AuRico Gold Reports Fourth Quarter and Annual Financial Results; Declares Dividend

Toronto (ots/PRNewswire) -

Young-Davidson Delivers Approximately $9 Million of Positive Net
Free Cash Flow

AuRico Delivers Another Year of Consolidated Annual Production
that Achieves Guidance Estimates

AuRico Gold Inc. , ("AuRico" or the "Company") reports financial
results for the three and twelve months ended December 31, 2014. The
Company will host a conference call on Friday, February 20, 2015
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/Quarterly.pdf

2014 Results versus Guidance

Total Production 2014 Results 2014 Guidance[1]

Young-Davidson 156,753 140,000-160,000
El Chanate 67,279 70,000-80,000
224,032 210,000-240,000
Total Cash Costs per
Ounce
Young-Davidson
Underground $719 $650-$750
Young-Davidson
Historical Stockpile $1,071 $850-$950
El Chanate $669 $625-$725
$779 $675-$775
Total All-in Sustaining
Costs per Ounce[2],[3]
Young-Davidson $1,075 $1,100-$1,200
El Chanate $1,121 $1,000-$1,100
$1,200 $1,100-$1,200
Total Capital
Investment ($000s)[4]
Young-Davidson ($000s) $135,100 $135,000
El Chanate ($000s) $26,100 $20,000-$25,000
$161,200 $155,000-$160,000
Company-Wide
Exploration ($000's) $18,700 $15,000
Corporate G&A[5]
($000's) $16,800 $20,000

1. The following currency assumptions were used to forecast 2014 estimates: 0.95:1
US dollar to the Canadian dollar
and 13.0:1 Mexican pesos to the US dollar.
2. Company-wide all-in sustaining costs are defined as cash costs, sustaining
capital, corporate general and administrative expense
and sustaining exploration.
3. Sustaining capital is defined as capital expenditures required to maintain
current levels of production.
4. Capital investment for Young-Davidson and El Chanate operations only. Excludes
exploration costs, capitalized
interest and other corporate capital investment.
5. Does not include share-based compensation and corporate restructuring costs.

Financial Highlights

Twelve Twelve
Quarter Quarter Months Months
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
(in thousands, except
per share amounts) 2014 2013 2014 2013
Revenue from mining
operations $71,194 $50,782 $291,182 $227,631
Adjusted net (loss)
/ earnings(1) ($9,492) ($5,484) ($37,968) $13,052
Adjusted net (loss)
/ earnings per share, basic(1) ($0.04) ($0.02) ($0.15) $0.05
Net loss ($108,259) ($106,412) ($169,648) ($176,770)
Net loss, basic ($0.43) ($0.43) ($0.68) ($0.71)
Adjusted operating cash flow(1) $18,367 $17,508 $64,709 $78,079
Adjusted operating cash
flow, per share(1) $0.07 $0.07 $0.26 $0.31

(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 Dec. 31, 2014 Quarter Ended Dec. 31, 2013
Young- Young-
Davidson El Chanate Total Davidson El Chanate Total
Gold ounces produced 40,945 15,638 56,583 29,597 16,420 46,017
Gold ounces produced,
pre-commercial
production(3) - - - 3,509 - 3,509
Total gold ounces
produced 40,945 15,638 56,583 33,106 16,420 49,526
Underground
cash costs per
ounce(1)(2)(4) $656 - $656 $663 - $663
Open pit cash
costs per
ounce(1)(2)(4) $994 $816 $873 $983 $615 $812
Total cash costs per
ounce(2)(4) $719 $816 $746 $850 $615 $771
Twelve Months Ended Dec. 31, 2014 Twelve Months Ended Dec. 31, 2013
Young- Young-
Davidson El Chanate Total Davidson El Chanate Total
Gold ounces produced 156,753 67,279 224,032 89,236 71,864 161,100
Gold ounces produced,
pre-commercial
production(3) - - - 31,502 - 31,502
Total gold ounces
produced 156,753 67,279 224,032 120,738 71,864 192,602
Underground
cash costs per
ounce(1)(2)(4) $719 - $719 $663 - $663
Open pit cash
costs per
ounce(1)(2)(4) $1,071 $669 $839 $757 $592 $677
Cash costs per
ounce(2)(4) $825 $669 $779 $744 $592 $676

(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 22 of the Management's
Discussion and Analysis for the three and twelve months ended December 31, 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 twelve months ended December 31, 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 were calculated using gold ounces sold at the
El Chanate mine and gold ounces produced at the Young-Davidson mine.

Recent Highlights

- On January 21, 2015 the Company released an initial resource Kemess East
of 5.5 million gold equivalent ounces that is comprised of indicated resource of 2.1
million gold equivalent ounces and an inferred resource of 3.4 million gold equivalent
ounces. The Kemess East discovery (refer to press release dated December 15, 2014) is
located one kilometre east of the previously delineated Kemess Underground deposit and
6.5 kilometres north of the existing Kemess mill facility. Combined with the Kemess
Underground reserves and resources, the entire Kemess Property resource has doubled to
10.6 million gold equivalent ounces.
- On January 14, 2015, the Company completed a revised agreement with Crocodile
Gold ("Crocodile"), whereby AuRico received a C$20 million upfront payment and was
granted a net smelter return royalty of 2% from Crocodile's Fosterville Gold Mine
beginning in 2015 and 1% from Crocodile's Stawell Gold Mine beginning in 2016.
- On November 11, 2014, the Company announced a joint venture strategic
partnership with Carlisle Goldfields ("Carlisle") in the Lynn Lake Gold Camp ("Lynn
Lake"). Under the joint venture agreement the Company has acquired a 25% interest in
Lynn Lake for an initial cash contribution of C$5 million and can earn up to a 60%
interest by funding C$20 million on the project over a three-year period and
delivering a feasibility study within that time period. The transaction represents a
low risk opportunity to participate in the early stage advancement of a highly
prospective mining district in Canada.

Young-Davidson Highlights

- At the end of the year, the Young-Davidson mine had achieved a record 21
months of lost time incident free operations.
- Production of 40,945 gold ounces for the quarter represented the eleventh
consecutive quarter of record gold production. For 2014, the Young-Davidson mine
produced 156,753 gold ounces, representing the high-end of the Company's annual
production guidance estimates. The operation expects to deliver period-over-period
production increases going forward as the underground mine ramps-up to year-end
targeted levels at the end of 2016.
- Underground cash costs for the quarter were $656 per gold ounce, consistent
with the prior quarter and primarily driven by increased production, lower unit
processing costs and lower underground unit mining costs. For 2014, underground cash
costs were $719 per gold ounce, in-line with the Company's annual guidance levels.
- During the quarter, underground mine productivity exceeded year-end target
levels and averaged approximately 4,140 tonnes per day (4,214 tonnes per day in
December) at grades in-line with reserve grade estimates. With underground
productivity remaining ahead of target, the operation is well positioned to achieve
the 2015 year-end target of 6,000 tonnes per day and an ultimate productivity level of
8,000 tonnes per day at the end of 2016.
- Underground unit mining costs declined to approximately $39 per tonne in the
fourth quarter, exceeding the year-end target of $40 per tonne.
- Approximately 3,438 metres of underground development advance were completed
during the quarter and 14,024 metres for the year, which is at the high end of planned
levels. The Company will continue to focus on advancing underground development to
best position the mine for sustainable, period-over-period, productivity increases in
2015 and beyond.
- During the quarter, the mill facility averaged 7,757 tonnes per day with
recoveries of 88%, in-line with targeted levels.
- Approximately 2.5 million tonnes of open pit ore, at an average grade of
approximately 0.75 grams per tonne, is stockpiled ahead of the mill facility for
future processing. As the related mining costs associated with the open pit stockpile
were expended in prior periods, the processing of this ore will favourably augment the
mine's free cash flow profile going forward. The open pit stockpile will continue to
supplement underground ore feed to the mill processing facility as the underground
mine ramps up to targeted levels and the remaining stockpile will be processed at the
end of the mine life.

El Chanate Highlights

- During the quarter, the open pit mining rate averaged 89,602 tonnes per
day.
- During the quarter the operation produced 15,638 gold ounces. For 2014, the
mine produced 67,279 ounces of gold, slightly below 2014 operational guidance
estimates.
- During the quarter, cash costs were $816 per gold ounce. For 2014, cash costs
were $669 per gold ounce, in-line with 2014 operational guidance estimates.

"In 2014, we continued to deliver on our commitment to operational
excellence and shareholder value creation. We delivered another year
of production growth and declining costs at our cornerstone
Young-Davidson mine, which underpinned the asset's transition to net
free cash flow status in the fourth quarter where the operation
reported an impressive $9 million in net free cash flow," stated
Scott Perry, stated President and Chief Executive Officer. He
continued, "In 2015, we will continue to focus on positioning the
Company as a low cost, high margin operation with an organic growth
profile and an expanded portfolio of quality properties located in
the leading jurisdictions of Canada and Mexico."

Adjusted Net Earnings Reconciliation

Quarter Ended Quarter Ended
(in thousands, except per share metrics) Dec. 31, 2014 Dec. 31, 2013
Net loss ($108,259) ($106,412)
Adjustments:
Deferred income tax expense
related to foreign exchange $14,128 $12,826
Foreign exchange losses 2,017 3,223
Loss on retained interest
royalty 3,033 -
Net realizable value
adjustments on inventory 16,437 37,196
Impairment charges 91,006 59,886
Gain on option component of
convertible notes - (772)
Unrealized loss on contingent
consideration - 483
Impact of new Mexican mining
tax - 4,917
Other (including tax effect of
adjustments) (27,854) (16,831)
Adjusted net loss ($9,492) ($5,484)
Adjusted net loss, per share ($0.04) ($0.02)
Twelve Months Ended Twelve Months Ended
(in thousands, except per share metrics) Dec. 31, 2014 Dec. 31, 2013
Net loss ($169,648) ($176,770)
Adjustments:
Deferred income tax expense
related to foreign exchange $16,913 $9,783
Foreign exchange loss / (gain) 5,238 4,289
Loss on retained interest
royalty 10,825 -
Net realizable value
adjustments on inventory 23,534 42,069
Impairment charges 91,622 158,574
Gain on transfer of litigation
claim (3,177) -
Loss on convertible notes
tender offer 15,645 -
Corporate restructuring costs 2,716 -
Unrealized and realized (gain)
/ loss on investments (6,589) -
Gain on option component of
convertible notes - (15,622)
Unrealized gain on derivatives - (2,071)
Unrealized loss on contingent
consideration - 7,395
Impact of new Mexican mining
tax - 4,917
Other (including tax effect of
adjustments) (25,047) (19,512)
Adjusted net (loss) / earnings ($37,968) $13,052
Adjusted net (loss) / earnings, per share ($0.15) $0.05

Adjusted Operating Cash Flow Reconciliation

(in thousands, except per share metrics) Quarter Ended Quarter Ended
Dec. 31, 2014 Dec. 31, 2013
Operating cash flow $28,486 $11,954
Add back: Non-cash change in operating working
capital (10,119) 5,554
Adjusted operating cash flow $18,367 $17,508
Adjusted operating cash flow, per share $0.07 $0.07
Twelve Months Twelve Months
(in thousands, except per share metrics) Ended Ended
Dec. 31, 2014 Dec. 31, 2013
Operating cash flow $60,414 $63,266
Add back: Non-cash change in operating working
capital 4,295 14,813
Adjusted operating cash flow $64,709 $78,079
Adjusted operating cash flow, per share $0.26 $0.31

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

(in thousands) Quarter Ended Quarter Ended
Dec. 31, 2014 Dec. 31, 2013
EBITDA ($87,309) $80,069
Add back:
Exploration 17 20
Non-cash items identified in
supplemental cash flow note, excluding
amortization and depletion, and deferred
income tax expense / recovery 108,434 95,228
Adjusted EBITDA $21,142 $15,179
(in thousands) Twelve Months Ended Twelve Months Ended
Dec. 31, 2014 Dec. 31, 2013
EBITDA ($43,960) ($103,213)
Add back:
Exploration 77 41
Non-cash items identified in
supplemental cash flow note, excluding
amortization and depletion, and deferred
income tax expense / recovery 129,803 196,986
Adjusted EBITDA $85,920 $87,814

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 22
of the Company's Management's Discussion and Analysis for the three
and twelve months ended December 31, 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 losses on investments, corporate
restructuring costs, losses on the retained interest royalty and
convertible notes tender offer, impairment charges, gain on the
transfer of a litigation claim, net realizable value adjustments on
inventory, 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").

Q4 2014 Dividend Declared

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 February 19, 2015, the Board
of Directors declared the Company's quarterly dividend payment of
$0.023 per share for the fourth quarter ended December 31, 2014,
payable on March 16, 2015 to shareholders of record at the close of
business on March 2, 2015.

Dividend Reinvestment Plan Highlights

The Company implemented a Dividend Reinvestment Plan ("DRIP" or
"the Plan") on June 11, 2013 that provides a convenient and
cost-effective way for eligible shareholders to acquire additional
common shares ("shares") of the Company by reinvesting cash dividends
paid on their shareholdings. Highlights of the Plan include:

- Shares issued under the Plan from the treasury of the Company may be
issued at a discount not to exceed 5% from the average market price of the shares over
the five day period preceding the relevant dividend payment date as further described
in the Plan. The current discount has been set at 5% and shall apply until further
notice by press release.
- Brokerage commissions and administrative costs for the shares issued under the
Plan will be borne by the Company and not the registered shareholder, however
beneficial shareholders may incur fees in respect of services provided by their
nominee.
- Shares distributed under the Plan will, at the option of the Company, be
purchased by the Plan agent from the treasury of the Company or in the open market on
the New York Stock Exchange, or a combination of both.

A copy of the Plan is available on the Company's website at
http://www.auricogold.com/DRIP.

Webcast and Conference call

A webcast and conference call will be held on Friday, February 20,
2015 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 Fourth Quarter
and Year-End 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/1470369/1636711.

Archive Call Access

If you are unable to attend the conference call, a replay will be
available until midnight, February 27, 2015 by dialing the
appropriate number below:

- International & Toronto: 1-416-849-0833 Passcode: #64802471
- Canada & U.S. Toll Free: 1-855-859-2056 Passcode: #64802471

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/1470369/1636711.

About AuRico Gold

AuRico Gold is a leading Canadian gold producer with mines and
projects in North America that have significant production growth and
exploration potential. The Company is focused on its core operations
including the cornerstone Young-Davidson gold mine in northern
Ontario, and the El Chanate mine in Sonora State, Mexico. AuRico's
project pipeline also includes the advanced development Kemess
Property in northern British Columbia and the Lynn Lake Gold Camp in
northern Manitoba. The Company also has other exploration
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 , "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, free cash flow, cash costs, capital
investment estimates, 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 expenditure levels, 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 appropriate regulatory
authorities; 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.

In particular, forward-looking information included in this
document includes, but is not limited to: (1) production estimates
and production growth rates, which assume accuracy of projected ore
grade, mining rates, recovery timing and recovery rate estimates and
may be impacted by unscheduled maintenance, labour and contractor
availability; (2) capital expenditures and other cash costs, which
assume foreign exchange rates and accuracy of production estimates,
and may be impacted by unexpected maintenance, the need to hire
external resources and accelerated capital plans; (3) profits and
free cash flow, which assume production and expenditure estimates and
may be impacted by gold prices, production estimates, and the timing
of payments, and (4) reserves and resources which are forward looking
statements by their nature involving implied assessment, and may be
impacted by metal prices, future drilling results, operating costs,
mining recoveries and dilution rates.

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/2015/02/19/2015
0219_C9745_DOC_EN_43380.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

ots Originaltext: AuRico Gold Inc.
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