Mr. Doug Ramshaw reports

MINERA ALAMOS RECEIVES $5,000,000 FROM SANTANA ROYALTY CLOSING

Following shareholder approval of the previously announced Santana project financing package provided by Osisko Gold Royalties (see news release dated Dec. 6, 2019), Minera Alamos Inc. has closed the royalty agreement and received gross proceeds of $5-million. In combination with the $6-million equity placement completed by Osisko in January of this year, the company has now received gross proceeds of $11-million and retains an option to further draw down an optional royalty facility of up to $3-million, as previously described in the Dec. 6, 2019, news release. Over all, the package provided access to $14-million, which exceeded the company's current development plans for the Santana operations.

Doug Ramshaw, president, stated: "The strength of our partnership with Osisko has never been more clearly demonstrated than by their continued financial support during the current global uncertainty in equity markets. We remain fortunate we can access their financial and technical resources that allow us to remain on track to transition to gold producer in late 2020. Currently, our current working capital remains sufficient to execute our previously announced construction plans at Santana."

As of March 30, 2020, the company has total cash of $13.6-million and working capital of $14.6-million with a further $3-million available should Minera elect to draw down the optional royalty facility.

COVID-19 operational update

This week, the Mexican federal government mandated that all non-essential businesses are to temporarily suspend operations until April 30, 2020, in response to the COVID-19 pandemic. While some companies continue to engage the government to understand the intended impacts of the decree on their mining operations, Minera has begun limiting work that has been continuing at the Santana site in order to comply with the current scope of the government announcement. This includes halting the current drilling program from which the company has a backlog of results to release during the suspension of activity. Heavy equipment has been mobilized to site and will be available when the suspension has lifted. Minera initially guided a six- to eight-month construction time for Santana; with the slowdown of activity for the next month, the company expects that construction completion may now extend toward the upper end of that guidance. Despite some reductions in site activity, the company remains fully involved with other aspects of development, including mine start-up optimization studies and the purchase of process-plant and site-infrastructure equipment in order to minimize any overall delays once potential restrictions are lifted.

"While the situation continues to be fluid, the company appreciates the federal-government's response to the COVID-19 outbreak, which should ensure the health and safety of our staff, and also communities throughout Mexico such as the one we work within and consider ourselves very much a part of," stated chief executive officer Darren Koningen.

About Minera Alamos Inc.

Minera Alamos is a gold-development company poised to join the ranks of gold producers in 2020.