Mr. John McCluskey reports

ALAMOS GOLD REPORTS FOURTH QUARTER AND YEAR-END 2023 RESULTS

Alamos Gold Inc. has released its financial results for the quarter and year ended Dec. 31, 2023. All amounts are in U.S. dollars unless otherwise stated.

"With the strong finish to the year, we delivered a record operational and financial performance in 2023. Production increased 15 per cent to a record 529,300 ounces, achieving the top end of our increased full-year guidance. Costs were also in line with annual guidance and decreased 4 per cent from 2022, reflecting strong performances across our operations. With the record production, lower costs and higher gold price, we set a number of financial records in 2023. Revenue increased 25 per cent to a record $1-billion, and cash flow from operations increased 44 per cent to a record $519-million. We also generated $124-million of free cash flow while reinvesting in growth that will support higher levels of free cash flow in the years ahead," said John A. McCluskey, president and chief executive officer.

"This reinvestment in high-return growth continues to create long-term value. Global mineral reserves increased for the fifth consecutive year with grades also increasing driven by another year of exploration success. This included higher-grade additions at Island Gold and PDA, supporting longer life, and more valuable assets. The growth at PDA will be incorporated into a development plan to be completed later this quarter that we expect will outline a significant mine life extension at Mulatos. The phase 3-plus expansion at Island Gold continues to advance, having achieved a significant milestone with the start of shaft sinking in December. The expansion remains on track to deliver significant production growth at substantially lower costs in 2026 and beyond."

Fourth quarter and full-year 2023 highlights

Operational and financial highlights:

• Produced a record 529,300 ounces of gold in 2023, achieving the top end of increased production guidance and representing a 15-per-cent increase from 2022; this included a strong finish to the year from all three operations with fourth quarter production of 129,500 ounces;
• The Mulatos district exceeded guidance, producing 212,800 ounces in 2023, a 58-per-cent increase from the prior year, reflecting a strong performance from La Yaqui Grande in its first full year of production; the higher-margin ounces from La Yaqui Grande drove a significant increase in mine-site free cash flow to $142.1-million, including $27.4-million in the fourth quarter;
• Young-Davidson produced 185,100 ounces in 2023, meeting guidance and generating record mine-site free cash flow of $117.6-million; this marked the third consecutive year mine-site free cash flow has exceeded $100-million, demonstrating the strong continuing performance and consistency of the operation, including $35.0-million in the fourth quarter;
• Island Gold produced 131,400 ounces in 2023, meeting guidance and continuing to self-finance the majority of $178.1-million of growth capital invested in the phase 3-plus expansion during the year;
• Total cash costs of $850 per ounce, all-in sustaining costs of $1,160 per ounce and cost of sales of $1,212 per ounce for the full year were in line with guidance; fourth quarter total cash costs of $900 per ounce and AISC of $1,233 per ounce were consistent with quarterly guidance;
• Record financial performance with full-year gold sales totalling 526,258 ounces at an average realized price of $1,944 per ounce for record revenue of $1.0-billion, a 25-per-cent increase from 2022; this included fourth quarter sales of 129,005 ounces at an average realized price of $1,974 per ounce, generating $254.6-million in revenue; the average realized gold price was $3 per ounce above the London PM fix for both the quarter and the year;
• Record annual cash flow from operating activities of $472.7-million (including $518.9-million, or $1.31 per share, before changes in working capital), a 58-per-cent increase from 2022; fourth quarter cash flow from operating activities was $124.1-million ($120.2-million, or 30 cents per share, before changes in working capital);
• Strong free cash flow of $123.8-million in 2023 while financing the phase 3-plus expansion at Island Gold;
• Realized adjusted net earnings of $208.4-million, or 53 cents per share, in 2023; reported net earnings were $210.0-million, or 53 cents per share;
• Realized adjusted net earnings for the fourth quarter of $49.2-million, or 12 cents per share; adjusted net earnings include adjustments for net unrealized foreign exchange gains recorded within deferred taxes and foreign exchange of $12.6-million, offset by other adjustments, net of taxes totalling $14.7-million; reported net earnings were $47.1-million, or 12 cents per share;
• Cash and cash equivalents increased $95.0-million, or 73 per cent, to $224.8-million at year-end, with no debt and $13.0-million in equity securities;
• Paid dividends of $39.4-million, or 10 cents per share, for the full year.

Growth projects, mineral reserves and resources, and other highlights:

• Issued three-year guidance on Jan. 10, 2024, which included increased production guidance for 2024 of between 485,000 and 525,000 ounces; production is expected to increase 7 per cent by 2026, with AISC decreasing 11 per cent, reflecting low-cost production growth from Island Gold with the completion of the phase 3-plus expansion;
• Reported year-end 2023 mineral reserves of 10.7 million ounces of gold, a 2-per-cent increase from 2022, with grades also increasing 1 per cent; this marked the fifth-consecutive year mineral reserves have grown for a combined increase of 10 per cent with grades also increasing 9 per cent over that time frame; additionally, measured and indicated mineral resources increased 12 per cent to 4.4 million ounces, with grades increasing 9 per cent, and inferred mineral resources increased 3 per cent to 7.3 million ounces, at 1-per-cent-higher grades;
• Advanced construction of the phase 3-plus expansion with completion of key shaft site infrastructure in 2023 including the head frame and hoist house; construction remains on schedule with shaft sinking commencing in December and engineering on the mill and paste plant well under way;
• Received approval of the updated closure plan amendment from the Ontario government in December, allowing for the start of construction on the larger mill expansion and paste plant as outlined in the phase 3-plus expansion study;
• Achieved a significant permitting milestone for the Lynn Lake project in March with a positive decision statement issued by the Department of Environment and Climate Change Canada based on the completed federal environmental impact statement, and Environment Act licences issued by the Province of Manitoba;
• Completed an updated feasibility study on the Lynn Lake project in August, outlining a larger, longer-life, low-cost operation with attractive economics and significant exploration upside; Lynn Lake is expected to produce an average of 176,000 ounces of gold per year at mine-site AISC of $699 per ounce over its initial 10 years;
• Completed the acquisition of Manitou Gold in May, adding significant exploration potential across the Michipicoten greenstone belt by more than tripling the regional land package adjacent to and along strike from Island Gold;
• Publication of Alamos's inaugural climate change report, outlining corporate governance around climate-related risks and opportunities, and issued the 2022 environmental, social and governance report, outlining the company's progress on its ESG performance;
• Announced the acquisition of Orford Mining in January, 2024, through which the company will consolidate its existing ownership of Orford shares and add the highly prospective Qiqavik gold project, located in Quebec, Canada; the company expects to issue approximately 900,000 shares for total consideration of approximately $12-million with the transaction expected to close in April, 2024.

The company's objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long term, through increasing production, expanding margins and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong continuing free cash flow while reinvesting in high-return internal growth opportunities and supporting higher returns to shareholders.

2024 outlook

The company provided three-year production and operating guidance in January, 2024, which outlined growing production at declining costs over the next three years. Refer to the company's Jan. 10, 2024, guidance press release for a summary of the key assumptions and related risks associated with the comprehensive 2024 guidance and three-year production, cost and capital outlook. Gold production in 2024 is expected to range between 485,000 and 525,000 ounces, a 3-per-cent increase from the previous three-year guidance provided in January, 2023 (based on the midpoint). Total cash costs and AISC are expected to be consistent with 2023.

The increased production guidance was driven by higher expected production from the Mulatos district through residual leaching of the Mulatos leach pad. La Yaqui Grande is expected to supply approximately 75 per cent of Mulatos district production at a similar low-cost structure as 2023. The remaining production is expected to come from residual leaching of the main Mulatos leach pad, which carries higher reported AISC, although, with the majority of these costs previously incurred, the recovery of these ounces is expected to be very profitable from a cash flow perspective.

Production is expected to be slightly higher during the first half of 2024, with the recovery of ounces through residual leaching at Mulatos expected to decline through the year. First quarter production is expected to be between 123,000 and 133,000 ounces with total cash costs and AISC above the top end of annual guidance, reflecting a larger proportion of production coming through residual leaching at Mulatos and slightly lower planned grades at Young-Davidson. Consistent with annual guidance, costs are expected to trend lower through the year, reflecting declining rates of production from residual leaching at Mulatos.

Production is expected to increase 7 per cent by 2026 to between 520,000 and 560,000 ounces, with AISC decreasing 11 per cent to between $975 and $1,075 per ounce, reflecting low-cost production growth from Island Gold with the completion of the phase 3-plus expansion. The three-year guidance excludes the higher-grade PDA project, which represents potential production upside at Mulatos as early as 2026. This upside is expected to be outlined in a development plan for PDA to be released during the first quarter of 2024. Looking beyond 2026, the Lynn Lake project is expected to support further potential growth as early as the second half of 2027.

Capital spending is expected to increase from 2023, reflecting inflation, higher capital at Island Gold and Lynn Lake, and an increased capitalized exploration budget. Capital spending on the Lynn Lake project is expected to more than double the amount spent in 2023. Spending at Lynn Lake will be focused on upgrades to site access and infrastructure, including early work on the power line upgrade, in advance of a construction decision anticipated in 2025. Additionally, a portion of the 2024 exploration program will be focused on converting mineral resources at the Burnt Timber and Linkwood satellite deposits into a smaller, higher-quality mineral reserve. A study incorporating these deposits into the Lynn Lake project is expected to be completed in the fourth quarter of 2024, and represents potential production and economic upside to the 2023 feasibility study.

Given the strong profitability of the Mulatos operation in 2023, the company expects to pay significantly higher cash tax payments in Mexico in 2024, which include the 2023 year-end tax payment due in the first quarter of approximately $40-million. Combined with an expected decrease in costs through the year, the company expects stronger free cash flow starting in the second quarter of 2024.

The global exploration budget for 2024 is $62-million, a 19-per-cent increase from $52-million spent in 2023. The increase reflects expanded budgets across all key assets following up on broad-based exploration success in 2023. Island Gold and the Mulatos district account for approximately 60 per cent of the total budget with $19-million planned for each asset. This is followed by $12-million at Young-Davidson, $9-million at Lynn Lake and $2-million at Golden Arrow.

The company's liquidity position remains strong, ending the year with $224.8-million of cash and cash equivalents, $13.0-million in investments in equity securities, and no debt, an increase from $129.8-million at the end of 2022, reflecting strong free cash flow generation throughout the year. Additionally, the company has a $500-million undrawn credit facility, providing total liquidity of $737.8-million.

Associated documents

This press release should be read in conjunction with the company s consolidated financial statements for the year ended Dec. 31, 2023, and associated management's discussion and analysis, which are available from the company's website in the investors section under reports and financials, and on SEDAR+ and EDGAR.

Reminder of fourth quarter and year-end 2023 results conference call

The company's senior management will host a conference call on Thursday, Feb. 22, 2024, at 10 a.m. ET, to discuss the fourth quarter and year-end 2023 results. Participants may join the conference call by webcast or through the following dial-in numbers.

Toronto and international:  416-340-2217

Toll-free (Canada and the United States):  800-806-5484

Participant passcode:  7181034 followed by the number sign

Webcast:  at the Alamos website

A playback will be available until March 24, 2024, by dialling 905-694-9451 or 800-408-3053 within Canada and the United States. The passcode is 7488420 followed by the number sign. The webcast will be archived at the Alamos website.

Qualified person

Chris Bostwick, FAusIMM, Alamos senior vice-president, technical services, who is a qualified person within the meaning of National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.

About Alamos Gold Inc.

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in Northern Ontario, Canada, and the Mulatos mine in Sonora state, Mexico. Additionally, the company has a strong portfolio of growth projects, including the phase 3-plus expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 1,900 people and is committed to the highest standards of sustainable development. The company's shares are traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol AGI.

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