AGI - Alamos Gold Extends High-Grade Gold Mineralization Laterally and at Depth at Island Gold Including within Sub-Parallel Zones in Proximity to Existing Infrastructure

TORONTO, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Alamos Gold Inc. ( TSX:AGI; NYSE:AGI ) (“Alamos” or the “Company”) today reported new results from surface and underground exploration drilling at the Island Gold mine, further extending high-grade gold mineralization in Island West, Island East, and at depth. All reported drill widths are true width of the mineralized zones, unless otherwise stated.

• Island West: high-grade mineralization extended 225 metres (“m”) west of existing Mineral Reserves and Resources (MH33-01). New highlights include:
  
  C-Zone:
  • 97.21 g/t Au (58.55 g/t cut) over 5.05 m (MH33-01);
  • 22.40 g/t Au (22.40 g/t cut) over 2.18 m (790-450-06);
  • 12.07 g/t Au (12.07 g/t cut) over 2.79 m (790-460-10); and
  • 13.91 g/t Au (13.91 g/t cut) over 2.18 m (790-465-12).

• Island West Hanging Wall Zones: high-grade gold mineralization intersected within newly defined sub-parallel zones in the hanging wall (B, G, and G1 zones). These sub-parallel zones are within proximity of existing underground infrastructure and represent a significant opportunity to add near mine Mineral Reserves and Resources. New highlights include:
  
  B-Zone:
  • 525.28 g/t Au (80.26 g/t cut) over 2.33 m (770-467-12);
  • 72.03 g/t Au (44.05 g/t cut) over 3.15 m (770-468-02);
  • 73.16 g/t Au (47.35 g/t cut) over 2.65 m (770-467-10);
  • 34.41 g/t Au (22.77 g/t cut) over 5.07 m (770-467-11);
  • 91.14 g/t Au (35.59 g/t cut) over 2.61 m (770-468-01A);
  • 37.75 g/t Au (36.54 g/t cut) over 2.53 m (770-467-14);
  • 226.16 g/t Au (32.33 g/t cut) over 2.58 m (770-467-13); and
  • 51.17 g/t Au (37.18 g/t cut) over 2.11 m (770-468-03).
  
  G-Zone:
  • 22.81 g/t Au (22.81 g/t cut) over 2.14 m (770-467-08);
  • 14.01 g/t Au (13.65 g/t cut) over 2.34 m (770-471-02); and
  • 10.20 g/t Au (10.20 g/t cut) over 2.59 m (770-474-26).
  
  G-Zone:
  • 38.50 g/t Au (19.68 g/t cut) over 2.00 m (770-474-19); and
  • 37.15 g/t Au (15.97 g/t cut) over 2.33 m (770-467-14).

• Island East Lower: high-grade gold mineralization further extended down-plunge from the large high-grade Inferred Mineral Resource block in the lower part of Island East which contained 2.0 million ounces grading 15.48 g/t Au (3.96 million tonnes (“mt”)) as of December 31, 2021. New highlights include:
  • 110.17 g/t Au (52.08 g/t cut) over 7.79 m (MH27-08);
  • 22.17 g/t Au (22.17 g/t cut) over 8.01 m (MH27-07); and
  • 10.45 g/t Au (10.45 g/t cut) over 7.28 m (MH27-06).

• Island East Middle: underground exploration drilling extended high-grade gold mineralization within the E1E-Zone to the east of Mineral Reserves and Resources and in the area between Island Main and East (above the 840-level). Both areas are within proximity to existing underground infrastructure. New highlights include:
  • 49.51 g/t Au (49.51 g/t cut) over 2.27 m (840-608-34);
  • 27.22 g/t Au (27.22 g/t cut) over 2.16 m (620-580-09);
  • 14.82 g/t Au (14.82 g/t cut) over 3.68m (840-632-11);
  • 24.41 g/t Au (24.41 g/t cut) over 2.13 m (840-608-32); and
  • 25.27 g/t Au (21.18 g/t cut) over 2.36 m (620-624-09).
• Island Main: high-grade gold mineralization extended 160 m below Inferred Mineral Resources (MH30-02), representing one of the deepest intersections to date at Island Gold at a vertical depth of 1,666 m. This highlights the significant opportunity for further high-grade Mineral Reserve and Resource additions with the deposit open laterally and at depth across the currently defined 2 km strike. New highlights include:
  • 23.21 g/t Au (23.21 g/t cut) over 2.50 m (MH30-02).

Note: Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to: C-zone (225 g/t Au), B-zone (90 g/t Au), D1 and G1-zones (45 g/t Au), and G-zone (70 g/t Au), E1E-zone (185 g/t Au).

“These high-grade results across multiple areas of the Island Gold deposit highlight the significant exploration upside, not only laterally and at depth, but within newly defined sub-parallel structures. Much of our focus the last several years has been adding high-grade Mineral Resources at depth in advance of the Phase 3+ Expansion study. Having nearly tripled the Mineral Reserve and Resource base to over five million ounces of gold and with work on the expansion ramping up, our exploration focus is shifting to more cost-effective underground drilling where we can leverage existing infrastructure,” said John A. McCluskey, President and Chief Executive Officer.

“We see excellent potential to continue adding high-grade Mineral Reserves and Resources laterally and at depth, but also within these previously undefined areas adjacent to our existing infrastructure which have the potential to be incorporated into near-term mine planning. These represent potential high-grade ounces close to our existing production horizons which will be low cost to develop, further increasing ounces per vertical metre and the value of the operation,” Mr. McCluskey added.

New highlight intercepts can be found in Tables 1 and 2, and in Figures 1 to 6 at the end of this news release.

2022 Exploration Drilling Program – Island Gold Mine

Total exploration spending through the first nine months was $17.9 million, in line with the annual budgeted amount of $22 million for surface and underground exploration at Island Gold in 2022. Exploration remains focused on defining additional near mine Mineral Resources across the Island Gold Deposit (Island Main, West, and East), as well as advancing and evaluating several regional targets.

A total of 28,174 m of surface directional drilling, 17,984 m of underground exploration drilling, and 9,707 m of regional surface exploration drilling has been completed as of November 25, 2022.

Island West

Surface Directional Drilling

Surface directional drilling extended high-grade mineralization 225 m west of existing Mineral Reserves and Resources (MH33-01) in Island West and highlights the opportunity to expand mineralization up-plunge and along strike, in proximity to existing underground infrastructure. Surface drilling is ongoing in this area, and underground exploration drifts will be extended west from the 490 and 790 levels to continue testing this area from underground.

New highlights include (Figure 1, Table 1):

C-Zone:

• 97.21 g/t Au (58.55 g/t cut) over 5.05 m (MH33-01).
  

Underground Exploration Drilling

Underground drilling from the 770 and 790-level exploration drifts continues to extend high-grade gold mineralization along strike to the west of Mineral Reserves and Resources in the middle portion of Island West (between vertical depths of 700 m and 1,100 m).

New highlights include (Figure 1, Table 2):

C-Zone:

• 22.40 g/t Au (22.40 g/t cut) over 2.18 m (790-450-06);
• 12.07 g/t Au (12.07 g/t cut) over 2.79 m (790-460-10);
• 13.91 g/t Au (13.91 g/t cut) over 2.18 m (790-465-12);
• 12.83 g/t Au (12.83 g/t cut) over 2.27 m (790-460-07); and
• 11.29 g/t Au (11.29 g/t cut) over 2.02 m (790-465-13B).
  

Island West Hanging Wall Zones

In addition to testing the C-Zone structure from the 770- and 790-levels, drill holes were extended into the hanging wall to follow up on previous drilling that intersected high-grade gold mineralization in sub-parallel structures. These structures were previously classified as “unknown zones” and contained limited Mineral Resources due to the lack of drilling. Additional drilling has been successful in establishing continuity and extending high-grade gold mineralization within multiple structures referred to as the B, G, and G1 Zones. These zones are located 20 m, 75 m and 110 m south of the main C-Zone, respectively. This highlights the potential to add high-grade Mineral Reserves and Resources in proximity of existing production horizons and infrastructure which could be incorporated into the mine plan and mined within the next several years. These potential high-grade Mineral Reserves and Resource additions would be low cost to develop, further increasing the value of the operation and strong economics of the expansion.

New highlights include (Figures 4, 5, and 6, Table 2):

B-Zone:

• 525.28 g/t Au (80.26 g/t cut) over 2.33 m (770-467-12);
• 72.03 g/t Au (44.05 g/t cut) over 3.15 m (770-468-02);
• 73.16 g/t Au (47.35 g/t cut) over 2.65 m (770-467-10);
• 34.41 g/t Au (22.77 g/t cut) over 5.07 m (770-467-11);
• 91.14 g/t Au (35.59 g/t cut) over 2.61 m (770-468-01A);
• 37.75 g/t Au (36.54 g/t cut) over 2.53m (770-467-14);
• 226.16 g/t Au (32.33 g/t cut) over 2.58 m (770-467-13);
• 51.17 g/t Au (37.18 g/t cut) over 2.11 m (770-468-03);
• 31.79 g/t Au (26.36 g/t cut) over 2.07 m (790-450-02); and
• 38.96 g/t Au (20.83 g/t cut) over 2.32 m (770-468-07).

G-Zone:

• 22.81 g/t Au (22.81 g/t cut) over 2.14 m (770-467-08);
• 14.01 g/t Au (13.65 g/t cut) over 2.34 m (770-471-02); and
• 10.20 g/t Au (10.20 g/t cut) over 2.59 m (770-474-26).
  

G1-Zone:

• 38.50 g/t Au (19.68 g/t cut) over 2.00 m (770-474-19); and
• 37.15 g/t Au (15.97 g/t cut) over 2.33 m (770-467-14).

Within the B-Zone, the distribution of drill hole intersections over a 30 to 40 m extent is the result of a series of drill holes that were completed at different azimuths and dips from a footwall drill bay, located approximately 30 m north of the B-Zone. These holes were designed to test targets in the hanging wall G and G1 zones, and also confirmed the continuity of high-grade gold mineralization locally within the B-zone.

Island Main and East

Surface Directional Drilling

Surface directional drilling continues to extend high-grade gold mineralization in the E1E-Zone beyond Mineral Resource blocks in the lower portions of Island Main and East areas.

New highlights from the drilling program include (Figure 1, Table 1):

• 110.17 g/t Au (52.08 g/t cut) over 7.79 m (MH27-08);
• 22.17 g/t Au (22.17 g/t cut) over 8.01 m (MH27-07);
• 10.45 g/t Au (10.45 g/t cut) over 7.28 m (MH27-06); and
• 23.21 g/t Au (23.21 g/t cut) over 2.50 m (MH30-02).

Drill hole MH30-02 (23.21 g/t Au (23.21 g/t cut) over 2.50 m) was planned as a significant step-out at depth below Inferred Mineral Resources in Island Main area. This hole intersected high-grade mineralization 160 m vertically below Inferred Mineral Resources and is one of the deepest intersections to date at Island Gold. This further highlights the opportunity for the expansion of high-grade Mineral Reserves and Resources at depth, where Island Gold remains open at depth across the 2 km strike of the deposit.

Drill holes MH27-06 ( 10.45 g/t Au (10.45 g/t cut) over 7.28 m), MH27-07 (22.17 g/t Au (22.17 g/t cut) over 8.01 m), and MH27-08 (110.17 g/t Au (52.08 g/t cut) over 7.79 m) intersected wide, high-grade mineralization beyond the nearest Inferred Mineral Resource block in Island East. These drill holes continue to extend gold mineralization down-plunge from the large Inferred Mineral Resource block which has grown rapidly over the last several years to contain 2.0 million ounces grading 15.48 g/t Au (3.96 mt) as of December 31, 2021. Drilling is in progress in this area and is expected to extend Inferred Mineral Resources to the east.

Drillhole MH27-06 was extended into the footwall of the E1E-Zone and two mineralized zones were encountered, 29.81 g/t Au (29.81 g/t cut) over 6.40 m, and 20.67 g/t Au (20.67 g/t cut) over 13.50 m. These zones start 125 m and 137 m, respectively, down-hole from the E1E-Zone, both with apparent moderate to low-angle relative to the core axis, suggesting an oblique orientation relative to the drill hole azimuth (see “Other Zones”). As a result, true width and geometry are unknown at this time and core length is reported. Drill hole MH27-07 was drilled as a step-out to follow up on these zones; however, did not encounter the same zone. Additional interpretation is ongoing to determine the geometry of the zones, and optimal orientation for follow up drilling.

Both MH27-06 and MH27-07 also intersected a mineralized zone in the hanging wall, 25 m up-hole from the E1E-Zone, returning 25.71 g/t Au (25.71 g/t cut) over 5.0 m, and 10.35 g/t Au (10.35 g/t cut) over 4.65 m, respectively. True width is unknown at this time and core length is reported.

Underground Exploration Drilling

Underground drilling from the 620- and 840-level exploration drifts continues to extend high-grade gold mineralization along strike to the east of Mineral Reserves and Resources in the middle portion of Island East (between vertical depths of 500 m and 1,000 m). Drillhole 840-632-11 was drilled from the eastern extent of the 840-level exploration drift and intersected 14.82 g/t Au (14.82 g/t cut) over 3.68 m , 120 m to the east of the nearest Mineral Resource.

New highlights in the E1E-Zone include (Figure 1, Table 2):

• 49.51 g/t Au (49.51 g/t cut) over 2.27 m (840-608-34);
• 27.22 g/t Au (27.22 g/t cut) over 2.16 m (620-580-09);
• 14.82 g/t Au (14.82 g/t cut) over 3.68m (840-632-11);
• 24.41 g/t Au (24.41 g/t cut) over 2.13 m (840-608-32);
• 25.27 g/t Au (21.18 g/t cut) over 2.36 m (620-624-09);
• 11.50 g/t Au (11.50 g/t cut) over 2.73 m (620-633-08);
• 12.17 g/t Au (12.17 g/t cut) over 2.39 m (840-584-35); and
• 10.48 g/t Au (10.48 g/t cut) over 2.25 m (620-562-10).

Other Zones

The Island Gold Deposit consists of a number of sub-parallel mineralized structures, with the majority of Mineral Reserves and Resources defined in the C/E1E structure which constitute the main production horizons at the Island Gold Mine. As underground development advances, these sub-parallel hanging wall and footwall structures can be targeted with step-out drilling from underground drill platforms. As demonstrated with the above noted newly defined B, G, and G1 Zones, through additional drilling these zones have the potential to be converted into new Mineral Reserves and Resources adjacent to existing underground infrastructure.

High-grade gold mineralization has been previously intersected from surface and underground drilling throughout the hanging wall and footwall across the 2 km strike extent of the Island Gold Deposit. These intersections are high-priority exploration targets outside of the main C/E1E Zone, which currently hosts the majority (94%) of the known Mineral Reserves and Resources at the Island Gold Mine.

Step-out underground exploration drilling targeting these zones can be completed once underground development has been established. This drilling allows for the confirmation of the geometry and potential continuity of mineralization with the objective of defining new Mineral Resources. These hanging wall and footwall exploration opportunities provide potential further upside to define additional Mineral Reserves and Resources outside of the main C/E1E-Zone in proximity to underground development, which would enhance the ounce per vertical metre profile, and provide multiple mining horizons from the same lateral development levels.

The following are highlights of new hanging wall and footwall intersections from underground and surface exploration drilling where the geometry and continuity is not yet established (“Unknown Zone”) (reported composite intervals are core lengths) (Tables 1 and 2):

• 116.04 g/t Au (116.04 g/t cut) over 2.80 m (840-632-07);

• 20.67 g/t Au (20.67 g/t cut) over 13.50 m (MH27-06);
• 29.81 g/t Au (29.81 g/t cut) over 6.40 m (MH27-06);
• 10.35 g/t Au (10.35 g/t cut) over 4.65 m (MH27-06);
• 58.54 g/t Au (58.54 g/t cut) over 2.60 m (840-572-37);
• 53.22 g/t Au (53.22 g/t cut) over 2.50 m (360-594-01);
• 49.57 g/t Au (49.57 g/t cut) over 2.10 m (840-632-05);
• 41.28 g/t Au (41.28 g/t cut) over 2.10 m (840-632-10);
• 31.02 g/t Au (31.02 g/t cut) over 2.20 m (840-632-08);
• 11.75 g/t Au (11.75 g/t cut) over 2.20 m (620-633-01);
• 11.33 g/t Au (11.33 g/t cut) over 3.05 m (340-608-07);
• 12.13 g/t Au (12.13 g/t cut) over 2.75 m (770-467-14); and
• 14.86 g/t Au (14.86 g/t cut) over 2.20 m (360-594-04).
  

Qualified Persons

Scott R.G. Parsons, P.Geo., FAusIMM, Alamos Gold’s Vice President, Exploration, has reviewed and approved the scientific and technical information contained in this news release. Scott R.G. Parsons is a “Qualified Person” as defined by Canadian Securities Administrators’ National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Exploration programs at the Island Gold Mine are directed by Raynald Vincent, P.Eng., M.G.P., Exploration Superintendent at the Island Gold Mine. Raynald Vincent is a “Qualified Person” as defined by Canadian Securities Administrators’ National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Quality Assurance and Quality Control

Alamos Gold maintains an internal Quality Assurance / Quality Control (QA/QC) program at the Island Gold Mine to ensure sampling and analysis of all exploration work is conducted in accordance with best practices.

Access to the Island Gold Mine is controlled by security personnel. Drill core is logged and sampled at the core logging facility within the mine site under the supervision of a Qualified Geologist. A geologist marks the individual samples for analysis, and sample intervals, sample numbers, standards and blanks are entered into the database. The core is cut in half using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a plastic sample bag and sealed with zip ties in preparation for shipment. The other half of the core is returned to the core box and retained for future reference. The samples are placed in large heavy-duty nylon reinforced Fabrene bags, which are identified and sealed before being placed on pallets. The core samples are picked up at the mine site and delivered to AGAT laboratory in Thunder Bay, Ontario.

Gold is analyzed by a 50 grams fire assay with an Atomic Absorption (AA) finish. Samples greater than 10.0 g/t Au are re-analyzed using gravimetric finish methods. AGAT is a certified laboratory and has internal quality control (“QC”) programs that include insertion of reagent blanks, reference materials, and pulp duplicates.

The Corporation inserts QC samples (blanks and reference materials) at regular intervals to monitor laboratory performance. Cross check assays are completed on a regular basis in a secondary accredited laboratory. The QA/QC procedures are more completely described in the Technical Report filed on SEDAR August 29, 2022.

About Alamos

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 strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 1,900 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.

FOR FURTHER INFORMATION, PLEASE CONTACT:

All amounts are in United States dollars, unless otherwise stated.

The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.

Cautionary Note

This news release includes certain statements that constitute forward-looking information within the meaning of applicable Canadian and U.S. securities laws ("forward-looking statements"). All statements in this news release other than statements of historical fact, which address events, results, outcomes or developments that Alamos expects to occur are forward-looking statements. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as “continue”, "expect", "plan", "estimate", “target”, “budget”, “prospective” or “potential” or variations of such words and phrases and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms.

Such statements in this news release include, without limitation, statements with respect to planned exploration programs and focuses, potential drilling results and related expectations, costs and expenditures, project economics, gold price assumptions, potential mineralization, projected ore grades, opportunities to add near mine and further high-grade Mineral Reserves and Resources, potential additions to the mine plan, extension of Inferred Mineral Resources, expected increases in the value of operations, and other information that is based on forecasts and projections of future operational, geological or financial results, estimates of amounts not yet determinable and assumptions of management.

Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of Mineral Resource. A Mineral Resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "Indicated Mineral Resource" or "Inferred Mineral Resource" will ever be upgraded to a higher category of Mineral Resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Proven and Probable Mineral Reserves.

Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.

These factors and assumptions include, but are not limited to: the actual results of current exploration activities, conclusions of economic and geological evaluations, changes in project parameters as plans continue to be refined, operations may be exposed to widespread pandemic; the impact of the COVID-19 pandemic on the broader market; state and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada, Mexico and other jurisdictions in which the Company does or may conduct business; the duration of regulatory responses to the COVID-19 pandemic; changes in national and local government legislation, controls or regulations; failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); ability to sell or deliver gold doré bars; disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, and Mexican peso); the impact of inflation; employee and community relations; litigation and administrative proceedings; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays in the development or updating of mine plans; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; the risk that the Company’s mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, risks in obtaining and maintaining necessary licenses, permits and authorizations, contests over title to properties; expropriation or nationalization of property; political or economic developments in Canada or Mexico and other jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of construction and development of new deposits; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and business opportunities that may be pursued by the Company.

For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the Company’s latest 40-F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors”, available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information and risk factors and assumptions found in this news release.

The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether written or oral, or whether as a result of new information, future events or otherwise, except as required by applicable law.

Note to U.S. Investors – Mineral Reserve and Resource Estimates

Unless otherwise indicated, all Mineral Resource and Mineral Reserve estimates included in this news release have been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Mining disclosure in the United States was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The U.S. Securities and Exchange Commission (the “SEC”) has adopted final rules, to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards.

Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under Regulation S-K 1300 and the CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300. U.S. investors are also cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Regulation S-K 1300, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater degree of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable.

Table 1: Island Gold – Previously Unreleased Select Composite Intervals from Surface Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values:
Island Main and East @ 185 g/t Au, Island West @ 225 g/t Au.

Table 2: Island Gold – Previously Unreleased Select Composite Intervals from Underground Exploration Drilling

Composite intervals greater than 3 g/t Au weighted average, capping values:
Island West (C-zone) @ 225 g/t Au; Island Main and East (E1E Zone) @ 185 g/t Au. B Zone @ 90 g/t Au; D1 and G1 Zones @ 45 g/t Au; G Zone @ 70 g/t Au.

Table 3: Surface exploration drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83)

Note: UTM mine surface elevation 393 m

Table 4: Underground exploration drill holes; azimuth, dip, drilled length, and collar location at surface (UTM NAD83).

Note: UTM mine surface elevation 393 m

Figure 1: Island Gold Mine – C/E1E/E1EN Longitudinal, New Underground and Surface Exploration Drilling Results

Figure 2: Island Gold West (C-Zone) Longitudinal – Surface and Underground Exploration Drilling Results

Figure 3: Island Gold East (E1E-Zone) Longitudinal – Underground Exploration Drilling Results

Figure 4: Island Gold Mine B-Zone Longitudinal – Underground Exploration Drilling Results

Figure 5: Island Gold Mine G-Zone Longitudinal – Underground Exploration Drilling Results

Figure 6: Island Gold Mine G1-Zone Longitudinal – Underground Exploration Drilling Results

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https://www.globenewswire.com/NewsRoom/AttachmentNg/ef0046dd-02e0-4170-9539-40e4e0b0e609

https://www.globenewswire.com/NewsRoom/AttachmentNg/43aefbdc-dcb4-4ca7-9160-8b14cff121c2

https://www.globenewswire.com/NewsRoom/AttachmentNg/3833a095-738d-47ba-9ec1-3ab71f8b9191