RIC Richmont Mines, Inc.

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March, 2015.

Commission File Number 001-14598

RICHMONT MINES INC.
(Translation of registrant’s name into English)

161, avenue Principale, Rouyn-Noranda (Quebec) J9X 4P6
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [ X ] Form 40-F [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TABLE OF CONTENTS

Richmont Mines Inc. | 2014 Annual Report

MESSAGE FROM THE EXECUTIVE CHAIRMAN
OF THE BOARD

Dear Fellow Shareholders,

I am very encouraged that as I write this letter in early 2015, the gold price environment appears to have found its floor after a turbulent 2014. Signs are pointing to continued gold price appreciation and momentum against a backdrop of a very charged global political landscape. Combined with the weakness of the Canadian dollar these conditions are very favourable for the Corporation. In my dual role as Executive Chairman of the Board and as a significant shareholder, I am very pleased with Richmont’s success in recruiting a President and CEO with the experience and track record of Renaud Adams, and in closing a $38.5 million equity offering. This financing is particularly notable as raising capital in the gold sector has become, for most companies, very difficult to execute. This financing bolsters Richmont’s already strong cash position, and allows Richmont to continue the development of the higher-grade extension leading to the expansion of our Island Gold Mine in Dubreuilville, Ontario. I am confident that this asset will be the cornerstone by which Richmont will secure a future of long-term growth for the Corporation and its employees, and create significant value for our shareholders.

The Island Gold Mine extension continues to have every indication of being a transformational asset for Richmont, and is the type of operation that we have been working towards. It is located in Ontario – one of the most mining-friendly jurisdictions in the world – and this extension is immediately below our fully-staffed, permitted, and producing Island Gold Mine. In addition to having this advantageous starting point, the deeper extension has the key attributes of a long-life cornerstone asset, namely a significant resource base in excess of 1 million ounces, and higher gold grades. Very significantly, the deposit remains open at depth and along strike. An aggressive step-out hole late in the year yielded an impressive 19.87 g/t Au over 3.93 metres at a vertical depth of approximately 1,200 metres, confirming our belief that the deposit has the potential to continue at depth. During the course of 2015 we will remain focused on optimizing our operations, and on further advancing the extension of Island Gold with the objective of fully integrating the deeper resource into our Island Gold Mine commercial production profile in the near-to-medium term. As we proceed with this development work in 2015, I am also pleased to report that we will also recommence an aggressive exploration program to evaluate the upside potential, along strike, at depth, as well as testing some other highly prospective targets elsewhere on the property. I see this exploration initiative as a potentially significant value-driver for Richmont’s future share performance. We believe the market is only just beginning to appreciate the significance of Richmont’s Island Gold asset.

In closing, I would like to thank the Corporation’s Board of Directors, management team, and employees for their hard work, dedication and commitment to Richmont and its long-term success. I would also like to pay special recognition and thanks to one of the members of our Board of Directors, Ms. Elaine Ellingham, who did a fantastic job steering the Corporation and creating shareholder value when she served as Richmont’s Interim President and CEO during the second half of 2014, while the Corporation was completing its executive search for a new President and Chief Executive Officer.

I look forward to 2015 being a great year for Richmont.

/s/ Greg Chamandy
H. Greg Chamandy
Executive Chairman of the Board

February 18, 2015

MESSAGE FROM THE PRESIDENT AND CHIEF EXECUTIVE
OFFICER

Dear Shareholders,

I am very pleased to report that our operations exceeded production expectations in 2014. Collectively our mines generated gold sales of 94,503 ounces during the year, the second highest production level in Richmont’s 30+ year history, while also meeting our mandate to improve overall financial efficiency, as evidenced by the 15% decrease in our consolidated average cash cost per ounce in 2014 to CAN$956 (US$866). Not only is this a testament to the capability, execution and dedication of our team, but it also provides Richmont with a strong foundation to reposition our Island Gold Mine into a longer-life, higher-grade gold asset capable of expanding its future production profile and cash flow.

Richmont’s operational focus in 2014 was on delivering profitable gold production. Our Island Gold Mine in Ontario met this objective, generating 45% of Richmont’s annual consolidated gold sales, at an average Canadian cash cost per ounce that was 13% below 2013 levels. Full year processed tonnage levels were lower at Island Gold however, following reduced amounts of development work completed in the first half of the year as our focus was redirected to preparing and evaluating the future expansion possibilities for the mine. The launch of our accelerated development plans in the fourth quarter is reversing this trend, by repositioning the mine with greater amounts of mineable ore inventory in the near-term. We also successfully replaced and upgraded crushing equipment at the on-site mill during the year. Additional targeted infrastructure and asset investments are planned as the mine site continues to be transformed to meet the longer-term future requirements.

Our Quebec assets delivered solid operational results in 2014, with the Beaufor Mine continuing its strong performance momentum throughout the year, and the Monique open-pit mine exceeding annual production expectations. At Beaufor, the implementation of a more selective mining approach drove a notable 16% increase in processed grade and a 13% decrease in cash cost per ounce of gold sold to CAN$946 (US$856) during the year. Our focus for 2015 remains squarely on generating net free cash flow from this operation, an attainable objective we believe as mining will concentrate on the higher grade M Zone and the closer to surface 350 Zone during the year. Our open-pit Monique Mine outperformed expectations in 2014, accounting for 25% of our annual production at a cash cost of CAN$910 (US$824) per ounce of gold sold. Actual mining was completed by the contractor at the end of January 2015, and we will process the stockpiled ore from this asset through 2015. With mining operations now finished at Monique, our results in 2015 will continue to benefit from the expected positive free cash flow from our Beaufor Mine during the year.

While 2014 was a year of preparation and transition, 2015 will be one of action and repositioning. To this end, I am very enthusiastic about the transformational development plans we announced for Island Gold earlier this year. The proceeds from our recently completed financing will enable us to leverage our strong cash position and gives us the flexibility to execute our plans that will reposition Island Gold, thereby unlocking its significant value. To this end, we have set out a demanding work schedule for 2015, one in which production, exploration, and accelerated development functions will be working in parallel. We are holding ourselves accountable to our shareholders, employees and our other stakeholders to not only execute our accelerated work plans on schedule, and to do so while maintaining Richmont’s long history of prudent financial management.

MESSAGE FROM THE PRESIDENT AND CHIEF EXECUTIVE
OFFICER

On a personal note, I am very pleased to have been given the opportunity to take the helm of Richmont at such an important inflection point in the Corporation’s long history. Richmont today has the strongest organic growth profile in its history, at the heart of which is the potential for our Island Gold Mine to deliver production growth from a mining-friendly and safe jurisdiction for many years to come. To further unlock this value we have embarked on what will be a transformational year for the Corporation, during which I look forward to working closely with our dedicated team as we continue to seek out and create long-term value for our shareholders.

Best regards,

/s/ Renaud Adams
Renaud Adams
President and Chief Executive Officer

February 18, 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

This MD&A is intended to help the reader understand Richmont Mines Inc. (“Richmont Mines”, “Richmont” or “the Corporation”), our strategy, our operations, our financial performance and the business environment in which we operate. The financial information presented herein is established in accordance with International Financial Reporting Standards (“IFRS”), except otherwise noted, which are the same as those used in the presentation of the financial statements for the year ended December 31, 2014. The currency used in this discussion is the Canadian dollar, except where otherwise stated. This report supplements and complements our audited consolidated financial statements and the accompanying notes for the year ended December 31, 2014. The data on production are presented in metric units, with the exception of troy ounces, the most widely used method in Canada. More information on Richmont Mines can be obtained on the SEDAR website (www.sedar.com), and the Corporation’s website (www.richmont-mines.com). In addition to historical information, this management’s discussion and analysis contains forward-looking information. Please see “Disclosure regarding forward-looking statements” on page 50.

THE CORPORATION’S BUSINESS ACTIVITIES AND STRATEGY

Our Business: Richmont Mines was founded in Quebec in the early 1980’s. Since then, the Corporation has operated 6 underground gold mines and 1 open-pit gold mine in Canada, and has produced over 1,500,000 ounces of gold from these operations. Richmont currently operates three gold mines (the Beaufor and Monique mines in Quebec and the Island Gold Mine in Ontario), and is actively developing the higher-grade deep extension of its Island Gold Mine operations.

Vision and Strategy: Richmont has embarked on important, game-changing development plans to unlock significant value at its cornerstone Island Gold Mine. The accelerated development plans are driven by parallel objectives of expediting access to the high quality resource extension, de-risking and upgrading the existing inferred resource base via drilling, and expanding the mine’s resource base both laterally and at depth. In doing so, Richmont’s vision is to extend mine life and accelerate potential production expansion and free cash flow visibility of Island Gold, while providing shareholders with the strongest organic growth profile in the Corporation’s history.

Experienced Management Team: With over 30 years of experience in gold exploration, development and mining, Richmont is uniquely well positioned within the Canadian mining space. Spearheading these initiatives is the Corporation’s management team, which has earned a reputation for expertise in operating underground gold mines. On an individual basis, most of our executive team has years of experience in the gold industry, either with Richmont or other larger gold producers.

2014 FINANCIAL AND OPERATIONAL HIGHLIGHTS

• 2014 revenues of $132.2 million from the sale of 94,503 gold ounces at an average price of CAN$1,396 (US$1,264) per ounce. Annual gold sales were the second highest in the Corporation’s history, and were 49% above gold sales of 63,443 ounces at an average price of CAN$1,419 (US$1,378) per ounce in 2013, which generated annual revenues of $90.2 million;

• Net earnings from continuing operations of $8.2 million or $0.18 per share, in 2014, compared to a net loss from continuing operations of ($33.2) million or ($0.84) per share in 2013 which included a non-cash write-down of the W
  Zone Mine assets following a reduction of its reserve base, a write-down of deferred income and mining tax assets, and a write-off of financing costs following the termination of a debt-financing agreement (please refer to Table 2);

• 2014 operating cash flow of $27.3 million, or $0.60 per share, were a notable 689% improvement over operating cash flow of $3.5 million, or $0.09 per share in 2013; Strong 2014 net free cash flow of $4.2 million, or $0.09 per share, compared to 2013 net free cash flow of ($38.4) or ($0.97) per share (please refer to Table 2);

• Transformational development plans at Island Gold announced for 2015 to position the mine for future growth by unlocking the value of the resource extension at depth: $27.6 million of accelerated project and exploration costs planned in addition to forecasted sustaining capital expenditures of $20.7 million;

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

• Company-wide Proven and Probable Mineral Reserves at December 31, 2014 of 217,950 ounces of gold grading 6.43 g/t, versus 218,150 ounces of gold grading 4.98 g/t at the end of 2013; Measured and Indicated Resources of 1,894,600 ounces of gold grading 3.40 g/t, versus 1,907,550 ounces of gold grading 3.42 g/t at year-end 2013;

• Balance sheet: cash balance at December 31, 2014 of $35.3 million, working capital of $34.8 million, and minimal long-term debt of $5.7 million; Cash balance of $67.5 million as of February 11, 2015, following closing of financing;

• Island Gold Mine increases Proven and Probable Mineral Reserves 28% net of 2014 mining depletion; New step- out exploration drill hole at depth reaffirms significant potential for expansion of the deposit at depth and along strike;

• 2015 production forecast of 78,000 to 88,000 ounces of gold at a cash cost of CAN$935 – $1,035 (US$850 – $940).

Review of Operations: In 2014 Richmont produced gold primarily from the Island Gold Mine in Ontario and the Beaufor and Monique mines in Quebec. Gold sales from these operations were 94,503 ounces in 2014, versus 63,443 ounces in 2013, with the annual difference reflecting a full year of production from the Monique Mine versus only three months in 2013, and higher gold sales from the Island Gold and Beaufor mines that was driven primarily by improved grades at both operations. The Island Gold Mine generated gold sales of 42,078 ounces in 2014, in line with forecasts and 20% above the 35,113 ounces of gold sold in 2013, predominantly due to the 25% improvement in mined grade to 5.83 g/t from 4.65 g/t in 2013. As of December 31, 2014, the Island Gold Mine had Proven and Probable reserves of 183,750 ounces of gold, more than replacing its 2014 annual production. The Beaufor Mine, in commercial production since 1996, generated gold sales of 24,006 ounces in 2014, a 4% improvement over 2013 gold sales of 23,028 ounces, and in line with its targeted production range of 20,000 to 25,000 ounces. The annual improvement was driven by a stronger recovered grade of 6.84 g/t in 2014, versus 5.88 g/t in 2013, stemming from the implementation of a more selective mining focus. The Beaufor Mine Proven and Probable reserves as of December 31, 2014 were 32,750 ounces of gold, compared to 43,950 ounces of gold at the end of 2013.

Revenue: Total revenues for 2014 were $132.2 million, a 47% increase over revenues of $90.2 million in 2013. The year-over-year increase was attributable to a 49% increase in the number of gold ounces sold, which mitigated a slightly lower average realized gold sales price in Canadian dollars. More precisely, 94,503 ounces of gold were sold in 2014 at an average price of CAN$1,396 (US$1,264) per ounce, versus gold sales of 63,443 ounces in 2013 at an average price of CAN$1,419 (US$1,378) per ounce.

Cost of Sales: Cost of sales increased 30% year-over-year in 2014 to $111.9 million, due to a 49% increase in processed tonnage levels largely attributable to a full year of commercial production at the Monique Mine in 2014 versus three months of production in 2013, and a higher cost per tonne at the Island Gold Mine stemming from increased development work, and rental costs of crushing equipment while the primary jaw crusher was being replaced at the mill. The average cash cost of production decreased 15% to CAN$956 (US$866) per ounce in 2014, from CAN$1,128 (US$1,095) per ounce in 2013, primarily owing to improvements in recovered grade at all three operating mines, and resulting higher gold sales.

Earnings: The Corporation generated net earnings of $8.2 million, or $0.18 per share for the fiscal year 2014, a significant improvement of over $41 million compared to the 2013 net loss from continuing operations of ($33.2) million, or ($0.84) per share, which included charges totaling $22.1 million, or $0.56 per share, stemming from a non-cash write-down of the W Zone Mine assets, a write-off of deferred income and mining tax assets, and a write-off of financing costs following the termination of a debt-financing agreement. Refer to Table 1 and Table 2 for details. The annual variance in results also reflects the 49% increase in the number of gold ounces sold, and a 15% decrease in the average cash cost per ounce stemming from improved mined grades at all three operating mines, the effects of which were only partially mitigated by the slight 2% decrease in the average sales price per ounce in Canadian dollar terms.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

TABLE 1: NET EARNINGS (LOSS) AND NET EARNINGS (LOSS) PER SHARE

NON-GAAP FINANCIAL PERFORMANCE MEASURES

Adjusted net earnings (loss), adjusted net earnings (loss) per share, cash cost per ounce, average cash cost per ounce, operating cash flow per share, net free cash flow, net free cash flow per share and all-in sustaining costs are non-Generally Accepted Accounting Principles (GAAP) performance measures, and may not be comparable to similar measures presented by other companies. The Corporation believes that, in addition to conventional measures prepared in accordance with GAAP, the Corporation and certain investors use this information to evaluate the Corporation's performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Adjusted net earnings (loss) and adjusted net earnings (loss) per share are measures that management uses to assess the operating performance of the Corporation without the effects of unusual items because they affect the comparability of the financial results and could potentially distort the evaluation of its business performance. The 2013 adjusted net loss excludes a small loss from the discontinued Francoeur Mine operations, a non-cash write-down on the W Zone following a reduction in its reserve base, a write-off of the financing costs associated with the termination of a debt-financing agreement, and a write-off of deferred income and mining tax assets recorded in 2013. The 2012 adjusted net loss excludes charges from the discontinued operation of the Francoeur Mine. All adjustments are net of taxes.

The net free cash flow and net free cash flow per share are comprised of the Corporation’s operating cash flow after working capital changes, less investments in property, plant and equipment.

All-in sustaining costs is an extension of the existing “cash cost” metrics and incorporates costs related to sustaining production.

The following table is a reconciliation of net earnings (loss) from continuing operations to adjusted net earnings (loss) on a consolidated basis, and operating cash flow to net free cash flow on a consolidated basis.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

TABLE 2: FISCAL YEAR ADJUSTED NET EARNINGS (LOSS) AND NET FREE CASH FLOW (NON-GAAP FINANCIAL PERFORMANCE MEASURES)

2014 CORPORATE AND OPERATIONAL NEWS

Bought Deal Financing Successfully Completed

The Corporation announced in April that it has closed the bought deal financing previously announced on April 3, 2014. The Corporation issued a total of 8.05 million common shares at a price of CAN$1.45 per share, including the entire over-allotment option of 1.05 million common shares, for aggregate gross proceeds of $11.7 million which were used for working capital and general capital purposes. Please refer to the April 3, 2014 and April 23, 2014 press releases for full details.

Ownership of Island Gold Mine Land Package Consolidated

At the beginning of August, Richmont announced that it had signed a definitive agreement to acquire the outstanding 31% ownership of four patented claims on the Island Gold Mine property, thereby increasing its ownership of these claims to 100% from 69% previously. The 31% ownership held by the third party was acquired by Richmont in return for a 3% Net Smelter Return (“NSR”) royalty that is payable on 100% of the mineral production from the four claims. As part of the agreement Richmont agreed to make advance royalty payments of $1 million upon closing of the transaction, and $1 million on each of January 3, 2015 and January 3, 2016. In the event that there is production from these claims, advance royalty payments will decrease to $0.3 million as of January 3, 2017, and will be paid annually until such time as a total of $5.1 million has been paid in royalties (including advance royalties) to the third party, after which advance royalty payments will cease. All advance royal payments will be credited against any future NSR payments. For full details please refer to the August 5, 2014 press release.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

2014 Management and Board of Director Changes

In late September the Corporation announced that the Board of Directors had promoted Nicole Veilleux to Vice-President, Finance, a role which she previously held for the Corporation, and concurrently announced that Pierre Rougeau, Chief Financial Officer, has resigned from the Corporation to pursue other opportunities. Nicole Veilleux has been with Richmont for over 16 years, in positions of increasing responsibility. She is a Chartered Professional Accountant with over 25 years of experience in finance, including as an Auditor for KPMG LLP, and as a Financial Analyst for Norbord Industries Inc. and for the Fonds régional de solidarité de l’Abitibi-Témiscamingue. Ms. Veilleux joined Richmont initially as Controller, was promoted to Financial Director in March 2006, and fulfilled the role of CFO from this date to November 30, 2012. Please refer to the September 25, 2014 press release for details.

In mid-October Richmont announced that Mr. Renaud Adams had been appointed to the position of President and Chief Executive Officer effective November 15, 2014, taking over the reins from Ms. Elaine Ellingham, whom had been appointed to the position on an interim basis following the departure of the Corporation’s previous President and CEO Mr. Paul Carmel at the beginning of July. Mr. Adams brings 20 years of mining experience to Richmont, during which he has held numerous positions including as President and Chief Operating Officer at Primero Mining Corp., Senior Vice-President, Americas Operations, at IAMGOLD Corporation, and various senior positions with Cambior Inc. and Breakwater Resources Ltd. Mr. Adams holds a Bachelor of Engineering degree in Mining and Mineral Processing from Laval University. Please see the July 2, 2014, October 17, 2014 and November 17, 2014 press releases for additional details.

In mid-October, the Corporation also announced that Dr. James Gill had stepped down from the Corporation’s Board of Directors, effective October 17, 2014.

2015 SUBSEQUENT EVENTS AND NEWS

Favourable Island Gold Mine Step-Out Exploration Results Announced

In early January 2015 Richmont provided results from its deep exploration drilling that was announced in September 2014 to test part of the down plunge projection of the Island Gold deposit to the east. Highlights included results from hole GD-14-01C that had been drilled from surface. This hole intersected 19.87 g/t Au over a true width of 3.93 metres at a depth of -1,200 metres, at approximately -250 metres down plunge from the limits of the currently defined Resources, and reinforced the potential to grow the deposit both laterally and at depth. The second hole that was drilled from surface intersected two small -mineralized zones at a depth of about -900 metres, the best one returned 2.43 g/t of gold over a true width of 1.5 metres. Exploration drilling in this area will continue from underground.

Richmont also announced a significant exploration program for Island Gold Mine in 2015, to test the eastern extension of the deposit at depths and targeted areas closer to surface, with the objective of increasing the number of ounces per vertical metre down to a depth of -1,000 metres, which would favourably impact development cost per ounce.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Bought Deal Financing Completed

The Corporation announced in mid-January 2015 that it had entered into an agreement with Macquarie Capital Markets Canada Ltd. as lead underwriter, on behalf of a syndicate of underwriters, for the issuance of 7.5 million common shares of the Corporation, on a bought-deal basis, at a price of CAN$4.00 per share for gross proceeds of CAN$30 million. The underwriters were also granted an over-allotment option to purchase up to an additional 1.125 million common shares. The following day, Richmont announced that it had agreed to increase the size of its previously announced bought deal offering by 1.0 million shares. Richmont plans to apply the entire net proceeds of the financing toward accelerating the transformational development of the higher-grade Resource extension at its Island Gold Mine in Ontario currently underway. On February 11, 2015 the Corporation announced that it had closed the previously announced bought deal financing, subsequent to which a total of 9.625 million shares were issued, including the entire over-allotment option, at a price of CAN$4.00, generating gross proceeds of CAN$38.5 million. The syndicate of underwriters also included CIBC World Markets Inc., National Bank Financial Inc., BMO Capital Markets, TD Securities Inc., and PI Financial Corp. Richmont received strategic advisory services from Red Cloud Mining Capital Inc. As of February 11, 2015, the Corporation had 57.9 million shares outstanding, and a cash balance of $67.5 million.

Please refer to the January 20, 2015, January 21, 2015 and February 11, 2015 press releases for additional information.

2015 Corporate Guidance and Island Gold Mine Transformational Development Plans Announced

At the end of September 2014, the Corporation announced that Manroc had been hired to take over ramp development work in order to accelerate access to the deeper extension of the mine. This contracted development included extending the ramp to a depth of -660 metres by the end of 2014, and to a depth of -735 metres by the end of the contract in second half of 2015. Concurrent with ramp development, Manroc was contracted to complete a drift on the -620 metre level of the mine to facilitate exploration/definition drilling. As of the end of 2014, the main ramp had achieved a vertical depth of -660 metres, as planned, and approximately 150 metres of the lateral drift on the -620 metre level was completed, with one drill bay already being used for definition drilling purposes.

In mid-January the Corporation provided 2015 forecasted production guidance of 78,000 – 88,000 ounces at a cash cost of CAN$935 – CAN$1,035 (US$850 – US$940), as well as development plans for the Resource extension at the Island Gold Mine in Ontario, as detailed in Table 3 below. Specifically, 2015 development plans at Island Gold include extending the main access ramp to a minimum depth of -750 metres and the secondary eastern ramp to a minimum depth of -570 metres, and completing the in progress 600 metre long exploration/definition drift to the east on the -620 metre level of the mine. Additional plans include 61,000 metres of exploration drilling to test the potential to extend the Resource to the east, as well as in some areas slightly to the west and closer to surface, 59,000 metres of definition and delineation drilling to upgrade the Inferred Resources between 500 and 1,000 metres of depth in preparation for mining in 2016, and mining and milling studies to evaluate mining and milling requirements under various possible growth scenarios.

Two priorities are driving the Island Gold accelerated 2015 plans, namely to expedite access to the deeper high quality resource base, and to increase the reserve and resource base of the asset. In doing so, the Corporation’s goal is to extend the assets’ mine life, while also accelerating the potential to expand production and increase the amount of free cash flow generated by the mine. Please refer to the January 15, 2015 press release for full details.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

TABLE 3: 2015 PRODUCTION, DEVELOPMENT PLANS AND CAPEX GUIDANCE¹

The Corporation will invest more modestly in its Quebec operations during 2015. Specifically, approximately 11,800 metres of definition drilling and an additional 18,200 metres of exploration drilling planned for the Beaufor Mine property during the year, and some development work required to access the lower Q Zone at the mine will also be advanced. Mining by the contractor was completed at the open-pit Monique Mine at the end of January 2015, and the higher grade material will be given milling priority during the first quarter of the year, after which the lower grade stockpile will be transported and milled. Approximately 35% of the Monique 2015 cash costs (or 10% of total Quebec cash costs) will be non-cash costs (ore stockpile inventory), as they were incurred and paid for in 2014. Consequently, the Corporation expects both Quebec operations to be free cash flow positive in 2015.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

PRINCIPAL FINANCIAL DATA¹

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

THE GOLD MARKET

The gold market continued to be turbulent in 2014, with the price per ounce varying from the highest London PM fix close of US$1,385 on March 14, 2014, to the annual low of US$1,142 on November 5, 2014. The average annual price of US$1,266 was US$145 or 10% below the 2013 average price of US$1,411, and US$403 or 24% below the 2012 average price of US$1,669, but was nonetheless above the 2013 lowest monthly average of US$1,225 that occurred in December.

Average Annual Gold Price (London PM Fix)

The main factors that may continue to have influence on the future price of gold include:

• Possible strengthening in the US dollar and the US tapering of its monetary stimulus;

• Continued gold ETF liquidation;

• Weak global inflationary pressures;

• Increased demand levels from China, and easing of import duties in India;

• Uncertainty around governmental fiscal issues in North America and Europe;

• Ongoing geopolitical instability.

EXCHANGE RATES

The U.S. dollar strengthened compared to the Canadian dollar throughout most of 2014 as the U.S. economy continued to show signs of improvement, and its currency reacted in kind. The U.S. dollar started 2014 near its annual low of CAN$1.0639 on January 3, 2014. After trading at an average of CAN$1.0948 in January 2014, it then followed a generally upward trend to reach an annual high of CAN$1.1656 on December 15, 2014. On an annualised basis, the value of the U.S. dollar versus the Canadian dollar increased year-over-year to an average of CAN$1.1045 in 2014, from an average of CAN$1.0299 in 2013, and an average of CAN$0.9996 in 2012.

The U.S. dollar rallied against the Canadian dollar throughout most of 2013 as the effects of an improving U.S. economy positively impacted its currency. The U.S. dollar started the year essentially at par with the Canadian dollar, closing at CAN$0.9973 at the end of January. After reaching its annual low of CAN$0.9845 on January 11, 2013, it then followed a generally upward trend to reach an annual high of CAN$1.0737 on December 20, 2013. On an annualised basis, the value of the U.S. dollar versus the Canadian dollar increased slightly year-over-year to an average of CAN$1.0299 in 2013, from an average of CAN$0.9996 in 2012, and an average of CAN$0.9891 in 2011.

The Corporation presents per ounce data in US dollars. On a quarterly basis, the exchange rate is adjusted to reflect the actual quarterly and year-to-date rate through the end of the quarter. Therefore, quarterly and year-to-date rates may differ.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

REVENUES

Total annual revenues increased 47% in 2014 to $132.2 million from $90.2 million in 2013, due to the 49% increase in the number of gold ounces sold minimally offset by a 2% decrease in the average gold sales price realized in Canadian dollars. For the 2014 fiscal year, a total of 94,503 ounces of gold were sold at an average price of CAN$1,396 (US$1,264) per ounce. This compared to gold sales of 63,443 ounces at an average price of CAN$1,419 (US$1,378) per ounce in 2013, and gold sales of 60,741 in 2012 at an average price of CAN$1,665 (US$1,666) per ounce. The Island Gold Mine sold 42,078 ounces of gold in 2014 at an average price of CAN$1,398 (US$1,266), compared with 35,113 ounces of gold in 2013 at an average price of CAN$1,434 (US$1,392), and 41,686 ounces of gold in 2012 at an average price of CAN$1,665 (US$1,666). The Beaufor Mine sold 24,006 ounces of gold at an average price of CAN$1,399 (US$1,267) in 2014, versus 23,028 ounces of gold at an average price of CAN$1,417(US$1,376) per ounce in 2013, and 19,055 ounces of gold at an average price of CAN$1,665 (US$1,666) per ounce in 2012. The Monique Mine sold 23,490 ounces of gold in 2014 at an average price of CAN$1,387 (US$1,256), compared to 2,976 ounces of gold at an average price of CAN$1,328 (US$1,265) in its first three months of commercial production during the last quarter of 2013. The W Zone Mine contributed gold sales of 4,929 ounces at an average price of CAN$1,405 (US$1,272) in 2014, and gold sales of 2,326 ounces at an average price of CAN$1,328 (US$1,265) in 2013. Total annual revenues of $90.2 million in 2013 were below the $101.7 million generated in 2012, largely attributable to a 15% decrease in the average gold sales price realized in Canadian dollars.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

COST OF SALES¹

2014 cost of sales increased 30% over prior year levels to $111.9 million, with 87% of this increase attributable to the higher costs associated with a full year of commercial operations at the Monique Mine in 2014, versus only three months in 2013. Cost of sales levels at the Island Gold Mine increased 9% year-over-year, largely due to higher cost per tonne attributable to the previously announced expense associated with the scheduled installation of a new cone crusher at the end of the second quarter, and the rental of a temporary primary jaw crusher and conveyor during the fourth quarter while new crushing equipment was being installed. The Beaufor Mine contributed $25.0 million toward consolidated cost of sales, below prior year levels due to lower tonnage. Operating costs at the Corporation’s Camflo Mill increased slightly as capacity utilisation was maximized with the contribution of a full year of Monique ore, and also increased marginally at the W Zone as remaining areas were mined prior to the cessation of operations at the end of the second quarter. The average cash cost of production decreased by a notably 15% in Canadian dollars to CAN$956 (US$866) in 2014 from CAN$1,128 (US$1,095) in 2013, primarily driven by improved grades at all three of the Corporation’s operating mines, and the resulting higher gold sales.

2013 cost of sales increased 7% over 2012 levels at the Island Gold Mine to $47.5 million, reflecting a higher cost per tonne, primarily in milling, that were the result of mechanical issues at the mill during the second quarter of the year that necessitated the short-term rental of equipment from an outside supplier. Cost of sales at the Beaufor Mine decreased a comparable 6% in 2013 to $26.8 million from $28.6 million in 2012, as a 12% decrease in cost per tonne offset the 7% increase in tonnage. The Corporation’s Monique and W Zone mines, which both began commercial production on October 1, 2013, contributed $4.7 million and $6.0 million, respectively, to the 2013 consolidated cost of sales of $85.8 million, with costs levels at the W Zone Mine reflecting materially higher depreciation expense following the reduction of its reserve base. The average cash cost of production increased 8% in Canadian dollars in 2013 to CAN$1,128 (US$1,095) from CAN$1,044 (US$1,044) in 2012, as higher costs at the Island Gold Mine stemming from lower grades and the high costs at the Monique and W Zone mines in their initial ramp up stage, were only partially offset by lower year-over-year costs at the Beaufor Mine stemming from the improved grade and lower cost per tonne.

The amount of royalties paid out in 2014 increase to $2.3 million from $1.9 million the prior year, driven by higher royalty levels at all three of the Corporation’s operating mines as a result of the higher gold ounce production levels. 2013 royalty payments decreased to $1.9 million from $2.3 million in 2012, reflecting lower royalty levels at the Island Gold Mine as a result of the 16% year-over-year decrease in gold ounces sold and lower gold prices. This was only partially mitigated by slightly higher royalties at the Beaufor Mine as a result of increased gold sales in 2013, and royalties at both the Monique and W Zone mines following their transition into commercial production.

The Corporation pays a 3% net smelter return (NSR) royalty on the greater part of the gold production at the Island Gold Mine, royalties of $30 per ounce on 50% of the ounces produced from the Beaufor Mine and the W Zone Mine, and a 0.38% net smelter return royalty (NSR) on commercial gold production from the Monique Mine (please see Note 23 of the “Notes to Consolidated Financial Statements” for additional details).

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

INVESTMENTS IN PROPERTY, PLANT AND EQUIPMENT

Richmont invested $23.1 million in its assets in 2014, down from $41.9 million in 2013 and $37.9 million in 2012. The decrease largely reflects the lower development costs associated with the Monique Mine following its commencement of commercial production in the fourth quarter of 2013, lower investments in the W Zone following the decision to cease operations in the second quarter of 2014, and decreased year-over-year investments at the Island Gold Mine. The Corporation is forecasting significantly higher capital expenditures of $56.3 million in 2015. A total of $48.3 million of this amount is being invested in development efforts at Island Gold, that will to accelerate access to the deeper resource base thereby repositioning the mine as a longer-life, higher production and superior free cash flow operation.

Total investments in 2013 were $41.9 million, up from $37.9 million the prior year, with the increase reflecting focused development efforts at Island Gold, most notably the completion of an additional 848 linear meters of the underground access ramp, in addition to development costs associated with beginning commercial production at the Monique Mine at the beginning of October. Offsetting the higher investment levels at these two operations were lower development costs at the W Zone Mine, and the termination of development efforts at the Francoeur Mine operations following its closure at the end of 2012. An additional $1.0 million was invested at the Camflo Mill and other corporate installations in 2013, down from $2.9 million in 2012.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

SUMMARY OF OPERATIONS

Island Gold Mine

For the 12 months ended December 31, 2014, 233,202 tonnes of ore from the Island Gold Mine were processed at an average grade of 5.83 g/t, and 42,078 ounces of gold were sold at an average price of CAN$1,398 (US$1,266) per ounce. This compared to 2013, during which 244,631 tonnes of ore were processed at an average grade of 4.65 g/t, and 35,113 ounces of gold were sold at an average price of CAN$1,434 (US$1,392) per ounce. The higher year-over-year gold sales reflect a 25% improvement in grade, partially offset by a slight 5% decrease in processed tonnage, primarily attributable to lower levels of development completed in the first half of the year. Annual cash costs at Island Gold decreased to CAN$982 (US$889) from CAN$1,124 (US$1,092) in 2013, driven by the higher recovered grade. This was partially offset by a higher mining cost per tonne, which stemmed from a greater amount of development work in the fourth quarter and lower amount of processed tonnage, as well as the short-term rental of crushing equipment from an outside supplier.

For the 12 months ended December 31, 2013, 244,631 tonnes of ore were processed at the Island Gold Mine at an average grade of 4.65 g/t, and 35,113 ounces of gold were sold at an average price of CAN$1,434 (US$1,392) per ounce. This compared to 2012, during which 246,743 tonnes of ore were processed at an average grade of 5.45 g/t, and 41,686 ounces of gold were sold at an average price of CAN$1,665 (US$1,666) per ounce. The year-over-year change reflected a 15% decline in recovered grades and a slight decrease in tonnage. Cash costs at Island Gold increased to CAN$1,124 (US$1,092) in 2013 from CAN$884 (US$884) in 2012, due primarily to a lower recovered grade and higher milling cost.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Richmont is targeting 2015 annual production of 45,000 to 50,000 ounces of gold from the Island Gold Mine.

Proven and Probable Mineral Reserves at Island Gold Mine were increased by 28%, net of 2014 mining depletion. Proven and Probable Reserve levels at the Island Gold Mine increased to 183,750 ounces of gold at a grade of 6.39 g/t at December 31, 2014, of which 51%, or 93,750 ounces, are located in the zones below –400 metres. This compares from 143,500 ounces of gold at a grade of 6.09 g/t at December 31, 2013. The annual variation reflects gold sales during 2014, offset by additional Reserves obtained following 34,599 metres of definition and delineation drilling completed during the year.

Estimated Measured and Indicated Resources totaled 219,050 ounces of gold at a grade of 9.29 g/t at December 31, 2014, which included 154,200 ounces of gold at a grade of 10.95 g/t within the deeper zones below -400 metres of the mine. Measured and Indicated Resources at December 31, 2013 estimated 233,350 ounces of gold at a grade of 9.81 g/t, consisting of 168,900 ounces of gold within the deeper zones and 64,450 ounces of gold within the Island Gold Mine. While drilling completed during 2014 successfully reclassified some Resources as Reserves, the Corporation’s primary focus was on establishing and initiating the development plans of the deeper Resource extension.

Estimated Inferred Resources were 1,002,750 ounces of gold at the end of 2014, with the extension at depth encompassing 919,950 of these ounces of gold. This compares to Inferred Resources of 1,037,350 of gold at the end of 2013, which included 954,600 ounces in the deeper extension of the mine.

Gold grades of the Mineral Resources are slightly lower compared to 2013. This reflects some changes made in the kriging parameters used in the deeper extension estimation as well as a decreased of the gold assay capping levels for some of the lower parallel zones. Capping was reduced from 95 to 70 g/t Au for the B Zone and from 40 to 31 g/t Au for the D, D1 and E1E zones following a new statistical review.

The Corporation hired RPA, an independent consultant, to conduct a review of the estimated Mineral Resources for the zones below a vertical depth of -400 metres at the Island Gold Mine. RPA concluded that the estimate is reasonable, has been adequately prepared using standard industry practices, and conforms to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM definitions) as incorporated into National Instrument 43-101 (NI 43-101).

A portion of the C Zone Resource, located between the -535 metres and -675 metres levels, has been successfully transferred into Reserves following definition drilling and development that were completed in 2014. A study comparing the Resources as of December 31, 2013 and the Resources/Reserves and mined material as of December 31, 2014 for this specific area was completed, with the results showing good reconciliation. Specifically, at the end of 2013, 286,000 tonnes at a grade of 8.3 g/t were estimated for this area. This compared very favourably to the 294,000 tonnes at a grade of 8.67 g/t at the end of 2014, with all material (including mined material) reported as a Resource with no recovery or dilution take into account. This result is for a small portion of the C Zone and, consequently, should not be extrapolated to the entire C Zone area.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Beaufor Mine

For the 12 months ended December 31, 2014, 111,474 tonnes of Beaufor Mine ore were processed at an average grade of 6.84 g/t, and 24,006 ounces of gold were sold at an average price of CAN$1,399 (US$1,267). This represented a modest 4% increase in production that was attributable to the improved mines grade during 2014 resulting from the Corporation’s implementation of a more selective mining approach. Cash costs during the period decreased 13% to CAN$946 (US$856) from the prior year levels of CAN$1,082 (CAN$1,051), which was primarily a function of the improved grade.

The 2012 processed tonnage levels from the Beaufor Mine totaled 116,675 at an average grade of 5.19 g/t, which translated into gold sales of 19,055 ounces at an average price of CAN$1,665 (US$1,666). Cash costs of CAN$1,393 (US$1,394) during the period reflected lower levels of tonnage and a low grade. The annual variance from 2012 to 2013 was attributable to the 7% increase in tonnage and 13% improvement in mined grade.

The Corporation is targeting annual production from the Quebec assets, which includes the Beaufor Mine and the Monique Mine operations, of approximately 33,000 to 37,000 ounces of gold for the year.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Proven and Probable Reserves at the Beaufor Mine property, which includes estimated reserves located within the W Zone and 350 Zone, decreased to 32,750 gold ounces at December 31, 2014, from 43,950 gold ounces at December 31, 2013, as 12,801 metres of definition drilling completed on the Beaufor Mine property during 2014 were insufficient to replace the Reserves that were mined during the year. More than half of the Proven and Probable Reserves are contained in two zones, namely the M-M1 Zone with 48,000 tonnes at a grade of 7.32 g/t for 11,400 ounces, and the 350 Zone with 28,000 tonnes at a grade of 7.34 g/t for 6,650 ounces.

Measured and Indicated Resources at the Beaufor Mine property, including those of the W Zone and 350 Zone, were essentially unchanged at 189,850 ounces of gold at the end of 2014 versus 188,500 ounces of gold at the end of 2013. Estimated Inferred Resources at the end of 2014 decreased to 155,600 ounces of gold versus 189,200 ounces at December 31, 2013, mainly as a result of a change in the estimation parameters for the Q Zone, which contains Inferred Resources of 240,000 tonnes at a grade of 6.96 g/t for 53,700 ounces.

Monique Mine

A total of 279,884 tonnes of ore were processed at an average grade of 2.72 g/t from the Monique Mine during the 12 months of 2014. This compared to processed tonnage of 51,541 tonnes at an average grade of 1.90 g/t in 2013, which included only 3 months of commercial production. Annual gold sales from this mine totaled 23,490 ounces at an average price of CAN$1,387 (US$1,256) in 2014, versus gold sales of 2,976 ounces at an average price of CAN$1,328 (US$1,265) per ounce in the three months of commercial production in 2013. Annual cash costs of CAN$910 (US$824) reflect the distribution of costs over a full year of production in 2014, versus the higher cash costs of CAN$1,290 (US$1,230) during the first three months of commercial operation in 2013 as production was being ramped up.

At December 31, 2014, the Monique open-pit has Probable Reserves of 1,450 ounces at a grade of 3.16 g/t, and additional underground Indicated Resources of 16,850 ounces at a grade of 4.88 g/t. This compares to Proven and Probable open-pit Reserves of 30,700 gold ounces at December 31, 2013, and additional Indicated underground Resources of 16,850 gold ounces at 4.88 g/t located directly below the open-pit. The decrease reflects annual gold sales of 23,490 ounces in 2014.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Mining activities at the Monique open-pit were completed in the last week of January 2015. Along with the ore that was generated in the first month of 2015, the on-site stockpile of over 158,000 tonnes of ore at 1.81 g/t as at the end of December 2014 will continue to be batch processed at the Corporation’s Camflo Mill through to the third quarter of 2015.

W Zone Mine

A total of 37,055 tonnes of ore were processed from the W Zone at an average grade of 4.25 g/t in 2014. Annual gold sales from this operation were 4,929 ounces at an average price of CAN$1,405 (US$1,272) per ounce. This compared to 23,262 tonnes at an average grade of 3.25 g/t, and gold sales of 2,326 ounces at an average price of CAN$1,328 (US$1,265) in the year-ago period. Cash costs at the operation were CAN$992 (US$899) in 2014, versus CAN$1,441 (US$1,373) in 2013, with the decrease reflecting the discontinuation of development costs when operations were closed in the second quarter of 2014.

Camflo Mill

The Camflo Mill processed a total of 435,371 tonnes in 2014, up 37% from the 317,038 tonnes processed in 2013. This increase was attributable to the contribution of a full year of commercial production from the Monique Mine in 2014, versus only three months in the prior year. Processing levels in 2013 were notably higher than in 2012 owing to the addition of bulk sample material and commercial and pre-production ore from the Monique and W Zone operations during the year.

The Corporation anticipates that the Camflo Mill will continue to operate at capacity through the third quarter of 2015. Thereafter, the utilization rate is expected to decrease to approximately 30% due to the fact that only ore from the Beaufor Mine will continue to be processed once the Monique stockpile has been milled. The Corporation will pursue and evaluate opportunities to fill the future unused capacity at the mill.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

EXPLORATION COSTS

Island Gold Mine

The Corporation reduced its exploration investments at Island Gold Mine in 2014, as focus was shifted toward laying the groundwork for future expansion plans, and subsequent initiation of a more accelerated development plan in the fourth quarter of 2014. More specifically, exploration costs totaled $0.8 million at the Island Gold Mine in 2014, down from $4.5 million in 2013 and $11.0 million in 2012. The exploration cost in 2013 decreased from the 2012 level, reflecting that the cost of 62,210 metres of exploration drilling completed in 2013 were capitalized, whereas the costs associated with the 69,084 metre exploration drill program in 2012 were not. The 2012 exploration drilling permitted the Corporation to evaluate the future potential below the mine which led to the identification of the first Inferred Resource estimate for the Deep C Zone of 1.5 million tonnes grading 10.73 g/t Au for 508,000 ounces. The exploration drilling completed in 2013 enabled Richmont to expand and upgrade this gold resource to 456,000 tonnes grading 11.52 g/t for 168,900 ounces of Indicated Resources, and 3.2 million tonnes grading 9.29 g/t for 954,600 ounces of Inferred Resources.

Beaufor Mine

A total of $1.7 million was spent on exploration at the Beaufor Mine in 2014, compared to $1.9 million in 2013 and $1.4 million in 2012. The amounts spent reflect the 25,215 metres of underground and surface exploration drilling that were completed on the property as the Corporation continues to focus on expanding the Reserve and Resource base at the mine.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Wasamac Gold Property

Exploration expenses at the Wasamac Gold Property totaled $0.2 million in 2014, down considerably from the $1.1 million spent in 2013, and the $9.5 million spent on the property and the adjacent Globex optioned land package in 2012. The annual lower expense levels in both 2014 and 2013 reflect that no exploration drilling was done on the property, compared to the 50,000 metres of exploration drilling completed in 2012. The minimal costs incurred during 2014 relate to the ongoing site maintenance and environmental follow-up that was completed on the property. While no drilling was undertaken on this asset during 2013, scheduled technical work and permitting efforts were continued during the year. The Wasamac Gold Property has 15.3 million tonnes of Measured and Indicated Resources grading 2.86 g/t for 1.4 million gold ounces, and 18.8 million tonnes of Inferred Resources grading 2.66 g/t for 1.6 million ounces of gold.

Project Evaluation and Other Properties

Richmont spent $0.5 million on project evaluation and at other properties during 2014, down from $0.8 million in 2013 and $1.0 million in 2012, as the focus of internal resource was directed toward Island Gold Mine.

ADMINISTRATION EXPENSES

Administration expenses totaled $7.6 million in 2014 versus $7.5 million in 2013. However, excluding severance payments in both periods, administration expenses in 2014 were 12% below the 2013 levels. The total cost in 2014 reflects lower levels of salaries and related benefits stemming from the decrease in the number of administrative employees, the effects of which were offset by higher severance compensation following the departure of the President and CEO in early July, and departure of the CFO in September.

Administration expenses in 2013 of $7.5 million were below the comparable $10.3 million in 2012, reflecting lower non-cash expenses for share-based compensation, as the value of 1,639,000 options granted during the year was impacted by the lower share price, as well as lower severance compensation following the payment of $2.0 million in severance compensation to the Corporation’s ex-President and CEO in 2012.

The weighted-average fair value calculated according to the Black-Scholes model of evaluation at the date on which each option was granted was $1.45 in 2014 compared with $0.58 in 2013 and $2.73 in 2012.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

MINING AND INCOME TAXES EXPENSE

For the fiscal year 2014, mining and income taxes totaled $0.5 million. This amount mainly includes $2.3 million of mining and income tax, or 27% of the pre-tax income of $8.7 million, offset by a $1.2 million credit on mining duties from previous years, and the $0.3 million reversal of a 2010 charge that had been booked (for part XII-6 of the tax return of a subsidiary), but will no longer have to be paid by the Corporation.

For the fiscal year 2013, mining and income taxes totalled $8.0 million, including a write-off of $7.5 million of deferred income and mining tax assets. In the charge there is an amount of $0.5 million for current tax expense and a same amount booked against exploration expense.

The 2012 current tax expense totalled $4.6 million and includes Ontario mining taxes of $1.5 million, an adjustment to previous year taxes of $1.4 million and a recorded tax charge of $1.8 million, the latter of which enabled the Corporation to benefit from an exploration credit of the same amount. The recovery of future taxes is due to a $2.3 million reduction in liabilities for future mining taxes and a reduction of $1.9 million for income taxes.

SENSITIVITY ANALYSIS

The Corporation’s financial results are sensitive to movements in the price of gold, and the US$/CAN$ exchange rate, as the Corporation mostly generates revenue in U.S. dollars and generally incurs expenses in Canadian dollars. The following table describes, for demonstration purposes only, the financial impact that changes in certain variables would generally have had on the Corporation’s 2014 net earnings, all other variables being constant.

Sensitivity Analysis

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

QUARTERLY REVIEW 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

QUARTERLY REVIEW 2013

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

ANNUAL REVIEW, 2010 TO 2014

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

SUMMARY OF RESULTS FOR THE FOURTH QUARTER

Total Revenues for the fourth quarter of 2014 were $29.6 million, a 6% improvement over revenues of $27.8 million generated in the comparable period of 2013. This increase is attributable to strong results from the Quebec assets, with higher gold ounce sales at both the Beaufor and Monique mines, and a 2% increase in the average realized gold price in Canadian dollars. Partially offsetting these were lower gold ounce sales at the Island Gold Mine due to lower processed tonnage levels in the period. This trend will continue as a result of the initiation of accelerated short-term development work in the fourth quarter of 2014. This work is expected to reposition the mine with greater mineable ore inventory in the near-term, and will be further reinforced by the $9.3 million of sustaining capital expenditures planned at Island Gold in 2015. Tonnage was below 2013 levels as a result of a lower number of available mining faces at Island Gold Mine during the quarter following lower levels of development in the first half of the year. In the fourth quarter of 2014, 21,666 ounces of gold were sold at an average price of CAN$1,361 (US$1,198), versus gold sales of 20,918 ounces at an average price of CAN$1,328 (US$1,265) in the fourth quarter of 2013.

Fourth quarter expenses decreased to $28.5 million in 2014, from $56.5 million in the prior year period. The decrease reflects lower cost of sales in the current period that was driven by a 15% decrease in the consolidated average cash cost per ounce of gold sold in the current period, together with a 12% decrease in processed tonnage levels year-over-year. The improvement similarly reflects an impairment loss on the W Zone Mine in the year-ago period following a reduction in its reserve level. The average cash cost per ounce of gold sold totalled CAN$981 (US$864) in the fourth quarter of 2014 versus CAN$1,156 (US$1,102) in the year-ago period, as lower year-over-year costs at the Beaufor and Monique mines offset the higher Island Gold Mine cash cost anticipated following the onset of the Corporation’s accelerated development work at the mine.

Richmont generated net earnings of $1.0 million, or $0.02 per share, in the fourth quarter of 2014, versus a net loss from continuing operations of ($28.7) million, or ($0.72) per share, in the fourth quarter of 2013. The improved results reflect lower cost of sales in the current period driven by improved tonnage and recovered grades at the Quebec assets resulting in lower cash costs per ounce sold. Improved results similarly reflect charges in the 2013 period totalling $22.7 million, or $0.57 per share, that included a non-cash write-down on the W Zone Mine assets, a write-off of deferred income and mining tax assets and a write-off of financing costs following the termination of a debt financing agreement. Fourth quarter 2014 results similarly benefited from a higher average realized gold sales price combined with a 4% increase in the number of gold ounces sold. As reported, Richmont generated a net loss of ($29.1) million, or ($0.73) per share, in the fourth quarter of 2013.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

FOURTH QUARTER NET EARNINGS (LOSS) (NON-GAAP FINANCIAL PERFORMANCE MEASURES)

There were no adjustments to fourth quarter 2014 results. The fourth quarter 2013 adjusted net loss excludes charges, as detailed in the table above. Excluding these charges, Richmont generated an adjusted net loss of ($6.0) million, or ($0.15) per share, in the fourth quarter of 2013.

CASH POSITION

The Corporation’s cash balance was $35.3 million at December 31, 2014, up from the $17.6 million balance at December 31, 2013. Year-end cash levels reflect investments of $23.1 million in property, plant and equipment during the year, which were more than offset by $27.3 million of cash generated from operations and the $10.7 million of net proceeds from a bought deal financing completed in April 2014.

The Corporation closed a bought-deal financing on February 11, 2015, subsequent to which the Corporation’s cash position totalled $67.5 million.

The cash balance of $17.6 million at December 31, 2013 was below the $59.8 million balance at December 31, 2012, reflecting investments of $41.9 million in property, plant and equipment during 2013, partially offset by $3.5 million of cash generated from operations during the 12 month period.

At December 31, 2014, Richmont had working capital of $34.8 million compared with $14.0 million at December 31, 2013. The $20.8 million increase is mainly attributable to a $17.7 million increase in the Corporation’s cash balance, a $4.7 million increase in inventories, a $2.0 million increase in income and mining taxes payable, and a $1.0 million increase in the current portion levels of long term debt related to advance Island Gold Mine royalty payments payable to a third party in January 2015.

At December 31, 2013, Richmont had working capital of $14.0 million compared with $54.3 million at December 31, 2012. The decrease reflects a $42.2 million decrease in cash and cash equivalents, a $2.2 million increase in exploration tax credits receivable and a $1.3 million increase in inventories, and a $2.5 million increase in accounts payables, and a $0.7 million decrease in income and mining taxes payable.

CAPITAL RESOURCES

On April 23, 2014, the Corporation issued a total of 8.05 million common shares on a bought-deal basis through a syndicate of underwriters, at a price of $1.45 per share. This included the entire over-allotment option of 1.05 million shares, and generated aggregate gross proceeds of $11.7 million. An expense of $0.9 million was incurred relating to the issuance of common shares.

In 2014, the Corporation issued 630,120 common shares (30,000 in 2013 and 483,600 in 2012) following the exercise of stock options and received cash proceeds in the amount of $1.1 million ($0.1 million in 2013 and $1.5 million in 2012).

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

During the year ended December 31, 2013, the Corporation established a Senior Secured Credit Facility for up to US$50.0 million. By mutual agreement between the Corporation and the lender, the Facility was terminated on December 20, 2013. According to the terms of the Senior Secured Credit Facility, 812,500 warrants were issued to the lender, each warrant allowing for the acquisition of one common share at a price of $2.45 prior to August 2016. These warrants vested immediately and an amount of $0.4 million was registered in shareholder’s equity in contributed surplus and the counterpart as financing costs.

In September 2012, the Corporation issued, as part of a private placement, 5,972,540 common shares at $4.35 each for a total consideration of $26.0 million. An expense of $1.0 million was incurred relating to the issuance of common shares, creating a non recorded future tax asset of $0.2 million.

The Corporation had 48.3 million shares outstanding as of December 31, 2014.

Richmont Mines’ main investment allocations in 2015 will be at its Island Gold project, and the Corporation expects to fund these investments with existing cash, with cash flows from operations and with funds received from the issuance of common shares.

COMMITMENTS, CONTINGENCIES AND SUBSEQUENT EVENT

The Corporation is subject to pay the following royalties: the Beaufor Mine and the W Zone Mine, $30 per ounce produced on 50% of the production; Island Gold Mine, a 3% net smelter return royalty per ounce produced from the Lochalsh claims and a 2% net smelter return royalty in addition to a 15% net profit interest royalty per ounce produced from the Goudreau claims; and at the Monique Mine, a 0.38% smelter return royalty per ounce produced. Royalty payments could be payable on other properties if such other properties are brought into commercial production.

On August 5, 2014, the Corporation announced that it had signed a definitive agreement to acquire the outstanding 31% ownership of four patented claims on the Island Gold Mine property, thereby increasing its ownership of these claims to 100% from 69% previously. The 31% ownership held by the third party was acquired by the Corporation in return for a 3% net smelter return (NSR) royalty that is payable on 100% of mineral production from the four claims. As part of this agreement, the Corporation made an advance royalty payment of $1.0 million at the closing of the transaction, and will make the following additional future payments: $1.0 million each on January 3, 2015 and January 3, 2016. In the event that there is production from these claims, advance royalty payments will continue, and will decrease to $0.3 million as of January 3, 2017, and will be paid annually until such time as a total of $5.1 million has been paid in royalties (including advance royalties) to the third party, after which advance royalty payments will cease. All advance royal payments will be credited against any future NSR payments.

The Corporation is committed, under an operating lease expiring in December 2017, to pay a total sum of $0.4 million for office space. Minimum rental payments for the next three years amount to $0.14 million annually.

In mid-October 2013, the Corporation announced that it had signed a land and mining rights agreement with Argonaut Gold Inc. (“Argonaut”), owner of the Magino Gold Project that is adjacent to the Corporation’s Island Gold Mine. This Agreement was slightly modified in June 2014. Under the revised terms, Argonaut will receive one claim in its entirety and surface and mining rights down to a depth of 400 metres on six claims. It will also receive surface rights on two claims down to a depth of 100 metres. The Corporation will receive two additional claims for a total of three and mining rights below a depth of 400 metres on three claims. As previously reported, under the terms of the Agreement, the Corporation will receive a net payment of $2.0 million in cash from Argonaut upon completion of the land transactions, which are now expected to take place in 2015.

During the year ended December 31, 2013, the Corporation entered into five financial lease agreements for rolling stock. At the end of these contracts, the Corporation benefits from an option of a lower purchase price. These financial lease agreements have a carrying value of $2.9 million. The net carrying value of the rolling stock under financial leases amounts to $3.3 million.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

In March and in August 2012, the Corporation signed agreements with several employees considered as key personnel. These agreements incorporate a retention payment (“Retention Awards”) provided certain conditions are met by the employee, most notably that the employee continues his or her employment with the Corporation until March and August 2017. These retention payments would be payable in 2017 in either of the Corporation’s common shares or cash, at the discretion of the employee, with the number of common shares to be determined by the current value of the common shares at the time of payment. As at December 31, 2014, the total amount that could be paid as Retention Awards under these agreements is $2.0 million.

In light of a modification to the Quebec Mining Law, the financial guarantee for each of the Corporation’s Quebec mining sites must now cover 100% of the anticipated restoration work costs for each mining site. Consequently, the Corporation increased the letters of credit issued as financial guarantee by $1.0 million in 2014 and must increase the financial guarantees by $1.8 million in 2015 and $1.2 million in 2016.

The Corporation is involved in the following legal proceedings against the Corporation:

Management is of the opinion that the basis of these litigations is unfounded and, consequently, no provision has been accounted for in the financial statements in this respect.

Furthermore, in 2013, the Corporation began legal procedures against its former Monique Mine mining contractor for work that had been poorly executed or not executed at all. As at December 31, 2014, a contract holdback amount of $1.0 million remains unpaid by the Corporation related to this work. In November 2014, the Corporation received a defense and counterclaim from this former contractor for an amount of $15.5 million. Management is of the opinion that the basis of this counterclaim is unfounded and, consequently, no provision has been accounted for in the financial statements in this respect.

On January 21, 2015, a syndicate of underwriters, has agreed to purchase on a bought deal basis 8.5 million common shares of the Corporation at a price of $4.00 per share for gross proceeds of $34.0 million. In addition, the underwriters have been granted an over-allotment option to purchase up to an additional 1.125 million common shares from the Corporation, exercisable in whole or in part at the Offering Price for a period of 30 days from closing of the Offering, for additional gross proceeds of up to approximately $4.5 million. If the Over-Allotment Option is exercised in full, the total gross proceeds to the Corporation will be $38.5 million. Following the deduction of estimated fees, net proceeds are expected to amount to $36.1 million, and the Corporation’s share capital will increase by the same amount. The financing was closed on February 11, 2015 and the full over-allotment option was exercised.

RELATED PARTIES TRANSACTIONS

The former corporate secretary is a partner at a law firm. Until the May 9, 2013, date of his resignation as corporate secretary, the Corporation received professional services from this firm for a total consideration of $0.1 million, including taxes ($0.3 million in 2012).

On February 1, 2012, the Corporation completed a private placement of $10.0 million with the past Vice Chairman of the Corporation’s Board of Directors and two members of his immediate family in the form of debentures convertible into the Corporation’s common shares. The convertible debentures were entirely retired in September 2012.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

OFF-BALANCE-SHEET TRANSACTIONS

In 2014, 2013 and 2012, the Corporation was not involved in any off-balance-sheet transactions.

FINANCIAL INSTRUMENTS

In order to minimize the risks associated with fluctuations in the price of gold and exchange rates, Richmont Mines may, from time to time, use derivative financial instruments and short-term gold hedging contracts. As at December 31, 2014, 2013 and 2012, Richmont Mines had no gold hedging contracts and no currency exchange contracts. In these years, no gain or loss related to derivative financial instruments or to short-term gold hedging contracts was recorded in the financial statements.

The Corporation has classified its cash, guaranteed investment certificate and receivables (except taxes receivable) as loans and receivables, and its payables, accruals and provisions (except salaries and related benefits payable), royalty payments payable, finance lease obligations, contract payment holdbacks and the closure allowance as financial liabilities. All financial instruments are measured at fair value with the exception of loans and receivables, held-to-maturity investments and financial liabilities, which are measured at amortized cost.

Cash, guaranteed investment certificate, receivables and payables, accruals and provisions, are recorded at book value and represent their approximate fair value, as these items will be realized or settled in the short term. The fair value of royalty payments payable, finance lease obligations, contract payment holdbacks and closure allowance was determined by calculating the discounted cash flows using market interest rates for financial instruments with similar characteristics. The fair value of the royalty payments payable, the finance lease obligations, the contract payment holdbacks and the closure allowance approximate the book value.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The preparation of financial statements requires the use of estimates and the formulation of assumptions that have a significant impact on revenue and expenses as well as on the amounts of assets and liabilities. The following factors represent the estimates that management considers the most significant, and for which the actual amounts may differ considerably thereby affecting operating results.

Mineral reserves

The main parameters used to determine the mineral reserves of Beaufor Mine, Monique Mine and Island Gold Mine are the following:

Basis of depletion of mining sites in production

Property, plant and equipment of mining sites in production are depleted according to the units-of-production method to write down the cost to residual value. Management estimates the residual value of property, plant and equipment based on the estimated fair value as of the financial position date. For these assets, the depletion rate is calculated based on the number of ounces of gold sold in proportion to the number of ounces in proven and probable reserves.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Proven and probable reserves are estimates of the quantity of ore that could be economically and legally extracted from a mine. The Corporation estimates its reserves using information compiled by qualified persons who work for the Corporation. This information relates to geological data on the size, depth and shape of the deposit and requires geological assessments to interpret the data. The assessment of proven and probable reserves is based on factors such as the estimated exchange rate, price of metals, capital investments required and production costs stemming from geological assumptions based on the size and grade of the deposit. Changes in proven and probable reserves could have an impact on the net carrying amount of property, plant and equipment, asset retirement obligations, recognition of deferred tax assets and amortization, depreciation and depletion expenses.

Asset retirement obligations

The Corporation assesses its asset retirement obligations annually. Determining these obligations requires significant estimates and assumptions due to the numerous factors that affect the amount ultimately payable. Such factors include estimates of the scope and cost of restoration activities, legislative amendments, known environmental impacts, the effectiveness of reparation and restoration measures and changes in the discount rate. This uncertainty may lead to differences between the actual expense and the allowance. At the date of the statement of financial situation, asset retirement obligations represent management’s best estimate of the charge that will result when the actual obligation is terminated.

Impairment test of property, plant and equipment

Determining if there are any facts and circumstances indicating impairment losses or reversal of impairment losses is a subjective process involving judgment and a number of estimates and interpretations in many cases. When an indication of an impairment loss or a reversal of an impairment loss exists, the recoverable amount of the individual asset must be estimated. If it is not possible to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-generating unit to which the asset belongs must be determined.

The assumption used in the asset valuation process was a price of CAN$1,300 per ounce of gold in 2015, CAN$1,370 per ounce of gold in 2016 and CAN$1,374 per ounce of gold in 2017 and after. These prices are used in order to estimate future revenues and are based on an average of recent prices.

In the process of measuring expected future cash flows, management makes assumptions about future operating results, such as future metal production (proven and probable reserves), estimated future metal prices, operating costs, capital and site restoration expenses and estimated future foreign exchange rates. These assumptions relate to future events and circumstances. Actual results may differ from estimated results.

Income taxes and deferred mining taxes

The Corporation is subject to taxes from different tax jurisdictions. Management continually evaluates the likelihood that its deferred tax assets could be realized. This requires management to assess whether it is probable that sufficient taxable income will exist in the future to utilize these losses within the carry-forward period. The Corporation also maintains allowances for uncertain tax positions that, in its opinion, appropriately reflect the risks related to the tax positions subject to discussions, audits, differences of opinion and appeals with the tax authorities or that are otherwise uncertain. These allowances are determined using best estimates of the amount payable based on a qualitative assessment of all relevant information. These allowances are reassessed at the end of each financial reporting period to determine if the amount is sufficient. However, audits by the tax authorities could subsequently result in an additional liability. Upon the definite resolution of a tax issue resulting in a tax amount that differs from the initially recognized tax expense, the difference is recognized in the tax expense of the period of definitive settlement.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Share-based remuneration expense

The estimation of share-based payment costs requires the selection of an appropriate valuation model and consideration as to the inputs necessary for the valuation model chosen. The Corporation has made estimates as to the volatility of its own shares, the probable life of options and the time of exercise of those options. The model used by the Corporation is the Black-Scholes model. The Corporation similarly evaluated the expected extinguishments for each remuneration program within the parameters of each individual program.

Dismantling costs and severance costs

The Corporation estimates dismantling costs and severance costs by making assumptions such as retention of employees and timing of dismantling. The uncertainty of these estimations may lead to differences between the actual expenses and the estimated costs.

Recoverability of credits relating to resources and credits on duties refundable for losses

Uncertainties related to the review by government authorities of the Corporation’s current and prior years’ claims for the refundable tax credit relating to resources and the credit on duties refundable for losses, based on qualifying exploration expenditures under the Taxation Act (Quebec) and the Mining Tax Act (Quebec), require management to assess whether these claims will be settled in full or in part. Uncertainties exist with respect to the interpretation of tax legislation and regulations by government authorities, the amount of expenditures that may be disallowed by such authorities as a result of their interpretation of tax legislation and regulations and the timing of recovery of the credits.

Start of advanced exploration phase

The Corporation evaluates the potential of each project to determine when the project should progress from the exploration phase to the advanced exploration phase. Once management has determined that a project has demonstrated a potential for development, and an economic analysis supports its commercial viability and its economic benefit, the project moves into the advanced exploration phase once approval has been given by the Board of Directors. Expenditures related to the project are capitalized as of this time.

Start of commercial production

Management assesses the stage of completion of each advanced exploration project to determine when it begins commercial production. The Corporation considers a number of criteria to determine when a mine enters into commercial production, thereby resulting in reclassification from “Advanced exploration project” to “Mining site in production”. The following criteria are used:

• Production capacity achieved

• Recovered grade

• Stage of completion of development work

When a mine considered to be an advanced exploration project becomes a mining site under production, previously capitalized costs are allocated among the various assets, such as inventory, development expenses, buildings and equipment. Additionally, from that time, some previously capitalized costs are then recognized as expenses and the related income is recognized as precious metals revenue. Depreciation/depletion begins at that time as well.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Provisions and contingent liabilities

Judgments are made as to whether a past event has led to a liability that should be recognized in the consolidated financial statements or disclosed as a contingent liability. Quantifying any such liability often involves judgments and estimations. These judgments are based on a number of factors including the nature of the claims or dispute, the legal process and potential amount payable, legal advice received, past experience and the probability of a loss being realized. Several of these factors are sources of estimation uncertainty.

FUTURE ACCOUNTING PRONOUNCEMENTS

At the date of authorization of these consolidated financial statements, new standards, amendments and interpretations to existing standards have been published by the International Accounting Standards Board (“IASB”) but are not yet effective, and have not been adopted early by the Corporation.

Management anticipates that all of the pronouncements not yet effective will be adopted in the Corporation’s accounting policies for the first period beginning after the effective date of the pronouncement. Information on new standards, amendments and interpretations that are expected to be relevant to the Corporation’s financial statements is provided below. Certain other new standards and interpretations have been issued but are not expected to have a material impact on the Corporation’s consolidated financial statements.

IFRS 9 – Financial instruments (IFRS 9)

In July 2014, the IASB published IFRS 9 which replaces IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9 introduces improvements which include a logical model for classification and measurement of financial assets, a single, forward-looking “expected loss” impairment model and a substantially-reformed approach to hedge accounting. IFRS 9 is effective for annual reporting periods beginning on or after January 1, 2018. Earlier application is permitted. The Corporation has yet to assess the impact of this new standard on its consolidated financial statements.

IFRS 15 – Revenues from contracts with Customers (IFRS 15)

In May 2014, the IASB published IFRS 15 which replaces IAS 18 Revenue, IAS 11 Construction Contracts and some revenue-related interpretations. IFRS 15 establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized at a point in time or over time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2017. Earlier application is permitted. The Corporation has yet to assess the impact of this new standard on its consolidated financial statements.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

GENERAL ANNUAL INFORMATION

Labour relations

Richmont Mines offers its employees a compensation package including attractive benefits and a stock-option plan for management. The Corporation employed a total of 373 workers and 212 contractors at December 31, 2014, versus 442 workers and 125 contractors at December 31, 2013.

Work health and safety is a priority for Richmont Mines, and the Corporation spares no effort in this regard. There is a very active health and safety committee at all of our operations, and Richmont Mines has a good record of health and safety in the workplace.

The Corporation’s operating mines achieved noteworthy health and safety records in 2014. More specifically, the Island Gold Mine attained four years without a lost-time accident, the Beaufor Mine and the Camflo mill reached 1 year without a lost-time accident. Richmont management would like to thank our employees for their contribution to the health and safety record, and congratulate each and every one of them for their ongoing commitment and day to day involvement.

Environment

Respect for the environment is one of our Corporation’s main preoccupations. Consequently, our management and employees make every effort to respect increasingly strict environmental regulations. The Corporation provides for the adequate closure of its operating sites once reserves are depleted. In 2014, Richmont Mines guaranteed the restoration of its mining sites through letters of credit, in the amount of $3.6 million, $0.1 million of restricted deposits with the Quebec government and $0.6 million of restricted deposits with the Ontario government. Tailings sites are one of the most critical environmental concerns for gold producers. However, Richmont Mines’ tailings sites are not acid-generating, which greatly simplifies future site-restoration projects and reduces their cost.

Disclosure controls and internal controls over financial reporting

Management, including the President and Chief Executive Officer and the Vice-President, Finance, have designed disclosure controls and procedures, or have caused them to be designed under their supervision, to provide reasonable assurance that material information relating to the Corporation has been made known to them and has been properly disclosed in the annual regulatory filings.

An evaluation was carried out, under management supervision, of the effectiveness of the Corporation’s disclosure controls and procedures, as at December 31, 2014, as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, management has concluded that the design and operation of these disclosure controls and procedures were effective.

Management, including the President and Chief Executive Officer and the Vice-President, Finance, have also designed internal controls over financial reporting, or have caused them to be designed under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards. An evaluation was carried out, under management supervision, of the effectiveness of our internal control over financial reporting, as at December 31, 2014, using the framework and criteria established in “2013 Internal Control – Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management has concluded that internal control over financial reporting was effective as at December 31, 2014.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

RISK FACTORS

The following risk factors should be carefully considered when evaluating an investment in the Corporation’s common shares:

Risks Associated with the Mining Industry

The exploration of mineral properties is highly speculative, involves substantial expenditures and is frequently unsuccessful.

The Corporation's profitability is significantly affected by the costs and results of its exploration and development programs. As mines have limited lives based on proven and probable mineral reserves, the Corporation actively seeks to replace and expand its mineral reserves, primarily through exploration and development as well as through strategic acquisitions. Exploration for minerals is highly speculative in nature, involves many risks and is frequently unsuccessful. Among the many uncertainties inherent in any gold exploration and development program are the location of economic ore bodies, the development of appropriate metallurgical processes, the receipt of necessary governmental permits and the construction of mining and processing facilities. Substantial expenditures are required to pursue such exploration and development activities. Assuming discovery of an economic ore body, depending on the type of mining operation involved, several years may elapse from the initial phases of drilling until commercial operations are commenced and during such time the economic feasibility of production may change. Accordingly, the Corporation's current or future exploration and development programs may not result in any new economically viable mining operations or yield new mineral reserves to replace and expand current mineral reserves.

The Corporation's financial performance and results may fluctuate widely due to volatile and unpredictable commodity prices and changes in the exchange rate between the U.S. and Canadian Dollars.

The Corporation's earnings are directly related to commodity prices as revenues are derived principally from the sale of gold. Gold prices fluctuate widely and are affected by numerous factors beyond the Corporation's control, including central bank purchases and sales, producer hedging and de-hedging activities, expectations of inflation, the relative exchange rate of the U.S. dollar with other major currencies, global and regional demand, political and economic conditions, production costs in major gold-producing regions and worldwide production levels. The aggregate effect of these factors is impossible to predict with accuracy. In addition, the price of gold has on occasion been subject to very rapid short-term changes because of speculative activities. Fluctuations in gold prices may materially adversely affect the Corporation's financial performance or results of operations. If the market price of gold falls below the Corporation's total cash costs per ounce of production at one or more of its projects at that time and remains so for any sustained period, the Corporation may experience losses and/or may curtail or suspend some or all of its exploration, development and mining activities at such projects or at other projects. Also, the Corporation's evaluation of the proven and probable reserves at its current mines were based on a market price of gold of $1,300 per ounce. If the market price of gold falls below this level, the mines may be rendered uneconomic and production may be suspended. The Corporation's policy and practice is not to sell forward its future gold production; however, under the Corporation's price risk management policy, approved by the Corporation's board of directors (the "Board"), the Corporation may review this practice on a project by project basis. The Corporation may occasionally use derivative instruments to mitigate the effects of fluctuating by-product metal prices; however, these measures may not be successful.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The volatility of gold prices is illustrated in the following table which sets out, for the periods indicated, the high, low and average afternoon fixing prices for gold on the London Bullion Market (the "London P.M. Fix").

On February 18, 2015, the London P.M. Fix was US$1,206.00 per ounce of gold.

The Corporation's operating results and cash flows are significantly affected by changes in the U.S. dollar/Canadian dollar exchange rate. All of the Corporation's precious metals revenues are earned in U.S. dollars but the majority of its operating costs at its mines, are in Canadian dollars. The U.S. dollar/Canadian dollar exchange rate has fluctuated significantly over the last several years. From January 1, 2009 to January 1, 2015, the Noon Buying Rate fluctuated from a high of CAN$1.3000 per US$1.00 to a low of CAN$0.9449 per US$1.00. Historical fluctuations in the U.S. dollar/Canadian dollar exchange rate are not necessarily indicative of future exchange rate fluctuations.

The Corporation has no gold hedging contracts and no U.S. dollar exchange contracts. However, the Corporation may engage in hedging activities in the future. Hedging activities are intended to protect a corporation from the fluctuations of the price of gold and to minimize the effect of declines in gold prices on results of operations for a period of time. Hedging activities may protect a corporation against low gold prices, however, they may also limit the price that can be realized on gold that is subject to forward sales and call options where the market price of gold exceeds the gold price in a forward sale or call option contract. The Corporation continually evaluates the potential short- and long-term benefits of engaging in such derivative strategies based upon current market conditions. However, the use of by-product metal derivative strategies may not benefit the Corporation in the future. There is a possibility that the Corporation could lock in forward deliveries at prices lower than the market price at the time of delivery. In addition, the Corporation could fail to produce enough precious metals to offset its forward delivery obligations, causing the Corporation to purchase the metal in the spot market at higher prices to fulfill its delivery obligations or, for cash settled contracts, make cash payments to counterparties in excess of precious metals revenue. If the Corporation is locked into a lower than market price forward contract or has to buy additional quantities at higher prices, its net income could be adversely affected.

Also, the Corporation may in the future, if it considers it advisable, enter into hedging arrangements with a view to reducing some risks associated with foreign exchange exposure. However, such hedging strategies may not prove to be successful and foreign exchange fluctuations may materially adversely affect the Corporation's financial performance and results of operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

If the Corporation experiences mining accidents or other adverse conditions, the Corporation's mining operations may yield less gold than indicated by its estimated gold production and to the extent not adequately covered by insurance may result in possible adverse financial consequences to the Corporation.

The Corporation's gold production may fall below estimated levels as a result of mining accidents such as cave-ins, rock falls, rock bursts, slope and pit wall failures, dams, fires or flooding or as a result of other operational problems such as a failure of mining, production and milling equipment. In addition, production may be reduced or curtailed if, during the course of mining, unfavourable, unusual or unexpected geological or geotechnical formations or seismic activity are encountered, ore grades are lower than expected, the physical or metallurgical characteristics of the ore are less amenable than expected to mining or treatment, data on which engineering assumptions are made prove faulty or dilution increases. The Corporation may also encounter shortages or interruptions of economical electricity and adequate water supplies at its mines and production facilities which may adversely affect operations. Finally, inclement weather conditions, floods and the occurrence of other adverse natural phenomena at its mine and production sites may curtail, interrupt or delay mining and production operations and the ability of the Corporation to transport and market its production. Occurrences of this nature and other accidents, adverse conditions or operational problems in future years may result in the Corporation's failure to achieve current or future production estimates and may make profitable mineral deposits unprofitable for continued production. In addition, the occurrence of industrial accidents may result in personal injury or death and damage to property which may result in possible legal liability to the Corporation and if not adequately covered by insurance possible adverse financial consequences to the Corporation. The occurrence of any of these factors could materially and adversely affect a project and as a result materially and adversely affect the Corporation’s business, financial condition, results of operations and cash flows.

The exploration and development of new mineral deposits is subject to numerous risks and uncertainties which may adversely affect the Corporation’s ability to expand or replace its existing production.

The exploration process generally begins with the identification and appraisal of mineral prospects. Exploration and development projects have no operating history upon which to base estimates of future operating costs and capital requirements. Mining projects frequently require a number of years and significant expenditures during the mine development phase before production is possible. Development projects are subject to the completion of successful feasibility studies and environmental assessments, issuance of necessary governmental permits, acquiring title to prospects and the receipt of adequate financing. The economic feasibility of development projects is based on many factors such as:

• estimation of reserves;

• anticipated metallurgical recoveries;

• environmental considerations and permitting;

• estimates of future gold prices; and

• anticipated capital and operating costs of such projects.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Exploration and development of mineral deposits thus involve significant financial risks which a combination of careful evaluation, experience and knowledge may not eliminate. The discovery of an ore body may result in substantial rewards, however, few properties which are explored are ultimately developed into producing mines. A mine must generate sufficient revenues to offset operating and development costs such as the costs required to establish reserves by drilling, to develop metallurgical processes, to construct facilities and to extract and process metals from the ore. Once in production, it is impossible to determine whether current exploration and development programs at any given mine will result in the establishment of new reserves.

Newly opened mines, mine construction projects and expansion projects are subject to risks associated with new mine development, which may result in delays in the start-up of mining operations, delays in existing operations and unanticipated costs.

The Corporation's ability to replace its existing mineral reserves as they are produced and depleted will be dependent upon locating new or expanding production from existing economic mineral reserves and developing new mines or extending and expanding existing mining operations. The Corporation’s ability to achieve full production rates at its new and expanded mines on schedule is subject to a number of risks and uncertainties. New mines may require the construction of significant new underground mining operations and may present problems in acquiring and achieving access to mine locations. The construction of underground mining facilities is subject to a number of risks, including unforeseen geological formations, implementation of new mining processes, delays in obtaining required title to mining deposits and access to locations, construction, environmental or operating permits and engineering and mine design adjustments and construction delays. These occurrences may result in delays in the planned start up dates and in additional costs being incurred by the Corporation beyond those budgeted. Moreover, the construction activities at possible mine extensions may take place concurrently with normal mining operations at, which may result in conflicts with, or possible delays to, existing mining operations.

Due to the nature of the Corporation's mining operations, the Corporation may face liability, delays and increased production costs from environmental and industrial accidents and pollution, and the Corporation's insurance coverage may prove inadequate to satisfy future claims against the Corporation.

The business of gold mining is generally subject to risks and hazards, including environmental hazards, industrial accidents, unusual or unexpected rock formations, changes in the regulatory environment, cave-ins, rock bursts, rock falls, slope and pit wall failures and flooding and gold bullion losses. Such occurrences could result in damage to, or destruction of, mineral properties or production facilities, personal injury or death, environmental damage, delays in mining, monetary losses and possible legal liability. The Corporation carries insurance to protect itself against certain risks of mining and processing which may not provide adequate coverage in certain unforeseen circumstances. The Corporation may also become subject to liability for pollution, cave-ins or other hazards against which it cannot insure or against which it has elected not to insure because of high premium costs or other reasons, or the Corporation may become subject to liabilities which exceed policy limits. In these circumstances, the Corporation may be required to incur significant costs that could have a material adverse effect on its financial performance and results of operations.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The Corporation's operations are subject to numerous laws and extensive government regulations which may cause a reduction in levels of production, delay or the prevention of the development of new mining properties or otherwise cause the Corporation to incur costs that adversely affect the Corporation's results of operations.

The Corporation's mining and mineral processing operations and exploration activities are subject to the laws and regulations of federal, provincial, and local governments in the jurisdictions in which the Corporation operates. These laws and regulations are extensive and govern prospecting, exploration, development, production, exports, taxes, labour standards, occupational health and safety, waste disposal, toxic substances, environmental protection, mine safety and other matters. Compliance with such laws and regulations increases the costs of planning, designing, drilling, developing, constructing, operating, closing, reclaiming and rehabilitating mines and other facilities. New laws, regulations or taxes, amendments to current laws, regulations or taxes governing operations and activities of mining corporations or more stringent implementation or interpretation thereof could have a material adverse impact on the Corporation, cause a reduction in levels of production and delay or prevent the development of new mining properties.

The Canadian mining industry is subject to federal and provincial environmental protection legislation. This legislation sets high standards on the mining industry in order to reduce or eliminate the effects of waste generated by extraction and processing operations and subsequently emitted into the air or water. Consequently, drilling, refining, extracting and milling are all subject to the restrictions imposed by such legislation. In addition, the construction and commercial operation of a mine typically entail compliance with applicable environmental legislation and review processes, as well as the obtaining of permits, particularly for the use of the land, permits for the use of water, and similar authorizations from various governmental bodies. Compliance with such laws and regulations increases the costs of planning, designing, drilling, developing, constructing, operating and closing mines and other facilities.

All of the Corporation’s operations are subject to reclamation, site restoration and closure requirements. Costs related to ongoing site restoration programs are expensed when incurred. The Corporation calculates its estimates of the ultimate reclamation liability based on current laws and regulations and the expected future costs to be incurred in reclaiming, restoring and closing its operating mine sites. It is possible that the Corporation’s estimates of its ultimate reclamation liability could change as a result of possible changes in laws and regulations and changes in cost estimates.

Failure to comply with applicable laws and regulations may result in enforcement actions thereunder, and may include corrective measures requiring capital expenditures, installation of additional equipment or remedial actions. Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of the mining activities and may become subject to civil or criminal fines or penalties for violations of applicable laws or regulations.

New or expanded environmental regulations, if adopted, or more stringent enforcement of existing laws and regulations, could affect the Corporation’s projects or otherwise have a material adverse effect on its operations. As a result, expenditures on any and all projects, actual production quantities and rates and cash operating costs, among other things, may be materially and adversely affected and may differ materially from anticipated expenditures, production quantities and rates, and costs, and estimated production dates may be delayed materially, in each case. Any such event would materially and adversely affect the Corporation’s business, financial condition, results of operations and cash flows.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The conduct of mining operations is dependent upon obtaining and renewing applicable governmental permits the issuance of which may be subject to meeting certain conditions which may prove difficult and costly.

Mineral exploration and mining activities may only be conducted by entities that have obtained or renewed exploration or mining permits and licenses in accordance with the relevant mining laws and regulations. No guarantee can be given that the necessary exploration and mining permits and licenses will be issued to the Corporation in a timely manner, or at all, or, if they are issued, that they will be renewed, or that the Corporation will be in a position to comply with or can afford to comply with all conditions that may be imposed.

Increased regulation of greenhouse gas emissions and climate change issues may adversely affect the Corporation's operations.

The Corporation operates in a number of jurisdictions in which regulatory requirements would require it to report and/or reduce greenhouse gas emissions. The Corporation's operations in Quebec use primarily hydroelectric power and, consequently, are not large producers of greenhouse gases.

Title to the Corporation's properties may be uncertain and subject to risks.

The acquisition of title to mineral properties is a very detailed and time-consuming process. Title to, and the area of, mineral deposits may be disputed. Although the Corporation believes it has taken reasonable measures to ensure proper title to its properties, there is no guarantee that title to any of its properties will not be challenged or impaired. Third parties may have valid claims on underlying portions of the Corporation's interests, including prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, among other things, undetected defects. In addition, the Corporation may be unable to operate its properties as permitted or to enforce its rights in respect of its properties. Moreover, where the Corporation’s interest in a property is less than 100%, or a third party holds a form of profit sharing interest, the Corporation’s entitlement to, and obligations in respect of, the property are subject to the terms of the agreement relating to that property, or in the absence of an agreement subject to provincial or federal laws and regulations, which in certain circumstances may be the subject of differing interpretations between the parties.

The success of the Corporation is dependent on good relations with its employees and on its ability to attract and retain key personnel.

Production at the Corporation's mines and mine projects is dependent on the efforts of the Corporation's employees and contractors. Relationships between the Corporation and its employees may be affected by changes in the scheme of labour relations that may be introduced by relevant government authorities in the jurisdictions that the Corporation operates. Changes in applicable legislation or in the relationship between the Corporation and its employees or contractors may have a material adverse effect on the Corporation's business, results of operations and financial condition.

The Camflo Mill has successfully renewed its collective agreement that expired on December 31, 2012 for another three-year period ending December 31, 2015.

The Corporation is also dependent upon a number of key management personnel. The loss of the services of one or more of such key management personnel could have a material adverse effect on the Corporation. The Corporation's ability to manage its operating, development, exploration and financing activities will depend in large part on the efforts of these individuals. The Corporation faces significant competition for qualified personnel and the Corporation may not be able to attract and retain such personnel.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The estimates of mineral reserves and forecasts of the production are subject to numerous uncertainties, and the production and recovery of the reserve estimates appearing in the Annual Report may not be realized.

The ore reserves presented in the Annual Report are in large part estimates, and production of the anticipated tonnages and grades may not be achieved or the indicated level of recovery may not be realized. There are numerous uncertainties inherent in estimating proven and probable reserves including many factors beyond the Corporation’s control. The estimation of reserves is a complex and subjective process and the accuracy of any such estimate is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation. Reserve estimates may require revision based on various factors such as actual production experience, exploration results, market price fluctuations of gold, results of drilling, metallurgical testing, production costs or recovery rates. These factors may render the proven and probable reserves unprofitable to develop at a particular property or for a specific mine. Any material reduction in estimates of the Corporation’s reserves or its ability to extract these reserves could have a material adverse effect on its future cash flows, results of operations and financial condition.

Also, the grade of ore mined may differ from that indicated by drilling results, and this variation may have an adverse impact on production results. In addition, the reliability of estimates of future production might also be affected by factors such as weather, strikes and environmental occurrences.

The Corporation’s annual production estimates are developed based on, among other things, mining experience, reserve estimates, assumptions regarding ground conditions and physical characteristics of ores (such as hardness and presence or absence of certain metallurgical characteristics) and estimated rates and costs of production. Actual production may vary from estimates for a variety of reasons, including risks and hazards of the types discussed above.

The mining industry is highly competitive, and the Corporation may not be successful in competing for new mining properties.

The mining industry is intensely competitive and the Corporation is in competition with other mining corporations for the acquisition of interests in precious and other metal or mineral mining properties which are in limited supply. In the pursuit of such acquisition opportunities, the Corporation competes with other Canadian and foreign companies that may have substantially greater financial and other resources. As a result of this competition, the Corporation may be unable to maintain or acquire attractive mining properties on acceptable terms, or at all.

The Corporation may not have insurance or its insurance coverage may prove inadequate to reimburse the Corporation for liabilities encountered from operations.

The Corporation carries insurance against property damage and comprehensive general liability insurance for all operations. It is also insured against gold and silver bullion thefts and losses of goods in transit. Such insurance, however, contains exclusions and limitations on coverage. The Corporation believes that its insurance coverage is adequate and appropriate for the perceived risks of its current operations, however, such insurance may not continue to be available, or if available may not continue to be available at economically acceptably premiums or may not continue to be adequate to cover the Corporation’s anticipated liabilities. In some cases, however, risk coverage is not available or is considered too expensive relative to the perceived risk.

Risks not insured against include mine cave-ins, mine flooding or other comparable hazards. Furthermore, there are risks attributable to most types of environmental pollution against which the Corporation cannot insure or against which it has elected not to insure.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The Corporation may have difficulty financing its additional capital requirements for its planned mine construction, exploration and development.

The construction of mining facilities and commencement of mining operations, the expansion of existing capacity and the exploration and development of the Corporation's properties, including continuing exploration and development projects, will require substantial capital expenditures. Based on current funding available to the Corporation and expected cash from operations, the Corporation believes it has sufficient funds available to fund its projected capital expenditures for all of its current mining operations. However, if cash from operations is lower than expected or capital costs at these current mining operations or future projects exceed current estimates, or if the Corporation incurs major unanticipated expenses related to exploration, development or maintenance of its properties, the Corporation may be required to seek additional financing to maintain its capital expenditures at planned levels. In addition, the Corporation will have additional capital requirements to the extent that it decides to expand its present operations and exploration activities; construct additional new mining and processing operations at any of its properties; or take advantage of opportunities for acquisitions, joint ventures or other business opportunities that may arise. Additional financing may not be available when needed or, if available, the terms of such financing may not be favorable to the Corporation and, if raised by offering equity securities, or securities convertible into equity securities, any additional financing may involve substantial dilution to existing shareholders. Failure to obtain any financing necessary for the Corporation's capital expenditure plans may result in a delay or indefinite postponement of exploration, development or production on any or all of the Corporation's properties, which may have a material adverse effect on the Corporation's business, financial condition and results of operations.

Weakness in the global credit and capital markets could have a material adverse impact on the Corporation's liquidity and capital resources.

The credit and capital markets experienced significant deterioration in 2008, including the failure of significant and established financial institutions in the United States and abroad, and continued to show weakness and or uncertainty into 2014. These unprecedented disruptions in the credit and capital markets have negatively impacted the availability and terms of credit and capital. If uncertainties in these markets continue, or these markets deteriorate further, it could have a material adverse effect on the Corporation's liquidity, ability to raise capital and costs of capital. Failure to raise capital when needed, or on reasonable terms, may have a material adverse effect on the Corporation's business, financial condition and results of operations.

The Corporation may be party to certain mining joint ventures in the future, under which the Corporation’s joint venture partners may be in a position to prevent the Corporation from meeting its objectives.

Mining projects are often conducted through an unincorporated joint venture or an incorporated joint venture corporation. Joint ventures can often require unanimous approval of the parties to the joint venture or their representatives for certain fundamental decisions, such as an increase or reduction of registered capital, merger, division, dissolution, including indebtedness and the pledge of the joint venture assets, which means that each joint venture party has a veto right with respect to such decisions, which could in turn lead to a deadlock. The Corporation’s existing or future joint venture partners may veto the Corporation’s business plans, with regard to a specific joint venture, and prevent the Corporation from achieving its objectives.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

On a regular basis, the Corporation evaluates potential acquisitions of mining properties and/or interests in other mining corporations which may entail certain risks.

Consistent with its growth strategy, the Corporation evaluates the potential acquisition of advanced exploration, development and production assets on a regular basis. From time to time, the Corporation may also acquire securities of or other interests in corporations with whom the Corporation may complete acquisition or other transactions. These transactions involve inherent risks, including, without limitation:

• accurately assessing the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates;

• ability to achieve identified and anticipated operating and financial synergies;

• unanticipated costs;

• diversion of management attention from existing business;

• potential loss of key employees or the key employees of any business the Corporation acquires;

• unanticipated changes in business, industry or general economic conditions that affect the assumptions underlying the acquisition; and

• decline in the value of acquired properties, corporations or securities.

Any one or more of these factors or other risks could cause the Corporation not to realize the benefits anticipated to result from the acquisition of properties or corporations, and could have a material adverse effect on the Corporation’s ability to grow and, consequently, on the Corporation’s financial condition and results of operations.

The Corporation continues to seek acquisition opportunities consistent with its acquisition and growth strategy, however, it may not be able to identify additional suitable acquisition candidates available for sale at reasonable prices, to consummate any acquisition, or to integrate any acquired business into its operations successfully. Acquisitions may involve a number of special risks, circumstances or legal liabilities, some or all of which could have a material adverse effect on the Corporation’s business, results of operations and financial condition. In addition, to acquire properties and corporations, the Corporation could use available cash, incur debt, issue common shares or other securities, or a combination of any one or more of these. This could limit the Corporation’s flexibility to raise additional capital, to operate, explore and develop its properties and to make additional acquisitions, and could further dilute and decrease the trading price of the common shares. When evaluating an acquisition opportunity, the Corporation cannot be certain that it will have correctly identified and managed the risks and costs inherent in the business that it is acquiring.

From time to time, the Corporation engages in discussions and activities with respect to possible acquisitions. At any given time, discussions and activities can be in process on a number of initiatives, each at different stages of development. Potential transactions may not be successfully completed, and, if completed, the business acquired may not be successfully integrated into the Corporation’s operations. If the Corporation fails to manage its acquisition and growth strategy successfully it could have a material adverse effect on its business, results of operations and financial condition.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Risks related to owning the Corporation’s common shares

The Corporation’s shares fluctuate in price.

The market price of the Corporation’s common shares may fluctuate due to a variety of factors relating to the Corporation’s business, including the announcement of expanded exploration, development and production activities by the Corporation and its competitors, gold price volatility, exchange rate fluctuations, consolidations, dispositions, acquisitions and financings, changes or restatements in the amount of the Corporation’s mineral reserves, fluctuations in the Corporation’s operating results, sales of the Corporation’s common shares in the marketplace, failure to meet analysts’ expectations, changes in quarterly revenue or earnings estimates made by the investment community, speculation in the press or investment community about the Corporation’s strategic position, results of operations, business or significant transactions and general conditions in the mining industry or the worldwide economy. In addition, wide price swings are currently common in the markets on which the Corporation's securities trade. This volatility may adversely affect the prices of the Corporation's common shares regardless of the Corporation's operating performance. The market price of the Corporation’s common shares may experience significant fluctuations in the future, including fluctuations that are unrelated to the Corporation’s performance.

Issuance by the Corporation of additional common shares could affect the market price of the shares and dilute existing shareholders.

Issuance of a substantial number of the Corporation’s common shares by the Corporation, for example, in connection with a potential acquisition or to raise additional capital for operations, or to reduce indebtedness, or pursuant to existing agreements, or the availability of a large number of Corporation common shares that may be available for sale, could adversely affect the prevailing market prices for the Corporation’s outstanding common shares. A decline in the market price of the Corporation’s outstanding common shares could impair the Corporation’s ability to raise additional capital through the issuance of securities should the Corporation desire to do so.

The Corporation does not currently anticipate declaring any dividends on its common shares.

The Corporation has not declared or paid any dividends on its common shares since its incorporation and it has no current plans to pay dividends on its common shares. Its present policy is to retain earnings to finance its capital expenditures program. The Board of Directors assesses its dividend policy on a yearly basis. In the future, the Board of Directors may declare dividends according to its assessment of the financial position of the Corporation, taking into account its financing requirements for future growth and other factors that the Board of Directors may deem relevant in the circumstances.

Regulation 43-101

The Mineral Reserve and Resource estimations as of December 31, 2014 and December 31, 2013 were performed by qualified persons as defined by Regulation 43-101 and were supervised by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc. Please refer to the SEDAR website (www.sedar.com) for full reports and additional corporate documentation.

A 43-101 technical report was completed for the Island Gold Mine as of December 31, 2013, and was filed on SEDAR on March 31, 2014.

The Reserve and Resource estimations of Beaufor, Island Gold and Monique mines were prepared using a gold price of US$1,200 (CAN$1,300) per ounce for 2014 and US$1,225 (CAN$1,300) per ounce for 2013.

The Resource estimation of the Francoeur Mine was established at the end of 2012 using a gold price of US$1,450 (CAN$1,450) per ounce, and was prepared by qualified persons as defined by Regulation 43-101 and was supervised by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

The Resource estimate of the Wasamac property was established at the end of 2012 using a gold price of US$1,450 (CAN$1,450) per ounce. It was performed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by Regulation 43-101.

The Monique Mine Reserve and Resource estimate as of December 31, 2013 was established using a gold price of US$1,225 (CAN$1,300) per ounce and was performed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by Regulation 43-101. A 43-101 technical report was completed for the first Reserve estimation of this property on July 1^st, 2013, and was filed on SEDAR on September 13, 2013.

Cautionary note to U.S. investors concerning resource estimates and civil liabilities and judgments

Resource estimates

The resource estimates in this Management’s Discussion and Analysis were prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of Regulation 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”). In this Management’s Discussion and Analysis, we use the terms “Measured,” “Indicated” and “Inferred” Resources; although these terms are recognized and required to be used in Canada, the SEC does not recognize them. The SEC permits U.S. mining corporations, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves.” Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a Measured or Indicated Resource will ever be converted into “reserves.” Furthermore, “Inferred Resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “Inferred Resources” exist or can be legally or economically mined, or that they will ever be upgraded to a more certain category.

Potential unenforceability of civil liabilities and judgments

The Corporation is incorporated under the laws of the Province of Quebec, Canada. All of the Corporation's directors and officers as well as the experts named in the Form 20-F are residents of Canada. Also, all of the Corporation's assets and most of the assets of these persons are located outside of the United States. As a result, it may be difficult for shareholders to initiate a lawsuit within the United States against these non-U.S. residents, or to enforce U.S. judgments against the Corporation or these persons. The Corporation's Canadian counsel has advised the Corporation that a monetary judgment of a U.S. court predicated solely upon the civil liability provisions of U.S. federal securities laws would likely be enforceable in Canada if the U.S. court in which the judgment was obtained had a basis for jurisdiction in the matter that was recognized by a Canadian court for such purposes. This result may not always be the case. It is less certain that an action could be brought in Canada in the first instance on the basis of liability predicated solely upon such laws.

Compliance with Canadian Securities Regulations

This Annual Report is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects from the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended (“Exchange Act”), as promulgated by 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.

MANAGEMENT’S DISCUSSION AND ANALYSIS

(All dollar figures are in thousands of Canadian dollars, unless otherwise stated)

Forward-looking statements

This Management’s Discussion and Analysis contains forward-looking statements. These statements relate to future events or the Corporation’s future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “continue”, or the negative of these terms or other comparable terminology. These statements are only predictions. In addition, this Management’s Discussion and Analysis may contain forward-looking statements attributed to third party industry sources. Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Important factors that could cause such a difference are discussed in this Report, particularly in the section “Risks and uncertainties”. Other risks may be detailed in Richmont Mines’ Annual Information Form, Annual Report and periodic reports. Except as may be required by law, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

Additional information and continued disclosure

This Management’s Discussion and Analysis was prepared as at February 18, 2015. The Corporation regularly discloses additional information through news releases, quarterly financial statements and its annual information form (AIF) on the SEDAR Web site (www.sedar.com) and through Richmont Mines’ Web site (www.richmont-mines.com).

TABLE OF RESERVES AND RESOURCES

TABLE OF MINERAL RESERVES AND RESOURCES¹