Richmont Announces 2016 Operational Outlook - Seite 3

development strategy at the Island Gold Mine, which will position the
operation for significant production growth and increasing free cash
flow streams beginning in 2017, as detailed in the recent PEA.

Island Gold Operational Estimates

2016 Island Gold Estimates Gold Ounces Produced
62,000-67,000
CAD$ US$ Cash costs per ounce
$900-$960 $660-$705 Sustaining Capex per ounce
$270-$290 $195-$215 AISC per ounce
$1,170-$1,250 $855-$920

- Annual production at Island Gold is expected to increase over the
prior year driven by increased underground productivity that is
expected to average approximately 800 tonnes per day in 2016.
- Increased production and enhanced operational efficiencies are
expected to underpin a decrease in cash costs and AISC over the
prior year's guidance estimates.
- During 2016, the operation will target a planned mining ratio of
approximately 60% of tonnes from stoping ore and 40% from
development ore. As a result, in 2016, unit mining costs will
remain at elevated levels of approximately $135 per tonne (approx.
$210 per tonne of total operating costs), but are expected to
decline significantly beginning in 2017 as the stoping versus
development ore ratio is expected to substantially increase. In
2016, stoping ore is expected to be mined from new resources
primarily in the second (60%) and third (20%) mining horizons, with
the remaining tonnes (20%) mined from the Lochalsh West and
Goudreau areas located in the upper area of the mine, which are not
included in the PEA deposit area. Ore development will be primarily
from the second and third horizons of the new resources between the
675 and 825 metre levels.
- Following a mill upgrade completed in October 2015, capacity of the
mill facility has been increased to 900 tonnes per day. In July
2016, an additional 3-week electrical mill upgrade is scheduled,
during which time the underground mine will continue to operate and
ore will be stockpiled for future processing. As a result, the mill
facility is expected to average 800 tonnes per day during the first
half of the year, in-line with underground productivity. Following
the completion of the mill upgrade, mill productivity is expected
to increase to accommodate processing of stockpiled ore by
utilizing the excess mill capacity. Recoveries are expected to
average 96.5% during 2016.

Island Gold Capital Investment Estimates

Sustaining Capital Investment ($M)
CAD$ US$ Capital Projects / Fixed Assets
$13.1 $9.6 Sustaining Underground Mine Development