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Alio Gold Announces Mailing of Management Information Circular

VANCOUVER, British Columbia, April 25, 2018 (GLOBE NEWSWIRE) -- Alio Gold Inc. (TSX:ALO) (NYSE AMERICAN:ALO) (“Alio Gold” or the “Company”), is pleased to announce that the Company has mailed its Management Information Circular dated April 18, 2018 (the “Circular”) in connection with its previously announced arrangement (the “Arrangement”) with Rye Patch Gold Corp. (“Rye Patch”) on March 19, 2018. The annual general and special meeting of Alio Gold shareholders to vote on the Arrangement and other corporate matters is scheduled for May 18, 2018.

The Boards of Directors of both Alio Gold and Rye Patch have unanimously recommended that their respective shareholders vote in favour of the Arrangement. In addition, support for the transaction is evidenced by agreements from Rye Patch’s directors and officers and Primevest Capital Corp. to vote in favour of the Arrangement.

The Circular, which is available on SEDAR and on the Company’s website, provides detailed technical and financial information regarding the assets and operations of Alio Gold, Rye Patch and the combined company.

Approval of the Arrangement by shareholders of Rye Patch is being sought at a meeting of Rye Patch shareholders that will also be held on May 18, 2018.

About Alio Gold

Alio Gold is a growth oriented gold mining company, focused on exploration, development and production in Mexico. Its principal assets include its 100%-owned and operating San Francisco Mine in Sonora, Mexico and its 100%-owned development stage Ana Paula Project in Guerrero, Mexico. Located within the highly prospective Guerrero Gold Belt on 56,000 hectares of underexplored land the Ana Paula Project is a high-grade, high margin project currently in the definitive feasibility stage. An underground decline to provide access for an exploration drill program has been initiated. The drill program will target the continuation of the high-grade gold mineralization below the proposed pit which has the potential to significantly enhance the robust economics of the project. The Company recently announced an agreement to acquire Rye Patch Gold, including its 100% owned Florida Canyon Mine and all of its resource and exploration projects along the Oreana and Cortez Gold trends. The acquisition is expected to be completed in late May 2018.  The Company also has a portfolio of other exploration properties, all of which are located in Mexico.

For more information on the proxy materials please contact our proxy solicitor

Laurel Hill Advisory Group
North America Toll Free
Collect Calls Outside North America
Email: [email protected]

Cautionary Note Regarding Forward-Looking Statements
This news release includes certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities laws. These forward-looking statements or information relate to, among other things: the timing of the annual general and special meeting of Alio Gold shareholders, the timing of the special meeting of Rye Patch shareholders and the expected completion date of the acquisition of Rye Patch.

These forward-looking statements are subject to a number of assumptions, including that there will be no delays to the holding of the annual general and special meeting of Alio Gold shareholders and the special meeting of Rye Patch shareholders, the ability of the parties to receive, in a timely manner, the necessary shareholder, court, stock exchange, creditor and regulatory approvals and the ability of the parties to satisfy, in a timely manner, the other conditions to the closing of the Arrangement. These dates may change for a number of reasons, including inability to secure necessary shareholder, court, stock exchange, creditor and regulatory approvals in the time assumed or the need for additional time to satisfy the other conditions to the completion of the Arrangement. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times.

These forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, receipt of all necessary shareholder, court, stock exchange, creditor and regulatory approvals or consents, lack of material changes with respect to Alio Gold and Rye Patch and their respective businesses and the factors identified under the caption “Risk Factors” in the Circular and documents incorporated by reference therein.

Readers are cautioned against attributing undue certainty to forward-looking statements or information. Although Alio Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. Alio Gold does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

Source: ALO

For further information, please contact:
Lynette Gould
Vice President, Investor Relations
Alio Gold Inc.
Tel: 604-638-8976
[email protected]

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) nor NYSE American accepts responsibility for the adequacy or accuracy of this news release.

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