AuRico Metals Provides Update on Royalties

TORONTO, January 17, 2017 /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.