Richmont Reports Solid Operational First Quarter; Island Gold Mine Produced 23,772 Ounces at Reduced Cash Costs of $668 (US$504) per Ounce

Toronto (ots/PRNewswire) -

Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the
"Corporation"), reports first quarter company-wide production of
29,401 ounces of gold, at cash costs1 of $791 (US$598) per ounce. The
strong operational performance was supported by another consecutive
quarter of solid production from the Island Gold Mine of 23,772
ounces of gold, at cash costs of $668 (US$504) per ounce, a 19%
decrease over the prior quarter. Overall, Richmont is well positioned
to achieve annual production and cash cost guidance for the year.
(All amounts are in Canadian dollars unless otherwise indicated.)

FIRST QUARTER ANNUAL HIGHLIGHTS:

- Company-wide production was 29,401 ounces of gold (28,528 ounces
sold) for the quarter, driven by production from the cornerstone
Island Gold Mine of 23,772 ounces of gold (22,649 ounces sold).
- Company-wide cash costs for the quarter were $791 (US$598) per
ounce. Cash costs from the Island Gold Mine are below current
guidance levels at $668 (US$504) per ounce, a 19% reduction over
the prior quarter.
- The Island Gold Mine reported record underground mine and mill
productivities for the quarter, averaging 1,019 and 926 tonnes per
day, respectively.
- Revenues for the quarter were $46.5 (US$35.1) million.
- As of December 31, 2016, Mineral Reserves at the cornerstone Island
Gold Mine increased by 34% (net of depletion) to 752,200 ounces of
gold, at an increased grade of 9.17 g/t gold. Inferred Resources
increased by 30% to 995,700 ounces of gold at an increased grade of
10.18 g/t, at an average discovery cost of less than $35 (US$26)
per ounce.
- Recent exploration drilling results identified new high-grade
mineralization located approximately 800 metres east of the main
Island Gold deposit. Hole GD-640-05 intersected 20.6 g/t gold over
11.3 metres (core length), demonstrating the significant potential
for near-term and continued resource growth. Additionally, early
results from delineation drilling completed within the Expansion
Case Preliminary Economic Assessment (Expansion Case PEA) area,
demonstrate the significant potential to further expand reserves at
higher than current average grades.
- Effective, March 15, 2017, Richmont appointed Mr. Robert J. Chausse
as Chief Financial Officer, strengthening the senior management
team.

"The Island Gold Mine has delivered another quarter of solid
production as well as lower cash costs, confirming the potential of
this operation as we continue to transform the mine into one of the
lowest cost underground gold producers in the Americas. The Expansion
Case PEA is nearing completion and we remain confident that we will
issue a positive report that will support the 1,100 tonnes per day
expansion scenario while achieving our overall low cost objective,"
commented Renaud Adams, President and CEO. "Along with the strong
operational performance achieved during the quarter, we continue to
unlock the potential of the Island Gold Mine through our strategic
drilling program. Initial delineation drilling results demonstrate
the potential for short-term reserve growth at higher grades within
the main deposit. Recent exploration drilling has also shown the
potential of the deposit to the east of the main deposit area where
new high-grade mineralization was identified close to existing
infrastructure that could also provide additional expansion
opportunities."

____________________________

1 Refer to the Non-IFRS Performance Measures disclosure presented
at the end of this press release.

First quarter operational highlights for the Island Gold and
Beaufor Mines are provided in the tables below:

Production Highlights

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Q1 17 2017 Guidance
Gold Produced
(oz)
Island
Gold
Mine 15,076 14,203(1) 26,589 18,617 14,031(3) 24,086
23,772 87,000-93,000
Beaufor
Mine 5,714 5,652 4,615 4,703 4,825 5,419
5,629 23,000-27,000
Monique 1,165(2
Mine 2,688 2,525 ) - - -
- -
Total
Produced (oz) 23,478 22,380 32,369 23,320 18,856 29,505
29,401 110,000-120,000

(1) Q4 2015 production includes a 3 week underground mine
shutdown.
(2) Processing of the remaining stockpile pad at the depleted
Monique Mine
was completed at the end of January 2016.
(3) Q3 2016 production includes a 16-day underground mine
shutdown and a
25-day mill shutdown.

Cash Cost Highlights

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16
Q1 17 2017 Guidance
Cash Costs
($)(1)
Island
Gold
Mine $883 $1,019 $667 $757 $947 $826
$668 $715-$765
Beaufor
Mine $972 $1,081 $1,396 $1,484 $1,408 $1,480
$1,265 $1,265-$1,320
Monique
Mine $1,002 $974 $1,182 - - -
- -
Total Cash
Costs ($)(1) $921 $1,028 $800 $895 $1,054 $952
$791 $835-$885
Cash Costs
(US$)(1)
Island
Gold
Mine $675 $763 $486 $588 $726 $619
$504 $550-$590(2)
Beaufor

Mine $742 $810 $1,017 $1,152 $1,080 $1,110
$956 $975-$1,015(2)

Monique
Mine $766 $729 $861 - - -
- -
Total Cash
Costs (US$)(1) $703 $770 $583 $695 $808 $714
$598 $640-$680(2)

(1) Refer to the Non-IFRS Performance Measures disclosure
presented at the
end of this press release.
(2) Assuming an exchange rate of 1.30 Canadian dollars to 1.0 US
dollar.

Operational Highlights

Q3 15 Q4 15 Q1 16 Q2 16 Q3 16
Q4 16 Q1 17
Island Gold Mine
Underground tpd 669 657(1) 853 911 735(2)
977 1,019
Mill tpd 722 656(1) 834 878 640(2)
903 926
Mill head grade
(g/t) 7.27 7.62 11.31 7.51 7.70
9.31 9.18
Beaufor Mine
Underground tpd 338 306 323 286 282
302 354
Mill head grade
(g/t) 5.93 6.30 4.96 5.27 5.62
6.16 6.0

(1) Q4 2015 underground productivity includes a 3 week mine
shutdown and a 2
week mill shutdown.
(2) Q3 2016 productivity includes a 16-day underground mine
shutdown and a
25-day mill shutdown.

Island Gold Mine Highlights

- Production for the quarter was 23,772 ounces of gold (22,649 ounces
sold). The mine is now well positioned to achieve the high-end of
production guidance for the year of 87,000-93,000 ounces.
- Cash costs for the quarter were $668 (US$504) per ounce, below
guidance for the year and a 19% reduction over prior quarter. The
operating unit costs for the quarter were $181 (US$137) per tonne
milled, in-line with the 2017 mine plan.
- Mill head grade for the quarter was 9.18 g/t gold, representing an
inline grade reconciliation (mined vs. December 31, 2016 Mineral
Reserves) for the quarter. The forward-looking 2017 mine plan
continues to forecast a mill head grade of approximately 8.90 g/t
gold.
- Record underground mine and mill productivities for the quarter,
averaging 1,019 and 926 tonnes per day, respectively, with
lower-grade underground ore stockpiled for future processing,
resulting in an improved overall mill head grade for the quarter.
- During the quarter, long-hole stope mining continued in the first
and second mining horizons and development in ore was advanced as
planned in the higher-grade third mining horizon. Stoping in the
third mining horizon is expected to begin in the fourth quarter.
- The development of the main ramp continued and reached a vertical
depth of 860 metres at the end of the quarter, which is in-line
with the 2017 development plan and as contemplated in the upcoming
Expansion Case PEA.
- As of December 31, 2016, Mineral Reserves at the cornerstone Island
Gold Mine increased by 34% (net of depletion) to 752,200 ounces of
gold, at an increased grade of 9.17 g/t gold. Inferred Resources
increased by 30% to 995,700 ounces of gold at an increased grade of
10.18 g/t, and at an average discovery cost of less than $35
(US$26) per ounce. (see press release dated January 31, 2017 and
the technical report titled "Technical Report on the Mineral
Reserve and Resource Estimate as of December 31, 2016 for the
Island Gold Mine" dated March 17, 2017).
- Recent exploration drilling results identified new high-grade
mineralization located approximately 800 metres east of the main
Island Gold deposit. Hole GD-640-05 intersected 20.6 g/t gold over
11.3 metres (core length), demonstrating significant potential for
near-term and continued resource growth. Additionally, early
results from delineation drilling completed within the Expansion
Case PEA area, indicates the significant potential to further
expand our reserves at higher than current average grades. (see
press release dated March 30, 2017).
- Expansion Case PEA: The Corporation is well advanced to release the
results of the Expansion Case PEA during the second quarter, as
previously disclosed. The study considers the most cost and capital
effective plan to mine the portion of the mineral resources that is
located within the main area of interest over four mining horizons,
to a maximum depth of 1,000 metres below surface, using current
mine infrastructure. The Corporation remains focused on
transforming the high-grade Island Gold Mine into one of the lowest
cost underground gold producers in the Americas. Recent
achievements include: - The integration of the December 31, 2016
Mineral Reserves and
Resources into the 1,100 tonnes per day mine plan has been
completed.
- The required permit amendments that allow for an ore mining and
processing increase to 1,100 tonnes per day were received in
December.
- The accelerated development of the underground ramp system has
advanced as planned.
- Engineering and identification of the main equipment required for
the mill expansion is well underway and expected capital
requirements for the expanded milling capacity remains below the
$15.0 million, as previously disclosed.
- The 2017 mine plan and the Expansion Case PEA are focused on
optimizing cash flow generation that is capable to fully fund
current and future production as well as all strategic
exploration
programs.

Beaufor Mine Highlights

- Production for the quarter was 5,629 ounces of gold (5,879 ounces
sold), in-line with previously disclosed plans to ramp-up
production and achieve increased production in the second half of
the year.
- Cash costs of $1,265 (US$956) per ounce achieved during the
quarter, a significant reduction of 15% over the prior quarter and
in-line with 2017 plans to return the mine to free cash flow
generation status in the first half of the year.
- Underground productivity increased to 354 tonnes per day (403
tonnes per day in March). During the quarter the majority of the
mining activities were transitioned into the new Q Zone and
additional haulage and mucking mobile equipment were commissioned.
Underground productivity and operating costs are expected to
continue to improve over the balance of the year.
- The Corporation is also considering other strategic alternatives
regarding the Beaufor Mine and Camflo Mill.

Upcoming News

- Q1 Financial Results (May 4)
- Annual and Special Meeting of Shareholders (May 4)
- Expansion Case PEA Results (Q2 2017)

Non-International Financial Reporting Standards ("IFRS")
Performance Measures

In this press release, the term "cash costs per ounce" is used,
which is a non-IFRS performance measure, and may not be comparable to
similar measures presented by other companies. The Corporation
believes that, in addition to conventional measures prepared in
accordance with IFRS, the Corporation and certain investors use this
information to evaluate the Corporation's performance. Accordingly,
it is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. "Cash costs per ounce"
is a common performance measure in the gold mining industry, but does
not have any standardized definition. The Corporation reports cash
cost per ounce based on ounces sold. Cash costs include mine site
operating costs, administration, royalties and by-product credits but
are exclusive of depreciation, accretion expense, interests on
capital leases, capital expenditures and exploration and project
evaluation costs. Refer to the Corporation's 2016 MD&A for a
reconciliation of cash costs to cost of sales.

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 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
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
could also affect the results. Other risks may be set out in Richmont
Mines' 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 SEC. The requirements of National Instrument 43-101 - Standards
of Disclosure for Mineral Projects ("NI 43-101") adopted by the
Canadian Securities Administrators differ significantly from the
requirements of the United States Securities and Exchange Commission
(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.

National Instrument 43-101

The scientific or technical information in this news release has
been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President,
Exploration, an employee of Richmont Mines Inc., and a qualified
person as defined by NI 43-101.

Contact:

Renaud Adams

President and CEO

Phone: 416-368-0291 ext. 101

Anne Day

Senior Vice-President

Investor Relations

Phone: 416-368-0291 ext. 105

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