AuRico Gold Reports Second Quarter Financial Results and Eighth Consecutive Quarter of Record Gold Production as Young-Davidson Ramp-Up Exceeds Expectations

Toronto (ots/PRNewswire) -

AuRico Gold Inc. , ("AuRico" or the "Company") reports financial
results for the three and six months ended June 30, 2014. The Company
will host a conference call on Friday, August 8, 2014 beginning at
8:30 a.m. Eastern Time (details below). (All amounts are in U.S.
dollars, unless otherwise indicated.)

To view "Company Wide Quarterly Production Growth", please click:
http://files.newswire.ca/975/ProductionGraph.pdf

Financial Highlights

(in thousands, except Quarter Ended Quarter Ended Six Months Ended Six Months Ended
per share amounts) June 30, 2014 June 30, 2013 June 30, 2014 June 30, 2013
Revenue from mining
operations $75,530 $57,660 $146,483 $122,545
Adjusted net (loss) /
earnings(1) ($15,284) $6,122 ($22,892) $17,719
Adjusted net (loss) /
earnings per share,
basic(1) ($0.06) $0.02 ($0.09) $0.07
Net loss ($16,776) ($103,491) ($45,667) ($85,217)
Net loss per share,
basic ($0.07) ($0.42) ($0.18) ($0.34)
Adjusted operating cash
flow(1) $12,258 $18,691 $25,727 $38,813
Adjusted operating cash
flow, per share(1) $0.05 $0.08 $0.10 $0.15
(1) See the tables at the end of this press release for a reconciliation of
adjusted net earnings and adjusted operating cash flow and refer to the discussion
of Non-GAAP measures below.

Operational Highlights

Quarter ended June 30, 2014 Quarter ended June 30, 2013
El El
Young-Davidson Chanate Total Young-Davidson Chanate Total
Gold ounces produced 40,166 16,032 56,198 19,435 18,751 38,186
Gold ounces produced,
pre-commercial
production(3) - - - 9,817 - 9,817
Total gold ounces
produced 40,166 16,032 56,198 29,252 18,751 48,003
Underground cash
costs per
ounce(1)(2)(4) $803 - $803 - - -
Open pit cash
costs per
ounce(1)(2)(4) $974 $618 $800 $716 $602 $655
Total cash costs per
ounce(2)(4) $871 $618 $801 $716 $602 $655
Six months ended June 30, Six months ended June 30,
2014 2013
El El
Young-Davidson Chanate Total Young-Davidson Chanate Total
Gold ounces produced 75,270 35,142 110,412 39,987 36,640 76,627
Gold ounces produced,
pre-commercial
production(3) - - - 17,546 - 17,546
Total gold ounces
produced 75,270 35,142 110,412 57,533 36,640 94,173
Underground cash
costs per
ounce(1)(2)(4) $805 - $805 - - -
Open pit cash
costs per
ounce(1)(2)(4) $1,141 $601 $856 $705 $585 $645
Cash costs per
ounce(2)(4) $935 $601 $834 $705 $585 $645

(1) Prior to commissioning the underground mine at Young-Davidson,
cash costs were calculated on ounces produced from the open pit only.
All underground costs were capitalized, and any revenue related to
underground ounces sold was credited against capital. Subsequent to
the declaration of commercial production in the underground mine on
October 31, 2013, cash costs are calculated on ounces from both the
open pit and underground mines, and revenue related to the sale of
underground ounces is recognized in the Company's Statement of
Operations as revenue.

(2) Cash costs are prior to inventory net realizable value
adjustments, where applicable. See the Non-GAAP Measures section on
page 18 of the Management's Discussion and Analysis for the three and
six months ended June 30, 2014.

(3) Includes pre-production gold ounces from the Young-Davidson
underground mine prior to the declaration of commercial production on
October 31, 2013.

(4) For the three and six months ended June 30, 2014, cash costs
per gold ounce are calculated using gold ounces sold at the El
Chanate and Young-Davidson mines. For 2013, cash costs per gold ounce
are calculated using gold ounces sold at the El Chanate mine and gold
ounces produced at the Young-Davidson mine.

2014 Guidance Confirmation and Update

The Company confirms its 2014 operational estimates and is
revising its capital investment estimates for the Young-Davidson
mine.

During the first six months of the year the Young-Davidson mine
has continued to exceed expectations through a diligent focus on
driving further productivity gains throughout the operation as well
as accelerating capital investment initiatives that position the mine
for long-term success. This increased capital investment has
supported higher than expected productivity throughout the operation
as follows:

- Underground development rates have exceeded planned levels to date and
support the increasing underground productivity levels that position the mine to meet,
or potentially exceed, the year-end target of 4,000 tonnes per day.
- The sustainable run-rate of the mill facility has been increased from 7,000
tonnes per day to the current 8,000 tonnes per day through the addition of two leach
tanks and a pebble recycle conveyor system with no negative impact on recoveries. The
increased mill capacity will support the growing underground ore feed as well as the
early treatment of the open pit stockpile that is expected to favourably augment the
mine's free cash flow profile going forward.
- Sinking of the historical MCM shaft is currently three months ahead of
schedule, which is expected to advance the timing to complete the final leg of the
Northgate production shaft to its ultimate depth and provide earlier access to the
lower mine.

As a result of the increased capital investment, the Company has
increased its 2014 capital investment estimates at the Young-Davidson
mine from $110 million to approximately $135 million to potentially
accelerate the ramp-up of Young-Davidson. Notwithstanding the
increase in Young-Davidson's capital investment, the Company
continues to be confident that in the current gold price environment
this world class asset will achieve free cash flow by the end of the
year.

Young-Davidson Highlights

- At the end of the quarter, the Young-Davidson mine reported 465 days of
lost time incident free operations.
- Record production of 40,166 gold ounces was reported in the quarter,
representing an increase of 5,062 ounces, or 14%, over the prior quarter. The
operation is expected to deliver additional period-over-period production increases
going forward as the underground mine ramps-up to targeted levels.
- Underground cash costs for the quarter were $803 per gold ounce and are
expected to decline throughout the year, corresponding with planned
quarter-over-quarter increases in underground productivity. Total cash costs for the
quarter, which include the open pit mine and open pit stockpile, were $871 per gold
ounce.
- During the quarter, underground mine productivity exceeded planned levels and
averaged approximately 3,595 tonnes per day. With underground productivity currently
at more than 90% of the year-end target, the operation is firmly positioned to achieve
the year-end target of 4,000 tonnes per day and an ultimate productivity level target
of 8,000 tonnes per day at the end of 2016.
- For the second full quarter of underground commercial production, unit mining
costs were in-line with expectations at approximately $45 per tonne. Corresponding
with the planned quarter-over-quarter increases in underground productivity, unit
costs are expected to decrease steadily throughout the year to a year-end underground
unit mining cost target of approximately $40 per tonne.
- During the quarter, the operation was able to fully utilize excess paste-fill
capacity to accelerate the filling of additional mined out stopes to potentially
accelerate the planned underground ramp-up schedule through earlier access to
secondary stopes. The capacity of the paste-fill plant is expected to fully support
the underground ramp-up to 8,000 tonnes per day at the end of 2016.
- During the quarter, underground development advance continued to exceed
planned levels with approximately 3,545 metres completed, at an average of 39 metres
per day. The Company will continue to focus on advancing underground development to
best position the mine for sustainable, period-over-period productivity increases in
2014 and beyond.
- During the quarter, the mill facility exceeded targeted levels and averaged
8,230 tonnes per day, at planned recoveries of 88%. The higher throughput level during
the quarter suggests a sustainable mill processing run rate of 8,000 tonnes per day
going forward that is expected to provide considerable flexibility as the underground
mine continues to ramp up to its ultimate target of 8,000 tonnes per day. The short
life open pit mine was fully depleted in early June as planned. As a result, open pit
mining activities have ceased and mining costs of approximately $3 million per month
have been eliminated. Currently, approximately 3.2 million tonnes of open pit ore, at
an average grade of approximately 0.80 grams per tonne, is stockpiled ahead of the
mill facility for future processing. The open pit stockpile will supplement
underground ore feed to the mill processing facility as the underground mine ramps up
to targeted levels. As the related mining costs associated with the stockpile were
expended in prior periods, processing of these ore tonnes is expected to favourably
augment the mine's free cash flow profile going forward.

El Chanate Highlights

- At the end of the quarter, the El Chanate mine achieved 479 days of lost
time incident free operations.
- During the quarter the open pit mined an average of 93,808 tonnes per day.
- Production in the quarter reflected sequencing of lower grade mining areas.
Operations are expected to increasingly shift to higher grade mining areas during the
second half of the year.
- Cash costs for the quarter were $618 per ounce, in-line with guidance levels.

"The Company has reported the eighth consecutive quarter of
production growth underpinned by another record quarter from the
Young-Davidson mine where the operation continues to exceed
expectations, and with Young-Davidson establishing higher
productivity levels quarter-over-quarter we are gaining increasing
confidence in the potential of this asset. Underpinned by our strong
financial position, we are able to leverage that potential and have
increased capital investment to potentially accelerate the ramp-up to
peak productivity levels." stated Scott Perry, President and Chief
Executive Officer. He continued, "The Company continues to take a
longer term view to position our operations for sustainable growth
and shareholder value creation that will drive long term success. As
we begin the third quarter the Company is very well positioned to
deliver the ninth consecutive quarter of production growth and we are
increasingly confident that in the current gold price environment the
Young-Davidson mine will be generating positive free cash flow by the
end of the year."

Adjusted Net Earnings Reconciliation

(in thousands, except per share metrics) Quarter Ended Quarter Ended
June 30, 2014 June 30, 2013
Net loss ($16,776) ($103,491)
Adjustments:
Deferred income tax (recovery) /
expense related to foreign exchange (11,309) 11,852
Foreign exchange loss / (gain) 7,583 (8,741)
Unrealized and realized (gain) / loss
on investments (779) 204
Loss on retained interest royalty 4,815 -
Net realizable value adjustments on
inventory - 12,245
Impairment charges - 98,688
Unrealized loss on derivatives - 793
Gain on option component of
convertible notes - (4,106)
Unrealized loss on contingent
consideration - 4,060
Other (including tax effect of
adjustments) 1,182 (5,382)
Adjusted net (loss) / earnings ($15,284) $6,122
Adjusted net (loss) / earnings, per share ($0.06) $0.02
(in thousands, except per share metrics) Six Months Ended Six Months Ended
June 30, 2014 June 30, 2013
Net loss ($45,667) ($85,217)
Adjustments:
Deferred income tax expense related to
foreign exchange 1,347 12,553
Foreign exchange gain 1,635 (9,677)
Gain on option component of
convertible notes (413) (10,975)
Unrealized and realized (gain) / loss
on investments (6,589) 316
Loss on retained interest royalty 4,815 -
Loss on convertible notes tender offer 15,645 -
Corporate restructuring costs 2,716 -
Net realizable value adjustments on
inventory - 12,245
Impairment charges - 98,688
Unrealized loss on contingent
consideration - 6,849
Unrealized gain on derivatives - (1,882)
Other (including tax effect of
adjustments) 3,619 (5,181)
Adjusted net (loss) / earnings ($22,892) $17,719
Adjusted net (loss) / earnings, per share ($0.09) $0.07

Adjusted Operating Cash Flow Reconciliation

(in thousands, except per share metrics) Quarter Ended Quarter Ended
June 30, 2014 June 30, 2013
Operating cash flow $4,649 $13,875
Add back: Non-cash change in operating working
capital 7,609 4,816
Adjusted operating cash flow $12,258 $18,691
Adjusted operating cash flow, per share $0.05 $0.08
(in thousands, except per share metrics) Six Months Ended Six Months Ended
June 30, 2014 June 30, 2013
Operating cash flow $29,140 $26,974
Add back: Non-cash change in operating working
capital (3,413) 11,839
Adjusted operating cash flow $25,727 $38,813
Adjusted operating cash flow, per share $0.10 $0.15

Adjusted Earnings before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA")

(in thousands) Quarter Ended Quarter Ended
June 30, 2014 June 30, 2013
EBITDA $14,908 ($80,483)
Add back:
Exploration 20 17
Non-cash items identified in supplemental cash
flow note, excluding amortization and
depletion, and deferred income tax expense /
recovery 5,546 102,217
Adjusted EBITDA $20,474 $21,751
(in thousands) Six Months Ended Six Months Ended
June 30, 2014 June 30, 2013
EBITDA $21,387 ($45,602)
Add back:
Exploration 28 19
Non-cash items identified in supplemental cash
flow note, excluding amortization and
depletion, and deferred income tax expense /
recovery 14,746 97,382
Adjusted EBITDA $36,161 $51,799

Non-GAAP Measures

The Company uses the measures adjusted net earnings, cash costs
per ounce, adjusted operating cash flow, EBITDA and Adjusted EBITDA
in this press release, which do not have a standardized meaning
prescribed by International Financial Reporting Standards ("IFRS" or
"GAAP"). They are, therefore, considered to be non-GAAP measures and
may not be comparable to similar measures presented by other
companies. The non-GAAP measures cash costs per ounce and EBITDA are
reconciled to the Company's financial statements beginning on page 18
of the Company's Management's Discussion and Analysis for the three
and six months ended June 30, 2014.

Adjusted net earnings is comprised of net earnings, adjusted for
specific items. While the adjustments to net earnings in this measure
include items that are recurring, adjusted net earnings is a useful
measure as the unrealized gains / losses on foreign exchange, fair
value adjustments on contingent consideration and derivatives,
unrealized and realized gains and loss on investments, corporate
restructuring costs, and other non-recurring items do not reflect the
underlying operating performance of the Company's core mining
business in the periods presented and are not necessarily indicative
of future operating results.

Adjusted operating cash flow excludes the change in non-cash
operating working capital, which includes changes in receivables,
inventories, prepaid assets, and payables. Management uses adjusted
operating cash flow as a measure internally to evaluate the
underlying operating cash flow performance of the Company as a whole
for the reporting periods presented, and to assist with the planning
and forecasting of future operating cash flow.

Adjusted EBITDA represents EBITDA, adjusted for exploration
expense and other non-cash items included in earnings. While the
adjustments to net earnings in this measure includes items that are
recurring, adjusted EBITDA is a valuable indicator of the Company's
ability to generate liquidity by producing operating cash flow to
fund working capital needs, service debt obligations, and fund
capital expenditures.

Financial Statements and Management's Discussion and Analysis

The financial statements and related Management's Discussion and
Analysis can be found on the Company's website at
http://www.auricogold.com or under the Company's profile on
http://www.sedar.com and with the Securities and Exchange Commission
at http://www.sec.gov/edgar.shtml ("Edgar").

Q2 2014 Dividend Declared

Commencing in 2014, the quarterly dividend is linked to operating
cash flow ("OCF"), whereby the Company pays out 20% of the OCF
generated in the preceding quarter, divided by the Company's
outstanding common shares at the time the dividend is approved. On
August 7, 2014, the Board of Directors declared the Company's
quarterly dividend payment of $0.00375 per share for the second
quarter ended June 30, 2014, payable on September 2, 2014 to
shareholders of record at the close of business on August 18, 2014.
Further information on the Company's dividend reinvestment plan
(DRIP) is available through the following link:
http://www.auricogold.com/DRIP.

Second Quarter Webcast and Conference Call

A webcast and conference call will be held on Friday, August 8,
2014 starting at 8:30 a.m. Eastern Time. Senior management will be on
the call to discuss the results.

Conference Call Access

- International & Toronto: +1-647-427-7450
- Canada & U.S. Toll Free: 1-888-231-8191

Please ask to be placed into the AuRico Gold 2014 Second Quarter
Results Conference Call.

Conference Call Live Webcast

The conference call will be broadcast live on the internet via
webcast. To access the webcast, please follow this link:
http://www.newswire.ca/en/webcast/detail/1379487/1530049.

Archive Call Access

If you are unable to attend the conference call, a replay will be
available until midnight, August 15, 2014 by dialing the appropriate
number below:

- International & Toronto: +1-416-849-0833 Passcode: #67392874
- Canada & U.S. Toll Free: 1-855-859-2056 Passcode: #67392874

Archive Webcast

The webcast will be archived for 90 days. To access the archived
webcast, visit the Company's website at http://www.auricogold.com or
follow this link:
http://www.newswire.ca/en/webcast/detail/1379487/1530049.

About AuRico Gold

AuRico Gold is a leading Canadian gold producer with mines and
projects in North America that have solid production growth and
exploration potential. The Company is focused on its core operations
including the Young-Davidson gold mine in northern Ontario and the El
Chanate mine in Sonora State, Mexico. AuRico's project pipeline also
includes development opportunities in Canada and Mexico. AuRico's
head office is located in Toronto, Ontario, Canada.:

Cautionary Statement

This press release contains certain information that constitutes
"forward-looking information" and "forward-looking statements" as
defined under Canadian and U.S. securities laws. All statements in
this press release, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "contemplate", "may", "could", "will", "intend",
"estimate", "forecast", "target", "budget", "schedule" and similar
expressions identify forward-looking statements. Forward-looking
statements in this press release include, without limitation, those
under the headings "2014 Guidance Confirmation and Update",
"Young-Davidson Highlights" and "El Chanate Highlights" which
include, without limitation, statements with respect to our
expectations on underground productivity levels, underground unit
mining cost, underground development, mill facility processing rate,
cash flow, cash costs, capital investment and timing to completion on
the final leg of the Northgate production shaft, information as to
our strategy, plans and future financial and operating performance,
such as our expansion plans, project timelines, production plans,
projected cash flows or capital expenditures, cost estimates, mining
or milling methods, projected exploration results, resource and
reserve estimates and other statements that express our expectations
or estimates of future performance.

Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management at the time of making such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in the
forward-looking statements. Such factors and assumptions underlying
the forward-looking statements in this press release include, but are
not limited to: changes to current estimates of mineral reserves and
resources; fluctuations in the price of gold; changes in foreign
exchange rates (particularly the Canadian dollar, Mexican peso and
U.S. dollar); the impact of inflation; changes in our credit rating;
any decision to declare a quarterly dividend; employee relations;
litigation; disruptions affecting operations; availability of and
increased costs associated with mining inputs and labor; development
delays at the Young-Davidson mine; operating or technical
difficulties in connection with mining or development activities;
inherent risks associated with mining and mineral processing; the
risk that the Young-Davidson and El Chanate mines may not perform as
planned; uncertainty with the Company's ability to secure capital to
execute its business plans; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses and permits, including the necessary licenses,
permits, authorizations and/or approvals from the appropriate
regulatory authorities for the Kemess Underground project; contests
over title to properties; changes in national and local government
legislation in Canada, Mexico and other jurisdictions in which the
Company does or may carry on business in the future; risk of loss due
to sabotage and civil disturbances; the impact of global liquidity
and credit availability and the values of assets and liabilities
based on projected future cash flows; risks arising from holding
derivative instruments; business opportunities that may be pursued by
the Company, as well as those factors discussed under "Risk Factors"
in the Company's most recent Annual Information Form.

Actual results and developments are likely to differ, and may
differ materially, from those expressed or implied by the
forward-looking statements contained in this press release. Such
statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to, the assumptions set forth
in our most recent Form 40-F/Annual Information Form. Readers are
cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements.

There can be no assurance that forward-looking statements or
information will prove to be accurate, accordingly, investors should
not place undue reliance on the forward-looking statements or
information contained herein. The Company disclaims any intention or
obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise, except as
required by applicable law.

Cautionary Note to U.S. Investors Concerning Measured, Indicated
and

Inferred Resources

This press release uses the terms "measured", "indicated" and
"inferred" resources. We advise investors that while those terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them. "Inferred
resources" have a great amount of uncertainty as to their existence
and as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred resource will ever be upgraded to
a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other
economic studies. United States investors are cautioned not to assume
that all or any part of measured or indicated mineral resources will
ever be converted into mineral reserves. United States investors are
also cautioned not to assume that all or any part of an inferred
mineral resource exists, or is economically or legally mineable.

PDF available at: http://stream1.newswire.ca/media/2014/08/07/2014
0807_C9679_DOC_EN_42368.pdf

For further information please visit the AuRico Gold website at
http://www.auricogold.com or contact

Rob Chausse
Executive Vice President & Chief Financial Officer
AuRico Gold Inc.
+1-647-260-8880
Anne Day
Vice President, Investor Relations and Communications
AuRico Gold Inc.
+1-647-260-8880

(AUQ. AUQ)

ots Originaltext: AuRico Gold Inc.
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