Mr. Darren Koningen reports

MINERA ALAMOS INC. PROVIDES OPERATIONS UPDATE AND Q2 FINANCIALS

Minera Alamos Inc. has provided an operations update and select financial highlights from the second quarter of 2023 as well as some guidance regarding improved operations activity so far during Q3. For a full overview please refer to the Q2 financial statements and management's discussion and analysis filed on SEDAR+ on Aug. 29, 2023.

"As outlined earlier in 2023, the first half of the year at the Santana project saw a focus on development and infrastructure activities scheduled in advance of a planned improvement in mining operations in the second half of 2023. Since June mining and stacking operations have been increasing steadily as our mine contractor scaled up equipment and staffing levels at site," stated Darren Koningen, chief executive officer. "A prudent overall approach to mining operations has been implemented in recent quarters as the company worked its way through the end of a difficult three-year regional drought that significantly inhibited our ability to be more aggressive with production rates. We are pleased to report that more typical weather patterns appear to have re-emerged in 2023.

"The company is currently preparing for new pad construction late in the year following the end of the current rainy season which is expected to coincide with the receipt of permit amendments allowing us to facilitate a significant expansion of both mining and gold stacking operations and lead to a much more stable production outlook next year and onwards."

Q2 operational highlights:

• At the Santana gold mine, the company's mining contractor scaled up its equipment and work force during April and May following the shift from development activities earlier in the year toward more normal production levels activities in the second half of the year. Consequently, some of the material identified in current short-term mine plans was shifted into the early months of Q3 (see Q3 operational highlights below).
• Strip ratios (waste:mineralized material) in the first half of 2023 were maintained at under 2:1 during mining operations (excluding additional development work). Approximately 25 per cent of mined material was crushed (average grade of 1.06 grams per tonne Au) versus 75 per cent sent being sent directly to the leach pad as run-of-mine (average grade of 0.43 g/t). Over all, the average grade of mineralized material to the leach pad averaged 0.59 g/t gold through the first six months of the year.
• A total of 1,071 ounces of gold were sold from the Santana project.
• Gold inventory on the leach pad was 5,446 ounces as at June 30, 2023.
• Precipitation levels in 2023 have been returning toward more typical patterns which has allowed the company to commence a return to more normal mining and production plans.
• The company continued constructive communications with SEMARNAT regarding the planned permit amendments which will triple overall pad capacity at Santana and provide the necessary capacity for full Nicho Main zone development. Requested follow-up information has been submitted by the company as part of the continuing dialogue.
• Drilling at the Zata and Benjamin exploration targets continued in Q2. Results are expected in the coming weeks following the maiden resource estimate for Santana.
• At the Cerro de Oro gold project, permit applications were completed and handed off to the company's permitting consultants to guide the proposed Cerro de Oro gold mine through the permitting process. The applications cover the planned operational life laid out in the preliminary economic assessment as well as a second leach pad area that would allow for significant expansion of operations beyond the base case represented by the initial economic study.
• The company announced it had reached terms on a $25-million (U.S.) loan and royalty financing package which would cover the anticipated construction costs of the planned Cerro de Oro gold mine in Zacatecas, Mexico. The financing package is due to close shortly.

Q3 operational summary and outlook:

• At the Santana gold mine, mining rates are planned to continue to rise through the quarter to approximately 100,000 tonnes in September, comparing favourably with the very limited mining that took place during the first half of the year while development and infrastructure work was being completed.
• A resumption to positive/increasing inventories of recoverable gold ounces.
• The release of a maiden resource estimate for the Santana project is expected in Q3 covering the primary mineralized zones surrounding the current Nicho operations as part of the broader Santana project.
• The company continues to utilize existing leach pad space while waiting for the pending permit amendments that would allow the construction of a large pad expansion effectively tripling initial pad capacity at Santana. Plans are being finalized to initiate construction activities in Q4 allowing for a return to much improved and consistent 2024 production guidance closer to levels reached in the second half of 2022. Any construction activities would be planned to follow the end of the current rainy season.
• The Cerro de Oro financing package announced in Q2 is expected to close in Q3 following a successful conclusion to technical due diligence and final drafting of definitive documentation.

Selected financial data

The following selected financial data are summarized from the company's financial statements and related notes thereto for the quarter ended June 30, 2023, and the management's discussion and analysis (MD&A) for the quarter ended June 30, 2023 (all numbers in Canadian dollars unless otherwise stated). A copy of the financial statements and MD&A is available on SEDAR+.

• Revenues (not factoring deferred revenue) totalled $3,079,956 with cost of goods sold and depletion amounting to $3,491,778 for gross loss from mining operations of $411,822. This loss largely reflects lower sales from the reduced production in the first half of the year.
• Net income of $1,127,957 for the quarter of 0.3 cent/share compared with net income of $2,730,220 in the corresponding period of 2022. A comprehensive loss of $2,121,923 was recorded for the quarter primarily as a result of foreign currency translation due to the strengthening of the Mexican peso (the company's functional currency of its subsidiaries).
• Working capital as of June 30, 2023, stood at $20,617,557, up from $18,284,236 as of Dec. 31, 2022.
• Cash and cash equivalents of $8,273,541 compared with $13,153,828 as at Dec. 31, 2022. The decrease in cash holdings can be attributed to a reduction in normal operating payables (approximately $1.3-million) ahead of scaling up mining in the second half of the year, in addition to property holding costs scheduled midyear (approximately $1-million) and an expansion of the company's exploration and evaluation spending (approximately $900,000).
• Subsequent to quarter-end, the company received 33,172,366 pesos ($2,566,214) in the form of an IVA (sales tax) refund from the government of Mexico associated with the Santana project. The company currently has a total of 79,241,250 pesos ($6,130,103) of additional IVA receivables in current and long-term assets and anticipates additional significant refunds prior to year-end.

Cautionary statement

The company made its production decision at the Santana gold mine without having completed a feasibility study demonstrating economic and technical viability. As such, there may be increased uncertainty of achieving planned production levels, estimated recovery of gold and the costs associated with such recovery, including increased risks associated with developing a commercially minable deposit. Historically, such projects have a much higher risk of economic and technical failure.

Mr. Koningen, PEng, Minera's CEO, is the qualified person responsible for the technical content of this press release under National Instrument 43-101.

About Minera Alamos Inc.

Minera Alamos is a gold production and development company undergoing the operational start-up of its first gold mine that produced its first gold in October, 2021. The company has a portfolio of high-quality Mexican assets, including the 100-per-cent-owned Santana open-pit, heap-leach mine in Sonora that is currently going through its operational ramp-up. The 100-per-cent-owned Cerro de Oro oxide gold project in northern Zacatecas has considerable past drilling and metallurgical work completed and is currently being guided through the permitting process by the company's permitting consultants. The La Fortuna open-pit gold project in Durango (100 per cent owned) has a robust and positive preliminary economic assessment (PEA) completed and the main federal permits in place. Minera Alamos is built around its operating team that together brought three mines into successful production in Mexico over the past 13 years.

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