Detour Gold Provides Updated Life of Mine Plan and Reaffirms Commitment to Optimizing Detour Lake Operation

• Detour Lake is a unique asset in a good jurisdiction with a long mine life and a large mineral reserve
• LOM average annual gold production estimated at approximately 659,000 ounces
• LOM pre-tax cash flows estimated at C$8.4 billion
• After-tax NPV_5% of C$3.45 billion which equates to approximately C$19.70 per share
• A new COO, updated mining plan, operational improvements and a renewed focus on execution, together with a strong balance sheet, solidify path to deliver value to shareholders

TORONTO, June 27, 2018 /CNW/ - Detour Gold Corp. (TSX: DGC) ("Detour Gold" or the "Company") reports the details of its updated life of mine plan ("2018 LOM Plan") for its Detour Lake operation located in northeastern Ontario. The 2018 LOM Plan, in conjunction with a stronger leadership team dedicated to implementing several key operational improvement initiatives, represents an intensified commitment to optimize the Detour Lake operation.

"Detour Gold is moving forward on an achievable plan to create long-term value for all of our shareholders, with whom we have always maintained an open dialogue. Our Board has made important changes and is committed to making further changes, as necessary, to ensure Detour Lake becomes a consistently profitable operation," said Alex Morrison, Board Chairman. "With our new mine operating plan in place and a team led by our new Chief Operating Officer, Frazer Bourchier, to execute it, we are confident that we are on track to position the Company as a leading intermediate gold producer. Both management and the Board are highly focused on operational improvements. The impact of the changes we are making will not be evident immediately, but we intend to deliver consistent execution under Frazer's leadership."

Strategic Priority

The Board is committed to improving upon Detour Lake's past operational performance and has taken action to ensure it becomes a sustainable and consistently profitable mine.  Bringing on experienced and qualified talent, including a new Chief Operating Officer ("COO") who has led an extensive evaluation and analysis of our operation that has resulted in this revision of our LOM plan, was a key element of our strategy. This revised plan has been his focus since joining Detour Gold in January 2018. Our Board of Directors, along with our Technical Committee chaired by Ed Dowling, is providing the active oversight necessary to ensure the Company meets expectations.  

Given the strength of the Company's COO, and the time he and the rest of the management team need to devote their full attention to implementing operational improvements, the Board strongly believes that Michael Kenyon as Interim CEO, who has significant history with Detour Gold coupled with solid technical expertise, is the best solution in the near-term.  In due course, the Board will complete an extensive CEO search to identify an appropriate individual to lead Detour Gold going forward.

The Company believes that the implementation of the 2018 LOM Plan, following the detailed six-month review undertaken by the new COO and his team, is the best value-maximizing alternative available to it today. The Board acknowledges that change in our industry takes time.  If any bona fide strategic alternatives become available to the Company that compete with the value delivered by this standalone plan, the Board would pursue the best course of action to maximize shareholder value.

Detour Gold intends to file a National Instrument 43-101 technical report (the "Technical Report") by early fourth quarter of 2018. The Technical Report will be available on SEDAR (www.sedar.com) and on the Company's website (www.detourgold.com).

The Company will host a conference call on Thursday, June 28, at 9:00 AM E.T. to present the 2018 LOM plan. The accompanying presentation will be posted on the Company's website.

Highlights of the 2018 LOM Plan

The Company had previously disclosed preliminary information on the 2018 LOM Plan in its news release of April 26, 2018. The 2018 LOM Plan includes all production and costs at the Detour Lake mine site and does not include costs for corporate, exploration and interest. 

All references to non-IFRS measures are denoted with the superscript "o" and are discussed at the end of this news release. All dollar amounts are in Canadian dollars unless otherwise stated. US$ refers to United States dollars. Totals may not add due to rounding.

• Proven and probable reserves of 16.0 million ounces of gold contained in 517 Mt grading 0.97 g/t over a mine life of approximately 23 years (as at December 31, 2017)
• Average annual gold production of approximately 659,000 ounces over LOM at average total site costs^o of US$843 per ounce sold
• For the period 2019-2023, average annual gold production of approximately 608,000 ounces at average total site costs^o of US$983 per ounce sold
• Annual total material mined ramping up to 129 Mt by 2024
• Annual plant throughput maintained at 23.0 Mt starting in 2021
• Estimated LOM capital costs of $2.5 billion (excluding deferred stripping)
• Estimated LOM pre-tax cash flows of $8.4 billion at US$1,300 per ounce and CAD/US exchange rate of 1.25
• After-tax NPV_5% of $3.45 billion as at January 1, 2018

Frazer Bourchier, COO, commented: "This updated mine plan generates a more consistent near and mid-term gold production profile with a cost structure based, in part, on realized performance to date while allowing flexibility for future permitting requirements. All input assumptions consider recent performance, current operational maturity and future planned operational improvements. It is the most prudent and achievable mine development approach for the Detour Lake operation.

The Company will continue to target unit cost reductions over the next five years with increased productivity through improved operational efficiency. We are moving forward with the implementation of numerous plans around organizational structure, leadership, operational systems, enhanced procedures and selective additional capital. We are also assessing automation opportunities for additional upside not currently reflected in the 2018 LOM Plan. This new operational strategy should ensure the success of the Company and we are keen to report on our progress. Detour Lake is a unique asset with a long mine life, a large mineral reserve in a good jurisdiction." 

Key Inputs in 2018 LOM Plan

Operating Plan

The 2018 LOM Plan successfully reduces the large annual variation in projected gold production under the prior plan. Specifically, the gold production profile is more consistent over the next 12 years at approximately 614,000 ounces per year and subsequently increases to approximately 725,000 ounces per year for the next 10 years.

The mine life of 22.6 years is based on the amended mineral reserves statement which is included at end of this news release. The mine production plan assumes the continued development of the Detour Lake pit, including successful attainment of required progressive permits, with the start-up of the West Detour pit in 2025 and the North pit in 2026. The majority of ore tonnes (88%) are sourced from the Detour Lake pit with the balance coming from the West Detour and North pits. Plant throughput capacity is maximized with the processing of LG Fines over the LOM (average grade of 0.59 g/t Au and representing less than 5% of total LOM mill feed).

The mining rate for the Detour Lake pit gradually ramps up from 107 Mt in 2018 to 129 Mt in 2024. During this period, the waste to ore strip ratio will vary annually from 3.5:1 to 6.6:1. The ultra-class haulage truck fleet is projected to increase from the current 34 to 39 CAT 795 trucks in 2022 while no increase is expected for the current two electric rope shovels (CAT 7495) and five hydraulic shovels (CAT 6060).

The mining phases have been subdivided into more contained geographic areas compared to the prior plan. The mining benches remain at approximately 120 metres in width and 12 metres in height with two access ramps for waste extraction servicing the upper portion of the pit. There is no change to the wall slope geometry and dilution assumptions. As reported on April 26, 2018, the Company has already started on the mine sequencing changes with a focus on the south wall development of the Detour Lake pit.

Production from the West Detour pit is scheduled from 2025 to 2036, starting at 8 Mt per year to a maximum mining rate of 31 Mt per year in 2028. It assumes a combination of small equipment (CAT 6030 excavators and CAT 777 haul trucks) and shared usage of the Detour Lake pit mining fleet. The Company plans to use the West Detour pit, once depleted, for tailings and/or waste rock deposition. Production from the North pit is scheduled from 2026 to 2030, using a contractor at a maximum mining rate of approximately 6 Mt per year.

The 2018 LOM Plan assumes a gradual ramp-up of the processing plant capacity, from 21.0 Mt in 2018 to 23.0 Mt starting in 2021. Overall gold recovery is expected to average 92.8% over the LOM plan.

Mine Production Plan Summary

A detailed annual mine production plan is included at the end of this news release.

Site Operating and Capital Costs

Total site costs^o over the LOM are projected to average US$843 per ounce sold. 

Note: The tables below show the estimated operating and capital costs starting at Year 2019 and provide the total and average over the LOM from Year 2018 to 2040 inclusive.

Operating and Capital Cost Summary

Operating costs assumptions were derived from a combination of zero-based cost modeling with future anticipated productivities based on improvements from past and upcoming operating efficiencies. Approximately 75% of operating costs are Canadian dollar denominated. The most significant changes in unit costs from the prior LOM plan are:

• 9% increase in average mining unit costs^o over the LOM mostly as a result of lower truck haulage efficiency and higher truck hours leading to higher diesel consumption and increased mobile equipment maintenance costs
  
  
• 8% increase in average milling unit costs^o over the LOM primarily related to higher anticipated key reagent consumption (cyanide, sulfur dioxide, and lead nitrate) and increased labour and maintenance costs
  
  
• 16% increase in average G&A unit costs^o over the LOM mainly due to higher site infrastructure costs for water management and site services, inflationary impacts and increased personnel on site

Site capital costs over the LOM, excluding deferred stripping, are estimated at $2.5 billion. An additional $230 million was added from the prior LOM plan to reflect the following:

• Tailings facility and water management: Higher contractor rates and dam design changes (impacting Cell 2) based on final geotechnical designs
  
  
• Processing plant: Projects being implemented over the next three years to ensure plant operating time improvements, sustainable throughput, and health and safety enhancement projects
  
  
• Mining: Some additional haul truck replacement, pit-related infrastructure, and added safety related technology and infrastructure
  
  
• Closure Plan: Additional closure costs to achieve higher standards

Capital Expenditure Summary

Economic Analysis

The economic cash flow model, based on a long-term gold price of US$1,300/oz and a CAD/US exchange rate of 1.25, generates an after-tax net present value (NPV) at a 5% discount rate as at January 1, 2018 of $3.45 billion.

The economic analysis summary is presented below:

The Detour Lake operation provides significant leverage to the gold price. The after-tax NPV_5% sensitivity analysis for the key metrics are shown below.

Operational Improvement Strategy

The main operational improvement initiatives that are being implemented are set out below.

A number of these initiatives have already commenced in order to achieve increased confidence in execution success of the 2018 LOM Plan. These include, but are not limited to, a review, modification and strengthening of the site organizational structure. International recruitment firms have been engaged to assist with this ongoing process in addition to changes already made earlier in 2018.

Other initiatives include an operational gap analysis comprising various mine site reviews with external international professionals mostly focused on maintenance and processing plant activities. These audit findings will confirm the organizational review, the need for additional capital in various areas, and the effectiveness and shortcomings of the current mine operating systems. 

The operating systems associated with the key value drivers for the mine operation remain an ongoing critical area of assessment. Some of the systems mapping and its assessment was completed recently. This will encompass increased training for, and improvements to, the current systems, and streamlining to a more fully integrated mine-wide operational system.

The purpose of the mine-wide capital review, which started in the first quarter of 2018 with the processing plant, is to understand options to rationalize the mobile fleet size and to increase the operating time (i.e. availability and utilization) of the mobile and fixed plant asset in a sustainable manner. This is an ongoing progressive process over the next two years.

In addition, automation, both in the medium and longer term, will include vastly improved data analytics with effective decision making and short interval controls. An upside not currently reflected in this LOM plan will be an investigative initiative into realizable robotics potential for haul trucks and production drills. The success of autonomous integration would provide further upside to the 2018 LOM Plan's metrics and financials.

Permitting

The 2018 LOM Plan adds permitting flexibility by providing the Company with additional time to progress the permits required for the West Detour project, specifically revolving around the North pit (2026) and impacts to Walter Lake in the western end of the Detour Lake pit (2028). The permitting time for the West Detour pit remains the same as the previous LOM plan at 2025. 

The Company has obtained support from three of its four Aboriginal communities for the further development of the Detour Lake pit as well as the West Detour project. The Company continues to face challenges with the Moose Cree First Nation leadership but will continue its efforts to engage. 

The Company intends to submit the Final Draft Environmental Study Report for the West Detour project with the Ministry of Natural Resources & Forestry ("MNRF") by year-end. Once approval is received from MNRF, the Company will proceed with the required permit applications associated with the West Detour project.

Key Opportunities & Risks

Key opportunities not reflected in the 2018 LOM Plan include:

• Optimization studies initiated for equipment, fleet automation and technology advancements
• Reducing dilution from current assumptions
• Further improvements in plant operating time, gold recovery and plant throughput
• Potential to add mineral resources
• Potential to convert mineral resources into mineral reserves
• Obtaining key operational permits ahead of planned schedule
• Advancing Zone 58N to development and production
• Renewal of electricity contract post 2024 at lower rate than currently assumed
• Remote mining tax application

Key risks to the LOM 2018 Plan include:

• Further delays in obtaining various operating permits
• Not achieving the 2018 LOM Plan assumptions including mining productivities and processing plant capital effectiveness
• Adverse gold price and/or CAD/US exchange rate over a long-time period
• Adverse mineralogy in ore feed

Amended Mineral Reserve Statement

Mineral reserves at December 31, 2017 (reported in February 2018) were slightly adjusted based on final pit designs for the 2018 LOM Plan and resulted in the addition of approximately 230,000 ounces of gold. There was no change to the gold price assumption of US$1,000 per ounce at a CAD/US exchange rate of 1.10 for estimating mineral reserves. Based on the expected throughput rates projected in the 2018 LOM plan, the mineral reserve life of the Detour Lake mine is approximately 22.6 years. The complete mineral reserve and resource statement can be found at the end of this news release.

Since 2014 to end of May 2018, the mineral resource block model has reconciled positively with approximately 2.8% additional ounces (4.4% more tonnes and 1.6% less grade). A recent external mineral resource audit completed in June 2018 by SRK confirmed the integrity of the Detour Lake mineral resource model.

Conference Call & Briefing Session 

The Company will host a conference call on June 28, 2018 at 9:00 AM E.T. to present the updated LOM plan. Access the conference call as follows:

• Via webcast, go to www.detourgold.com and click on the "Updated LOM Plan Conference Call and Webcast" link on the home page
• By phone toll free in North America 1-800-319-4610
• By phone Toronto local and internationally 416-915-3239

A playback will be available until July 28, 2018 by dialing 604-674-8052 or 1-855-669-9658 within Canada and the United States, using pass code 2402. The webcast and presentation slides will be archived on the Company's website.

The Company will host a technical briefing session for analysts and institutional investors on June 28, 2018 at 10:30 AM E.T. to review the results of the updated LOM plan. For further details on this event, contact Sandy Noyes, Investor Relations Associate, at 416-309-7345.

Access to the webcast : http://services.choruscall.ca/links/detourgoldlive20180628.html

Technical Information/Qualified Persons

A NI 43-101 compliant Technical Report will be filed on SEDAR and on the Company's website by early fourth quarter 2018.

The scientific and technical content of this news release was reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects."

The mineral reserve and mineral resource estimates for the Detour Lake operation (except for the North pit mineral resources) were prepared under the supervision of Drew Anwyll, P.Eng., Senior Vice President Technical Services and the mineral resources for the North pit were prepared by Paul Daigle, P.Geo, of P. Daigle Consulting Services, both Qualified Persons as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects".

About Detour Gold

Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.

For further information, please contact:

Detour Gold Corp., Commerce Court West, 199 Bay Street, Suite 4100, P.O. Box 121, Toronto, Ontario M5L 1E2

Detour Lake Operation - Mine production plan:

Mineral Reserves and Resources (Amended and effective December 31, 2017)

Information Concerning Estimates of Mineral Reserves and Resources
These estimates have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States' securities laws. The terms "mineral reserve", "proven mineral reserve and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Definition Standards. The CIM Definition Standards differ from the definitions in the United States Securities and Exchange Commission ("SEC") Guide 7 ("SEC Guide 7") under the United States Securities Act of 1933, as amended. Under SEC Guide 7, a "final" or "bankable" feasibility study is required to report mineral reserves, the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in NI 43-101 and recognized by Canadian securities laws but are not defined terms under SEC Guide 7 or recognized under U.S. securities laws. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be upgraded to mineral reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource" will ever by upgraded to a higher category. Under Canadian securities laws, estimates of "inferred mineral resources" may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Accordingly, these mineral reserve and mineral resource estimates and related information may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal laws and the rules and regulations thereunder, including SEC Guide 7.

Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for economic extraction.  Measured and indicated mineral resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource.  Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied.  Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves.  There is no certainty that mineral resources of any category can be upgraded to mineral reserves through continued exploration. 

Detour Gold's mineral reserve and mineral resource figures are estimates and Detour Gold can provide no assurances that the indicated levels of gold will be produced or that Detour Gold will receive the gold price assumed in determining its mineral reserves.  Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices.  Valid estimates made at a given time may significantly change when new information becomes available.  While the Company believes that these mineral reserve and mineral resource estimates are well established and the best estimates of Detour Gold's management, by their nature mineral reserve and mineral resource estimates are imprecise and depend, to a certain extent, upon analysis of drilling results and statistical inferences which may ultimately prove unreliable.  If the Company's mineral reserve or mineral reserve estimates are inaccurate or are reduced in the future, this could have an adverse impact on Detour Gold's future cash flows, earnings, results or operations and financial condition.

Detour Gold estimates the future mine life of the Detour Lake operation. Detour Gold can give no assurance that its mine life estimate will be achieved.  Failure to achieve this estimate could have an adverse impact on Detour Gold's future cash flows, earnings, results of operations and financial condition.

Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this news release. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Total site costs and total site costs per ounce

Detour Gold reports total site costs and total site costs per ounce on a sales basis.  Total site costs include operating costs such as mining, processing, site general and administration, bullion delivery, refining, agreements with Aboriginal communities and capital costs (including closure costs), net of silver sales. Total site costs include the costs associated with providing the royalty in kind ounces.

The Company calculates total site costs per ounce as the sum of total site costs (as described above) divided by gold ounces sold. 

Unit costs:

Mining unit costs: calculated as mining costs divided by total tonnes mined (ore + waste).
Processing unit costs: calculated as processing costs (excluding bullion delivery and refining) divided by the total tonnes milled.
G&A unit costs: calculated as site G&A costs (excluding costs related to agreements with Aboriginal communities) divided by total tonnes milled.

Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied.

Cautionary Note regarding Forward-Looking Information

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively referred to herein as "forward-looking statements"). Forward-looking statements reflect current expectations or beliefs regarding future events or the Company's future performance.  All statements other than statements of historical fact are forward-looking statements.  Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates", "targets" or "believes", or variations of, or the negatives of, such words and phrases or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements.  All forward-looking statements, including those herein are qualified by this cautionary statement.  Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date or dates specified in such statements.

Specifically, this press release contains forward-looking statements regarding LOM average annual gold production of approximately 659,000 ounces; LOM pre-tax cash flows of C$8.4 billion; the Board being committed to making further changes as necessary to ensure Detour Lake becomes a consistently profitable operation; the Company being confident that it is on track to position the Company as a leading intermediate gold producer; the impact of the changes being made not being evident immediately, the intention to deliver consistent execution; the Board being committed to improving upon Detour Lake's past operational performance and becoming a sustainable and consistently  profitable mine; the Board and Technical Committee providing the active oversight necessary to ensure the Company meets expectations; in due course, the Board completing an extensive CEO search to identify an appropriate individual to lead Detour Gold going forward; the implementation of the 2018 LOM Plan being the best value-maximizing alternative available to the Company today; the Board, if any bona fide strategic alternatives become available to the Company that compete with the value delivered by the standalone plan, pursuing the best course of action to maximize shareholder value; Detour Gold filing a Technical Report by early fourth quarter of 2018; average annual gold production of approximately 659,000 ounces over LOM at average total site costs of US$843 per ounce sold; for the period 2019-2023, average annual gold production of approximately 608,000 ounces at average total site costs of US$983 per ounce sold; annual total material mined ramping up to 129 Mt by 2024; annual plant throughput maintained at 23.0 Mt starting in 2021; LOM capital costs of $2.5 billion (excluding deferred stripping); LOM pre-tax cash flows of $8.4 billion at US$1,300 per ounce and CAD/US exchange rate of 1.25; the updated mine plan generating a more consistent near and mid-term gold production profile; the Company continuing to target unit cost reductions over the next five years with increased productivity through improved operational efficiency; the Company moving forward with the implementation of numerous plans around organizational structure, leadership, operational systems, enhanced procedures and selective additional capital; the Company also assessing automation opportunities for additional upside not currently reflected in the 2018 LOM Plan; the new operational strategy ensuring the success of the Company; the mine parameters in the 2018 LOM Plan; the gold production profile being more consistent over the next twelve years at approximately 614,000 ounces per year and subsequently increasing to approximately 725,000 ounces per year for the next 10 years; a  mine life of 22.6 years; the mine production plan assuming the continued development of the Detour Lake pit including successful attainment of required progressive permits, with the start-up of the West Detour pit in 2025 and the North pit in 2026; the majority of ore tonnes (88%) being sourced from the Detour Lake pit with the balance coming from the West Detour and North pits; plant throughput capacity being maximized with the processing of LG Fines over the LOM (average grade of 0.59 g/t Au and representing less than 5% of total LOM mill feed); the mining rate for the Detour Lake pit gradually ramping up from 107 Mt in 2018 to 129 Mt in 2024 and the strip ratio varying annually from 3.5:1 to 6.6:1 during this period; the ultra-class haulage truck fleet increasing from the current 34 to 39 CAT 795 trucks in 2022 with no increase for the current two electric rope shovels (CAT 7495) and five hydraulic shovels (CAT 6060); production from the West Detour pit being scheduled from 2025 to 2036; the Company's plans to use the West Detour pit, once depleted, for tailings and/or waste rock deposition; production from the North pit from 2026 to 2030; ramp-up of the processing plant capacity from 21.0 Mt in 2018 to 23.0 Mt starting in 2021; overall gold recovery averaging 92.8% over the LOM Plan; details of the annual mine production plan; total site costs over the LOM averaging US$843 per ounce sold; details of the operating and capital costs over the LOM; approximately 75% of operating costs being Canadian dollar denominated; a 9% increase from the prior LOM plan in average mining unit costs over the LOM; an 8% increase from the prior LOM plan in average milling unit costs over the LOM; a 16% increase from the prior LOM plan in average G&A unit costs over the LOM; site capital costs over the LOM, excluding deferred stripping, of $2.5 billion; $230 million in additional capital expenditures from the prior LOM plan for tailings facility and water management, processing plant, mining and closure plan; result of the economic analysis of the 2018 LOM Plan; the main operational improvement initiatives being implemented; the success of autonomous integration further providing upside to the 2018 LOM Plan's metrics and financials; the Company continuing its efforts the Company submitting the Final Draft Environmental Study Report for the West Detour project with the MNRF by year-end and proceeding with the required permit applications associated with the West Detour project; the key opportunities and risks of the 2018 LOM Plan; and details of the mine production plan from 2018 to 2040.

Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control.  These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation, regulation and policies, support of the Company's Aboriginal communities, receipt of permits, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration, development and production industry, as well as those risk factors listed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2017 Annual Information Form ("AIF") and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect forward-looking statements. Actual results and developments and the results of the final revised life of mine plan are likely to differ, and may differ materially or materially and adversely, from those expressed or implied by forward-looking statements, including those contained in this news release.  Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; operating and capital costs; results of operations; the Company's available cash resources; the Company's ability to attract and retain skilled staff; the mine development and production schedule and related costs; dilution control; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for the proposed development of the West Detour project and the continued development of the Detour Lake pit, other development projects and other operations; the timing and results of consultations with the Company's Aboriginal partners; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; required capital investments; estimates of net present value and internal rate of returns; the accuracy of mineral reserve and mineral resource estimates, production estimates and capital and operating cost estimates and the assumptions on which such estimates are based; market competition; ongoing relations with employees and impacted communities and general business and economic conditions; and general business and economic conditions.

The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.  If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

SOURCE Detour Gold