Richmont Mines

Richmont Mines Reports Strong Operational Second Quarter

Toronto (ots/PRNewswire) - Island Gold Mine Delivers Solid Production and Records Low Cash Costs of US$431 per ounce; On-Track to Meet or Exceed Annual Guidance

Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), reports strong second quarter results with company-wide production of 31,249 ounces of gold, at cash costs1 of $725 (US$539) per ounce. The strong operational performance was driven by solid production from the Island Gold Mine of 26,110 ounces of gold, at record low cash costs of $580 (US$431) per ounce. (All amounts are in Canadian dollars unless otherwise indicated.)


- Company-wide production was 31,249 ounces of gold (35,040 ounces 
  sold) for the quarter, primarily driven by another quarter of solid
  production from the Island Gold Mine of 26,110 ounces of gold 
  (29,534 ounces sold). The mine is now well positioned to achieve, 
  or exceed, the high-end of production guidance for the year of 
  87,000-93,000 ounces.
- Company-wide cash costs for the quarter were $725 (US$539) per 
  ounce, positively impacted by record low cash costs from the Island
  Gold Mine of $580 (US$431) per ounce. The Island Gold Mine remains 
  on-track to meet, or beat, the low end of annual cash cost 
- The Island Gold Mine reported record underground mine productivity 
  of 1,148 tonnes per day, exceeding the late-2018 target rate of 
  1,100 tonnes per day. The mill averaged a record 940 tonnes per day
  and is expected to achieve the target rate of 1,100 tonnes per day 
  once the mill expansion is completed in the latter part of 2018.
- Revenues for the quarter were $59.3 (US$44.1) million.
- During the quarter, Richmont announced results from the Expansion 
  Case Preliminary Economic Assessment ("PEA") completed on the 
  Island Gold Mine. The PEA confirmed the positive economics of a low
  cost 1,100 tonne per day underground mine and mill expansion and 
  represents another positive step forward in unlocking the potential
  of the Island Gold Mine. 

"The Island Gold Mine has delivered another solid operational quarter that positions the operation to potentially exceed annual production guidance at record low cash costs. As demonstrated in the recently released PEA, we continue to successfully transform the mine into one of the lowest cost underground gold producers in the Americas as we execute on our disciplined, multi-phased growth strategy," commented Renaud Adams, President and CEO. He continued, "During the balance of the year our focus at the Island Gold Mine will remain on enhancing operational and cost efficiencies, executing on our expansion plan and advancing our strategic delineation and exploration drilling programs. All of these initiatives are supported by our strong balance sheet and our disciplined approach to capital allocation."

1 Refer to the Non-IFRS Performance Measures disclosure presented at the end of this press release.

Second quarter operational highlights for the Island Gold and Beaufor mines are provided in the tables below:

Production Highlights

Q1 16    Q2 16   Q3 16    Q4 16    Q1 17   Q2
17    H1 17 Guidance
Gold Produced
Gold                      14,031(                       
Mine      26,589   18,617      2)   24,086   23,772  
26,110   49,882    3,000
Mine       4,615    4,703   4,825    5,419    5,629   
5,139   10,768    7,000
Monique  1,165(1
Mine           )    -        -       -        -        -
-        -
Total Produced                                                   
(oz)               32,369   23,320  18,856   29,505   29,401  
31,249   60,650  120,000
(1) Processing of the remaining stockpile pad at the depleted 
Monique Mine
was completed at the end of January 2016.
(2) Q3 2016 production includes a 16-day underground mine 
shutdown and a
25-day mill shutdown. 

Cash Cost Highlights

Q1 16    Q2 16   Q3 16  Q4 16   Q1 17    Q2 17
H1 17     Guidance
Cash Costs
Mine        $667     $757    $947   $826    $668     $580
$618    $715-$765
Mine      $1,396   $1,484  $1,408 $1,480  $1,265   $1,502
$1,380            0
Mine      $1,182    -        -      -       -       -    
-         -
Total Cash
Costs ($)(1)        $800     $895  $1,054   $952    $791     $725
$754    $835-$885
Cash Costs
Mine        $486     $588    $726   $619    $504     $431
$463 $550-$590(2)
Mine      $1,017   $1,152  $1,080 $1,110    $956   $1,117
$1,034           2)
Mine        $861    -        -      -       -       -    
-         -
Total Cash
Costs (US$)(1)      $583     $695    $808   $714    $598     $539
$565 $640-$680(2)
(1) Refer to the Non-IFRS Performance Measures disclosure 
presented at the
end of this press release.
(2) Assuming an exchange rate of 1.30 Canadian dollars to 1.0 US 

Operational Highlights

Q1 16    Q2 16    Q3 16    Q4
16    Q1 17   Q2 17
Island Gold Mine
Underground tpd           853      911   735(1)      
977    1,019   1,148
Mill tpd                  834      878   640(1)      
903      926     940
Mill head grade (g/t)   11.31     7.51     7.70     
9.31     9.18    9.73
Beaufor Mine
Underground tpd           323      286      282      
302      354     339
Mill head grade (g/t)    4.96     5.27     5.62     
6.16     6.00    5.21
(1) Q3 2016 productivity includes a 16-day underground mine 
shutdown and a
25-day mill shutdown. 

Island Gold Mine Highlights

- Production for the quarter was 26,110 ounces of gold (29,534 ounces
  sold). The mine is now well positioned to achieve, or exceed, the 
  high-end of production guidance for the year of 87,000-93,000 
- Record low cash costs for the quarter of $580 (US$431) per ounce, 
  significantly below annual guidance of $715-765 (US$550-590) per 
  ounce for the year.
- Mill head grade for the quarter was 9.73 g/t gold, partially 
  resulting from lower than planned dilution in development ore. The 
  2017 mine plan, assuming a 900 tonnes per day scenario, forecasts 
  an overall mill head grade of approximately 8.9 g/t gold for the 
- Record underground mine and mill productivities for the quarter, 
  averaging 1,148 and 940 tonnes per day, respectively, with 
  lower-grade underground ore stockpiled for future processing, also 
  contributing to the improved overall mill head grade for the 
- During the quarter, long-hole stope mining continued in the first 
  and second mining horizons and development in ore was advanced as 
  planned in the higher-grade third mining horizon. Stoping in the 
  lower grade extensions of the third mining horizon is expected to 
  begin in the fourth quarter.
- The development of the eastern portion of the main ramp system 
  reached a vertical depth of 860 metres at the end of the first 
  quarter, which is in-line with the 2017 development plan. 
  Development of the western portion of the main ramp system was 
  initiated during the second quarter.
- For the first six months, development of the 620 metre and 840 
  metre level exploration drifts advanced 250 metres and 80 metres, 
  respectively, supporting ongoing exploration and delineation 
  drilling both laterally to the east and at depth.
- During the quarter the transition from underground development 
  contractors to the internal workforce was initiated as planned, 
  this is expected to further reduce development costs over the 
  balance of the year.
- The results of the Expansion Case PEA were released during the 
  second quarter (see May 29, 2017 press release). The study 
  represents another step in a multi-phased approach to unlock the 
  potential of the Island Gold Mine. The PEA confirms the increase in
  underground mine and mill productivity to 1,100 tonnes per day that
  will support strong production growth of 22% at low industry cash 
  costs and a robust cash flow stream over an eight-year Phase 1 
  period, for a low incremental capital cost of $28.2 (US$20.9) 
  million. The ramp-up to 1,100 tonnes per day is currently advancing
  and the operation is anticipated to achieve the target run rate in 
  the latter part of 2018. 

Beaufor Mine Highlights

- Production for the quarter was 5,139 ounces of gold (5,506 ounces 
  sold). Production in the quarter was lower than anticipated, 
  primarily due to lower grades mined as higher than expected 
  dilution was reported from one stope located in the Q Zone.
- Cash costs of $1,502 (US$1,117) per ounce, higher than annual 
  guidance, are primarily related to lower production achieved for 
  the quarter.
- Underground productivity was 339 tonnes per day. During the 
  quarter, the majority of mining activities were within the main Q 
  Zone, however beginning in Q3 mining flexibility is expected to 
  improve as additional ore will be sourced from new parallel 
- During the quarter, the Corporation advanced the review of 
  strategic alternatives regarding the Beaufor Mine and Camflo Mill. 

Upcoming News

- Exploration Update (Q3 2017).
- Q2 Financial Results (August 3). 

Non-International Financial Reporting Standards ("IFRS") Performance Measures

In this press release, the term "cash costs per ounce" is used, which is a non-IFRS performance measure, and may not be comparable to similar measures presented by other companies. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, the Corporation and certain investors use this information to evaluate the Corporation's performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. "Cash costs per ounce" is a common performance measure in the gold mining industry, but does not have any standardized definition. The Corporation reports cash cost per ounce based on ounces sold. Cash costs include mine site operating costs, administration, royalties and by-product credits but are exclusive of depreciation, accretion expense, interest on capital leases, capital expenditures and exploration and project evaluation costs. Refer to the Corporation's 2017 and 2016 MD&A for a reconciliation of cash costs to cost of sales.

About Richmont Mines Inc.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont's Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates

Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the United States Securities and Exchange Commission (the "SEC"). The requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") adopted by the Canadian Securities Administrators differ significantly from the requirements of the SEC.

U.S. Investors are urged to consider the disclosure in our annual report on Form 40-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site:

National Instrument 43-101

The scientific or technical information in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont, and a qualified person as defined by NI 43-101.


Renaud Adams

President and CEO

Phone: +1-416-368-0291 ext. 101 
Anne Day

Senior Vice-President, Investor Relations

Phone: +1-416-368-0291 ext. 105 

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