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Island Gold is a long-life, high-grade, low-cost underground gold mine located in Ontario, Canada. The operation is undergoing an expansion which will drive production higher, costs lower and strong free cash flow growth.

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ISLAND GOLD MINE

Ownership	100%
Location	Ontario, Canada
Status	Operating
Operation	Underground
Commodity	Gold

Annual Operating Data		2016A	2017A	2018E
Production	oz Au	83,323	98,600	90,000 - 100,000
Total Cash Costs¹	US$/oz	$587	$470	$575
Mine-Site All-in Sustaining Costs¹	US$/oz	$745	$599	$825
		Tonnes (000)	GRADE (g/t Au)	Contained Ounces
Proven & Probable Reserves		2,703,000	10.20	887,000
Measured & Indicated Resources³		591,000	5.86	111,000
Inferred Resources		2,958,000	9.55	908,000

³M&I resources exclusive of Reserves.

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HIGHLIGHTS

Island Gold is one of Canada’s highest grade and lowest cost gold mines.

The mine is expected to produce between 90,000 and 100,000 ounces of gold in 2018 at mine-site AISC¹ of $825 per ounce.

The operation is undergoing a phase I expansion which is expected to increase production to an average of 125,000 ounces of gold per year at mine-site AISC¹ of $550 per ounce starting in 2019 as outlined in the 2017 PEA.

Island Gold has a strong track record of exploration success with mineral reserves at the end of 2017 having increased 383% in terms of ounces and 60% in terms of grade since 2014.

The mine also has a large mineral resource base, strong track record of resource conversion and significant ongoing exploration potential with the deposit open laterally and at depth.

OVERVIEW

The Island Gold mine is a high grade, low cost underground mining operation located in Northern Ontario, Canada. The mine began production in October 2007 and has produced over 500,000 ounces of gold to date.

The operation is undergoing a phase I expansion of underground mining and milling rates to 1,100 tonnes per day (“tpd”) as outlined in the May 2017 Expansion Case Preliminary Economic Assessment (“PEA”). The expansion is expected to be completed in the second half of 2018 for minimal incremental capital of approximately $23 million. This is expected to drive strong free cash flow growth reflecting an increase in average annual production rates to approximately 125,000 ounces of gold and decrease mine-site AISC to approximately $550 per ounce starting in 2019.

The main objective of the PEA was to identify the most cost and capital effective approach to mining mineral resources within the main area of focus over four mining horizons and down to a maximum depth 1,000 metres, using existing mine infrastructure. As such, there remains additional opportunities for mine life extension and further expansions incorporating the more than 750,000 ounces of inferred mineral resources (as of December 31, 2016) not included within the PEA and the significant exploration potential with the deposit open laterally and at depth.

LOCATION

The Island Gold Mine is located 83 kilometres northeast of Wawa, Ontario. The mine comprises 217 patented, leased and staked claims covering 7,926 hectares. It is accessible via a four-season road from Highway 519, just west of the town of Dubreuilville.

HISTORY

In 1985, drilling approximately two kilometers south of the Kremzar Mine intersected a series of sub-parallel lenses containing gold mineralization within deformed rocks of the Goudreau Lake Deformation Zone (gldz). These lenses are known as the Lochalsh, Island Gold, Shore, and Goudreau Lake Zones. Over 1989 and 1990, underground access was established into the Island deposit with an adit from the north shore of Goudreau Lake. A bulk sample weighing 4,167 tonnes was extracted and processed at the on-site Kremzar Mill.

Encouraging results were obtained from exploration work conducted from 1996 to 2002 and, in 2004, an exploration program was initiated in order to complete a resource estimate. On January 1, 2005, Richmont Mines became the operator of the project. The project began commercial production on October 1, 2007. Richmont acquired Patricia Mining’s 45% interest in December 2008, becoming 100% owner of the property and operations.

Exploration activities ramped up in 2009 with a minimum of 30,000 metres of drilling completed in each of the next several years, increasing sharply to more than 80,000 metres in 2012. This included drilling below the 400 metre level as part of the Island Gold Deep program which resulted in the discovery and initial inferred mineral resource on the high grade deep C Zone in January 2013. Over the next year, drilling in the Island Gold Deep sectors from the west, below Lochalsh, to the east and below Extension 1 confirmed the presence and continuity of the deep C Zone and some parallel zones. This drove a substantial increase in inferred mineral resources to 3.6 million tonnes grading 9.07 g/t for 1.04 million ounces of gold as of April 2014. This represented an increase of nearly one million ounces at a 46% higher grade from the end of 2012.

Ongoing exploration success continued to add higher grade inferred mineral resources over the next few years while a large portion was converted to mineral reserves. As of the end of 2016, mineral reserves had increased 309% in terms of ounces and 44% in terms of grade, relative to the end of 2014.

Reflecting the growth in mineral reserves and resources, the significant improvement in grades and ongoing operational improvements, Island Gold’s 2017 rate of gold production is expected to nearly triple that of 2013, while mine-site all-in sustaining costs have decreased by more than half. As outlined in the May 2017 expansion PEA, this production growth and decline in costs is expected to continue over the next several years.

In November 2017 Alamos Gold acquired Richmont Mines, and the Island Gold mine.

GEOLOGY AND MINERALIZATION

The property lies within the Michipicoten greenstone belt, which is part of the Wawa subprovince and Superior province of Archean age. The Michipicoten greenstone belt is approximately 140 km long by 45 km wide. The property is stratigraphically positioned in the upper portion of the Wawa Assemblage capped by pyrite-bearing iron formation outcropping in the Morrison and Pine zones.

A 30 km long and 4.5 km wide northeasterly trending, structurally deformed zone, called the Goudreau Lake Deformation Zone (GLDZ), occurs between the two assemblages. Including its subsidiary splays, the GLDZ is believed to be the main control on gold mineralization for the area. East-northeast striking, steeply dipping, sub-parallel zones of gold mineralization are present within the quartz sericite-pyrite-carbonate alteration of the GLDZ. North trending diabase dikes crosscut all stratigraphy.

MINING AND PROCESSING

Island Gold’s underground operations are accessed via a ramp system. The primary mining method is longitudinal retreat long-hole stoping. Ore is hauled by truck to the Kremzar mill located approximately 0.8 km from the portal of the ramp.

Ore is processed through a traditional gold mill using a conventional Carbon in Pulp (“CIP”) process, with circuits for crushing, grinding, gold cyanidation and two electrowinning (“EW”) cells. As part of the PEA expansion to 1,100 tpd, the grinding circuit within the mill is being upgraded, primarily through the addition of another ball mill.

Technical Information and Cautionary Notes on non-GAAP Measures and Additional GAAP Measures

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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.

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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.

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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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