Richmont Announces 2016 Operational Outlook

Toronto (ots/PRNewswire) -

Guidance for another Record Year at Island Gold, with a Potential
22% Increase in Production and a Decrease in All-in-Sustaining Costs

Richmont Mines Inc. (TSX - NYSE MKT: RIC) ("Richmont" or the
"Corporation"), announces 2016 estimates that include a potential
increase in production of up to 22% from the cornerstone Island Gold
mine that is expected to drive a decrease in All-in Sustaining Costs
("AISC"). (All amounts are in Canadian dollars unless otherwise
indicated).

2016 Consolidated Operational Estimates

In 2016, company-wide production includes another year of
production growth from the cornerstone Island Gold Mine and another
solid year of consistent production from the Beaufor Mine.
Consolidated annual production is expected to be consistent with 2015
as increased production from Island Gold is expected to fully offset
the production decrease related to the 2015 closure of the Monique
Mine. Company-wide cash costs and AISC are expected to be largely
in-line with the prior year's guidance estimates.

Material assumptions include: an average gold price of CAD$1,500
per ounce (US$1,100 per ounce); and a foreign exchange rate of 1.394
Canadian dollars to the US dollar. Note: 2015 Cash cost and AISC
results are expected to be released on February 22, 2016.


2016 Consolidated Operational Estimates
Island Gold Beaufor Estimates Gold Ounces
Produced 62,000-67,000 25,000-30,000
87,000-97,000 Cash Costs per Ounce (CAD$)(1)
$900-$960 $1,000-$1,060 $930-$1,000
Sustaining Capital per Ounce (CAD$) $260-$290 $230-$270
$250-$280 Corporate G&A per Ounce (CAD$) -
- $95-$110 All-in Sustaining Costs
per Ounce (CAD$)(1) $1,160-$1,250
$1,230-$1,330 $1,275-$1,390 Cash Costs per Ounce (US$)(1)
$660-$705 $735-$780 $680-$730
Sustaining Capital per Ounce (US$) $190-$215 $170-$195
$185-$205 Corporate G&A per Ounce (US$) -
- $70-$80 All-in Sustaining Costs
per Ounce (US$)(1) $850-$920
$905-$975 $935-$1,015 (1) Cash costs and AISC are
non-GAAP measures. Refer to the Non-GAAP performance measures
section in the Third Quarter MD&A.

2016 Capital Investment & Exploration Estimates

The Corporation will remain focused on a disciplined and prudent
capital allocation strategy to ensure expenditures are fully funded
internally with sustaining capital investment requirements expected
to reduce compared with the prior year. Project capital investment
for the year is focused on the continued development of the Island
Gold Mine, as detailed in the recent Preliminary Economic Assessment
("PEA") released in October 2015. Total capital investment estimates
for the year include a potential $10 million (US$7.3 million) in