Richmont Mines (RIC)

Richmont Mines, Inc. was incorporated under Part 1A of the Quebec Companies Act on February 12, 1981 under the name Resources Minieres Rouyn Inc. On June 20, 1991, the Company changed its name to Richmont Mines Inc. Richmont Mines is principally engaged in acquisition, exploration, operation, financing, and development of mineral properties. The Company began its exploration activities in northwestern Quebec in the spring of 1984. During the following years, it acquired a portfolio of properties with gold-bearing potential with a view to development and commercial operation. Richmont Mines owns or holds interests in many mining properties at different stage of exploration. The profitability of gold mining is directly related to the market price of gold as compared to the cost of production. Gold could be easily sold on numerous markets throughout the world and it is not difficult to ascertain its market price at any particular time. The Company's mining operations and exploration activities in the Provinces of Quebec, Ontario and Newfoundland are subject to various laws and regulations governing the environment, agricultural zoning, prospecting, development, production, exports, taxes, labor standards, occupational health, waste disposal, toxic substances, mine safety and other matters.