Detour Gold Delivers on 2015 Guidance; Electricity Contract for Detour Lake Mine Extended to 2024

TORONTO, ONTARIO--(Marketwired - Jan 14, 2016) - Detour Gold Corp. (TSX:DGC) ("Detour Gold" or the "Company") today announces fourth quarter and full year 2015 operating results for its Detour Lake mine located in northeastern Ontario.

The information provided for cash balance, sales, all-in sustaining costs ("AISC"), and capital expenditures are preliminary figures and are unaudited. Final results in the 2015 Annual Financial Statements and Management's Discussion and Analysis may differ. All amounts are in U.S. dollars unless otherwise indicated.

2015 Highlights

• Gold production of 505,558 ounces, above mid-point of guidance; with fourth quarter record gold production of 146,417 ounces
• Annual average mill throughput rate of 54,114 tpd and mining rate of 249,000 tpd
• AISC estimated between $1,040 and $1,060 per ounce sold¹, at the low end of the guidance; with fourth quarter AISC between $850 and $875 per ounce sold¹
• Year-end cash and short-term investments balance of approximately $161 million
• Electricity contract extended for 5 years to end of 2024 on same terms

Paul Martin, President and CEO, commented: "The Company delivered a solid fourth quarter which contributed to beating the mid-point of our guidance for the year. The fourth quarter results came in line with our expectations on mining and processing rates, costs, and slightly better on grade. As expected, the resulting record gold production generated significantly improved economics and enabled the Company to begin accumulating cash."

2015 Fourth Quarter and Full Year Operational Results

• Record gold production of 146,417 ounces in the fourth quarter as a result of improved grades, bringing total gold production to 505,558 ounces for the year, representing an increase of 11% year-over-year.
• In the fourth quarter, the mill facility processed 5.1 million tonnes (Mt) of ore or an average of 55,522 tonnes per day (tpd) with recoveries of 91%. Processed grade was 0.98 grams per tonne (g/t), slightly higher than projections. For the year, 19.8 Mt of ore were processed at an average head grade of 0.88 g/t with recoveries of 91%. Head grade for the year was 2% above budget.
• Mill operating time for the fourth quarter was at 86%, in line with projections with a planned shutdown in November to replace SAG and ball mill liners on both lines and replace a damaged ball mill trunnion. For the year, mill operating time averaged 84%, slightly below budget of 86%. Higher milling rates (2,680 tpoh) compensated for lower plant operating time.
• A total of 22 Mt (ore and waste) was mined during the fourth quarter (equivalent to mining rates of 239,000 tpd for Phase 1 and 2). For the year, a total of 90.7 Mt was mined (including 7.1 Mt for Phase 2 pre-stripping), an increase of 18% over 2014.

• At the end of December, the run-of-mine ore stockpiles totaled 4.8 Mt grading 0.68 g/t (equivalent to 100,000 ounces of gold).
• Capital expenditures for 2015 are estimated at approximately $90 million, at the low end of the guidance as a result of the favourable exchange rate. In addition, capitalized stripping costs totaled $10 million for the year.
• AISC for 2015 are estimated between $1,040 and $1,060 per ounce sold¹, at the low end of the guidance, mainly due to the favourable exchange rate and higher gold production, partially offset by higher operating costs. For the fourth quarter, AISC are estimated between $850 and $875 per ounce sold¹.
• Detour Gold ended 2015 with approximately $161 million of cash and cash equivalents. In addition, the Company has an undrawn revolving credit facility of C$85 million.

Electricity Contract Extension

• In January 2016, the Company signed an electricity contract with the Ontario Power Authority adding an additional 5 years to its current contract under the same terms. The term of the contract now extends to December 2024. The benefit of the contract puts the electricity cost in the lowest quartile in the industry.

Lower Detour Drilling Program

• Detour Gold has commenced its first phase winter drilling program of 40,000 metres with five rigs on the Detour Lake property. The majority of the drilling will focus on infilling Zone 58N at 25 metre and 50 metre spacing to better define the continuity and extent of the high grade gold mineralization. Several other targets along the Lower Detour trend will also be tested.

2016 Guidance and New Life of Mine Plan

The Company plans to announce its 2016 guidance and new life of mine plan (including year-end 2015 mineral resource and reserve estimates) for its Detour Lake mine on January 25, prior to market opening. The Company will host a Workshop on Monday, January 25, 2016 at 10:00 AM E.T. The workshop will be webcast and the presentation posted on the Company's website. To join the webcast go to www.detourgold.com and click on the "2016 Workshop - New Life of Mine Plan" link on home page. For further details, contact Jenni Piette, Investor Relations Associate, at 416.309.7345.

Technical Information

The scientific and technical content of this news release was reviewed, verified and approved by Drew Anwyll, P.Eng., Senior Vice President, Technical Services, a Qualified Person as defined by Canadian Securities Administrators National Instrument 43-101 "Standards of Disclosure for Mineral Projects.

About Detour Gold

Detour Gold is an intermediate gold producer in Canada that holds a 100% interest in the Detour Lake mine, a long life large-scale open pit operation.

Non-IFRS Financial Performance Measures (1)

The Company has included certain non-IFRS measures in this news release. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

The 2015 Financial Statements and MD&A are expected to be issued on March 10, 2016. Reconciliation of these figures will be included.

Total cash costs

Detour Gold reports total cash costs on a sales basis. Total cash costs include production costs such as mining, processing, refining and site administration, agreements with Aboriginal communities, less non-cash share-based compensation and net of silver sales divided by gold ounces sold to arrive at total cash costs per gold ounce sold. The measure also includes other mine related costs incurred such as mine standby costs and current inventory write downs. Production costs are exclusive of depreciation and depletion. Production costs include the costs associated with providing the royalty in kind ounces.

All-in sustaining costs

The Company adopted all-in sustaining costs on a prospective basis commencing in 2015.

The Company believes this measure more fully defines the total costs associated with producing gold. The Company calculates all-in sustaining costs as the sum of total cash costs (as described above), share-based compensation, corporate general and administrative expense, exploration and evaluation expenses that are sustaining in nature, reclamation cost accretion (also known as unwinding of the discount on decommissioning and restoration provisions), sustaining capital including deferred stripping, and realized gains and losses on hedges due to operating and capital costs, all divided by the total gold ounces sold to arrive at a per ounce figure.

Other companies may calculate this measure differently as a result of differences in underlying principles and policies applied. Differences may also arise to a different definition of sustaining versus non-sustaining capital.

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Specifically, this press release contains forward-looking statements regarding an AISC of $1,040 to $1,060 per ounce sold for 2015 and an AISC of $850 to $875 per ounce sold for the fourth quarter of 2015, 2015 year-end cash and short-term investments balance of approximately $161 million, 2015 capital expenditures of approximately $90 million, the ability of the Company to accumulate cash, a winter drilling program that will focus on infilling Zone 58N as well as test several other targets, and the Company announcing its 2016 guidance and new life of mine plan (including year-end 2015 mineral resource and reserve estimates) for its Detour Lake mine on January 25, prior to market opening.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Detour Gold's ability to predict or control and may cause Detour Gold's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development industry, as well as those risk factors discussed in the section entitled "Description of Business - Risk Factors" in Detour Gold's 2014 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but not limited to, assumptions about the following: the availability of financing for exploration and development activities; operating and capital costs; the Company's ability to attract and retain skilled staff; the mine development schedule; sensitivity to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the receipt of regulatory and governmental approvals for development projects and other operations; the supply and availability of consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; the accuracy of reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; market competition; ongoing relations with employees and impacted communities and general business and economic conditions. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

Contact

Detour Gold Corp.
Paul Martin
President and CEO
(416) 304.0800
Detour Gold Corp.
Laurie Gaborit
Director Investor Relations
(416) 304.0581
Detour Gold Corp.
Commerce Court West
199 Bay Street, Suite 4100, P.O. Box 121
Toronto, Ontario M5L 1E2