2022-05-30 | TSX: GOLD | Press release

MONTREAL, May 30, 2022 (GLOBE NEWSWIRE) — Osisko Gold Royalties Ltd. (the “society” Where “Osisko”) (OR: TSX and NYSE) is pleased to announce that its wholly-owned subsidiary, Osisko Bermuda Limited (“OBL”) has entered into a binding agreement with Tintic Consolidated Metals LLC (“TCM”), an indirect wholly-owned subsidiary of Osisko Development Corp. (“ODV”) (ODV: TSX-V & NYSE), with respect to the previously announced metal stream (the “Flow”) on Trixie’s test mine (the “Trixie mine”), as well as mining claims covering more than 17,000 acres in historic central Utah, the Tintic Mining District (the “Tintic property”).

FLOW DETAILS

  • Initial deposit: OBL will make an upfront cash payment to TCM totaling US$20 million, with the proceeds to be used to fund the development of the Trixie mine and Tintic property.
  • Metal streaming: OBL will purchase 2.5% of all metals produced from the Tintic property until 27,150 ounces of refined gold have been delivered. Thereafter, OBL will purchase 2.0% of all metals produced from the Tintic property for the remaining life of mine.
  • Production payments: OBL will make ongoing payments for Refined Metal delivered to Stream equal to 25% of spot prices on the day prior to the delivery date.
  • Security: The Stream will be a senior senior covered bond of ODV, including guarantees.
  • Place of interest: The stream should be referenced to production from the entire Tintic property, including the Trixie mine.
  • Closing: The Stream is expected to close no later than July 31, 2022, subject to certain conditions precedent to closing, including, but not limited to, the execution of all definitive agreements relating to the Stream. The economic effective date of the transaction is May 29, 2022.

TRIXIE MINE DEVELOPMENT UPDATE

ODV’s short-term plan is to initiate underground and surface drilling while continuing to explore, develop and process mineralized material at the Trixie mine. The drilling is intended to support the preparation of a first NI 43-101 compliant resource statement within the next twelve months. Concurrently, ODV will perform advanced engineering studies on the Tintic property to generate additional surface and underground targets, perform metallurgical testing, geotechnical work and environmental studies to justify further development as well as increase production through an expansion at low capital cost.

For further details, including cautionary statements and forward-looking statements relating to the Trixie mine and the Tintic property, please see ODV’s press releases dated January 25, 2022 titled “Osisko Development Announces Proposed Acquisition of Tintic Consolidated Metals” and May 30, 2022 entitled “Osisko Development Completes Acquisition of Tintic Consolidated Metals, Binding Flow Terms and Release of Funds from Subscription Receipt Financing” filed on www.sedar.com.

OSISKO’S PARTICIPATION IN ODV

ODV today announced that it has closed its previously announced acquisition of a 100% interest in the Trixie Mine and Tintic Property, and has satisfied escrow release conditions relating to previously announced issuances of subscription of ODV (collectively the “Transactions”). Following completion of the transactions, Osisko’s interest in ODV is now approximately 45%.

Qualified person

The scientific and technical content of this press release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd., who is a “qualified person” as as defined by National Instrument 43-101 – Disclosure Standards for Mining Projects (“NI 43-101”).

About Osisko Gold Royalties Ltd.

Osisko is an Americas-focused precious metals royalty intermediary company that commenced operations in June 2014. Osisko holds a North America-focused portfolio of over 165 precious metals royalties, streams and drawdowns. Osisko’s portfolio is based on its flagship asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

Osisko’s head office is located at 1100, avenue des Canadiens-de-Montréal, office 300, Montreal, Quebec, H3B 2S2.

For more information, please contact Osisko Gold Royalties Ltd:

Heather Taylor

Vice President, Investor Relations

Tel: (514) 940-0670 #105

Email: [email protected]

Forward-looking statements

Certain statements contained in this press release may be deemed “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities laws.forward-looking statements, by their nature, require Osisko to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.research statements. Forwardlooking statements are not guarantees of performance. These beforeforward-looking statements, may include, but are not limited to, a statement that all conditions will be met to close the stream in a timely manner, statements regarding future events or future performance, the realization of anticipated benefits from investments of ‘Osisko’, including the Stream, the general performance of Osisko’s assets, and the results of exploration, development and production activities as well as expansion projects relating to properties in which Osisko holds a royalty, a stream or other interest and in particular the further exploration and development of the Trixie mine. Words such as “may”, “will”, “would”, “could”, “expect”, “suggest”, “appear”, “believe”, “plan”, “anticipate”, “intend”, “target” , “estimate”, “continue”, or negative or comparable terminology, as well as the terms usually used in the future and in the conditional, are intended to identify in the long termresearch statements. Information contained in the frontforward-looking statements are based on certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including, without limitation, management’s perceptions of historical trends; current conditions; expected future developments; the continued operation of the properties in which Osisko holds a royalty, stream or other interest by the operators of such properties in a manner consistent with past practices; the accuracy of public statements and disclosures made by the operators of such Underlying Properties; no material adverse change in the market price of the commodities underlying the portfolio of assets; no adverse developments with respect to any material property in which Osisko holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations regarding the development of underlying properties that are not yet in production; and the absence of any other factor that could cause actions, events or results to differ from those anticipated, estimated or intended. Osisko considers its assumptions to be reasonable based on information currently available, but cautions the reader that its assumptions regarding future events, many of which are beyond Osisko’s control, may ultimately prove to be incorrect as they are subject to risks. and uncertainties affecting Osisko and its business. These risks and uncertainties include, among others, that the financial information presented in this press release is preliminary and may be subject to adjustments, the successful pursuit of the transactions underlying the Company’s assets, the performance of Osisko’s assets, growth and benefits from its portfolio of investments, risks relating to operators of properties in which Osisko holds a royalty, stream or other interest, including changes in ownership and control of these operators; risks related to development, permits, infrastructure, operating or technical difficulties on any of the properties in which Osisko holds a royalty, stream or other interest, the influence of macroeconomic developments as well as the impact and the responses of relevant governments to the COVID -19 outbreak and the effectiveness of those responses. In this press release, Osisko relies on information publicly disclosed by third parties regarding its potential new assets: the Stream on the Tintic property and, therefore, assumes no responsibility for any such public disclosure by third parties.

For more information on these and other factors and assumptions underlying the forecastforward-looking statements made in this press release, see the section entitled “Risk Factors” in Osisko’s most recent Annual Information Form which is filed with Canadian securities commissions and available electronically under Osisko’s issuer profile on SEDAR at www.sedar.com and with the Securities and Exchange Commission of the United States and available electronically under Osisko’s issuer profile on EDGAR at www.sec.gov. the front The forward-looking statements set forth herein reflect Osisko’s expectations as of the date of this press release and are subject to change after such date. Osisko disclaims any intention or obligation to update or revise anyforward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

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