Minera Alamos Inc. Closes Final Tranche of $4 Million Private Placement

TORONTO, ONTARIO--(Marketwired - May 16, 2016) - Minera Alamos Inc. (TSX VENTURE:MAI) ("Minera Alamos" or the "Company") is pleased to announce the closing of the final tranche of the previously announced non-brokered private placement for gross proceeds of $1,980,000. Together with the first two tranches of the private placement closed in May and April, the Company has raised, in aggregate, $4,000,000.

"We are moving forward aggressively on our work at our recently acquired La Fortuna gold project and expect to have permits in hand on both of our Mexican development projects by early next year," said Chris Frostad, Chief Executive Officer of Minera Alamos Inc. "This financing provides adequate funds to move us beyond a construction decision."

In connection with the closing of the final tranche of the private placement, the Company has issued, 19,800,000 common share units ("Units") at a price of $0.10 per Unit with each unit consisting of one common share in the capital of the Company and one half (1/2) of a common share purchase warrant. Each whole warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.15 per share for a period of 36 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement.

Darren Koningen, a director and President of the Company, participated in the final tranche of the private placement as an investor and subscribed 2,779,760 Units for $277,976. Chris Frostad, a director and CEO of the Company, also participated in the final tranche of the private placement as an investor and subscribed 1,000,000 Units for $100,000. By virtue of such participation by the insiders, the private placement constitutes a related party transaction under applicable securities laws. Neither independent valuation nor minority shareholder approval was required to complete the related party transaction because the Company relied on exemptions from both requirements under applicable securities laws.

In connection with the final tranche closing of the private placement, the Company paid IBK Capital Corp., the agent of the Company in connection with the private placement, and its sub-agents agent's fees consisting of $143,800 (plus applicable taxes and disbursements) in cash and issued 1,438,000 non-transferable agent's compensation warrants. Each compensation warrant entitles its holder to purchase one Unit of the Company at an exercise price of $0.10 per Unit for a period of 36 months after the date of issuance.

All securities issued in connection with the final tranche closing of the private placement are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of September 14, 2016.

The proceeds of the private placement will be used by the Company to fund a portion of the development of its Mexican projects and for working capital purposes.

About Minera Alamos

Minera Alamos is a junior exploration and development company. Its growing high-grade Mexican portfolio currently includes the La Fortuna open pit gold project in Durango and the Los Verdes open pit copper-molybdenum project in Sonora, both currently in development.

Cautionary Note Regarding Forward‐Looking Statements

This press release contains "forward looking statements" and "forward-looking information" under applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information with respect to the proposed transaction, timing of the closing of proposed transaction and the Company's consideration of the proposed production plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", "estimates", "intends", "anticipates" or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made at the date that such statements are made.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including the risk factors disclosed elsewhere in the Company's public disclosure. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained herein is presented for the purposes of assisting readers in understanding the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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