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,