Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) announced the groundbreaking for the Island Gold Mine expansion. Already one of the most profitable mines in Canada, the expansion will increase production, lower costs, and be an economic engine for the Algoma region. The expansion will also best position the operation to benefit from additional exploration success.

John A. McCluskey, President and Chief Executive Officer, stated: “When we first acquired the Island Gold Mine we were aware of its potential. It had 1.8 million ounces of Mineral Reserves and Resources, and through exploration investment we have increased this high-grade deposit to 5.1 million ounces of Mineral Reserves and Resources. By further investing in the Phase III expansion, we will more than double the mine life. This mine will be an economic engine for this region for years to come, and positively impact the closest town of Dubreuilville and surrounding communities.”

The Honourable Greg Rickford, Ontario Minister of Northern Development, Mines, Natural Resources and Forestry, stated: “The Island Gold expansion will help to strengthen the Algoma economy and is the latest in a series of recent success stories in Ontario’s mining sector—successes that our government is proud to support. The project will bring good-paying jobs and prosperity throughout the region including northern and Indigenous communities.”

The Honourable Todd Smith, Ontario Minister of Energy, stated: “Our government has reduced electricity prices for large industrial customers like Alamos Gold by 15 per cent through our Comprehensive Electricity Plan. We are pleased to support expansions like today’s at Alamos Gold that will support good-paying jobs for communities in the north.”

Phase III Expansion Highlights

• Island Gold Mine is a significant employer in the region, sustaining over 600 jobs annually which will continue over the life of mine. During the construction phase of the expansion, employment is expected to double to 1,200 jobs
• The Phase III Expansion study published in July 2020 outlined a 16 year mine life during which Island Gold is expected to expand from 1,200 tonnes per day (“tpd”) to 2,000 tpd following the completion of the shaft in 2025. This is expected to drive production approximately 70% higher to average 236,000 ounces of gold per year at significantly lower costs
• Since the completion of the Phase III Expansion study, Mineral Reserves and Resources have increased 37% to total 5.1 million ounces of gold as of the end of 2021. This growth will be incorporated into an updated mine plan which is expected to be released mid-2022. The optimized mine plan is also expected to incorporate higher-grade additions in proximity to the planned shaft bottom earlier in the mine life, further increasing the value of the operation
• The addition of a shaft connected to low-carbon intensity grid power in Ontario will support higher mining rates with a smaller mobile fleet of haul trucks resulting in significantly lower diesel consumption. This is expected to drive a 35% reduction in greenhouse gas emissions over the Phase III mine life

Island Gold Highlights

• Island Gold’s employees account for over 20% of total mining employment in the Algoma region. Among Island Gold employees, approximately 6% belong to Indigenous communities, which is more than twice the mining industry average of 2.4% in Ontario
• Island Gold’s practice of local hiring has increased economic stability in the local communities of Dubreuilville, Wawa, and White River, offering allowances and incentives to employees to move near the mine in Dubreuilville, indirectly helping to increase rural population as well as local resources and infrastructure
• The Island Gold mine also helps contribute towards the formation of a highly skilled mining workforce and the accumulation of human capital in the local communities: it employs a wide range of tradespersons, such as welders, truckers, surveyors, scoop operators, electricians, mechanics, bolters, millwrights, construction miners, geologists, blasters, conventional miners, engineers, and drillers
• Alamos provides employees with opportunities to further develop their skills, expand their trades and attend training programs
• Alamos offers training and education to community members to maintain a local qualified workforce and help residents acquire the qualifications for long-term employment in the mining industry
• Island Gold’s employees help augment the local economy, through a host of related activities by supporting local businesses while residing in Dubreuilville
• The Island Gold Property is comprised of patented owned, patented Crown leased, Crown mining licences of occupation, and Crown unpatented cell claims, which total approximately 15,524 hectares

A photo accompanying this announcement is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/e329f3ff-d9f8-4aa0-b38c-5303c05c835d

Qualified Persons

Chris Bostwick, FAusIMM, Alamos Gold’s Senior 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”). For further information pertaining to the 2020 Phase III Expansion Study, please see press release titled “Alamos Gold Announces Phase III Expansion of Island Gold to 2,000 tpd”, dated July 14, 2020, and the corresponding technical report, both available under the Company’s profile on SEDAR at www.sedar.com and on the Alamos website at www.alamosgold.com.

About Alamos

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario, Canada and the Mulatos mine 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.