Mr. Duncan Middlemiss reports

WESDOME GOLD MINES ANNOUNCES THIRD QUARTER FINANCIAL RESULTS

Wesdome Gold Mines Ltd. has released financial results for the third quarter of 2016. All figures are stated in Canadian dollars unless otherwise noted.

2016 third quarter highlights

Eagle River complex

• Production of 15,667 ounces, a 29-per-cent improvement over the second quarter of 2016 (12,147 ounces); the company is on track to meet its 2016 revised guidance of 45,000 ounces to 50,000 ounces with 36,000 ounces produced in the first three quarters;
• Eagle River underground mine head grades of 10.1 grams per tonne improved by 35 per cent (7.5 grams per tonne in the second quarter of 2016);
• Revenue of $27.5-million, a 49-per-cent increase over the 2016 second quarter figure of $18.4-million;
• Operating cash flow of $12.9-million, a 163-per-cent increase over the 2016 second quarter figure of $4.9-million;
• Net income of $6.9-million, or five cents per share, a 283-per-cent improvement over the 2016 second quarter figure of $1.8-million, or one cent per share;
• Free cash flow of $4.6-million, or four cents per share, compared with negative $2.1-million, or negative two cents per share, in the second quarter of 2016;
• Cash costs per ounce decreased 23 per cent to $911 per ounce ($698 (U.S.)) ($1,188 ($922 (U.S.) per ounce in the second quarter of 2016);
• All-in sustaining costs per ounce decreased 19 per cent to $1,359 per ounce ($1,042 (U.S.)) ($1,687 ($1,309 (U.S.) in the second quarter of 2016);
• Cash and cash equivalents of $29-million;
• Previously released Eagle River surface drilling highlights (between surface and 400-metre depth) of north mine diorite confirm structure and return promising results:
  • ERM-2016-10: 14.56 grams per tonne over two metres;
  • ERM-2016-20: 33.92 grams per tonne over 2.1 metres;
  • ERM-2016-27: 32.39 grams per tonne over 4.8 metres;
• Mishi surface drilling discovers new zone 1.7 kilometres west of open-pit mining operations:
  • BC16-80: 4.28 grams per tonne over 14 metres;
  • Including 7.65 grams per tonne over 5.8 metres.

Kiena complex, Val d'Or, Que.

• New high-grade gold discovery, Kiena Deep, in Val d'Or, Que., at permitted mine on care and maintenance, with a 2,000-tonne-per-day mill on the property;
• Previously released drilling results include:
  • U-6124: 94.35 grams per tonne over 17.4 metres;
  • U-6125: 192.95 grams per tonne over 16.95 metres and 238.81 grams per tonne over five metres;
  • U-6130: 8.43 g/grams per tonne over 8.2 metres;
• Three drills currently operating, with a fourth to be added; drill conditions are challenging and, as a result, drilling is slower than expected; results will be released as soon as they become available.

Moss Lake/Coldstream

• Exploration program at Moss Lake and Coldstream properties to commence in the fourth quarter, with the goal of demonstrating potential to double resources.

Duncan Middlemiss, president and chief executive officer, commented: "This quarter is Wesdome's best financial performance since [the fourth quarter of] 2013. We generated $4.6-million in free cash flow, which we believe is demonstrative of what the Eagle River operations are capable of in a high-grade mining cycle. Extensive exploration programs on three separate assets are being internally funded while building cash on the balance sheet. Operational improvements at the Eagle River complex are yielding positive results, with head grades at both the underground and open-pit mines increasing and stabilizing. In Quebec, the Kiena Deep discovery has resulted in a renewed focus on this asset. We have added additional drills to expedite exploration drilling. The Kiena complex has been on care and maintenance since 2013, allowing us to drill from underground where mine workings are dry and in good condition."

A conference call to discuss these results will be held on Nov. 3, 2016, at 3 p.m. ET. Participants are invited to join using the following details.

North American toll-free dial-in number:  1-888-789-9572

Local and international dial-in number:   416-695-7806

Passcode:   5032963

A replay of the call will be available on the company's website until Nov. 10, 2016.

Replay

North American toll-free dial-in number  : 1-800-408-3053

Local and international dial-in number:   905-694-9451

Passcode:   8782747

                                FINANCIAL RESULTS 
               (in thousands of dollars, except per-share amounts)
                                                                          Nine months
                                                                       ended Sept. 30,
                                      Q3 2016   Q2 2016   Q3 2015      2016      2015

Revenue**                            $ 30,134  $ 18,447  $ 18,199  $ 61,865  $ 49,843
Mine operating profit*                 12,915     4,493     5,253    16,303     9,913
Net income (loss)                       6,897     1,837    (4,294)    5,434    (5,811)
Net income adjusted*                    7,386       409     1,575     4,941     1,209
Basic net income (loss) per share        0.05      0.01     (0.04)     0.04     (0.05)
Basic net income (loss) 
per share adjusted*                      0.06      0.00      0.01      0.06      0.01
Cash flows from operating
activities                             12,852     4,885     3,333    14,951     4,902
Cash flows from operating
activities adjusted*                   13,341     3,457     4,268    14,458     6,988
Free cash flow*                         4,635    (2,147)     (626)   (4,702)   (8,455)
Cash and cash equivalents              28,991    26,802     3,705    28,991     3,705
Working capital                        19,185    16,598     2,977    19,185     2,977 

                                 OPERATIONAL RESULTS
                                                                          Nine months
                                                                       ended Sept. 30,
                                      Q3 2016   Q2 2016   Q3 2015      2016      2015

Eagle River tonnes milled              42,617    45,305    44,849   127,761   131,004
Mishi tonnes milled                    37,660    33,546    43,336   107,493    98,937
Total tonnes milled                    80,277    78,851    88,185   235,254   229,941
Eagle River head grade (g/t)             10.1       7.5       7.7       7.8       7.3
Mishi head grade (g/t)                    2.3       2.1       3.0       2.1       2.7
Eagle River underground 
mill recovery (%)                        95.6      93.4      96.1      93.1      95.1
Mishi open-pit mill recovery (%)         87.7      85.6      88.2      86.3      88.9
Eagle recovered grade (g/t)               9.6       7.0       7.4       7.2       7.0
Mishi recovered grade (g/t)               2.0       1.8       2.6       1.8       2.4
Eagle ounces produced                  13,193    10,210    10,637    29,657    29,388
Mishi ounces produced                   2,474     1,937     3,647     6,193     7,512
Total ounces produced                  15,667    12,147    14,284    35,850    36,900
Ounces sold                            15,825    11,265    12,408    35,190    33,781
Average realized price(CAD$/oz)      $  1,740  $  1,637  $  1,467  $  1,684  $  1,475
Average realized price (US$/oz)         1,334     1,271     1,121     1,274     1,173
Production cash costs (CAD$/oz)*          911     1,188       994     1,197     1,147
Production cash costs (US$/oz)            698       922       760       905       912
All-in-sustaining costs (CAD$/oz)*      1,359     1,687     1,368     1,710     1,599
All-in-sustaining costs (US$/oz)*       1,042     1,309     1,045     1,294     1,271

* Refer to the section titled "non-IFRS performance measures" in the 2016 
third quarter management's discussion and analysis for the reconciliation 
of these non-IFRS measurements to the financial statements.
** Revenue includes $2.6-million from sale of gold from Kiena mill cleanup.

The contents of this press release have been verified and approved by the company's chief operating officer, Philip Ng, PEng, a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Wesdome Gold Mines

Wesdome Gold Mines is in its 29th year of continuous gold mining operations in Canada. The company is currently producing gold at the Eagle River complex, located near Wawa, Ont., from the Eagle River and Mishi gold mines. Wesdome has significant upside through ownership of its two other properties, the Kiena mine complex in Val d'Or, Que., and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ont.

We seek Safe Harbor.