Mr. Chris Frostad reports

MINERA ALAMOS INC. COMPLETES PLANT OPTIMIZATION AND SITE SELECTION

Minera Alamos Inc.'s engineering team has now completed the redesign and optimization of plans for the production plant at its 100-per-cent-owned Los Verdes project in Sonora, Mexico. The team has also provided new recommendations for the location of that plant. Minera Alamos is now working with these new specifications to source both new and used equipment appropriate for the project.

"Our focus is on creating the most cost-effective operation possible while at the same time remaining scalable to allow for future expansion opportunities," said Darren Koningen, president, Minera Alamos. "The newly optimized plant design and location will provide even further reductions in both our capital costs and our ongoing operational cost."

Highlights

• With reference to the recovery methods detailed in the company's 2012 preliminary economic assessment, a new simplified design has been completed, optimized for the smaller scale operation.
• Scaled down project flows have been created allowing for the removal of certain stages and the further reduction of required capital expenditures.
• The company has identified a more appropriate location for the plant that provides improved access to infrastructure (for example, power) and direct access to the highway for the transportation of material in and out of the operation.

About Los Verdes

Recent work by Minera Alamos has identified the potential for a phased approach at the Los Verdes project. An initial small-scale production operation would be followed by an expansion toward the full project scope. Internal estimates currently target project construction to be initiated in 2016.

The Los Verdes project comprises 18 concessions covering 7,760 hectares located in Sonora, Mexico, approximately 200 kilometres east-southeast of the capital city of Hermosillo. This high-grade, open pit copper-molybdenum project was the subject of a preliminary feasibility study issued by the company in 2008. That report was updated and reissued as a preliminary economic assessment in 2012.

Utilizing only the project's South deposit, the most recent report was based on a resource estimate that contained a total resource (measured plus indicated) of 7.7 million tonnes -- 0.64 per cent copper, 0.12 per cent molybdenum, 0.07 per cent tungsten and 4.75 grams per tonne silver. At a mine production rate of 3,000 tonnes per day and an initial capital cost of $92-million, the project demonstrated pretax net cash flows of $163-million and an internal rate of return of 34 per cent (see company's press release dated Jan. 10, 2012).

In 2011, Minera Alamos acquired the North deposit area (previously known as Potreritos) which is located approximately two kilometres north of the Los Verdes property limits. Historic estimates for the North deposit include 1.4 million tonnes of indicated resources (0.47 per cent copper/0.12 per cent molybdenum) and 800,000 tonnes of inferred resources (0.22 per cent Cu/0.033 per cent Mo) (see company's press release dated Oct. 27, 2011).

Darren Koningen, PEng, Minera Alamos's president, is the qualified person responsible for technical content of this release under National Instrument 43-101. Mr. Koningen has supervised the preparation of, and approved the scientific and technical disclosures utilized in, this news release.