Alamos Gold Inc. Reports Record Quarterly Earnings and Cash Flows From Operations in the First Quarter of 2008

TORONTO, ONTARIO -- (MARKET WIRE) -- 05/08/08 -- Alamos Gold Inc. (TSX: AGI) ("Alamos" or the "Company") announces that it has released its financial results for the first quarter of 2008. A link to the Company's interim consolidated financial statements for the three-month periods ended March 31, 2008 and 2007 and related Management's Discussion and Analysis is provided at the end of this release.

All amounts are unaudited and in United States dollars, unless otherwise stated. Refer to the Cautionary Non-GAAP Statements section at the end of this release for a discussion of the non-GAAP measures used by the Company. Except for historical information contained in this discussion and analysis, disclosure statements contained herein are forward-looking, as defined in the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those in such forward-looking statements.

First Quarter 2008 Highlights

During the three-month period ended March 31, 2008, the Company reported record quarterly earnings, gold sales and production, revenues and cash flows from operations. Specifically, the Company:

- Recognized record quarterly earnings of $5.7 million ($0.06 per share), an increase of 380% over earnings of $1.2 million ($0.01 per share) in the first quarter of 2007.

- Increased gold sales revenues 83% from $17 million in the first quarter of 2007 to $31 million in the first quarter of 2008.

- Reported record quarterly gold sales of 34,609 ounces representing a 27% increase over the comparable period of 2007.

- Generated cash flows from operating activities of $14.8 million or $0.16 per share compared to $3.4 million or $0.04 per share in the first quarter of 2007.

- Produced a record 33,253 ounces at a cash operating cost of $366 per ounce of gold sold (total cash cost inclusive of royalties of $414 per ounce of gold sold).

- Realized an operating cash margin per ounce of gold sold of $483 per ounce compared to $259 per ounce in the first quarter of 2007, an increase of 86%.

Subsequent to the end of the first quarter, the Company:

- Announced record monthly gold production of 12,115 ounces in April 2008.

- Reported the successful commissioning of the conveying and stacking system.

- Repaid $5.5 million or approximately 70% of its outstanding capital lease obligations from operating cash flows.

- Elected to convert its outstanding convertible debenture liability, resulting in retiring a $1.4 million liability through the issuance of 258,677 common shares and a cash payment of $0.1 million.

Financial Highlights

A summary of the Company's financial results for the three-month periods ended March 31, 2008 and 2007 is presented below:

Q1 Q1 2008 2007

Gold sales revenues (000) $31,030 $16,958

Cash provided by operating activities before changes in non-cash working capital (000)(1) $11,376 $4,940 Changes in non-cash working capital (000) $3,425 ($1,523) Cash provided by operating activities (000) $14,801 $3,417

Earnings before income taxes (000) $9,154 $2,023 Earnings (000) $5,704 $1,189 Earnings per share - basic and diluted $0.06 $0.01 Weighted average number of common shares outstanding - basic 94,739,000 93,726,000 - diluted 96,731,000 96,523,000

(1) A non-GAAP measure calculated as cash provided by operating activities as presented on the consolidated statements of cash flows and adding back changes in non-cash working capital.

The Company reported record quarterly financial results in the first quarter of 2008. A high realized gold price combined with record gold sales contributed to the Company generating $11.4 million in cash from operating activities before changes in non-cash working capital, and $14.8 million ($0.16 per share) after changes in non-cash working capital. The $14.8 million cash provided by operating activities represents a 333% increase over the $3.4 million ($0.04 per share) generated in the first quarter of 2007. Changes in non-cash working capital resulted in a use of cash of $1.5 million in the first three months of 2007 as the Company was investing in its gold inventory and Mexican value added tax receivable balances.

The Company recognized earnings before income taxes of $9.2 million in the first quarter of 2008 compared to $2.0 million in the same period of 2007, an increase of 352%.

The Company recorded earnings of $5.7 million or $0.06 per share. These results were due primarily to a 44% increase in the realized gold price per ounce and a 27% increase in the number of gold ounces sold in the first quarter of 2008 compared to the same period of 2007.

Results of Operations

In the first quarter of 2008, the Company reported record gold sales and gold production. Operational improvements implemented in 2007 have significantly benefited mining operations and contributed to higher gold production and reduced operating costs. These factors combined with appreciably higher gold prices, have resulted in the Company's strong financial performance in the first quarter of 2008.

Gold production in the first quarter of 2008 was 33,253 ounces or 33% higher than gold production of 24,940 in the first quarter of 2007. Gold sales in the first quarter of 2008 increased 27% over the comparable period of 2007 to 34,609 ounces. The table below outlines key quarterly production indicators during the first quarters of 2008 and 2007:

Production summary Q1 Q1 Change Change 2008 2007 (#) (%)

Ounces produced(1) 33,253 24,940 8,313 33%

Ore mined (tonnes) 1,230,000 1,035,000 195,000 19% Waste mined (tonnes) 1,653,000 2,321,000 (668,000) (29%) Total mined (tonnes) 2,883,000 3,356,000 (473,000) (14%)

Ore crushed (tonnes) 1,244,000 1,050,000 194,000 18%

Ore mined per day (tonnes) 13,500 11,400 2,100 18% Ore crushed per day (tonnes) 13,670 11,500 2,170 19%

Waste-to-ore ratio 1.34 2.24 (0.90) (40%)

Grade (g/t Au) 2.34 1.73 0.61 35%

(1) Reported gold production for Q1 2007 has been adjusted to reflect final refinery settlement. Reported gold production for Q1 2008 is subject to final refinery settlement and may be adjusted.

The Company achieved significant increases in ore mined and crushed during the first quarter of 2008 compared to the same period of 2007. Throughout 2007, the Company used excess haul truck capacity caused by lower than planned crusher throughput to reorganize the open pit and move additional waste. As a result, mining operations were more efficient in the first quarter of 2008, contributing to a 19% increase in ore mined and a 29% decrease in waste mined, in line with the Company's budget. Also in 2007, the Company commissioned a new crusher which has improved the Company's ability to meet its targeted crusher throughput rates. Average daily crusher throughput of 13,670 in the first quarter of 2008 represented a 19% improvement over the comparable period of 2007. The grade of ore crushed and stacked in the first quarter of 2008 was 35% higher than in the prior year period and above the Company's budgeted grade.

The operational changes made in 2007 have demonstrated measurable improvements in both operating and production statistics, which in turn have contributed to cost efficiencies and lower costs per tonne. The following table compares costs per tonne in the first quarter of 2008 to the first quarter of 2007 and the 2007 year:

Costs per tonne summary Q1 Q1 2008 2007 Change 2007 (3 months) (3 months) (%) (12 months)

Mining cost per tonne of material (ore and waste) $1.50 $1.31 15% $1.34

Waste-to-ore ratio 1.34 2.24 (40%) 2.50

Mining cost per tonne of ore $3.51 $4.25 (17%) $4.67 Crushing cost per tonne of ore $2.24 $2.23 (0%) $2.51 Processing cost per tonne of ore $2.22 $2.16 2% $2.39 Mine administration cost per tonne of ore $1.47 $1.11 32% $1.70

Total cost per tonne of ore $9.44 $9.75 (3%) $11.27

Operating Expenses and Operating Margins

Mine operating costs allocated to ounces sold are summarized in the table below for the periods indicated:

Q1 Q1 Change 2008 2007 %

Gold production (ounces)(1) 33,253 24,940 33% Gold sales (ounces) 34,609 27,200 27%

Cash operating costs (000)(2) $12,682 $9,019 41% - Per ounce sold $366 $332 10%

Royalties and production taxes (000)(3) $1,654 $892 85% Total cash costs (000)(4) $14,336 $9,911 45% - Per ounce sold $414 $364 14%

Amortization (000) $4,611 $2,455 88%Accretion expense (000) $82 $44 86% Total production costs (000)(5) $19,029 $12,410 53% - Per ounce sold $549 $456 20%

- Realized gold price per ounce $897 $623 44% - Operating cash margin per ounce(6) $483 $259 86%

(1) Reported gold production is subject to final refinery settlement. (2) "Cash operating costs" is a non-GAAP measure which includes all direct mining costs, refining and transportation costs and by-product credits. "Cash operating costs" is equivalent to mining and processing costs as reported in the Company's financial statements. (3) Production royalties are included as of April 1, 2006 at 5% of net precious metals revenues (as determined in accordance with the royalty agreement). (4) "Total cash costs" is a non-GAAP measure which includes all "cash operating costs" and royalties and production taxes. "Total cash costs" is equivalent to mining and processing costs and royalties as reported in the Company's financial statements. (5) "Total production costs" is a non-GAAP measure which includes all "total cash costs", amortization, and accretion of asset retirement obligations. "Total production costs" is equivalent to mining and processing costs, royalties, amortization and accretion of asset retirement obligations as reported in the Company's financial statements. (6) "Operating cash margin per ounce" is a non-GAAP measure which is calculated as the difference between the Company's gold sales and mining and processing and royalty expenses as reported in the Company's financial statements.

Outlook

In the first quarter of 2008, the Company demonstrated its ability to increase gold production and substantially reduce its cash operating costs compared with the previous quarter. Gold production increased 6% and cash operating costs decreased 22% in the first quarter of 2008 compared to the fourth quarter of 2007.

Improvements that were initiated last year, starting with the expanded crushing circuit, are nearing completion with the commissioning of the conveying and stacking system and expanded and redesigned leach pad. Next, the Company is focused on the completion of the cement agglomeration circuit in the second quarter of 2008, and in the latter half of the year, additional carbon columns will be added in the plant to increase solution processing capacity.

Other capital projects including the warehouse, truck shop, laboratory and camp improvements are substantially complete. The benefits of these projects should start to be realized in the second quarter as the Company's mining operations become more efficient resulting in corresponding reductions in costs.

The Company is forecasting gold sales and gold production of 35,000 ounces in the second quarter of 2008 at a cash operating cost (exclusive of royalties which increase with gold prices), at or below $385 per ounce.

The results of the evaluation of the economics of mining the Escondida project are expected to be received later in 2008, with a production decision expected shortly thereafter. It is expected that the Escondida project would be financed in part through existing cash balances and cash flows from current mining operations. The Company is currently evaluating other financing options, including bank debt financing.

Drilling at La Yaqui is expected to continue in the second quarter, in addition to new Phase 1 drilling at Cerro Pelon.

Interim Consolidated Financial Statements and Management's Discussion and Analysis

To view the Company's interim consolidated financial statements and management's discussion and analysis in PDF format, please click on the following link:

http://media3.marketwire.com/docs/agi0508.pdf

Annual General Meeting

Alamos' Annual and Special Meeting of Shareholders will be held at 4:30PM on Thursday, May 15th, 2008 at the Toronto Stock Exchange -Gallery at the Exchange Tower, 130 King Street West, Toronto, Ontario.

About Alamos

Alamos is a Canadian-based gold producer with operations, exploration and development activities in Mexico. The Company employs approximately 400 people in Mexico and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighbouring communities. Alamos is fully leveraged to increases in gold prices. Alamos' common shares are traded on the Toronto Stock Exchange under the symbol "AGI".

Cautionary Non-GAAP Statements

The Company believes that investors use certain indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Cash flow from operating activities before changes in non-cash working capital" is a non-GAAP performance measure which could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "Cash provided by (used for) operating activities" as presented on the Company's consolidated statements of cash flows. "Mining cost per tonne of ore" is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency and effectiveness at the Mine. It is determined by dividing the relevant mining and processing costs by the tonnes of ore processed in the period. "Cost per tonne of ore" is usually affected by operating efficiencies and waste-to-ore ratios in the period. "Cash operating cost per ounce" and "total cash cost per ounce" as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of "cash operating cost per ounce" as determined by the Company compared with other mining companies. In this context, "cash operating cost per ounce" reflects the cash operating cost allocated from in-process and dore inventory associated with ounces of gold sold in the period. "Cash operating cost per ounce" may vary from one period to another due to operating efficiencies, waste-to-ore ratios, grade of ore processed and gold recovery rates in the period. "Total cash cost per ounce" includes "cash operating cost per ounce" plus applicable royalties.

Cautionary Note

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including without limitation statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Alamos, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Alamos' expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled "Risk Factors" in Alamos' Annual Information Form. Although Alamos has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

ALAMOS GOLD INC. CONSOLIDATED BALANCE SHEETS

(Unaudited - stated in thousands of United States dollars)

March 31, December 31, 2008 2007 ---------------------------- ---------------------------- ASSETS Current Assets Cash and cash equivalents $18,170 $7,757 Amounts receivable 4,724 3,040 Advances and prepaid expenses 1,543 1,520 Available-for-sale securities 1,108 1,195 Inventory 35,040 36,222 ---------------------------- 60,585 49,734 Mineral property, plant and equipment 126,862 126,095 ---------------------------- $187,447 $175,829 ---------------------------- ---------------------------- LIABILITIES Current Liabilities Accounts payable and accrued liabilities $7,764 $7,907 Income taxes payable 4,320 -Current portion of capital lease obligations 2,125 2,072 Current portion of property acquisition obligations 518 562 Convertible debenture 1,266 1,297 ---------------------------- 15,993 11,838 Capital lease obligations 5,921 6,503 Future income taxes 11,625 11,445 Employee future benefits 581 555 Asset retirement obligations 3,410 3,460 Property acquisition obligations 746 891 ----------------------------Total Liabilities $38,276 $34,692 ---------------------------- SHAREHOLDERS' EQUITY Share capital $162,736 $161,042 Convertible debenture 293 293 Contributed surplus 7,446 6,810 Deficit (21,304) (27,008) ---------------------------- ---------------------------- 149,171 141,137 ---------------------------- ---------------------------- $187,447 $175,829 ---------------------------- ---------------------------- ALAMOS GOLD INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited - stated in thousands of United States dollars, except per share amounts)

For the three-month period ended March 31, March 31, 2008 2007 ---------------------------- ---------------------------- OPERATING REVENUES Gold sales $31,030 $16,958 ---------------------------- OPERATING EXPENSES Mining and processing 12,682 9,019 Royalties 1,654 892 Amortization 4,611 2,455 Exploration 564 593 Corporate and administrative 1,028 872 Stock-based compensation 970 438 Accretion expense 82 44 Employee future benefits 16 87 ---------------------------- 21,607 14,400 ---------------------------- EARNINGS FROM OPERATIONS BEFORE THE FOLLOWING 9,423 2,558

Interest income 48 64 Interest expense (188) (291) Accretion of convertible debenture discount (19) (15) Foreign exchange loss (174) (176) Other gain (loss) 64 (117) ----------------------------Earnings before income taxes for the period 9,154 2,023 Income taxes - Current (3,650) (134) - Future 200 (700) ----------------------------Earnings and comprehensive income for the period $5,704 $1,189 ---------------------------- Earnings per share for the period - basic and diluted $0.06 $0.01 ---------------------------- Weighted average number of common shares outstanding - basic 94,739,000 93,726,000 ---------------------------- ----------------------------- diluted 96,731,000 96,523,000 ---------------------------- ---------------------------- ALAMOS GOLD INC. CONSOLIDATED STATEMENTS OF DEFICIT

(Unaudited - stated in thousands of United States dollars)

For the three-month periods ended March 31, March 31, 2008 2007 ---------------------------- ---------------------------- Deficit - beginning of period ($27,008) ($27,617) Earnings for the period 5,704 1,189 ----------------------------Deficit - end of period ($21,304) ($26,428) ---------------------------- ---------------------------- ALAMOS GOLD INC. CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited - stated in thousands of United States dollars)

For the three-month periods ended March 31, March 31, 2008 2007 ---------------------------- ---------------------------- Cash provided by: Operating Activities Earnings for the period $5,704 $1,189 Adjustments for items not involving cash: Amortization 4,611 2,455 Accretion expense 101 59 Employee future benefits 26 87 Unrealized foreign exchange loss 176 12 Future income taxes (200) 700 Realized gain on sale of securities (12) - Stock-based compensation 970 438 Changes in non-cash working capital: Fair value of forward contracts 16 119 Amounts receivable (1,685) (798) Inventory 955 (903) Prepaid expenses (23) 229 Accounts payable, taxes payable and accrued liabilities 4,162 (170) ---------------------------- 14,801 3,417 ----------------------------Investing Activities Proceeds from sale of securities 52 -Mineral property, plant and equipment (5,271) (2,961) ---------------------------- (5,219) (2,961) ----------------------------Financing Activities Common shares issued 1,360 161Capital lease repayments (529) (270) Restricted cash - 46 ---------------------------- 831 (63) ----------------------------Net increase in cash and cash equivalents 10,413 393 Cash and cash equivalents - beginning of period 7,757 4,878 ----------------------------Cash and cash equivalents - end of period $18,170 $5,271 ---------------------------- Supplemental information: Interest paid $228 $219 ---------------------------- ----------------------------

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: Alamos Gold Inc. John A. McCluskey President and Chief Executive Officer (416) 368-9932 or 1-866-788-8801

Alamos Gold Inc. Victoria Vargas Investor Relations (416) 368-9932 x201 or 1-866-788-8801 Email: vvargas@alamosgold.com

2008-05-08 18:37:10 0357256 MARKETWIRE