Dr. Morgan Poliquin reports

ALMADEN ENTERS INTO MILL PURCHASE OPTION AGREEMENT; SIGNIFICANTLY REDUCES CAPITAL COST OF IXTACA "RAMP-UP" SCENARIO

Almaden Minerals Ltd. has entered into an option agreement entitling it to purchase assets, which, when taken together, constitute the Rock Creek mill. The Rock Creek mill is located just outside of Nome, Alaska. The mill was built to process 7,000 tonnes per day and includes a three-stage crushing plant, gravity circuit, ball mill, flotation cells and leaching facilities. Also included in the assets are conveyors, metallurgical and chemical fire assay laboratories, a water treatment plant, full electrical circuitry (including generators), and a number of spare parts for the ball mill and crushers. The Rock Creek mill only operated for several months before the mining operation was curtailed in 2008 and has been kept in excellent condition during subsequent care and maintenance.

Highlights of the transaction are as follows:

• Secures option to purchase 7,000-tonne-per-day mill for $6.5-million (U.S.), exercisable over three years with low front-end option payments totalling $500,000 (U.S.) for 2015 and $250,000 (U.S.) in 2016; Almaden has also agreed to issue, subject to regulatory approval, including Toronto Stock Exchange approval, 407,997 common shares;
• Reduces the initial capital cost estimate of a ramp-up scenario for Ixtaca by approximately $70-million (U.S.), from $244-million (U.S.) to $174-million (U.S.);
• Enhances project economics and financing alternatives for Ixtaca.

Morgan Poliquin, president and chief executive officer of Almaden, commented: "This is a significant transaction for Almaden. This mill is very well suited to the flow sheet we envisage at our Ixtaca project in Mexico and represents the same throughput as we outlined in our ramp-up scenario in our PEA [preliminary economic assessment] update announced in September, 2014. Furthermore, we can acquire this infrastructure for substantially less than the cost estimated for brand new equipment in that PEA update. For several years, we have been dealing with very challenging market conditions for mineral exploration and development as metal prices have fallen along with sentiment. At Almaden, we have a long-term view and look for the opportunities that such markets bring. We are very excited by the opportunities that this transaction could provide."

Pursuant to the agreement, Almaden has the exclusive right and option to purchase the assets for a total of $6.5-million (U.S.), subject to adjustment in certain circumstances. Almaden has also agreed to issue 407,997 of its common shares upon receipt of regulatory approval to the share issuance. In order to exercise the option, Almaden must make the following option payments according to the following schedule:

• On execution of agreement -- $250,000 (U.S.);
• On or before Dec. 31, 2015 -- $250,000 (U.S.);
• On or before March 31, 2016 -- $250,000 (U.S.);
• On or before June 15, 2017 -- $2-million (U.S.);
• On or before June 15, 2018 -- $3.75-million (U.S.).

Impact on economics of ramp-up scenario

The ramp-up scenario is described in Almaden's September, 2014, preliminary economic assessment update technical report, which has been filed on SEDAR and was first announced on Sept. 3, 2014. Unlike the base-case scenario, which contemplated production at a mill throughput of 30,000 tonnes per day, the ramp-up scenario starts with a smaller 7,000-tonne-per-day mill and ramps up to 30,000 tonnes per day by year 6, thereby reducing the upfront capital requirements. Moose Mountain Technical Services, which co-authored the preliminary economic assessment update announced in September, 2014, with Knight Piesold, has estimated that this transaction will reduce the initial capital of the ramp-up scenario by approximately $70-million (U.S.), from $244-million (U.S.) to $174-million (U.S.). Key elements of the base-case and ramp-up scenarios, as previously reported, are as shown in the attached table.

                                PEA UPDATE RESULTS 
           ($1,320 (U.S.) per ounce gold, $21 (U.S.) per ounce silver)    
          
                                                            Base case          Ramp-up case

Pretax NPV (5%)                           $ millions              842                   699
Pretax IRR                                         %             37.2                  28.9
After-tax NPV (5%)                        $ millions              515                   427
After-tax IRR                                      %             28.3                  23.2
Payback period (after tax)(1)                  Years              2.5                   4.5
Mine life                                      Years               12                    15
Production rate                       tonnes per day           30,000    7,000 and 30,000(1)
Strip ratio                                waste:ore           1.74:1                1.80:1
Average production -- gold           ounces per year          130,000               103,000
Average production -- silver         ounces per year        7,788,000             6,148,000
Initial capital                           $ millions              399                   244
Sustaining capital                        $ millions              110                   111
Expansion capital                         $ millions                0                   116
Cash production costs            $ per AuEq(2) ounce             $595                  $638
             
(1) Cash flows, net present value (NPV) and internal rate of return (IRR) numbers in 
    the ramp-up case reflect the larger mill expansion capital being financed 
    internally from production revenue. Payback is calculated without including the 
    mill expansion capital in order for a relative understanding of the timing 
    of revenue streams.
(2) Gold equivalent (AuEq) uses a ratio of 62:1 for silver:gold (based on $1,320 
    per ounce gold and $21 per ounce silver).
(3) The table is based on results disclosed in the preliminary economic assessment
    update announced on Sept. 3, 2014.                                                             

The September, 2014, preliminary economic assessment update also examined the sensitivity of the project to lower precious metals prices and found that, at $1,200 (U.S.) per ounce gold and $18 (U.S.) per ounce silver, the ramp-up scenario generated an after-tax net present value (5 per cent) of $246-million (U.S.) and an after-tax internal rate of return of 17 per cent.

A summary of anticipated changes to the initial capital costs of the ramp-up scenario is provided in the attached table.

                    PROJECTED START-UP CAPITAL COSTS 
                      (in millions of U.S. dollars)

                                                 September,     
                                                 2014, PEA       Updated  
                                                   ramp-up       ramp-up   

Site infrastructure                                  $19.4         $19.4    
Tailings management facility
and water management                                 $29.0         $29.0    
Prestripping                                         $37.8         $37.8    
Mining equipment                                      $7.7          $7.7    
Process plant                                       $105.5         $46.0    
Indirects, engineering, procurement 
and construction management, 
contingency, and owner costs                         $44.1         $34.4    
Total                                               $243.5*       $174.3*   

*Numbers may not add due to rounding                                                                                                                  

Almaden's September, 2014, preliminary economic assessment update report included a sensitivity analysis on the effects of changes in capital costs on the net present value and internal rate of return of the ramp-up scenario. It was determined that a 20-per-cent decrease in initial capital of the ramp-up cost alternative increased the pretax internal rate of return to 34 per cent (from 29 per cent) using base-case metal prices of $1,320 (U.S.) per ounce gold and $21 (U.S.) per ounce silver.

As shown in the attached table, acquisition of the mill upon exercise of the option reduces the initial capital of the ramp-up scenario by 29 per cent. Almaden intends to incorporate the Rock Creek mill into its prefeasibility work, which is continuing and which will provide more detail relating to the impact such acquisition will have on the net present value and internal rate of return of the ramp-up scenario.

J. Duane Poliquin, chairman of Almaden, commented: "Securing this exclusive option further demonstrates Almaden's commitment to shareholder value by pursuing creative opportunities to enhance the economics of our asset base. The Rock Creek mill establishes the ramp-up scenario as the alternative of primary focus as we move towards prefeasibility."

It should be noted that the preliminary economic assessment and preliminary economic assessment update are preliminary in nature as they include inferred mineral resources, which are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment or preliminary economic assessment update forecasts will be realized or that any of the resources will ever be upgraded to reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Background to the Rock Creek mill

The Rock Creek mill formed part of the Rock Creek mine, which commenced construction in the summer of 2006. Commissioning start-up and systems testing at the mine began in September, 2008, but these activities were suspended in November, 2008. Since that time, the mill has been on care and maintenance and remains in excellent condition at the mine site.

Major items comprised in the assets include:

• Primary jaw crusher and secondary and tertiary cone crushers;
• Various sizing screens and fine-ore stacking conveyer;
• Ball mill feed conveyer;
• Semi-batch gravity concentrator;
• 18.4-foot-by-25.63-foot wet grinding overflow ball mill with dual 2,000-kilowatt drives and liners;
• Four Falcon C4000 continuous gravity concentrators;
• CIL (carbon-in-leach) tanks agitator (including impellers) and discharge pumps;
• Tailings thickening circuit;
• Gold room, including electrolytic cell, carbon reactivation kiln and gold-melting furnace;
• Fully equipped laboratory;
• Water treatment plant, including Pall Aria ultrawater filter and Mitsubishi ozone generation system;
• Various pumps, hoists, motors and spare parts required for mill operation.

A more detailed list of some of the items comprising the assets, as well as recent pictures, will be posted on Almaden's website. Tracey Meintjes, PEng, of Moose Mountain Technical Services, a qualified person under the meaning of National Instrument 43-101, has reviewed and approved the technical information in this news release.

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