Page 68 By Gregory Reynolds Based on third quarter results Rich mont Mines Inc sees no reason its cornerstone asset the Island Gold Mine won t beat 2017 annual guid ance The Island Gold Mine has delivered another record quarter of production at peer leading cash costs which po sitions the operation to beat annual guidance for the third consecutive year During the ninemonth period this high quality asset continued to out perform the recently released Pre liminary Economic Assessment on all key metrics including tonnes mined and mil led grades and unit operating costs all of which will support a sig nifcant free cash fow stream com mented Renaud Adams president and CEO He continued during the quarter we announced a pivotal transaction with Alamos that is consistent with our commitment to create signifcant shareholder value Our shareholders will maintain expo sure to the ongoing potential of the Island Gold Mine and beneft from having meanin gful ownership in a di versifed intermediate producer with a proven and experienced management team T ransaction Highlights Acquisition of a highquality free cash fowing mine in a W orld Class Jurisdiction Island Gold is a long life highgrade under ground mine with growing production and frst quartile cash costs located in Ontario Canada Solidifes position as a leading in termediate gold producer combined entity is expected to have diversi fed gold production of over 500000 ounces in 2017 anchored by three core lowcost longlife operations in Canada and Mexico Superior production growth and cost profle Island Gold s near term production growth compleme nts Ala mos existing peer leading growth profle while lowering the near and longterm cost profle of the com bined company Improved cash fow generation to support peer leading growth pipeline Island Gold provides immediate cash fow accretion and stronger op erating cash fow to support internal growth initiatives of the pro forma company John McCluskey president and CEO of Alamos stated Our combina tion with Richmont refects our core strategy of creating long term value through operating high quality assets The Island Gold Mine is a high qual ity asset in every respect W e see excellent potential for reserve and production growth from one of the highest grade lowest cost gold mines in Canada W ith this production base growth and balance sheet strength Alamos will be the leading intermedi ate producer and presents a compel ling revaluation opportunity for both Alamos and Richmont shareholders Third Quarter Richmont Highlights Island Gold reported record produc tion of 26659 ounces of gold 22666 Richmont s Island Gold Mine jewel in merger with Alamos Contd on pg 69