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Young-Davidson Mine Update Tom Wadey, Project Manager June 5, 2013 www.auricogold.com
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Page 1: Young-Davidson Mine Tour

Young-Davidson Mine Update Tom Wadey, Project Manager

June 5, 2013

www.auricogold.com

Page 2: Young-Davidson Mine Tour

FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements,

other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast",

"budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or

operating performance, such as the Company’s expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost

estimates, projected exploration results, reserve and resource estimates and other statements that express management’s expectations or estimates of future

performance.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are

inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those

projected in the forward-looking statements. Such factors include: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign

exchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson and El Chanate mine may not perform as planned; changes

in laws or regulations in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits,

authorizations or approvals for operations or projects such as Kemess; contests over title to properties; the speculative nature of mineral exploration and

development; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affecting

operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure

capital to execute business plans; volatility of the Company’s share price; any decision to declare dividends; the effect of future financings; litigation; risk of

loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative

instruments; risks arising from the absence of hedging; adequacy of internal control over financial reporting; changes in our credit rating; and the impact of

inflation.

Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained

herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic

conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets

generally; revenue and cash flow estimates, production levels, development rates and the costs for each; our ability to procure equipment and supplies in

sufficient quantities and on a timely basis; the timing of the receipt of permits and other approvals for our projects and operations; our ability to attract and

retain skilled employees and contractors for our operations; the accuracy of our reserve and resource estimates; the impact of changes in currency exchange

rates on our costs and results; interest rates; taxation; and our ongoing relations with our employees and business partners.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or

otherwise, except as required by applicable law.

Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources

This presentation uses the terms "measured," "indicated" and "inferred” resources. We advise investors that while those terms are recognized and required by

Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Under Canadian rules, estimates of inferred mineral

resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured

or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an

inferred mineral resource exists, or is economically or legally mineable.

2

Page 3: Young-Davidson Mine Tour

Overview

3

• Historic production from underground gold mines in

Timmins and Kirkland Lake (~108 M Oz.)

• Five mines with greater than 5 million ounces

production, Young-Davidson is likely to be the sixth

• Cornerstone asset

• Low cost producer and strong production

growth profile

• Long mine life: Opportunity to expand as

reserves increase

• Located in a stable jurisdiction, close to

major centres

• First gold pour on April 30th, 2012

• Commercial production declared

September 1st, 2012

• Underground production commenced

October 2012

0

5

10

15

20

Ho

lling

er

Do

me

McIn

tyre

Kerr

Ad

dis

on

La

ke

sh

ore

Youn

g-D

avid

so

n

Wrigh

t H

arg

reaves

Pam

our

Teck H

ug

hes

Ma

ca

ssa

Auno

r

Ho

yle

Pond

Ha

llnor

Sylv

anite

Pre

sto

n

Up

per

Ca

nad

a

Paym

aste

r

Co

nia

rium

Ou

nc

es

(M

illio

ns

)

Historic Production of U/G Mines of Timmins & Kirkland Lake(1)

Historical Production YD P&P YD M&I YD Inferred

(1) Refer to endnote #1.

Page 4: Young-Davidson Mine Tour

Aerial View Looking East

4

Tailings Impoundment Area

Mine Site

Town of Matachewan

Page 5: Young-Davidson Mine Tour

Rich Tradition – Mine History

• Site of two former producers

• 20+ years in operation

• +1,200 tpd average production rate

• Early pioneers of bulk mining

• +1 million tonne stopes underground

• Mined ~9 million tonnes and produced 970,000

ounces

• Average realized grade of 3.37 g/tonne

5

Period Mine Tonnes Grade (g/t) Produced (Oz)

1934 to 1957 YD 5,653,000 3.21 585,000

1934 to 1954 MCM 3,205,000 3.66 378,000

1981 to 1982 MCM 96,400 2.36 7,300

Total 8,954,400 3.37 970,300

Young-Davidson Mine (YD)

Matachewan Consolidated Mine (MCM)

Page 6: Young-Davidson Mine Tour

Safe Mines – Safe People

• Reduced Lost Time Injury (LTI)

• 2012 LTI frequency rate: 0.12

• Achieved key milestone in LTI frequency rate

performance last year

• +2 million man hours with no LTI

• Ongoing technical safety education programs

are offered

• +1,500 hours of safety and emergency

response training completed in 2012

Fostering a Safety Culture Where Zero Injuries Are Possible

6

Page 7: Young-Davidson Mine Tour

Responsible Mining

Partnerships with Local Communities

• Recognize the importance of supporting and

collaborating with communities

• Committed to fostering positive relationships

with all stakeholders

• Regular communication and meetings with

members of local community, town hall,

and First Nations groups

• Continue to provide support for local community

initiatives

• Hire and train locally

• 96% of mine workforce hired from local

region in 2012

• Purchase from local suppliers

• 47% of mine spending on local suppliers

in 2012 7

Page 8: Young-Davidson Mine Tour

YD Historic

Mine Workings

Open Pit

Ramp Portal

10350L

NG Shaft MCM Shaft

9890L

9590L

9400L

9200L

8900L

MCM Historic

Mine Workings

Underground Mine Plan

8

Mining Methods

• Transverse long hole stoping

• For wider zones (12-40m)

• 30m sub levels

• Highly productive (wide zones)

• Longitudinal retreat

• For areas < 12m widths

• Pastefill

• Mining recovery ~ 92%

• Dilution ~10%

Page 9: Young-Davidson Mine Tour

Open Pit Overview

9

• 315m wide x 800m long and 140m deep

• Production: 2.25 years

• Low grade stockpile for ~2 years

• 7.5Mt of ore at 1.36 g/t Au

• Mill Feed 4.2Mt @1.78 g/t

• Low grade stockpile 3.3Mt @0.82 g/t

• Strip Ratio 2.5:1

• 8m benches

• Cat 777 Trucks

• 992 Loaders

0

10,000

20,000

30,000

40,000

50,000

January February March April May

2013

Open Pit Tonnes per Day

Target Actual

Page 10: Young-Davidson Mine Tour

Open Pit Ore Stockpiles

10

As of April 30, 2013 Tonnes g/t

Low Grade Stockpile 1,823,000 0.83

High Grade Stockpile 93,000 1.54

Page 11: Young-Davidson Mine Tour

Underground Mining Rates

11

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

January February March April May

2013 Target Actual

Underground Mining Rates Tonnes per Day

• Underground production commenced in October 2012

• Tonnes per day averaged 1,800tpd in May (target of 2,000tpd by end of 2013)

• Currently mining in the Upper Boundary Zone (“UBZ”)

• Average 30,000 to 40,000 tonne stopes in UBZ

• Overall average ore thickness (current reserves) is 20 metres

• Amenable to bulk mining methodologies

• Consistently exceeding 1,000 tpd

• Four stopes mined to date

• Ramp up progressing well

Page 12: Young-Davidson Mine Tour

Process Plant Performance YTD

12

Crusher

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

January February March April May

2013

Tonnes Processed (TPD)

Target Actual

70

75

80

85

90

95

100

January February March April May

2013

Plant Utilization (%)

Target Actual

Page 13: Young-Davidson Mine Tour

2013 Production & Development

Q2 Stopes

Q2 Stopes

Q3 Stopes

13

Q4 Stopes

Page 14: Young-Davidson Mine Tour

Northgate Production Shaft Work

Soledad Property – Kern County, California

• RB 3rd leg 610m

14

• RB 1st leg completed 440m

• Ground support completed

• Reaming of 2nd leg completed

LEGEND

Raise Bore Leg #1

Raise Bore Leg #2

Raise Bore Leg #3

Page 15: Young-Davidson Mine Tour

15

9590 Level Ore Rockbreaker Completed

9590 Level Waste Rockbreaker Completed

2nd Leg of Shaft Reaming Completed

9500 Level Conveyor

9530 Level Crusher Room

Mid-shaft Loading Pocket Commissioning

Young-Davidson Production Shaft

Northgate Mid-shaft Loading Pocket Milestones:

• Commissioning the mid-shaft crushing and hoisting

system during Q3

• Key catalyst for further increases in U/G production

• Completed raise boring of the second leg of production

shaft mid-April

• Vertical access to 1.8M ounces, or 8 years of

production

• Vertical depth of ~900m

• Loading pocket and crusher installation ongoing Crusher room construction

ore pass throat

Page 16: Young-Davidson Mine Tour

Northgate Shaft Reaming 2nd Leg

Soledad Property – Kern County, California

16

• 4m thick rock pillar in place

• Pillar will be blasted by shaft crew during bolting cycle

• Raise boring of 2nd leg completed

• Shaft crews currently in bolting phase of 2nd leg

• 5m thick concrete plug in place just above 9500 L

9590 L

9500 L

9440 L

11 Level

Shaft Collar

• 1st Leg ground support completed

Page 17: Young-Davidson Mine Tour

Crusher Station 9530 L

Soledad Property – Kern County, California

17

Crusher room excavation

completed

Pit trench excavation completed

Page 18: Young-Davidson Mine Tour

Conveyor Level 9500 L

Soledad Property – Kern County, California

18

Conveyor drift excavation completed

Ore pass raise to crusher excavated

Loading pocket excavation completed

Shaft full

of muck

Concrete plug in

place

Page 19: Young-Davidson Mine Tour

MCM Shaft Work

Soledad Property – Kern County, California

Legend

19

LEGEND

Raise Bore Leg #1

Raise Bore Leg #2

Raise Bore Leg #3

• Current location of shaft

bottom 9533 L

• Shaft sinking activities will

resume in September

• Continue hoisting waste

through MCM shaft

Page 20: Young-Davidson Mine Tour

Continuing Operations Performance

20

Second Consecutive Quarter of Solid Results in Line with Guidance Levels

• Solid production growth quarter over quarter

• Cash costs in-line with target levels

• Mill and underground operations exceeding targeted levels

$0

$100

$200

$300

$400

$500

$600

$700

$800

2012 Q3 2012 Q4 2013 Q1

Total Cash Costs per Gold Ounce(2)(3)

0

5,000

10,000

15,000

20,000

25,000

30,000

2012 Q2 2012 Q3 2012 Q4 2013 Q1

Total Gold Ounces Produced(6)

(2) Refer to endnote #2. (6) Refer to endnote #6.

(3) Refer to endnote #3.

Page 21: Young-Davidson Mine Tour

Young-Davidson Life of Mine

21

Significant Mine Life: Opportunity for Expansion as Reserves Increase

Life of Mine profile depicts Proven & Probable Reserves only

2012A 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E

Go

ld O

un

ces (

000's

)

To

nn

es p

er

day

Stockpiled Ore Underground Ore Open Pit Ore Ounces

Page 22: Young-Davidson Mine Tour

Young-Davidson Milestone Dates

22

2nd leg of shaft reaming completed Q2 - 2013

Shaft Waste handling / rock breaker / loading pocket

commissioned Q3 - 2013

Shaft Ore handling system / crusher commissioned Q3 - 2013

Paste fill plant operation Q4 - 2013

Paste Fill Plant

• $45M - $50M capex in 2013

• Offsets requirement for additional

tailings capacity

• Commissioning anticipated for Q4 2013

Page 23: Young-Davidson Mine Tour

2013 Operational Estimates(4)

23 (2) Refer to endnote #2. (4) Refer to endnote #4. (7) Refer to endnote #7.

(3) Refer to endnote #3. (6) Refer to endnote #6.

Young-Davidson 2013 Operational Estimates (March 25, 2013)

Gold Production (ounces)(6) 120,000-140,000

Cash Costs per Ounce(2)(3) $575-$675

Total All-in Sustaining Costs per Ounce(2)(7) $1,250-$1,350

Capital Investment Program (US$000’s)

Non-recurring Growth Capital

Paste Backfill Plant $45,000-$50,000

Shaft and Mid-Shaft Loading and Crushing Facility $25,000-$30,000

Open Pit Mine Development $6,000-$8,000

Sustaining Capital $59,000-$62,000

Total Capital Investment $135,000-$150,000

Depletion and Amortization (US$ per ounce) $300-$310

Exploration (US$000’s) Up to $3,500

Page 24: Young-Davidson Mine Tour

Endnotes

1. Data source: Ministry of Northern Development and Mines accessible at www.mndm.gov.on.ca.

2. Cash Costs per Gold Ounce, All-In Cash Costs Per Gold Ounce, and Adjusted Net Earnings are Non-GAAP measures that do not have any standardized

meaning prescribed by International Financial Reporting Standards (“IFRS” or “GAAP”), and that should not be considered in isolation from or as a substitute for

performance measures prepared in accordance with GAAP. See the Non-GAAP Measures section on page 30 of the Management's Discussion and Analysis for

the year ended December 31, 2012 available on the Company website at www.auricogold.com.

3. Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Gold ounces

include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine. Prior to commissioning the underground mine at Young-

Davidson, cash costs are calculated on ounces produced from the open pit only. All underground costs are capitalized, and any revenue related to underground

ounces sold is credited against capital expenditures.

4. For more information regarding AuRico Gold’s 2013 operational estimates, including production, costs, and capital investments, please refer to the press release

dated March 25, 2013 titled AuRico Reports Fourth Quarter and Annual Financial Results available on the Company website at www.auricogold.com.

5. Reserves and resources for Young-Davidson and El Chanate mines, Kemess Underground Project, and Orion represent gold grade as per technical reports and

Company disclosure. For more information regarding AuRico Gold’s Mineral Reserves and Resources as at December 31, 2012 and the Kemess Feasibility

Study, please refer to the press release dated March 25, 2013 titled AuRico Reports 2012 Reserve & Resource Update and Kemess Feasibility Study Results,

available on the Company website at www.auricogold.com. Measured and indicated resources excludes inferred resources.

6. Production figures include gold ounces only. Production at the Young-Davidson mine includes pre-production ounces, which include ounces produced prior to the

declaration of commercial production on September 1, 2012, as well as all ounces produced from the underground mine.

7. All-in costs are defined as cash costs, sustaining capital, corporate general and administrative expense, reclamation, care and maintenance expense, and

exploration expenditures. Prior to commissioning the underground mine at Young-Davidson, all-in cash costs are calculated on ounces produced from the open

pit only. All underground costs are capitalized, and any revenue related to underground ounces sold is credited against capital expenditures.

24

Page 25: Young-Davidson Mine Tour

Young-Davidson Mine Update Tom Wadey, Project Manager

June 5, 2013

www.auricogold.com

Page 26: Young-Davidson Mine Tour

Appendix

Page 27: Young-Davidson Mine Tour

Reserves and Resources(5)

27

Total Proven and Probable Reserves

Tonnes

(000's)

Gold

(g/t)

Gold Oz.

(000's)

Young-Davidson - Surface 6,425 1.31 271

Young-Davidson - Underground 39,037 2.82 3,534

Total Young-Davidson 45,462 2.60 3,804

Total Measured and Indicated Resources

Tonnes

(000's)

Gold

(g/t)

Gold Oz.

(000's)

Young-Davidson - Surface 291 1.70 16

Young-Davidson - Underground 9,531 2.74 839

Total Young-Davidson 9,821 2.71 855

Inferred Resources

Tonnes

(000's)

Gold

(g/t)

Gold Oz.

(000's)

Young-Davidson - Surface 31 0.99 1

Young-Davidson - Underground 13,983 2.80 1,259

Total Young-Davidson 14,014 2.80 1,260

(5) Refer to endnote 5.

Page 28: Young-Davidson Mine Tour

Notes to Reserves and Resources

Notes:

• Mineral Reserves and Resources have been stated as at December 31, 2012.

• Mineral Resources are in addition to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability when calculated using Mineral

Reserve assumptions. Reserves have been reported in accordance with NI 43-101, as required by Canadian securities regulatory authorities. In addition, while the terms “Measured”,

“Indicated and “Inferred” Mineral Resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of

the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC.

Investors should understand that “Inferred” Mineral Resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In

addition, investors are cautioned not to assume that any part or all of AuRico’s Mineral Resources constitute or will be converted into Reserves.

• Following the completion of a joint venture agreement, Minera Frisco has a 50% interest in the Orion Project.

• Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

28

The following metal prices were used for the calculation of Reserves and Resources:

Reserves Resources

USD Au $/oz Ag $/oz Cu $/lb Au $/oz Ag $/oz Cu $/lb

El Chanate $1,400 - - $1,600 - -

Young-Davidson $1,400 - - $1,600 - -

Kemess Underground $1,300 $23.00 $3.00 $13.00 NSR

Orion - - - $850 $13.00 -

Reserves and Resources were prepared under the supervision of the following Qualified Persons:

Resources Reserves

El Chanate Jeffrey Volk, CPG, FAusIMM, Director Reserves

and Resources, AuRico Gold Inc. Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.

Young-Davidson - Open Pit Jeffrey Volk, CPG, FAusIMM, Director Reserves

and Resources, AuRico Gold Inc. Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.

Young-Davidson - Underground Jeffrey Volk, CPG, FAusIMM, Director Reserves

and Resources, AuRico Gold Inc.

Chris Bostwick, FAusIMM, SVP Technical Services,

AuRico Gold Inc.

Kemess Underground Jeffrey Volk, CPG, FAusIMM, Director Reserves

and Resources, AuRico Gold Inc.

Chris Bostwick, FAusIMM, SVP Technical Services,

AuRico Gold Inc.

Orion Jeffrey Volk, CPG, FAusIMM, Director Reserves

and Resources, AuRico Gold Inc.

Page 29: Young-Davidson Mine Tour

All-in Sustaining Cost Allocation

Cash Costs

Sustaining

Exploration

Corporate G&A

2013 All-in Sustaining Costs $1,100-$1,200 per ounce

Labour 57%

Power 6%

Diesel 9%

Consumables 19%

Materials/Mtc 9%

Cost Allocation

(Includes contract

labour)

All-in Sustaining Costs

• Provides increased transparency

• More representative of actual cost of production

• Removes influence of accounting treatments

• Can be reconciled to OCF

29


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