Americas Petrogas Announces First Quarter 2016 Results

CALGARY, ALBERTA--(Marketwired - May 30, 2016) - Americas Petrogas Inc. ("Americas Petrogas" or the "Company") (TSX VENTURE:BOE) announces that it has filed its condensed interim consolidated financial statements and Interim MD&A - Quarterly Highlights relating to its first quarter 2016 results. These filings can be accessed on SEDAR's website at and on the Company's website at

The following Summary of Selected Financial and Operational Highlights have been derived from the condensed interim consolidated financial statements and Interim MD&A - Quarterly Highlights. Readers are strongly encouraged to review the entire condensed interim consolidated financial statements and Interim MD&A - Quarterly Results.

All amounts are in Canadian dollars unless otherwise stated.

Summary of Selected Financial and Operational Highlights


($ in thousands) March 31, 2016 December 31, 2015



Cash and cash equivalents $ 44,353 $ 56,671

Working capital(1) $ 56,126 $ 62,594

($ in thousands, except share and per share

amounts) Three months ended March 31

2016 2015



Net revenue(2) $ - $ 9,012

Net income (loss) attributable to owners of

the Company(3) $ (5,983) $ (1,556)

Earnings (loss) per share- basic and diluted $ (0.03) $ (0.01)

Weighted average number of common shares outstanding

Basic 224,147,242 231,739,106

Diluted 224,147,242 231,739,106

Cash flow from (used by) operating activities $ (240) $ 732

Capital expenditures, net $ (1,727) $ (6,654)

See Notes below.


Key Items and Recent Activities


As at March 31, 2016, the Company had $44.4 million of consolidated cash and cash equivalents and had a positive consolidated working capital position of $56.1 million.

The decrease in working capital from December 31, 2015 ($62.6 million) to March 31, 2016 ($56.1 million) can be attributed primarily to (i) the acquisition of the remaining 30% interest in the Bayovar Property, which resulted in a cash payment, the recognition of a liability to the Peruvian Group and the transfer of a receivable from the Peruvian Group (which was included in other current assets at December 31, 2015) to exploration and evaluation assets; (ii) the impact on the Company's U.S. dollar denominated financial instruments of the weakening of the U.S. dollar relative to the Canadian dollar; and (iii) partially offset by the reclassification of some available-for-sale financial assets from non-current assets to current assets.



-- The "Updated NI 43-101 Mineral Resource Technical Report on the GrowMax

Bayovar Phosphate Project, Piura Region, Peru" was filed on SEDAR on

April 28, 2016. For additional information, including applicable

disclosures, please refer to that technical report on SEDAR.

-- Further infill core drilling on Bayovar 7 and reconnaissance drilling on

Bayovar 5 has been completed and lab analysis and geological evaluations

are ongoing. The Company expects to have a further resource update in

June 2016, which will incorporate the results of this additional

drilling on the Bayovar concessions.

-- On February 16, 2016, the Company announced the engagement of

WorleyParsons Services Pty Limited and Golder Associates Ltd. to

undertake a Preliminary Economic Assessment (PEA) for the Bayovar 5 and

Bayovar 7 concession blocks. In order to incorporate new drilling

results on these two concessions and the expected June 2016 resource

update into the PEA report, the Company now anticipates releasing the

results of the PEA in Q3-2016.

-- Expansion of the pilot evaporation ponds for Carnallite/Kainite has been

substantially completed and pilot testing is underway using the expanded

ponds. Pending results of the pilot testing, the Company will assess its

plans for future commercial production for Carnallite/Kainite.

-- Early in 2016, the Company's Peruvian subsidiary, APPSA, acquired the

remaining 30% interest in the Bayovar Property from the Peruvian Group.

Under the terms of the acquisition agreement, payments to be made to the

Peruvian Group total US$8.0 million, payable over a period of time. An

initial payment of US$0.5 million was paid upon signing the agreement

and a further US$2.0 million is expected to be paid in June 2016.




-- The Company now holds a 50% working interest in Vaca Mahuida block,

after having acquired, for no cost, an additional 25% interest from the

former operator of the block. The Company is now the operator of this

block and its other joint venture partner holds the remaining 50%

interest. The Company is continuing to evaluate the economics relating

to the Vaca Mahuida block and is planning to submit a new development

plan to the Rio Negro provincial government in order to seek an

exploitation concession on the block.



Abby Badwi Executive Chairman of Americas Petrogas stated, "For 2016, the Company will continue with its plans in Peru to expand its exploration and economic assessment activities of its phosphate deposits on the Bayovar blocks while also working towards achieving an initial amount of production of Carnallite/Kainite from the brine resources in the same area. As for Argentina, the Company will continue to pursue its various options to maximize value of its assets in the country. The recent development of increasing the Company's interest, assuming operatorship and trying to obtain an exploitation concession on the Vaca Mahuida block may enhance the opportunity to achieve this objective."


(1) Working capital is calculated as current assets (March 31, 2016 - $74.3

million; December 31, 2015 - $83.2 million) less current liabilities

(March 31, 2016 - $18.2 million; December 31, 2015 - $20.6 million).

Working capital is used to assess liquidity and general financial

strength. Working capital does not have a standardized meaning

prescribed by IFRS. It is unlikely for non-GAAP measures to be

comparable to similar measures presented by other companies. Working

capital should not be considered an alternative to, or more meaningful

than current assets or current liabilities as determined in accordance

with IFRS.

(2) "Net revenue" is an additional GAAP measure because it is presented in

the consolidated statement of income (loss). Net revenue is crude oil

sales less royalties. The Company uses "net revenue" as an indicator of

operating performance.

(3) For the three months ended March 31, 2016, net loss attributable to

owners of the Company included $nil of foreign exchange gain (March 31,

2015 - $3.0 million non-cash, foreign exchange gain) on intercompany



Forward-Looking Information

Certain statements contained in this Press Release constitute "forward-looking information" as such term is used in applicable Canadian and US securities laws. Any information or statements contained herein that express or involve discussions with respect to predictions, expectations, plans, projections, objectives, assumptions or future events should be viewed as forward-looking information. Such information relate to analyses and other information that are based upon forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Such forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different than those results, performance or achievements expressed or implied by such forward-looking information.

In particular, statements (express or implied) contained herein or in the Company's MD&A regarding the following should be considered as forward-looking information: the Company's goals, plans, strategy and objectives; lab analysis and geological evaluations; a further resource update and timing thereof; the completion of a PEA and the timing of releasing the results; the expansion of the pilot evaporation ponds and the related testing; plans for future commercial production; submitting a development plan for the Vaca Mahuida block; obtaining/seeking an exploitation concession on the Vaca Mahuida block; maximizing the value of assets; and expanding of exploration and economic assessment activities.

In addition, information regarding the reserve and resource estimates attributable to the Company's oil and gas properties or mineral resource properties should be considered forward-looking statements. In particular, the presence of phosphates in samples is not necessarily indicative that phosphates are capable of being successfully produced in commercial quantities or at all. There is no assurance reserves will be assigned to such phosphate-bearing formations. There is no assurance that future wells will be drilled on the Bayovar Property or that if drilled, will be successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Additional forward-looking information is contained in the Company's MD&A, and reference should be made to the additional disclosures of the assumptions, risks and uncertainties relating to such forward-looking information in that document.

There is no assurance that such forward-looking information will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking statements contained in this Press Release. This cautionary statement expressly qualifies the forward-looking statements contained herein and in the MD&A.

Forward-looking information is based on management's beliefs, expectations, estimates and opinions on the date statements are made and the Company undertakes no obligation to update forward-looking information and whether the beliefs, expectations, estimates and opinions upon which such forward-looking information is based has changed, except as required by applicable law.


Contact Information:

Americas Petrogas Inc.

Abby Badwi, P. Geo.

Executive Chairman

+1 587 390 7015

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