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QMX Gold Realizes Revenue of $30.8 Million on the Sale of 19,564 Oz of Gold in 2012

TORONTO, ONTARIO -- (Marketwire) -- 04/01/13 -- QMX GOLD CORPORATION (TSX:QMX)("QMX Gold" or the "Company") is announcing fourth quarter financial and operational results for the period ending December 31, 2012. All figures are reported in Canadian dollars, unless noted otherwise.

Financial Summary of the Company for the Year Ending December 31, 2012:


--  The Company recovered 20,112 ounces of gold, which is almost double the
    amount of gold recovered in 2011, and realized an average recovery rate
    of 89.7%. 
    
--  Revenue from mine operations was $30.89 million on the sale of 19,564
    ounces of gold. 
    
--  Average cash costs for 2012 were $1,555 (see non-GAAP measures). 
    
--  QMX reported a net loss for the year of approximately $16.2 million
    which includes mine operating expenses of approximately $30.4 million
    and impairments charges of approximately $5.7 million. 

2012 Year-End Financial Results

In the twelve months ending December 31, 2012, QMX Gold sold a total of 19,564 ounces of gold generating $30.89 million in revenue for the Company. This aggregate revenue number is up from revenue of $15.54 million in the corresponding period of 2011 and represents a 99% increase. Positive revenue figures can be attributed to an increase in gold production from 10,268 ounces in 2011 to 20,112 ounces in 2012 and an increase in average recovery rates from 85.2% in 2011 to 89.7% in 2012. The average sale price was $1,661 per ounce of gold.

In this same period, mine operating expenses totaled $30.43 million and depreciation amounted to $5.41 million for a gross loss for the year of $4.95 million and a net loss of $16.16 million or $0.54 per share. Of this loss, $4.29 million can be attributed to financing costs relating to short term loans and $5.66 million for impairment charges on mineral properties.

The production target for 2012 was set at 18,500 to 20,500 ounces of gold produced, which was achieved. Cash cost targets were set at $1,300 to $1,500 and, based on fourth quarter results, were slightly higher than budgested at $1,555 per ounce.

Fourth Quarter Financial Summary:


--  The Aurbel Gold Mill recovered 3,995 ounces and realized an average
    recovery rate of 87.8%. 
    
--  Revenue from mining operations was approximately $6.3 million for the
    quarter on the sale of 3,982 ounces of gold at an average realized price
    of $1,698 per ounce. 
    
--  Cash cost per ounce of gold production from Lac Herbin was $2,006 per
    ounce (see non-GAAP measures). 
    
--  The Company reported a net loss for the quarter of $4.2 million which
    includes a loss of $2.72 million from mine operations. 
    
--  QMX Gold entered into a bridge financing arrangement with Third Eye
    Capital Partners for $17.5 million. 

Fourth Quarter Financial Results

QMX Gold sold 3,982 ounces of gold to generate $6.34 million in revenue from mining operations during the fourth quarter of 2012 with an average gold sale price of $1,698 (USD $1,714) per ounce. Mine operating expenses were $7.99 million and depreciation and depletion amounted to approximately $1.07 million resulting in an aggregate gross loss of $2.72 million. The cost of sales per ounce sold during the current quarter, excluding depreciation and depletion, was $2,006 per ounce (see non-GAAP Measures). Cash costs were negatively affected this quarter by lower than expected grades which impacted average recovery rates.

QMX Gold recorded a net loss for the quarter of $4.19 million or $0.14 per share. This includes gains on investments of $694,000, which includes the recently acquired Falco Pacific shares (see press release of September 24, 2012). General and administrative expenses were $147,000, which were significantly reduced through the quarter by focusing on cost reductions outside of mine operations.

Commenting on the results, Francois Perron, President and CEO said: "The turnaround plan set out for Lac Herbin was challenged in the fourth quarter as we experienced lower than expected grades that affected our recovery rates and ultimately our cash costs. We had a positive start to 2012 and met our production guidance, but average costs were higher than anticipated. This has affected Lac Herbin's profitability and, as a result, management will continue to review the decision to maintain the operation with higher expectations of profitability throughout 2013. For now, Lac Herbin will continue to implement a number of measures to try to obtain future growth and, at this time, we expect production for 2013 to be between 20,500 and 23,500 ounces with a cash cost of $1,200 to $1,400."

Mr. Perron continued: "The slowed equity markets have delayed the advancement of the Snow Lake project, and we continue to pursue financing for the Project, which is an attractive investment given its significantly advanced stage of development. At this time, our focus has shifted to seeking out private equity and strategic investors."

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

Non-GAAP Measures

The Company has included certain non-GAAP performance measures, namely, cash costs per gold ounce sold throughout this document. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are non-GAAP measures. 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 tables provide a reconciliation of cash costs per gold ounce sold for the nine months ended September 30, 2011 and 2010.


Cash cost per ounces sold:                                                  
                                                                            
----------------------------------------------------------------------------
                      Three months  Three months Twelve months Twelve months
                            ending        ending        ending        ending
                      December 31,  December 31,  December 31,  December 31,
       Period ending          2012          2011          2012          2011
----------------------------------------------------------------------------
             Revenue                                                        
----------------------------------------------------------------------------
     From commercial                                                        
   production ounces                                                        
         (CAD 000's) $       6,337 $       7,637 $      30,886 $      15,544
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
         Ounces sold         3,982         4,639        19,564        10,362
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
      Mine operating                                                        
       expenses (CAD                                                        
              000's) $       7,988 $       9,600 $      30,428 $      22,638
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
 Cash cost per ounce                                                        
          sold (CAD) $       2,006 $       2,069 $       1,555 $       2,185
----------------------------------------------------------------------------
   (mining operating                                                        
 expenses divided by                                                        
        ounces sold)                                                        
----------------------------------------------------------------------------

About QMX Gold

QMX Gold Corporation is a Canadian publicly traded mining company focusing on mine development and exploration in Quebec and Manitoba. QMX Gold continues to operate in the Val-d'Or area with production estimated at 18,500-20,500 ounces of gold per year. The Company has also begun to ramp-up pre-production activities at its property at the Snow Lake Mining Camp which has a Measured and Indicated Mineral Resource of 5.4 million tonnes grading 4.45 g/t Au for approximately 720,000 oz of gold. The Snow Lake Mine is expected to produce 80,000 ounces of gold per year. Full details of the Snow Lake Project are outlined in the Technical Report titled "Snow Lake Mine Re-activation Project" dated December 10, 2010 and prepared by: Andre Roy (Eng.) Jamie Lavigne (P.Geo), David West (P.Eng), Ian Ward (P.Eng), Matthew Parfitt (P.Eng), Mark Bednarz (P.Geo), which is available on the SEDAR profile of the Company at www.sedar.com.

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 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 timing, cost and/or amount of future production, the future price of gold or other minerals, 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. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.

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