Strong cash margin of $55.5 million and operating cash flows of $45.5 million

9% increase in quarterly dividend

Osisko Gold Royalties Ltd  (TSX:OR) (NYSE:OR) announced its consolidated financial results for the first quarter of 2023. Amounts presented are in Canadian dollars, except where otherwise noted.

Highlights – First Quarter of 2023

• 23,111 GEOs¹ earned, an increase of 27% over the first quarter of 2022 (Q1 2022 – 18,251);
• Revenues from royalties and streams of $59.6 million (Q1 2022 – $50.7 million);
• Cash flows generated by operating activities² of $45.5 million (Q1 2022 – $40.5 million);
• Cash margin³ of $55.5 million or 93% (Q1 2022 – $47.5 million or 94%)
• Net earnings² of $20.8 million, $0.11 per basic share (Q1 2022 – $16.8 million, $0.10 per basic share);
• Adjusted earnings³ of $32.6 million, $0.18 per basic share (Q1 2022 – $24.8 million, $0.15 per basic share);
• Repayment of $15.0 million under the revolving credit facility;
• Increase in the cash balance to $119.1 million as at March 31, 2023; and
• Declaration of a quarterly dividend of $0.055 per common share paid on April 14, 2023 to shareholders of record as of the close of business on March 31, 2023.

Sandeep Singh, President and CEO of Osisko commented: “We had a good start to 2023 and expect growth in deliveries over the year as we reap the benefits of ramp-ups at some of our core assets, in addition to the anticipated near-term closing of the CSA transaction, positioning Osisko for another record year.

The catalysts in our portfolio continue to intensify. Agnico Eagle’s consolidation of the Canadian Malartic mine provides multiple avenues for further production upside as it studies ways to maximize mill throughput. Further, the partnership between Gold Fields and Osisko Mining on the Windfall project is a tremendous outcome that de-risks an important asset in our portfolio. We congratulate the Osisko Mining team on a great result. More globally, our partners continue to unlock significant value across our shared asset base with an average of over 1.1 million meters drilled per year over the past six years. This value is daylighting itself across the entire portfolio highlighting the free upside embedded within our asset base.”

Subsequent to March 31, 2023

• Declaration of a quarterly dividend of $0.060 per common share (an increase of 9.1%) payable on July 14, 2023 to shareholders of record as of the close of business on June 30, 2023.

Board Renewal

The Corporation is pleased to announce that Mr. Norman MacDonald is a new independent candidate for election at its upcoming Annual Meeting of Shareholders to be held on June 7, 2023.  Mr. MacDonald has over 25 years of experience working at natural resource focused institutional investment firms.  Mr. Charles E. Page, who is nearing the end of his tenure as per the Corporation’s policies, will not be standing for re-election.  The members of the Board of Directors and management would like to express their appreciation to Mr. Page for his insight and valuable contribution over the years.

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.

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 180 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, one of Canada’s largest gold mines.

Notes:

• Gold Equivalent Ounces

GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from royalty and stream agreements are converted to gold equivalent ounces by multiplying the silver ounces earned by the average silver price for the period and dividing by the average gold price for the period. Diamonds, other metals and cash royalties are converted into gold equivalent ounces by dividing the associated revenue earned by the average gold price for the period. Offtake agreements are converted using the financial settlement equivalent divided by the average gold price for the period.

Average Metal Prices and Exchange Rate

• From continuing operations

  (3) Non-IFRS Measures

The Corporation has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including (i) cash margin (in dollars and in percentage), (ii) adjusted earnings (loss) and (iii) adjusted earnings (loss) per share. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Corporation presents cash margins and adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance with IFRS, to evaluate the Corporation’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. However, other companies may calculate these non-IFRS measures differently.

Cash Margin (in dollars and in percentage of revenues)

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

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 assets, unrealized gain (loss) on investments, share of income (loss) of associates, 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.

Osisko Gold Royalties Ltd
Consolidated Balance Sheets
As at March 31, 2023 and December 31, 2022
(Unaudited)

(tabular amounts expressed in thousands of Canadian dollars)

Osisko Gold Royalties Ltd
Consolidated Statements of Income (Loss)
For the three months ended March 31, 2023 and 2022
(Unaudited)

(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

Osisko Gold Royalties Ltd
Consolidated Statements of Cash Flows
For the three months ended March 31, 2023 and 2022
(Unaudited)

(tabular amounts expressed in thousands of Canadian dollars)