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AuRico Gold Announces 2014 Operational Outlook

Stocks in this article: AUQ

TORONTO, February 6, 2014 /PRNewswire/ --

Company-Wide Production Increasing by up to 25%

AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") announces operational and capital investment estimates for 2014 that include significant production growth from the Young-Davidson mine as the operation enters its first full year of a three-year underground ramp-up to targeted production levels. All amounts are in U.S. dollars unless otherwise indicated. The Company will host a conference call and webcast on February 7, 2014 at 8:30 am ET.

2014 Operational Estimates

In 2014, company-wide production is expected to be in the range of 210,000 to 240,000 gold ounces, an increase of up to 25%. Production growth is primarily driven by quarter over quarter production increases from the cornerstone Young-Davidson mine. Company-wide cash costs are expected to be between $675 and $775 per ounce while all-in sustaining costs are expected to be between $1,100 and $1,200 per ounce. Capital investment requirements of $125 to $135 million have declined by up to 40% over the previous year reflecting the completion of construction activities at the Young-Davidson mine. It is anticipated that annual capital investment requirements as well as all-in sustaining costs per ounce will continue to further decline over the coming years.

Link to Quarterly Production Growth Graph

"Company-wide gold production is expected to significantly increase due to the steadily increasing production profile from our cornerstone Young-Davidson mine. In the first quarter, gold production from both assets is expected to increase over the prior quarter, which will represent the seventh consecutive quarter of company-wide gold production growth. This operational momentum is expected to continue throughout the year positioning the Company to deliver reliable, consistent and sustainable production growth," stated Scott Perry. He continued, "The Company is uniquely positioned with a low-cost asset base located in top jurisdictions that provide significant organic growth and a management team that is focused on quality production and a capital allocation strategy that positions the Company for long term value creation."

2014 Operational Estimates

                      2014 Operational Estimates[1]
    Gold Production (ounces)
    Young-Davidson                                  140,000 - 160,000
    El Chanate                                        70,000 - 80,000
    Total Production                                210,000 - 240,000
    Cash Costs per Ounce
    Underground Mine                                      $650 - $750
    Open Pit (incl. stockpile)                            $850 - $950
    Young-Davidson Total                                  $700 - $800
    El Chanate                                            $625 - $725
    Total Cash Costs per Ounce                            $675 - $775
    All-in Sustaining Costs
    Young-Davidson                                    $1,100 - $1,200
    El Chanate                                        $1,000 - $1,100
    Total All-in Sustaining Costs per Ounce[2],[3]    $1,100 - $1,200
    Capital Investment Program (US$000's)
    Non-Recurring Capital
    Lower Mine Vertical Development
    MCM Shaft Deepening                                       $15,000
    Lower Mine Ramp Advance                                   $10,000
    Fixed Assets
    Underground Mobile Equipment                              $10,000
    Underground Ventilation Infrastructure                     $5,000
    Surface Capital Projects                                  $10,000
    Sustaining Capital
    Underground Development - Production Ramp-up    $55,000 - $60,000
    Total Capital Investment - Young Davidson     $105,000 - $110,000
    El Chanate
    Capitalized Stripping                           $17,500 - $22,500
    Surface Capital Projects                                   $2,500
    Total Capital Investment - El Chanate           $20,000 - $25,000
    Total Capital Investment                      $125,000 - $135,000
    Exploration (US$000's)
    Company-Wide Exploration                                  $10,000
    General and Administrative (US$000's)[4]
    Corporate G&A                                             $20,000

1. The following currency assumptions were used to forecast 2014 estimates: 0.95: 1 US dollar to the Canadian dollar and 13.0:1 Mexican pesos to the US dollar

2. All-in sustaining costs are defined as cash costs, sustaining capital, corporate general and administrative expense and sustaining exploration.

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