Dear Shareholder,

It has been another very successful year for AuRico with many milestones achieved and many exceeded. The Company reported another year of significant production growth that achieved guidance estimates at cash costs that were in-line with guidance. While both our operations delivered another year of solid, in-line results, the safety of our workforce is the most important measure of our success. In 2014, both our operations reported another year of industry leading safety performance, most notably, the Young-Davidson team has achieved more than 2 years (3 million man hours) of lost time injury free operations (as of March 31, 2015) and they continue to build on that success.

AuRico delivers another year of annual production that achieves guidance estimates

The ramp-up of the Young-Davidson mine has been impressive, with production for the year achieving the high end of our guidance range with underground cash costs at the mid-range of guidance. The operation team’s diligent focus on driving operational and cost efficiencies throughout the mine has underpinned Young-Davidson’s transition to positive net free cash flow status during the fourth quarter. With a growing production profile over the next three years, along with a corresponding decrease in cost and capital requirements, this cornerstone asset should continue to deliver growing and sustainable cash flow streams going forward.

Young-Davidson Quarterly Gold Production Growth

During the year production and cash costs from our cornerstone Young-Davidson were in-line with guidance estimates with the fourth quarter representing the eleventh consecutive quarter of record production growth at only the mid-point of the underground mine ramp-up to its ultimate target rate of 8,000 tonnes per day.

Quality Assets and Growing Production

Our strategy has remained consistent over the past few years; create a portfolio of quality assets in top jurisdictions that best position the Company for success in any gold price environment. AuRico has assembled such a portfolio of assets that includes two high quality operations located in Canada and Mexico, as well as two highly prospective development projects in British Columbia and Manitoba, Canada.

Young-Davidson – Transitioned to Free Cash Flow in Q4

In 2014, underground productivity continued to improve quarter-over-quarter and exited the year at 4,140 tonnes per day, ahead of our 4,000 tonnes per day target. Underground unit mining costs in the fourth quarter declined to $39 per tonne, below our $40 per tonne target.

Young-Davidson delivered $9M of net free cash flow in Q4

The increasing underground productivity and decreasing unit mining costs has underpinned the operation’s transition to net free cash flow status with net free cash flow of $9 million reported for the fourth quarter. With the underground mine only at 50% of capacity and costs continuing to decline, it is expected that in the current gold price environment the operation will sustain a growing net free cash flow stream going forward.

During the year, the mill processing facility continued to exceed expectations and supported the increase in our targeted processing capacity from 7,000 tonnes per day to 8,000 tonnes per day, well above the original name plate capacity of 6,000 tonnes per day. This increase in available capacity provides the operation with additional flexibility to process the cash flow accretive, historical open pit stockpile inventory earlier than planned.

In 2015, our focus will remain on underground lateral development advance to ensure we maintain flexibility in mine sequencing so we can continue to deliver quarter-over-quarter productivity growth as we ramp up to our target productivity level of 6,000 tonnes per day by the end of 2015 and our ultimate productivity level of 8,000 tonnes per day at the end of 2016.

El Chanate – Reliable and Consistent Performance

The El Chanate mine reported production and cash costs results that were in-line with guidance and we expect this core asset to continue to deliver reliable and consistent results over the coming years.

El Chanate continues to be a reliable and consistent producer

In 2015, we expect El Chanate to produce a similar level of production over the prior year at industry competitive cash costs per ounce. Capital investment is expected to decrease by 33% as capital stripping requirements decline over the prior year. The Company will focus on exploration on our expanded land package, located northwest and southeast of the open pit, to identify new targets for future drilling programs.

Kemess – Mineral Inventory Doubled; Permitting Efforts Advancing

During the year the Company continued to advance the permitting process for the Kemess Underground project, where the permit application entered phase 2 of a 3-phase process. In 2015, working collaboratively with our key stakeholders, we will continue our efforts to advance the permitting process in order to surface additional value for this asset.

Significant value surfacing opportunities at Kemess

In January of 2015 the Company announced an initial resource of 5.5 million gold equivalent ounces at the Kemess East project, which effectively doubled the mineral inventory at the entire Kemess Property to 10.5 million gold equivalent ounces.

The Kemess East deposit is located one kilometer east of Kemess Underground within the Kemess property land package and both projects are in close proximity to the existing mill processing facility. In 2015, the Company will launch an expanded exploration program targeting the Kemess East deposit as well as new targets outside the identified area of mineralization.

Lynn Lake Joint Venture

In October, the Company expanded its land package in Canada through a joint venture agreement on the Lynn Lake Gold Camp, located in northern Manitoba. Lynn Lake is a highly prospective past-producing gold camp consisting of five near surface deposits with significant existing infrastructure in place. The Company is the operator of the joint venture and can increase its ownership from the initial 25% to 60% by funding C$20 million over a three-year period and delivering a feasibility study. This strategic transaction represents a compelling, but low risk opportunity to participate in the early stage advancement of this highly prospective mining district in Canada.

One of the highest grade undeveloped open pit deposits in Canada

Home Safe, Every Day

A safe mine is a profitable mine and we remain focused on ensuring each and every one of our employees goes home safe to their families, each and every day. Our people are our biggest asset and we have to remain diligent in creating a culture where our safety performance is a fundamental principle underpinning our success. While we are justifiably proud of the continued improvement in our safety performance in 2014, we must remain vigilant in continually reinforcing a culture where the safety of our workforce is paramount. During 2015, we continue to deliver our courageous leadership program, ‘Home Safe, Every Day’ and we will continue to promote a culture where zero incidents are possible.

Responsible Mining

We consider AuRico to be a partner with the local communities where we operate and we strive to have a positive impact that endures long after our mines cease operations. We continue to support the establishment of micro-business initiatives such as melon farms and sewing cooperatives, to help stimulate self-sustaining economic activity in communities where we work.

We are dedicated to minimizing our environmental impact and carefully monitor, evaluate, and continually improve our environmental management practices to meet or exceed industry best practice and minimize our environmental footprint.

Looking Forward

Over the past year we have achieved significant success at our Young-Davidson mine, another year of consistent performance at our El Chanate mine, surfaced value at the Kemess East project, advanced the permitting process at Kemess Underground and expanded our Canadian-based portfolio through a strategic joint venture on the Lynn Lake gold camp.

In 2015, we will continue to focus on disciplined growth and execution that will drive free cash flow generation and create long-term sustainable value for our shareholders, our employees, our key stakeholders and for the communities where we operate.

On behalf of the Board of Directors, I would like to thank our shareholders for their continued support through another year of challenging markets, as well as our employees for their dedication and hard work over the past year. We begin 2015 with a low-cost asset base, a significant organic growth profile, a solid liquidity position and a management team focused on delivering shareholder value. Together we look forward to the opportunities that lie ahead.

Scott G. Perry
President and Chief Executive Officer