Alamos Gold comments on Esperanza news release

theflyonthewall.com

Alamos Gold commented on the news release issued earlier by Esperanza Resources Corp. regarding the recent amendment to Article 71 of the Law of Rural Sustainable Development in the State of Morelos, Mexico. The principal asset of Esperanza, the Esperanza gold project, is located in Morelos. Alamos and Esperanza entered into an Arrangement Agreement dated July 12, 2013 pursuant to which Alamos offered to purchase all of the issued and outstanding shares of Esperanza. Completion of the Transaction is subject to the fulfilment of certain conditions set forth in the Arrangement Agreement. The New Law came into force on August 15, 2013, after being published in the August 14 edition of "Tierra Y Libertad", the official newspaper of the state government of Morelos, which is available on the official state government website. In its publication of the announcement of the New Law, the State Government noted that the use of cyanide shall be "restricted" in the State of Morelos, and makes specific reference to the Esperanza gold project, which is planned for Morelos. It is not clear what the nature or extent of the restrictions on the use of cyanide will be under the New Law. Given that the Esperanza gold project is located in Morelos, and contemplates the use of cyanide in its design plans, Alamos has significant concerns regarding the New Law and is currently working with its legal advisers in Mexico to further clarify the potential effect of the New Law. Alamos was aware of the New Law prior to today's press release by Esperanza, but has not completed its assessment of its potential impact on the viability of the Esperanza gold project.

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