Osisko Development undertakes review of carrying value of assets

Osisko Development has undertaken a review of the carrying value of its assets in accordance with International Financial Reporting Standards as at December 31, 2023, as part of its fourth quarter and year-end 2023 financial results preparation. As a result of the preliminary review, which is ongoing and has not been finalized, the Company believes that a non-cash impairment exists to the carrying value of its 100%-owned Trixie gold test mine, located within the Company’s wider Tintic Project in central Utah, U.S.A. Based on the information currently available, the preliminary Impairment Analysis suggests that a non-cash impairment charge totaling approximately between $80 and $120 million will be recorded against the net carrying value of Trixie. The impairment charge is primarily a result of, among other things, assumptions related to required future exploration and capital expenditures, potential mining and processing methods, and average processed gold grades related to the gold targets only. For greater clarity, the Impairment Analysis relates only to Trixie, and is unrelated to the wider Tintic Project property or the ongoing copper porphyry target drilling. Despite the expected non-cash impairment charge, management continues to believe in the highly prospective nature of the exploration package, which remains significantly underexplored in areas with known historical mining due to capital allocation constraints of its balance sheet resources. The asset impairment charge will be a non-cash item and, for the avoidance of doubt, will have no impact on Company cash flows. The Impairment Analysis will be finalized and recognized in the Company’s consolidated financial statements for the year ended December 31, 2023. The Company anticipates releasing a new mineral resource estimate for the Trixie deposit in March 2024, and its fourth quarter and year-end 2023 operating and financial results at the end of March 2024.