prices offsetting lower production. Even with production restrictions imposed by El Teniente, Q3-2006 results were an earnings record for the third quarter.
   
• Earnings per share for the quarter ended September 30, 2006 were US9¢ non-diluted, compared to earnings per share of US8¢ in Q3-2005.
   
• Cash flow from operations was US$8,390,718 or US9¢ per share in Q3-2006, compared to cash flow from operations of US$7,768,731 or US9¢ in Q3-2005.
   
• Production in Q3-2006 was 4.72 million pounds of copper and 163,497 pounds of molybdenum, a production decrease of 38% in copper and 29% in molybdenum from Q3-2005 due to ongoing restricted tailings flow and various temporary plant shutdowns imposed by El Teniente.
   
• Gross copper selling price was US$3.67/lb after settlement adjustments, compared to an LME average of US$3.48/lb during the quarter. Realized copper price (copper revenue net of smelter and refinery charges and including settlement adjustments to prior quarter sales divided by copper pounds sold in the quarter) was US$3.04/lb.
   
• 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 US$1.03/lb in Q3-2006, compared to cash costs of US$0.22/lb in Q3-2005. The increase in cash costs was caused by lower copper production due to production constraints, higher smelter and refinery costs due to the effect of copper price participation with the smelter and higher production and maintenance costs overall.
   
• Total costs (the aggregate of cash costs, El Teniente royalty, MVC stock-based compensation, depreciation and accretion) for the quarter ended September 30, 2006 were US$1.84/lb compared to US$0.57/lb in Q3-2005. The increase in total costs was driven by higher smelter and refinery charges and higher royalty payments to El Teniente, both related to higher copper prices.
   
• Capital plant expenditures mainly for the construction of two thickeners and an industrial water recovery system required to meet Chilean environmental regulations were US$9,946,500 in Q3-2006, funded substantially from operating cash flow.
   
• Cash balance was US$12,562,294 at September 30, 2006 after US$9,946,500 of capital expenditures, a dividend payment of US$3,818,896 and an increase in Amerigo's strategic investment in Chariot Resources Limited "Chariot") of US$1,170,263, which increased Amerigo’s interest in Chariot to approximately 18% of Chariot’s issued and outstanding share capital as at September 30, 2006.
   
• Dividend – In accordance with Amerigo’s stated dividend policy, on September 1, 2006 a dividend of US$3,818,896 or CDN4.5¢per share was paid to shareholders of record as of August 18, 2006. Amerigo has paid aggregate dividends of US$7,449,203 in 2006.
   
• Subsequent event - A gain on sale of investment of US$8,530,377 (CDN$9,679,857) was realized on the sale of 31,812,500 Chariot common shares and 11,532,000 Chariot warrants on October 20, 2006. The gain will be recognized in earnings in Q4-2006.
   
• Cash and marketable securities are US$32M at the date of this report.

The information in this news release and the Selected Financial Information contained in the following page should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended September 30, 2006, 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

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.

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