Americas Silver Corporation Reports First Quarter 2019 Financial Results

TORONTO–(BUSINESS WIRE)–Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas
Silver” or the “Company”) today reported consolidated financial and
operational results for the first quarter of 2019.

This earnings release should be read in conjunction with the
Company’s Management’s Discussion and Analysis, Financial Statements and
Notes to Financial Statements for the corresponding period, which have
been posted on the Americas Silver Corporation SEDAR profile at www.sedar.com,
on its EDGAR profile at www.sec.gov,
and are also available on the Company’s website at www.americassilvercorp.com.
All figures are in U.S. dollars unless otherwise noted.

First Quarter Highlights

• Production of 1.8 million consolidated silver equivalent ounces¹,
  an increase of 9% year-over-year, including 0.4 million silver ounces.
• Revenue of $17.8 million and net loss of $2.8 million for the quarter
  or ($0.06) per share, a decrease of $2.6 million in revenue and an
  increase in the net loss of $3.3 million compared to Q1-2018 due
  primarily to lower metal prices and non-reoccurring expenses
  associated with the Pershing Gold acquisition.
• Consolidated by-product production totalling 11.3 million pounds of
  zinc and 8.2 million pounds of lead, representing increases of 54% and
  8%, respectively.
• Cost of sales of $7.11/oz. equivalent silver, by-product cash cost²
  of negative ($0.50)/oz. silver, and all-in sustaining cost²
  (“AISC”) of $5.54/oz. silver for the quarter, representing
  year-over-year decreases of 13% and 10% in cost of sales per
  equivalent silver ounce and AISC per ounce, respectively, and an
  increase of 82% in by-product cash cost per ounce.
• The Company had a cash balance of $3.4 million and working capital
  balance of $5.2 million as at March 31, 2019.

Subsequent to First Quarter Highlights

• Completion of the acquisition of Pershing Gold Corporation
  (“Pershing”) on April 3, 2019.
• Entered into financing agreements with Sandstorm Gold Ltd.
  (“Sandstorm”) for gross proceeds of approximately $42.5 million to
  fully fund the development of mining and heap leaching operations at
  the Relief Canyon Project (“Relief Canyon”).
• Board approval to commence construction of the Relief Canyon with
  first gold pour expected in late Q4-2019.
• Preliminary feasibility study and initial mineral reserve estimate for
  a combined operation at its 100% owned El Cajón and Zone 120
  silver-copper deposits highlighted by a probable mineral reserve of
  2.9 million tonnes containing 14.5 million ounces of silver and 26.5
  million pounds of copper.
• The Company agreed to sell its option for the right to acquire a 100%
  interest of the San Felipe property to Premier Gold Mines Ltd. for
  total consideration of $10.8 million.

The Company’s net loss was impacted by lower silver, zinc and lead
prices and by non-reoccurring charges associated with the Pershing Gold
Acquisition, specifically transaction costs ($1.0 million), and
incremental interest and financing costs related to the convertible
loans payable and promissory note ($0.5 million) associated with the
acquisition. Timing of metal sales relative to production further
contributed to the net loss compared to prior year. The Company also had
unrealized losses on non-hedge zinc forward contracts ($1.2 million)
during the quarter. Adjusting for these items, the net loss would have
been approximately $0.1 million. The Company generated cash from
operating activities before non-cash working capital items of $2.6
million for the first quarter of 2019 compared to $3.7 million in the
same period in 2018.

“The San Rafael mine had a record quarter due to improved recovery,
higher mill throughput, and increased grades, with substantial increases
in silver and by-product production,” said Darren Blasutti, President &
CEO of Americas Silver. “Earnings are expected to improve in the second
half of the year with the remaining costs for the Pershing acquisition
and Sandstorm financing to be captured in the second quarter.
Development of Relief Canyon is beginning as expected with construction
activities ramping up on schedule.”

Consolidated Production and Operating Costs

Consolidated silver equivalent production increased due to record
production results at the Cosalá Operations driven by sustained
improvements in mill throughput, grade, and metal recovery to
concentrate with San Rafael sustaining an average milling rate of
approximately 1,750 tonnes per operating day, cumulatively resulting in
54% greater zinc and 73% greater lead production. . The Galena Complex
negatively impacted consolidated production during the quarter as a
result of unplanned mill downtime, due to problems with the mill pinion
bearing in January, and the loss of two high-tonnage stopes in February
and March, resulting in a cumulative loss of approximately one month’s
production during Q1-2019. Performance at the Galena Complex is slowly
improving and should return to expected levels by the end of Q2-2019.
The increase in cash costs was primarily a result of the operational
challenges experienced at the Galena Complex along with lower realized
prices recognized on silver, zinc, and lead during Q1-2019 compared to
Q1-2018.

Relief Canyon Update

On April 3, 2019, the Company announced the closing of the Pershing
acquisition after receiving notification that CFIUS completed its
review. The Company also announced a financing package of $42.5 million
secured from Sandstorm Gold Ltd. to fully fund the development of Relief
Canyon and Board approval for construction commencement at the Project
with the intention of pouring gold before year end. Since that time,
orders have been placed for long-lead items such as the crusher and
conveyor system and negotiations have commenced on the leach pad
construction and mining contracts. Expected start dates are late-May and
mid-June respectively. Further information on the Relief Canyon
development will be made available periodically on the Company’s website
as construction progresses at www.americassilvercorp.com.

Further information concerning the consolidated and individual mine
operations is included in the Company’s first quarter Condensed Interim
Consolidated Financial Statements for the three months ended March 31,
2019 and Management’s Discussion and Analysis for the three months ended
March 31, 2019.

Q1-2019 Earnings Conference Call

Discussions on Q1-2019 earnings will be covered by President & CEO
Darren Blasutti at the Annual and Special Meeting of Americas Silver
scheduled for 3pm (EDT) on Wednesday May 15, 2019 at Vantage Venues, 150
King St. West, Toronto, Ontario. A recording of the presentation will be
available on the Company’s website subsequent to the meeting.

Additional information concerning the annual and special meeting can be
found in the Management Information Circular dated April 18, 2019. An
electronic copy of the Circular is available online under the Company’s
profile at www.sedar.com
or at www.americassilvercorp.com.

About Americas Silver Corporation

Americas Silver is a precious metal mining company focused on growth
from its existing asset base and execution of targeted accretive
acquisitions. It owns and operates the Cosalá Operations in Sinaloa,
Mexico and the Galena Complex in Idaho, USA. The Company expects to
begin producing gold in the fourth quarter of 2019 at its fully funded
for development Relief Canyon Project, in Nevada, USA which is currently
in construction following completion of the Pershing acquisition in
April 2019. For further information, please see SEDAR or EDGAR or
americassilvercorp.com.

Cautionary Statement on Forward-Looking Information:

This news release contains “forward-looking information” within the
meaning of applicable securities laws. Forward-looking information
includes, but is not limited to, Americas Silver’s expectations,
intentions, plans, assumptions and beliefs with respect to, among other
things, Americas Silver’s financing efforts; construction, production,
and development plans at the Relief Canyon Project and performance
expectations for the Relief Canyon Project and impact on Americas
Silver’s financial performance; and the estimated construction timeline
and costs for the Relief Canyon Project; the estimated timeline for
environmental approvals for the second phase of the Relief Canyon
Project; and the impact of the Pershing acquisition on the liquidity of
the Company’s shares. Often, but not always, forward-looking information
can be identified by forward-looking words such as “anticipate”,
“believe”, “expect”, “goal”, “plan”, “intend”, “potential’, “estimate”,
“may”, “assume” and “will” or similar words suggesting future outcomes,
or other expectations, beliefs, plans, objectives, assumptions,
intentions, or statements about future events or performance.
Forward-looking information is based on the opinions and estimates of
Americas Silver as of the date such information is provided and is
subject to known and unknown risks, uncertainties, and other factors
that may cause the actual results, level of activity, performance, or
achievements of Americas Silver to be materially different from those
expressed or implied by such forward-looking information. With respect
to the Sandstorm financing, risks and uncertainties include the ability
of the Company and its subsidiaries to fulfill the conditions to drawing
the available funds under the definitive agreements with Sandstorm, as
applicable, and the potential for, and consequences of, default
thereunder. With respect to the business of Americas Silver, these risks
and uncertainties include interpretations or reinterpretations of
geologic information; unfavorable exploration results; inability to
obtain permits required for future exploration, development or
production; general economic conditions and conditions affecting the
industries in which the Company operates; the uncertainty of regulatory
requirements and approvals; fluctuating mineral and commodity prices;
the ability to obtain necessary future financing on acceptable terms or
at all; the ability to develop, complete construction and operate the
Relief Canyon Project; and risks associated with the mining industry
such as economic factors (including future commodity prices, currency
fluctuations and energy prices), ground conditions and other factors
limiting mine access, failure of plant, equipment, processes and
transportation services to operate as anticipated, environmental risks,
government regulation, actual results of current exploration and
production activities, possible variations in ore grade or recovery
rates, permitting timelines, capital and construction expenditures,
reclamation activities, labor relations, social and political
developments and other risks of the mining industry. Although the
Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, or intended. Readers are
cautioned not to place undue reliance on such information. Additional
information regarding the factors that may cause actual results to
differ materially from this forward‐looking information is available in
Americas Silver’s filings with the Canadian Securities Administrators on
its profile at www.sedar.com
or with the SEC at www.sec.gov/edgar,
including its annual information form for the year ended December 31,
2018 and its management information circular dated December 4, 2018.
Americas Silver does not undertake any obligation to update publicly or
otherwise revise any forward-looking information whether as a result of
new information, future events or other such factors which affect this
information, except as required by law. Americas Silver does not give
any assurance (1) that Americas Silver will achieve its expectations, or
(2) concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas Silver, the
Sandstorm financing package, or other matters attributable to Americas
Silver or any person acting on its behalf are expressly qualified in
their entirety by the cautionary statements above.

¹ Silver equivalent production throughout this press release
was calculated based on silver, zinc, and lead realized prices during
each respective period.

² Cash cost per ounce and all-in sustaining cost per ounce
are non-IFRS performance measures with no standardized definition. For
further information and detailed reconciliations, please refer to the
Company’s 2018 year-end and quarterly MD&A.

Contacts

Darren Blasutti
President and CEO
Americas Silver Corporation
416‐848‐9503