Abitibi Royalties Announces Normal Course Issuer Bid

VAL-D'OR, QUÉBEC--(Marketwired - Sept. 25, 2017) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to announce that it has received conditional acceptance from the TSX Venture Exchange ("TSX-V") to conduct the normal course issuer bid (the "2017 NCIB"). Under the 2017 NCIB, Abitibi Royalties may purchase for cancellation, from time to time at its discretion, up to 569,797 of its issued and outstanding common shares (representing 5% of Abitibi Royalties' issued and outstanding common shares as of September 19, 2017). Purchases will be made on the open market through the facilities of the TSX-V, with TD Securities Inc. conducting the 2017 NCIB on behalf of Abitibi Royalties.

Abitibi Royalties is of the view that repurchase of its issued shares, to be returned to treasury for cancellation, is warranted when the trading price of the Company's shares, conservatively calculated, is below management's estimated after tax net present value. Accordingly, the purchase for cancellation of shares by Abitibi Royalties during these times will benefit the remaining shareholders by increasing their proportionate ownership in the Company.

The 2017 NCIB will commence on October 6, 2017, and will terminate on October 5, 2018, or such earlier time as the 2017 NCIB is completed or at the option of Abitibi Royalties. Any shares acquired by Abitibi Royalties pursuant to the 2017 NCIB will be cancelled.

Under the 2017 NCIB, Common Shares may be repurchased in open market transactions on the TSX-V or by such other means as may be permitted by the TSX-V and under applicable Canadian securities laws. The price paid by Abitibi Royalties will be based on the market price at the time of purchase and not higher than the last independent trade of a board lot (board lot = 100 shares). As part of the 2017 NCIB, Abitibi Royalties may enter into a pre-defined plan with its broker (TD Securities Inc.) to allow for the repurchase of shares at times when Abitibi Royalties ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with the Company's broker will be adopted in accordance with applicable Canadian securities laws.