Category: Silver / Gold

Richmont Mines Reports Record Sales for the Fourth Quarter and Full Year 2008

- Fourth quarter revenue more than doubled to $22.9 million
- Full year revenue increased 85% to $70.6 million
- Gold sales at 70,945 ounces were 54% above 2007
- Acquisition of Patricia Mining completed in the fourth quarter

Richmont Mines Inc. (TSX: RIC)(NYSE ALTERNEXT US: RIC), a gold exploration, development and production company with operations in Canada, today announced financial and operational results for its fourth quarter and year ended December 31, 2008. Financial results are based on Canadian GAAP and dollars in Canadian currency, unless otherwise noted.

Revenue for the fourth quarter of 2008 was $22.9 million, a 122% increase compared with $10.3 million in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was $2.1 million, or $0.09 per share, compared with a net loss of $1 million, or $0.03 per share, in the fourth quarter of 2007, as the significant revenue increase in the 2008 fourth quarter more than offset increased operating and exploration costs. Total precious metals revenue was up $12.6 million, or 148%, to $21.1 million in the fourth quarter of 2008 compared with $8.5 million in the fourth quarter of 2007 as a result of a 102% increase in ounces of gold sold combined with 23% higher selling prices per ounce in Canadian dollars. In the 2008 fourth quarter, 22,116 ounces of gold were sold at an average price of US$897 (CAN$956) per ounce compared with 10,949 ounces of gold sold in the same period last year at an average price of US$724 (CAN$778) per ounce.

Solid Fourth Quarter Results

Operating costs, including royalties, for the fourth quarter of 2008 were $13.0 million compared with $6.5 million in the same period the prior year. However, the average cash cost of production was lower at US$550 (CAN$586) per ounce of gold sold in the fourth quarter of 2008 compared with US$556 (CAN$598) in last year's fourth quarter. The average cash cost per ounce during the reported quarter benefited from improved grades when compared with the prior year's period.

Exploration and project evaluation costs were $2.4 million in the fourth quarter of 2008 (see accompanying exploration cost summary table), $1.1 million above exploration and project evaluation costs of $1.3 million in the 2007 fourth quarter reflecting the Company's continued efforts to grow its reserves and resources. Approximately $0.7 million in exploration costs were incurred at the Beaufor Mine, $0.9 million at the Island Gold Mine and $0.5 million at the Golden Wonder Project in the 2008 fourth quarter. During the 2007 fourth quarter, approximately $0.5 million in exploration costs were incurred at the Beaufor Mine, $0.2 million at Island Gold, and $0.5 million at Golden Wonder. Richmont announced in October the termination of the Joint Venture option at the Golden Wonder Project.

Strong Cash Position and No Debt

At December 31, 2008, cash and cash equivalents were $26.0 million, compared with $27.3 million at December 31, 2007 and $29.6 million at September 30, 2008. During the quarter, Richmont acquired all the outstanding shares of Patricia Mining Corp. using a combination of cash and common shares resulting in the lower cash balance compared with the end of the 2008 third quarter. Richmont Mines has no long-term debt obligations and has working capital of $26.8 million. The cash equivalents included $18.3 million of Canadian bankers acceptance and bank discount notes with high level credit ratings and $7.7 million in cash deposited in a major Canadian chartered bank.

Positive Production Trend at the Island Gold Mine(1)
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                          Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
                         2008           2007           2008          2007
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Tonnes                 47,898         35,202        161,320        35,202
Head grade (g/t)         9.34           6.84           7.65          6.84
Gold recovery (%)       96.71          94.36          95.83         94.36
Recovered grade (g/t)    9.04           6.45           7.33          6.45
Ounces sold            13,915          7,302         38,037         7,302
Cash cost per
 ounce (US$)              546            621            659           621
Investment in property,
 plant and equipment
 (thousands of CAN$)    1,591          1,653          3,079         4,495
Exploration expenses
 (thousands of CAN$)      868            239          2,293           505
Diamond drilling
 (metres)
  Exploration and
   definition           5,888          2,722         16,665        12,940
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During the 2008 fourth quarter, 47,898 tonnes of ore from the Island Gold Mine were processed at an average recovered grade of 9.04 g/t, and 13,915 ounces of gold were sold at an average price of US$890 (CAN$949) per ounce. For the same period last year, 35,202 tonnes of ore were processed at an average recovered grade of 6.45 g/t, and 7,302 ounces of gold were sold at an average price of US$726 (CAN$780) per ounce. Cash costs at Island Gold decreased to US$546 (CAN$582) from US$621 (CAN$668) in last year's fourth quarter. The fourth quarter of 2007 was the Island Gold Mine's initial quarter of production.

For the year ended December 31, 2008, 161,320 tonnes of ore were processed at an average recovered grade of 7.33 g/t, and 38,037 ounces of gold were sold at an average price of US$867 (CAN$924) per ounce. During the first nine months of 2008, the mine produced at approximately 65% of its design capacity. In the fourth quarter of 2008, production was at around 80% of design capacity resulting in a notable improvement in the cash cost of production.

(1) Prior to its acquisition of Patricia Mining, which held a 45% interest in the Island Gold Project, Richmont Mines reported 100% of the consolidated results of the Island Gold Mine, in compliance with AcG-15, which stipulates that a holder of variable interests must consolidate the accounts if it intends to assume the majority of the expected losses and/or receive the majority of the residual returns of the variable interest entity (VIE). Richmont held a 55% stake in the unincorporated joint venture, and as its share of the earnings and/or losses differed from the percentage that it owned, the Company was therefore considered the primary beneficiary of the VIE.

Mr. Martin Rivard, President and CEO of Richmont Mines, commented, "Production at Island Gold continued to improve in the fourth quarter and reached more than 500 tonnes per day, well ahead of production from the previous quarter. Better availability of experienced miners, an improved management team and access to higher grade mining areas contributed to the improved results. We will maintain our efforts to improve production and increase exploration and development work."

Continued Steady Performance at the Beaufor Mine
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                          Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
                         2008           2007           2008          2007
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Tonnes                 30,343         13,921        115,674        97,429
Head grade (g/t)         8.64           8.21           9.00          8.47
Gold recovery (%)       97.27          98.28          98.31         98.72
Recovered grade (g/t)    8.41           8.07           8.85          8.36
Ounces sold             8,201          3,613         32,908        26,182
Cash cost of
 production per
 ounce (US$)              555            430            509           468
Investment in property,
 plant and equipment
 (thousands of CAN$)       15            217            127         1,060
Exploration expenses
 (thousands of CAN$)      706            524          2,921         1,874
Diamond drilling
 (metres)
  Definition            4,699            436         11,439         3,095
  Exploration           9,298          6,309         33,765        25,157
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During the fourth quarter of 2008, 30,343 tonnes of ore from the Beaufor Mine were processed at an average recovered grade of 8.41 g/t, and 8,201 ounces of gold were sold at an average price of US$908 (CAN$968) per ounce. In the same quarter of 2007, 13,921 tonnes of ore were processed at an average recovered grade of 8.07 g/t, and 3,613 ounces of gold were sold at an average price of US$719 (CAN$773) per ounce. Cash costs at the Beaufor Mine increased to US$555 (CAN$592) from US$430 (CAN$462) in last year's fourth quarter, largely due to higher mining costs. During the current quarter, Richmont processed 32,643 tonnes of custom milling ore at the Camflo Mill, compared with 46,317 tonnes during the 2007 fourth quarter.

During the year ended December 31, 2008, 115,674 tonnes of ore were processed at an average recovered grade of 8.85 g/t, and 32,908 ounces of gold were sold at an average price of US$886 (CAN$944) per ounce. In 2007, 97,429 tonnes of ore were processed at an average recovered grade of 8.36 g/t, and 26,182 ounces of gold were sold at an average price of US$693 (CAN$745) per ounce. The cash cost per ounce was US$509 (CAN$543) during the current period compared with US$468 (CAN$503) last year. 2008 Review of Operations

For the year ended December 31, 2008, revenue was $70.6 million or 85% above revenue of $38.1 million in 2007, reflecting increased gold sales at higher prices. In 2008, 70,945 ounces of gold were sold at an average price of US$876 (CAN$934) per ounce compared with 46,193 ounces of gold sold in 2007 at an average price of US$699 (CAN$751) per ounce.

Operating costs, including royalties, for the year ended December 31, 2008 were $44.6 million compared with $24.8 million last year, primarily due to the costs associated with advancing the Island Gold Mine to current production levels as well as higher operating costs at the Beaufor Mine. Island Gold began production during last year's fourth quarter.

Exploration and project evaluation costs were $10.5 million for 2008 compared with $3.3 million in 2007, as the Company focused its exploration efforts on the Island Gold and Beaufor mines, which had 2008 exploration costs of $2.3 million and $2.9 million, respectively. In addition, Richmont spent $4.2 million at the Golden Wonder exploration project prior to its October 2008 decision to terminate this project.

Net income in 2008 was $1.6 million, or $0.07 per share, compared with net earnings of $6.7 million, or $0.28 per share, in 2007, which included an $8.1 million gain on the sale of mining assets.

Gold Production Up 62% in 2008
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                           Gold Production
-------------------------------------------------------------
                                 2008
Mine            Tonnes        Mill   Recovered         Ounces
               (metric)   recovery       grade
                                (%)       (g/t)
-------------------------------------------------------------
Island Gold(1) 165,941       95.83        7.35         39,224
Beaufor        123,958       98.31        8.62         34,353
East Amphi(2)        -           -           -              -
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Total                                                  73,577
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                           Gold Production
-------------------------------------------------------------
                                 2007
Mine            Tonnes        Mill   Recovered         Ounces
               (metric)   recovery       grade
                                (%)       (g/t)
-------------------------------------------------------------
Island Gold(3)  35,403       94.36        6.46          7,348
Beaufor         96,943       98.72        8.41         26,204
East Amphi(4)  118,179       96.95        3.09         11,752
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Total                                                  45,304
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(1) Commercial production started on October 1, 2007 - Prior to its acquisition of Patricia Mining, which held a 45% interest in the Island Gold Project, Richmont Mines reported 100% of the consolidated results of the Island Gold Mine, in compliance with AcG-15, which stipulates that a holder of variable interests must consolidate the accounts if it intends to assume the majority of the expected losses and/or receive the majority of the residual returns of the variable interest entity (VIE). Richmont held a 55% stake in the unincorporated joint venture, and as its share of the earnings and/or losses differed from the percentage that it owned, the Company was therefore considered the primary beneficiary of the VIE.

(2) Closed at the end of the second quarter of 2007.

Island Gold produced 165,941 tonnes of ore at an average recovered grade of 7.35 g/t, for 39,224 ounces in 2008, compared with 35,403 tonnes at 6.46 g/t and 7,348 ounces in 2007. The Island Gold Mine commenced production on October 1, 2007. The Beaufor Mine produced 123,958 tonnes of ore at 8.62 g/t for production of 34,353 ounces in 2008, compared with production of 96,943 tonnes at 8.41 g/t for 26,204 ounces in 2007. In 2007, the East Amphi Mine produced 118,179 tonnes of ore at 3.09 g/t for 11,752 ounces, prior to its sale in June of 2007. Richmont's total gold production in 2008 was 73,577 ounces, 62% above 2007 production of 45,304 ounces.

Beaufor Mine Reserves and Resources
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                             December 31, 2008          December 31, 2007
Reserves             Tonnes    Grade    Ounces  Tonnes    Grade    Ounces
                    (metric) (g/t Au)          (metric) (g/t Au)
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Proven               96,678     7.17    22,287  90,822     7.56    22,085
Probable            147,385    10.03    47,505 164,879    10.10    53,547
Total Proven and
 Probable           244,063     8.89    69,792 255,701     9.20    75,632
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                             December 31, 2008          December 31, 2007
Reserves(4)          Tonnes    Grade    Ounces  Tonnes    Grade    Ounces
                    (metric) (g/t Au)          (metric) (g/t Au)
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Measured            101,767     5.46    17,861 101,160     5.73    18,639
Indicated           635,839     6.37   130,139 591,534     6.45   122,628
Total Measured and
 Indicated          737,606     6.24   148,000 692,694     6.34   141,267
Inferred            655,804     7.35   154,927 133,962     7.03    30,278
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Proven and probable reserves at the Beaufor Mine were stable at 69,792 ounces at the end of 2008 compared with 75,632 ounces at the end of 2007 as reserves identified in the Company's exploration program nearly offset production for the year. Measured and indicated resources were estimated at 148,000 ounces compared with 141,267 ounces at the end of 2007. The 2008 exploration program resulted in a significant increase in inferred resources which grew from 30,278 ounces in 2007 to 154,927 ounces at the end of 2008.

In 2009, Richmont plans to complete more than 45,000 meters of drilling to increase the Company's level of confidence of the potential for further development at depth.

Island Gold Reserves and Resources
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Island and Lochalsh Zones    December 31, 2008            December 31, 2007
Reserves             Tonnes    Grade    Ounces     Tonnes    Grade   Ounces
                    (metric) (g/t Au)             (metric) (g/t Au)
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Proven              308,205     9.08    89,925    369,325     8.91  105,773
Probable            722,982     8.57   199,144    689,555     8.11  179,763
Total Proven and
 Probable         1,031,187     8.72   289,069  1,058,880     8.39  285,536
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Island, Lochalsh
 and Goudreau Zones          December 31, 2008            December 31, 2007
Reserves (1)         Tonnes    Grade    Ounces     Tonnes    Grade   Ounces
                    (metric) (g/t Au)             (metric) (g/t Au)
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Measured             18,948     8.70     5,300      8,135     6.45    1,687
Indicated           403,249    10.87   140,954    582,032    10.19  190,735
Total Measured
 and Indicated      422,197    10.77   146,254    590,167    10.14  192,422
Inferred            676,608     9.65   209,985    613,635     9.80  193,350
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At the Island Gold Mine, proven and probable reserves were estimated at 289,069 ounces of gold at the end of 2008, compared with 285,536 ounces last year as the company's exploration program identified new reserves sufficient to replace 2008 production. Overall, more than 26,000 meters of definition and exploration drilling are planned for 2009 at Island Gold.

(1) Resources presented in the above table are exclusive of reserves and do not have demonstrated economic viability at this time.

Outlook

Mr. Rivard concluded: "The improvements we made at Island Gold combined with continued strong production at Beaufor have established a solid operating foundation for the Company. We enter 2009 with a strong balance sheet with no long-term debt and we are positioned to take immediate advantage of rising gold prices. Also, we will be actively looking for acquisitions or partnerships to expand our pipeline of projects, further increase our reserve base, and increase future production rates."

Martin Rivard

President and Chief Executive Officer

About Richmont Mines Inc.

Richmont produces gold from its operations in Canada and is focused on building its reserves in North America, and has extensive experience in gold exploration, development and mining. Since it began production in 1991, Richmont has produced more than one million ounces of gold from its holdings in Quebec, Ontario and Newfoundland. Richmont's strategy is to cost-effectively develop and exploit its gold mining assets, acquire properties, or develop partnerships to expand its reserve base. Richmont routinely posts news and other important information on its website at: www.richmont-mines.com. Forward-Looking Statements

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "project", "expect", "may" and similar expressions, as well as "will" 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. 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 revenues 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.

National Instrument 43-101 (NI 43-101)

The reserve and resource calculation of the Island Gold and the Beaufor properties as of December 31, 2008 was performed by qualified persons as defined by NI 43-101 and was supervised by Mr. Daniel Adam, Geo., Ph.D., Exploration Director, an employee of Richmont Mines Inc. The reserve and resources calculation of the Island Gold as of December 31, 2008 and December 31, 2007 was prepared by Ms. Nicole Rioux, Geo., of Genivar, a qualified person under the terms of this instrument. The reserves and resources calculation of the Beaufor Mine as of December 31, 2008 was prepared by Mr. Richard Dubuc, P.Geo., an employee of Richmont Mines Inc., a qualified person under the terms of this instrument. The reserve calculations were prepared using a gold price of US$785 (CAN$785) for 2008 and US$650 (CAN$650) for 2007.

Cautionary Note to U.S. Investors Concerning Resource Estimates

The resource estimate in this news release is prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of R 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"). In this news release, we use the terms "measured", "indicated" and "inferred" resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute "reserves". Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into "reserves". Further, "inferred resources" have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that "inferred resources" exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.

FINANCIAL DATA
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                          Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
CAN$                     2008           2007           2008          2007
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RESULTS
 (IN THOUSANDS OF $)
REVENUE                22,908         10,321         70,591        38,071
NET EARNINGS (LOSS)     2,086           (986)         1,635         6,671
CASH FLOW FROM
 (USED IN) OPERATIONS   7,428           (744)        12,117         5,999
RESULTS PER SHARE ($)
NET EARNINGS (LOSS)
 BASIC AND DILUTED       0.09          (0.03)          0.07          0.28
Basic weighted average
 number of common
 shares outstanding
 (thousands)           23,827         24,053         24,047        24,159
Average selling price
 of gold per ounce        956            778            934           751
Average selling price
 of gold per ounce
 (US$)                    897            724            876           699
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                           December 31, 2008            December 31, 2007
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Financial position
 (in thousands of $)
Total assets                          82,881                       85,976
Working capital                       26,753                       33,970
Long-term debt                             -                            -
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SALES AND PRODUCTION DATA
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                                     Three-month period ended December 31,
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                                         Ounces of gold          Cash cost
                               Year   Sales  Production    (per ounce sold)
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                                                              US$     CAN$
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Island Gold Mine               2008  13,915      12,850       546      582
                               2007   7,302       7,348       621      668
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Beaufor Mine                   2008   8,201       7,628       555      592
                               2007   3,613       3,805       430      462
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East Amphi Mine                2008       -           -         -        -
                               2007      34          34         -        -
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Total                          2008  22,116      20,478       550      586
                               2007  10,949      11,187       556      598
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                                             Fiscal year ended December 31,
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                                         Ounces of gold          Cash cost
                               Year   Sales  Production    (per ounce sold)
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                                                              US$     CAN$
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Island Gold Mine               2008  38,037      39,224       659      703
                               2007   7,302       7,348       621      668
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Beaufor Mine                   2008  32,908      34,353       509      543
                               2007  26,182      26,204       468      503
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East Amphi Mine                2008       -           -         -        -
                               2007  12,709      11,752       492      529
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Total                          2008  70,945      73,577       590      629
                               2007  46,193      45,304       499      536
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               Average exchange rate used for 2007: US$1 equals CAN$1.0748
               Average exchange rate used for 2008: US$1 equals CAN$1.0660
CONSOLIDATED STATEMENTS OF EARNINGS
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                                        (in thousands of Canadian dollars)
(Unaudited)               Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
                         2008           2007           2008          2007
                            $              $              $             $
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REVENUE
  Precious metals      21,142          8,513         66,237        34,691
  Other                 1,766          1,808          4,354         3,380
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                       22,908         10,321         70,591        38,071
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EXPENSES
  Operating costs      12,457          6,314         42,998        24,199
  Royalties               494            227          1,591           565
  Custom milling          807          1,023          1,785         1,023
  Administration        1,233            992          3,665         3,315
  Exploration and
   project evaluation   2,377          1,266         10,547         3,288  
Accretion expense
   - asset retirement
   obligations             52             45            182           178
  Depreciation and
   depletion            1,541          1,077          5,687         5,628
  Loss (gain) on
   disposal of
   mining assets            8            (37)            29        (8,066)
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                       18,969         10,907         66,484        30,130
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EARNINGS (LOSS)
 BEFORE OTHER ITEMS     3,939           (586)         4,107         7,941
MINING AND INCOME
 TAXES                    404            455            437         1,306
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                        3,535         (1,041)         3,670         6,635
MINORITY INTEREST       1,449            (55)         2,035           (36)
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NET EARNINGS (LOSS)     2,086           (986)         1,635         6,671
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NET EARNINGS (LOSS)
 PER SHARE
  basic and diluted      0.09          (0.03)          0.07          0.28
BASIC WEIGHTED
 AVERAGE NUMBER OF
 COMMON SHARES
 OUTSTANDING
 (thousands)           23,827         24,053         24,047        24,159
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CONSOLIDATED BALANCE SHEETS
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                             (in thousands of Canadian dollars)
                                                December 31,  December 31,
                                                       2008          2007
                                                          $             $
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                                                 (Unaudited)     (Audited)
ASSETS
CURRENT ASSETS
  Cash and cash equivalents                          26,021        27,291
  Restricted cash                                       116             -
  Short-term investments                                121         1,826
  Accounts receivable                                   986         2,859
  Mining and income taxes receivable                  1,586         1,677
  Inventories                                         6,012         5,438
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                                                     34,842        39,091
ADVANCE TO A MINORITY PARTNER                             -         1,875
PROPERTY, PLANT AND EQUIPMENT                        48,039        45,010
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                                                     82,881        85,976
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LIABILITIES
CURRENT LIABILITIES
  Accounts payable and accrued charges                6,912         5,005
  Mining and income taxes payable                     1,177           116
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                                                      8,089         5,121
ASSET RETIREMENT OBLIGATIONS                          4,664         3,358
MINORITY INTEREST                                     2,024        14,238
FUTURE MINING AND INCOME TAXES                        1,086         1,446
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                                                     15,863        24,163
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SHAREHOLDERS' EQUITY
  Capital stock                                      64,672        61,016
  Contributed surplus                                 5,678         5,092
  Deficit                                            (3,096)       (4,647)
  Accumulated other comprehensive income               (236)          352
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                                                     67,018        61,813
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                                                     82,881        85,976
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CONSOLIDATED STATEMENTS OF CASH FLOW
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                             (in thousands of Canadian dollars)
(Unaudited)               Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
                         2008           2007           2008          2007
                            $              $              $             $
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CASH FLOW FROM
 (USED IN) OPERATING
ACTIVITIES
  Net earnings (loss)   2,086           (986)         1,635         6,671
  Adjustments for:
    Depreciation and
     depletion          1,541          1,077          5,687         5,628
    Stock-based
     compensation         142            164            526           575
    Accretion expense
     - asset retirement
     obligations           52             45            182           178
    Loss (gain) on
     disposal of mining
     assets                 8            (37)            29        (8,042)
    Loss (gain) on
     disposal of
     short-term
     investments            -            (47)            11          (444)
    Minority interest   1,449            (55)         2,035           (36)
    Future mining
     and income taxes     (26)           190           (359)         (334)
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                        5,252            351          9,746         4,196
  Net change in
   non-cash working
   capital items        2,176         (1,095)         2,371         1,803
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                        7,428           (744)        12,117         5,999
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CASH FLOW FROM
 (USED IN) INVESTING
ACTIVITIES
  Acquisition of
   Patricia Mining
   Corp.               (6,984)             -         (6,984)            -
  Acquisition of
   short-term
   investments              -           (296)           (23)         (642)
  Disposal of
   short-term
   investments              -            651            712         6,454
  Disposal of mining
   assets                  24             37             91         3,435
  Property, plant
   and equipment
   - Island Gold
   Mine                (1,591)        (1,653)        (3,079)       (4,495)
  Property, plant
   and equipment
   - Beaufor Mine         (15)          (217)          (127)       (1,060)
  Property, plant
   and equipment
   - East Amphi Mine        -              -              -           (34)
  Other property,
   plant and equipment   (383)          (706)        (1,987)         (582)
  Cash received from
   an advance to
   a minority partner       -            375            750         1,125
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                       (8,949)        (1,809)       (10,647)        4,201
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CASH FLOW FROM
 (USED IN) FINANCING
ACTIVITIES
  Issue of common
   shares                   -              -             25           183
  Redemption of
   common shares          (85)             -           (768)         (658)
  Repayment of the
   long-term debt      (1,950)             -         (1,950)            -
  Contribution from
   (distribution to)
   a minority partner     (47)           540            (47)        1,440
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                       (2,082)           540         (2,740)          965
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Net increase
 (decrease) in cash
 and cash equivalents  (3,603)        (2,013)        (1,270)       11,165
Cash and cash
 equivalents,
 beginning of period   29,624         29,304         27,291        16,126
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Cash and cash
 equivalents, end
 of period             26,021         27,291         26,021        27,291
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EXPLORATION AND PROJECT EVALUATION
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                             (in thousands of Canadian dollars)
(Unaudited)               Three months ended            Fiscal year ended
                  December 31,   December 31,   December 31,  December 31,
                         2008           2007           2008          2007
                            $              $              $             $
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Exploration costs
 - Mines
  Beaufor Mine            706            524          2,921         1,874
  Island Gold Mine        868            239          2,293           505
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                        1,574            763          5,214         2,379
Exploration costs
 - Other properties
  Golden Wonder
   property               539            502          4,202           665
  Francoeur/Wasamac
   properties              59              1            184           142
  Valentine Lake
   property               153             (3)           347         1,017
  Camflo Northwest
   property                 -            (11)             -           112
  Other properties          5              7             20            50
  Project evaluation      122             32            373           124
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                          878            528          5,126         2,110
Exploration tax credits   (75)           (25)          (643)       (1,201)
Reclassification of
 exploration tax credits
 from previous years        -              -            850             -
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                        2,377          1,266         10,547         3,288
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Contacts:
Kei Advisors LLC
James Culligan
Investor Relations
716-843-3874
This email address is being protected from spambots. You need JavaScript enabled to view it.
www.richmont-mines.com


SOURCE: Richmont Mines Inc.

mailto:This email address is being protected from spambots. You need JavaScript enabled to view it. http://www.richmont-mines.com

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