Minera Alamos Closes C$15.0 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO and VANCOUVER, British Columbia, Sept. 03, 2020 (GLOBE NEWSWIRE) -- Minera Alamos Inc. (“Minera Alamos” or the “Company”) (TSX V:MAI) is pleased to announce the closing today of its previously announced "bought deal" private placement, through National Bank Financial (the “Underwriter”), as sole underwriter, issuing an aggregate of 23,810,000 common shares (the "Common Shares") of the Company at a price of C$0.63 per Common Share for aggregate gross proceeds of approximately $15.0 million (the "Offering"), which included the sale of 3,175,000 Common Shares pursuant to the exercise of an option granted to the Underwriter.

The Company intends to use the net proceeds of the Offering to advance construction of its 100%-owned Santana gold development project located in Sonora, Mexico; further exploration activities at its other 100% owned development projects located in Mexico, and; general corporate purposes.

“We are pleased to welcome as shareholders a number of new institutional investors who participated in this fully-sold, upsized Offering. The financing has provided working capital that will allow Minera Alamos to not only complete its ongoing construction of the Santana gold mine, but also aggressively advance the newly acquired Cerro de Oro gold project in Zacatecas,” stated Doug Ramshaw, President.

As consideration for their services in connection with the Offering, the Underwriter, its affiliates and selling group members received a cash commission equal to 6% of the gross proceeds from the sale of Common Shares, and 714,300 broker warrants, with each broker warrant exercisable to acquire one Common Share at an exercise price of C$0.63 until September 3, 2021.

The securities issued pursuant to the Offering are subject to a four month hold period expiring January 4, 2021, in accordance with applicable securities laws in Canada.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.