Construction of Canadian Malartic Underground Approved, Increasing Life of Mine Gold Production by ~6.9 Million Ounces

MONTREAL, Feb. 16, 2021 (GLOBE NEWSWIRE) -- Osisko Gold Royalties Ltd (“Osisko” or the “Corporation”) (OR: TSX & NYSE) is pleased to announce that the Canadian Malartic Partnership (the “Partnership”), comprising Agnico Eagle Mines Limited (“Agnico”) and Yamana Gold Inc. (“Yamana”), have approved construction of the Odyssey underground project (“Odyssey”) at the Canadian Malartic mine (“Canadian Malartic”).

• Royalty payments from underground production at Canadian Malartic beginning in 2023
• Average underground production of 545 koz of gold per annum from 2029 onwards (see Chart 1), higher than previous Partnership disclosure of 400-450 koz gold per annum
• Osisko has a 3-5% net smelter return (“NSR”) royalty on the mineralization contained in the underground mine plan
• Importantly, the majority of production is expected from deposits within Osisko’s 5% NSR royalty boundary
• Mine life extended from 2028 to at least 2039 based on ~50% of current resources in mine plan
• US$30 million of drilling and exploration work planned in 2021 by the Partnership
• East Gouldie remains open with eleven drill rigs focused on definition and extension drilling
• Osisko also holds a C$0.40/tonne processing royalty on any ore from outside its royalty boundaries processed through the Canadian Malartic mill, potentially adding further regional exploration upside
• Additional positive advancements announced by Agnico on the Upper Beaver and Hammond Reef gold projects where Osisko holds a 2% NSR royalty

For more details, please refer to the press releases issued by each of Agnico and Yamana on February 11, 2021 available on their respective websites.

Sandeep Singh, President and CEO of Osisko commented, “The construction decision for the Odyssey underground project by Agnico and Yamana secures the Canadian Malartic mine as Osisko’s flagship asset for decades. It is difficult to over emphasize the importance of this catalyst for Osisko as Canadian Malartic will continue to provide sustainable production until at least 2039, with significant upside beyond. We commend the Partnership for the exploration and engineering efforts that have led to this announcement.”

Chart 1: Canadian Malartic Production Profile
https://www.globenewswire.com/NewsRoom/AttachmentNg/5aa7398f-7785-44bc ...

The Odyssey project hosts three main underground-mineralized zones: East Gouldie, East Malartic, and Odyssey, the latter of which is sub-divided into the Odyssey North, Odyssey South and Odyssey Internal zones. Osisko holds a 5% NSR royalty on East Gouldie, Odyssey South and the western half of East Malartic and a 3% NSR royalty on Odyssey North and the eastern half of East Malartic.