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Alamos Gold Extends High-Grade Mineralization at Island Gold Mine

05/24/2018

Step-out drilling continues to intersect high-grade gold mineralization along-strike and down-plunge from existing Mineral Reserves and Resources

TORONTO, May 24, 2018 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) (“Alamos” or the “Company”) today reported new results from the ongoing surface and underground exploration drilling programs at the Island Gold Mine. Early results from the 2018 exploration program have been successful in extending high-grade gold mineralization along-strike and down-plunge from existing Mineral Reserves and Resources across three main areas of focus: the Main Extension; the Eastern Extension; and the Western Extension. All reported lengths are true width of the mineralized zones.

Figure 1
Island Gold Mine Main Zone Longitudinal – 2018 Drilling Target Areas


Figure 2
Island Gold Mine Main Zone Longitudinal – Main Extension


Figure 3
Island Gold Mine Main Zone Longitudinal - Western Extension


Figure 4
Island Gold Mine Main Zone Longitudinal – Eastern Extension


Figure 5
Island Gold Mine Main Zone Longitudinal – 840 Level Delineation Drilling


• Main Extension: step-out drilling continues to intersect high-grade gold mineralization which extends up to 900 metres (“m”) east of current Mineral Reserves, and remains open down-plunge. New highlights include:

  • 32.06 g/t Au (14.18 g/t cut) over 4.10 m;
  • 17.10 g/t Au (12.72 g/t cut) over 6.33 m; and
  • 14.89 g/t Au (10.18 g/t cut) over 3.40 m

• Eastern Extension: high-grade mineralization extended east outside of Inferred Mineral Resources and remains open down-plunge. New highlights include:

  • 71.27 g/t Au (42.14 g/t cut) over 4.92 m;
  • 44.28 g/t Au (30.55 g/t cut) over 5.97 m;
  • 47.68 g/t Au (19.26 g/t cut) over 3.69 m; and
  • 35.15 g/t Au (13.42 g/t cut) over 4.29 m.

• Western Extension: high-grade mineralization intersected outside of Inferred Mineral Resources, extending mineralization down-plunge. New highlights include:

  • 31.54 g/t Au (31.54 g/t cut) over 5.07 m.

• Infill drilling of Inferred Mineral Resources returns high-grade intersections, confirming continuity of mineralization which is expected to support Mineral Resource conversion. New highlights include:

  • 127.90 g/t Au (69.18 g/t cut) over 6.38 m;
  • 58.80 g/t Au (44.22 g/t cut) over 8.78 m;
  • 134.37 g/t Au (15.48 g/t cut) over 3.04 m;
  • 95.48 g/t Au (25.02 g/t cut) over 2.86 m;
  • 93.55 g/t Au (18.59 g/t cut) over 2.66 m;
  • 53.37 g/t Au (46.54 g/t cut) over 3.94 m;
  • 30.37 g/t Au (30.37 g/t cut) over 6.36 m; and
  • 41.30 g/t Au (22.85 g/t cut) over 4.64 m.

• Exploration budget increased 20% to $18 million for 2018. Two additional  surface rigs have been mobilized, bringing the total number of surface rigs to six  

Note: Drillhole composite intervals reported as “cut” include higher grade samples which have been cut to 225 g/t Au, 80 g/t Au, or 70 g/t Au depending on the zone.  Refer to drill hole composite interval summary tables in this release for more information.

“Island Gold continues to exceed expectations. 2017 exploration increased Mineral Reserves in both size and quality. Results this year are demonstrating the potential to enlarge the Mineral Resource across multiple extensions of the ore body. We have increased our exploration budget to fund eight drill rigs to accelerate our drilling progress through the remainder of the year,” said John A. McCluskey, President and Chief Executive Officer.

2018 Island Gold Mine Exploration Budget Increased

Reflecting the exploration success to start the year, the 2018 exploration budget for Island Gold has been increased to $18 million, up from the initial budget of $15 million. This includes the addition of two surface drill rigs, bringing the total number of surface drills to six.

The 2018 exploration drilling program continues to build on the positive results from the 2017 program which resulted in an 18% increase in mineral reserves to 887,000 ounces (2.7 million tonnes grading 10.20 g/t Au), net of mining depletion, and an 11% increase in grade to 10.20 g/t Au (as of December 31, 2017). This is a continuation of a strong trend since 2014 which has seen Mineral Reserves increase by 383% in terms of ounces, and 60% in terms of grade. A major part of this growth was a result of the successful ongoing directional exploration drilling program started in 2015 which focused on upgrading a portion of the large Inferred Mineral Resource base.

2018 Drilling Program – Island Gold Mine

The 2018 exploration drilling program is targeting three main areas along the two kilometre long Island Deposit Main Zone, as shown in Figure 1. The focus is on expanding the down-plunge and lateral extensions of the Island Gold Deposit with the objective of adding new near-mine Mineral Resources.

Drill holes in the Main and Western Extension areas are testing high-grade, east-plunging shoots below existing Mineral Reserves and Resources. Drill holes in the Eastern Extension are exploring for additional plunging shoots along strike beyond existing Mineral Reserves and Resources.

With the expanded exploration budget, 45,000 m of surface directional exploration drilling is now planned for 2018, up from 33,000 m. The 2018 program also includes 30,000 m for underground exploration drilling, 35,000 m for underground delineation drilling, and 15,000 m for regional exploration drilling.

The underground delineation drilling program is focused on converting Inferred Mineral Resources into Indicated Mineral Resources. This drilling is being conducted primarily from the 620 and 840 levels.

Drilling completed to date in 2018 includes 115 drill holes for a total of 33,800 m. This includes 13,850 m of surface exploration drilling, 12,550 m of underground exploration drilling and 7,400 m of underground delineation drilling.

Main Extension

Exploration drilling in the Main Extension area is targeting the down-plunge continuation of gold mineralization below existing Mineral Reserves and Resources (Figure 2).  Previously released drilling completed in 2017 in this area intersected:

  • 32.41 g/t Au (19.85 g/t cut) over 8.40 m (MH8-4);
  • 23.23 g/t Au (11.67 g/t cut) over 9.42 m (MH2A-12);
  • 11.36 g/t Au (11.36 g/t cut) over 3.57 m (MH10-3); and
  • 46.81 g/t Au (20.60 g/t cut) over 1.97 m (MH10-2).

The 2018 surface drilling program continues to expand gold mineralization, currently intersected up to 900 m down-plunge from existing Mineral Reserves with a drill hole spacing ranging from 75 to 100 m (Figure 2). 

Highlights from the new results include (Table 1):

  • 32.06 g/t Au (14.18 g/t cut) over 4.10 m (MH9-9);
  • 17.10 g/t Au (12.72 g/t cut) over 6.33 m (MH9-7); and
  • 14.89 g/t Au (10.18 g/t cut) over 3.40 m (MH11-5).

This east-plunging high-grade ore shoot remains open down-plunge. The ongoing exploration program is focused on further extending high-grade mineralization with the objective of defining additional Mineral Resources in this area. A program of directional drilling (pilot and branch holes) is being used to efficiently explore targets below 1,000 m from surface.

Western Extension

Surface drilling recently commenced in the Western Extension area, having last been drilled in early 2017 (Figure 3). Drilling in this area is targeting down-plunge of an Inferred Mineral Resource block that includes previously released high-grade drill hole intersections as follows:

  • 117.57 g/t Au (49.61 g/t Au cut) over 8.97 m (510-480-12);
  • 42.77 g/t Au (42.77 cut) over 4.04 m true width (740-471-35);
  • 38.62 g/t Au (38.62 cut) over 2.42 m true width (740-477-40); and
  • 16.23 g/t Au (16.23 cut) over 4.41 m true width (425-487-08).

The first down-plunge step-out drill hole of 2018 (MH5-5A) intersected 31.54 g/t Au (cut) over 5.07 m, further expanding this western high-grade shoot.

Drilling will continue to test the Western Extension area using 75 to 100 m spaced step-out drilling with the objective of expanding the high-grade mineralization where it remains open both laterally and down-plunge. A program of directional drilling (pilot and branch holes) is being used to efficiently explore these targets below 1,000 m from surface.

Eastern Extension

An objective of the 2018 underground exploration drilling program is to expand the high-grade zone defined from exploration drifts established at the eastern extent of the Island Gold Mine underground infrastructure (Figure 4).

Drilling from the 620 exploration drift has continued to expand the high-grade mineralization at depth and to the east and it remains open in both directions.

Highlights from the new results include (Table 2):

  • 71.27 g/t Au (42.14 g/t cut) over 4.92 m (620-592-35);
  • 44.28 g/t Au (30.55 g/t cut) over 5.97 m (620-592-36);
  • 47.68 g/t Au (19.26 g/t cut) over 3.69 m (620-592-33);
  • 35.15 g/t Au (13.42 g/t cut) over 4.29 m (620-592-19);
  • 48.56 g/t Au (32.08 g/t cut) over 2.94 m (620-592-21);
  • 30.99 g/t Au (21.55 g/t cut) over 3.97 m (620-592-37); and
  • 22.22 g/t Au (14.10 g/t cut) over 5.40 m (620-592-31).

A potential down-plunge extension of this shoot to the east and at depth is supported by previously reported surface drills holes which intersected (Figure 4):

  • 17.85 g/t Au (14.25 g/t cut) over 2.18m (GD-620-01);
  • 57.43 g/t Au (25.37 g/t cut) over 4.37 m (GD-630-01);
  • 18.03 g/t Au (14.16 g/t cut) over 11.53m (GD-640-05);
  • 15.20 g/t Au (8.16 g/t cut) over 2.06 m (GD-640-04); and
  • 43.26 g/t Au (11.72 g/t cut) over 2.13m (GD-640-05-5).

Drilling will continue to test east of this area in 2018 from underground drill bays established on the 340 and 620 level exploration drifts.

Underground Delineation Drilling

Underground delineation drilling is also being carried out from the 620 and 840 levels with the focus on converting Inferred Mineral Resources to Indicated Mineral Resources.

New highlight drill intercepts include (Table 3):

Drill holes from 840 level (Figure 5):

  • 127.90 g/t Au (69.18 g/t cut) over 6.38 m (840-533-18);
  • 58.80 g/t Au (44.22 g/t cut) over 8.78 m (840-524-26);
  • 53.37 g/t Au (46.54 g/t cut) over 3.94 m (840-533-21);
  • 30.37 g/t Au (30.37 g/t cut) over 6.36 m (840-533-19);
  • 39.87 g/t Au (39.87 g/t cut) over 4.65 m (840-529-25);
  • 50.22 g/t Au (44.15 g/t cut) over 3.74 m (840-524-28);
  • 33.55 g/t Au (33.55 g/t cut) over 3.88 m (840-533-15); and
  • 33.26 g/t Au (33.26 g/t cut) over 3.78 m (840-533-23).

Drill holes from 620 level (Figure 4):

  • 134.37 g/t Au (15.48 g/t cut) over 3.04 m (620-592-05);
  • 95.48 g/t Au (25.02 g/t cut) over 2.86 m (620-592-16);
  • 93.55 g/t Au (18.59 g/t cut) over 2.66 m (620-592-39);
  • 41.30 g/t Au (22.85 g/t cut) over 4.64 m (620-592-03);
  • 54.93 g/t Au (19.69 g/t cut) over 3.13 m (620-592-06);
  • 48.19 g/t Au (20.64 g/t cut) over 2.98 m (620-592-07);
  • 59.85 g/t Au (15.08 g/t cut) over 2.06 m (620-586-09); and
  • 24.75 g/t Au (21.99 g/t cut) over 3.26 m (620-592-17).

The results from the infill definition drilling within existing Inferred Mineral Resource blocks confirm the continuity of the high-grade gold mineralization and are expected to support the conversion of the Mineral Resources in these areas.

Hanging Wall Zones

The Island Gold deposit consists of a number of subparallel mineralized zones, with the majority of Mineral Reserves and Resources being defined in the C Zone and E1E Zones which constitutes the main production horizons at the Island Gold mine.  Highlights of new intersections in parallel zones and zones in which the lateral continuity is not yet established (“X” zone) include:

  • 153.69 g/t Au (46.15 g/t cut) over 2.82 m (D1 Zone, 840-533-26);
  • 68.06 g/t Au (15.44 g/t cut) over 2.51 m (X Zone, 620-592-15);
  • 24.98 g/t Au (6.11 g/t cut) over 5.23 m (X Zone, 620-592-15);
  • 95.46 g/t Au (95.46 g/t cut) over 1.16 m (X Zone, MH11-6); and
  • 31.71 g/t Au (27.61 g/t cut) over 3.26 m (X Zone, LC-415-04-2).

Additional drilling will be required to further evaluate these high-grade intersections and their potential in both the footwall and hanging wall of the main C and E1E Zones.

Surface Regional Exploration Drilling

A 15,000 m drill program is planned later in 2018 which will drill test targets along the Goudreau Deformation Zone to the west of the main Island Gold Mine deposit. Drilling is also planned to test a previous high grade intercept of 9.71 g/t Au (cut) over 5.95 m below the Kremzar gold deposit.

Qualified Persons

Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101 (“NI 43-101”).

Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Chief Geologist at the Island Gold Mine and a Qualified Person within the meaning of NI 43-101.

Quality Control

Assays for the delineation and exploration drilling were done at LabExpert in Rouyn-Noranda, PQ. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance. Cross check assays are done on a regular basis in a second accredited laboratory.

About Alamos

Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the Company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Scott K. Parsons  
Vice President, Investor Relations
(416) 368-9932 x 5439

The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Cautionary Note

This News Release includes certain statements that constitute forward-looking information within the meaning of applicable securities laws "forward-looking statements". All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are “forward-looking statements”. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expects", is expected", "anticipates", "plans" or “is planned”, “trends”, "estimates", "intends" or “potential” or variations of such words and phrases and similar expressions or statements that certain actions, events or results  "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements in this news release include the statements with respect to planned exploration programs, costs and expenditures, changes in Mineral Resources and conversion of Mineral Resources to Proven and Probable Mineral Reserves, and other information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "Inferred" or "Indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "Indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of Mineral Resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.

The risks and uncertainties that may  cause actual results to differ materially from Alamos' expectations include, among others, risks related to obtaining the permits required to carry out planned exploration or development work, the actual results of current exploration activities, conclusions of economic and geological evaluations and changes in project parameters as plans continue to be refined, changes to the price of gold, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form and other disclosures by Alamos and its predecessors available on SEDAR and EDGAR. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended.  Readers are cautioned not to put undue reliance on forward-looking statements which are not guarantees of future events, and speak only as of the date made. All of the forward-looking statements made in this press release are qualified by these cautionary statements.

Cautionary Note to U.S. Investors – Mineral Reserve and Resource Estimates

All Mineral Resource and Reserve estimates included in this news release or documents referenced in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. These definitions differ materially from the definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act. Under SEC Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. Securities and Exchange Commission (the "SEC"). Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Mineral Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of "contained ounces" in a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

Figure 1: Island Gold Mine Main Zone Longitudinal – 2018 Drilling Target Areas

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/af280ca2-6c69-42aa-b903-9803a2717130

Figure 2: Island Gold Mine Main Zone Longitudinal – Main Extension

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/f4bd4b4b-2708-4d4e-9e2d-941562108226

Figure 3: Island Gold Mine Main Zone Longitudinal – Western Extension

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/9b168c98-9142-4ec7-8741-9d3bd9b127ab

Figure 4: Island Gold Mine Main Zone Longitudinal – Eastern Extension

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/33a4ba29-2be2-4cde-a829-15064e1ec68e

Figure 5: Island Gold Mine Main Zone Longitudinal – 840 Level Delineation Drilling

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/b8e74771-620d-4190-a887-697bb6914271


Table 1: Island Gold – Previously Unreleased Select Composite Intervals from Surface Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values per zone: Zone C @ 225 g/t Au; Zone E1E @ 70 g/t Au.  Target area:  Main Extension (Main Ext), Western Extension (Western Ext), Western Strike Extension (WSE)

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
MH5-5ACWestern Ext1,363.301,369.901,1846.605.0731.5431.54
MH9-6E1EMain Ext1,502.301,505.601,4323.302.346.116.11
MH9-7E1EMain Ext1,454.651,462.201,3977.556.3317.1012.72
MH9-9E1EMain Ext1,529.001,535.401,4766.404.1032.0614.18
MH10-4E1EMain Ext1,478.301,483.201,3624.904.404.434.43
MH10-6E1EMain Ext1,536.801,541.501,4334.703.456.596.59
MH11-5E1EMain Ext1,498.701,503.401,3714.703.4014.8910.18
LC-415-04-01XWSE906.50910.258753.752.653.703.70
LC-415-04-01XWSE984.50989.009504.502.8013.0613.06
LC-415-04-04XWSE941.70947.409075.703.915.835.83
LC-415-04-2XWSE964.60969.109294.503.2631.7127.61
LC-415-04-3XWSE945.50953.009177.504.6011.027.70
LC-415-04-3XWSE1,448.901,454.801,3985.903.846.924.95
LC-415-04-3XWSE1,471.701,474.101,4162.401.566.856.85
MH9-5AXMain Ext1,556.641,558.301,4711.660.9434.3123.27
MH9-9XMain Ext1,518.501,524.101,4655.603.587.727.72
MH10-4XMain Ext1,315.671,317.401,2181.731.5412.7512.75
MH10-4XMain Ext1,498.001,505.701,3807.706.925.264.15
MH10-5XMain Ext1,716.001,719.651,6243.652.4110.4510.45
MH10-6XMain Ext1,553.801,558.201,4494.403.2312.0310.96
MH10-6XMain Ext1,584.701,587.001,4762.301.6911.9211.92
MH11-4AXMain Ext1,220.601,221.101,0680.500.353.093.09
MH11-5XMain Ext1,600.151,601.751,4621.601.1627.9827.98
MH11-6XMain Ext1,398.201,399.801,2811.601.1695.4695.46

Table 2: Island Gold – Previously Unreleased Select Composite Intervals from Underground Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values per zone: E1E @ 70 g/t Au; Zone X @ 70 g/t. Target areas:  Eastern Extension (Eastern Ext)

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
620-568-03E1EEastern Ext103.40106.005362.602.3215.6614.53
620-568-05E1EEastern Ext101.20104.005682.802.887.977.97
620-568-12E1EEastern Ext158.05161.206273.152.3610.6810.68
620-568-21E1EEastern Ext196.50204.856868.354.975.695.69
620-568-23E1EEastern Ext113.40116.705063.302.845.605.60
620-592-10E1EEastern Ext100.50103.305982.802.338.488.48
620-592-11E1EEastern Ext206.50213.007066.504.657.387.38
620-592-13E1EEastern Ext81.8086.905605.105.064.804.80
620-592-15E1EEastern Ext130.50134.006263.502.2039.1625.30
620-592-18E1EEastern Ext83.4088.505735.105.006.096.09
620-592-19E1EEastern Ext213.00219.907166.904.2935.1513.42
620-592-20E1EEastern Ext88.4092.905274.504.1710.078.59
620-592-21E1EEastern Ext110.20115.006114.802.9448.5632.08
620-592-25E1EEastern Ext164.10167.806563.702.313.653.65
620-592-26E1EEastern Ext205.70211.707016.002.934.894.89
620-592-27E1EEastern Ext232.10240.107318.004.466.276.27
620-592-29E1EEastern Ext84.7090.805306.105.157.327.32
620-592-31E1EEastern Ext95.20101.905946.705.4022.2214.10
620-592-32E1EEastern Ext144.00149.556385.552.593.003.00
620-592-33E1EEastern Ext83.3087.005573.703.6947.6819.26
620-592-35E1EEastern Ext84.0089.105775.104.9271.2742.14
620-592-36E1EEastern Ext105.40111.506086.105.9744.2830.55
620-592-37E1EEastern Ext252.00258.807586.803.9730.9921.55
620-592-10XEastern Ext29.4033.005993.602.947.747.74
620-592-11XEastern Ext45.0051.306256.305.315.025.02
620-592-15XEastern Ext40.7046.006085.305.2324.986.11
620-592-15XEastern Ext145.20149.206284.002.5168.0615.44

Table 2 Continued: Island Gold – Previously Unreleased Select Composite Intervals from Underground Exploration Drilling

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
620-592-19XEastern Ext48.4053.406285.002.8910.5610.56
620-592-21XEastern Ext52.5067.5060615.009.013.723.72
620-592-26XEastern Ext51.7559.506287.753.546.766.76
620-592-27XEastern Ext50.8055.006304.202.233.833.83
620-592-30XEastern Ext63.2065.505752.301.9813.4713.47
620-592-31XEastern Ext60.8064.905964.103.6721.0721.07
620-592-32XEastern Ext42.0051.006129.003.896.356.35
620-592-33XEastern Ext63.0069.005666.005.984.924.92
620-592-34XEastern Ext42.0051.306169.309.176.606.60
620-592-36XEastern Ext41.8059.1060417.3014.184.384.38
620-592-37XEastern Ext45.0049.806304.803.915.715.71

Table 3: Island Gold – Previously Unreleased Select Composite Intervals from Underground Delineation Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values per zone: Zone C @ 225 g/t Au; Zone E1E @ 70 g/t Au; Zone B @ 80 g/t Au; Zone D1 @ 70 g/t Au; Zone X @ 70 g/t Au. Target area:  Main Extension (Main Ext), Eastern Extension (Eastern Ext)

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
620-543-55E1EEastern Ext125.00127.505762.502.474.394.39
620-586-01E1EEastern Ext146.90151.004504.102.107.507.50
620-586-02E1EEastern Ext124.20127.404763.202.1714.2814.28
620-586-09E1EEastern Ext134.85138.604633.752.0659.8515.08
620-586-11E1EEastern Ext105.10108.205003.102.3221.6911.80
620-586-16E1EEastern Ext139.53143.904594.372.1313.1213.12
620-586-17E1EEastern Ext116.50120.104853.602.333.663.66
620-586-18E1EEastern Ext108.80112.004983.202.303.813.81
620-586-19E1EEastern Ext99.00103.005154.003.113.653.65
620-586-29E1EEastern Ext116.80120.806154.002.723.503.50
620-586-31E1EEastern Ext229.60233.607334.002.283.133.13
620-586-34E1EEastern Ext190.75197.006816.252.6116.4611.48
620-592-01E1EEastern Ext124.90130.854725.953.7516.7013.41
620-592-02E1EEastern Ext113.40117.004853.602.6817.2317.23
620-592-03E1EEastern Ext90.6095.705195.104.6441.3022.85
620-592-04E1EEastern Ext132.70136.504633.802.2423.2523.25
620-592-05E1EEastern Ext103.40107.504984.103.04134.3715.48
620-592-06E1EEastern Ext118.20122.604804.403.1354.9319.69
620-592-07E1EEastern Ext139.60144.404564.802.9848.1920.64
620-592-08E1EEastern Ext106.50110.204983.702.634.404.40
620-592-09BE1EEastern Ext100.20103.305073.102.804.044.04
620-592-14E1EEastern Ext166.50172.106635.603.228.138.13
620-592-16E1EEastern Ext144.10149.306435.202.8695.4825.02
620-592-17E1EEastern Ext181.20186.106754.903.2624.7521.99
620-592-22E1EEastern Ext148.10153.006404.902.705.465.46

Table 3 Continued: Island Gold – Previously Unreleased Select Composite Intervals from Underground Delineation Drilling

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
620-592-28E1EEastern Ext126.00131.104755.103.2710.4310.43
620-592-39E1EEastern Ext216.90221.307174.402.6693.5518.59
840-524-26CMain Ext183.67195.1097511.438.7858.8044.22
840-524-27CMain Ext162.90167.009164.103.0617.7117.71
840-524-28CMain Ext144.90149.408894.503.7450.2244.15
840-524-29CMain Ext221.50232.901,02611.405.0312.6412.64
840-524-34CMain Ext304.50312.901,1068.402.116.176.17
840-524-35CMain Ext260.00270.001,06810.002.879.479.47
840-524-37CMain Ext220.00230.301,02310.306.0011.608.78
840-524-43CMain Ext231.00239.001,0348.004.596.066.06
840-524-44CMain Ext248.60261.001,05812.403.563.473.47
840-529-25CMain Ext205.00210.309755.304.6539.8739.87
840-529-33CMain Ext127.00129.808382.802.675.245.24
840-529-35CMain Ext129.00133.208464.204.1419.3519.35
840-529-37CMain Ext146.30150.608734.303.4413.6313.63
840-529-42CMain Ext248.85268.001,05619.157.604.714.71
840-529-43CMain Ext225.60232.001,0186.404.0428.7624.75
840-529-47CMain Ext245.00264.001,05119.0010.576.926.92
840-529-50CMain Ext249.10262.501,04713.405.715.025.02
840-529-51CMain Ext311.00319.001,1078.002.064.244.24
840-529-54CMain Ext275.00285.001,06410.004.865.215.21
840-533-12CMain Ext158.60162.008573.403.1715.3915.39
840-533-15CMain Ext223.00228.009865.003.8833.5533.55
840-533-18CMain Ext205.00212.509577.506.38127.9069.18
840-533-19CMain Ext225.70234.009958.306.3630.3730.37
840-533-21CMain Ext204.00208.609524.603.9453.3746.54
840-533-22CMain Ext218.80224.259775.454.175.905.90
840-533-23CMain Ext218.10223.009724.903.7833.2633.26
620-592-14XEastern Ext184.00187.006683.002.3010.9110.91

Table 3 Continued: Island Gold – Previously Unreleased Select Composite Intervals from Underground Delineation Drilling

Hole IDZoneTarget AreaFrom (m)To (m)Vertical DepthCore Length (m)True Width (m)Au Uncut (g/t)Au Cut (g/t)
620-592-16XEastern Ext42.0046.506134.504.3510.5310.53
620-592-23XEastern Ext45.7050.856205.154.724.214.21
620-592-39XEastern Ext49.0054.006285.004.3318.2718.27
840-524-27D1Main Ext62.0066.408784.403.254.594.59
840-524-28D1Main Ext68.5071.408712.902.409.779.77
840-524-44D1Main Ext87.7090.609262.901.678.958.95
840-529-27BMain Ext166.70171.107604.403.133.113.11
840-529-33XMain Ext122.70125.608392.902.8322.4222.42
840-529-40D1Main Ext97.0099.508772.502.383.473.47
840-529-42BMain Ext275.00283.101,0728.103.263.033.03
840-529-42DMain Ext69.5072.009092.501.0111.2511.25
840-529-43D1Main Ext142.60149.609597.002.7810.4810.48
840-529-44XMain Ext281.40287.601,0756.202.0329.5220.76
840-533-13DMain Ext54.0056.408742.402.0024.8824.88
840-533-26D1Main Ext124.90129.108904.202.82153.6946.15
840-533-29D1Main Ext127.00129.208882.201.5736.2036.20

 

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Reconciliation of non-GAAP and additional GAAP measures

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Alamos Gold Inc. ("Alamos" or the “Company”), has taken all reasonable care in producing and publishing information contained in this website, and will endeavour to do so regularly. Material on this site may contain technical or other inaccuracies, omissions, or typographic errors, for which Alamos assumes no responsibility. Alamos does not warrant or make any representations regarding the use, validity, accuracy, completeness, or reliability of any claims, statements, or information on this site. Under no circumstances, including but not limited to, negligence, shall Alamos be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer or other systems, or loss of profits, whether or not advised of the possibility of damage, arising from your use, or inability to use, the material on this site. The information is not a substitute for independent professional advice before making any investment decisions. Furthermore, you may not modify or reproduce in any form, electronic or otherwise, any information on this site, except for personal use, unless you have obtained our express written permission. The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of information on this website.

Cautionary Notes – Forward Looking Statements

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements in this website are “forward-looking statements”, including within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact included in this website, including without limitation statements regarding forecast gold production, gold grades, recoveries, waste-to-ore ratios, total cash costs, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management that involve various risks and uncertainties. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking statements.” Alamos cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Alamos' actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to, gold and silver price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled “Risk Factors” in both Alamos Gold Inc.’s Annual Information Form for the year ended December 31, 2014 and the Annual Information Form for the year ended December 31, 2014 of AuRico Gold Inc., (each a predecessor to Alamos Gold Inc.), along with each of these entities’ subsequent public filings available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this website. Although Alamos has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information.

Note to U.S. Investors

Alamos prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this website are defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The United States Securities and Exchange Commission (the “SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Alamos may use certain terms, such as “measured mineral resources”, “indicated mineral resources”, “inferred mineral resources” and “probable mineral reserves” that the SEC does not recognize (these terms may be used in this website and are included in the public filings of Alamos, which have been filed with the SEC and the securities commissions or similar authorities in Canada).

Cautionary non-GAAP Measures and Additional GAAP Measures

Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non-GAAP and additional GAAP measures as indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
Additional GAAP measures that are presented on the face of the Company’s consolidated statements of comprehensive income include “Mine operating costs”, “Earnings from mine operations” and “Earnings from operations”. These measures are intended to provide an indication of the Company’s mine and operating performance. “Cash flow from operating activities before changes in non-cash working capital” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to “Cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows. “Free cash flow” is a non-GAAP performance measure that is calculated as cash flows from operations net of cash flows invested in mineral property, plant and equipment and exploration and evaluation assets as presented on the Company’s consolidated statements of cash flows and that would provide an indication of the Company’s ability to generate cash flows from its mineral projects. Return on Equity is defined as Earnings from Continuing Operations divided by the average Total Equity for the current and previous year. “Mining cost per tonne of ore” and “Cost per tonne of ore” are non-GAAP performance measures that could provide an indication of the mining and processing efficiency and effectiveness of the mine. These measures are calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. “Cost per tonne of ore” is usually affected by operating efficiencies and waste-to-ore ratios in the period. “Cash operating costs per ounce”, “total cash costs per ounce” and “all-in sustaining costs per ounce” as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of these metrics as determined by the Company compared with other mining companies. In this context, “cash operating costs per ounce” reflects the cash operating costs allocated from in-process and dore inventory associated with ounces of gold sold in the period. “Cash operating costs per ounce” may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. “Total cash costs per ounce” includes “cash operating costs per ounce” plus applicable royalties. Cash operating costs per ounce and total cash costs per ounce are exclusive of exploration costs. “All-in sustaining costs per ounce” include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs. Non-GAAP and additional GAAP measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies. For a reconciliation of non-GAAP and GAAP measures, please refer to Alamos’ Managements’ Discussion and Analysis as presented on SEDAR and the Company’s website.

Technical Information

Except as otherwise noted herein, Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this website. Chris Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator’s National Instrument 43-101. For more information, please refer to the Alamos Gold Inc. and AuRico Gold Inc. 2014 Annual Information Forms and the technical reports referenced therein and in this website, available on SEDAR (www.sedar.com).

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