Osisko-Barkerville Close Royalty Financing and Private Placement

MONTREAL, QUEBEC and TORONTO, ONTARIO--(Marketwired - Feb. 5, 2016) - Osisko Gold Royalties Ltd (the "Corporation" or "Osisko") (TSX:OR) and Barkerville Gold Mines Ltd. ("Barkerville") (TSX VENTURE:BGM) (collectively the "Companies") are pleased to announce that they have closed their previously announced royalty financing and private placement.

Sean Roosen, Chairman and Chief Executive Officer of Osisko commented on the transaction: "This is an important milestone in respect to our investment in Barkerville and we look forward to working with the team in place to create additional value at the Cariboo Gold Project."

Tom Obradovich, Chief Executive Officer of Barkerville commented: "We are pleased to have Osisko as a strategic investor and technical partner. With this financing now completed, we can work aggressively to resume gold production, define the Cow Mountain Resource and develop additional resources through targeted exploration."

Private Placement

On November 30, 2015, Osisko and Barkerville announced that they had entered into a binding letter agreement whereby Osisko agreed to purchase 32 million common shares, issued on a flow-through basis (the "Flow-Through Shares") of Barkerville (the "Private Placement").

On December 24, 2015, Osisko and Barkerville announced the completion of the first portion of the Private Placement, whereby Osisko subscribed for 18,750,000 Flow-Through Shares at a price of $0.32 per share for gross proceeds of $6,000,000.

Today, the Companies announce that Osisko has purchased an additional 13,250,000 Flow-Through Shares at a price of $0.32 for total gross proceeds of $4,240,000, representing the balance of Flow-Through Shares issuable pursuant to the Private Placement.

Osisko now holds 47,625,000 common shares and 4,687,500 common share purchase warrants of Barkerville. Osisko has filed an Early Warning Report in connection with the Private Placement.

Royalty Financing

The Companies also announce that they have closed the acquisition of a 1.5% net smelter return ("NSR") royalty on the Cariboo Gold Project for a cash consideration of $25 million, as previously announced on November 30, 2015.

In connection with the purchase of this NSR royalty, the Companies have also agreed to negotiate a gold stream agreement ("Gold Stream Agreement") following the completion of a feasibility study by Barkerville on the Cariboo Gold Project. Following a 60 day negotiation period, if the Companies have not entered into a Gold Stream Agreement, Barkerville shall either grant a right to Osisko to purchase an additional 0.75% NSR royalty for consideration of $12.5 million, or make a payment of $12.5 million to Osisko.