Americas Silver Corporation Provides Fourth Quarter and Annual 2018 Production and Cost Update

Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas
Silver” or the “Company”) today announced production and operating cost
results for fiscal 2018 on a consolidated basis and individually for its
Cosalá Operations and Galena Complex. All figures are in U.S. dollars
unless otherwise indicated.

Fiscal 2018 Highlights

• Consolidated production for the year of approximately 6.3 million
  silver equivalent¹ ounces and 1.4 million silver ounces,
  representing an increase of 32% and a decrease of 31%, respectively,
  when compared to fiscal 2017.
• Consolidated cash costs² for the year were approximately
  negative ($0.59) per silver ounce, a decrease of approximately 105%
  when compared to fiscal 2017, while consolidated all-in sustaining
  costs² (“AISC”) were approximately $9.82 per silver ounce,
  a decrease of 26% year-over-year.
• Consolidated production for Q4, 2018 of approximately 1.8 million
  silver equivalent ounces and 0.4 million silver ounces, representing
  increases of 28% and 22%, respectively, when compared to Q3, 2018.
• Consolidated cash costs for Q4, 2018 were approximately $1.27 per
  silver ounce, a decrease of approximately 74% when compared to Q3,
  2018, while consolidated AISC were approximately $11.86 per silver
  ounce, a decrease of 26% quarter-over-quarter.
• Cosalá Operations milled tonnage increased by 3% over fiscal 2017 as
  San Rafael achieved its goal of sustaining a milling rate of over
  1,700 tonnes per operating day by the end of the third quarter of the
  year. Production for the year of approximately 4.2 million silver
  equivalent ounces including approximately 450,000 silver ounces,
  representing an increase of 75% and decrease of 51%, respectively,
  when compared to fiscal 2017.
• Cosalá Operations cash costs were approximately negative ($37.95) per
  silver ounce and AISC were approximately negative ($19.66) per silver
  ounce, representing significant decreases year-over-year from cash
  costs of negative ($0.13) per silver ounce and AISC of $0.57 per
  silver ounce.
• During 2018, Galena Complex production was negatively impacted by two
  separate issues at its No.3 Shaft that inhibited normal hoisting for
  approximately 27 days in total. As a result, production for the year
  was approximately 2.1 million silver equivalent ounces and 1.0 million
  silver ounces, representing decreases of 10% and 15%, respectively,
  when compared to fiscal 2017.
• Galena Complex cash costs were approximately $16.68 per silver ounce
  and AISC were approximately $23.45 per silver ounce, representing
  increases of 13% and 16%, respectively, year-over-year.
• The Company had cash and cash equivalents of $3.5 million at December
  31, 2018.

“The fourth quarter of 2018 was the best production quarter and
representative of expected production going forward, with San Rafael
reaching targeted throughput levels, and improved operating performance
at Galena in 2019,” said Darren Blasutti, President & CEO of Americas
Silver. “With the votes now successfully behind us for both Americas
Silver and Pershing Gold, we are only waiting on the CFIUS review prior
to closing the transaction. We expect to announce the transaction
closing, concurrent with a mine construction decision, and a financing
announcement that we expect to fully fund the development of the Relief
Canyon Project.”

Pershing Acquisition Update and 2019 Guidance

On January 9, 2019, Americas Silver Corporation and Pershing Gold
Corporation (“Pershing Gold”) announced their respective shareholders
provided the requisite approvals for the previously announced business
combination transaction (the “Transaction”) between the two companies.
Completion of the Transaction remains subject to satisfaction or waiver
of certain customary conditions, including the completion of review and
approval by the Committee on Foreign Investment in the United States
(“CFIUS”) (discussed in Americas Silver’s January 2, 2019 press
release). All deadlines for declarations and transactions under review
by CFIUS are currently tolled due to the lapse in appropriations
attributable to the partial U.S. government shutdown.

In anticipation of the closing of the Transaction, discussions are
proceeding well with parties interested in providing financing for the
development of the Relief Canyon Mine. As a result of the delay in
closing, the Company is assessing its 2019 guidance and intends to
update the market upon completion of the Transaction.

Consolidated 2018 Production Details

Consolidated silver equivalent production for fiscal 2018 was
approximately 6,286,531 ounces, an increase of 32% over fiscal 2017.
Consolidated silver production for fiscal 2018 was 1,417,537 silver
ounces, a decrease of 31% over fiscal 2017. The significant increase in
consolidated silver equivalent production and decrease in silver
production relative to 2017 was primarily the result of the San Rafael
mine having its first full year of operation after declaring commercial
production in December 2017. San Rafael contributed over 190% greater
zinc production and over 125% greater lead production, though with
approximately 50% lower silver production due to mine sequencing.
Similarly, consolidated cash costs decreased over 100% to negative
($0.59) per silver ounce compared to fiscal 2017, and AISC decreased 26%
to $9.82 per silver ounce compared to fiscal 2017.

¹ Cost of sales per silver equivalent ounce, cash costs per
silver ounce, and all-in sustaining costs per silver ounce for 2017
excludes pre-production of 50,490 silver ounces and 435,323 silver
equivalent ounces mined from San Rafael during its commissioning period,
and excludes pre-production of 245,391 silver ounces and 360,530 silver
equivalent ounces mined from El Cajón during its commissioning period.
Pre-production revenue and cost of sales from San Rafael and El Cajón
were capitalized as an offset to development costs.

Cosalá Operations Production Details

The Cosalá Operations produced 448,150 ounces of silver and 4,165,326
ounces of silver equivalent during the year at cash costs of negative
($37.95) per silver ounce and AISC of negative ($19.66) per silver
ounce. Silver equivalent production increased 75% year-over-year and
silver production decreased 51% over fiscal 2017. Cash costs and AISC
were down significantly compared to the fiscal 2017 from negative
($0.13) per silver ounce and $0.57 per silver ounce, respectively. The
improvements in silver equivalent production and cash costs were the
result of the significant increase in zinc (194%) and lead production
(129%) from the San Rafael mine compared to fiscal 2017 when the Company
was transitioning from its previous mine, the silver-copper-zinc-lead
Nuestra Señora mine.

Galena Complex Production Details

As previously announced, production at the Galena Complex was negatively
impacted by two issues affecting the No.3 Shaft: a 10-day suspension of
hoisting in late April to allow the repair of steel sets in the shaft,
and a 17-day shutdown of the hoist in June to address a mechanical
failure in the brake mechanism. The Complex was temporarily considered
to be on care and maintenance for the 17-day shutdown as repairs were
performed with certain costs excluded from the cash costs and AISC
calculations. Repairs were completed by the end of June 2018.

As a result, the Galena Complex produced 969,387 ounces of silver and
2,121,205 ounces of silver equivalent during the year at cash costs of
$16.68 per silver ounce and AISC of $23.45 per silver ounce,
respectively. Silver and silver equivalent production decreased 15% and
10%, respectively, compared to fiscal 2017. Cash costs increased by 13%
compared to fiscal 2017, and AISC were up 16% year-over-year.

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. Americas Silver holds an
option on the San Felipe development project in Sonora, Mexico. For
further information please see SEDAR 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 and Pershing Gold’s
expectations, intentions, plans, assumptions and beliefs with respect
to, among other things, Americas Silver’s financing efforts; the
consummation of the Transaction; construction, production, and
development plans at Relief Canyon Mine; the timing of the closing of
the Transaction; the completion of CFIUS review and its recommendations;
and the estimated construction timeline for Relief Canyon Mine. Often,
but not always, forward-looking information can be identified by
forward-looking words such as “anticipate”, “believe”, “expect”, “goal”,
“plan”, “intend”, “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 and Pershing Gold 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 or
Pershing Gold to be materially different from those expressed or implied
by such forward-looking information. With respect to the Transaction,
these risks and uncertainties include the risk that Americas Silver or
Pershing Gold may be unable to obtain any regulatory approvals required
for the Transaction, including CFIUS approval, or that regulatory
approvals may delay the Transaction or cause the parties to abandon the
Transaction; the risk that other conditions to closing may not be
satisfied; the length of time needed to consummate the proposed
Transaction, which may be longer than anticipated for various reasons;
the risk that the businesses will not be integrated successfully; the
diversion of management time on Transaction‐related issues; the risk
that costs associated with the integration are higher than anticipated;
and litigation risks related to the Transaction. With respect to the
businesses of Americas Silver and Pershing Gold, 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 and Pershing Gold operate; 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 and operate the Relief Canyon
property; 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 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 Pershing Gold’s filings with the SEC,
including the Annual Report on Form 10‐K for the year ended December 31,
2017 and the Proxy Statement of Pershing Gold dated November 29, 2018,
and in Americas Silver’s filings with the Canadian Securities
Administrators on SEDAR and with the SEC, including the management
information circular of Americas Silver dated December 4, 2018. Neither
Americas Silver nor Pershing Gold 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. Neither Americas
Silver nor Pershing Gold gives any assurance (1) that Americas Silver
and Pershing Gold will achieve its expectations, or (2) concerning the
result or timing thereof. All subsequent written and oral
forward‐looking information concerning Pershing Gold, Americas Silver,
the proposed Transaction, the combined company or other matters
attributable to Pershing Gold or Americas Silver or any person acting on
their behalf are expressly qualified in their entirety by the cautionary
statements above.

No Offer or Solicitation

This press release is for informational purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer or sale of securities shall be made except
pursuant to registration under the United States Securities Act of 1933,
as amended (the “U.S. Securities Act”), and any applicable state
securities laws or in compliance with an exemption therefrom.

¹ Silver equivalent production throughout this press release
was calculated based on silver, zinc, lead and copper 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 2017 year-end and quarterly MD&A. The performance measures for
the quarter ended December 31, 2018 are preliminary throughout this
press release subject to refinement from the Company’s year-end
financial results to be released on or before March 7, 2019.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190124005758/en/