Mr. Fred Stanford reports

TOREX ANNOUNCES 2018 YEAR END FINANCIAL AND OPERATIONAL RESULTS WITH RECORD GOLD PRODUCTION

Torex Gold Resources Inc. has released its financial results for the year ended Dec. 31, 2018. All amounts are expressed in U.S. dollars unless otherwise stated.

Fred Stanford, president and chief executive officer of Torex, stated: "Two thousand eighteen is now in the record books and it left some memories. Most of the memories are very good. Excellent safety and environmental performance, record production, Subsill ramped up, SART plant ramp-up, successful exploration at Subsill and ELD, successful infill drilling at Media Luna, and rapid advance of the Muckahi technology. A couple of experiences weren't quite so fulfilling. Hopefully, this is the last time I ever use the word blockade in a press release and we didn't quite get to design levels in the processing plant (93 per cent). We could spend capex to close the gap, but don't see it as a good investment since the future underground ores are softer and don't need the capacity that the investment would produce. We'll diligently work on the last 7 per cent the old-fashioned way, with continuous improvement in operations and maintenance practices. Life will continue, if it takes a bit longer to get there. A year of operating at 93 per cent adds a month to the six-year mine life of the open pits, which in effect, delays the need for the investment in the replacement underground ores.

"With a strong foundation of a splendid asset and team, and the potential of a proprietary game-changing technology, we have lifted our eyes to the horizon and like what we see. The Morelos property has already delivered the ELG open pits, Subsill, Media Luna and ELD, and most of the property remains unexplored. There is tremendous potential to develop new brownfield ore sources to take advantage of the infrastructure investments already made. We also have an interest in diversifying our single-asset risk. If proven successful in 2019, the Muckahi technology will reduce the costs of future underground mining on the Morelos property and will provide us with a competitive advantage when bidding on potential acquisitions and pursuing other options for commercial deployment. The testing program for the Muckahi technology is expected to be completed in 2019. The first of four Muckahi machines is on site in Mexico and we anticipate breaking rock with it in the next couple of months. As the other machines arrive, we will incorporate them into the test program. In the meantime, we will continue to add value with the drill bit, optimize our processes, generate free cash flow from the open pits and continue to develop the safety culture. These are interesting and exciting times at Torex/MML."

This release should be read in conjunction with the company's Dec. 31, 2018, financial statements and MD&A (management's discussion and analysis) on the company's website or on SEDAR.

Highlights:

• Record gold production at the top end of guidance was 353,947 ounces. Gold production in the quarter totalled 96,316 ounces.
• Mine production in the quarter totalled 11,299,000 tonnes, averaging 122,815 tonnes per day. Mine production for the year totalled 32,625,000 t, averaging 93,214 tpd.
• Mine ore production in the quarter totalled 1,234,000 t, averaging 13,413 tpd. Mine ore production for the year totalled 4,329,000 t, averaging 12,368 tpd.
• Grade mined in the quarter averaged 2.76 grams per tonne, and 2.69 g/t for the year.
• Plant throughput continued to accelerate in the quarter achieving 1,197,000 t, averaging 13,011 tpd. Plant throughput in the year was 4,152,000 t, averaging 11,863 tpd.
• Grade processed in the quarter averaged 2.93 g/t and 2.97 g/t for the year.
• Gold recovery averaged 85 per cent in the quarter and 87 per cent in the year, consistent with design expectations.

Initial results from the Media Luna infill diamond drilling program:

• Highlighted intercepts from the first 23 holes include 10.5 g/t gold equivalent (AuEq) over 39.2 m in borehole ML18-222A, 7.0 g/t AuEq over 49.6 m in borehole ML18-215, 7.1 g/t AuEq over 45.9 m in borehole ML18-219W and 8.3 g/t AuEq over 22.6 m in borehole ML18-208W.
• There are currently six drills active on the Media Luna project. On average each drill completes two holes per month, which indicates completion of the program by the end of 2019.

Continued exploration success in the Subsill zone:

• The company announced the results from 57 holes, from its infill and stepout drilling programs in the Subsill zone. Highlighted intercepts include 30.2 g/t Au over 8.1 m in borehole SST-101, 48.9 g/t Au over 3.6 m in borehole SST-118 and 34.4 g/t Au over 4.6 m in borehole SSUG-059. The deposit remains open in several directions.

Muckahi 3:

• Initial components have arrived on site and significant testing of the Muckahi mining system is expected to be completed by the end of 2019.

Financial results:

• Record gold sold for the year was 347,640 ounces for total proceeds of $438.3-million at an average realized gold price of $1,261 per ounce. Gold sold for the quarter was 104,169 ounces for proceeds of $128.6-million at an average realized gold price of $1,235 per ounce.
• Revenue was $130.7-million and cost of sales was $96.5-million, or $926 per ounce of gold sold for the quarter. Revenue was $442.9-million and cost of sales was $334.7-million, or $963 per ounce of gold sold for the year.
• Earnings from mine operations were $34.2-million for the quarter and $108.2-million for the year.
• Income before income tax was $20.4-million for the quarter and $60.4-million for the year.
• Net income after current and deferred income tax expense was $1.4-million or two cents per share on a basic and diluted basis for the quarter, and $23.2-million, or 27 cents per share on a basic and diluted basis for the year. The weakening of the peso adversely impacted deferred tax expense for the quarter.
• Adjusted net earnings, which excludes, among other items, foreign exchange gains and losses, totalled $13.9-million, or 16 cents per share on a basic and diluted basis for the quarter, and $19.7-million, or 23 cents per share on a basic and diluted basis for the year.
• Cash flow from operations totalled $59.3-million for the quarter, and $226.8-million for the year.
• Cash balances as at Dec. 31, 2018, totalled $149.0-million (including restricted cash of $26.8-million).
• Total cash costs per ounce of gold sold of $627 for the quarter, and $646 for the year ended Dec. 31, 2018.
• All-in sustaining costs per ounce of gold sold were $926 for the quarter and $964 for the year ended Dec. 31, 2018.
• Principal repayments of $15.0-million in the quarter and $56.3-million in the year were made to reduce the debt facility to $333.5-million.
• The company passed the operating covenants for the six months ended Dec. 31, 2018. There are no further operating covenants under the debt facility, which makes it less constricted, and provides the company with alternatives for redirecting the restricted cash balance.

Qualified persons

Scientific and technical information contained in this news release has been reviewed and approved by Clifford Lafleur, PEng, director, technical services, of Torex Gold Resources, and a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Conference call

The company will host a conference call today at 9 a.m. Eastern Time where senior management will discuss the 2018 operational and financial results. Access the conference call as follows:

Webcast access:  a live audio webcast of the conference call will be available on the company's website

Telephone access:   please call the numbers below approximately 10 minutes prior to the scheduled start of the call

Toronto local or international:   1-416-915-3239

Toll-free (North America):   1-800-319-4610

Toll-free (France):   0-800-900-351

Toll-free (Switzerland):  0-800-802-457

Toll-free (United Kingdom):   0-808-101-2791

The webcast will be archived on the company's website.

About Torex Gold Resources Inc.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100-per-cent-owned Morelos gold property, an area of 29,000 hectares in the highly prospective Guerrero gold belt located 180 kilometres southwest of Mexico City. The company's principal assets are the El Limon Guajes mining complex, comprising the El Limon, Guajes and El Limon Sur open pits, the El Limon Guajes underground mine including zones referred to as Subsill and El Limon Deep, and the processing plant and related infrastructure, which are in the commercial production stage as of April 1, 2016, and the Media Luna deposit, which is an early-stage development project, and for which the company issued an updated preliminary economic assessment in September, 2018. The property remains 75 per cent unexplored.

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