Mr. John McCluskey reports

ALAMOS GOLD REPORTS THIRD QUARTER 2021 RESULTS

Alamos Gold Inc. today released its financial results for the quarter ended Sept. 30, 2021. (All amounts are in United States dollars, unless otherwise stated.)

"We had a challenging third quarter at our Mulatos mine which offset strong performances at our Canadian operations. The challenges at Mulatos are temporary with the operation transitioning to low-cost production from La Yaqui Grande in 2022; however, given the weaker quarter, we reduced 2021 guidance at the operation by 15,000 ounces. We have also increased our consolidated cost guidance for the year given the stronger-than-budgeted Canadian dollar and higher-than-planned costs at Mulatos," said John A. McCluskey, president and chief executive officer.

"We expect higher production in the fourth quarter with our Canadian operations continuing to perform well. This has been led by Young-Davidson which achieved a new record for underground mining rates in the third quarter. We are also making good progress on our growth initiatives including the phase III expansion at Island Gold and construction of La Yaqui Grande. Both are key drivers of our strong outlook with production potential of 750,000 ounces per year by 2025 at significantly lower all-in sustaining costs of approximately $800 per ounce," Mr. McCluskey added.

Third quarter 2021

• Production of 104,700 ounces of gold, an 11-per-cent decrease from the third quarter of 2020, with lower-than-anticipated production from Mulatos more than offsetting a strong performance at Young-Davidson;
• Gold production at Mulatos of 26,700 ounces was well below expectations due to an above average rainy season in Mexico which impacted stacking rates, and a longer-than-anticipated leach cycle for stockpiled ore stacked in the quarter. With Cerro Pelon winding down, stockpiled ore will represent a larger proportion of stacked ore at Mulatos until production from La Yaqui Grande ramps up in the second half of 2022;
• Given the lower production at Mulatos in the quarter and longer-than-anticipated leach cycle for stockpiled ore, the company has revised production guidance lower by 15,000 ounces at Mulatos. Production guidance for Young-Davidson and Island Gold remains unchanged with both operations continuing to perform well;
• Young-Davidson achieved record mining rates of 8,017 tonnes per day (tpd), driving production of 50,000 ounces of gold and mine-site free cash flow (1) of $28.9-million. With a further increase in production expected in the fourth quarter, Young-Davidson is expected to generate approximately $100-million in mine-site free cash flow in 2021;
• Consolidated total cash costs (1) of $788 per ounce, all-in sustaining costs (AISC) (1) of $1,152 per ounce and cost of sales of $1,172 per ounce were higher-than-annual guidance reflecting the stronger-than-budgeted Canadian dollar, and higher costs at Mulatos. The United States dollar/Canadian dollar foreign exchange rate averaged 79 cents:$1 in the third quarter and 80 cents:$1 year to date relative to the budgeted rate of 75 cents:$1 which has increased total cash costs by $30 per ounce and AISC by $45 per ounce. In addition, Mulatos costs increased in the third quarter and are expected to increase further in the fourth quarter, reflecting higher reagent costs associated with processing stockpiled ore;
• Given the stronger-than-budgeted Canadian dollar, and higher-than-planned costs at Mulatos, the company has revised its 2021 total cash cost guidance to $790 to $810 per ounce and all-in sustaining costs to $1,120 to $1,140 per ounce;
• Construction of La Yaqui Grande is progressing well and remains on track for commercial production in the third quarter of 2022. La Yaqui Grande is expected to significantly reduce the cost profile at Mulatos as production ramps up toward the end of 2022. Despite inflationary cost pressures and other challenges related to COVID-19, capital spending for La Yaqui Grande remains on budget;
• Sold 110,488 ounces of gold at an average realized price of $1,792 per ounce for revenues of $198.0-million, a 9-per-cent decrease compared to the third quarter of 2020;
• Generated cash flow from operating activities of $82.4-million ($102.3-million, or 26 cents per share, before changes in working capital (1)), a decrease from the prior-year period due to lower realized gold prices and less ounces sold;
• Free cash flow (1) was negative in the quarter, driven by higher capital spending mainly related to La Yaqui Grande and the phase III expansion at Island Gold;
• Realized adjusted net earnings (1) of $37.6-million, or 10 cents per share (1), which includes adjustments for unrealized foreign exchange loss of $12.8-million recorded within deferred taxes and foreign exchange, and other gains of $300,000;
• Recorded net earnings of $25.1-million, or six cents per share;
• Ended the quarter with cash and cash equivalents of $211.4-million, equity securities of $22.9-million, and no debt;
• Paid a quarterly dividend of $9.8-million, or 2.5 U.S. cents per share (annualized rate of 10 U.S. cents per share), bringing total dividends through the first nine months of 2021 to $29.4-million;
• Repurchased an additional 600,000 shares in the quarter at a cost of $4.5-million under the company's normal course issuer bid (NCIB) bringing the total amount repurchased year to date to $6.0-million;
• Reported results from the underground exploration drill program at Young-Davidson which has successfully extended gold mineralization below existing mineral reserves and resources and intersected higher grades in the hangingwall and footwall of the deposit.

Reminder of third quarter 2021 results conference call

The company's senior management will host a conference call on Thursday, Oct. 28, 2021, at 11 a.m. ET to discuss the third quarter 2021 results. Participants may join the conference call via webcast or through the following dial-in numbers:

Toronto and international:  416-406-0743

Toll-free (Canada and the United States):  800-898-3989

Participant passcode:  8987852 followed by the pound key

Webcast:  Alamos Gold website

A playback will be available until Nov. 28, 2021, by dialling 905-694-9451 or 800-408-3053 within Canada and the United States. The passcode is 5112333 followed by the pound key. The webcast will be archived on the company's website.

Qualified persons

Chris Bostwick, FAusIMM, Alamos's 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 significant portfolio of development stage projects in Canada, Mexico, Turkey and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development. The company's shares are traded on the Toronto Stock Exchange and New York Stock Exchange under the symbol AGI.

We seek Safe Harbor.