Minera Alamos Announces C$10.0 Million Bought Deal Private Placement Of Common Shares

Minera Alamos Inc. (“Minera Alamos” or the “Company”) (TSX V:MAI) is pleased to announce that it has entered into an agreement with National Bank Financial Inc. (“NBF”) to act as sole underwriter, pursuant to which NBF will purchase 15,874,000 Common Shares of the Company at a price of C$0.63 (the “Offering Price”) per Common Share, on a “bought deal” private placement basis, for aggregate gross proceeds to the Company of approximately C$10.0 million (the “Offering”). The Company has also granted NBF an option exercisable at any time prior to the closing of the Offering, to purchase for placement up to an additional 2,381,100 Common Shares at the Offering Price, for additional gross proceeds of up to C$1.5 million.

The Company intends to use the net proceeds of the Offering to advance construction of its 100%-owned Santana gold development project located in Sonora, Mexico; further exploration activities at its other 100%-owned development projects located in Mexico, and; general corporate purposes.

The Offering is scheduled to close on or about September 3, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.

The Common Shares to be issued under the Offering will have a hold period of four months and one day from closing.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.

About Minera Alamos Inc.

Minera Alamos is a gold development company poised to join the ranks of gold producers in 2021. The Company has a portfolio of high-quality Mexican assets, including the 100%-owned Santana open-pit, heap-leach development project in Sonora that is currently under construction, and which is expected to have its first gold production in early 2021. The newly acquired 100%-owned Cerro de Oro oxide gold project in northern Zacatecas that has considerable past drilling and metallurgical work completed and could enter the permitting process rapidly. The La Fortuna open pit gold project in Durango (100%-owned) has an extremely robust and positive preliminary economic assessment (PEA) completed and the Company is nearing the end of the permitting process for the project. A construction decision on La Fortuna could be made in late 2020 or early 2021, highlighting the organic growth the existing project portfolio can provide to the overall production profile. Minera Alamos is built around its operating team that together brought three mines into production in Mexico over the last 12 years.

The Company’s strategy is to develop very low capex assets while expanding the projects’ resources and continuing to pursue complementary strategic acquisitions.

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