Mr. Paul Martin reports

OSISKO ANNOUNCES ROYALTY TRANSACTION ON THE NAMDINI GOLD PROJECT IN GHANA

Osisko Gold Royalties Ltd. has acquired a 1-per-cent net smelter return (NSR) royalty covering the Namdini gold project in Ghana. Osisko has closed the transaction with Savannah Mining Ltd., acquiring a direct interest in 50 per cent of Savannah's 2-per-cent NSR royalty for total consideration of $35-million (U.S.) (excluding applicable taxes and levies).

Highlights

• Near-term gold equivalent ounces (GEO) from a fully permitted project currently under construction:
  • Namdini is on the verge of becoming one of Western Africa's next significant producing mines with gold production over the initial three years expected to reach approximately 360,000 ounces per year, and an average 287,000 ounces per year over an initial 15-year life of mine;
  • First gold production from Namdini is expected in late 2024;
  • As of mid-October, 2023, Namdini's 34.5 kV (kilovolt) distribution power lines to site, connected to the national power grid 30 kilometres west of the project, were 99 per cent complete. In addition, Namdini's plant bulk earthworks were 99 per cent complete, while the CIL (carbon-in-leach) and flotation tailings storage facilities were 29 per cent and 39 per cent complete, respectively.
• Operator is a large-scale and experienced global miner:
  • Namdini is controlled and will be operated by Shandong Gold Co. Ltd., a large-scale and well-capitalized global miner with a history of development and operational expertise;
  • Shandong operates Namdini through its subsidiary Cardinal Namdini Mining Ltd., which is owned in partnership with a subsidiary of China Railway Construction Group Corp. Ltd.
• Jurisdiction with well-established mining act and laws:
  • Ghana is a top gold mining jurisdiction, ranked sixth in global gold production, and ranked first amongst African nations in 2022, based on data from the World Gold Council;
  • Payments associated with Ghanian withholding and value-added taxes (VAT), plus associated levies, result in an additional cash outlay by Osisko to the relevant authorities of $7.7-million (U.S.).
• Osisko granted additional rights:
  • As part of the transaction, Savannah has granted Osisko certain additional rights.

Paul Martin, interim chief executive officer of Osisko, commented: "Today's announcement highlights Osisko's continued ability to uncover and execute on accretive precious metals transactions. Namdini is a long-life, low-cost, open-pit gold project located in Ghana, one of West Africa's most prolific gold-producing countries. The project is being advanced through construction and into production by Shandong; a company which Osisko is confident will continue to develop and operate the mine in a responsible manner. We look forward to having the 1-per-cent NSR on Namdini contribute to our near-term cash flows and GEO growth profile."

Namdini gold project

The Namdini gold project is an open-pit gold project located in Ghana, approximately 50 km southeast of the town of Bolgatanga, and close to the southern border of Burkina Faso. In January, 2021, Shandong closed the $540-million (Australia) (approximately $400-million (U.S.)) acquisition of the company that owned Namdini, Cardinal Resources Inc.

An October, 2019, National Instrument 43-101-compliant feasibility study on Namdini, completed by Lycopodium for the previous project owner, Cardinal, outlined average annual gold production of 287,000 ounces over an initial 15-year mine life. The feasibility study also highlighted approximately 421,000 ounces of gold to be produced in the first 12 months of operation, and 1.1 million ounces (Moz) forecasted in the first three years of full production. The total proven and probable ore reserve in the feasibility study was estimated at 138.6 million tonnes (Mt) at 1.13 grams per tonne (g/t) gold (Au), with a contained gold content of 5.1 Moz. Of this total, 92 per cent of the contained gold was within the probable ore reserve category.

The feasibility study also highlighted the development of a single open-pit mine feeding a conventional crushing, SAG mill, regrind, high-shear oxidation and CIL circuits, with development expected to initially focus on a high-grade starter pit area toward the north of the deposit.

Qualified person

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

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, including 23 producing assets. 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.

Osisko's head office is located at 1100 Ave. des Canadiens-de-Montreal, Suite 300, Montreal, Que., H3B 2S2.

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