Torex Provides Update ON Its Elg MINE Complex Operations as the Illegal Blockade Has Been Removed
Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304-4000
www.torexgold.com
TOREX PROVIDES UPDATE ON ITS ELG MINE COMPLEX OPERATIONS
AS THE ILLEGAL BLOCKADE HAS BEEN REMOVED
TORONTO, Ontario, January 29, 2018 - Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX:TXG) reports
that an illegal blockade by an external union has been removed at its ELG Mine Complex in southwest Mexico. Hector
Astudillo, the Governor of Guerrero State acted decisively on January 26th, 2018, to lift the illegal blockade by the Los
Mineros Union and peacefully re-establish the rule of law. The blockade led to conflict between communities and denied
to thousands of citizens their constitutionally protected right to work. The efforts by the Governor means Torex now
has access to the main plant access gate , the Company’s accommodation facilities, security for the main plant site,
and for the El Limon Pit -- which had been previously inaccessible.
The Company preferred to resolve the conflict through dialog and negotiatio n. However, it recently became clear the
conditions for successful dialog were not available as the blockaders continue to demand the Company take actions it
has no legal right to take. They also demand the Company renegotiate land lease agreements , despite those current
terms already amongst the most generous in the country. These unreasonable demands and the dramatic escalation
of violence by Los Mineros supporters , meant negotiation was not possible . This is when the Governor and state
officials moved in to restore law and order.
Fred Stanford, President & CEO of Torex stated: “We appreciate the actions taken by the State Government, supported
by the Federal Government, to restore law and order to the region in a peaceful manner. We preferred a negotiated
solution, but, this is the next best thing .” He added – “We also thank the communities of Nuevo Balsas and Val erio
Trujano, whose support has been instrumental in getting the ELG Mine Complex re-started. We are pleased so many
employees from these communities have been able to return to work, and we look forward to welcoming the rest of the
team back as services to manage accommodations are restored. A special thanks to our security teams for their
courage and commitment, and for the hardships they have endured over the past three months. In addition, it should
be noted that our start-up teams returned to an uncertain environment and accomplished so much. We are all proud
of what the Torex/MML teams have built and accomplished in Guerrero State and look fo rward to continuing to build
prosperity for so many moving forward.”
Operations Update
With the help of the supportive communities of Nuevo Balsas and Val erio Trujano, the ELG Mine Complex has been
re-started and has been in continuous ramp-up mode, behind the blockade, since January 12th. The processing plant
start-up team has ramped up throughput levels nicely, with production now routinely achieving between 12,000 tpd and
13,000 tpd. Gold recovery levels have been on an upward trend as well. 12, 100 ounces of gold have been poured.
Gold has been shipped and reven ue from early shipments has been received. Mining in Guajes Pit has been active
since January 18th and mining in El Limon Sur pit re -started on January 24th. Access to the El Limon Pit has been
restored and inspections are underway. Crushing of stockpiled ore in El Limon will begin early this week, and mining
will resume shortly thereafter as additional crews and supervisors return to the ELG Mine Complex.
Torex Gold Resources Inc.
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Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304-4000
www.torexgold.com
Balance Sheet Update
The relationship with our debt bankers continues to be excellent. The process of negotiating an extension of the
liquidity waiver is underway. VAT returns have accelerated with US$16M returned in December, and an additional
US$4.2M to date in January.
Recent Escalation Of Violence In The Surrounding Communities
Unfortunately, tension and violence in the surrounding communities has been increasing. On January 24th, Quintin
Salgado was killed in Nuevo Balsas by unknown assailants. Mr. Salgado had been an employee of the Company for
four years, until 2014. The Company has no way of knowing wh o was behind the killing. It is our understanding that
Mr. Salgado was well known to authorities and that the investigation continues. It is truly sad that Los Mineros and
their supporting unions, have chosen to exploit these human tragedies to further their political agendas.
On Thursday night, January 25th, there was a killing in the more distant town at the crossroads of Tierra Colorada in
Tepecuacuilco, near the entrance to the East Service Road , and we have been told that the assailants left a written
message threatening the incumbent CTM union and their representatives in Nuevo Balsas. On the next day, seven of
the Company’s employees were kidnapped on the East Service Road by Los Mineros supporters. Several hours later
they were released unharmed. Shortly thereafter the authorities intervened to restore law and order. On Friday,
January 26th, and again on Sunday, January 28 th, Company officials met with blockade supporters to discuss their
concerns. To date, progress has been limited, but perhaps a break in the impasse is possible after the Tuesday,
January 30th, scheduled meeting of the legal process to set a date for the union selection vote.
About Torex
Torex 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, the Sub-Sill Project, currently under development, and the
Media Luna Project, an early stage development proj ect for which the Company issued a preliminary economic
assessment (PEA) in 2015. The property remains 75% unexplored.
Contact Information:
TOREX GOLD RESOURCES INC.
Fred Stanford Gabriela Sanchez
President and CEO Vice President Investor Relations
Tel. (647) 260-1502 Tel. (647) 260-1503
Email: [email protected] Email: [email protected]
Torex Gold Resources Inc.
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Corporate Office: 130 King St. West, Suite 740, Toronto, ON M5X 2A2, Canada – Tel. (647) 260 1500 Fax (416) 304-4000
www.torexgold.com
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This press release contains “forward -looking statements” and “forward-looking information” within the meaning of
applicable Canadian securities legislation. Notwithstanding the Company’s efforts, there can be no guarantee that the
Company will not face unforeseen delays or disruptions and the possibility that there may be a further escalation of
violence. Forward-looking information also includes, but is not limited to, the continued removal of the illegal blockade
and access to the Company’s operations, the outcome of the government sanctioned process to vote to elect the union,
the government’s ability to continue to restore the rule of law, the time period during which operations may be continued
and how such operations will be continued. Generally, forward-looking information can be can be identified by the use
of forward- looking terminology such “purpose”, “budgeted”, “scheduled”, “potentially”, “proposed”, “pending”,
“contemplates”, “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, or “subsequent” or variations of
such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be
taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause the activities of the Company to be materially different from those expressed or
implied by such forward-looking information, including, without limitation, those risk factors identified in the Company’s
annual information form and management’s discussion and analysis. Forward -looking information is based on the
reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its
perception of trends, current conditions and expected developments, as well as other factors that management believes
to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove
to be incorrect. Although the Company believes that the assumptions and expectations reflected in such forward -
looking information are reasonable, undue reliance should not be placed on forward -looking information because the
Company can give no assurance that such expectations will prove to be correct. There can be no assurance that such
information will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such information. The Company does not undertake to update any forward-looking information, except in accordance
with applicable securities laws.