January 22, 2020, Toronto: Alacer Gold Corp. (“Alacer” or the “Company”) [TSX: ASR and ASX: AQG] announces full-year 2019 production results, unaudited financial results, and 2020 production and cost guidance.
Rod Antal, Alacer’s President and Chief Executive Officer, stated, “We had a successful year where we delivered on our operational, financial, and strategic objectives. Our two producing plants achieved the upgraded guidance targets, with consolidated production of 391,213 ounces1 at unaudited All-in Sustaining Costs2 (“AISC”) of $710 an ounce. This outcome was a direct result of the continued successful ramp up of the sulfide plant coupled with the ongoing in-pit exploration success that allowed us to increase oxide production guidance twice last year3. As a result, we generated over $215 million of unlevered free cash flow4 and deleveraged the balance sheet to $47 million of net debt5, providing financial flexibility for the next leg of growth.
With our foundation as an intermediate producer firmly set in 2019, we expect our Çöpler Mine will again provide another strong year of free cash flow, with 2020 consolidated production guidance of 310,000 to 360,000 ounces at consolidated All-in Sustaining Costs of $735 to $785 an ounce.
Our strategy is to materially improve the remaining life-of-mine6 production profile from the Çöpler District.
We are well advanced in identifying a full spectrum of organic growth opportunities in the near, medium and long-term to support a sustainable production profile of 300,000 to 400,000 ounces per year for at least the next 10 years. These opportunities will underpin a refresh of the Çöpler NI 43-101 Technical Report (“Çöpler District Technical Report”) that we expect to issue later in 2020 as a first step to define our exceptional growth
potential.”
2019 Overview (100%)
? Consolidated production of 391,213 ounces, with 233,567 ounces produced from the sulfide plant and
157,646 ounces produced from the oxide plant
? Preliminary unaudited consolidated AISC of $710 an ounce
? Year-end consolidated cash5 balance of $233 million, debt7 of $280 million resulting in net debt of $47 million
? Commercial production was declared, and the lenders’ completion test was passed for the sulfide plant3, 8
? Ardich Mineral Resource9 continued to grow with interim Indicated Mineral Resource of 816,600 ounces
and interim Inferred Mineral Resource of 593,900 ounces
? Released initial exploration results for the Çöpler Saddle10
? Divested 50% interest in the Gediktepe Project in exchange for a Net Smelter Return and contingent cash payments11 Fourth quarter and full-year 2019 operational and financial results and the related management’s discussion and analysis are planned to be released on or about February 4, 2020 (North America) with a conference call
the same day.

2020 Guidance (100%)
Guidance for the Company’s 2020 gold production and costs are as follows:
(100%, unless otherwise noted) Oxide
Plant12
Sulfide
Plant Consolidated
Gold Ounces Produced ‘000’s 80 to 100 230 to 260 310 to 360
Total Tonnes Mined M - - 23.0
Total Tonnes Treated M 2.7 1.9 4.6
Average Grade Treated g/t gold 1.30 4.30 -
Total Cash Costs (“C2”)2 $/o z 675 to 725 500 to 550 550 to 600
All-in Sustaining Costs (“AISC”)2 $/oz 775 to 82513 650 to 70013 735 to 785
Sustaining Capital Expenditure
General (oxide & sulfide plants) $M - - 9
Tailings Storage Facility (“TSF”) $M - - 17
Heap Leach Pad Expansion ~6Mt $M - - 7
TOTAL SUSTAINING CAPITAL EXPENDITURE $M - - 33
Growth Capital Expenditure
Heap Leach Pad Expansion ~20Mt $M - - 6
TSF – Accelerated Development $M - - 23
Other (including Çöpler District Technical Report) $M - - 20
TOTAL GROWTH CAPITAL EXPENDITURE $M - - 49
Exploration expenditure (attributable) $M - - 14
General and Administrative14 $M - - 13

Consolidated production is expected to be lower in the first half of the year due to the continued ramp up of the sulfide plant and timing of scheduled shutdowns for the autoclaves. In addition, the ongoing in-pit exploration programs at Çöpler and Çakmaktepe continue to develop a number of near-term oxide ore targets.
To the extent any of these targets are realized in 2020, updated guidance will be issued.
Sustaining capital expenditure is planned to total $33 million ($26.4 million attributable), which includes $17 million ($13.6 million attributable) for ongoing construction of the TSF lifts; $7 million ($5.6 million attributable) for the ~6 million tonne heap leach pad expansion; and $9 million ($7.2 million attributable) for
general items, which includes $2 million for optimization work on the sulfide plant.

Growth & Exploration Initiatives
The successful commissioning of the sulfide plant and the exploration successes have provided the business with a number of exceptional growth and development opportunities. These opportunities are being progressed and will continue through 2020 to define development pathways for the organic growth pipeline.
The work encompasses exploration, metallurgical studies, defining capital requirements, land acquisition, social development, permitting and timelines. Work has also started on extending the life of our oxide production and growing the reserve base from our existing Çöpler and Çakmaktepe Mines and potential new mines such as Ardich, and the Çöpler Saddle. Concurrently, optimization work for the sulfide plant is underway, focusing on alternatives to increase throughput above design levels as well as evaluate resource conversion opportunities. As a result of these growth initiatives and the mining schedule, construction of the TSF has been accelerated removing it as a potential bottleneck when the plant throughput is increased. An updated Çöpler
District Technical Report is planned to be issued in 2020.
Growth capital expenditure is planned to total $49 million ($39.2 million attributable), which includes $23 million ($18.4 million attributable) for accelerating construction of the TSF; $6 million ($4.8 million attributable) for work on the additional ~20 million tonne heap leach pad expansion; and $20 million ($16 million attributable) for other growth initiatives, including the Çöpler District Technical Report that will deliver a holistic plan for the organic pipeline.
With the ongoing exploration success, the 2020 exploration spend has been increased to $20 million, of which $14 million is attributable to Alacer. The 2020 exploration program will focus on growing oxide production through drilling at Çöpler in-pit, Çakmaktepe, the Çöpler Saddle, and at Ardich/Greater Çakmaktepe, which will include both step-out drilling to further define the extent of the mineralization and in-fill drilling to determine
options for a starter pit.
Notes
In this announcement:
• All production statistics are on a 100% basis except where otherwise noted
• All $’s are US$’s except where otherwise noted
• All ounces are troy ounces of gold
• 2020 budget assumptions for Turkish Lira to US$ of 6.0 to 1.00 and gold price of $1,500 an ounce