Mr. Sandeep Singh reports

OSISKO ANNOUNCES ROYALTY TRANSACTION WITH HOT CHILI ON THE COSTA FUEGO COPPER-GOLD PROJECT IN CHILE

Osisko Gold Royalties Ltd. has entered into a binding agreement to acquire a 1-per-cent copper net smelter return (NSR) royalty and a 3-per-cent gold NSR royalty from Hot Chili Ltd. covering Hot Chili's Costa Fuego copper-gold project in Chile, for total cash consideration of $15-million (U.S.).

Sandeep Singh, president and chief executive officer of Osisko, commented: "Costa Fuego has the potential to be a long-life, lower-cost copper mine in Chile, with significant byproduct credits, importantly situated at low elevation and in close proximity to key infrastructure. We are impressed with what the Hot Chili team has been able to accomplish to date, most notably on the exploration and permitting fronts, and we look forward to future development milestones at Costa Fuego."

Costa Fuego highlights:

• One of the world's largest undeveloped copper projects not currently controlled by a major mining company;
• A March, 2022, National Instrument 43-101 updated global mineral resource estimate (MRE), including both the open-pit and underground portions of the Cortadera and Productora deposits, contains an indicated resource of 725 million tonnes (Mt) grading 0.47 per cent copper equivalent (CuEq), grading 0.38 per cent copper (Cu), 0.11 gram per tonne (g/t) gold (Au), 0.45 g/t silver (Ag) and 93 parts per million (ppm) molybdenum (Mo);
• The MRE also includes an inferred resource of 202 Mt grading 0.3 per cent Cu and 0.06 g/t Au;
• Hot Chili's June 28, 2023, preliminary economic assessment (PEA) projects a 16-year life-of-mine with an annual average production rate of 95,000 tonnes Cu and 49,000 ounces (oz) Au in the first 14 years;
• The PEA projects one of the lowest capital intensity copper development projects globally;
• Costa Fuego is situated at low altitude and is in close proximity to all key infrastructure requirements;
• Secured a water permit and power connection to the grid, and the project's environmental impact assessment is significantly advanced;
• An updated MRE for the project is scheduled for late 2023 and will serve as the basis for prefeasibility study (PFS), scheduled for completion in 2024.

Additional transaction considerations:

• Osisko has granted Hot Chili an option to buy down a portion of the royalty, which can only occur upon change of control, and exercisable until the fourth anniversary of the transaction close. The buydown option can reduce the copper and gold royalties by 0.5 per cent, respectively (resulting in a 0.5-per-cent Cu royalty and a 2.5-per-cent Au royalty), in exchange for payment in an amount equal to 130 per cent, 140 per cent or 150 per cent of the upfront price paid by Osisko if exercised before the second, third or fourth anniversary of the transaction close;
• Hot Chili has granted Osisko a corporate right of first offer on all future potential royalty and streaming opportunities, as well as certain other rights on proposed future royalty financings; and
• Osisko will be granted the royalties on Hot Chili's effective ownership of the properties (see below). Should Hot Chili's ownership of these properties increase, the royalty will thereafter apply to the increased ownership level.

The Costa Fuego project

The Costa Fuego project contains three deposits with current mineral resources (Productora, Cortadera and San Antonio), and is located in the Atacama region of Chile in the low-altitude coastal range belt (approximately 800 metres elevation). The project is surrounded by existing infrastructure with the project centre at Productora, located 15 minutes by road from the city of Vallenar on the Pan-American Highway. Costa Fuego will leverage existing surface rights (already secured) for proposed central processing facilities at Productora. In addition, the project will take advantage of existing infrastructure access in the form of already-obtained powerline and seawater pipeline corridor easements; of note is that a maritime concession has been recently granted to Hot Chili for the project, referring to coastal land access as well as the right to extract sea water for processing purposes, as metallurgical test work has indicated that no desalinization will be required. A key port facility and power substation are located 55 kilometres and 20 km away, respectively, with Hot Chili having already secured an electrical connection to the national power grid. An aerodrome is located approximately 14 km from Productora. Finally, of note is that Glencore has an offtake agreement for 60 per cent of the mine's production over the first eight years.

A PFS for Cost Fuego is anticipated for 2024, following the completion of a 30,000-metre drilling campaign which is planned to commence in 2023. At present, 82 per cent of Costa Fuego's global MRE is classified as indicated, providing an already strong platform for Hot Chili as it prepares the PFS.

Productora is held in a joint venture, presently 80 per cent owned by Hot Chili, and Cortadera is 100 per cent owned by Hot Chili. Hot Chili executed an option agreement with a private party to earn a 90-per-cent interest in the San Antonio copper-gold project over a four-year period.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, PhD, PGeo, vice-president, project evaluation at Osisko Gold Royalties, a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

About Osisko Gold Royalties Ltd.

Osisko Gold Royalties is an intermediate precious metal royalty company which holds a North American-focused portfolio of over 180 royalties, streams and precious metal offtakes. Osisko's portfolio is anchored by its cornerstone asset, a 5-per-cent net smelter return royalty on the Canadian Malartic mine, one of Canada's largest gold mines.

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