The updated mineral reserve estimate was calculated as at December 31, 2008 using a $700 per ounce gold price and consists of proven and probable reserves of 2.05-million contained ounces. This reflects a 21% increase from the proven and probable reserve estimate of 1.69 million contained ounces (32.1-million tonnes grading 1.64 grams of gold per tonne of ore (“g/t Au”)) at December 31, 2007. The updated mineral reserve estimate incorporates the Estrella, Escondida, Puerto del Aire (“PdA”), El Salto, and Mina Vieja areas, which are consolidated and reported as part of the “Mulatos Pit”, and El Victor, which is reported separately as the “El Victor Pit”. The life-of-mine model for the Mulatos Pit has a waste-to-ore ratio of 1.60:1, and the El Victor pit has a 1.23:1 waste-to-ore ratio.  Reserves at Puerto del Aire and El Victor are being reported for the first time.

The 21% increase in reserve ounces is attributable to the conversion of resources from El Victor and Puerto del Aire, additional resource ounces upgraded to reserve as a result of closer-spaced drilling, and the use of a $700 per ounce gold price compared to the $600 or lower gold price estimate used in the prior year calculations. Compared to the 2007 reserve estimate, total tonnes included in proven and probable reserves increased 48%, while the average reserve grade decreased 18% from 1.64 g/t Au to 1.35 g/t Au. The higher gold price used in the 2008 reserve estimate allowed lower grade material to be classified as ore and included in reserves. To a lesser extent, the lower average grade resulted from the inclusion of reserves at Puerto del Aire and El Victor. Based on current throughput rates, the reserve update has increased the overall expected mine life to approximately ten years. While the average reserve grade has decreased, the 2009 mine plan remains unchanged with expected grades of 1.60 g/t Au.

Proven and probable reserves as at December 31, 2008 are summarized in the table below:

(1)       Reserve cut-off is determined as a net of process value of $0.10 per tonne, for each model block.  The determination was based on a $700 per ounce gold price, a February 2009 recovery model, and November 2008 actual cost figures from current mining operations.

(2)       The Company’s reserves as at December 31, 2008 are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves, Definition and Guidelines” as per Canadian Securities Administrator’s National Instrument 43-101 (“NI 43-101”) requirements.

Measured and indicated resources total 1.66 million contained ounces and inferred resources total 1.04 million contained ounces calculated at a 0.5 g/t Au cut-off grade as at December 31, 2008. The 2008 measured and indicated resource estimate represents a 14% decrease compared to the prior year. This decline is due in part to the conversion of measured and indicated resources into reserves, but is largely compensated by a significant 129% increase in inferred resources from 0.46 million ounces at December 31, 2007 to 1.05 million ounces at December 31, 2008. The increase in inferred resources is due primarily to the addition of geologic and resource models for the Gap, La Yaqui, and San Carlos areas. To date in 2009, the Company has completed approximately 3,225 metres of in-fill drilling at Gap that was not incorporated into the resource estimate as at December 31, 2008. The Company expects that including this drilling data in the resource estimate may result in upgrading inferred resources at Gap to either the measured or indicated categories.

Measured, indicated and inferred resources as at December 31, 2008 are summarized in the table below (3):

 (3) In-pit measured and indicated blocks have a cut-off determined as a net-of-process value between $0.01 and $0.10 per tonne, and are tabulated by gold grade.  In-pit inferred, and resources outside of the El Victor and Mulatos pits, have no economic restrictions and are tabulated by gold cut-off grade.

Outlook

The Company’s exploration budget for 2009 is $10 million.  Alamos expects drill approximately 65,000 metres in 2009, and anticipates that additional drilling at Gap, Puerto del Aire, San Carlos, Cerro Pelon and Escondida will result in growing its reserve and resource base in 2009.