AuRico Metals Reports 2016 First Quarter Results

Toronto (ots/PRNewswire) -

AuRico Metals Inc. (TSX: AMI),("AuRico" or the "Company") today
reported its financial results for the quarter ended March 31, 2016.
For complete details of the Financial Statements and associated
Management's Discussion and Analysis for the quarter ended March 31,
2016, please see the Company's filings on SEDAR
(http://www.sedar.com) or the Company's website
(http://www.auricometals.ca). All amounts are in US dollars unless
otherwise indicated.

Recent Highlights

- During Q1 2016, recognized royalty revenue of $1.7 million,
comprised of $0.7 million from the Young-Davidson royalty, $0.7
million from the Fosterville royalty and $0.3 million from the
Hemlo, Eagle River and Stawell royalties. The Company re-confirms
its 2016 royalty revenue guidance of $6.6 million to $7.1 million;
- During Q1 2016, Newmarket announced that the reserves associated
with the Company's Fosterville royalty increased by 34%, after
depletion, and total Measured & Indicated resources increased by 5%
as at December 31, 2015;
- On March 31, 2016, finalized an acquisition credit facility with
Macquarie Group for up to $15.0 million to support potential
royalty acquisitions;
- On March 23, 2016, announced an updated Kemess Underground
feasibility study which confirmed the potential for the development
of a large, low-cost panel caving operation;
- On March 23, 2016, announced an updated Kemess East mineral
resource which included a high grade core estimated to contain
Indicated Resources of 19.2 million tonnes grading 0.47% copper and
0.72 gold grams per tonne as well as Inferred Resources of 31.7
million tonnes grading 0.45% copper and 0.63 gold grams per tonne;
- On March 4, 2016, the Company submitted its EA application for the
Kemess Underground project. On April 25, 2016, the Company
announced that the EA application had been screened and formally
accepted;
- Reported $7.2 million in cash and $5.8 million in working capital,
excluding inventories, as at March 31, 2016; and
- On April 14, 2016, completed a $1.6 million (C$2.0 million) CDE
("Canadian Development Expenses") flow-through financing with the
issuance of 2.5 million shares at C$0.80 per share. Proceeds are to
be spent on eligible expenditures at the Company's Kemess
Underground project during the remainder of 2016.

Commenting on the results, Chris Richter, President and CEO
stated, "Developments in the first quarter demonstrate the deep and
growing value of AuRico Metals. All of the assets underlying our five
producing royalties have seen their reserves increase and we expect
to see growing production from this portfolio over the course of the
year. Having secured a $15M acquisition line of credit, we continue
our efforts to identify quality opportunities to grow our royalty
portfolio." Chris continued, "Kemess is a stand-out development
opportunity and during the quarter we were excited to release the
results of a positive Feasibility Study update outlining the
potential to produce 238,000 gold equivalent ounces per year at
all-in sustaining costs of $682 per ounce over the first five years
of commercial production. Further potential exists at Kemess East and
as part of the resource update we released during the quarter we were
pleased to highlight the identification of a high grade core to the
deposit - which remains open in several directions. Earlier this week
we announced that the EA application for Kemess Underground had been
formally accepted for review and we look forward to advancing
permitting efforts this year."

Operations Update

Royalties

From inception of the Company until March 31, 2016, the Company
recognized $4.7 million in royalty revenue while the net asset values
of its royalties continue to increase due to expected mine life
extensions. During Q1 2016, the Company recognized revenues from the
following royalties:

- Young-Davidson 1.5% NSR royalty - $0.7 million;
- Fosterville 2% NSR royalty - $0.7 million;
- Hemlo 0.25% NSR royalty - $0.1 million;
- Eagle River 0.5% NSR royalty - $0.1 million; and
- Stawell 1% NSR royalty - $0.1 million.

During the first quarter of 2016, all of the operators of the
Company's royalty assets, with the exception of the non-producing Big
Hill project at Stawell, announced increases in reserves after mining
depletion. This demonstrates the quality of the Company's royalty
portfolio, as the mine lives underlying these royalties continue to
extend.

During Q1 2016, the Company recognized revenue of $0.7 million
from the Young-Davidson 1.5% NSR royalty. Alamos has provided gold
production guidance at Young-Davidson of 170,000 to 180,000 ounces of
gold in 2016. Young-Davidson continues to replace reserves, as total
reserves increased by 74,000 ounces, net of depletion, to 3.84
million ounces at December 31, 2015. This marks the fifth consecutive
year of reserve replacement at Young-Davidson (please refer to press
releases dated January 15, 2016 and March 24, 2016 available at
http://www.sedar.com, and on Alamos' website at
http://www.alamosgold.com).

The Company recognized revenue of $0.7 million from the
Fosterville 2% NSR royalty in the three months ended March 31, 2016.
In Q1 2016, Fosterville announced another record quarter, producing
33,138 ounces at a mill grade of 7.34 grams per tonne gold. Newmarket
has provided gold production guidance of 110,000 to 120,000 ounces at
Fosterville in 2016. Fosterville reserves increased 34% to 244,000
ounces, after depletion, and measured and indicated resources
increased 5% to 2.12 million ounces of gold at December 31, 2015.
Contributing to the increase in reserves was a 25% increase in
reserve grade, driven by the addition of the recent Eagle Fault
discovery (please refer to the press releases dated January 18, 2016,
March 21, 2016 and April 12, 2016, available at http://www.sedar.com,
and on Newmarket's website at http://www.newmarketgoldinc.com).

The Company's 1% NSR royalty on the Stawell mine in Victoria,
Australia, commenced on January 1, 2016 in accordance with the NSR
agreement. The Company recognized revenue of $0.1 million from this
royalty in Q1 2016, based on 8,579 ounces of production during the
quarter. Newmarket has provided gold production guidance of 35,000
ounces at Stawell in 2016 (please refer to the press releases dated
January 18, 2016 and April 12, 2016 available at
http://www.sedar.com, and on Newmarket's website at
http://www.newmarketgoldinc.com).

During Q1 2016, the Company recognized revenue of $0.1 million
from its 0.25% royalty on the Williams mine at Hemlo. During the
quarter, Barrick announced a 12% increase in reserves at Hemlo from
820,000 ounces at the end of 2014 to 917,000 at the end of 2015,
after mining depletion. Barrick also announced 2016 production
guidance of 200,000 to 220,000 ounces at Hemlo, of which the Company
expects 70-80% of this production to occur on its royalty lands.
Approximately $8.0 million in exploration expenditures will be spent
at Hemlo in 2016 (please refer to the press release dated February
17, 2016 available at http://www.sedar.com, and on Barrick's website
at http://www.barrick.com).

The Company recognized revenue of $0.1 million from its 0.5% NSR
royalty on the Eagle River underground mine during the three months
ended March 31, 2016. During the quarter, Wesdome announced a 13%
increase in mineral reserves at the Eagle River mine to 300,000
ounces, after mining depletion, and a 112% increase in inferred
mineral resources to 170,000 ounces. Wesdome has also announced plans
to spend C$4.5 million on a 40,000 metre exploration program at Eagle
River to better understand the potential of the recently discovered
300 and 7 parallel zones.

During the quarter, the Company finalized an acquisition credit
facility with Macquarie Group for up to $15.0 million to support
potential royalty acquisitions. The Company will remain selective in
its evaluation of royalty growth opportunities.

Kemess Underground

The Company has completed the Kemess Underground EA application
and provided it to both the BC EAO and its First Nations partners. On
April 25, 2016, the Company announced that the EA application had
been screened and formally accepted for detailed review by the BC
EAO. The Company is making revisions and reformatting the EA
application to integrate the clarifications and additional
information provided by the Company during the screening period. The
EAO will initiate the 180 day review period once the revised
application has been submitted, which is anticipated to occur in
early May. During the review period the Company will respond to
comments and questions as directed by the BC EAO and these will be
incorporated into the final Application. Towards the end of the 180
day review period, the BC EAO will conclude their assessment and
submit their report to both the provincial and federal ministers for
their respective decisions. These decisions must be announced within
45 days of receipt of such reports and are expected in Q4 2016.

Kemess East

The Company currently has planned a $1.7 million drill campaign
for 2016 focused on expanding the high grade core of this deposit,
and converting Inferred resources to Indicated resources.

Near-Term Corporate Objectives

The Company's objectives over the next several months include:

- Evaluate potential royalty acquisition opportunities that are
accretive to the Company's cash flow profile;
- Filing of an updated NI 43-101 technical report, containing both
the Kemess Underground Feasibility Study and the updated Kemess
East Mineral Resource Estimate (early May);
- Progress EA review and permitting efforts at Kemess Underground;
and
- Continue advancement of efforts to reduce care and maintenance
costs at the Kemess site to targeted levels by Q4 2016.

Outlook

AuRico Metals expects to be free cash flow positive in 2017
following the completion of this year's capital and exploration
programs as well as the cost cutting measures being pursued at
Kemess.

About AuRico Metals

AuRico Metals is a mining royalty and development company whose
producing gold royalty assets include a 1.5% NSR royalty on the
Young-Davidson Gold Mine, a 0.25% NSR royalty on the Williams Mine at
Hemlo, and a 0.5% NSR royalty on the Eagle River Mine - all located
in Ontario, Canada. AuRico Metals also has a 2% NSR royalty on the
Fosterville Mine and a 1% NSR royalty on the Stawell Mine, located in
Victoria, Australia. Aside from its diversified royalty portfolio,
AuRico owns (100%) the advanced Kemess Gold-Copper Project in British
Columbia, Canada. AuRico Metals' head office is located in Toronto,
Ontario, Canada.

Cautionary Statement

This press release contains forward-looking statements and
forward-looking information as defined under Canadian and U.S.
securities laws. All statements, other than statements of historical
fact, are, or may be deemed to be, forward-looking statements. The
words "expect", "believe", "anticipate", "will", "intend",
"estimate", "forecast", "budget" and similar expressions identify
forward-looking statements. Forward-looking statements include
statements related to the Company's outlook and key deliverables on
Kemess over the next year. These statements are based on 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 forward-looking statements and the
factors and assumptions underlying them in this document include, but
are not limited to:

- Royalty revenue guidance may be impacted by the performance of the
Young-Davidson, Fosterville, Stawell, Hemlo and Eagle River mines.
Management has based its revenue assumptions on the latest guidance
provided by the operators of these assets, but there is uncertainty
as to whether operators will achieve stated production guidance.
Royalty revenue is also based on an assumed gold price of $1,150
per ounce. The Company's gold price assumption may be inaccurate;
every $50 change in gold price assumption impacts after-tax revenue
by $0.3 million.
- General and administrative expense guidance may be impacted by
changes in foreign exchange rates, employee relations, litigation,
and business opportunities that may be pursued by the Company.
- Care and maintenance expense guidance may be impacted by changes in
foreign exchange rates, progress made on the EA and permitting
efforts, results of the updated feasibility study, availability of
financing, employee relations, electricity rates in British
Columbia, weather in the region surrounding the Kemess site,
equipment reliability, quality of service received by vendors and
consultants, and the price of consumables.
- Kemess underground capital expenditures are at the Company's
discretion and will be impacted by changes in foreign exchange
rates, the number of comments or questions raised by First Nations
partners, working group members, and the general public during the
EA review period, additional studies required in order to address
concerns raised and the results of those studies, the results of
the Company's updated feasibility study, optimization efforts by
management, and credit market conditions and conditions in
financial markets generally.
- The estimates, models and assumptions contained in the Feasibility
Study, which may be impacted by changes in commodity prices and the
exchange rate between the Canadian dollar and US dollar from
assumed levels, estimated future production and cost of sales
forecasts meeting expectations, estimated labour and materials
costs being consistent with the Company's expectations, the
accuracy of current mineral reserve and mineral resource estimates
as contemplated by the Feasibility Study, the viability of Kemess
Underground including, but not limited to, permitting, development
and expansion being consistent with the Company's current
expectations, access to capital markets, including but not limited
to identifying financing options and securing partial project
financing for the Kemess Underground project, being consistent with
the Company's current expectations.
- The estimates, models and assumptions contained in the Kemess East
Mineral Resource estimate, which may be impacted by changes in
commodity prices and the exchange rate between the Canadian dollar
and US dollar from assumed levels, the accuracy of current mineral
resource estimates, as contemplated by the Mineral Resource
estimate, and metallurgical recoveries being consistent with the
Company's current expectations.

The Company has made forward-looking statements relating to
corporate objectives and key deliverables over the next 12 months,
including permitting and the EA, the Company's ability to fund
forecasted cash shortfalls, the Company's ability to create value for
shareholders, sufficiency of working capital for future commitments
and other statements that express management's expectations or
estimates of future performance.

Actual results and developments are likely to differ, and may
differ materially, from those expressed or implied by the
forward-looking statements contained herein. Such statements are
based on a number of assumptions which may prove to be incorrect,
including assumptions about: business and economic conditions;
commodity prices and the price of key inputs such as labour, fuel and
electricity; credit market conditions and conditions in financial
markets generally; development schedules and the associated costs;
ability to procure equipment and supplies and on a timely basis; the
timing and ability to obtain permits and other approvals for projects
and operations including provincial and federal approval of the
environmental application; the ability to attract and retain skilled
employees and contractors for the operations; the accuracy of reserve
and resource estimates; the impact of changes in currency exchange
rates on costs and results; interest rates; taxation; and ongoing
relations with employees and business partners. 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.

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. 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.

Other information

The technical information disclosed in this press release relating
to the Kemess Underground project, Kemess East Mineral Resource and
the Company's Young-Davidson and Fosterville NSR royalties has been
approved by Mr. John Fitzgerald, an officer of the Company, who is a
qualified person within the meaning of National Instrument 43-101.

Chris Richter, President and Chief Executive Officer, AuRico
Metals Inc., +1-416-216-2780, chris.richter@auricometals.ca; David
Flahr, Director, Finance, AuRico Metals Inc., +1-416-216-2780,
david.flahr@auricometals.ca

ots Originaltext: AuRico Metals Inc.
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