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June 2015 Corporate Presentation

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June 2015 Corporate Presentation

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June 2015 Corporate Presentation

  1. 1. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 1 TSX – NYSE MKT: RIC www.richmont-mines.comJUNE2015
  2. 2. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 2 2 Safe harbor statement & cautionary note to U.S. investors concerning resource estimates TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines This presentation contains forward-looking statements that include risks and uncertainties. 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 periodic reports and annual notice. The resource estimates in this presentation were prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of Regulation 43-101 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. 001-14598, which may be obtained from us or from the SEC’s web site: http://sec.gov/edgar.shtml.
  3. 3. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 3 TSX - NYSE MKT: RIC 3 Richmont Mines Highlights Copyright 2015 by Richmont Mines Island Gold – Transformational New Discovery in Ontario  Opportunity to transform the mine into a longer-life, higher-production and lower cost operation with a relatively low investment and development risk  Excellent exploration potential  Potential to deliver years of industry-leading high-quality growth from a mining-friendly and safe jurisdiction Sound Balance Sheet, Tight Capital Structure (at March 31, 2015)  $70.7 million cash position; 57.9 million shares outstanding  Minimal long-term debt of $5.2 million  $2.5 M related to equipment leasing, $1.3 M in contract payment holdbacks Track Record of Success in Canada  Consistent operating history plus continued organic growth  Over 1.5 million ounces of gold produced in the Corporation’s 20+ year history Quality Asset Base in Safe Jurisdictions  Expected production of 78,000 - 88,000 ounces of gold for 2015  Global gold resource of 4.9 million ounces in very stable jurisdictions
  4. 4. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 4 Corporate Overview TSX - NYSE MKT: RIC 4 RIC: (May 29, 2015) TSX (CAN$) NYSE MKT (US$) Closing Price $3.83 $3.07 52-week trading range $1.21 - $4.55 $1.11 - $3.68 Market capitalization $221 million $178 million Average 3 month daily trading volume (shares) ~ 85,800 ~ 129,800 (in CAN$) Cash Position (March 31, 2015) $70.7 million Long-term Debt (March 31, 2015) $5.2 million Current Enterprise Value $156 million 2014 Operating Cash Flow $0.61 / share 2014 Net Free Cash Flow1 $0.09 / share Shares outstanding (millions, at Mar 31, 2015) 57.9 Management and Director Ownership (%) ~9% Number of employees (March 31, 2015) 400 Copyright 2015 by Richmont Mines (1) A non-GAAP performance measure, calculated by the Corporation as operating cash flows less capital expenditures divided by shares outstanding.
  5. 5. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 5 TSX - NYSE MKT: RIC 5Copyright 2015 by Richmont Mines Ontario Quebec 2014: 52,425 Au ozs sold (1) 2015 F: 33,000 - 37,000 Au ozs 1,200 Tpd Beaufor @ 50 km 2014: 42,078 Au ozs sold 2015 F: 45,000-50,000 Au ozs On-site 850 tpd mill Richmont Operations Strong Production in Excellent Mining Jurisdictions
  6. 6. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 6 Copyright 2015 by Richmont MinesTSX - NYSE MKT: RIC 6 Key Metric (in CAN$ thousands, ex. per share data and where noted) FY 2014 (12 mos. ended Dec. 31) FY 2013 (12 mos. ended Dec. 31) FY 2012 (12 mos. ended Dec. 31) Gold sales (ounces) 94,503 63,443 60,741 Average selling price (US$/oz) $1,264 $1,378 $1,666 Average cash cost (US$/oz) $866 $1,095 $1,044 Net earnings (loss) from cont. operations 8,182 ($33,162) ($2,977) Adjusted net earnings (loss ) 8,182 ($11,041)2 ($2,977)1 Adjusted EPS $0.18 ($0.28) 2 ($0.08) 1 Operating cash flow 27,279 3,456 7,656 Total assets 148,771 123,328 148,244 Shareholders equity 107,957 86,353 118,363 (1) FY2012 Adjusted Net Loss is a non-IFRS Financial Performance Measure. This number excludes a $49,066 ($42,038 after-tax) loss from the discontinued Francoeur Mine operation. (2) FY2013 Adjusted net loss is a non-IFRS Financial Performance Measure. This number excludes a $1,098 loss from the discontinued Francoeur Mine operation, a write-down of the W Zone Mine of $13,472, a write-off of deferred income and mining tax assets of $7,484, and a write-off of financing costs of $1,165. Richmont Mines Robust 2014 Financial Results
  7. 7. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 7 TSX - NYSE MKT: RIC 7Copyright 2015 by Richmont Mines Richmont Mines Solid Consolidated Q1 2015 Results FY 2014 Gold ounce sales 94,503 Cash cost 1 / oz (US$) $866 FY 2015 Forecast & Guidance Gold ounce sales 78,000 – 88,000 Planned sustaining Capex2 $26.6 million Island Gold acc. dev. Capex $29.2 million Cash cost1,4 / oz (US$) $850 - $940 Sustaining Capex 2 /oz (US$) $365 - $415 AISC 3,4 / oz (US$) $1,215 - $1,355 Q1 2015 Gold ounces produced 25,474 Gold ounce sales 24,791 Cash cost1 / oz (US$) $789 AISC 3 / oz (US$) $1,011 Key Metric (in CAN$ thousands, ex. per share data and where noted) Q1 2015 (3 mos. ended March 31) Q1 2014 (3 mos. ended March 31) Gold produced (ozs) 25,859 21,002 Gold sales (ozs) 24,791 20,412 Avg. price (US$/oz) $1,205 1,306 Avg. cash cost1 (US$/oz) $789 $1,060 AISC3(US$/oz) $1,011 $1,255 Net earnings (loss) $4,632 ($1,903) Net earnings (loss)/ share $0.09 ($0.05) Op. Cash Flow $9,130 $2,379 Op. Cash Flow / share $0.17 $0.06 Investments in Prop., Plant & Equip. $9,225 $5,920 (1) Cash costs include royalties, and are a non-GAAP measure. (2) Sustaining CAPEX includes sustaining Capex planned at both the Ontario and Quebec assets, corporate G&A, and exploration costs at the Beaufor Mine. (3) AISC = All-in-sustaining-cost, a non-GAAP measure. (4) Assuming exchange rate of CAN$1.00 = US$0.91 (US$1.00 = CAN$1.10). Good production, net earnings & cash flow; costs were below annual guidance.
  8. 8. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 8 TSX - NYSE MKT: RIC 8 Island Gold Mine Location Map Copyright 2015 by Richmont Mines
  9. 9. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 9 Copyright 2015 by Richmont MinesTSX - NYSE MKT: RIC 9 Consolidated ownership...  Acquired 31% minority ownership of four claims in return for a 3% NSR Reaffirmed future growth potential of extension at depth...  Step-out exploration drilling results highlighted potential of the eastern down plunge, and at depth:  19.87 g/t Au over 3.93 metres at a depth of 1,203 metres  7.44 g/t Au over 8.49 metres at a depth of 858 metres Infrastructure development significantly advanced...  Main ramp at –660 metres and secondary eastern ramp at –470 metres  Strategic 620 level drift extended to 150 metres, definition drilling initiated Established estimated mineral Reserves1 below –400 metres  Proven & Probable Reserves: 431,500 tonnes @ 6.76 g/t Au, 93,750 ozs  Indicated Resources: 438,000 tonnes @ 10.95 g/t , 154,200 Au ozs  Inferred Resources: 3.2 M tonnes @ 9.00 g/t, 919,950 Au ozs (1) Mineral Reserves are exclusive of Resources. In 2014, based on a gold price of US$1,200/ozand an exchange rate of CAN$1.0833 = US$1.00. Island Gold Mine 2014 Overview: Reshaping for future growth
  10. 10. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 10 Island Gold Mine Building on a Strong Foundation TSX - NYSE MKT: RIC 10Copyright 2015 by Richmont Mines (1) Cash costs include royalties, and is a non-GAAP measure. (2) AISC = All-in-sustaining-cost, a non-GAAP measure. (3) All performance data for FY2013 & FY2014 are based on ounces sold. For Q1 2015, tonnes, gold recovery and head grade data are based on ounces produced. (4) Assuming exchange rate of CAN$1.00 = US$0.91 (US$1.00 = CAN$1.10). ISLAND GOLD MINE3 FY 2013 12 mo ended Dec.31 FY2014 12 mo ended Dec 31 Q1 2015 3 mo ended Mar 31 Tonnes 244,631 233,202 43,785 Gold recovery (%) 96.1% 96.3% 97.2% Head grade 4.65 g/t 5.83 g/t 7.87 g/t Gold ounces sold 35,113 42,078 8,923 Avg. cash cost/oz (US$) 1 1,092 889 1,139 Avg. sales price/oz (US$) 1,392 1,266 1,211 2014 Gold ounce sales: 42,078 Cash cost 1 / oz (US$) $889 2015 Forecast Gold ounce sales 45,000 – 50,000 & Guidance Cash cost 1,4 / oz (US$) $850 - $940 AISC 2,4 / oz (US$) $1,230 - $1,360 Q1 2015 Gold ounces produced 10,764 Gold ounce sales 8,923 Cash cost 1 /oz (US$) $1,139 AISC 2 / oz (US$) $1,485
  11. 11. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 11 Crown pillar W E - 1,000 m - 500 m GOUDREAULOCHALSH ISLAND EXT1 EXT2 2015 Planned Ramp and Drift Development Conceptual Development 2015 Planned Ore Development 11TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines Island Gold Mine Extending Mine Life at Depth.... 2014 production successfully replaced 2015 Stoping Mined out Reserves – Resources 31/12/14 Actual Ramp and Drifts PRODUCTION TO DATE (ABOVE -400 M) 303,000 ozs of gold, avg. 5.7 g/t Au Reserves & Resources (at Dec. 31/14) Proven & Probable: 90,000 ozs @ 6.04 g/t Measured & Indicated: 64,850 ozs @ 6.83 g/t Inferred resources: 82,800 ozs @ 6.97 g/t LOWER EXTENSION (BELOW -400 M) Reserves & Resources (at Dec. 31/14) Proven & Probable: 431,500 t @6.76 g/t Au 93,750 ozs Indicated 438,000 t @ 10.95 g/t Au 154,200 ozs Inferred 3,178,000 t @ 9.00 g/t Au 919,950 ozs 190 Level
  12. 12. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 12 TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines 12 $3.8 million spent in Q1 2015 $4.7 million spent in Q1 2015 Island Gold Mine Positioning Our Cornerstone Asset * Includes -620 m level exploration drift. Significant $48.3 million investment planned in 2015.... Sustaining Capital:  Fixed assets & equipment $10.7 million  11,125 m of delineation drilling $0.7 million  Mine development $7.7 million TOTAL: $19.1 million Project and Exploration Costs:  41,000 m of underground exploration drilling $3.2 million  20,000 m of surface exploration drilling $2.0 million  Fixed assets $1.8 million  Acc. mine development work * $19.0 million  Acc. delineation drilling $2.2 million  Mining & milling studies $1.0 million TOTAL: $29.2 million OUR OBJECTIVE: to transform Island Gold into a long-life, high production and low cost operation, able to potentially deliver years of industry-leading high-quality growth from a mining-friendly and safe jurisdiction.
  13. 13. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 13 13TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines Island Gold Mine 2015 – Beginning a transformational year SHAREHOLDER SCORECARD: 1. Ramp development: complete planned accelerated development of ramps, and related electrical, water management work 2. 620 metre level drift: complete definition/delineation drilling to upgrade to M&I and then to Reserves 3. Exploration drilling: grow Resource base via 61,000 metres of drilling 4. Mining & milling studies: complete studies and internal review by year- end 2015 to determine long-term growth scenario. 5. Fixed assets & equipment: make targeted and strategic investments to position the mine for game-changing growth.  Main ramp at -675 m  East ramp at -470 m  Drift extended to 290 m  4,378 m delineation drilling  3,331 m of exploration drilling  Drilling focused in 2nd half/15  Studies initiated  Preliminary results: Q3 2015  Electrical & water pumping lines  More upgrades in Q2/Q3 Q1 2015 PROGRESSOBJECTIVE Main ramp to -750 metres, 2nd ramp to -570 metres Extend drift to 600 metres; complete 59,000 m of drilling Evaluate eastern extension potential Evaluating base case and alternative mine/mill options Repositioning & asset upgrade investments
  14. 14. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 14 hgb Island Gold Mine 2015 Planned Exploration Drilling 190 Level Crown pillar W E - 1,000 m - 500 m GOUDREAULOCHALSH ISLAND EXT1 EXT2 TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines Underground exploration 41,000 m Surface exploration 20,000 m Mined out Reserves – Resources 31/12/2014 Actual Ramp and Drifts 400-528-09 7.44 / 8.49 400-528-10 4.44 / 6.07 400-528-10 4.79 / 2.87 GD-14-01C 19.87 / 3.93 C Zone Intersections (Au cut 95 g/t) Au g/t / true thickness (metres) 2015 Exploration drift 14 Drill Targets 2015 PLANNED DRILLING Drilling will test eastern down plunge extension and areas closer to surface. Previous holes
  15. 15. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 15 Island Gold Mine 2015 Planned Development & Drilling Activities 190 Level Crown pillar W E - 1,000 m - 500 m GOUDREAULOCHALSH ISLAND EXT1 EXT2 TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines Definition drilling 14,500 m 2015 Planned Ramp and Drift Development Conceptual Development 2015 Planned Ore Development 2015 Stoping Mined out Reserves – Resources 31/12/2014 Actual Ramp and Drifts 15 2015 PLANNED DRILLING Drilling will define & delineate between -500 metres and -1,000 metres Delineation drilling 44,500 m 2015 OBJECTIVES 1. Extend main access ramp to -750 m 2. Extend East Ramp to -570 m 3. Extend 620 level drift to ~600 m length
  16. 16. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 16 TSX - NYSE MKT: RIC 16Copyright 2015 by Richmont Mines Ontario Quebec Island Gold Mine Mining Studies Consultant firm was retained for the mining studies Phase 1 of the mining studies (summer 2015) will consist of:  Optimization of Base Case scenario (800 tpd by ramp), which consists of:  Mining by ramp down to 850 metre level  Developing an optimized mine plan allowing to mine a minimum of 800 tpd, depleting ounces while maintaining a center of mass (tonnes-km) a level 700/750 at all time  Time study confirmed that 800 tpd could by hauled from level 725 with current ramp size  Analysis of capacity of deposit without underground infrastructure limitations  Selection of top scenario allowing increased mining capacity (possibilities include shaft options, second ramp, conveyors etc) Should Phase 1 provide economics for an expansion, then Phase 2 (end 2015/early 2016) would consist of advancing the top scenario to a PEA level.
  17. 17. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 17 TSX - NYSE MKT: RIC 17Copyright 2015 by Richmont Mines Quebec Assets Beaufor Mine, Monique Mine & Camflo Mill Camflo Mill Quebec Assets:  2014 gold sales : 52,425 ounces 1  2015 forecasted gold sales: 33,000 – 37,000 ounces  Operations strategically located near infrastructure 50 km from Camflo Mill & 25 km from Val-d’Or, QC  Objective: maintain free cash flow positive status Beaufor Mine:  High-grade underground mine in production since 1996 (500,000+ Au ozs produced)  FY2014: cash cost/oz US$856 Monique Mine:  Small open-pit with a planned short mine life  Mining ended Jan/15, stockpile will be milled through September 2015  FY2014: cash cost/oz US$824 (1) Includes 4,929 ounces of gold sold from the W Zone.
  18. 18. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 18 Beaufor Mine Progress Report 49,196 oz 49,196 oz 41,686 oz 2014 Achievements:  Maintained operating efficiency to generate cash flow in 2014  Continuing to extend mine life  Mining the newly developed “M Zone” which has solid grades and additional tonnage  Commenced development drift to the near surface 350 zone in 2014 2015 Plans:  18,200 m of exploration drilling  11,800 m of definition drilling  Evaluating potential of Q Zone (decision expected Q2 2015) TSX - NYSE MKT: RIC 18Copyright 2015 by Richmont Mines Mining and Development Exploration
  19. 19. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 19 Quebec Operations An excellent start to 2015 49,196 oz 19 FY 2014 - Quebec Gold ounce sales 52,425 FY 2015 Forecast & Guidance Cash cost 1 / oz (US$) $846 Gold ounce sales 33,000 – 37,000 Q1 2015 - Quebec Sustaining Capex 2 $8.5 million Gold ounces produced 15,095 Cash cost 1,5 /oz (US$) $850 - $940 Gold ounce sales 15,868 Sust. Capex 2,5 /oz (US$) $210 - $230 Cash cost 1 / oz (US$) $593 AISC 3,5 /oz (US$) $1,060 - $1,170 AISC 3 / oz (US$) $642 KEY METRIC BEAUFOR MINE 4 MONIQUE MINE 4 FY 2013 Ended Dec. 31 FY2014 Ended Dec 31 Q1 2015 3 mos. ended Mar 31 FY2014 Ended Dec 31 Q1 2015 3 mos. ended Mar 31 Tonnes 124,569 111,474 29,751 279,884 63,938 Gold recovery (%) 97.75% 97.91% 98.64% 96.03% 97.23% Head grade 5.88 g/t 6.84 g/t 8.44 g/t 2.72 g/t 3.57 g/t Gold ounces sold 23,028 24,006 8,831 23,490 7,037 Avg. cash cost 1 /oz (US$) 1,051 856 730 824 420 Avg. sales price/oz (US$) 1,376 1,267 1,200 1,256 1,207 Strong Q1 2015 results ; good production and costs below annual guidance. (1) Cash costs include royalties, and are a non-GAAP measure. (2) Sustaining CAPEX includes reclamation & remediation costs. and exploration costs at Beaufor, and Capex at Camflo Mill. (3) AISC = All-in-sustaining-cost, a non-GAAP measure. (4) All performance data for FY2013 & FY2014 are based on gold ounces sold. Q1 2015 tonnes, gold recovery and head grade data are based on gold ounces produced. (5) Assuming exchange rate of CAN$1.00 = US$0.91 (US$1.00 = CAN$1.10).
  20. 20. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 20 800 600 400 800 1000 200 600 1175 1350 400 RICHMONT Globex Horne-Creek fault Resources as of December 31, 2012 Cut-off: 1.5 g/t Au Measured & Indicated Resources: 15,251,500 T at 2.86 g/t Au ; 1,402,250 ozs Inferred Resources: 18,759,000 T at 2.66 g/t Au ; 1,605,400 ozs Wasamac Gold Property “Untapped” 3 Million oz Resource  Near infrastructure: 15 km west of Rouyn-Noranda, Quebec  Past production of 252,923 Au ozs @ 4.16 g/t (1965-1971)  Preliminary Economic Assessment completed in March 2012  Good optionality on gold price  100% owned, no royalties TSX - NYSE MKT: RIC 20Copyright 2015 by Richmont Mines - 1,000 m - 500 m
  21. 21. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 21 TSX - NYSE MKT: RIC 21 Richmont Mines Well positioned for growth Copyright 2015 by Richmont Mines  Island Gold – Transformational new discovery  Sound balance sheet, tight capital structure  Track record of success  Quality asset base in safe jurisdictions
  22. 22. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 22 TSX - NYSE MKT: RIC 22 Renaud Adams, Eng. President & CEO radams@richmont-mines.com 416-368-0291 x 101 Steve Burleton, CFA VP, Business Development sburleton@richmont-mines.com 416-368-0291 x 102 Jennifer Aitken, MBA Manager, Investor Relations jaitken@richmont-mines.com 514-397-1410 Copyright 2015 by Richmont Mines Richmont Mines Inc.
  23. 23. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 23 TSX - NYSE MKT: RIC 23 Veteran Operator Numerous successful mine openings & closings Copyright 2015 by Richmont Mines 1991 1993 1997 2001 2007 2014 Island Gold Mine Francoeur Mine Monique Mine 2001 Camflo Mill Beaufor MineNugget Pond Mine 2006 East Amphi MineHammerdown Mine 2006 – 2007 production ~ 37,350 Au ozs produced 2001 - 2004 production: ~ 143,500 Au ozs In operation: 320,000+ Au ozs produced to date In operation: 23,490 Au ozs produced in 2014 In operation: 500,000 + Au ozs produced to date Mill in operation: Processes ore from Beaufor & Monique 1991-2001 production: ~345,000 Au ozs 1998-2001 production: ~170,000 Au ozs
  24. 24. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 24 BOARD OF DIRECTORS Greg Chamandy, Exec Chairman Co-Founder and Former CEO of Gildan Activewear Elaine Ellingham, P. Geo., MBA Previously TSX, IAMGOLD, Campbell Resources, Rio Algom, René Marion, Eng. Former CEO AuRico Gold Michael Pesner, CA President of Hermitage Canada Finance, previously KPMG Renaud Adams, Eng. President & CEO Directors and Management Senior Credentials in a Junior TSX - NYSE MKT: RIC 24Copyright 2015 by Richmont Mines MANAGEMENT TEAM Renaud Adams, Eng. President & CEO Nicole Veilleux, CPA, CA V.P. Finance - Experience: Auditor at KPMG LLP, Norbord Industries Steve Burleton, CFA V. P. Business Development - Experience: Scotia Capital, Wellington West Capital Markets, and a publicly traded fertilizer producer Daniel Adam, Geo., PhD V. P. Exploration - Experience: Selbaie Mines Jennifer Aitken, MBA Investor Relations Manager Maxime Grondin, CIRC Human Resources and Health and Safety Manager
  25. 25. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 25 49,196 oz (1) Resources are exclusive of Reserves, and do not have demonstrated economic viability at this time. (2) Established on December 31/14, using a gold price of US$1,200/oz and an exchange rate of CAN$1.0833=US$1.00. In 2013, a price of US$1,225/oz and an exchange rate of CAN$1.06=US$1.00were used. (3) Underground Resources established for the C Zone and six other lateral zones below a verticaldepth of -400 metres. (4) W Zone and 350 Zone Reserves and Resources are included with the Beaufor Mine as at December31, 2014.. (5) Monique Reserves are open-pit, and Resources are located underground directly below the open-pit. (6) Underground Resources established as of December 31, 2012. (7) FrancoeurMine closed in November 2012. 25 RICHMONT MINES INC. MINERAL RESERVES + RESOURCES 1 AS OF DEC. 31, 2014 AS OF DEC. 31, 2013 Tonnes (metric) Grade (g/t Au) Au ozs contained Tonnes (metric) Grade (g/t Au) Au ozs contained Island Gold Mine P & P Reserves 2 (above -400 m) 463,000 6.04 90,000 644,500 6.01 124,450 P & P Reserves 2,3 (below -400 m) 431,500 6.76 93,750 88,500 6.70 19,050 Total P & P Reserves 2 895,000 6.39 183,750 733,000 6.09 143,500 M & I Resources (above -400 m) 295,500 6.83 64,850 283,500 7.07 64,450 Indicated Resources3 (below -400 m) 438,000 10.95 154,200 456,000 11.52 168,900 Total M & I Resources 733,500 9.29 219,050 739,500 9.81 233,350 Inferred Resources (above -400 m) 369,500 6.97 82,800 363,000 7.09 82,750 Inferred Resources 3 (below -400 m) 3,178,000 9.00 919,950 3,196,000 9.29 954,600 Total Inferred Resources 3,547,500 8.79 1,002,750 3,559,000 9.07 1,037,350 Beaufor Mine4 P & P Reserves 2 144,500 7.06 32,750 212,500 6.43 43,950 M & I Resources 917,000 6.44 189,850 911,000 6.44 188,500 Inferred Resources 743,000 6.51 155,600 906,000 6.50 189,200 Monique5 P & P Reserves2 14,500 3.16 1,450 416,000 2.30 30,700 Indicated Resources 107,500 4.88 16,850 107,500 4.88 16,850 Francoeur6 M & I Resources 320,000 6.47 66,600 320,000 6.47 66,600 Inferred Resources 18,000 7.17 4,150 18,000 7.17 4,150 Wasamac7 M & I Resources 15,251,500 2.86 1,402,250 15,251,500 2.86 1,402,250 Inferred Resources 18,759,000 2.66 1,605,400 18,759,000 2.66 1,605,400 TOTAL GOLD P & P Reserves 1,054,000 6.43 217,950 1,361,500 4.98 218,150 M & I Resources 17,329,500 3.40 1,894,600 17,329,500 3.42 1,907,550 Inferred Resources 23,067,500 3.73 2,767,900 23,242,000 3.80 2,836,100 Copyright 2015 by Richmont Mines
  26. 26. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 26 Island Gold Mine Site Map & Infrastructure TSX - NYSE MKT: RIC 26Copyright 2015 by Richmont Mines
  27. 27. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 27 TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines S NCrown Pillar -900 m Shear Corridor 100 m wide 535 Level Zone Composite Longitudinal Section Typical Section -1,300 m -500 m Surface Island Gold Cross Section (looking west) Currently at - 660 m depth 27 Ramp access from surface Island Gold Mine Structural flexure with wider zones and higher grades below Island Gold Lower Mine Reserves & Resources (below -400 m, at 12/ 31/14) Proven & Probable Reserves 431,500t at 6.76 g/t Au; 93,750 oz Indicated Resources: 438,000 t at 10.95 g/t Au; 154,200 oz Inferred Resources: 3,178,000 t at 9.00 g/t Au; 919,950 oz
  28. 28. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 28 2000 100 meters 4900m Island Gold Mine C Zone - Metal Factor (grade x width) Crown pillar W E - 1,000 m - 500 m LOCHALSH ISLAND EXT1 EXT2 Interpreted plunge of deposit axis 28 Cut off (3.75 g/t Au / 2.0 m) 327 30 20 10 5 0 Metal Factor Grade (g Au/t) x true width (metres) Average mining grade (5.84 g/t Au / 2.4 m) TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines 11.25g/t Au / 6.56m 13.3g/t Au / 3.6m 19.8g/t Au / 3.93m
  29. 29. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 29 2000 100 meters 4900m Island Gold Mine C Zone – Grade (g/t Au) 29TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines Cut Grade (95g/t Au) Crown pillar W E - 1,000 m - 500 m LOCHALSH ISLAND EXT1 EXT2
  30. 30. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 30 Island Gold Mine C Zone – True Width (metres) 30TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines 2000 100 meters 4900m Crown pillar W E - 1,000 m - 500 m LOCHALSH ISLAND EXT1 EXT2 True width (metres)
  31. 31. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 31 Island Gold Mine Highlights – Results of Face Sampling – C Zone 31TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines LEVEL CHANNEL FACE SAMPLING Length (m) Au (g/t) Cut 47 g/t Au True Thickness (m) 515W 37 10.53 2.2 535W 83 9.82 2.5 560W 120 9.69 2.8 585W 92 6.94 2.9 610W 78 9.48 2.4 635W 126 14.00 2.5 535E 34 12.05 2.4 585E 70 7.18 4.4 610E 82 9.91 3.0 635E 74 12.54 2.7  Reconciliation of development (up to April 30, 2015), to the December 2014 resource model of 25,845 tonnes at 5.84 g/t Au, showed a 13% reconciliation to grade, returning 22,798 t at 6.59 g/t Au.
  32. 32. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 32 TSX - NYSE MKT: RIC 32Copyright 2015 by Richmont Mines Island Gold Mine Mill Production Opportunity 2015 objective: fill the mill to rated capacity of 800 tpd (based on 365 days) 400 450 500 550 600 650 700 750 800 850 900 2010 2011 2012 2013 2014 Q1 2015 Average tonnes per day
  33. 33. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 33 33Copyright 2015 by Richmont Mines Island Gold Mine Mining Unit Cost Opportunity TSX - NYSE MKT: RIC Near-term opportunity: lower the mining cost by returning to historical development ratio 0 50 100 150 200 250 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Q1 2015 UnitMiningCost % of Development Ore of Total Ore Mined Long-term planned ratio
  34. 34. Copyright 2014 by Richmont MinesTSX - NYSE MKT: RIC 34 34 Island Gold Mine Milling and Mining Studies SVP vérifier, clarifier ou ajouter de l’info Island Gold Mine Mine Productivity Opportunities • Reduce dilution levels at lower depths  Average width is 4.5 metres versus 2.7 metres in upper mine • Reduce operating and non-operating delays  Equipment travel time, usage and productivity rates being evaluated • Implement Performance Management (dashboard) • Cost savings opportunity in procurement area • Evaluating different mining methods TSX - NYSE MKT: RIC Copyright 2015 by Richmont Mines 34

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