TSX NYSE MKT: RIC POSITIONING FOR SUSTAINABLE GROWTH

Transcription

1 TSX NYSE MKT: RIC POSITIONING FOR SUSTAINABLE GROWTH Red Cloud Fall Mining Showcase October 6, 2016

2 FORWARD LOOKING STATEMENTS Safe Harbor Statement & Cautionary Note to U.S. Investors Concerning Resource Estimates This presentation contains forward-looking statements that include risks and uncertainties. When used in this presentation, the words estimate, projects, anticipate, expects, 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 indicated by law or regulation. Richmont undertakes no obligation and disclaims any responsibility to publicly update or revise any forward looking statements of 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-U.S. 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 detailed from time to time in Richmont Mines Inc. s Annual Information Form. The resource estimates in this presentation were prepared in accordance with National Instrument Standards of Disclosure of Mineral Projects ( NI ) adopted by the Canadian Securities Administrators. The requirements of NI differ significantly from the requirements of the United States Securities and Exchange Commission (the SEC ). In this presentation, we use the terms Measured, Indicated and Inferred Resources. Although these terms are recognized and required to be used in Canada, the SEC does not recognize them. The SEC permits U.S. mining corporations, in their filings with the SEC, to disclose only those mineral deposits that constitute Reserves. Under United States standards, mineralization may not be classified as a Reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a Measured or Indicated Resource will ever be converted into Reserves. Furthermore, Inferred Resources have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that Inferred Resources exist or can be legally or economically mined, or that they will ever be upgraded to a more certain category. U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No , which may be obtained from us or from the SEC s web site: (All amountsare in Canadian dollars, unless otherwise indicated.) 2

3 RICHMONT MINES OVERVIEW Quality Asset Base in Canada Growing Production Profile Decreasing Cost Structure Growing Cash Flow Streams Significant Exploration Potential Strong Balance Sheet Favourable Canadian Dollar Exposure Low Shares Outstanding (63M) (1) (1) Undiluted and including 3.0 million shares issued as part of the June 2016 equity financing. 3

4 CAPITAL STRUCTURE Capital Structure Issued & Outstanding Shares (1) 62.6M Fully Diluted 65.9M Cash (2) C$96M C$96M (US$74M) * CASH (2) Total Debt (2) Ticker C$11.1M RIC:TSX NYSE MKT Market Capital (Sept. 6/16) Analyst Coverage BMO Capital Markets Canaccord Genuity CIBC Cormark Securities Desjardins Capital Haywood Securities Mackie Research Macquarie Capital Markets National Bank Financial Paradigm Capital PI Financial Scotia Capital TD Securities C$863M Brian Quast (1) Includes 3.0 million shares issued as part of the June 2016 C$31M equity financing. (2) As of June 30, Long-term debt is primarily comprised of capital lease obligations. Rahul Paul Jeff Killeen Richard Gray Mike Parkin Kerry Smith Ryan Hanley Michael Gray Adam Melnyk Don Blyth Brian Szeto Craig Johnston Daniel Earle C$11M (US$8M) * DEBT (2) RIC (as of September 6, 2016) TSX C$ NYSE MKT US$ Closing price $13.78 $ week range $3.24-$14.99 $2.27-$10.86 Market Cap (M s) $863M $669M 90-day daily trading avg. 366, ,987 Strong cash position supports fully funded strategic growth plan * Using a C$:US$ exchange rate of

5 OPERATIONAL HIGHLIGHTS H Original 2016 Guidance Revised 2016 Guidance Proven and Probable Mineral Reserves (1)(2) Island Gold Mine and Beaufor Mine December 31, 2015 Gold ounces Gold g/t Gold produced (oz) 55,689 87,000-97,000 98, ,000 (3) Cash cost per oz. (C$) (1) $848 $930-$1,000 $885-$945 AISC per oz. (C$) (1) $1,200 $1,275-$1,390 $1,230-$1,335 Cash cost per oz. (US$) (1)(2) $637 $680-$730 $675-$720 AISC per oz. (US$) (1)(2) $902 $935-$1,015 $935-$1,015 Island Gold Proven & Probable above ~400m 76, below ~400m 485, Island Gold Proven & Probable 561, Beaufor Proven & Probable 63, Total Proven & Probable 625, (1) Refer to the Non-IFRS performance measures contained in the Q MD&A. (2) An exchange rate of 1.36 Canadian dollars to 1.0 US dollar was used for the original 2016 guidance issued on Feb. 11, The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December. (3) Includes 1,165 gold ounces produced from the Monique Mine in January 2016 Operational Highlights Potential production increase of up to 45% over 2015 from Island Gold Potential Cash Cost and AISC decrease of up to 23% and 29% over 2015 from Island Gold Island Gold mine life of 7 years based on reserves with 3 years mine life pre-developed Beaufor mine life of more than 2 years based on reserves (1) Refer to the detailed mineral reserve and mineral resource tables that follow at the end of this presentation (2) No changes to Mineral Reserves were made at the Corporation s other properties. Updated Preliminary Economic Assessment for Island Gold expected Oct/16 5

6 ISLAND GOLD MINE: CANADIAN HIGH-GRADE UNDERGROUND MINE POTENTIAL PRODUCTION INCREASE OF UP TO 125% SINCE 2013 H Original 2016 Guidance Revised 2016 Guidance PEA Avg. Gold Production (oz) 45,206 62,000-67,000 75,000-80,000 78,000 Cash costs/oz (C$) (1) $714 $900-$960 $800-$840 $552 AISC per oz. (C$) (1) $935 $1,160-$1,250 $1,040-$1,110 $639 Cash costs/oz (US$) (1)(2) $537 $660-$705 $610-$640 $414 AISC per oz. (US$) (1)(2) $703 $850-$920 $795-$845 $479 (1) Refer to the Non-IFRS performance measures contained in the Q MD&A. (2) An exchange rate of 1.36 Canadian dollars to 1.0 US dollar was used for the original 2016 guidance issued on Feb. 11, The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December. Capital and Exploration Original 2016 Guidance Revised 2016 Guidance 2016 PEA Strong Production Profile; Declining cash costs YTD positive grade reconciliation of 27% Production expansion opportunity Reserves increase by 206%; 7-year mine life (1) Exploration potential laterally and at depth (1) Mine life based on 2015 Mineral Reserves. Sustaining Capital (C$M) 17.3 $18.9 ~$20.0 (2) Project Capital (C$M) PEA 37.4 $ Project Capital (C$M) non-pea 6.0 (1) $8.7 (1) - Exploration (C$M) 14.4 $ (1) Includes 1,000m of development and related infrastructure outside of the PEA area. (2) Estimated sustaining capital for the entire period as per the PEA is $40.5M Reserves and Resources (1) Refer to full 2015 Reserve and Resource information at the end of this presentation. 6 Tonnes Gold Ounces Grade g/t Reserves (oz) (1) /Grade (g/t) 2,115, , M&I (oz )(1) /Grade (g/t) 348,500 71, Inferred (oz) (1) /Grade (g/t) 2,815, ,

7 ISLAND GOLD MINE: POSITIONING FOR GROWTH First 2 mining horizons developed, third horizon development in progress 3 years of mine life pre-developed Tonnes mined from development ore: 2015: 50% / 2016E: 40% / PEA: 5% Mill Electrical Upgrade: Completed Q3 Island Gold Production Upside Island Gold 2015 Q Q E Underground (tpd) Development to stope ratio (%) 50/50 55/45 48/52 40/60 Mill (tpd) Head grade (g/t) (1) Recoveries (%) (1) Assumes a grade of 9.36 g/t for the 6 months ended June 30/16 Underground Mine Productivity 100, , Gold Ounces 80,000 70,000 60,000 50,000 40,000 30,000 Tonnes per day Grams per tonne 20, , E(1) PEA Base Case (800tpd)(2) Upside Potential (900tpd)(3) 0 Underground tpd Head grade (g/t) 0.00 (1) Mid-range of Revised 2016 guidance (2) Avg. annual production (3) Permitted potential 7

8 Q2 STRONG PRODUCTION: POSITIVE RECONCILIATION TO RESERVES CONTINUES Production in Q2; Higher than planned milled grades of 7.51g/t Higher cost development ore/stope ore of 48%; 2016 mine plan of 40% Development primarily in lower-grade extensions of the second mining horizon Positive reconciliation of 19%: (10% grade / 8% tonnes) 30% dilution assumption for development reserves; lower dilution from deeper, wider zones Q2 Reserve Reconciliation Q1 Reserve Reconciliation Reserves (as of Dec 31st, 2015) Mined (reconciled) Variations (Mined vs Reserves) Diluted Tonnes Reserves (as of Dec 31st, 2015) Mined (reconciled) Variations (Mined vs Reserves) Diluted Tonnes Diluted Grade Diluted Grade Diluted Ounces Diluted Ounces Reconciled Tonnes Reconciled Tonnes Reconciled Grade Reconciled Grade Reconciled Ounces Reconciled Ounces Tonnes Grade Ounces Total Development Q2 44, ,493 40, , % 106% 96% Total Stope Q2 32, ,827 42, , % 105% 138% Total U/G Q2 76, ,320 82, , % 110% 119% Tonnes Grade Ounces Total Development Q1 44, ,795 42, ,701 96% 147% 142% Total Stope Q1 34, ,991 34, , % 139% 140% Total U/G Q1 79, ,785 77, ,867 98% 144% 141% 8

9 ISLAND GOLD: 2016 DEVELOPMENTAND MINE PLAN 9

10 UNIT COST COMPARISON H vs 2015 PEA Higher unit mining costs: strategic decision to increase higher cost ore development ratio Unit mining costs expected to decline to PEA levels in (lower ore development ratio) H milling and royalty unit costs in-line with PEA; SG&A lower than PEA estimates 2016 H1 Cost/Tonne (C$204/t) 2015 PEA Cost/Tonne (C$149/t) $21 SG&A $11 ROYALTIES $32 MILLING $13 ROYALTIES $32 MILLING $140 MINING $32 SG&A $72 MINING 10

11 MINING UNIT COST OPPORTUNITY Near-term opportunity: lower the mining cost by returning to historical development ratio 250 Long-term planned % 200 Q Historical Data Unit Mining Cost PEA 2017/ Q Q Q Q Q % 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% % of Development Ore of Total Ore Mined 11

12 ISLAND GOLD: GROWTH OPPORTUNITIES 2015 PEA Highlights 2016 PEA Update Phased approach: Phase 1 (800 tpd) Mining from a depth of 450 to 860m; 3 horizons Excludes resources above the 450m, and isolated resource blocks and parallel zones Average annual production of approx. 78,000 gold oz. from 2017 to 2022 at C$552/oz cash costs Potential expansion case to 1,150 tpd 2015 PEA Summary (C$) Tonnes Milled (Mt) 1.7 Head Grade (g/t) 8.67 Mine life excl. transition period (years) 6 Daily mine production (tpd) 801 Gold recovery (%) 96.5 Production (Koz) Average annual gold production (Koz) 78 Total operating cost (C$M) 256 Average cash operating cost (C$/t) 148 Average cash operating cost (C$/oz) 552 Transition Period Project Capital (C$M) 62 Sustaining Capital (C$M) ( ) 40.5 Base Case vs. Expanded Case Base Case (900tpd) vs. expanded case (1,150-1,500tpd) Expanded resource area east-west of 2015 PEA Mining from a depth of 450 to 1,000m Four mining horizons New Life Of Mine (LOM) and operating costs Project and sustaining capital estimates New mining infrastructure at expanded capacity Maximize mining capacity without new infrastructure Milling Opportunities Increased capacity design - allowing for future growth at a minimum cost Gravity circuit vs. extra leaching capacity Permitting and timeline 12

13 ISLAND GOLD: PHASE 1 EXPLORATION PROGRAM 86,500m Drilling program launched in Q3 2015; 75,800m completed 13

14 ISLAND GOLD: Phase 2 Exploration Program, H (36,000m) (58,000m) 14

15 ISLAND GOLD: Regional Surface Exploration Phase 2 (20,000m) 15

16 BEAUFOR MINE: OVERVIEW H Original 2016 Guidance Revised 2016 Guidance Gold Production (oz) 9,318 25,000-30,000 23,000-26,000 (1) Cash costs/oz (C$) (2) $1,441 $1,000-$1,060 $1,150-$1,300 AISC per oz. (C$) (2) $1,812 $1,230-$1,330 $1,420-$1,610 Cash costs/oz (US$) (2)(3) $1,083 $735-$780 $875-$1,000 AISC per oz. (US$) (2)(3) $1,362 $905-$975 $1,080-$1,235 Capital and Exploration Original 2016 Guidance Revised 2016 Guidance Sustaining Capital ($M) $6.8 $ Reserves and Resources Gold Ounces Grade g/t Reserves (oz) (4) /Grade (g/t) 63, M&I (oz) (4) /Grade (g/t) 171, Reserves increased by 95%; mine life increased to 2 years (based on reserves) Inferred (oz) (4) /Grade (g/t) 28, ) Includes 1,165 ounces produced from the Monique Mine in January ) Refer to the Non-IFRS performance measures contained in the Q MD&A 3) An exchange rate of 1.36 Canadian dollars to 1.0 US dollar was used for the original 2016 guidance issued on Feb. 11, The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December. 4) Refer to full 2015 Reserve and Resource information at the end of this presentation Development of the Q Zone; stope mining in Q3 Expected to generate free cashflow ( ) Camflo Mill: capacity of 1,200 tpd provides toll milling opportunities 16

17 WASAMAC: ADVANCED DEVELOPMENT PROJECT Resources Tonnes Grade (g/t Au) Gold Ounces Measured Resources 3,124, ,550 Indicated Resources 12,127, ,125,700 Inferred Resources 18,759, ,605,400 (1) Refer to full 2014 Reserve and Resource information at the end of this presentation March 2012 PEA Summary (C$) Located in the Abitibi gold mining district 15km west of Rouyn-Noranda, Quebec 100% owned, no royalties Close proximity to existing infrastructure Significant exploration potential Mine life 14 Daily mine production (tpd) 6,000 Total Production (Koz) 1,750 Average annual gold production (Koz) 140 Average cash operating cost (C$/t) 46 Average cash operating cost (C$/oz) 716 Total Capital (C$M) 680 NPV 5% (C$M) 71 IRR (5%) (%) 7 Base case parameters: Gold price per ounce of US$1,300 or C$1,350 using a C$:US$ exchange rate of Reviewing PEA to potentially improve base case economics Improved C$ gold price ~$1,725/oz NI PEA released in March 2012 Potential technical and operational enhancements 17

18 WELL POSITIONED FOR SUSTAINABLE GROWTH Quality Asset Base in Canada Growing Production Profile Decreasing Cost Structure Growing Cash Flow Streams Significant Exploration Potential Strong Balance Sheet Favourable Canadian Dollar Exposure Low Shares Outstanding (63M) Island Gold Mine Core Beaufor Mine Q Zone 18

19 APPENDIX

20 RICHMONT MINES: MANAGEMENT TEAM RENAUD ADAMS CHRISTIAN BOURCIER DANIEL ADAM NICOLE VEILLEUX STEVE BURLETON ANNE DAY P. ENG President and P. ENG Vice-President, GEO PHD Vice-President CPA, CA Vice-President CFA, MBA Vice-President, MBA Vice-President, Chief Executive Officer Operations Exploration Finance Business Development Investor Relations MÉLISSA TARDIF MAXIME GRONDIN JEAN BASTIEN MARC-ANDRÉ LAVERGNE LLB CIRC P. ENG, MBA P. ENG Lawyer and Corporate Secretary Director, Human Resources Island Gold Mine General Manager Beaufor Mine and Camflo Mill General Manager 20

21 RICHMONT MINES: BOARD OF DIRECTORS RENÉ MARION P. ENG Chairman of the Board CA MICHAEL PESNER Director and Chairman of the Audit Committee RENAUD ADAMS P. ENG Director, President and Chief Executive Officer ELAINE ELLINGHAM P. Geo., MBA Director CA PETER BARNES Director 21

22 2016 REVISED OPERATIONAL ESTIMATES 2016 Production and Cost Guidance Revised 2016 Operational Estimates Island Gold Revised 2016 Guidance Beaufor Revised 2016 Guidance Original 2016 Guidance Revised 2016 Guidance Gold Ounces Produced (1) 75,000-80,000 23,000-26,000 87,000 97,000 98, ,000 Cash Costs per Ounce (CAD$) (2) $800 - $840 $1,150 - $1,300 $930 - $1,000 $885 - $945 Sustaining Capital per Ounce (CAD$) $240 - $270 $270 - $310 $250 - $280 $250 - $280 Corporate G&A per Ounce (CAD$) - - $95 - $110 $95 - $110 All-in Sustaining Costs per Ounce (CAD$) (2) $1,040 - $1,110 $1,420 - $1,610 $1,275 - $1,390 $1,230 - $1,335 Cash Costs per Ounce (US$) (2)(3) $610 - $640 $875 - $1,000 $680 - $730 $675 - $720 Sustaining Capital per Ounce (US$) (3) $185 - $205 $205 - $235 $185 - $205 $185 - $205 Corporate G&A per Ounce (US$) (3) - - $70 - $80 $75 - $90 All-in Sustaining Costs per Ounce (US$) (2)(3) $795 - $845 $1,080 - $1,235 $935 - $1,015 $935 - $1, Capital Investment Guidance Revised 2016 Capital and Exploration ($M) Island Gold Revised 2016 Guidance Beaufor Revised 2016 Guidance Original 2016 Guidance Revised 2016 Guidance Sustaining Capital (CAD$) $18.9 $7.0 $24.1 $25.9 Project Capital (CAD$) $ $43.4 $46.1 Exploration (CAD$) $16.0 $1.1 $15.5 $17.1 Sustaining Capital (US$) (3) $14.4 $5.3 $17.7 $19.7 Project Capital (US$) (3) $ $31.8 $35.2 Exploration (US$) (3) $12.2 $0.8 $11.4 $13.1 (1) Revised guidance estimates include 1,165 ounces produced from the Monique Mine in Q1 2016, which were not included in original guidance. (2) Cash cost and AISC are non-gaap measures. Refer to the Non-GAAP performance measures section in the second quarter MD&A. (3) An exchange rate of 1.36 Canadian dollars to 1.0 US dollar was used for the original 2016 guidance issued on Feb. 11, The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December. 22

23 MINERAL RESERVES INCREASE BY 187% Mineral Reserves (000 s ounces) Gold oz , Mineral Reserves Growth Significant exploration potential for additional reserve growth Monique Beaufor Island Gold Gold oz. 63, Island Gold Reserves increase by 206% 29% increase in grade to 8.26 g/t 80% of PEA resources converted Mine life of 7 years (based on reserves) Beaufor Reserves increase by 95% Mine life > 2 years (based on reserves) Conversion primarily from the Q Zone December 31 (1) Refer to the detailed mineral reserve and mineral resource tables that follow at the end of this presentation. (2) No changes to Mineral Reserves were made at the Corporation s other properties. Proven and Probable Mineral Reserves (1)(2) Island Gold Mine and Beaufor Mine Gold ounces Change (%) Grams per tonne Change (%) Island Gold Proven & Probable above ~400m 76,700 90,000 (15%) % below ~400m 485,000 93, % % Island Gold Proven & Probable 561, , % % Beaufor Proven & Probable 63,850 32,750 95% (7%) Total Proven & Probable 625, , % % 23

24 MINERAL RESERVES AND RESOURCES Richmont Mines 2015 Mineral Reserve and Resource Estimates 1. Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 2. In 2015, based on a gold price of C$1,300 per ounce and an exchange rate of C$ = US$1.00. (In 2014: gold price of C$1,300 per ounce and C$ = US$1.00). 3. Underground Resources established for the C Zone and six other lateral zones below a vertical depth of -400 metres. December 31, 2015 December 31, 2014 Tonnes Grade Tonnes Grade Ounces (metric) (g/t Au) (metric) (g/t Au) ISLAND GOLD MINE Proven Reserves 2 (above -400m) 97, , , ,700 Probable Reserves 2 (above -400m) 248, , , ,300 Total Proven & Probable (above -400m) 345, , , ,000 Proven Reserves 2 (below -400m) 266, ,100 86, ,150 Probable Reserves 2 (below -400m) 1,504, , , ,600 Total Proven & Probable (below -400m) 1,770, , , ,750 Total Proven & Probable Reserves 2 2,115, , , ,750 Measured Resources (above -400m) 7, ,350 26, ,400 Indicated Resources (above -400m) 235, , , ,450 Indicated Resources 3 (below -400m) 105, , , ,200 Total Measured & Indicated Resources 348, , , ,050 Inferred Resources (above -400m) 412, , , ,800 Inferred Resources 3 (below -400m) 2,402, ,350 3,178, ,950 Total Inferred Resources 2,815, ,050 3,547, ,002,750 BEAUFOR MINE 4 Proven Reserves 2 35, ,350 53, ,100 Probable Reserves 2 266, ,500 91, ,650 Total Proven and Probable Reserves 302, , , ,750 Measured Resources 109, , , ,000 Indicated Resources 734, , , ,850 Total Measured & Indicated Resources 843, , , ,850 Total Inferred Resources 135, , , ,600 MONIQUE MINE 5 Proven Reserves 2 Probable Reserves 2 14, ,450 Total Proven & Probable Reserves 2 14, ,450 Total Indicated Resources 107, , , ,850 WASAMAC GOLD PROPERTY 6 Measured Resources 3,124, ,550 3,124, ,550 Indicated Resources 12,127, ,125,700 12,127, ,125,700 Total Measured & Indicated Resources 15,251, ,402,250 15,251, ,402,250 Total Inferred Resources 18,759, ,605,400 18,759, ,605,400 FRANCOEUR GOLD PROPERTY 6, 7 Measured Resources 40, ,600 40, ,600 Indicated Resources 280, , , ,000 Total Measured & Indicated Resources 320, , , ,600 Total Inferred Resources 18, ,150 18, ,150 TOTAL RESERVES AND RESOURCES Proven & Probable Reserves 2,417, ,550 1,054, ,950 Measured & Indicated Resources 16,870, ,729,300 17,329, ,894,600 Inferred Resources 21,727, ,405,600 23,067, ,767, W Zone and 350 Zone Mineral Reserves and Mineral Resources are included with the Beaufor Mine as at December 31, 2015 and Monique Mineral Reserves are open-pit, and Mineral Resources are located underground directly below the open-pit. 6. Underground Mineral Resources established as of December 31, Francoeur Mine closed in November Ounces

25 TOP INSTITUTIONAL SHAREHOLDERS Firm Name % O/S Shares Held City RBC Global Asset Management Inc ,468,088 Toronto Renaissance Technologies LLC ,204,800 New York OppenheimerFunds, Inc ,932,300 New York Connor, Clark & Lunn Investment Management Ltd ,652,814 Vancouver 1832 Asset Management L.P ,290,000 Toronto Sprott Asset Management LP ,226,941 Toronto Ruffer LLP ,650,000 London Hillsdale Investment Management Inc ,484,000 Toronto Van Eck Associates Corporation ,265,500 New York Manulife Asset Management Limited ,250,000 Toronto Acadian Asset Management LLC ,184,445 Boston Montrusco Bolton Investments Inc ,071,412 Montreal Fonds de Solidarité FTQ ,600 Montreal Sentry Investments Inc ,900 Toronto BMO Asset Management Inc ,000 Toronto Dimensional Fund Advisors, L.P ,000 Austin Eterna Investment Management Inc ,600 Quebec City ZPR Investment Management Inc ,322 Orange City Greystone Managed Investments Inc ,780 Regina Arrowstreet Capital, Limited Partnership ,192 Boston James Investment Research Inc ,590 Xenia Picton Mahoney Asset Management ,000 Toronto O'Shaughnessy Asset Management, LLC ,445 Stamford Norrep Capital Management Ltd ,400 Calgary As of Sept. 12, Source: Nasdaq IR Insight 25

26 ISLAND GOLD MINE C Zone Metal factor (grade x width) as of Dec

27 ISLAND GOLD MINE Near-Mine Lateral Exploration 27

28 ISLAND GOLD MINE Histogram of the Ext C Samples 28

29 ISLAND GOLD MINE Log Normal Probability Plot (Ext C Drill Hole Samples) 29

30 ISLAND GOLD MINE Deep Directional Drilling (Phase 1) 30

31 ISLAND GOLD MINE 2016 Eastern Eastern Lateral Lateral Exploration Exploration Phase 11 (50,100m) metres completed) 31

32 ISLAND GOLD MINES Western Lateral Exploration 32

33 RICHMONT MINES ASSETS VALD OR AREA EXPLORATION PROPERTIES 33

34 RICHMONT MINES ASSETS TIMMINS AREA/ EXPLORATION PROPERTIES 34

35 OUR VISION and STRATEGY Our vision is to become a leading intermediate gold producer focused on the Americas generating superior per share valuation. We are committed to a Sustainable Business Model and a strategy of long-term growth, and will fully utilize the Corporation s strong balance sheet, assets, cash flow, capital structure and the extensive experience of the Corporations Board of Directors and Management Team to build the next leading Canadian based intermediate gold company. Our strategy, in the short term, will focus on becoming a leading junior gold producer by maintaining at all times a superior per share position on operational & financial metrics while maintaining a sustainable and risk adverse approach under a Sustainable Business Model. We are guided by our core corporate values to achieve long term value for all of our stakeholders. By cultivating a culture of responsible performance, we are focused on operating in a sustainable manner while holding ourselves accountable to all of our stakeholders. 35

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37 SUSTAINABLE BUSINESS MODEL We believe in developing Richmont based on the principles of sustainability, in order to deliver sustainable and superior value for all stakeholders with low risk exposure to precious metals. Sustainable Human Resources Making work life sustainable through employee health & safety and wellness programs, improved supervisory & operational planning/implementation practices and skills through training programs. Develop potential leadership abilities through leadership program. Promote Life in Balance; family, work and personal development. Sustainable Process Improvement Reducing inefficiency and waste through quality & performance management by implementation of Lean methods and balanced score card approach. Advanced knowledge and experience with energy efficiency, sustainable waste systems & construction/ building practices. Sustainable Community Development Leadership and consulting skills for promoting comprehensive change toward sustainability in communities and developing world-class relationships with Aboriginal communities. Sustainable Growth Principles Developing sustainable exploration, development, operational and financial practices in order to deliver superior per share value, mitigation/management of risk exposure and discipline approach toward preserving bestin-class balance sheet and capital structure. 37