Mr. Chris Richter reports

AURICO METALS PROVIDES UPDATE ON ROYALTIES

AuRico Metals Inc. has provided an update on its royalty portfolio following the release of relevant information by the operators of the underlying mines. All amounts noted are in U.S. dollars, unless otherwise indicated.

Young-Davidson (1.5-per-cent NSR royalty)

On Jan. 14, 2016, Alamos Gold provided 2016 production guidance for the Young-Davidson mine of 170,000 to 180,000 ounces of gold. Higher mining rates, continuing productivity improvements, and a weaker Canadian dollar are expected to drive total cash costs lower to $600 per ounce of gold sold. All-in sustaining costs are expected to decrease to $825 per ounce, an 18-per-cent or $175-per-ounce decline from the midpoint of 2015 guidance of $1,000 per ounce.

Underground mining rates are expected to increase from approximately 6,000 tonnes per day early in 2016 to a rate of 7,000 tonnes per day by the end of the year. This ramp-up of production is expected to continue until a mining rate of 8,000 tonnes per day has been achieved by mid-2017.

Fosterville (2-per-cent NSR royalty) and Stawell (1-per-cent NSR royalty)

Two thousand fifteen marked the third consecutive year of record production at Fosterville driven in part by contributions from recent high-grade discoveries at the mine. On Jan. 18, 2016, Newmarket Gold announced 2016 production guidance for Fosterville of 110,000 to 120,000 ounces at operating cash costs of $500 to $575 per ounce.

At Stawell, Newmarket is guiding for 2016 production of approximately 35,000 ounces at operating cash costs of $900 to $975 per ounce.

Newmarket Gold is expected to release a resource update later in the first quarter of 2016.

For more information, visit the Newmarket Gold website and see the press release dated Jan. 18, 2016.

Hemlo (0.25-per-cent NSR royalty on Williams mine)

On Feb. 17, Barrick Gold announced a 12-per-cent increase in mineral reserves at Hemlo from 820,000 ounces at the end of 2014 to 917,000 at the end of 2015, after mining depletion. Barrick Gold's 2016 production guidance for Hemlo is 200,000 to 220,000 ounces at all-in sustaining cash costs of $790 to $870 per ounce.

Barrick Gold has announced plans to spend approximately $8.0-million in exploration at Hemlo in 2016.

Eagle River (0.5-per-cent NSR royalty)

On Feb. 10, 2016, Wesdome Gold Mines announced a 13-per-cent increase in mineral reserves at the Eagle River mine to 300,000 ounces, after mining depletion, and a 112-per-cent increase in inferred mineral resources to 170,000 ounces. Mineral reserve grades also increased from 8.5 grams per tonne to 9.5 grams per tonne. Approximately 49 per cent of the mineral reserves and 55 per cent of the mineral resources at Eagle River are from the recently discovered 300 and 7 parallel zones. Wesdome has further announced plans to spend $4.5-million on an aggressive 40,000-metre exploration program at Eagle River in 2016 to better understand the full potential of these new zones.

On Feb. 23, 2016, Wesdome announced encouraging early results from this year's exploration program tracing the No. 7 zone approximately 150 metres up plunge to the 900-metre level where it remains open to surface.

Production from the Eagle River underground mine is anticipated to be between 43,000 and 47,000 ounces of gold in 2016.

We seek Safe Harbor.