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Alamos Gold Inc. Reports a 50% Increase in Quarterly Revenues and a 28% Increase in Gold Sales

Posted on: Monday, 7 April 2008, 18:00 CDT

Alamos Gold Inc. (TSX: AGI) ("Alamos" or the "Company") reports continued increases in quarterly revenues, gold sales and gold production in the first quarter of 2008. Revenues in the first quarter of 2008 increased 50%, the number of ounces of gold sold increased 28% and gold production and crusher throughput increased 5% and 3% respectively compared to the fourth quarter of 2007. Cash operating costs for the quarter are not yet available, but are expected to be consistent with the Company's previous guidance of below $400 per ounce (exclusive of royalties).

Crusher performance continued to improve in the first quarter of 2008 with daily average throughput of approximately 13,700 tonnes of fine crushed ore per day. Production improvements were also noted throughout the quarter. In March 2008, crusher throughput exceeded 14,400 tonnes per day, and gold production was in excess of 11,500 ounces.

Key financial and operational metrics reflect continued quarterly improvements as presented in the table below:

 -----------------------------------------------------------------------                                                  Q1         Q4       %                                             2008 (1)      2007  Change ----------------------------------------------------------------------- Revenues (000)                              $31,030    $20,683      50% ----------------------------------------------------------------------- Gold sales (ounces)                          34,609     27,029      28% ----------------------------------------------------------------------- Operating cash margin  (per ounce sold)                              $450       $259      74% ----------------------------------------------------------------------- Gold production (ounces)(2)                  33,000     31,390       5% ----------------------------------------------------------------------- Ore crushed per day (tonnes)                 13,700     13,300       3% ----------------------------------------------------------------------- ----------------------------------------------------------------------- (1) All amounts for Q1-2008 are preliminary based on initial period-end estimates - final adjustments may be required. (2) Before final refinery settlements which may result in increases or decreases to reported gold production. 

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration and development activities in Mexico. The Company employs approximately 400 people in Mexico and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities. Alamos is fully leveraged to increases in gold prices. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI" and convertible debentures under the symbol "AGI.DB".

Cautionary Non-GAAP Statements

The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Cash operating cost per ounce" and "total cash cost per ounce" as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "cash operating cost per ounce" as determined by the Company compared with other mining companies. In this context, "cash operating cost per ounce" reflects the cash operating cost allocated from in-process and dore inventory associated with ounces of gold sold in the period. "Cash operating cost per ounce" may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. "Total cash cost per ounce" includes "cash operating cost per ounce" plus applicable royalties. "Operating cash margin (per ounce sold)" as used in this analysis is a non-GAAP term used by the Company to assess the level of net cash generated from each ounce of gold sold by subtracting the "total cash cost per ounce" from the realized gold sales price per ounce. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations.

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding gold production, gold sales, crusher throughput, gold recoveries, potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to anticipated production statistics (including "Gold production (ounces")" and "Ore crushed per day (tonnes)") which may be subject to audit or final revision, estimates of costs of production and operating margins (including "Operating cash margin (per ounce sold)"), mining and processing of ore, projected recovery rates, anticipated future production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. These statements may be subject to change, and any changes could be material.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 Contacts: Alamos Gold Inc. John A. McCluskey President and Chief Executive Officer (416) 368-9932 x203  Alamos Gold Inc. Victoria Vargas Investor Relations (416) 368-9932 x201 or 1-866-788-8801  

SOURCE: Alamos Gold Inc.

Source: MARKET WIRE

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