TORONTO, ONTARIO--(Marketwired - March 10, 2016) - Detour Gold Corporation (TSX:DGC) ("Detour Gold" or the "Company") reports its financial results for the fourth quarter and full-year 2015. The Company previously released its fourth quarter and full-year 2015 operational results on January 14, 2016. All amounts are in U.S. dollars unless otherwise indicated.

This press release should be read in conjunction with Detour Gold's audited consolidated Financial Statements and related notes and schedules for the year ended December 31, 2015, and related Management's Discussion and Analysis ("MD&A"), which can be found on the Company's website www.detourgold.com under the Investor Centre section or on SEDAR www.sedar.com. In this news release, the Company uses the following non-IFRS measures: total cash costs, all-in sustaining costs, realized gold price, average realized margin, adjusted net earnings (loss), adjusted basic net earnings (loss) per share, and depreciation and depletion per ounce sold. Refer to the Company's MD&A and at the end of this news release for an explanation and discussion of these non IFRS measures.

2015 Highlights

• Record full-year gold production of 505,558 ounces
• Revenues of $563.0 million
• Earnings from mine operations of $12.7 million
• All-in sustaining costs of $1,056 per ounce sold, including total cash costs of $775 per ounce sold
• Net loss of $163.6 million ($0.97 per share) and adjusted net loss of $42.1 million ($0.25 per share)
• Year-end cash and short-term investments balance of $160.6 million

Q4 2015 Highlights

• Record quarterly gold production of 146,417 ounces
• Revenues of $145.7 million
• Earnings from mine operations of $9.1 million
• All-in sustaining costs of $858 per ounce sold, including total cash costs of $694 per ounce sold
• Net loss of $40.8 million ($0.24 per share) and adjusted net loss of $4.4 million ($0.03 per share)

Recent Highlights

• Released a new life of mine plan for the Detour Lake operation on January 25, 2016
• Year-end proven and probable mineral reserves of 16.4 million ounces, a 10% increase from the prior year with the addition of West Detour and the processing of the low grade fines
• Completed a flow-through financing of C$10,188,000 from the issuance of 400,000 shares

Selected Financial Information

Q4 2015 Financial Performance

Revenues

Fourth quarter revenues for 2015 were $145.7 million compared to $150.6 million in the prior year period. The Company's gold sales increased to 132,209 ounces in the fourth quarter of 2015 compared to 124,913 ounces in the prior year period while the average realized gold price decreased by $138 per ounce, from $1,240 per ounce to $1,102 per ounce.

Cost of Sales

Cost of sales totaled $136.6 million in the fourth quarter of 2015, an 11% decrease from $153.4 million in the prior year period. Total cash costs for the fourth quarter of 2015 were $694 per ounce sold compared to $886 per ounce sold in the prior year period. The 22% decrease reflects the positive impact from the weakening of the Canadian dollar, higher volumes of tonnes mined and milled, higher head grade, and operating efficiencies.

Earnings from mine operations

Earnings from mine operations for the fourth quarter of 2015 increased to $9.1 million compared to a loss of $2.8 million in the prior year period. The increase is attributable to lower cost of sales.

Net loss and adjusted net loss

Net loss for the fourth quarter of 2015 totaled $40.8 million ($0.24 per share) compared to $58.7 million ($0.37 per share) in the prior year period. The adjusted net loss for the fourth quarter of 2015 totaled $4.4 million ($0.03 per share) compared to $17.1 million ($0.11 per share) in the prior year period. The improvement was driven by higher earnings from operations as a result of higher gold production.

Full Year 2015 Financial Performance

Revenues

Revenues for the full year 2015 were $563.0 million compared to $535.8 million in 2014. The Company's gold sales totaled 486,243 ounces at an average realized price of $1,175 per ounce compared to 423,013 ounces at an average realized price of $1,262 per ounce for 2014.

Cost of sales

Cost of sales for the full year 2015 totaled $550.3 million compared to $541.4 million in 2014. As previously disclosed in the second quarter, 2015 production costs include an unfavorable adjustment of $9.7 million relating to the Company's electricity usage, of which $7.7 million related to electricity consumption prior to 2015. Total cash costs decreased 18% to $775 per ounce sold in 2015 from $942 per ounce sold in 2014, driven by higher volumes of tonnes mined and milled, operational improvements, and a more favorable exchange rate.

Earnings from mine operations

Earnings from mine operations for the full year 2015 increased by $18.3 million relative to the prior year due to the combination of higher revenues, lower operating costs and the benefit resulting from the depreciation of the Canadian dollar relative to the U.S. dollar.

Net loss and adjusted net loss

Net loss for the full year 2015 totaled $163.6 million ($0.97 per share) compared to $149.5 million in 2014 ($0.97 per share). The net loss for 2015 was adversely impacted by the non-cash deferred taxes expense of $82.5 million and the additional electricity costs relating to prior periods adjustments of $7.7 million. The adjusted net loss for the full year 2015 totaled $42.1 million ($0.25 per share) compared to adjusted net loss of $83.5 million ($0.54 per share) in 2014. The improvement is mainly attributable to positive earnings from operations.

Liquidity and Capital Resources

On February 10, 2015, the Company closed a bought deal financing for gross proceeds of $128.8 million and used the net proceeds, along with cash on hand, to repay all outstanding indebtness under its revolving credit facility and equipment finance leases, reducing total debt by $124.2 million. The remaining debt outstanding is the $500 million convertible notes maturing in November 2017. The Company is targeting to repay $200 million through existing cash balances and future operating cash flows and to refinance the remaining portion. The optimal capital structure of the Company will continue to be evaluated over the next 12 to 18 months based on the operating performance of the Detour Lake mine and the gold price.

For 2015, sustaining capital expenditures were $88.8 million and cash deferred stripping costs totaled $10.0 million.

At December 31, 2015, the Company held cash and cash equivalents and short-term investments of $160.6 million compared to $135.3 million at December 31, 2014. The Company also has an undrawn revolving credit facility of C$85 million.

Financial Risk Management

During 2015, the Company entered into a number of gold, foreign exchange and diesel derivative contracts. The total realized gain on these derivative instruments for 2015 were $0.6 million. As at December 31, 2015, the only contracts outstanding were the zero-cost collars guaranteeing it would purchase Canadian dollars at a rate of no worse than 1.26 and can participate at a rate of up to 1.35. These collars were settled at a loss during the first quarter of 2016.

Annual General and Special Meeting of Shareholders

Detour Gold's Annual General and Special Meeting of Shareholders will be held on May 5, 2016 at 2:00 PM in the St. Andrew's Hall (27^th Floor) of the St. Andrew's Club & Conference Centre at 150 King Street West in Toronto.

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. Detour Gold's shares trade on the Toronto Stock Exchange under the trading symbol DGC.

Non-IFRS Financial Performance Measures

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.

Total cash costs

Total cash costs is a common financial performance measure in the gold mining industry but with no standard meaning under IFRS. Detour Gold reports total cash costs on a sales basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, such as sales, certain investors use this information to evaluate the Company's performance and ability to generate operating earnings and cash flow from its mining operations. Management uses this metric as an important tool to monitor operating cost performance.

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. Other companies may calculate this measure differently.

All-in sustaining costs (AISC)

The Company believes this measure more fully defines the total costs associated with producing gold. The Company calculates AISC 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 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 due to a different definition of sustaining versus non-sustaining capital.

Average realized price and Average realized margin

Average realized price and average realized margin per ounce sold are used by management and investors use these measures to better understand the gold price and margin realized throughout a period.

Average realized price is calculated as metal sales per the MD&A statement of comprehensive loss and includes realized gains and losses on gold forwards, less silver sales. Average realized margin represents average realized price per gold ounce sold less total cash costs per ounce sold.

Adjusted net earnings (loss) and Adjusted basic net earnings (loss) per share

Adjusted net earnings (loss) and adjusted basic net earnings (loss) per share are used by management and investors to measure the underlying operating performance of the Company. Presenting these measures from period to period helps management and investors evaluate earnings trends more readily in comparison with results from prior periods.

Adjusted net earnings (loss) is defined as net earnings (loss) adjusted to exclude specific items that are significant, but not reflective of the underlying operations of the Company, including: fair value change of the convertible notes, the impact of foreign exchange gains and losses, including the foreign exchange on deferred income and mining taxes, non-cash unrealized gains and losses on derivative instruments, accretion on convertible notes, unwinding of discount on decommissioning and restoration provisions, impairment provisions and reversals thereof, and other non-recurring items. Adjusted basic net earnings (loss) per share is calculated using the weighted average number of shares outstanding under the basic method of loss per share as determined under IFRS.

Depreciation and depletion per ounce sold

Depreciation per ounce is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS. Depreciation per ounce is calculated as the depreciation and depletion amount related to mine operations divided by gold ounces sold.

Additional IFRS Financial Performance Measures

The Company has included the additional IFRS measure "Earnings (loss) from mine operations" in the news release. Management noted that "Earnings (loss) from mine operations" provides useful information to investors as an indication of the Company's principal business activities before consideration of how those activities are financed, sustaining capital expenditures, corporate administration expense, exploration and evaluation expenses, loss on disposal of assets, finance income and costs, and taxation.

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 news release contains forward-looking statements regarding the Company targeting to repay $200 million through existing cash balances and future operating cash flows and refinancing the remaining portion; the continued evaluation of the optimal capital structure of the Company over the next 12 to 18 months based on the operating performance of the Detour Lake mine and the gold price.

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.

Information Containing Estimates of Mineral Reserves and Resources

The mineral reserve and resource estimates were prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), as required by Canadian securities regulatory authorities. Readers are advised to refer to the latest annual information form of the Company and other continuous disclosure documents filed by the Company available at www.sedar.com, for detailed information regarding the mineral reserve and resource estimates contained on this website. For United States reporting purposes, the United States Securities and Exchange Commission ("SEC") applies different standards in order to classify mineralization as a reserve. In particular, 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. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, "inferred" mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes inferred mineral resources, except in rare cases.