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Torex Gold Resources Inc.

Torex Announces 2016 Year End
Financial And Operational Results

(All amounts expressed in U.S. Dollars unless otherwise stated)

Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announced its financial and operational results for the year ended December 31, 2016. This release should be read in conjunction with the Company’s 2016 Financial Statements and MD&A on the Company’s website or on SEDAR.

Fred Stanford, President & CEO of Torex stated: “280,000 ounces of gold in the first year of the ramp up, speaks to the quality of the deposit, the constructed asset, and the skill of the team in navigating through the technical and social start-up challenges. The ramp-up is expected to be completed during 2017, as solutions are in hand for the two remaining material technical issues. Construction is underway on the SART plant to manage the soluble copper and a decision has been made to increase tailings filtration capacity.” He added, “2017 will also be an exciting year from a development perspective as step-out drilling on the Sub-Sill discovery is planned and delivered, a resource estimate is prepared, and access is completed to allow material from this zone to be processed before year end. Media Luna is also poised to take a major step forward in 2017 with permits expected for an access ramp that we intend to start developing before year end. It promises to be an interesting year as we complete the ramp up of ELG and prepare the Company for the next stage of growth.”

The ELG Mine achieved commercial production in late March 2016, ahead of schedule and under budget. For accounting purposes, commercial production commenced April 1, 2016. As this is the Company’s first year in the production stage, comparative figures for certain measures or data are not available or are not meaningful.

Highlights

Commercial production announced on March 30, 2016 ahead of schedule and under budget, reaching an average of more than 60% of plant design throughput of 14,000 tpd for 30 days. For accounting purposes, the transition to production was reflected commencing April 1, 2016.

Net income of $41.0 million since the commencement of commercial production, and $3.2 million for the year. Net income for the fourth quarter of 2016 totalled $10.7 million.

Adjusted net earnings1, which excludes, amongst other items, unrealized derivative and foreign exchange losses, totalled $51.1 million, or $0.65 per share on a basic and $0.64 per share on a diluted basis since the commencement of commercial production, and $4.3 million for the fourth quarter of 2016.

Earnings from mine operations of $119.9 million since the commencement of commercial production and $33.8 million for the fourth quarter of 2016.

Cash flow from operations totalled $167.4 million and $51.7 million for the year and the quarter, respectively.

Revenue of $312.5 million and cost of sales of $192.6 million, or $789 per ounce of gold sold, since the commencement of commercial production. For the fourth quarter of 2016, revenues were $102.3 million and cost of sales were $68.6 million, or $823 per ounce of gold sold.

Gold sold totalled 275,613 ounces in 2016 for total proceeds of $347.2 million. The average realized gold price1 was $1,263 per ounce since the commencement of commercial production. Gold sold in the fourth quarter of 2016 totalled 83,259 ounces for total proceeds of $102.6 million. The average realized gold price in the fourth quarter of 2016 was $1,232 per ounce.

Cash balances as at December 31, 2016 totalled $127.4 million (including restricted cash of $23.4 million).

Gold production totalled 279,937 ounces in 2016, and 80,955 in the fourth quarter of 2016.

Total cash costs1 of $543 per ounce of gold sold since the commencement of commercial production, and $539 per ounce of gold sold in the fourth quarter of 2016.

All-in sustaining costs1 of $733 per ounce of gold sold since the commencement of commercial production, and $746 per ounce of gold sold in the fourth quarter of 2016.

Plant throughput averaged 9,877 tpd since the commencement of commercial production or 71% of design capacity of 14,000 tpd, and 9,233 tpd in the fourth quarter of 2016 or 66% of design capacity of 14,000 tpd.

Average gold grade processed was 3.25 gpt since the commencement of commercial production, and 3.49 gpt in the fourth quarter of 2016.

Average gold recovery rate was 86% since the commencement of commercial production, and 89% in the fourth quarter of 2016.

Grade reconciliation, from start of mining at the Guajes Pit, shows 4% less ounces produced than was predicted by the reserve model (2% more tonnes and 6% less grade).

Ore in stockpile as at December 31, 2016 was 0.8 million tonnes at an average estimated grade of 2.05 gpt. [1] Total cash costs, all-in sustaining costs, average realized gold price and adjusted net earnings are financial performance measures with no standard meaning under International Financial Reporting Standards (“IFRS”). Refer to “Non-IFRS Financial Performance Measures” in the Company’s 2016 Management’s Discussion and Analysis for further information and a detailed reconciliation. As the transition to the production phase commenced April 1, 2016, year-to-date amounts for these measures only include data starting April 1, 2016.

To view a summary of key operating and financial highlights on a quarterly basis for 2016, see Press Release dated February 23, 2017 at www.torexgold.com.

About Torex Gold Resources Inc.

Torex Gold resources is an emerging intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100% owned Morelos Gold Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometers southwest of Mexico City. Within this property, Torex has the El Limón Guajes Mine, which announced commercial production in March of 2016 and the Media Luna Project, which is an early stage development project, and for which the Company issued a preliminary economic assessment (PEA) in 2015. The property remains 75% unexplored.

For further information on Torex Gold, contact Fred Stanford, President and CEO, (647) 260-1502, Email: fred.stanford@torexgold.com or Gabriela Sanchez, Vice President Investor Relations, (647) 260-1503, Email: gabriela.sanchez@torexgold.com. Visit the website at www.torexgold.com.


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