AuRico Metals Receives Environmental Assessment Approval for Kemess Underground Project

Toronto (ots/PRNewswire) -

AuRico Metals Inc. (TSX: AMI),("AuRico" or the "Company") is
pleased to report that the Canadian Environmental Assessment Agency
("CEAA") has issued a positive Decision Statement and that the
British Columbia Environmental Assessment Office ("EAO") has granted
an Environmental Assessment Certificate for the Company's
wholly-owned Kemess Underground Project ("the Project").

Chris Richter, President and CEO of AuRico stated, "These positive
decisions are the culmination of a comprehensive process which began
in 2014, and I would like to thank the many people who worked
tirelessly to achieve this successful outcome. We would not be where
we are today if it were not for the hard work of the AuRico Metals
team and our consultants, along with the extensive efforts and close
cooperation from our First Nations partners, the EAO, and CEAA. The
Tsay Keh Dene, Kwadacha, and Takla Lake First Nations, collectively
Tse Keh Nay, provided letters of support to Federal and Provincial
Ministers for Environmental Assessment approval and we are proud to
have their support."

"The Kemess Underground Project presents an attractive development
opportunity given its strong economics - supported by existing
infrastructure, large scale, good jurisdiction, and advanced stage.
Today's environmental approval represents a significant milestone for
the Project, and we are excited about the opportunity to continue to
advance the Project to the benefit of all stakeholders."

The EAO managed the Environmental Assessment for the Kemess
Underground Project in a Substituted Process on behalf of British
Columbia and CEAA, the latter of which is on behalf of the Federal
Government of Canada. The Project will require a number of additional
normal course licenses and permits which are expected to be received
early in 2018.

About the Kemess Underground Project

The Kemess Underground Project is a large gold-copper development
project located in north-central British Columbia. The Kemess South
open pit mine operated successfully between 1998 and 2011 and
produced approximately 3 million ounces of gold and 750 million
pounds of copper. Production ceased when the open pit was depleted.

The Kemess Underground deposit is located approximately 6
kilometres north of the existing Kemess South processing plant.
Additional existing infrastructure includes a camp, powerline,
all-weather air-strip, access road, as well as other surface
facilities including an administrative building, workshop and
warehouse. In total, there is approximately C$1 billion worth of
existing infrastructure in place.

AuRico published a Feasibility Study for the Kemess Underground
Project in March 2016 that contemplates the development of a low-cost
panel caving operation with an initial 12-year mine life. Ore would
be transported by conveyor to the existing processing facilities,
with concentrate transported to a wholly-owned concentrate load-out
facility located in Mackenzie, British Columbia.

The Feasibility Study demonstrates that Kemess Underground is a
robust project benefiting from extensive existing infrastructure. The
Feasibility Study anticipates total life of mine production of 2.6
million gold-equivalent ounces[1] (consisting of 1.4 million ounces
of gold, 573 million pounds of copper and 4.5 million ounces of
silver). Gold-equivalent production for the first five years is
expected to average 238koz per annum and 207koz per annum over the
life of mine, with a low All-In Sustaining Cost of US$682/oz over the
first five years and US$718/oz over the life of mine. Total up-front
capital expenditure for the Project is estimated at US$452 million
with a payback period estimated at 3.3 years.

The Company also has a 100% interest in the Kemess East deposit,
located 1km east of Kemess Underground. In January, 2017, the Company
released an updated resource estimate for Kemess East outlining
Indicated Resources of 113.1 million tonnes grading 0.38% Cu and 0.46
g/t Au and Inferred Resources of 63.8 million tonnes grading 0.34% Cu
and 0.31 g/t Au. The resource includes a higher grade core estimated
to contain Indicated Resources of 67.2 million tonnes grading 0.43%
Cu and 0.60 g/t Au as well as Inferred Resources of 15.2 million
tonnes grading 0.41% Cu and 0.51 g/t Au. The Kemess East deposit
remains open to the south, north and west.

About AuRico Metals

AuRico Metals is a mining development and royalty company with a
100% interest in the Kemess property in British Columbia, Canada. The
Kemess property hosts the feasibility-stage Kemess Underground
Gold-Copper Project, the Kemess East Exploration Project, and the
infrastructure pertaining to the past producing Kemess South mine.
AuRico's royalty portfolio includes a 1.5% NSR royalty on the
Young-Davidson Gold Mine and a 2% NSR royalty on the Fosterville
Mine, as well as a portfolio of additional producing and
pre-production royalty assets located in North America and Australia.

Cautionary Statement on Forward-Looking Information

All statements, other than statements of historical fact,
contained or incorporated by reference in this news release
including, but not limited to, any information as to the future
financial or operating performance of AuRico, constitute
"forward-looking information" or "forward-looking statements" within
the meaning of certain securities laws, including the provisions of
the Securities Act (Ontario) and are based on expectations, estimates
and projections as of the date of this news release. Forward-looking
statements contained in this news release include, without
limitation, statements with respect to: our production estimates and
timing thereof; estimated production costs, estimated all-in
sustaining costs and capital expenditures; expected upside
opportunities and de-risking initiatives such as improvements and
modifications to the proposed development and operations, the future
price of gold, copper and silver, the estimation of mineral reserves
and mineral resources, the realization of mineral reserve and mineral
resource estimates, costs and timing of the development of projects
and new deposits, success of exploration, development and mining
activities, permitting timelines, currency fluctuations, requirements
for additional capital, government regulation of mining operations,
and environmental risks. The words "anticipates", "estimates",
"expects", "focus", "forecast", "indicate", "initiative", "intend",
"model", "opportunity", "option", "plans'', "potential", "projected",
"prospective", "pursue", "strategy", "study" (including, without
limitation, as may be qualified by "feasibility" and the results
thereof), "target", "timeline" or variations of or similar such words
and phrases or statements that certain actions, events or results
"may", "could" or "would", and similar expressions identify
forward-looking statements.

Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by AuRico
as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The estimates, models and assumptions of AuRico
referenced in the Feasibility Study, contained in this news release,
which may prove to be incorrect, include, but are not limited to, the
various assumptions set forth herein and in our most recently filed
Annual Information Form and our 2016 Management's Discussion and
Analysis as well as: (1) there being no significant disruptions
affecting the operations of the Company; (2) the exchange rate
between the Canadian dollar and the U.S. dollar being approximately
consistent with assumed levels; (3) certain price assumptions for
gold, copper, silver, diesel and electricity; (4) the results of the
FS (including but not limited to capital estimates) will be realized
within a margin of error consistent with the Company's expectations;
(5) estimated future production and cost of sales forecasts for the
KUG project meeting expectations; (6) the accuracy of the current
mineral reserve and mineral resource estimates of the KUG project as
contemplated by the FS (including but not limited to ore tonnage and
ore grade estimates); (7) estimated labour and materials costs
increasing on a basis consistent with AuRico' current expectations;
(8) the viability of the KUG including, but not limited to,
permitting, development and expansion, being consistent with AuRico'
current expectations; and (9) access to capital markets, including
but not limited to identifying financing options and securing partial
project financing for the KUG project, being consistent with the
Company's current expectations.

Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements.
Such factors include, but are not limited to: suitability and
reliability of existing infrastructure at Kemess, the results of
exploration at Kemess East and the accuracy of the mineral resource
estimates at Kemess East, effectiveness of measures to minimize risks
with respect to KUG; relations with First Nations partners and the
Province of British Columbia; exploration for additional mineral
resource potential; fluctuations in the currency markets; changes in
the market valuations of peer group companies and the Company, and
the resulting impact on market price to net asset value multiples;
changes in various market variables, such as interest rates, foreign
exchange rates, gold, copper or silver prices; changes in national
and local government legislation, taxation, controls, policies and
regulations; the security of personnel and assets; political or
economic developments in Canada, the United States or elsewhere;
business opportunities that may be presented to, or pursued by, us;
operating or technical difficulties in connection with mining or
development activities; employee relations; litigation against the
Company; the speculative nature of mineral exploration and
development including, but not limited to, the risks of obtaining
necessary licenses and permits; diminishing quantities or grades of
reserves; and contests over title to properties. In addition, there
are risks and hazards associated with the business of mineral
exploration, development and mining. Many of these uncertainties and
contingencies can directly or indirectly affect, and could cause,
AuRico' actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of,
AuRico.

There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Forward-looking
statements are provided for the purpose of providing information
about management's expectations and plans relating to the future. All
of the forward-looking statements made in this news release are
qualified by these cautionary statements and those made in our other
filings with the securities regulators of Canada including, but not
limited to, the cautionary statements made in the "Risk Factors"
section of our most recently filed Annual Information Form and 2016
Management Discussion and Analysis. These factors are not intended to
represent a complete list of the factors that could affect AuRico.
AuRico disclaims any intention or obligation to update or revise any
forward-looking statements or to explain any material difference
between subsequent actual events and such forward-looking statements,
except to the extent required by applicable law.

[1] Gold Equivalent converts copper and silver production to gold
equivalent production based on revenue assuming metal prices of
US$1,250/oz Au, US$2.50/lb Cu, and US$16/oz Ag.

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

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