AuRico Metals Provides Update on Royalties

Toronto (ots/PRNewswire) -

AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is
pleased to provide an update on its royalty portfolio following the
release of relevant information by the operators of the underlying
mines and projects. Based on production results released to date,
AuRico expects 2016 royalty revenue to be at the high end of the
Company's guidance range of $7.7 - $8.1 million. All amounts are in
United States dollars, unless otherwise indicated.

Young-Davidson (1.5% NSR Royalty)

On January 6, 2017 Alamos Gold announced 2016 production of
170,000 ounces of gold at Young-Davidson, including 44,662 ounces in
the fourth quarter. Underground mining rates increased to average a
record of over 6,600 tonnes per day ("tpd") in the fourth quarter,
and averaged over 7,000 tpd in December, consistent with the year-end
target.

Gold production at Young-Davidson is forecast to be between
200,000 and 210,000 ounces in 2017, which would result in an increase
of 18% to 24% relative to 2016. Underground mining rates are expected
to increase from an average rate of approximately 6,000 tpd in 2016,
to a range of between 6,500 and 7,500 tpd in 2017. Total cash costs
are expected to average $625 per ounce of gold sold and mine-site
all-in sustaining costs are expected to average $775 per ounce, more
than a 10% decrease from 2016 levels.

For more information, visit the Alamos Gold website at
http://www.alamosgold.com and see the press release dated January 6,
2017.

Fosterville (2% NSR Royalty) and Stawell (1% NSR Royalty)

On November 30, 2016 Kirkland Lake Gold ("Kirkland") announced the
completion of the business combination with Newmarket Gold, forming a
new mid-tier gold company. On January 9, 2017 Kirkland announced
record annual gold production at Fosterville of 151,755 ounces for
2016 based on a record average grade of 7.55 g/t and a record
recovery of 90.1%. The company also achieved a quarterly record
performance in Q4 2016 with production of 44,406 ounces of gold,
based on a record average grade of 8.48 g/t Au and record recovery of
92.4% at Fosterville.

Fosterville's strong Q4 2016 performance resulted in quarterly
production rates increasing by 20% over Q3 2016 levels, and 42% over
Q4 2015 production levels. For 2017, Kirkland has reported production
guidance at Fosterville of 140,000 - 145,000 ounces gold.

At year end, there were nine rigs in operation at Fosterville
drilling a combination of exploration and resource definition
programs. On January 17, 2017 Kirkland announced high grade
mineralization at depth on the Lower Phoenix Footwall system,
including the highest result ever returned from the Fosterville Mine,
with the return of the following drill intercepts:

- 1,429 g/t Au over 15.15m, including 21,490 g/t Au over 0.6m
- 356 g/t Au over 7.2m, including 1,339 g/t Au over 1.85m
- 83.9 g/t Au over 3.5m, including 234 g/t Au over 0.65m

Also, the high grade Eagle fault system has been extended down
plunge with a recent drill intercept returning:

- 15.97 g/t Au over 11.35m, including 195 g/t Au over 0.45m

Kirkland is expected to provide an update on Mineral Reserves and
Resources in Q1 2017.

At Stawell, 2016 gold production totaled 32,204 ounces. The
operation commenced transitioning to care and maintenance on December
13, 2016 with the mine to be maintained in a state of operational
readiness to possibly recommence operations pending exploration
success.

For more information, visit the Kirkland website at
http://www.klgold.com and see the press releases dated January 17,
2017 and January 9, 2017.

Hemlo (0.25% NSR Royalty on Williams Mine, and 0.5% NSR on David
Bell Property)

Barrick Gold is expected to announce fourth quarter results on
February 15, 2017. Barrick Gold's 2016 production guidance for Hemlo
is 215,000 to 230,000 ounces at all-in sustaining cash costs of
$830-$880 per ounce.

Barrick Gold has previously announced plans to spend approximately
$8.0 million in exploration at Hemlo in 2016.

For more information, visit Barrick Gold's website at
http://www.barrick.com

Eagle River (0.5% NSR Royalty)

On January 17, 2017 Wesdome Gold Mines ("Wesdome") provided 2016
production results of 40,252 ounces of gold from the Eagle River
Underground Mine. For 2017, gold production at the Eagle River
Underground Mine is expected to increase by approximately 12% - 22%
to between 45,000 and 49,000 ounces at grades of 8.8 - 9.2 g/t gold.

Exploration spending for 2017 is expected to be approximately
C$3.0 million resulting in a total of 40,000 meters drilled.

For more information, visit Wesdome's website at
http://www.wesdome.com and see the press release dated January 17,
2017.

GJ Property (0.98% NSR Royalty)

On November 10, 2016 AuRico completed an acquisition from NGEx
Resources Inc. of a 0.98% NSR royalty and 0.49% NSR royalty on Skeena
Resources Limited's ("Skeena") GJ Block property and GJ Northern
Block property respectively.

On December 12, 2016 Skeena reported the commencement of a NI
43-101 Preliminary Economic Assessment ("PEA") on the Spectrum-GJ
Project which is expected to be released in Q2 2017 and which will
include an updated NI 43-101 mineral resource estimate that
incorporates results from Skeena's 2016 definition drilling program.

In 2016, 2,872 metres were drilled in 8 holes at the GJ Donnelly
Deposit with several holes successfully extending the mineralized
zone to depth, with gold and copper values higher than the current
average mineral resource grades.

For more information, visit Skeena's website at
http://www.skeenaresources.com and see the press release dated
December 12, 2016.

Red Lake and Madsen Area Properties (1% NSR Royalty)

On November 29, 2016 AuRico partnered with Abitibi Royalties Inc
and acquired a 1% NSR on several early stage exploration projects in
the Red Lake district.

Kiska Metals Acquisition Update

As previously announced on December 22, 2016 AuRico entered into a
definitive arrangement agreement to acquire all of the issued and
outstanding securities of Kiska Metals Corporation ("Kiska"). The
acquisition would provide AuRico with a further six existing
royalties including royalties on the East Timmins and Boulevard
properties operated by Kirkland Lake Gold and Independence Gold,
respectively. In addition, Kiska's six wholly-owned exploration
projects would present organic royalty creation opportunities and are
expected to further enhance AuRico's existing high quality royalty
pipeline.

The transaction is subject to customary closing conditions and
approvals and is expected to close later in the first quarter.

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 Metals owns (100%) the advanced Kemess Gold-Copper Project in
British Columbia, Canada. AuRico Metals' head office is located in
Toronto, Ontario, Canada.

Cautionary Statement on Forward-Looking Information

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 12 months. 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, the
future price of gold, the estimation of mineral reserves and
resources, realization of mineral reserve estimates, and the timing
and amount of estimated future production.

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; credit market conditions and conditions in
financial markets generally; the accuracy of reserve and resource
estimates; the impact of changes in currency exchange rates on costs
and results; interest rates; and taxation. 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.

Please visit the AuRico Metals website at
http://www.auricometals.ca or contact: Chris Richter, President and
Chief Executive Officer, AuRico Metals Inc., +1-416-216-2780,
chris.richter@auricometals.ca; John Miniotis, Vice President,
Corporate Development, AuRico Metals Inc., +1-416-216-2780,
john.miniotis@auricometals.ca

ots Originaltext: AuRico Metals Inc.
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