Mr. Paddy Nicol reports

OROGEN ROYALTIES ENTERS INTO AGREEMENT TO SELL THE SLAUGHTERHOUSE COPPER-GOLD PROJECT TO SEABRIDGE GOLD

Orogen Royalties Inc. has signed a purchase and sale agreement with a subsidiary of Seabridge Gold Inc. whereby Seabridge will acquire a 100-per-cent interest in Orogen's Slaughterhouse iron-oxide-copper-gold project in Wyoming, United States.

Under the terms of the agreement, Seabridge will pay to Orogen $300,000 (U.S.) in cash on closing and milestone payments of up to $2.55-million (U.S.). Orogen will retain a 2.5-per-cent net smelter return royalty, subject to certain buydown provisions, on the Slaughterhouse project, and a 0.5-per-cent to 1-per-cent NSR royalty on a regional 2,400-square-kilometre area of interest surrounding the Slaughterhouse claims.

"The Slaughterhouse project is the culmination of investigative and generative exploration using external and in-house knowledge and regional exploration data sets over several exploration seasons," commented Orogen chief executive officer Paddy Nicol. "The regional AOI represents a district-scale opportunity providing Orogen broad exposure to discovery. Seabridge has one of the most successful exploration track records in our industry as demonstrated by its reserves and resources, and we welcome their expertise on the Slaughterhouse project.

About the Slaughterhouse project

The Slaughterhouse project covers a 12-kilometre-long mineralized trend host to hematite-dominated iron-oxide-copper-gold mineral targets with strong analogues to the deposits of the Gawler craton in South Australia. The Gawler craton is the world's premier IOCG province hosting systems including the supergiant Olympic dam, Prominent Hill, Carrapateena and the recently discovered Oak dam. The IOCG systems in Wyoming and the Gawler craton are both hematite dominated, a rare category that indicates preservation of the shallowest levels of these Paleoproterozoic systems.

At Slaughterhouse, the observed mineralization occurs with ubiquitous hematite as breccias, fracture coatings and dustings. Alteration includes chlorite, calcite, ankerite-siderite and sericite. Observed iron sulphides include minor pyrite with chalcopyrite, chalcocite and bornite. Gold values vary (up to 12 grams per tonne gold in grab samples) but correlate strongly with copper (up to 7 per cent in grab samples). Elevated heavy rare earth elements occur in select areas.

The observed mineralization at Slaughterhouse occurs within a larger footprint of iron-rich metasomatism extending across several hundred square kilometres. The region is underpinned by the Cheyenne belt, a major Proterozoic deformation zone separating the Archean Wyoming craton to the north from Proterozoic supracrustal rocks to the south.

Regional occurrences and the targets developed at Slaughterhouse have seen historical mining but no systematic modern exploration based on the IOCG mineral system framework.

The principal target defined to date is Proud Peak that features an over two-kilometre-long density anomaly underlying high-level iron-rich alteration. The scale and tenor of the anomaly are analogous to the geophysical signature that led to the discovery of Prominent Hill in Southern Australia.

Transaction details

Under the terms of the agreement, Seabridge will acquire a 100-per-cent interest in the Slaughterhouse project subject to the following payments:

• $300,000 (U.S.) on closing of the transaction;
• $300,000 (U.S.) on completion of 10,000 metres of drilling on the Slaughterhouse project and/or the surrounding AOI;
• $750,000 (U.S.) upon publication of a mineral resource estimate on the Slaughterhouse project and/or the surrounding AOI; and
• $1.5-million (U.S.) upon commencement of commercial production, which will be deemed to be an advance minimum payment of the royalties payable to Orogen.

Orogen will retain a 2.5-per-cent NSR royalty on the Slaughterhouse project subject to a 0.5-per-cent NSR buydown for $5-million. Orogen will also retain a 0.5-per-cent to 1-per-cent NSR on any project generated by Seabridge in the surrounding AOI, subject to certain conditions. Completion of the transaction remains subject to customary conditions of closing.

Qualified person statement

All technical data, as disclosed in this press release, has been reviewed and approved by Dr. Laurence Pryer, PhD, PGeo, vice-president, exploration, for Orogen. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.

About Orogen Royalties Inc.

Orogen Royalties is focused on organic royalty creation and royalty acquisitions on precious and base metal discoveries in western North America. The company's royalty portfolio includes the Ermitano gold and silver mine in Sonora, Mexico (2.0-per-cent NSR royalty), operated by First Majestic Silver Corp. The company is well financed with several projects actively being developed by exploration partners.

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