Alamos Gold: Alamos Gold Announces Receipt of Environmental Permit Amendment Allowing for the Start of Construction on the Puerto Del Aire Project in Mexico

All amounts are in United States dollars, unless otherwise stated. TORONTO , Jan. 29, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI ) ("Alamos" or the "Company") today announced it has been granted approval of an amendment to its existing environmental impact assessment (Manifestación de Impacto Ambiental "MIA") by Mexico's Secretariat of Environment and Natural Resources ("SEMARNAT"), allowing for the start of construction on the Puerto Del Aire ("PDA") project located within the Mulatos District . "Mulatos is our founding operation and a steady producer since 2005. Through a long-track record of exploration success, we have discovered and developed a number of high-return projects that have continued to extend the mine life of the Mulatos District . Having achieved this key permitting milestone through long-standing community, state, and federal government support, PDA is expected to significantly extend the mine life of the District, as our next high-return project with significant exploration upside. With an initial Mineral Reserve and Resource declared on PDA at the end of 2021, the transition from discovery to construction has been rapid and exemplifies the exploration upside within the District," said John A. McCluskey , President and Chief Executive Officer. As outlined earlier this month, construction activities on PDA are expected to begin ramping up toward the middle of 2025. Capital spending on PDA is expected to total $37 to $40 million in 2025 to advance underground development and procurement of mill long lead time items. The remainder of the total initial capital estimate of $165 million will be spent in 2026 and 2027 with first production anticipated mid-2027. PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit. The results of a positive internal economic study were announced in September 2024 and highlighted an attractive, low-cost, high-return project. Annual gold production is expected to average 127,000 ounces over the first four years, and 104,000 ounces over an eight-year mine life based on Mineral Reserves at the end of 2023. Mine-site all-in sustaining costs are expected to average $1,003 per payable ounce. Combined with a low capital intensity, PDA has an estimated after-tax Net Present Value ("NPV") (5%) of $269 million , and after-tax Internal Rate of Return ("IRR") of 46%, using a base case gold price of $1,950 per ounce and MXN/USD foreign exchange rate of 18:1. At a $2,500 per ounce gold price, PDA has an estimated after-tax NPV (5%) of $492 million and an after-tax IRR of 73%. The project contains significant exploration upside with PDA open in multiple directions and higher grade mineralization intersected below the past producing Cerro Pelon open pit. This is expected to support an initial underground Mineral Resource at Cerro Pelon with the 2024 year-end update to be released in February 2025 . Cerro Pelon represents upside as a potential source of additional feed to the PDA sulphide mill that could extend the higher rates of production beyond the first four years of the current mine plan. About Alamos Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America . This includes the Island Gold District and Young - Davidson mine in northern Ontario, Canada , and the Mulatos District in Sonora State, Mexico . Additionally, the Company has a strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada . Alamos employs more than 2,400 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 Senior Vice President, Corporate Development & Investor Relations (416) 368-9932 x 5439 Khalid Elhaj Vice President, Business Development & Investor Relations (416) 368-9932 x 5427 ir@alamosgold.com The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. Cautionary Note Regarding Forward Looking Statements This news release contains or incorporates by reference "forward-looking statements" and "forward-looking information" as defined under applicable Canadian and U.S. securities laws. All statements in this news release, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward-looking statements and are generally, but not always, identified by the use of forward-looking terminology such as "expect", "anticipate", "potential", "opportunity", "estimate", "continue", "budget", 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 contained in this news release are based on information, expectations, estimates and projections as of the date of this news release. Forward-looking statements in this news release include, but may not be limited to, information as to strategy, plans, expectations or future financial or operating performance pertaining to, or anticipated to result from, the PDA development project, such as expectations, assumptions and estimations regarding: the project and its attractive economics and significant exploration upside; construction and development of the project; timing of construction activities; development focusses; initial underground Mineral Resource at Cerro Pelon ; mine life; mine plan; exploration potential; anticipated production; gold grades; mineralization; budget allocation for PDA development; initial capital estimates and anticipated spending; operating costs including mine-site all-in sustaining costs; cash costs; economic analysis including after-tax net present value and internal rate of return; gold price, other metal prices and foreign exchange rates; the nature and stability of relationships with the Mexican authorities and administration; community support; and other statements that express management's expectations or estimates of future performance, operational, geological or financial results. The Company cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political, and competitive uncertainties, and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include (without limitation): the actual results of current exploration activities; conclusions of economic and geological evaluations; changes in project parameters as plans continue to be refined; any impacts of any illnesses, diseases, epidemics or pandemics on operations and the broader market, including the nature and duration of any regulatory responses; state and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company's operations) in Mexico ; changes in national and local government legislation, controls or regulations; failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); ability to sell or deliver gold doré bars; disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, and Mexican peso); the impact of inflation; employee and community relations; litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays in the development or updating of mine and/or development plans; changes that may be required to the intended method of accessing and mining the deposit at Puerto Del Aire and changes related to the intended method of processing any ore from the deposit at Puerto Del Aire ; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; the risk that the Company's mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, risks in obtaining and maintaining necessary licenses, permits and authorizations, contests over title to properties; expropriation or nationalization of property; political or economic developments in Canada or Mexico and other jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of construction and development of new deposits; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and business opportunities that may be purs