THE CARIBOO GOLD PROJECT

Project Description

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Osisko Development, through its 100%-owned subsidiary Barkerville Gold Mines Ltd., is proposing to construct and operate the Cariboo Gold Project, an underground gold mine and associated infrastructure and activities, in the historic Cariboo Mining District in east-central BC, east and southeast of the City of Quesnel. Osisko is a Canadian company based in Wells, BC and headquartered in Montreal, Canada.

The Project is subject to review under the BC Environmental Assessment Act, 2018 (BCEAA, 2018) and the review will be led by the British Columbia Environmental Assessment Office. The Project entered the review process in fall of 2019 and has an accepted Project Description and Section 10 order under the BC Environmental Assessment Act, 2002 (BCEAA, 2002). This Project Description has also been accepted as fulfilling the requirements of the Initial Project Description for the BCEAA and the Project is now entering the Early Engagement Phase. The Project is not subject to review under the Federal Impact Assessment Act.

ENVIRONMENTAL

ASSESSMENT

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Cariboo Gold Project Highlights

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Primary Commodity:	Gold
Location:	British Columbia, Canada Easy access Strong local and First Nations support
Land Package:	2,071 km² of mineral rights
Reserves and resources^1,2:	Measured resources of 39 Koz, 240 Kt @ 5.1 g/t Indicated resources of 3,160 Koz, 21,201 Kt @ 4.6 g/t Inferred resources of 2,721 Koz, 21,640 Kt @ 3.9 g/t
Status:	Permitting – Development
Anticipated Production:	Low capex, phased growth plan to production of over 200 koz/yr³ with sufficient resources for further expansion.

Includes resources at Cariboo and Bonanza Ledge II
Please refer to Mineral Reserves and Resources section of this website for complete details
Based on throughput expansion from 4,000 tpd to 4,750 tpd as per submissions to permitting agencies

Map

Geology Foundation

Roadheader Sandvik MT-720

Project’s Mineral Reserves and Resources

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The updated mineral resource estimate for the Cariboo Gold Project includes 3.2 million ounces of gold (21.4 million tonnes grading 4.6 g/t Au) in the measured and indicated resource category, and 2.7 million ounces of gold (21.6 million tonnes grading 3.9 g/t Au) in the inferred resource category. Resource grades have some built-in dilution integrated through the process of modelling of “vein corridors” as opposed to individual veins, which, individually have gold grades that are commonly higher than 8.0 g/t. Metallurgical testing has shown that the mineralization can be effectively upgraded by flotation and x-ray transmission ore-sorting, owing to the strong association of gold with pyrite. The concentrates can then be processed at the wholly owned QR mill. This mill is currently being refurbished to treat ore from the BC Vein mine being developed near Wells.

The mineral resource estimate is built upon nearly 500,000 meters of core from the 2015 to 2019 drill campaigns, and historically verified drill data using a total of 2,218 drill holes. A strong understanding of the controls of mineralization enabled Osisko Royalties’ technical team to construct a mineral resource estimate constrained by lithology, alteration, structure and mineralization.

Cariboo Gold Project Mineral Resource Estimate at 2.1 g/t Au cut-off

Category	Deposit	Tonnes	Grade	Ounces
Category	Deposit	(‘000)	(Au g/t)	(‘000)
Measured	Bonanza Ledge	240	5.1	39
Indicated	Bonanza Ledge	86	3.9	11
	BC Vein	1,192	4.7	179
	KL	393	3.3	42
	Lowhee	381	3.7	46
	Mosquito	783	6.0	150
	Shaft	10,889	4.7	1,644
	Valley	1,744	4.5	251
	Cow	5,734	4.5	838
Total Indicated Resources		21,201	4.6	3,160
Inferred	BC Vein	472	3.9	60
	KL	1,926	2.9	181
	Lowhee	1,032	3.2	105
	Mosquito	1,348	4.8	208
	Shaft	7,913	4.2	1,081
	Valley	5,683	4.0	722
	Cow	3,276	3.5	364
Total Measured and Indicated Resources		21,441	4.6	3,200
Total Inferred Resources		21,649	3.9	2,721

Mineral Resource Estimate notes:

The independent and qualified persons for the mineral resource estimates, as defined by NI 43-101, are Christine Beausoleil, P.Geo., and Carl Pelletier, P.Geo. (InnovExplo Inc.). The effective date of the mineral resource estimate is October 5, 2020.
These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The mineral resource estimate follows CIM Definition Standards.
A total of 334 vein zones were modelled for the Cow Mountain (Cow and Valley), Island Mountain (Shaft and Mosquito), Barkerville Mountain (BC Vein, KL, and Lowhee) deposits and one (1) gold zone for Bonanza Ledge. A minimum true thickness of 2.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.
The estimate is reported for a potential underground scenario at cut-off grade of 2.1 g/t Au. The cut-off grades were calculated using a gold price of US$1,350 per ounce.

The vein corridors comprising the Cariboo resource estimate are modelled to an average depth of 350 meters, exploration drilling has intersected mineralization at depths below 700 meters from surface. The Resulting Issuer will continue with the systematic exploration to further define and expand the known zones and develop greenfield targets on the remaining land package. The Resulting Issuer intends to drill from underground infrastructure once permitting and construction of an exploration drift is complete. The robust 3D litho-structural model that defines the controls of mineralization allows the exploration team to define additional mineral resource much more efficiently, with a high hit rate (80% of the drill holes intersect potentially economic mineralization), lowering the cost per discoverable ounce. This model can be applied to the remaining 65 kilometers of strike.

In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), an updated technical report for the Cariboo will be filed on SEDAR (www.sedar.com) under Osisko Royalties’ issuer profile and, in due course, the Resulting Issuer’s issuer profile.