Mr. Doug Ramshaw reports

MINERA ALAMOS SIGNS DEFINITIVE DOCUMENTATION FOR CERRO DE ORO CONSTRUCTION FINANCING PACKAGE OF UP TO US$25 MILLION AND COMPLETES INITIAL DRAWDOWN

Minera Alamos Inc. has executed the definitive documentation for the previously announced Cerro de Oro financing package associated with the planned construction of the Cerro de Oro gold mine that is currently anticipated to begin next year.

The company entered into the Cerro de Oro financing documents with Auramet International Inc. and Auramet Capital Partners LP, which comprises a loan facility for up to $15-million (U.S.) and a $10-million (U.S.) royalty (see news release dated May 31, 2023, for a more detailed summary of the terms). Upon execution of the Cerro de Oro financing documents, the company also completed a drawdown of an initial $5-million (U.S.) under the loan facility to advance certain preconstruction work related to the Cerro de Oro project.

"We are delighted to have executed these financing documents with Auramet, which provides a fully funded and single-source solution to the modest capital expenditure requirements of the planned gold mine at Cerro de Oro. Our team has had an excellent working relationship with Auramet in recent years in regard to gold sales from prior operations as well as our Santana gold mine. This has provided us great insight into how supportive a partner Auramet can be, and we are happy to have executed a funding facility which will allow us to grow the relationship with the Auramet team," stated Doug Ramshaw, president, Minera Alamos.

According to the financing facility, the company may deliver a drawdown notice to Auramet for the remaining $10-million (U.S.) under the loan facility upon the satisfactory completion of certain conditions, including, among other things: (i) the final earn-in commitments of the Cerro de Oro project and property; and (ii) receipt of permits required for construction of the Cerro de Oro project.

In the event that the company does not meet the above closing conditions or should it elect not to deliver a drawdown notice for the remaining amount by the earlier to occur of (i) Oct. 27, 2024; and (ii) the date that is 31 days after all closing conditions have been satisfied, the outstanding balance of the interim amount (including all interest accrued thereon) shall mature and be payable in equal instalments over the subsequent 10-month period and all obligations of Auramet to advance any part of the remaining amount will immediately be cancelled and terminated.

Closing and financing of the $10-million (U.S.) under the royalty facility are conditional upon meeting the same conditions as are required to draw down on the remaining loan facility and are also conditional upon the actual drawdown of the remaining amount under the loan facility and to the extent this does not occur, any obligations under the royalty facility will also terminate.

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 the proposed mining project 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 positive, robust preliminary economic assessment (PEA) completed, and the main federal permits are in place. Minera Alamos is built around its operating team that together brought three open-pit heap-leach gold mines into successful production in Mexico over the last 13 years.

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