august 2016 - second quarter 2016 financial results - august 8, 2016

TSX – NYSE MKT: RIC

Second Quarter 2016 Financial ResultsAugust 8, 2016

www.richmont-mines.com 2

(1) Refer to the Non-IFRS performance measures contained in the Q2 2016 MD&A.

Q2 2016 Operational Highlights

All amounts are in Canadian Dollars unless otherwise indicated

Consolidated Results Q2 2016 6 Months 2016 2016Guidance

Gold produced (oz) 23,320 55,689 87,000 - 97,000

Gold sold (oz) 24,888 57,127 -

Cash cost per ounce ($)(1) 903 848 930 - 1,000

AISC per ounce ($)(1) 1,330 1,200 1,275 - 1,390

Cash cost per ounce (US$)(1) 701 637 680 - 730

AISC per ounce (US$)(1) 1,032 902 935 – 1,015

Solid quarterly performance underpinned by record productivity at Island Gold

Island Gold production growth of 24%; Company-wide decrease of 11%

Island Gold cash costs and AISC well below guidance estimates

On track to meet, or exceed 2016 consolidates guidance estimates

Update on 2016 guidance estimate in September


Q2 2016 CORPORATE HIGHLIGHTS

Revenues of $40.6 million

EPS of $0.04 per share

Operating cash flow(1) per share of $0.25

Solid cash position of $95.5 million

Completed $31M bought-deal financing; Net proceeds of $29M

Total debt of $11.1 million

Aggressive Phase 2 exploration program launched at Island Gold

WELL POSITIONED FOR ORGANIC GROWTH(1) After changes in non-cash working capital


FINANCIAL HIGHLIGHTS


FINANCIAL RESULTS HIGHLIGHTS

Q2 2016 Financial Results

Strong cash position of $95.5M as of June 30, 2016 and growing cash flow stream is expected to support a fully funded strategic growth plan and Phase 2 exploration

(in thousands, except per share amounts)

Quarter EndedJune 30, 2016


6 MonthsJune 30, 2016


Revenue from mining operations 40,618 40,552 93,252 77,762

Net earnings per share, basic 0.04 0.05 0.19 0.14

Operating cash flow, per share 0.25 0.25 0.54 0.43

Adj. Operating cash flow, per share(1)(2) 0.19 0.18 0.55 0.36

Net free cash flow, per share(2)(3) 0.05 0.13 0.07 0.13

(1) Before changes in non-cash working capital(2) Refer to the Non-IFRS performance measure in the Q2 2016 MD&A.(3) Net free cash flow per share is comprised of the Corporation’s operating cash flow, after changes in non-cash working capital, less investments in property, plant and

equipment


OPERATIONS & OVERVIEW


ISLAND GOLD: STRONG RESULTS Q2 2016

Island Gold MineQ2 2016 6 Months 2016 2016

Guidance

Gold produced (oz) 18,617 45,206 62,000 – 67,000

Gold sold (oz) 20,147 46,178

Cash cost per ounce ($)(1) 766 714 900 - 960

AISC per ounce ($)(1) 1,038 935 1,160 - 1,250

Cash cost per ounce (US$)(1) 595 537 660 - 705

AISC per ounce(US$)(1) 806 703 850 - 920(1) Refer to the Non-IFRS performance measures contained in the Q2 2016 MD&A


Solid production results; 24% increase over Q2 2015

Focused on development in lower grade extensions of second mining horizon

Record underground (911 tpd) and mill productivities (878 tpd)

Positive reconciliation of 19%: (8% tonnes / 10% grade)

Development ore/total ore of 48% (vs. 40%), YTD 49% (vs. 40%)

Cash costs and AISC decrease of 20% and 21%; well below guidance levels


ISLAND GOLD: OPERATING KPIsIsland Gold Mine Q2 2016 6 Months 2016 2016E

Underground tpd 911 882 800

Mill tonnes 79,924 155,830 292,000

Mill tpd 878 856 800

Head grade (g/t gold) 7.51 9.36 7.0 – 7.5

Recoveries (%) 96.5 96.4 96.5

Sustaining Costs ($000’s) 5,480 10,193 17,300

Project Costs ($000’s) 7,946 14,933 43,400

Non-sustaining exploration Costs ($000’s) 3,624 7,394 14,300

Underground Mine Productivity

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2014 2015 2016E(1) PEA BaseCase

(800tpd)(2)

UpsidePotential

(900tpd)(3)

Island Gold Production Upside


(1) Mid-range of 2016 guidance (2) Avg. annual production 2017-2022 (3) Permitted potential (1) Q4 2015 production and mine and mill productivity: Includes a 3-week scheduled underground mine shutdown and a 2-week scheduled mill shutdown

0.00

2.00

4.00

6.00

8.00

10.00

12.00

0

100

200

300

400

500

600

700

800

900

1000

Gra

ms

per t

onne

Tonn

es p

er d

ay

Underground tpd Head grade (g/t)


UNIT COST COMPARISONQ2 2016 vs 2015 PEA

2015 PEA Cost/Tonne (C$149/t)(Total 2015 cost/tonne = C$232)

$32SG&A

$72MINING

$32MILLING

$13ROYALTIES

2016 Q2 Cash Cost/Tonne (C$194/t)

$20G&A

$135MINING

$32MILLING

$7ROYALTIES

Higher unit mining costs; strategic decision to increase higher cost ore development ratio

Unit mining costs to decline to PEA levels in 2017-2022; return to lower ore development ratio

Q2 2016 milling and royalty unit costs in-line with PEA; SG&A lower than PEA estimates


MINING UNIT COST OPPORTUNITY

Near-term opportunity: lower the mining cost by returningto historical development ratio.

Uni

t Min

ing

Cos

t

20.0% 30.0% 40.0% 50.0%

% of Development Ore of Total Ore Mined

0

50

150

Q2 2015

100

250Long-term planned %

Q1 2015200

0.0% 10.0% 60.0% 70.0% 80.0%

Historical Data

PEA – 2017/2022

2015

Q4 2015

Q3 2015

2016

Q1 2016

Q2 2016


ISLAND GOLD:2016 DEVELOPMENTAND MINE PLAN

First Mining Horizon (2015 PEA)Tonnes Grade (g/t) Ounces

P&P 433,681 6.30 87,786

Third Mining Horizon (2015 PEA)Tonnes Grade (g/t) Ounces

P&P 616,039 10.59 209,705Inferred 342,967 11.18 123,267

Second Mining Horizon (2015 PEA)Tonnes Grade (g/t) Ounces

P&P 566,272 8.57 156,048


Q2 STRONG PRODUCTION at Island Gold:POSITIVE RECONCILIATION TO RESERVES CONTINUES

Reserves (as of Dec 31st, 2015) Mined (reconciled) Variations (Mined vs Reserves)

Diluted Tonnes

Diluted Grade

Diluted Ounces

ReconciledTonnes

ReconciledGrade

ReconciledOunces Tonnes Grade Ounces

Total Development Q1 44,323 8.28 11,795 42,601 12.19 16,701 96% 147% 142%

Total Stope Q1 34,877 7.13 7,991 34,995 9.92 11,166 100% 139% 140%

Total U/G Q1 79,199 7.77 19,785 77,596 11.17 27,867 98% 144% 141%

Q1 Reserve Reconciliation

Reserves (as of Dec 31st, 2015) Mined (reconciled) Variations (Mined vs Reserves)

Diluted Tonnes

Diluted Grade

Diluted Ounces

ReconciledTonnes

ReconciledGrade

ReconciledOunces Tonnes Grade Ounces

Total Development Q2 44,505 5.24 7,493 40,181 5.58 7, 203 90% 106% 96%

Total Stope Q2 32,452 8.46 8,827 42,740 8.88 12,198 132% 105% 138%

Total U/G Q2 76,957 6.60 16,320 82,921 7.28 19,400 108% 110% 119%

Q2 Reserve Reconciliation

Production in Q2; Higher than planned milled grades of 7.51g/t vs 7.19 g/t planned

Positive reconciliation of 19%: (10% grade / 8% tonnes)

Higher cost development ore/total ore of 48%; 2016 mine plan of 40%

Development primarily in lower-grade extensions of the second mining horizon

30% dilution assumption for development reserves; lower dilutionfrom deeper, wider zones


86,500m Drilling program launched in Q3 2015; 75,800m completed

ISLAND GOLD: PHASE 1 EXPLORATION PROGRAM


ISLAND GOLD:Phase 2 Exploration Program, H2 2016 (36,000m)


ISLAND GOLD:2016 Regional Surface Exploration Phase 2 (20,000m)


BEAUFOR MINE: OPERATIONAL HIGHLIGHTS

(1) Refer to the Non-IFRS performance measures contained in the Q2 MD&A.

Beaufor Mine Q2 2016 6 Months 2016 2016 Guidance

Gold produced (oz) 4,703 9,318 25,000-30,000

Gold sold (oz) 4,741 9,778 -

Cash cost per ounce ($)(1) 1,486 1,441 1,000 - 1,060

AISC per ounce ($)(1) 1,899 1,812 1,230 - 1,330

Cash cost per ounce (US$)(1) 1,154 1,083 735 - 780

AISC per ounce (US$)(1) 1,475 1,362 905 - 975

Underground tpd 286 304 -

Mill tonnes 28,281 57,599 -

Head grade (g/t gold) 5.27 5.11 -

Recoveries (%) 98.1 98.4 -

Sustaining Costs ($000’s) 1,958 3,632 6,800


Lower production due to lower grades mined in Zones M-MF and 12

Stope mining in the new higher-grade Q Zone expected in Q3 2016

Cash costs & AISC expected to decrease as stope mining begins in the Q Zone


Mining• Expanded resources area used – down to level 1000 and east-west of 2015 PEA area

• New mining capacity analysis – using four mining horizons

• New Life Of Mine (LOM) and operating costs

• Project & sustaining capital estimates

• New mining infrastructure required at expanded capacity

• New ramp design to accommodate haulage down to 1,000m level

• Permitting and timeline

Milling• Increased capacity design - allowing for future growth at a minimum cost

• Gravity circuit vs extra leaching capacity

• Costs breakdown +/- 25%• Permitting and timeline• TOTAL PRELIMINARY COST: C$15.0M

ISLAND GOLD EXPANSION UPDATE H2 2016OBJECTIVES – 2016 PEA


ISLAND GOLD MINE

Histogram of the Ext C Samples


ISLAND GOLD MINE

Log Normal Probability Plot (Ext C Drill Hole Samples)


DEEP DRILLING RESULTS COMPARISON

First 508K oz Deep Resource Block(Feb 25 2013) (capping at 75 g/t)

Average of 53 holes: 11.44 g/t over 4.55 m

Metal Factor

• 13 of 53 holes: 25% below 16 g/t; or • 15 of 55 holes: 27% below 16 g/t

Grade • 9 of 53 holes: 17% below 4 g/t; or• 11 of 55 holes: 20% below 4 g/t

Thickness • 26 of 53 holes: 49% less than 4 m; or• 28 of 55 holes: 51% less than 4 m

New Deep Potential Block (May 5 2016) (capping 95 g/t)

Average of 15 holes: 10.78 g/t over 4.60 m

Metal Factor

• 3 of 15 holes: 20% below 16 g/t

Grade • 1 of 15 holes: 7% below 4 g/t

Thickness • 8 of 15 holes: 53% less than 4 m

DEEP C ZONEINFERRED MINERALS RESOURCES1.5 MT at 10.73 g/t Au, 508,000 ounces

AREA OF POTENTIAL RESOURCES


2016 OPERATIONAL ESTIMATES

2016 Production and Cost Guidance

2016 Capital Investment Guidance

Operational Estimates Island Gold Beaufor 2016 Consolidated Estimates

Gold Ounces Produced 62,000-67,000 25,000-30,000 87,000-97,000Cash Costs per Ounce (CAN$)(1) $900-$960 $1,000-$1,060 $930-$1,000Sustaining Capital per Ounce (CAN$) $260-$290 $230-$270 $250-$280Corporate G&A per Ounce (CAN$) - - $95-$110All-in Sustaining Costs per Ounce (CAN$)(1) $1,160-$1,250 $1,230-$1,330 $1,275-$1,390

Cash Costs per Ounce (US$)(1) $660-$705 $735-$780 $680-$730Sustaining Capital per Ounce (US$) $190-$215 $170-$195 $185-$205Corporate G&A per Ounce (US$) - - $70-$80All-in Sustaining Costs per Ounce (US$)(1) $850-$920 $905-$975 $935-$1,015(1) Cash costs and AISC are non-IFRS measures. Refer to the Non-IFRS performance measures section in the First Quarter 2016 Management’s Discussion and Analysis.

Capital and Exploration Investment ($M) Island Gold Quebec Division 2016 Consolidated Estimates

Sustaining Capital (CAN$) $17.3 $6.8 $24.1Project Capital (CAN$)(3) $43.4 $ - $43.4Company-wide Exploration (CAN$) $14.3(1) $1.1(2) $15.4Sustaining Capital (US$) $12.7 $5.0 $17.7Project Capital (US$)(3) $31.8 $ - $31.8Company-wide Exploration (US$) $5.4 $0.8 $6.2(1) Includes $7.0 million of 2016 Phase 2.(2) All delineation and exploration drilling for the Beaufor Mine is included in sustaining capital and $1.1 million is related to the Quebec division outside the Beaufor property.(3) Project Capital for Island Gold includes accelerated underground development of $25.0 million (US$18.3 million) related to the PEA and $6.0 million (US$4.4 million) related to discretionary

development outside the scope of the PEA.

Material assumptions include: an average gold price of CAD$1,500 per ounce (US$1,100 per ounce); and a foreign exchange rate of 1.364 Canadian dollars to the US dollar.


CONSOLIDATED OPERATIONAL HIGHLIGHTS

Production Growth and In-Line CostsQuarter EndedJune 30, 2016




Gold produced (oz) 23,320 26,314 55,689 52,173

Gold sold (oz) 34,888 27,566 57,127 52,357

Cash cost per ounce (CAN$)(1) 903 974 848 976

AISC per ounce (CAN$)(1) 1,330 1,304 1,200 1,281

Realized gold price per ounce (CAN$) 1,628 1,468 1,629 1,482

Cash cost per ounce (US$)(1) 701 792 637 790

AISC per ounce (US$)(1) 10,32 1,060 902 1,037

Realized gold price per ounce (US$) 1,263 1,194 1,225 1,200

(1) Refer to the Non-IFRS performance measures contained in the Q2 2016 MD&A.


august 2016 - second quarter 2016 financial results - august 8, 2016

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