QMX Gold Reports Annual Revenue of $27.91 Million

COMPANY REDUCES BRIDGE LOAN BY $3.9 MILLION PRIOR TO CLOSING SNOW LAKE AGREEMENT

TORONTO, ON / ACCESSWIRE / May 1, 2015 / QMX GOLD CORPORATION (TSXV:QMX)(“QMX” or the “Company”) produced a total of 20,503 ounces of gold from its Lac Herbin mine in Val D’Or, Quebec in 2014, in excess of the revised production guidance of 18,000-19,000 ounces of gold. All figures are reported in Canadian dollars, unless noted otherwise.

2014 Annual Production and Financial Highlights:

• -QMX poured 20,503 ounces from 209,758 tonnes of ore at 3.34 g/t Au with a 91.0% recovery rate

  -The Company sold 20,753 ounces of gold at an average price of CAD $1,397

  -Revenue was $27.91 million which resulted in a net loss of $11.51 million or $0.30 per share

  -Cash generated by operations was $4.64 million after working capital adjustments (see non-GAAP Measures)

  -Average Operating Cash Costs were $1,066 per ounce, a decrease over 2013 of 5% (see non GAAP Measures)

  -2015 Production Guidance has been set at 5,000-6,000 from inventory stockpiles

2014 Production Results

QMX Gold mined 224,963 tonnes of ore from its Lac Herbin Mine over the course of 2014 as the mine operations continued pursuant to its mine-out plans. Mining at Lac Herbin has since ceased, but production continues from stockpiles generated during the mine-out and from the ongoing custom milling agreement with Abcourt Mines. From the Company’s own production, the Aurbel Mill processed 209,758 tonnes of ore at an average grade of 3.34 g/t Au and a recovery rate of 91.0% to pour 20,503 ounces of gold.

2014 Financial Results

Revenue generated from mining activities over the course of 2014 was $27.91 million on the sale of 20,753 ounces of gold at an average sale price of CAD $1,397 per ounce. Mine operating expenses for the year were $22.12 million and amortization and depletion was $5.11 million, which resulted in an operating profit of $685,205. The comprehensive net loss for the year was $11.51 million or a loss of $0.30 per share after a $3.58 million impairment charge on the Snow Lake Property. Cash generated by the Company’s operations in 2014 was $4.64 million after working capital adjustments. The operational cash cost during the quarter was $1,066 per ounce (detailed in the non-GAAP measures) which represented a decrease from $1,127 per ounce in 2013.

Brett New, President and CEO of QMX Gold commented: “2014 has been a year filled with challenges for QMX Gold as we moved ahead with the mine-out plans at Lac Herbin and attempted to finalize the sale of the Snow Lake Project. I am truly thankful for the continued commitment of the QMX Gold employees.” Mr. New continued: “I am confident that on closing of the sale of Snow Lake, we will see a rejuvenated company with a stronger balance sheet. Our stronger financial position will put us in an excellent position to pursue additional custom milling opportunities to ensure we are utilizing our core asset, the Aurbel Mill, while we actively seek new strategic acquisitions to replace the Lac Herbin Mine.”

Fourth Quarter 2014 Production

QMX mined 52,523 tonnes of ore from its Lac Herbin Mine in Q4 2014. The Aurbel Mill processed 36,844 tonnes of ore as custom milling activities diverted mined ore to inventory stockpiles. The average grade was 4.21 g/t Au and a recovery rate of 91.3% resulting in 4,556 ounces of gold poured.

Fourth Quarter 2014 Financial Results

Revenue from mining in the fourth quarter was $6.29 million, generated from the sale of 4,531 ounces of gold and an average sale price of $1,364 per ounce. Mine operating expenses, which include amortization and depletion of $0.76 million, were $5.22 million, generating operating income of $1.07 million for the quarter. The comprehensive net loss for the quarter was $5.07 million or a loss of $0.13 per share. Cash generated by operating activities for the quarter was $1.06 million compared to cash used by operations of $0.11 million for Q4 2013. The cash cost per ounce during the quarter was $984 per ounce (see non-GAAP measures), a significant decrease from $1,214 per ounce in the third quarter of 2014.

Operational Outlook

Lac Herbin

The Lac Herbin mine continued with its mine-out plan as production continued well into the first quarter of 2015, significantly longer than first estimated. As of March 14, 2015, underground mining activity has ceased, but QMX Gold plans to continue with production from its own sources into Q2 2015 and announces that annual production guidance for 2015 of between 5,000 and 6,000 ounces of gold. The Company is also continuing production under the custom milling contract with Abcourt Mines Inc. (“Abcourt”) for the treatment of 50,000 tonnes of ore, which has subsequently been extended to June 2015 and provides the option for Abcourt to extend it for an additional month, if needed.

Snow Lake

QMX Gold has entered into a definitive agreement with Hudbay Minerals Ltd. (“Hudbay”) for the sale of the Snow Lake Project to Hudbay for US$12.3 million in cash and a contingent payment of US$5.0 million to be paid on the 3rd anniversary of the definitive agreement closing date should the price of gold be US$1,400 or higher. Full details of the definitive agreement can be found in the press release dated April 17, 2015. QMX Gold will use the funds received on closing to pay down the Bridge Loan held by Third Eye Capital (“TEC”).

Reduction of Bridge Loan

QMX and its senior lender, Third Eye Capital (“TEC”), have agreed to repay the funds owing under the Note Purchase Agreement dated November 28, 2012 and as amended , an amount of C$3.9 million using funds that had been previously used to support QMX’s operations in Snow Lake, Manitoba.

The Company is in negotiations with TEC to come to a mutually satisfactory resolution with respect to the remaining debt outstanding.

Complete interim financial statements and related Management’s Discussion and Analysis are available under the Company’s profile on www.sedar.com and at the Company’s website www.qmxgold.ca.

About QMX

QMX Gold Corporation is a Canadian mining company traded on the TSX-V under the symbol “QMX”. The Company is focusing on mine development and exploration in Quebec and is actively looking for other mining projects for acquisition in the Val d’Or area.

Non-GAAP Measures

The Company has included certain non-GAAP performance measures, namely, cash costs per gold ounce sold and cash flows from operating activities before and after working capital adjustments, throughout this document. These are non-GAAP measures. In the gold mining industry, these are common performance measures but they do not have any standardized meaning. In addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance and ability to generate cash, profits and meet financial commitments. These non-GAAP 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 GAAP. The following table provide a reconciliation of cash costs per gold ounce sold and cash flows from operations for the three and twelve months ended December 31, 2014 and 2013.

Cash cost per ounces sold:

Net cash flow from operating activities:

Contact Information:

Brett New, Louis Baribeau, Rob Hopkins,

President and CEO Public Relations Investor Relations

Tel: (416) 861-5904 Tel: (514) 667-2304 Tel: (416) 861-5899

Toll free: +1 877-717-3027

Email: info@qmxgold.ca

Website: www.qmxgold.ca

Cautionary Note Regarding Forward-Looking Information and Mineral Resources:

This press release contains or may be deemed to contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to financial results, production results and/or the impact of such production results with respect to the mine at Lac Herbin, the timing, cost and/or amount of future exploration and development of the property, the closing of the Snow Lake sale transaction, the processing of more custom mill feed, the timing, cost and/or amount of future production, the future price of gold or other minerals, the restitution of outstanding indebtedness, the ability to complete the acquisition transaction, the successful implementation of development plans at any of the Company’s properties and/or the future financial or operating performance of QMX Gold, its properties and/or its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” 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 actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. 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 statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: QMX Gold Corporation

ReleaseID: 428406