AGI.TO · 2023-08-02 12:00:00

Alamos Gold Announces Updated Feasibility Study for the Lynn Lake Project Outlining Larger, Longer-Life, Low-Cost Operation in Canada with Attractive Economics and Significant Exploration Upside

Economic Studies

ALAMOS GOLD INC.

Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823

Toronto, Ontario, Canada M5J 2T3

Telephone: (416) 368-9932 or 1 (866) 788-8801

All amounts are in United States dollars, unless otherwise stated.

F O R I M M E D I A T E R E L E A S E

W E B S I T E : w w w . a l a m o s g o l d . c o m T R A D I N G S Y M B O L : T S X : A G I N Y S E : A G I

Alamos Gold Announces Updated Feasibility Study for the Lynn Lake Project

Outlining Larger, Longer-Life, Low-Cost Operation in Canada with Attractive

Economics and Significant Exploration Upside

Toronto, Ontario (August 2, 2023) – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or

the “Company”) today reported results from the updated Feasibility Study (“2023 Study”)

conducted on the Lynn Lake project (“Lynn Lake”), located in Manitoba, Canada. The 2023

Study replaces the previous Feasibility Study completed in 2017 (“2017 Study”) and

incorporates a 44% larger Mineral Reserve and 14% increase in milling rates to 8,000 tonnes

per day (“tpd”) supporting a larger, longer-life, low-cost operation.

The 2023 Study has been updated to reflect the current costing environment, as well as a

significant amount of additional engineering, on-site geotechnical investigation work, and

requirements outlined during the permitting process with the Environmental Impact Statement

("EIS”) granted in March 2023. All amounts are in United States dollars, unless otherwise

stated.

2023 Study Highlights:

Higher production: average annual gold production of 207,000 ounces over the first

five years and 176,000 ounces over the initial 10 years

• The 10-year average represents a 23% increase over the annual average of

143,000 ounces in the 2017 Study

Low-cost profile: average mine-site all-in sustaining costs of $699 per ounce over

the first 10-years and $814 per ounce over the life of mine

• Average mine-site all-in sustaining costs decreased 6% from the 2017 Study over

the initial 10-years with economies of scale provided by the larger operation, and

higher average grades, more than offsetting cost inflation

Larger, longer-life operation supported by 44% larger Mineral Reserve with further

upside potential

• 44% larger Mineral Reserve totaling 2.3 million ounces grading 1.52 grams per

tonne of gold (“g/t Au”) (47.6 million tonnes (“mt”))

• 17-year mine life, up from 10 years in the 2017 Study

• Life of mine production of 2.2 million ounces, a 46% increase from 1.5 million

ounces reported in 2017

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Modest increase in capital intensity with larger operation and 46% increase in life of

mine production partly offsetting inflation

• Initial capital of $632 million, and life of mine capital including sustaining capital

and reclamation of $832 million, increased from the 2017 Study reflecting inflation

and scope changes with the larger operation and Mineral Reserve

• Total life of mine capital of $381 per ounce increased 17% from $325 per ounce in

the 2017 Study with the larger Mineral Reserve and economies of scale partly

offsetting the significant industry-wide capital inflation experienced since 2017

Project de-risked given advanced level of engineering, additional geotechnical

work, and EIS approval

• Detailed engineering 55% complete; basic engineering 100% complete

• EIS approval and Provincial licenses received in March 2023 with requirements

outlined through the permitting process incorporated into the 2023 Study

• Extensive geotechnical drilling, test pits, and ground penetrating radar employed

across the project area including the mill, open pits and tailings locations providing

higher degree of confidence around required earthworks, tailings design and mine

plan

Attractive economics with significant long-term exploration upside potential

• After-tax net present value (“NPV”) (5%) of $428 million (base case gold price

assumption of $1,675 per ounce and USD/CAD foreign exchange rate of $0.75:1)

• After-tax internal rate of return (“IRR”) of 17%

• After-tax NPV (5%) of $670 million, and an after-tax IRR of 22%, at current gold

prices of approximately $1,950 per ounce

• Payback of less than four years at the base case gold price of $1,675 per ounce

and less than three years at current gold prices

Significant near-mine and regional exploration upside potential

• The Lynn Lake project encompasses most of the east-trending, 125 km long, Lynn

Lake Greenstone Belt in northwestern Manitoba, with a total of 58,000 hectares of

mineral tenure, representing significant exploration potential, including:

o Gordon deposit: higher-grade gold mineralization extended outside of

Mineral Reserves and Resources in the northeastern extent of the planned

Gordon pit, in an area modeled as waste in the 2023 Study

o Burnt Timber and Linkwood: potential for smaller, higher-grade Mineral

Resource that could be trucked and processed at the planned MacLellan

mill later in the mine life

o Regional targets: extensive pipeline of highly prospective exploration

targets at various stages of exploration across the Lynn Lake greenstone

belt. This includes the Maynard and Tulune targets where ongoing drilling

continues to intersect gold mineralization. Both targets are within trucking

distance of the MacLellan mill

Low Greenhouse Gas (“GHG”) emission intensity

• 18% decrease in GHG emissions per ounce from the 2017 Study reflecting the

incorporation of electric shovels and drills at MacLellan, and productivity

improvements with the larger operation

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• 58% lower emissions per ounce produced than the industry average. The project

will be connected to Manitoba’s electric grid, of which nearly all electricity is

produced from clean, renewable power, supporting the company-wide target of a

30% reduction in absolute GHG emissions by 2030

Fully funded growth

• As outlined previously, the Company does not anticipate spending any significant

capital on developing the Lynn Lake project until the Phase 3+ Expansion at Island

Gold is well advanced

• With $189 million of cash as of June 30, 2023, no debt, strong ongoing free cash

flow generation, and significant free cash flow growth expected from Island Gold in

2026 and beyond, the Company is well positioned to fund development of Lynn

Lake internally

“The 2023 Study has confirmed Lynn Lake as a long-life, low-cost project in Canada, with

attractive economics, and significant upside potential. Good projects are becoming

increasingly rare, especially within top jurisdictions like Canada, highlighting the attractiveness

of Lynn Lake. We have completed an extensive amount of additional engineering, permitting

and other work over the last several years to de-risk the project and assess the exploration

potential. We’ve increased Mineral Reserves by 44% since the 2017 Study, and as outlined in

the exploration update earlier this week, we see excellent potential for that growth to continue.

This includes the Burnt Timber and Linkwood deposits that were not factored into the 2023

Study, and a number of other high-value regional targets where we continue to intersect gold

mineralization in proximity to the planned MacLellan mill,” said John A. McCluskey, President

and Chief Executive Officer.

“Our current priority is the Phase 3+ Expansion at Island Gold with Lynn Lake an important

part of our strong longer-term outlook. Through Lynn Lake, Island Gold, and Young-Davidson,

we have three high-quality assets that can support over 650,000 ounces of annual production

in Canada, at all-in sustaining costs below $1,000 per ounce over the long-term,” Mr.

McCluskey added.

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2023 Feasibility Study Highlights

Production

Mine life (years) 16.5

Total gold production (000 ounces) 2,185

Total silver production (000 ounces) 2,623

Average annual gold production

Years 1 to 5 (000 ounces) 207

Years 1 to 10 (000 ounces) 176

Years 1 to 16 (000 ounces) 135

Total ore mined (000 tonnes) 47,607

Total waste mined (000 tonnes) 324,215

Total material mined (000 tones) 371,822

Total waste-to-ore ratio 6.81

Average gold grade (grams per tonne) 1.52

Average silver grade (grams per tonne) 3.57

Gold Recovery (%) 93.7%

Silver Recovery (%) 48.0%

Average mill throughput (tpd) 8,000

Operating Costs

Total cost per tonne of ore (C$)1 $44.21

Total cash cost (per ounce sold)2,3 $722

Mine-site all-in sustaining cost (per ounce sold)2,3

Years 1 to 5 (per ounce sold) $629

Years 1 to 10 (per ounce sold) $699

Years 1 to 17 (per ounce sold) $814

Capital Costs (millions)

Initial capital expenditure $632

Sustaining capital expenditure $174

Reclamation costs $27

Total capital expenditure – life of mine $832

Total capital expenditure (per ounce sold) – life of mine3 $381

Base Case Economic Analysis: $1,675 per ounce Gold Price

(USD/CAD foreign exchange rate of $0.75:1)

IRR (after-tax) 17%

NPV @ 0% discount rate (millions, after-tax) $875

NPV @ 5% discount rate (millions, after-tax) $428

Payback (years) 3.7

Economic Analysis at $1,950 per ounce Gold Price

(USD/CAD foreign exchange rate of $0.75:1)

IRR (after-tax) 22%

NPV @ 0% discount rate (millions, after-tax) $1,240

NPV @ 5% discount rate (millions, after-tax) $670

Payback (years) 2.7

1. Total unit cost per tonne (“t”) of ore includes royalties and silver as a by-product credit

2. Total cash costs and mine-site all-in sustaining costs include royalties and silver as a by-product credit

3. Please refer to the Cautionary Notes on non-GAAP Measures and Additional GAAP Measures

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Mineral Reserves and Resources

An updated Proven and Probable Mineral Reserve totaling 47.6 mt, grading 1.52 g/t Au and

3.57 g/t Ag, containing 2.3 million ounces of gold and 5.5 million ounces of silver has been

declared at Lynn Lake. This represents a 44% increase from the 1.6 million ounces included

in the 2017 Study, reflecting the successful conversion of Measured, Indicated and Inferred

Mineral Resources at the Gordon and MacLellan deposits, and 13% increase from the end of

2022 reflecting the higher gold price assumption. Only Mineral Reserves have been

incorporated into the 2023 Study mine plan and economic analysis.

Mineral Reserves – Effective as of June 30, 2023

Classification Tonnage

(000’s)

Au Grade

(g/t)

Ag Grade

(g/t)

Au Oz

Contained

(000’s)

Ag Oz

Contained

(000’s)

MacLellan Proven 16,498 1.66 5.31 883 2,815

Probable 23,240 1.12 3.55 834 2,650

Proven & Probable 39,738 1.34 4.28 1,717 5,464

Gordon Proven 3,502 2.63 - 296 -

Probable 4,370 2.27 - 319 -

Proven & Probable 7,873 2.43 - 615 -

Total Lynn Lake Proven 20,000 1.83 4.38 1,179 2,815

Probable 27,610 1.30 2.98 1,153 2,650

Total Proven and Probable 47,610 1.52 3.57 2,332 5,464

• Mineral Reserves reported are consistent with the CIM Definition Standards for Mineral Resources and Mineral Reserves.

• Mineral Reserves are reported to a cut-off grade of 0.796 Au g/t at Gordon and 0.355 Au g/t for MacLellan.

• The cut-off grades are based on a gold price of US$1,250/oz Au at Gordon, US$1,600/oz Au at MacLellan.

• Silver is not used in the cut-off grade calculation.

• Metallurgical Au recovery is 92.4% for Gordon and a feed grade-based formula for MacLellan.

• Totals may not add up due to rounding.

• Chris Bostwick, FAusIMM, Senior Vice President, Technical Services is the Qualified Person for the Mineral Reserve

estimate. Mr. Bostwick is a Qualified Person within the meaning of Canadian Securities Administrator's National Instrument

43-101 ("NI 43-101").

Mineral Resources for the Gordon and MacLellan deposits detailed below have not been

included in the mine plan but represent potential upside through their incorporation into the

mine plan with higher metal prices and additional infill drilling.

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Open Pit Mineral Resources – Effective as of June 30, 2023

MacLellan

Category Tonnage

(000’s)

Au Grade

(g/t)

Ag Grade

(g/t)

Au oz

Contained

(000’s)

Ag oz

Contained

(000’s)

Measured 786 1.63 3.09 41 78

Indicated 3,200 1.52 3.44 156 354

Measured & Indicated 3,986 1.54 3.37 197 432

Inferred 4,192 0.98 1.49 133 201

Gordon