Mr. Chris Richter reports

AURICO METALS REPORTS 2015 FOURTH QUARTER AND YEAR-END RESULTS AND PROVIDES 2016 OUTLOOK

AuRico Metals Inc. has released its financial results for the quarter and year ended Dec. 31, 2015. For complete details of the financial statements and associated management's discussion and analysis for the year ended Dec. 31, 2015, please see the company's filings on SEDAR or the company's website. All amounts are in U.S. dollars unless otherwise indicated.

Annual highlights

• Earned royalty revenues of $3.0-million since inception on July 2, 2015.
• Completed the acquisition of Mineral Streams, which is anticipated to add approximately $1.0-million per year in royalty income.
• On Jan. 15, 2016, shareholders confirmed the company's shareholder rights plan.
• Negotiated terms for an acquisition credit facility with Macquarie Group for up to $15.0-million to support potential royalty acquisitions. The credit facility is expected to be finalized in February, 2016.
• Completed a private placement with Alamos for total proceeds of $4.2-million.
• Completed its 2015 exploration program at Kemess east, with 27,719 metres drilled. Highlights included the intersection of 772 metres of 0.465 gram per tonne gold and 0.365 per cent copper (further results below).
• Continued permitting efforts at Kemess underground with the completion of the environmental application and submission of the EA to local first nations in early January, and planned submission to the B.C. Environmental Assessment Office by the end of February, 2016.
• Continued to advance the updated Kemess underground feasibility study which is expected to be released in March, 2016, along with an updated resource estimate for Kemess east.
• Reported $8.4-million in cash and $6.9-million in working capital, excluding inventories, as at Dec. 31, 2015. In January, 2016, an outstanding harmonized sales tax receivable of $1.3-million was received.
• Expect to be free cash flow positive in 2017 following the completion of this year's investments in Kemess and through continuing cost-cutting measures being pursued.

Commenting on the results, Chris Richter, president and chief executive officer, stated: "Since becoming an independent company on July 2 last year, AuRico Metals has made significant progress in growing its royalty business and advancing our wholly owned Kemess gold-copper project in British Columbia. The acquisition of Mineral Streams added two more cash flowing royalties in Canada to our portfolio. At Kemess we completed a significant exploration program in 2015 and with the completion of our environmental assessment application we've significantly advanced the derisking of this asset. We look forward to building on these efforts in 2016 as we look to create value both on the royalty and the development side of the business."

Operations update

Royalties

Subsequent to its effective date of July 2, 2015, the company recognized revenue of $600,000 and $1.3-million from the Young-Davidson 1.5-per-cent NSR royalty in the three months and year ended Dec. 31, 2015. During the fourth quarter of 2015, Young-Davidson produced 44,694 gold ounces, and averaged a record underground mining rate of 5,900 tonnes per day. Total production in 2015 was 160,358 gold ounces at Young-Davidson. Alamos has provided gold production guidance at Young-Davidson of 170,000 to 180,000 ounces of gold in 2016 (please refer to the press release dated Jan. 15, 2016, available at SEDAR and on Alamos's website).

The company recognized revenue of $700,000 and $2.7-million from the Fosterville 2-per-cent NSR royalty in the three months and year ended Dec. 31, 2015. In the fourth quarter of 2015 Fosterville produced 31,519 gold ounces as higher-grade discoveries continue to sustain increased levels of production. During 2015, Fosterville produced 123,095 ounces which was a second consecutive year of record production at the mine. Newmarket has provided gold production guidance of 110,000 to 120,000 ounces at Fosterville in 2016 (please refer to the press release dated Jan. 18, 2016, available at SEDAR and on Newmarket's website).

The company's 1-per-cent NSR royalty on the Stawell mine in Victoria, Australia, commenced on Jan. 1, 2016, in accordance with the NSR agreement. Newmarket has provided gold production guidance of 35,000 ounces at Stawell in 2016 (please refer to the press release dated Jan. 18, 2016, available at SEDAR and on Newmarket's website).

On Sept. 18, 2015, the company closed the acquisition of Mineral Streams, a private company owning a 0.25-per-cent NSR on the Williams mine at Barrick Gold Corp.'s Hemlo complex, a 0.5-per-cent NSR on Wesdome Gold Mine Ltd.'s Eagle River mine, and a 1.5-per-cent NSR on Barrick's David Bell property, which also forms part of the Hemlo complex. The transaction closed on Sept. 18, 2015, and the company acquired all of the outstanding common shares of Mineral Streams by issuing 4,753,951 common shares and making a cash payment of $3.4-million (Canadian) ($2.6-million). These royalties contributed $300,000 in revenue for the period between Sept. 18, 2015, and Dec. 31, 2015.

The company has negotiated terms with Macquarie Group to put in place an acquisition credit facility for up to $15.0-million to support potential royalty acquisitions. Final documentation continues and is expected to be finalized in February, 2016. The company will remain very selective in its evaluation of royalty growth opportunities.

Kemess underground

The company has completed the Kemess underground EA and provided it to its first nation partners. The company will submit the EA to the British Columbia Environmental Assessment Office by the end of February, 2016. Once submitted, the EA will undergo a 30-day screening process, in order to ascertain whether the EA complies with certain information requirements. If the EA is compliant, a 180-day review period is initiated, during which time comments are received, addressed and incorporated into the final assessment report. It is then delivered to both the provincial and federal ministers for their respective decisions. These decisions must be announced within 45 days and are expected in the fourth quarter of 2016.

The updated feasibility study is well advanced and the company continues to target a release in March, 2016.

Kemess east

The company is in the process of updating the Kemess east resource estimate by incorporating the assays from the 2015 exploration program outlined below. The updated Kemess east resource will be published as part of the Kemess underground feasibility study update, which is anticipated to be released in March, 2016.

During 2015, the company completed the exploration program at the Kemess east project, which included 27,719 metres of diamond drilling. The program included drilling 12 drill holes within the Kemess east deposit, three drill holes in the Kemess offset target and nine drill holes on other targets. The Kemess east results further expanded the higher-grade core mineralized zone so that it is approximately 300 metres east to west and north to south at a similar elevation to the previously reported mineral resource. The deposit remains open to the east toward the Kemess east offset fault, to the south toward the postmineral sovereign intrusion and to the north.

Highlights from these results include:

• Hole KH-15-01, which intersected 305 metres of 0.625 g/t gold and 0.433 per cent copper:
  • Including 166 metres of 0.831 g/t gold and 0.492 per cent copper;
• Hole KH-15-02, which intersected 301 metres of 0.466 g/t gold and 0.394 per cent copper:
  • Including 184 metres of 0.619 g/t gold and 0.463 per cent copper;
• Hole KH-15-23, which intersected 458 metres of 0.640 g/t gold and 0.437 per cent copper:
  • Including 361 metres of 0.749 g/t gold and 0.478 per cent copper;
  • Including 167 metres of 1.022 g/t gold and 0.574 per cent copper;
• Hole KH-15-27, which intersected 590 metres of 0.516 g/t gold and 0.366 per cent copper:
  • Including 476 metres of 0.615 g/t gold and 0.431 per cent copper;
  • Including 325 metres of 0.743 g/t gold and 0.492 per cent copper;
• Hole KH-15-30, which intersected 772 metres of 0.465 g/t gold and 0.365 per cent copper:
  • Including 615 metres of 0.569 g/t gold and 0.429 per cent copper;
  • Including 224 metres of 0.773 g/t gold and 0.508 per cent copper.

The drill results have both increased the confidence in the maiden Kemess east resource and raised expectations for a potential increase in resources.

The Kemess offset target is directly east of the Kemess underground deposit and shows similar geological characteristics as Kemess underground.

Further information about the 2015 exploration program, including drill results, is included in the company's press releases dated Nov. 3, 2015, and Aug. 18, 2015, which are available on SEDAR and on the company's website.

Near-term corporate objectives

The company's objectives over the next several months include:

• Evaluate potential royalty acquisition opportunities that are accretive to the company's cash flow profile;
• Submit the Kemess underground EA (first quarter 2016);
• Release an updated Kemess underground feasibility study (first quarter 2016);
• Release an updated Kemess east resource (first quarter 2016).

2016 outlook

AuRico Metals' goal is to deliver sustained value creation for the company's many stakeholders. Given the two segments of the business, the company will look to create shareholder value both through accretive royalty acquisitions and by advancing the Kemess underground project through a number of activities in 2016 which the company believes will increase the value of the asset.

The company is providing the following outlook for 2016, assuming a 75-Canadian-cent-to-U.S.-dollar exchange rate:

• Total royalty revenue of $6.6-million to $7.1-million, or $5.7-million to $6.1-million after deducting applicable withholding taxes, and assuming a gold price of $1,150 per ounce;
• For every $50 change in the gold price assumption, revenue is impacted by $300,000;
• Estimate has been based on most recent public production guidance for operations underlying each royalty. Total general and administrative expense of $2.5-million;
• Total care and maintenance costs of around $4.5-million; the company is progressing a stringent review of care and maintenance costs at Kemess in an effort to further reduce these costs. The company is targeting a reduction of care and maintenance expenses to an annualized level of $3.0-million or lower by the end of 2016;
• Total Kemess underground project expenditures of between $1.5-million and $2.5-million; expenditures are related to the Kemess underground feasibility study update, Kemess east resource update, the EA process, permitting and first nations activities. Certain Kemess underground project expenditures are success based. Total Kemess east exploration expenditures of $1.7-million.

The company's level of expenditures on Kemess expected for 2016 is a significant reduction over amounts spent in the last half of 2015. Certain 2016 expenditures are discretionary and can be curtailed if warranted by market conditions. AuRico Metals expects to be free cash flow positive in 2017 following the completion of this year's capital and exploration programs as well as the cost-cutting measures being pursued at Kemess.

We seek Safe Harbor.