Osisko Gold provides update on Ermitano Mine, Island Gold District

On July 31st, 2024, First Majestic Silver Corp. (AG) announced the discovery of a significant new, vein-hosted gold and silver mineralized system at its Santa Elena property in Sonora, Mexico. This new high-grade discovery, the Navidad vein system, was made at depth adjacent to the Company’s 100%-owned and currently producing Ermitano mine. To date, seven drill holes have been completed to test the Navidad discovery; six of these holes intersected significant vein-hosted gold and silver mineralization. The closest drill hole intercept to the Ermitano mine is located approximately 500 m southwest and 750 m below existing mine development. Osisko’s 2% NSR royalty on Ermitano would include Navidad, as well as the adjacent Cumobabi property. Island Gold District: Alamos Gold’s (AGI) Island Gold District is comprised of the adjacent Island Gold and Magino Mines. On July 23rd, 2024, Alamos reported new results from underground and surface drilling at the Island Gold Mine. Exploration drilling continues to extend high-grade gold mineralization across the Island Gold Deposit, as well as within several hanging-wall and footwall structures. Delineation and definition drilling has defined wide, higher-grade zones within the Island East area. This is expected to drive further growth in high-grade Mineral Reserves and Resources with the year end update. Additionally, high-grade mineralization was intersected in the North Shear and the Webb Lake stock area, highlighting a longer-term, near-mine opportunity as a potential source of additional mill feed for the expanded Magino milling complex. Osisko owns a 1.38-3% NSR royalty on the Island Gold Mine. With the district now fully consolidated, Alamos’ expanded and accelerated Phase 3+ mine plan at Island Gold is anticipated to transition a greater proportion of production towards Osisko’s 2% and 3% NSR royalty boundaries earlier in the mine plan, as opposed to the mineral inventory covered by Osisko’s 1.38% NSR royalty. A small portion of the eastern limit of the Magino pit is covered by the 3% NSR royalty owned by Osisko, with deliveries under the royalty expected from 2030 onwards. The underground exploration potential previously highlighted by former owner Argonaut Gold on this claim is located less than 300 m from the existing Island Gold underground mine infrastructure, a portion of which is covered by Osisko’s 3% NSR royalty.