Mr. Darren Koningen reports

MINERA ALAMOS INC. ADVANCES LA FORTUNA WITH THE ACQUISITION OF MINERAL PROCESSING PLANT

Minera Alamos Inc. has acquired the assets of a previously operational grinding/flotation facility to be utilized in the construction of its La Fortuna gold project in Durango, Mexico.

"The opportunity to acquire and fully pay for this facility, at a significant discount, marks substantial progress in the development of the La Fortuna project," said Darren Koningen, president of Minera Alamos. "The company continues to evaluate metallurgical alternatives that would allow us to increase gold production from the project resource by up to 50 per cent based on what would be expected under the heap leaching models considered by previous owners. We continue to aggressively take advantage of the rare opportunities current markets are providing."

The company is finalizing the optimal configuration of the components for inclusion in the La Fortuna prefeasibility report due later this year. A construction decision is pending the completion of a formal economic assessment by management.

Highlights

• Acquisition of core plant assets significantly reduces the capital requirements for the construction of a high-gold-recovery processing alternative at the La Fortuna project;
• Under the new approach being considered, the company anticipates an approximate 50-per-cent increase in production rates at the same mining rate (see press release dated June 14, 2016);
• Provides the opportunity to reduce the project construction schedule and significantly enhance overall project economics to be detailed in the company's prefeasibility report due later this year;
• New mill equipment is extremely well suited for the flowsheets being considered and provides sufficient capacity for future production expansion at the site as other historic areas of known mineralization are also developed into resources;
• Surplus equipment assets not under consideration for La Fortuna may be appropriate for use at the company's Los Verdes copper project in Sonora, Mexico.

The acquired assets include three grinding mills and motors, flotation and thickener mechanisms, a filter press and a significant inventory of pumps and motors. Also included is a complete package of electrical starters as well as spares, maintenance equipment and other related items. The mill was built originally to process in excess of 2,000 tonnes per day and had been disassembled and packaged for transport by the previous owner. All items have been well maintained and remain in storage in Canada, ready for shipment to Mexico later in the year for refurbishment and upgrades. The entire package was purchased for a significant discount at a total cost of $750,000.

We seek Safe Harbor.