Richmont Mines

Richmont Mines Reports Another Record Quarter at Island Gold with a 147% Increase in Production and a 52% Reduction in Cash Costs

Toronto (ots/PRNewswire) - Richmont Mines Inc. (TSX - NYSE MKT: RIC) ("Richmont" or the "Corporation"), reports that the Island Gold Mine delivered another record quarter of operational results that contributed to a strong consolidated first quarter production of 32,369 gold ounces and cash costs of $806 per ounce (US$587 per ounce). (All amounts are in Canadian dollars unless otherwise indicated).

Highlights for the First Quarter include:

- During the first quarter, Island Gold produced 26,589 ounces of 
  gold (26,031 ounces sold), an increase of 147% over the same period
  in 2015 and an 87% increase over the prior quarter. Increased 
  production for the quarter was positively impacted by higher than 
  expected reconciled grades of 11.31 g/t milled and record mill 
  throughput of 834 tonnes per day. Company-wide production was 
  32,369 ounces of gold (32,239 ounces sold), a 25% increase over the
  prior year period and 45% over the prior quarter.
- Cash costs for the quarter at Island Gold were $674 per ounce 
  (US$491 per ounce), a 52% decrease over the prior year period and a
  34% decrease over the prior quarter. Company-wide cash costs for 
  the quarter were $806 per ounce (US$587 per ounce), a decrease of 
  18% over the prior year period and a 22% decrease over the prior 
  quarter.
- First quarter revenues were a record $52.6 million at an average 
  realized gold price of $1,629 per ounce (US$1,186 per ounce).
- Richmont maintained its cash balance of approximately $61 million 
  (US$45 million) as at the end of the quarter, despite an $8.7 
  million reduction in Accounts Payable balances during the quarter. 

Production Highlights

   

2016
                           Q4 14    Q1 15    
Q2 15   Q3 15     Q4 15    Q1 16   Guidance
    Gold Produced (oz)

Island Gold                                                
62,000-
             Mine          8,974    10,764  14,997   
15,076  14,203(1)  26,589  67,000


25,000-

Beaufor Mine  6,633    7,963(2) 7,082   5,714     5,652    4,615   
30,000

             Monique Mine  7,324    7,132    4,235   2,688   
2,525    1,165(3)   -


87,000-
    Total Produced (oz)    
22,931   25,859  26,314   23,478   22,380    32,369  97,000
    (1) 
Fourth quarter production includes a 3 week underground mine 
shutdown.

    (2) Production includes 1,624 ounces from the milling 
of slag accumulated at
    the Camflo Mill.

    (3) Processing of 
the stockpile pad at the Monique Mine was completed at the
    end of
January 2016.
 

Cash Cost Highlights

   

2016
                          Q4 14    Q1 15    Q2
15    Q3 15    Q4 15    Q1 16    Guidance(2)
    Cash Costs (C$)(1)

Island Gold Mine     $1,307   $1,414     $954     $890   $1,026    
$674     $900-$960
    Beaufor Mine           $935     $905   $1,062 
$974   $1,084   $1,398 $1,000-$1,060
    Monique Mine           
$586     $521     $914   $1,005     $977   $1,185       -
    Total 
Cash Costs
    (C$)(1)                $981     $979     $974     $926
$1,034     $806   $930-$1,000
    Cash Costs
    (US$)(1)

Island Gold Mine     $1,151   $1,139     $776     $680     $768     
$491     $660-$705
    Beaufor Mine           $823     $730     $864 
$744     $812   $1,018     $735-$780
    Monique Mine           
$516     $420     $743     $768     $731     $863       -
    Total 
Cash Costs
    (US$)(1)               $864     $789     $792     $707
$774     $587     $680-$730
    (1) Refer to the Non-GAAP 
measures that is contained in the Annual MD&A.

    (2) 2016 guidance
assumes a foreign exchange rate of 1.364 Canadian dollars to
    the 
US dollar.
 

Operational Highlights

   
                       Q4 14      Q1 15      Q2 15      Q3 15  
Q4 15     Q1 16
                                       Island Gold
Mine
    Underground tpd     399        552        759        669    
657(1)    853
    Mill tpd            507        487        787   
722        656(2)    834
    Mill head grade
    (g/t)           
6.28       7.87       6.73       7.27       7.62     11.31

Recoveries (%)     95.3       97.2       96.8       97.1       96.0  
96.3
                                         Beaufor Mine

Underground tpd     327        367        360        338        306  
323
    Mill head grade
    (g/t)              6.96       8.44(3)
6.05       5.93       6.30      4.96
    Recoveries (%)     98.1  
98.6       98.6       98.6       98.4      98.7
    (1) Fourth 
quarter underground productivity includes a 3 week mine
    shutdown.
(2) Fourth quarter mill productivity includes a 2 week mill 
shutdown.

    (3) Production includes 1,624 ounces from the milling 
of slag accumulated
    at the Camflo Mill.
 

"We are pleased to report another record quarter, which was driven by higher grades and improving productivity from the Island Gold Mine. As we continue to better understand this asset at depth, we are increasingly confident that there remains significant potential for expansion." stated Renaud Adams, President and CEO. "During the quarter, we remained diligent in our focus to strategically leverage our Canadian dollar exposure in order to cost effectively advance our capital allocation requirements. As a result, we preserved our cash position quarter-over-quarter, while fully funding our strategic capital investment requirements at Island Gold and reducing our short term accounts payable balance. We are currently reviewing the remaining 2016 mine plan, which includes development and stope mining in lower-grade zones and a 3 week mill shutdown in the second half of the year at Island Gold for a planned electrical upgrade, as previously disclosed in the February 11, 2016 press release."

Island Gold Highlights

- Production from the Island Gold Mine was a record 26,589 ounces of 
  gold (26,031 ounces sold), an increase of 147% over the same period
  in 2015 and an 87% increase over the prior quarter.
- Higher production for the quarter was positively impacted by higher
  than expected grades of 11.31 g/t milled and record mill throughput
  of 834 tonnes per day. The higher grade realized in the quarter was
  primarily the result of a strategic decision to increase the ratio 
  of higher cost ore development in the higher grade second mining 
  horizon (55% versus a planned 40%) in order to best leverage our 
  Canadian dollar exposure, as well as a positive grade 
  reconciliation (mined vs. reserves) of 44%. The forward looking 
  2016 mine plan continues to forecast development and stope mining 
  in lower-grade zones at reserve grade levels with a ratio of 
  higher-cost ore development reverting back to the planned 40%.
- Cash costs for the quarter were $674 per ounce (US$491 per ounce), 
  significantly below guidance estimates and a 52% decrease over the 
  prior year period and a 34% decrease over the prior quarter.
- Underground productivity for the quarter averaged 853 tonnes per 
  day. The development of the main ramp continues as planned reaching
  a vertical depth of 770 metres at quarter end.
- Record mill throughput of 834 tonnes per day during the quarter, 
  with average recoveries of 96.3%. As previously disclosed, a 3-week
  electrical upgrade is scheduled to be completed in July 2016.
- Updates on the Island Gold exploration drilling program continue to
  demonstrate the significant potential to grow production and 
  increase mine life both laterally above the 860 metre level, which 
  could support an upgrade to 1,150 tonnes per day, as well as the 
  vertical extension below the 1,000 metre level. One additional 
  directional drill (for a total of 4 drills) has been added to 
  support the deep exploration program below 1,000 metre level but 
  also to expand the drilling program in order to test the structure 
  to the west of the current target between the 1,000 metre and 1,500
  metre levels. It is expected that the previously announced 
  exploration drilling program will be completed by June 2016, at 
  which time the Corporation will review all drilling results and 
  subsequently provide an update on additional drilling programs 
  planned for the second half of the year. 

Beaufor Highlights

- Production for the quarter was 4,615 ounces (5,037 ounces sold), a 
  42% decrease over the prior year period and an 18% decrease over 
  the prior quarter, primarily as a result of lower than expected 
  grades mined in Zones M-MF and 12. Production in the first quarter 
  of 2015 included 1,624 ounces of gold that was processed by the 
  milling of slag at the Camflo Mill.
- Cash costs for the quarter were $1,398 per ounce (US$1,018 per 
  ounce), a 54% increase over the prior year period and 29% higher 
  than the prior quarter. Cash costs are expected to decrease as 
  stope mining in the Q Zone begins in the second half of the year.
- Underground productivity at the Beaufor Mine averaged 323 tonnes 
  per day, in-line with planned levels.
- Development of the Q Zone advanced as planned during the quarter 
  and the mineralized structure was reached in late March 2016. 
  Development in ore was initiated before quarter end, with stope 
  mining planned for the second half of the year. 

Monique Highlights

- Production for the quarter was 1,165 ounces (1,171 ounces sold). A 
  decision was made to process the stockpile pad and a total of 
  16,063 tonnes at an average grade of 2.31 g/t were processed in 
  January.
- Cash costs for the quarter were $1,185 per ounce (US$863 per 
  ounce), including approximately $715 per ounce (US$521 per ounce) 
  of non-cash charges that were incurred in 2014 but are accounted 
  for in 2016. 

Corporate Highlights

- On February 9, 2016, Richmont announced a 187% increase in Mineral 
  Reserves and Resources as of December 31, 2015, including a 206% 
  increase in Mineral Reserves at the cornerstone Island Gold Mine to
  561,700 gold ounces (net of depletion) and a 95% increase in 
  Mineral Reserves at the Beaufor Mine to 63,850 gold ounces (net of 
  depletion).
- On February 11, 2016, Richmont announced its 2016 operational 
  outlook, which estimates another record year at the Island Gold 
  Mine that includes a potential production increase of up to 22% and
  a decrease in All-In Sustaining Costs.
- On February 24, 2016, Richmont announced the appointment of Mr. 
  Peter Barnes to the Corporation's Board of Directors effective 
  immediately. Mr. Barnes will serve as an independent member of the 
  Richmont Board, and will join the Audit and the HR and Compensation
  Committees.
- On February 25, 2016, Richmont provided an update on the previously
  announced Island Gold exploration drilling program, which continues
  to demonstrate the significant potential of the Island Gold Mine. 

Upcoming News

- Exploration update (late April / early May)
- Q1 2016 Financial Results (May 12)
- Annual General Meeting of Shareholders (May 12) 

About Richmont Mines Inc.

Richmont Mines has produced over 1.6 million ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production. The Corporation currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 25 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth. Richmont routinely posts news and other important information on its website (http://www.richmont-mines.com).

Forward-Looking Statements

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont Mines' Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates

Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The Reserve and Resource estimates in this press release were prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of Regulation 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.

Regulation 43-101

The geological data in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by Regulation 43-101.

Contact:

, please contact:
Renaud Adams
President and CEO
Phone: +1-416-368-0291 ext. 101
Anne Day
Vice-President, Investor Relations
Phone: +1-416-368-0291 ext. 105
Richmont Mines Inc.
Ticker symbol: RIC
Listings: TSX - NYSE MKT
Web Site: http://www.richmont-mines.com
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