Page 30 cash charges such as depreciation depletion amortization that reduce earnings but not cash fows The generated cash fow from op erating activities of 474 million 528 million or 014 per share before changes in working capital an increase from the third quarter primarily refecting lower costs higher gold sales and a higher real ized gold price 2018 was a record breaking year for Alamos Gold with a record pro duction of 505000 oz of gold a whopping 18 increase from the previous record in 2017 Both Island Gold and Mulatos Mine had increased production guid ance A record 509879 oz of gold was sold at an average realized price of 1278 per oz for record revenues of 6518 million Alamos generated positive free cash fow at each of the Company s operations for total minesite free cash fow of 564 million Mineral Reserves at Y oungDa vidson decreased 02 million oz to 33 million oz of gold refecting mining depletion With a large ex isting mineral reserve base and the nearterm focus on completing the lower mine expansion exploration has not been a priority Exploration activities from underground drilling platforms at depth are expected to commence on completion of the lower mine expansion in 2020 With the deposit open at depth and to the west Y oungDavidson has excellent exploration potential The Measured and Indicated Min eral Resources of 14 million oz and Inferred Mineral Resources of 03 million oz were unchanged from 2017 Alamos expects a strong con version rate of these Mineral Re sources to Mineral Reserves through stope defnition and infll drilling with further potential to add to the Mineral Resource base Y oungDavidson also has 02 million tonnes of surface stockpiles grad ing 083 gt Au These will be used to supplement higher grade under ground ore until depleted in the third quarter of 2019 Based on expected underground mining rates the re maining Mineral Reserve life of the Y oungDavidson mine is approxi mately 13 years as of December 31 2018 Island Gold s Mineral Reserves in creased to 10 million oz a 14 increase from the end of 2017 and 5 increase from the June 30 2018 update net of mining depletion Ap proximately 70 of the new Mineral Reserves came from gains in the Main C Zone with the bulk of the re mainder in the Eastern Extension Mineral Reserve grades increased slightly to 1028 gt Au from 1020 gt Au at the end of 2017 Based on throughput rates of 1100 tonnes per day tpd Island Gold has a current Mineral Reserve life of approximately eight years Given the signifcantly larger Mineral Resource base strong track record of conver sion to Mineral Reserves and ongo ing exploration success the Compa ny expects Island Gold s mine life will more than double the current Mineral Reserve life A total of 19 million has been bud geted for exploration at Island Gold in 2019 The focus will remain on continuing to defne new nearmine Mineral Resources and extend high grade mineralization laterally and downplunge across each of the W estern Main and Eastern Exten sions The Phase I expansion at Island Gold was completed on schedule in the third quarter increasing mill ca pacity to 1100 tonnes per day L ynn Lake s Proven and Probable Mineral Reserves increased 16 to 19 million oz of gold 320 mt grad ing 183 gt Au with the Mineral Re serve additions being incorporated into an optimized Feasibility Study to be published in the second quar ter of 2019 Global exploration budget of 33 million in 2019 including 19 million at Island Gold focused on defning additional near mine Mineral Re sources and 6 million budgeted at each of Mulatos and L ynn Lake Since its acquisition in November 2017 the Island Gold mine has outperformed in every regard and validated our views on the quality of the asset During 2018 we added one million ounces across all min eral reserve and resource catego ries at Island Gold before mining depletion The Island Gold deposit is approaching three million ounces in all categories production is hit ting new records and the operation is generating strong free cash fow even with our continued aggressive investment in exploration W e look forward to continuing to grow both mineral reserves and resources and production at Island Gold said John A McCluskey President and Chief Executive Of fcer 2018 record breaking year for Alamos Gold Contd from pg 26