Osisko Development Provides Update on Upcoming Year-End 2023 Results

MONTREAL, Feb. 21, 2024 (GLOBE NEWSWIRE) -- Osisko Development Corp. (NYSE: ODV, TSXV: ODV) ("Osisko Development" or the "Company") announces that it has undertaken a review of the carrying value of its assets in accordance with International Financial Reporting Standards (the "Impairment Analysis") as at December 31, 2023, as part of its fourth quarter and year-end 2023 financial results preparation.

As a result of the preliminary review, which is ongoing and has not been finalized, the Company believes that a non-cash impairment exists to the carrying value of its 100%-owned Trixie gold test mine ("Trixie"), located within the Company's wider Tintic Project in central Utah, U.S.A.

Based on the information currently available, the preliminary Impairment Analysis suggests that a non-cash impairment charge totaling approximately between $80 and $120 million (unaudited) will be recorded against the net carrying value of Trixie. The impairment charge is primarily a result of, among other things, assumptions related to required future exploration and capital expenditures, potential mining and processing methods, and average processed gold grades related to the gold targets only. For greater clarity, the Impairment Analysis relates only to Trixie, and is unrelated to the wider Tintic Project property or the ongoing copper porphyry target drilling.

Despite the expected non-cash impairment charge, management continues to believe in the highly prospective nature of the exploration package, which remains significantly underexplored in areas with known historical mining due to capital allocation constraints of its balance sheet resources.

The asset impairment charge will be a non-cash item and, for the avoidance of doubt, will have no impact on Company cash flows. The Impairment Analysis will be finalized and recognized in the Company's consolidated financial statements for the year ended December 31, 2023.

The Company anticipates releasing a new mineral resource estimate ("MRE") for the Trixie deposit in March 2024, and its fourth quarter and year-end 2023 operating and financial results at the end of March 2024.

ABOUT OSISKO DEVELOPMENT CORP.

Osisko Development Corp. is a premier North American gold development company focused on high-quality past-producing properties located in mining friendly jurisdictions with district scale potential. The Company's objective is to become an intermediate gold producer by advancing its 100%-owned Cariboo Gold Project, located in central B.C., Canada, the Tintic Project in the historic East Tintic mining district in Utah, U.S.A., and the San Antonio Gold Project in Sonora, Mexico. In addition to considerable brownfield exploration potential of these properties, that benefit from significant historical mining data, existing infrastructure and access to skilled labour, the Company's project pipeline is complemented by other prospective exploration properties. The Company's strategy is to develop attractive, long-life, socially and environmentally sustainable mining assets, while minimizing exposure to development risk and growing mineral resources.