Algold Files Preliminary Economic Assessment Technical Report for Tijirit

MONTREAL, July 05, 2018 (GLOBE NEWSWIRE) -- ALGOLD RESOURCES LTD. (TSX-V:ALG) (the "Corporation") today announced that it has filed a technical report entitled Technical Report for the Preliminary Economic Assessment of the Tijirit Project in Mauritania (the "Report") dated July 4, 2018. The Report supports the disclosure made in Algold's press release issued on May 22, 2018 entitled Algold Announces Positive Preliminary Economic Assessment for the Tijirit Gold Project. There are no material differences in assumptions and estimates contained in the Report from those disclosed in the news release. The Report is available on Sedar (www.sedar.com) and on the Corporation's website (www.algold.com).

Highlights of the Tijirit PEA*
(All monetary amounts are in US dollars unless otherwise indicated.)

• Financial Returns: Project net present value ("NPV") of $94.9M at an 8% discount rate with an internal rate of return ("IRR") of 28.4% and Corporate after-tax NPV of $69.0M at an 8% discount rate with an IRR of 23.5% , using a gold price of $1,250 per ounce.
• Revenue: Total revenue derived from the sale of the gold for the life of mine ("LOM") was estimated at $717.4M.
• CapEx: Pre-production direct capital cost of $96.4M, in addition to indirect costs of $31.2M and a contingency allowance of $17.9M. Total sustaining and expansion CapEx of $47.1M over the mine life including the Phase II expansion in year 4.
• Production:
  - Phase I: 1,018 million tonnes per year for a period of four (4) years with an average annual production rate of 104,500 ounces of gold.
  - Phase II: 1,642 million tonnes per year for the three (3) following years with an average annual production rate of 53,000 ounces of gold.
• Cash Cost: Average cash cost of $475 per ounce during Phase I and $893 per ounce during Phase II
• Mine Life: 7.1 years
• Payback Period: 1.8 years (after-tax)

Summary of PEA Results

	Project		Corporate After-Tax		Units
Free Cash Flow	170.2		134.3		MUS$
NPV 8%	94.9		69.0		MUS$
IRR	28.4		23.5		%
Payback Period 1*	1.6		1.8		years
1 Does not include ramp-up period

*Cautionary Statement NI 43-101: The PEA was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Readers are cautioned that the PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.