Osisko Development Corp V.ODV.WT.B

Corporate Update and Reports Second Quarter 2021 Results

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MONTREAL, Aug. 09, 2021 (GLOBE NEWSWIRE) -- Osisko Development Corp. ("Osisko Development "or the "Company") (ODV: TSX-V) is pleased to provide results for the second quarter as well as an update on each of the company’s development projects.

2021 Achievements and Milestones at the Cariboo Gold Project (“Cariboo”):

• 93,000 meters of exploration and infill drilling occurred at Cariboo as of June 30th 2021.
• The mine operations commenced at Bonanza Ledge II (“BL2”) with over 43,000 tonnes of development ore mined.
• The Quesnel River (“QR”) mill was re-commissioned.
• The Corporation poured its first gold in the second quarter.
• The final application for the Environment Assessment Certificate for Cariboo was submitted.
• The following key project expenditures were made in 2021 at Cariboo:
  • New Water Treatment Plants at BL2 and Cariboo and at the QR Mill.
  • New concentrator equipment with 7,500 tonnes per day capacity.
  • New exploration camp and core processing facility, new housing in Wells and road upgrades.
  • The QR mill was upgraded in order to process ore from BL2 and future ore from Cariboo.
• The Cow Mountain permit for a 10,000 tonne underground bulk sample was granted.
• The Sandvik roadheader was commissioned at BL2 and is now operating to develop the portal at Cow Mountain for underground and bulk sample access.
• The Steinhert Optical and XRT ore sorter was received on site to begin test work with Cow Mountain Bulk Sample.
• Osisko Development continues to provide support for local infrastructure in the town of Wells, The Barkerville Historic Town and Park and maintaining strong relationships with its partners the Lhtako Dene, Xatsull, and Williams Lake First Nations.

2021 Achievements and Milestones at the San Antonio Gold Project

• 9,900 meters of infill drilling were completed as of June 30th 2021 of a planned two phase 45,000 meter drilling campaign.
• The Corporation continues preparations to commence processing of the large stockpile on site.
• Capital investments have been made for the San Antonio project including comminution and conveyor equipment that is in transit to the site in Mexico.
• The heap leach permitting is also on schedule and anticipate granting of the permit by the end of the year.

“We are pleased by the progress achieved to date at both Cariboo and San Antonio. The ongoing work at Cariboo has advanced our Environmental Assessment and Feasibility Study bringing us closer to our major milestones. At San Antonio, we are preparing to process the stockpile and conducting exploration activities. We’ve encountered some challenges this year such as supply chain constraints and the spring thaw (freshet) at Cariboo that impacted our mining and exploration activities. However, we have overcome these challenges and reacted proactively to ensure that we meet our current and long-term objectives”, commented Sean Roosen, Chairman and Chief Executive Officer of Osisko Development Corp.

Second Quarter 2021 Financial Results Highlights

• The cash position of the Company as at June 30, 2021 was approximately $145 million.
• The market value of equity investments was CAD$103.9 million as at June 30th 2021.
• The Company realized its first revenues from gold and silver of approximately $0.8 million.
• The Company divested of certain investments from its portfolio generating gross proceeds of $8.3 million.
• The Company incurred a net loss of $41.4M during the quarter.

The net loss is mostly due to the recognition of a non-cash impairment in the amount of $40.5 million consisting of two amounts; a) $36.1 million for its short-life BL2 mine triggered by operational challenges incurred during the year and, b) $4.4 million for the re-evaluation of the stockpile at the San Antonio project due to a decline in the gold price quarter over quarter.

Consolidated Financial Statements
Osisko Development’s consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2021 are available on the Company's website at www.osiskodev.com, and on SEDAR under the Company's profile at www.sedar.com.

Conference Call
Osisko Development will host a conference call on August 10th 2021, at 9:00am, Eastern Time to provide a corporate update.

Dial-in Numbers:
North American Toll-Free: 1 [phone]
Local and International: 1 [phone]
Access Code: 8787742

Replay also available on our website www.osiskodev.com

Qualified Persons Statement
Per National Instrument 43-101 Standards of Disclosure for Mineral Projects, Maggie Layman, P.Geo. Vice President Exploration of Osisko Development Corp., is a Qualified Person and has prepared, validated, and approved the technical and scientific content of this news release.