Richmont Mines Intersects High-Grade, Wide Mineralization in the Down Plunge Extension of the Island Gold Deposit; Including 19.85 g/t gold over 8.4 metres

TSX -NYSE: RIC

TORONTO, July 27, 2017 /PRNewswire/ - Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), is pleased to provide an update on its strategic exploration drilling program currently underway at the cornerstone Island Gold Mine. Recent exploration drilling has intersected high-grade, wide mineralization in the down plunge extension of the main Island Gold deposit with Hole MH8-4 intersecting 19.85 g/t gold over 8.4 metres (true width).

"Our deep directional drilling further confirms the continuation of high-grade, wide zones located in the down plunge extension of the main deposit and we see significant potential to increase mineral resources at depth. Concurrently, we are very encouraged with the results reported from the eastern lateral extension of the main deposit where we anticipate adding near-mine resources that could be incorporated into the current mine plan," stated Renaud Adams, CEO. He continued, "As our ongoing drilling continues to demonstrate the resource potential of the Island Gold deposit, we remain confident that we will extend the mineralized resource blocks located outside the Expansion Case PEA area with quality high-grade ounces. Over the balance of the year we will continue to advance our disciplined drilling program with an overall focus on identifying the next million ounces of gold resources located outside the PEA."

2017 DRILLING PROGRAM – ISLAND GOLD MINE (Figure 1)

The 2017 exploration drilling program, currently underway, continues to build on the positive results achieved in 2016 and is primarily focused on expanding near-mine resources outside the Expansion Case Preliminary Economic Assessment ("PEA") area, both laterally and at depth.

Deep Directional Exploration Drilling Program Highlights (Figure 2)

The successful 2016 deep drilling program identified a new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (containing approximately 230,000 ounces, assays capped at 70 g/t gold) in the down plunge extension, located between the 1,050 and the 1,300 metre levels. The main objective of the 2017 deep directional exploration drilling program is to prove the high-grade extension of the new resource block to a minimum vertical depth of 1,500 metres. Results to date include three significant intercepts (Table 1) (All results are reported with estimated true widths and assays capped at 70 g/t gold.):

• Hole MH8-4 intersected 19.85 g/t gold over 8.4 metres in the eastern portion of the down plunge extension of the deposit. The intersection is located approximately 1,300 metres below surface and includes 71.76 g/t gold over 0.5 metres, 141.43 g/t gold over 0.59 metres and 318.28 g/t gold over 0.25 metres.
• Hole MH2A-12 intersected 11.67 g/t gold over 9.42 metres, including 548.1 g/t gold over 0.24 metres.
• Hole MH2A-13 intersected 8.86 g/t gold over 6.39 metres at a depth of 1,350 metres.

These three new high-grade, wide intercepts confirm that the interpreted down plunge extension of the main Island Gold deposit remains open to a minimum vertical depth of 1,350 metres. Mineralization in this area remains consistent with the main portion of the deposit.

Other highlights from the deep directional exploration drilling include (Table 1):

• Hole MH1-11: 20.78 g/t gold over 1.28 metres (undefined zone)
• Hole MH7: 17.85 g/t gold over 1.68 metres (undefined zone)

Deep directional drilling holes have been completed below the western limit of the Expansion Case PEA area and assays are pending.

Currently, there are three deep directional drills working in the area with a total of 14,059 metres of a planned 36,000 metre drill program have been drilled to date.

Eastern Lateral Infill and Exploration Drilling Program (Figure 3)

The 2016 drilling program successfully added two new inferred resource blocks in the eastern lateral extension, located approximately 300 metres east of the Expansion Case PEA area, between the 340 and the 750 metre levels. The largest inferred resource block contains approximately 290,000 tonnes at a grade of 10.35 g/t gold (approximately 95,000 ounces of gold, capped at 70 g/t gold).

Infill drilling is on-going in the upper part of the new resource block from the 340 metre level with encouraging results to date. The extension of the 620 metre level exploration drift is advancing as planned with infill drilling in the lower part of the block expected to begin shortly. Recent highlights from Eastern Lateral infill drilling include (Table 2) (All results are reported with estimated true widths and assays capped at 70 g/t gold.):

• Hole 340-588-30: 14.15 g/t gold over 2.91 metres
• Hole 340-588-40: 23.10 g/t gold over 2.40 metres
• Hole 340-588-45: 14.71 g/t gold over 2.59 metres
• Hole 340-588-50: 12.52 g/t gold over 3.00 metres
• Hole 340-588-52: 16.16 g/t gold over 2.35 metres

Exploration drilling in the eastern lateral extension is focused in the area where hole GD-640-05 intersected 20.57 g/t of gold over a core length of 11.3 metres, at a vertical depth of approximately 1,000 metres. One directional drill rig has been redeployed to this area to follow-up on this intersection to better understand the geometry and true width of this new high-grade mineralization. Highlights of recent drilling include (Table 2):

• Hole GD-640-05-3 intersected 13.81 g/t gold over 5.2 metres (core length) at the same elevation of GD-640-05, but located 40 metres to the east. Results to date indicate a potential flat, high-grade zone with quartz veins.
• Hole GD-640-05-5 intersected a small high-grade zone of 58.34 g/t gold over 0.43 metres in the plane of the E1E Zone.

Another surface drill rig is currently working further to the east, approximately 1,500 metres from the second dike, to test the lateral extension of the main mineralized structure. To date, two small gold zones have been identified, including:

• Hole GD-670-01: 4.17 g/t gold over 2.44 metres
• Hole GD-690-01: 15.39 g/t gold over 0.89 metres

A total of 18,465 metres of a planned 37,000 metres of exploration and infill drilling has been completed to date with two surface drill rigs and one underground drill from the 340 metre level.

Expansion Case PEA Delineation Drilling Program (Figure 4)

For 2017, a total of 30,000 metres of delineation drilling is planned within the Expansion Case PEA area, primarily in the fourth mining horizon located between the 860 and 1,000 metre levels, with the objective of converting inferred resource blocks to reserves. Currently, two drill rigs are working in the area and a total of 8,515 metres has been completed to date. Recent highlights include (Table 3) (All results are reported with estimated true widths and assays capped at 225 g/t gold.):

• Hole 860-511-03: 37.09 g/t gold over 4.98 metres
• Hole 860-511-07: 51.02 g/t gold over 3.54 metres
• Hole 860-517-07: 52.09 g/t gold over 4.99 metres
• Hole 860-517-08: 45.20 g/t gold over 3.27 metres
• Hole 740-465-40: 31.80 g/t gold over 1.92 metres

Exploration drilling is also underway within the Expansion Case PEA area with the objective of adding resources between the current resources blocks. Recent drilling highlights include:

• Hole 740-465-25: 87.64 g/t gold over 4.90 metres (undefined zone)
• Hole 740-465-29: 49.15 g/t gold over 4.19 metres (undefined zone)

Qualified Persons

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Daniel Adam P.Geo., Ph.D., Richmont's Vice-President, Exploration, a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101"). For additional information about prior drilling results, refer to the Corporation's technical report titled "Island Gold Mine Technical Report and Expansion Case Preliminary Economic Assessment, Dubreuilville, Ontario, Canada" dated July 13, 2017 with an effective date of May 29, 2017.

Quality Control

Assays for the diamond drilling programs were done at LabExpert in Rouyn-Noranda. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance. Cross check assays are done on a regular basis in a second accredited laboratory.

About Richmont Mines Inc.
Richmont Mines 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 more than 35 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.

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", "objective" 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 or regulation, 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, without limitation, 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 and the failure of our exploration drilling programs to identify significant new resources or targets or expand existing resources could also affect the results. Other risks may be set out in Richmont's 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 United States Securities and Exchange Commission (the "SEC"). The requirements of NI 43-101 adopted by the Canadian Securities Administrators differ significantly from the requirements of the SEC.

U.S. Investors are urged to consider the disclosure in our annual report on Form 40-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.

Tables of Drill Results

SOURCE Richmont Mines