TMAC Reports Operating and Financial Results for Second Quarter of 2017

TMAC Resources Inc. (TSX:TMR) ("TMAC” or the "Company”) is filing its Second Quarter 2017 Financial Statements and Management’s Discussion & Analysis for the period ended June 30, 2017. The documents may be found on the Company’s website at www.tmacresources.com or, once filed, on SEDAR at www.sedar.com. Please read this news release in conjunction with these documents.

Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, "We are pleased with our mining operations and the integrity of the Doris deposit as it relates to grade, continuity, hardness and geometallurgy. Our ore stockpile of 104,700 tonnes has an average grade of 15.2 g/t gold with a portion of the stockpile grading more than 20 g/t gold. The characteristics of the Doris ore have been in line with expectations and are not the cause of any complications in the plant recoveries. Recently, increased throughput and improved availability of the plant have provided sufficient plant stability to focus on improving recoveries and we continue to make technical advancements. The slower than expected ramp up has resulted in fewer ounces of gold being produced than planned and we now expect to sell between 50,000 and 60,000 ounces of gold in 2017. In addition, we are in the process of adding significant talent and expertise to our executive and operational teams and are extremely pleased to welcome Gil Lawson to TMAC as our new Chief Operating Officer. As we continue our ramp up to full production at Hope Bay, Gil’s extensive start-up experience at Musselwhite and Snap Lake, plus his experience working in Canada’s Arctic will enable us to complete the ramp up and optimization at Doris, and prepare to develop our assets at Madrid and Boston."

Dr. Farrow added, "Since acquiring the Hope Bay Project in 2013 we have focused on the development of Doris and patiently waited to initiate a major exploration campaign at Boston until we had Doris in commercial production. Having achieved that effective June 1^st we recommissioned the Boston camp located about 60 km south of the Doris complex and initiated our first drilling program there this summer. Initial drilling results, such as drill hole TMB0001, intersecting 15.3 g/t Au over 22.3 metres, are very encouraging and confirm Boston’s high-grade potential along-strike and down plunge.”

SECOND QUARTER 2017 HIGHLIGHTS

• Financial results:
  • Net profit totalled $0.5 million, or $0.01 per share on a basic and fully diluted basis
  • Realized an average price for gold of US$1,252 per ounce for June 2017
  • Cash costs and All-in Sustaining Costs ("AISC”) were US$1,054 and US$1,801, respectively, per ounce of gold sold in June
  • 11,630 ounces of gold sold
    • 7,880 ounces of gold sold prior to June 1, 2017 for $13.5 million (US$9.9 million) of proceeds credited to development costs on the Statement of Financial Position
    • 3,750 ounces of gold sold in June 2017 for $6.1 million (US$4.7 million) of sales included in revenue in the Statement of Profit or Loss
  • Cash balances at June 30, 2017 were $6.9 million of unrestricted cash and $52.0 million of restricted cash
• Debt refinancing completed:
  • Amended the Credit Agreement to increase the total borrowings to US$160 million to provide additional liquidity during sealift and restructured the repayment terms to be over a five-year period
• Executive team strengthened:
  • Gil Lawson will join the TMAC executive team as Chief Operating Officer effective August 31, 2017
• Operations:
  • Achieved commercial production effective June 1, 2017
  • Plant ramp up slower than anticipated
    • 60,600 tonnes of ore were processed in the Plant, of which 39,900 tonnes of ore were prior to June 1, 2017 and 20,700 tonnes of ore were in June
    • 12,270 ounces of gold were produced, of which 5,200 were in June
    • The Plant achieved average recoveries of 67% in June
  • Underground operations continue to perform well
    • 30,400 tonnes of ore were mined at an estimated grade of 12.4 grams per tonne ("g/t”) containing 12,100 ounces of gold
    • Ore stockpiles at June 30, 2017 estimated to contain 104,700 tonnes of ore at an average grade of 15.2 g/t, or 51,000 ounces of contained gold
    • Underground mine development activities progressed as planned at Doris North
    • Development of the BTD zone to facilitate increasing tonnages from 1,000 to 2,000 tonnes per day ("tpd”) later in 2018 continued as planned
• Production guidance lowered:
  • Previously disclosed guidance for 2017 has been revised as follows:
    • 50,000 to 60,000 ounces of gold sold
    • $15 million of sustaining capital
    • $54 million of expansion capital
    • $13 million of E&E
    • Mining of 150,000 to 180,000 tonnes of ore
    • Processing of 215,000 to 235,000 tonnes of ore
• Boston and Doris drilling:
  • Encouraging drilling results obtained at Boston and Doris BTD
• Corporate development:
  • Secured 100-person camp for delivery to Hope Bay on the 2017 sealift
  • Fabrication of the second Python by Gekko completed and en route to Hope Bay as part of the 2017 sealift
  • The Nunavut Water Board, in consultation with the Nunavut Impact Review Board, issued new Type B Water Licences for Madrid North and Madrid South in May 2017 and for Boston in July 2017

Table 1: Summary of operating and financial highlights for the periods ended June 30, 2017

(1)  Pre-commercial production
(2)  Post commercial production
(3)  Includes depreciation
(4)  Refer to non-IFRS measures below
(5)  Cash cost and AISC refers to results after achieving commercial produ
(6)  Translated using exchange rates at the time of incurring the expenditure
(7)  Expansion includes pre-commercial production costs and associated gold sale proceeds

CONFERENCE CALL AND WEBCAST

Senior management will host a conference call on Monday, August 14, 2017 at 10:00 am (ET).

Webcast access:
A live audio webcast of the conference call will be available on the Company’s website at www.tmacresources.com. An archive of the webcast will be available on the Company’s website.
Telephone access:
Please call the numbers below five to ten minutes prior to the scheduled start of the call.
Toronto local or international 1 (416) 915-3239
Toll-Free (North America) 1 (800) 319-4610

ABOUT TMAC RESOURCES

TMAC holds a 100% interest in the Hope Bay Project located in Nunavut, Canada. TMAC is an emerging gold producer with the Doris Mine pouring first gold in the first quarter of 2017 and Madrid and Boston expected to commence production in 2020 and 2022, respectively. The Company has a board of directors with depth of experience and market credibility and an exploration and development team with an extensive track record of developing high grade, profitable underground mines. TMAC’s shares trade on the Toronto Stock Exchange under the trading symbol TMR.

FORWARD-LOOKING INFORMATION
This release contains "forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information” includes statements that use forward-looking terminology such as "may”, "will”, "expect”, "anticipate”, "believe”, "continue”, "potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, bringing the timing for bringing Madrid and Boston into production and the rate of ramp up at Doris throughout 2017.

Forward-looking information is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors” in the Company’s Annual Information Form dated February 23, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.

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