Osisko Gold Royalties Ltd. Reports Strong 2021 Results and Provides 2022 Guidance and 5-Year Outlook

2021 Financial Highlights

• 80,000 GEOs¹ earned in 2021, in-line with guidance (2020 - 66,113 GEOs);
  
  
• Record revenues from royalties and streams of $199.6 million (2020 - $156.6 million);
  
  
• Consolidated cash flows from operating activities of $106.1 million (2020 - $108.0 million);
  
  
  • Record operating cash flows from the royalties and streams segment² of $153.2 million (2020 - $114.0 million);
    
  • Operating cash flows from the mining exploration and development segment³ (i.e. Osisko Development Corp. - TSX-V:ODV) of ($47.1) million (2020 - ($6.0) million);
    
    
• Cash margin⁴ of 93% from royalties and streams or 97% excluding the Renard diamond stream (2020 - 94% or 96% excluding the Renard diamond stream);
  
  
• Consolidated net loss attributable to Osisko's shareholders of $23.6 million, or $0.14 per share, as a result of impairment and mining operating charges from Osisko Development Corp. ("Osisko Development");
  
  
• Consolidated adjusted earnings⁴ of $59.3 million, or $0.35 per basic share (2020 - $48.4 million, $0.30 per basic share);
  
  
• Repurchase of 2.1 million common share for $30.8 million under the normal course issuer bid (average acquisition price of $14.64 per share); and
  
  
• Increased the quarterly dividend by 10% for an annualized dividend of $0.22 per share.

Q4 2021 Financial Highlights

• 19,830 GEOs earned (Q4 2020 - 18,829 GEOs);
  
  
• Record revenues from royalties and streams of $50.7 million (Q4 2020 - $48.8 million);
  
  
• Cash margin of 93% from royalty and stream interests or 97% excluding the Renard diamond stream (Q4 2020 - 94% or 97% excluding the Renard diamond stream);
  
  
• Consolidated cash flows from operating activities of $12.8 million (Q4 2020 - $32.6 million);
  
  
  • Operating cash flows from the royalties and streams segment of $35.1 million (Q4 2020 - $34.1 million);
  • Operating cash flows from the mining exploration and development segment of ($22.3) million (Q4 2020 - ($1.5) million);
    
    
• Consolidated net loss attributable to Osisko's shareholders of $21.2 million, or $0.13 per basic share (Q4 2020 - net earnings of $4.6 million, or $0.03 per basic share), as a result of impairment and mining operating charges from Osisko Development; and
  
  
• Consolidated adjusted earnings of $3.3 million, or $0.02 per basic share (Q4 2020 - $15.5 million, or $0.09 per basic share);
  
  
  • Adjusted earnings from the royalties and streams segment of $23.8 million, or $0.14 per basic share (Q4 2020 - $19.6 million or $0.12 per basic share);
    
  • Adjusted loss from the mining exploration and development segment of $20.5 million, or $0.12 per basic share (Q4 2020 - $4.1 million or $0.02 per basic share).

Sandeep Singh, President and CEO of Osisko commented: "We had a strong end to a record year on many fronts in 2021. Our key assets continued to deliver, expand and ramp up, while many of our development assets took meaningful strides forward towards commencing production.

We expect further catalysts on many of our key assets in 2022, including the Malartic underground, Mantos, Eagle and Renard mines, as our operating partners continue to unlock value on large prospective land packages in good jurisdictions. Those catalysts, amongst others, have led to a 10,000 to 15,000 GEO increase in guidance in 2022 versus our 2021 actual deliveries.

To better outline the significant longer-term organic growth in the Company, we have announced an inaugural 5-year growth outlook of between 130,000 and 140,000 GEOs in 2026. The ability to grow by 10-12% compounded annually, on assets that were acquired in the last market downturn, is expected to lead to greater cash flows and diversification for the Company. Importantly, we benefit from other significant assets which we believe will also contribute to growth in this decade, but which we have not included in the outlook given uncertainties on timing."

Financial Highlights by Operating Segment
(in thousands of dollars, except per share amounts)

As a result of its 75% ownership in Osisko Development, the assets, liabilities, results of operations and cash flows of the Company consolidate the activities of Osisko Development and its subsidiaries. The table below provides some financial highlights per operating segment. More information per operating segment can be found in the consolidated financial statements and management's discussion and analysis for the three months ended December 31, 2021.

Other Highlights

• Announcement by Agnico Eagle Mines Limited and Yamana Gold Inc. of a positive construction decision for the Odyssey underground mine project. The preliminary economic study outlines a total of 7.29 million gold ounces to be mined, commencing in 2023 and extending the mine life to at least 2039 based on approximately half of the current resources;
  
  
• Mantos Copper S.A. ("Mantos") announced a merger with Capstone, increasing visibility on Mantos Blancos. Construction has been completed and ramp up is underway for the Concentrator Debottlenecking Project, transitioning the asset to a 20,000 tonne per day sulphide operation. Studies are underway for a further expansion to 27,000 tonnes per day;
  
  
• Gold production ramped up at Victoria Gold Corp.'s ("Victoria") Eagle mine during the course of 2021 with 105,324 ounces produced in the second half of 2021. Victoria heightened the pace of exploration, targeting several areas to expand the resource base on the Dublin Gulch property. Importantly, Victoria announced the initiation of "Project 250" aimed at increasing the average annual gold production to 250,000 ounces of gold during 2023;
  
  
• Took several positive steps towards ongoing commitments to ESG, including the publication of the inaugural ESG report, an investment and partnership with Carbon Streaming Corporation and commitment to the United Nations Global Compact;
  
  
• Amendment of the revolving credit facility (the "Facility") and increase of the amount available by $150.0 million to $550.0 million, with an additional uncommitted accordion of up to $100.0 million (for a total availability of up to $650.0 million);
  
  
• In January 2022, Osisko Development entered into definitive agreements to acquire 100% of Tintic Consolidated Metals LLC ("Tintic"). Osisko Bermuda Limited ("Osisko Bermuda") entered into a non-binding metals stream term sheet, with a wholly-owned subsidiary of Osisko Development, for between US$20 million and US$40 million. In the event that the full amount of US$40 million is drawn, Osisko Development will deliver to Osisko Bermuda 5% of all metals produced from the Tintic property until 53,400 ounces of refined gold have been delivered and 4.0% thereafter;
  
  
• In February 2022, Osisko Development announced a bought-deal private placement of $90.0 million and a non-brokered private placement of US$110.3 million. After closing of the Tintic acquisition and the financings announced by Osisko Development, the ownership of the Company in Osisko Development is expected to decrease to approximately 45%; and

• Declared a quarterly dividend of $0.055 per common share payable on April 14, 2022 to shareholders of record as of the close of business on March 31, 2022.

2022 Guidance

Osisko's 2022 guidance on royalty and stream interests is largely based on publicly available forecasts from our operating partners. When publicly available forecasts on properties are not available, Osisko obtains internal forecasts from the producers or uses management's best estimate.

GEOs⁽ⁱ⁾ earned and cash margin by interest are estimated as follows for 2022:

For the 2022 guidance, deliveries of silver and cash royalties have been converted to GEOs using commodity prices of US$1,800 per ounce of gold, US$23.50 per ounce of silver and an exchange rate (US$/C$) of 1.26. GEOs from the Renard diamond stream were converted to GEOs using a price of US$110 per carat for the period commencing on May 1, 2022 because, prior to such date, Osisko has committed to reinvest the net proceeds from the stream through a bridge loan facility provided to the operator.

5-Year Outlook

Osisko expects its portfolio to generate between 130,000 and 140,000 GEOs in 2026. The outlook assumes the commencement of production at the San Antonio, Cariboo, Windfall and Back Forty projects amongst others. It also assumes that Mantos will have reached its nameplate capacity following the recent expansion of its activities, as well as increased production from certain other operators that have announced planned expansions.

Beyond this substantial growth profile, Osisko owns several other growth assets, including Hermosa, Pine Point, Spring Valley, Horne 5, Casino, Copperwood/White Pine, Amulsar and others, which have not been factored in the current 5-year outlook, as their timelines are either later, or less clear. As the operators provide further clarity on these assets, we will seek to include them in our long-term outlook.

This 5-year outlook is based on publicly available forecasts from our operating partners. When publicly available forecasts on properties are not available, Osisko obtains internal forecasts from the producers or uses management's best estimate. The commodity price assumptions that were used in the 5-year outlook are based on current long-term consensus and a gold/silver price ratio of 75:1.

Q4 2021 and Full Year 2021 Results Conference Call Details

Qualified Person

The scientific and technical content of this news release has been reviewed and approved by Guy Desharnais, Ph.D., P.Geo., Vice President, Project Evaluation at Osisko Gold Royalties Ltd., 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 Ltd. is an intermediate precious metal royalty company which holds a North American focused portfolio of over 160 royalties, streams and precious metal offtakes. Osisko's portfolio is anchored by its cornerstone asset, a 5% net smelter return royalty on the Canadian Malartic mine, which is the largest gold mine in Canada.

Osisko's head office is located at 1100 Avenue des Canadiens-de-Montr?al, Suite 300, Montr?al, Qu?bec, H3B 2S2.

For further information, please contact Osisko Gold Royalties Ltd.:

Heather Taylor
Vice President, Investor Relations
Tel. (514) 940-0670 x105
htaylor@osiskogr.com

Notes:

Average Metal Prices and Exchange Rate

Cash Margin (in dollars and in percentage of revenues)

Cash margin (in dollars) represents revenues less cost of sales (excluding depletion). Cash margin (in percentage of revenues) represents the cash margin (in dollars) divided by revenues.

Adjusted earnings (loss) and adjusted earnings (loss) per basic share

Adjusted earnings (loss) is defined as: net earnings (loss) adjusted for certain items: foreign exchange gain (loss), impairment of assets (including impairment on financial assets and investments in associates), gains (losses) on disposal of exploration and evaluation assets, unrealized gain (loss) on investments, share of loss of associates, deferred premium income on flow-through shares, deferred income tax expense (recovery), transaction costs and other items such as non-cash gains (losses).

Adjusted earnings (loss) per basic share is obtained from the adjusted earnings (loss) divided by the weighted average number of common shares outstanding for the period.

Forward-looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements in this press release, forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, production estimates of Osisko's assets (including increase of production), timely developments of mining properties over which Osisko has royalties, streams, offtakes and investments, management's expectations regarding Osisko's growth, results of operations, estimated future revenues, production costs, carrying value of assets, ability to continue to pay dividend, requirements for additional capital, business prospects and opportunities future demand for and fluctuation of prices of commodities (including outlook on gold, silver, diamonds, other commodities) currency markets and general market conditions In addition, statements and estimates (including data in tables) relating to mineral reserves and resources and gold equivalent ounces are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates will be realized. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions or variations (including negative variations), or that events or conditions "will", "would", "may", "could" or "should" Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, most of which are beyond the control of Osisko, and actual results may accordingly differ materially from those in forward-looking statements. Such risk factors include, without limitation: fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko; fluctuations in the value of the Canadian dollar relative to the U.S. dollar; regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies; regulations and political or economic developments in any of the countries where properties in which Osisko holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Osisko holds a royalty, stream or other interests; timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges) on any of the properties in which Osisko holds a royalty, stream or other interest; rate and timing of production differences from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest; the unfavorable outcome of any challenges or litigation relating title, permit or license with respect to any of the properties in which Osisko holds a royalty, stream or other interests or to Osisko's right thereon; differences in rate and timing of production from resource estimates or production forecasts by operators of properties in which Osisko holds a royalty, stream or other interest, including conversion from resources to reserves and ability to replace resources; business opportunities that become available to, or are pursued by Osisko; continued availability of capital and financing and general economic, market or business conditions; risks and hazards associated with the business of exploring, development and mining on any of the properties in which Osisko holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest or other uninsured risks, the integration of acquired assets and the responses of relevant governments to the COVID-19 outbreak and the effectiveness of such response and the potential impact of COVID-19 on Osisko's business, operations and financial condition. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Osisko holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production); the accuracy of public statements and disclosures made by the owners or operators of such underlying properties (including expectations for the development of underlying properties that are not yet in production); no adverse development in respect of any significant property in which Osisko holds a royalty, stream or other interest; that statements and estimates relating to mineral reserves and resources by owners and operators of the properties in which Osisko holds a royalty, stream or other interest are accurate; the Company's ongoing income and assets relating to determination of its PFIC status; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended.

For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of Osisko filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov which also provides additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward looking statements and such forward-looking statements included in this press release are not guarantee of future performance and should not be unduly relied upon. In this press release, Osisko relies on information publicly disclosed by third parties pertaining to its assets and, therefore, assumes no liability for such third party public disclosure. These statements speak only as of the date of this press release. Osisko undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.