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Torex Gold Reports
Q1 2020 Production Results

Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) announced Q1 gold production of 108,537 ounces of gold. Gold sold during Q1 was 108,064 ounces at an average realized gold price of $1,571/oz.

Fred Stanford, President & CEO of Torex, stated:

“Operationally this was a solid quarter, with 108,537 gold ounces produced. The production performance was complemented by the continued outstanding safety performance. As of the end of March, the team had worked over 5.5 million hours without a lost time injury. Since then, the lost time injury free record has been extended to over 6 million hours and more than one year worked. This commitment to safe work practices has been expanded to healthy work practices as well. To date, we have had no known or suspected cases of COVID-19 at our operation.

“Cost control was successful, with oxygen addition to the leach circuit resulting in a 25% reduction in cyanide consumption since the start of the program. Accounting changes in the treatment of stockpiled ore, and a wild swing in the value of the Mexican peso, created more challenges. For the quarter the accounting changes to stockpiled ore resulted in an increase of approximately $100 per ounce to TCC and AISC. This impact will decline over the coming quarters and is expected to average out at the impact expected in the original annual guidance numbers. The US monetary stimulus in reaction to COVID-19 resulted in the depreciation in many emerging market currencies, including Mexico’s. This has us offside with our currency hedges and when ‘marked to market’, the significant lost opportunity to benefit from the depreciated peso, affected earnings. There were also benefits realized due to the rapid deterioration in the value of the peso. All said and done, the business was solid for the quarter, the financials are a bit messy.

“At the end of the quarter we started a significant planned maintenance shutdown. The decree to suspend non-essential businesses in Mexico was enacted during this shutdown, and we did not restart when the maintenance was completed. Extensive infection control has been effective, and the care and maintenance team has remained free from COVID-19 infection. It is too early to be certain, but we anticipate a lifting of the suspension decree in our area by May 18th. In preparation for that event, we are warming up the processing plant with feed from stockpiles to test the effectiveness and durability of the repairs that were completed during the maintenance shutdown. This will highlight whether additional repairs are required, and they can then be completed before the decree is lifted.

“This should be the last long quote from me in a press release…our succession plan is for Jody Kuzenko to take over as CEO at the annual shareholder meeting and for me to transition to the Executive Chair role. With Jody at the helm, well-established management, technical, and social systems firmly in place, and given the underlying talent of those throughout the entire organization, I am extremely confident in the future direction and success of the Company.”

This release should be read in conjunction with the Company’s March 31, 2020 Financial Statements and MD&A on the Company’s website www.torexgold.com or on SEDAR.

First Quarter 2020 Highlights

Gold production: Produced 108,537 ounces of gold.

Plant throughput and availability: Plant throughput averaged 12,464 tpd. Plant availability increased to 90%.

Gold sold: 108,064 ounces at an average realized gold price of $1,571/oz.

Total cash costs1 and All-in sustaining costs1: Total cash cost of $794/oz and all-in sustaining cost of $975/oz.

• The change in estimate for accounting for stockpiles resulted in $10.8 million of inventory transferred to operating costs, which contributed approximately $100/oz to total cash costs and all-in sustaining costs during the quarter.

Net loss: Reported loss of $47.0 million, or $0.55 per share on a basic basis and a loss of $0.57 per share on a diluted basis.

• Net loss was negatively impacted by the 24.8% depreciation in the Mexican peso relative to the US dollar during the quarter.

Adjusted net earnings1: Ad justednet earnings of $19.9 million, or $0.23 per share on a basic and diluted basis.

EBITDA1 andt Adjused EBITDA1: AdjuasGenerted EBITDA of $39.4 million and adjusted EBITDA of $67.4 million.

Cash flow from operations: Cash flow from operations totalled $29.5 million ($21.8 million prior to changes in non-cash working capital).

• The Company paid $47.2 million in taxes during the quarter, primarily related to the March payment regarding taxes accrued in 2019.

Free cash flow1: Generated $2.1 million in free cash flow ($14.9 million prior to non-sustaining capital expenditures).

Debt payments: Repaid $21.8 million of outstanding debt during the quarter.

Lost time injury frequency: Exited the quarter with a LTIF of 0.31 per million hours worked. We now have worked over 6 million hours without a lost time injury, with our last reported LTI on April 22, 2019.

About Torex Gold Resources Inc.

Torex is an 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. The Company’s principal assets are the El Limón Guajes mining complex (“ELG” or the “ELG Mine Complex”), comprised of the El Limón, Guajes and El Limón Sur open pits, the El Limón Guajes underground mine including zones referred to as Sub-Sill and El Limón Deep (“ELD”), and the processing plant and related infrastructure, which is in the commercial production stage as of April 1, 2016, and the Media Luna deposit, which is an early stage development project, and for which the Company issued an updated preliminary economic assessment in September 2018 (the “Technical Report”). The property remains 75% unexplored.

To read the complete Q1 2020 Financial and Operating Results visit www.torexgold.com or contact Dan Rollins, Vice President, Corporate Development and Investor Relations at 647-260-1503 or Email: dan.rollins@torexgold.com.

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