Mr. John McCluskey reports

ALAMOS ACHIEVES 2013 PRODUCTION GUIDANCE AND OUTLINES 2014 PLANS

Alamos Gold Inc. has released its fourth quarter and annual 2013 production, achieving both its production and cost guidance for the year. The company also provided 2014 production and operating guidance along with its global exploration and development budgets. All amounts are in United States dollars, unless otherwise stated.

Fourth quarter and full-year 2013 operating results

Gold production

"We had yet another strong year at Mulatos, achieving the mid-range of our production guidance, with costs expected to come in at the low end of our guidance. We produced 190,000 ounces of gold in 2014 and sold a record 198,200 ounces at a total cash cost per ounce of approximately $500. Despite realizing lower than expected grades from the Escondida high-grade deposit as production from that zone winds down, our open-pit heap leach production, the driver of our Mulatos mine, continued to perform extremely well. Two thousand thirteen was a challenging year with the sharp decrease in the gold price, yet with our low cost structure we continued to generate strong cash flow. With approximately $410-million in cash, no debt and a peer-leading, fully funded growth profile, we remain exceptionally well positioned in the industry," said John A. McCluskey, president and chief executive officer.

In the fourth quarter of 2013, the Mulatos mine produced 39,000 ounces of gold, bringing full-year production to 190,000 ounces, the midpoint of the company's guidance. Total cash costs for full year 2013 have not been finalized, but are expected to be at the low end of guidance at approximately $500 per ounce of gold sold.

Total crusher throughput in the fourth quarter of 2013 averaged near-record levels of 17,900 tonnes per day (tpd), above the annual budgeted rate of 17,500 tpd. For 2013, crusher throughput averaged 17,900 tpd, up 12 per cent from 16,000 tpd in 2012. During the fourth quarter of 2013, mill throughput exceeded budgeted levels at 550 tpd.

The grade of the crushed ore stacked on the leach pad in the fourth quarter of 2013 was 0.96 gram per tonne of gold (g/t Au). For the full year 2013, the grade of crushed ore stacked on the leach pad was 1.07 g/t Au, above the full-year budgeted grade of 0.98 g/t Au. The grade of the Escondida high-grade zone mined and milled in the fourth quarter of 2013 was 3.46 g/t Au, below the company's full-year budgeted average grade of 11 g/t Au. For the 2013 year, the grade mined and milled from the Escondida high-grade zone was approximately 6.84 g/t Au.

The company expects to have depleted the Escondida high-grade zone by the end of the first quarter of 2014, at which point the Escondida Deep zone is expected to provide additional feed to continue mill production to the end of the second quarter of 2014. The company intends to transition to processing high-grade from the San Carlos zone once the Escondida Deep zone has been depleted.

The recovery ratio in the fourth quarter was 71 per cent and averaged 73 per cent for 2013. This was slightly below the company's annual budget of 75 per cent though was an improvement from 70 per cent achieved in 2012.

Key operational metrics and production statistics for the fourth quarter and full year 2013 compared with the corresponding periods of 2012 are presented in the associated table.

Gold sales

Alamos sold 42,200 ounces of gold in the fourth quarter of 2013 for quarterly revenues of $53.8-million, a 50-per-cent decrease from revenues of $106.9-million in the same period of 2012 reflecting a lower realized gold price and fewer ounces sold. For 2013, the company sold a record 198,200 ounces of gold at a realized price of $1,424 per ounce, beating the average London PM fix price by $13 per ounce. Annual revenues of $282.2-million were 14 per cent lower than revenues of $329.4-million in 2012 reflecting the decrease in the gold price during 2013. Gold sales were higher than production in 2013 reflecting a drawdown of in-process inventory prior to the Mexican tax reform becoming effective on Jan. 1, 2014.

2014 guidance

The company anticipates producing between 150,000 and 170,000 ounces of gold in 2014 at cash operating costs of $630 to $670 per ounce of gold sold, excluding royalties. Including royalties (5 per cent plus 0.5 per cent), and assuming a $1,250 gold price, total cash costs are expected to be between $700 and $740 per ounce of gold sold. All-in sustaining costs are expected to be between $960 and $1,000 per ounce of gold sold.

     ALAMOS'S 2014 PRODUCTION FORECAST AND OPERATING COST ESTIMATES

                                                               2014 guidance

Gold production (ounces)                                  150,000 -- 170,000
Cash operating cost per ounce                                   $630 -- $670
Total cash cost per ounce                                       $700 -- $740
All-in sustaining cost per ounce                              $960 -- $1,000

The 2014 production forecast and operating cost estimates are based on the following assumptions:

• Combined gold recovery of 75 per cent (heap leach ore, 73-per-cent recovery; mill ore, 80-per-cent ultimate recovery);
• Throughput: 17,700 tpd (includes an average 700 tpd from the gravity mill ramped up through the year);
• Average grade: heap leach ore 0.85 g/t Au; mill ore 5.3 g/t Au;
• Waste-to-ore ratio of 0.84:1;
• Mexican peso:United States dollar foreign exchange rate of 13:1.

The company expects these parameters to fluctuate during 2014. Accordingly, they should be treated as full-year average estimates that will not necessarily reflect quarterly operating results.

The lower gold production planned for 2014 relative to 2013 is primarily attributable to the lower budgeted grade for the mill feed of 5.3 g/t Au in 2014 due to the transition to Escondida Deep and San Carlos in 2014, as well as a lower budgeted grade stacked on the leach pad of 0.85 g/t Au in 2014 compared with 1.07 g/t Au in 2013. The company expects to transition to underground mining at Escondida Deep in the second quarter and then to San Carlos in the second half of 2014. With the transition to San Carlos, the company expects to increase mill throughput rates to an average of 700 tpd in 2014 to help offset the decrease in grade. Underground throughput rates at San Carlos are expected to gradually ramp up to the expanded mill capacity through the second half of 2014.

The higher cash operating cost guidance for 2014 compared with 2013 is attributable to four factors: the transition to higher-cost underground mining to supply high-grade ore to the mill; a lower budgeted grade for the mill feed of 5.3 g/t Au in 2014; a higher waste-to-ore ratio; and the transition to contractor mining at Mulatos.

The company has made the decision to transition to contract mining effective the start of 2014 and was successful in negotiating unit mining rates competitive with its owner mining rates. This, combined with the tax savings associated with the Mexican tax reform becoming effective Jan. 1, 2014, supported the decision to transition to contract mining. Contract mining will shift sustaining capital spending required to maintain an owner-operated mining fleet into operating expenses, lowering the amount of tax payable under the new 7.5-per-cent special mining tax calculated based on earnings before interest, taxes, depreciation and amortization. This reduction in sustaining capital spending will also allow the company's all-in sustaining costs to remain among the lowest in the industry.

The company has a standing relationship with the mining contractor selected, with the contractor having been on-site since 2010. The contractor completed the waste removal activities of the Escondida open pit from 2010 to early 2012, and remained on-site for incremental support, mining approximately 20 per cent of open-pit material in 2012 and 2013. As a result, the company expects a seamless transition to contract mining, and expects to maintain its high productivity standards.

Looking beyond 2014, the company expects development of the Cerro Pelon and La Yaqui satellite deposits will bring on additional low-cost production which will help drive annual production and operating costs closer to the levels achieved over the past two years. Both deposits are higher grade than Mulatos and are expected to be developed with independent heap leach pads to ensure production is not displaced from the main Mulatos heap leach pad.

"We have demonstrated numerous productivity improvements over the years at Mulatos including achieving record crusher throughput in 2013. Our dedication to optimizing every aspect of our operation will continue as we transition underground at Escondida and San Carlos. With the recent additions to our team we have significantly strengthened our underground expertise and look forward to accessing additional high-grade targets that could not be fully drill defined from surface. Our focus in the second half of 2014 will be on ramping up underground throughput rates while continuing to operate in accordance with our sustainable development commitments including those relating to health and safety," said Manley Guarducci, vice-president and chief operating officer.

2014 Mexico operating and development budget

The 2014 Mulatos and Esperanza capital and development budget is $54.8-million and includes the key items shown in the associated table.

                                  KEY ITEMS
                                (In millions) 
Mexico                                                           2014 budget 

San Carlos open-pit and underground development                        $18.3
Escondida Deep underground development                                  $3.1
Underground definition drilling                                         $4.8
Other development                                                       $4.1
Esperanza development                                                  $11.3
Total development                                                      $41.6
Component changes                                                       $3.8
Leach pad expansion                                                     $3.7
Other sustaining capital                                                $5.7
Total operating                                                        $13.2
Total operating and development capital                                $54.8

Mulatos

Development spending at Mulatos in 2014 will be focused on underground development of the San Carlos and Escondida Deep areas, in order to access high-grade ore to provide gravity mill feed. This includes an $18.3-million budget at San Carlos comprising $9-million in underground development, $5.8-million to complete the prestrip of the open-pit portion of the deposit, and $3.5-million for construction of the bridge across the San Carlos river. In addition, approximately $3.1-million will be invested to complete underground development of Escondida Deep.

Operating capital in 2013 includes $3.8-million for component changes and $3.7-million for leach pad expansion costs. Total operating capital of $13.2-million is a decrease from 2013, mainly driven by the change to contract mining.

Esperanza

Development spending at Esperanza in 2014 of approximately $11.3-million (which includes $2.8-million of exploration spending) will be focused on baseline work required for the resubmission of an EIA report and an internal feasibility study to further support development of the project.

2014 Mexico exploration budget

Mulatos

Exploration spending at Mulatos in 2014 is expected to be $8.5-million, of which approximately 33 per cent will be expensed.

The company plans a minimum of 56,100 metres of reverse circulation (RC), directional drilling, core and underground core drilling at Mulatos in 2014, focusing on the following targets:

• San Carlos Northeast -- 16,100 m;
• East Estrella -- 5,000 m;
• El Realito -- 5,000 m;
• Mulatos mine area (open pit) -- 15,000 m;
• Mulatos mine area (underground) -- 15,000 m.

Esperanza

Exploration spending at Esperanza in 2014 is expected to be $2.8-million which will be largely capitalized.

Exploration activities will be focused on required work for resubmission of the environmental impact assessment for the project, which includes 7,000 m of confirmatory and condemnation drilling around the Esperanza deposit.

2014 Agi Dagi, Kirazli and Camyurt (Turkey) exploration and development budget

In Turkey, the 2014 budget is $4.8-million which includes spending associated with permitting, community and government relations and general administration only. The company continues to await receipt of the forestry and operating permits for construction of its Kirazli project. The Turkish government has not provided specific guidance as to when these might be granted. Having already received EIA approval for Kirazli, the company remains confident the forestry and operating permits will be granted. However, recent political developments in Turkey have added to the continuing lack of clarity with respect to the timing for receipt of such approvals. Accordingly, the company has deferred providing the full development budget for Kirazli and Agi Dagi until the permits have been granted. The capital budget for both projects is not expected to differ materially from the June, 2012, preliminary feasibility study. The company expects first gold production from Kirazli within 18 months of receipt of the outstanding permits.

The company expects to capitalize most costs associated with the development of its Turkish assets during 2014.

2014 Quartz Mountain (United States) exploration budget

The company's 2014 exploration budget for its Quartz Mountain property in Oregon is $7.4-million which will be expensed.

Exploration activities will be largely focused on infill, confirmatory drilling of the existing mineral resource in addition to a small regional reconnaissance program on the relatively unexplored land package around the Quartz Mountain deposit and adjacent properties.

In 2014, the company plans to complete a minimum of 16,000 m of drilling in the United States with a focus on two targets:

• Quartz Butte infill and expansion -- 8,000 m;
• Crone Hill infill and expansion -- 8,000 m.

Qualified person

The company's exploration programs are being reviewed by vice-president, exploration, Jason Dunning, MSc, PGeo, who is a qualified person within the meaning of National Instrument 43-101 of the Canadian securities regulators, and he has reviewed the contents of this news release. All fieldwork in Mexico is supervised and directed by Ken Balleweg, BSc, MSc, PGeo, Alamos's exploration manager (Mexico), a qualified person as defined by NI 43-101 of the Canadian securities administrators. Work programs in Turkey are supervised by Jason Dunning, MSc, PGeo, and directed in the field by Alamos's exploration manager (Turkey), Mehtap Ozcan. In the U.S., work programs are supervised and directed by Bruno Barde, MSc, PGeo, Alamos's regional chief geologist (U.S.), a qualified person as defined by NI 43-101 of the Canadian securities administrators.

                       PRODUCTION SUMMARY AND STATISTICS 

Production summary                     Q4 2013   Q4 2012       2013      2012

Ounces produced                         39,000    67,800    190,000   200,000
Crushed ore stacked on leach pad
(tonnes)                             1,598,600 1,590,000  6,329,000 5,646,000
Grade (g/t Au)                            0.96      1.20       1.07      1.19
Contained ounces stacked                49,300    61,200    218,500   216,000
Crushed ore milled (tonnes)             50,800    57,800    189,300   176,500
Grade (g/t Au)                            3.46     14.12       6.84     12.49
Contained ounces milled                  5,700    26,200     41,600    70,900
Recovery ratio (ratio of total
ounces produced to contained
ounces stacked and milled)                 71%       78%        73%       70%
Total ore mined (tonnes)             1,843,000 1,619,000  7,029,000 5,786,000
Waste mined (tonnes)                   784,000   822,000  3,385,000 3,360,000
Total mined (tonnes)                 2,627,000 2,441,000 10,414,000 9,146,000
Waste-to-ore ratio                        0.43      0.51       0.48      0.58
Ore crushed per day (tonnes) --
combined                                17,900    17,900     17,900    16,000

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