MONTREAL, QUEBEC, CANADA--(Marketwire - Nov. 7, 2011) - Richmont Mines Inc. (News - Market indicators)(NYSE Amex:RIC)("Richmont" or the "Corporation"), today announced financial and operational results for its third quarter ended September 30, 2011. Financial results are based on International Financial Reporting Standards ("IFRS") and dollars are reported in Canadian currency, unless otherwise noted.

Highlights:

• Q3 2011 net earnings of $6.1 million, or $0.19 per share, versus Q3 2010 net earnings of $2.5 million, or $0.08 per share;
  
  
• Year-to-date net earnings of $19.8 million, or $0.63 per share, versus net earnings of $4.7 million, or $0.17 per share, in 2010;
  
  
• Q3 2011 operating cash flow of $12.0 million, or $0.38 per share, versus Q3 2010 operating cash flow of $6.3 million, or $0.20 per share;
  
  
• Year-to-date operating cash flow of $29.5 million, or $0.94 per share, versus operating cash flow of $13.1 million, or $0.47 per share, in 2010;
  
  
• Q3 2011 gold sales of 17,832 ounces at an average selling price of US$1,739 (CAN$1,701) per ounce, versus gold sales of 18,084 ounces at an average selling price of US$1,251 (CAN$1,288) in Q3 2010;
  
  
• $58.8 million in working capital including $53.8 million of cash and cash equivalents as at September 30, 2011; no gold or currency hedging contracts or long-term debt.
  
  

Mr. Martin Rivard, President and CEO, commented on the quarter: "Overall we are very satisfied with our results this quarter, with net earnings of $6.1 million, a significant improvement over last year's $2.5 million. We also generated an operating cash flow of $12.0 million and saw our cash position increase by $5.5 million in the quarter, highlighting that our operations continue to perform well. We are also pleased with the advancements made in our exploration efforts during the third quarter. In particular, our program on Wasamac continued to generate favourable results, and as a result we expanded our 2011 drill campaign to 45,000 metres from 35,000 metres previously. This asset has the potential to provide Richmont with an important production catalyst. In addition to finishing our extensive exploration drill program in 2011, our near-term goals for Wasamac include an updated resource calculation in the fourth quarter of this year, and subsequently completing a preliminary economic assessment in the first quarter of 2012. Our evaluation of the Monique exploration property has also progressed well in 2011, and we expect to complete a Regulation 43-101 report in the fourth quarter of this year."

Commenting on the Corporation's operations, Mr. Rivard continued: "The Beaufor Mine recently attained the noteworthy milestone of four years without a lost time accident. I would like to applaud our team at Beaufor for achieving this remarkable record that further underscores Richmont's commitment to the health and safety for all of its employees. Operationally, Beaufor saw improved tonnage and gold sales in the third quarter. While third quarter results at Island Gold were slightly below last year's levels, primarily as a result of unplanned repairs on the mill's grizzly feeder during the quarter, production from this mine year-to-date is in line with our forecasts, and recovered grades in the first nine months of 2011 improved 9% over 2010 levels. Overall, we are pleased with the performance from our operating mines, and both are on track to meet or slightly surpass their gold production objectives for the year. Furthermore, we are pleased to report that we have obtained our Certificate of Approval to proceed with the development of the W Zone on the Beaufor property, and we look forward to advancing this satellite deposit over the next year." Lastly, Mr. Rivard discussed development efforts at the Francoeur Mine, "Our development of the Francoeur Mine continues to advance, and an additional 1,249 metres of underground development and 3,718 metres of definition drilling were completed in the third quarter. We now have 110 employees contributing to the momentum, however, recruitment of skilled labour remains very competitive and we will continue to focus on providing our employees with training for this type of conventional mining. As we have experienced development delays so far this year, Francoeur will not recover the forecasted 10,000 to 15,000 ounces of gold from processing development ore in 2011. Therefore, we anticipate Richmont's total annual production to be 75,000 to 80,000 ounces of gold in 2011 (versus 80,000 to 85,000 ounces) when including development ounces from Francoeur. We remain committed to advancing Francoeur to the commercial production stage in the first half of 2012."

Third Quarter Results

Revenue for the third quarter of 2011 was $30.5 million, a 28% improvement over the $23.8 million of revenue generated in the comparable quarter of 2010. Driving this growth was a higher average selling price of US$1,739 (CAN$1,701), versus US$1,251 (CAN$1,288) in the comparable period of 2010.

Cost of sales totalled $18.2 million in the third quarter of 2011, up from $17.0 million in the year-ago period, primarily a reflection of higher costs at Richmont's Beaufor Mine. The total average cash cost per ounce of gold sold increased to US$904 (CAN$884) in the third quarter from US$775 (CAN$798) in the comparable period of 2010, reflecting increased mining costs at the Beaufor Mine due to the greater amount of development necessary to access the ore zones and higher milling costs associated with operating the Camflo Mill at less than 30% capacity. However, utilisation of the mill is expected to increase with the ramping up at the Francoeur Mine.

Exploration and project evaluation costs totalled $3.8 million in the third quarter of 2011, up from $2.7 million in third quarter of 2010. This reflects expanded exploration spending as a result of the extensive program currently underway on the Wasamac property, and the completed program on the Monique property.

Richmont generated net earnings of $6.1 million, or $0.19 per share, in the third quarter of 2011, a notable improvement over the net earnings of $2.5 million, or $0.08 per share, in the third quarter of 2010.

Third Quarter News

Wasamac Exploration Program

The ongoing exploration program on the Wasamac property continued to yield favourable results during the third quarter. New gold intercepts announced during the third quarter included 7.28 g/t over 31.40 metres in the Main Zone, 3.14 g/t over 9.99 metres and 3.45 g/t over 7.66 metres in Zone 1, 2.17 g/t over 32.88 metres in Zone 2, and 4.52 g/t over 12.17 metres in Zone 3 (all true width). Results from the drill campaign continue to support the Corporation's objective of evaluating the potential for an underground bulk mining operation on the property and reaffirm Richmont's optimism for this asset's long-term potential for the Corporation's shareholders. Richmont will incorporate drill results from the 2011 campaign in an updated resource calculation, expected in Q4 2011, and will use this information to complete a Preliminary Economic Assessment ("PEA") in Q1 2012. Please see the August 30, 2011 press release entitled "Richmont intercepts 7.28 g/t Au over 31.40 metres at Wasamac; New drill results reaffirm strong potential of this project" for additional details.

Monique Exploration Program

Richmont published the final drill results from the completed 8,117 metre exploration drill program on the G and J zones of the Monique exploration project located near Val-d'Or, Quebec during the third quarter. The favourable results of the 2011 drill campaign further support Richmont's goal of assessing the viability for a small open-pit operation on the property. The Corporation plans to initiate additional drilling on a newly identified target (a new gold zone was identified in hole MO-200-02, that returned a value of 6.69 g/t Au over 4.40 metres) and on two anomalies on the property that were identified via a 12 km IPower 3D induced polarization survey this fall. The necessary geotechnical, geomechanical and hydrogeological studies on the property have been completed in preparation for permit application requirements for this project. Richmont will complete a Regulation 43-101 compliant technical report and plans to submit a permit application for the development of this asset during the fourth quarter of 2011. Please refer to the August 24, 2011 press release entitled "Richmont updates final drilling results from the Monique Project; Studies underway to accelerate development of this asset" for additional details.

W Zone

The Corporation is pleased to report that it has received its Certificate of Approval for the development of the W Zone, a near-surface satellite deposit on the Beaufor property. Construction of the portal has begun and ramp development will follow. During the third quarter of 2011, a total of $1.5 million was spent on property, plant and equipment, exploration and development related to the W Zone. Richmont anticipates that one year of development will be required to access the targeted mineralized zone. In addition, the Corporation will complete additional drilling from surface to further evaluate the potential of the W and other previously identified near-surface zones during 2012.

Francoeur Mine

A total of 1,249 metres of underground development and 3,718 metres of definition drilling were completed at the Francoeur Mine in the third quarter of 2011. This brought the number of metres year-to-date to 3,492 and 12,755, respectively. In addition, 8,455 tonnes of low-grade development ore from Francoeur were processed at the Camflo Mill during the quarter, which generated 702 ounces of gold, and development ore continues to be transported and processed at the Camflo Mill during the fourth quarter. The Francoeur Mine will not recover the forecasted 10,000 to 15,000 ounces from development in 2011, due primarily to a slower than anticipated development rate to provide access to the 16^th and 17^th levels of the mine. Nonetheless, the Corporation is committed to advancing the mine to the commercial production stage in the first half of 2012.

Nine-Month Review

Revenue for the first three quarters of 2011 totalled $86.3 million, up 34% over the $64.4 million in revenue for the same period in 2010. This reflects a 15% increase in the number of ounces of gold sold, and a 22% increase in the average selling price per ounce of gold in Canadian dollars.

Cost of sales, which includes operating costs, royalties, custom milling and depreciation and depletion, amounted to $52.4 million for the first nine months of 2011, up 5% over $49.8 million during the same period in 2010. This was primarily due to higher mining costs at the Beaufor Mine, a reflection of the greater amount of development necessary to access ore zones, and higher costs for milling ore from the Beaufor Mine, due to operating the Camflo Mill below 30% of capacity. Cash cost per ounce at the Beaufor Mine were US$924 (CAN$904) for the first nine months of 2011, versus US$891 (CAN$917) in the comparable period of 2010, as the recovered grade improved by 30%.

Exploration and project evaluation costs were $8.0 million during the first nine months of 2011, up from $5.3 million during the same period in 2010. This year-over-year cost increase primarily reflects the Corporation's extensive exploration programs on Wasamac and Monique, partially offset by an increase in exploration tax credits to $4.1 million in the first nine months of 2011 versus $2.0 million in the comparable period last year.

Net earnings were $19.8 million, or $0.63 per share, for the first nine months of 2011, up notably from net earnings of $4.7 million, or $0.17 per share, during the comparable period in 2010.

Financial Position and Capital Structure

At September 30, 2011, Richmont cash and cash equivalents were $53.8 million, compared with $40.0 million at December 31, 2010. This increase is primarily attributable to the $29.5 million of cash flow generated from operating activities year-to-date and $2.5 million generated from the issuance of common shares following the exercise of stock options, partially offset by the $21.3 million spent on investment activities in the first nine months of 2011 at the Francoeur, Island Gold and the Beaufor mines. As of September 30, 2011, Richmont Mines has no long-term debt obligations, no hedging contracts and has $58.8 million in working capital with only 32.0 million shares outstanding. On October 31, 2011, as part of a private placement, the Corporation issued 980,500 common shares and 245,125 stock warrants for a total cash consideration of $10.3 million. Each warrant allows for the acquisition of one common share at a price of $13.00 prior to December 31, 2012.

During the third quarter of 2011, the Island Gold Mine processed 63,472 tonnes of ore at a recovered grade of 5.73 g/t, and 11,693 ounces of gold were sold at an average price of US$1,752 (CAN$1,714) per ounce. For the same period last year, 64,283 tonnes of ore were processed at a recovered grade of 5.97 g/t, and 12,332 ounces of gold were sold at an average price of US$1,247 (CAN$1,284) per ounce. Processed tonnage from the Island Gold Mine declined slightly year-over-year in the third quarter as a result of unplanned repairs that needed to be completed on the grizzly feeder. This, combined with a slightly lower recovered grade, resulted in a 5% decline in the number of gold ounces sold compared to the year-ago period. In spite of the unplanned repairs, the mill achieved an average daily output of 736 tonnes per day in the current quarter, a notable improvement over the average of 627 tonnes per day in the second quarter. Third quarter production cash costs at Island Gold increased to US$810 (CAN$792) in 2011, from US$758 (CAN$781) for the same period last year, primarily reflecting the slightly lower recovered grade.

For the first nine months of 2011, 194,712 tonnes of ore were processed at a recovered grade of 5.94 g/t, and 37,209 ounces of gold were sold at an average price of US$1,540 (CAN$1,506) per ounce. This compared to tonnage of 195,684 at a recovered grade of 5.45 g/t, and gold sales of 34,276 ounces at an average price of US$1,198 (CAN$1,234) in the comparable nine month period of 2010. While tonnage was down very slightly year-over-year, recovered grades and gold recovery rates were above last year levels, which resulted in cash costs per ounce sold declining to US$748 (CAN$732) in the first nine months of 2011 versus US$818 (CAN$842) in the comparable period of 2010.

Mr. Rivard commented: "While unexpected mechanical issues at the Island Gold mill negatively impacted this asset's performance during the quarter, the mine is on track to meet its targeted 2011 production of 45,000 to 50,000 ounces of gold."

During the third quarter of 2011, the Beaufor Mine produced 26,801 tonnes of ore at a recovered grade of 7.12 g/t, and 6,139 ounces of gold were sold at an average price of US$1,715 (CAN$1,677) per ounce. In the comparable quarter of 2010, 25,127 tonnes of ore were produced at a recovered grade of 7.12 g/t, and 5,752 ounces of gold were sold at an average price of US$1,258 (CAN$1,296) per ounce. Cash costs at the Beaufor Mine increased to US$1,081 (CAN$1,058) per ounce sold in the third quarter of 2011, compared with US$812 (CAN$836) in the comparable quarter of 2010. The increase in cash costs was primarily attributable to the greater amount of development necessary to access the ore zones and a higher milling cost.

During the first nine months of 2011, 74,944 tonnes of ore were processed from the Beaufor Mine at a recovered grade of 8.28 g/t, and 19,942 ounces of gold were sold at an average price of US$1,537 (CAN$1,503) per ounce. In the comparable period of 2010, 74,459 tonnes of ore at a recovered grade of 6.37 g/t were processed, and 15,256 ounces of gold were sold at an average price of US$1,201 (CAN$1,237) per ounce. Year-to-date cash costs were US$924 (CAN$904) in 2011 versus US$891 (CAN$917) in the comparable period of 2010. This primarily reflects higher recovered grades, the benefits of which were partially mitigated by higher mining and milling costs.

Mr. Rivard commented: "We are pleased with the production levels at the Beaufor Mine in the first nine months of 2011, as our annual production forecast of 20,000 to 25,000 ounces of gold has essentially been achieved. While we expect cash costs to remain at this level due to the extensive development that is necessary to reach the ore zones, the margins realized at this mine are favourable and we continue to evaluate the future potential of previously identified near-surface zones on the property."

Camflo Mill

The Camflo Mill processed a total of 31,828 tonnes during the third quarter of 2011, down 14% from the 36,955 tonnes processed during the third quarter of 2010. Year-to-date, a total of 80,062 tonnes were processed at the Camflo Mill, down from tonnage of 158,701 in the year-ago period. This reflects that no custom milling has been completed in 2011, whereas 11,770 tonnes and 82,939 tonnes were custom milled in the three and nine month periods of 2010, respectively. The Camflo Mill began treating development ore from the Francoeur Mine in the third quarter, during which 8,455 tonnes were processed.

Outlook

Mr. Rivard concluded: "Our emphasis in the near to medium term remains maximizing efficiency and productivity at our two operating mines, bringing the Francoeur Mine into commercial production, and advancing our exploration programs on Wasamac and Monique. The next six months will be very eventful at Richmont, and our team is intently focused on delivering on our fourth quarter objectives of completing a 43-101 report for Monique and an updated resource calculation for Wasamac, and our subsequent goals of publishing a PEA for Wasamac and advancing Francoeur to commercial production as soon as possible. Last, but certainly not least, we continue to evaluate potential acquisition and partnership opportunities to expand our growth profile and increase our reserve and resource base."

Martin Rivard, President and Chief Executive Officer

About Richmont Mines Inc.

Richmont Mines has produced over 1,200,000 ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production in 1991. The Corporation currently produces gold from its Island Gold and Beaufor mines, and is currently advancing the Francoeur Mine to commercial production, which will increase Richmont's production to approximately 100,000 ounces of gold on an annual basis. With extensive experience in gold exploration, development and mining, the Corporation is well positioned to cost-effectively build its Canadian reserve base through a combination of organic growth, strategic acquisitions and partnerships. Richmont routinely posts news and other important information on its website (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 "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" 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 revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont Mines' Annual Information Form, Annual Reports and periodic reports.

Regulation 43-101 ("R 43-101")

The geological data in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D, Exploration Manager, an employee of Richmont Mines Inc., and a qualified person as defined by R 43-101.

Cautionary Note to U.S. Investors Concerning Resource Estimates

Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The reserve and resource estimates in this press release were prepared in accordance with R 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").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.