Mr. Greg McCunn reports

ALIO GOLD INC. ANNOUNCES C$50,000,000 BOUGHT DEAL OFFERING OF UNITS

Alio Gold Inc. has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and Clarus Securities Inc., pursuant to which the underwriters have agreed to purchase on a bought deal basis eight million units of the company at a price of $6.25 per unit, representing total gross proceeds of $50-million. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of the company at a price of $8 for a period of 12 months following the closing date. Closing is expected on or about July 20, 2017, and is subject to regulatory approval, including that of the Toronto Stock Exchange, NYSE MKT and the securities regulatory authorities.

The underwriters also have an option to purchase up to an additional 1.2 million units at the offering price (representing 15 per cent of the offering) for market stabilization purposes and to cover overallotments, exercisable within 30 days of the date of closing.

The net proceeds of the offering will be used by the company to advance its Ana Paula project and for general corporate purposes.

The units to be issued under this offering will be offered by way of a short form prospectus in all provinces in Canada except Quebec and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and such other jurisdictions as may be agreed upon by the company and the underwriters.

About Alio Gold Inc.

Alio Gold (formerly Timmins Gold Corp.) is a Canadian gold mining company engaged in exploration, development and production in Mexico. Its principal assets include the producing San Francisco mine in Sonora, Mexico, and the development-stage Ana Paula project in Guerrero, Mexico. The company also has a portfolio of other exploration properties, all of which are located in Mexico.