Richmont Mines Reports Strong Third Quarter Financial Results Driven by Record Gold Production and Solid Cost Performance at Island Gold

- Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation") announces operating and financial results for the three and nine months ended September 30, 2017. (All amounts are in Canadian dollars, unless otherwise indicated.) THIRD QUARTER AND NINE-MONTH HIGHLIGHTS - CONTINUING OPERATIONS[(1)] "The positive results we have reported were supported by another consecutive quarter of solid performance from the Island Gold Mine. This high-quality operation delivered record production at peer leading cash costs, which positions Island Gold to beat annual guidance for the third consecutive year. Year to date, the Island Gold Mine has generated a strong free cash flow stream of $31.8 million, which will increase significantly once the level of capital investment decreases to sustaining levels post 2018," commented Renaud Adams, President and CEO. He continued, "During the quarter, we announced a transaction with Alamos that is consistent with our commitment to create significant shareholder value. As part of this strategic transaction, our shareholders will maintain exposure to the ongoing potential of the Island Gold Mine and benefit from having meaningful ownership in a diversified intermediate producer with a proven and experienced management team." _______________________ [1] Continuing operations includes the Island Gold Mine and corporate overhead. The Beaufor Mine, the Camflo Mill, the Monique Mine, the Wasamac development project and all other mineral claims, mining leases and mining concessions located in the province of Quebec are reported as discontinued operations. Refer to the Q3 Management's Discussion and Analysis for further details. [2] Refer to the Non-IFRS Performance Measures disclosure presented at the end of this press release. Financial and Operating Highlights - Continuing Operations[(1)] Quarter Quarter Nine-Months Nine-Months ended ended ended ended Sept.30, Sept.30, Sept.30, Sept.30, 2017 2016 2017 2016 (in thousands of $, except per share and per oz amounts) Gold produced (oz) 26,659 14,031 76,541 59,237 Gold sold (oz) 22,666 13,673 74,849 59,851 Cash costs per ounce ($)[(2)] 666 947 637 761 AISC per ounce ($)[(2)] 1,038 1,463 921 1,134 Realized gold price per ounce ($) 1,608 1,756 1,644 1,657 Revenue from mining operations 36,549 24,053 123,363 99,378 Net earnings (per share) 0.08 0.01 0.34 0.18 Operating cash flow, per share[(2)] 0.19 0.05 0.81 0.53 Operating cash flow (before non-cash changes in working capital), per share[(2)] 0.18 0.08 0.80 0.59 Sustaining Capital ($) 4,984 5,090 11,933 15,283 Project Capital ($) 10,042 13,457 21,941 28,390 Net free cash flow, per share[(2)] 0.03 (0.24) 0.33 (0.18) Revenue from mining operations (US$) 29,174 18,431 94,336 75,184 Net earnings (per share) (US$) 0.06 - 0.26 0.13 Operating cash flow, per share[(2)] (US$) 0.15 0.04 0.62 0.40 Operating cash flow (before non-cash changes in working capital), per share[(2) ](US$) 0.14 0.06 0.61 0.45 Sustaining Capital (US$) 3,978 3,900 9,125 11,562 Project Capital (US$) 8,016 10,312 16,778 21,478 Net free cash flow, per share[(2) ](US$) 0.02 (0.18) 0.25 (0.14) [(1)] Continuing operations includes the Island Gold Mine and corporate overhead. [(2)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q3 2017 Management's Discussion and Analysis. Island Gold Mine: Operational Highlights  Year to date, the Island Gold Mine has outperformed the PEA on all key operating and financial metrics including tonnes mined and milled, grades and unit operating costs, all of which has supported a significant free cash flow stream of $31.8(US$24.3) million. Consolidated Highlights - Continuing and Discontinued Operations[(1)] Quarter Quarter Nine-Months Nine-Months ended ended ended ended Sept.30, Sept.30, Sept.30, Sept.30, (in thousands of $, except 2017 2016 2017 2016 per share and per oz amounts) Gold produced (oz) 30,039 18,856 90,689 74,545 Gold sold (oz) 26,287 17,774 89,855 74,901 Cash costs per ounce ($)[(2)] 840 1,054 783 892 AISC per ounce ($)[(2)] 1,259 1,595 1,101 1,289 Realized gold price per ounce ($) 1,608 1,754 1,644 1,659 Revenue from mining operations 42,378 31,244 148,118 124,496 Net earnings (per share), basic 0.03 - 0.28 0.19 Operating cash flow, per share[(2)] 0.13 0.05 0.81 0.59 Operating cash flow (before non-cash changes in working capital), per share[(2)] 0.15 0.09 0.80 0.64 Net free cash flow, per share[(2)] (0.05) (0.26) 0.26 (0.20) Revenue from mining operations (US$) 33,827 23,942 113,266 94,187 Net earnings (per share) (US$) 0.02 - 0.21 0.14 Operating cash flow, per share[(2)] (US$) 0.10 0.04 0.62 0.44 Operating cash flow (before non-cash changes in working capital), per share[(2) ](US$) 0.12 0.07 0.61 0.48 Net free cash flow, per share[(2) ](US$) (0.04) (0.20) 0.20 (0.15) [(1)] Continuing operations includes the Island Gold Mine and corporate overhead. The Beaufor Mine, the Camflo Mill, the Monique Mine, the Wasamac development project and all other mineral claims, mining leases and mining concessions located in the province of Quebec are reported as discontinued operations. Refer to the Q3 Management's Discussion and Analysis for further details. [(2)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q3 2017 Management's Discussion and Analysis. Upcoming News and Events  Financial Statements and Management's Discussion and Analysis The financial statements and related Management's Discussion and Analysis can be found on the Corporation's website at http://www.richmont-mines.com or under the Corporation's profile on http://www.sedar.com and with the Securities and Exchange Commission at http://www.sec.gov/edgar.shtml. Non-International Financial Reporting Standards ("IFRS") Performance Measures In this press release, the terms "cash costs per ounce", "all-in sustaining costs", "net free cash flow" and "operating cash flow" are used, which are non-IFRS performance measures, 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, these non-IFRS measures are 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. For full disclosure and reconciliation of these measures, refer to the Non-IFRS Performance Measures section contained in the Q3 2017 Management's Discussion and Analysis. About Richmont Mines Inc. Richmont Mines currently produces gold from the Island Gold Mine in Ontario and is also advancing development of the significant high-grade resource extension to the east and at depth. With more than 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation has successfully positioned the Island Gold Mine to cost-effectively build its Canadian reserve base and to 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'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 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 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. Contacts: Renaud Adams, President and CEO, Phone: +1-416-368-0291 ext. 101Anne Day Senior Vice-President, Investor Relations Phone: +1-416-368-0291 ext. 105