VAL-D'OR, QUÉBEC--(Marketwired - Sept. 25, 2017) - Abitibi Royalties Inc. (TSX VENTURE:RZZ)
("Abitibi Royalties" or the "Company") is pleased to announce that it has received conditional acceptance from the TSX
Venture Exchange ("TSX-V") to conduct the normal course issuer bid (the "2017 NCIB"). Under the 2017 NCIB, Abitibi Royalties
may purchase for cancellation, from time to time at its discretion, up to 569,797 of its issued and outstanding common shares
(representing 5% of Abitibi Royalties' issued and outstanding common shares as of September 19, 2017). Purchases will be
made on the open market through the facilities of the TSX-V, with TD Securities Inc. conducting the 2017 NCIB on behalf of
Abitibi Royalties.
Abitibi Royalties is of the view that repurchase of its issued shares, to be returned to treasury for cancellation, is
warranted when the trading price of the Company's shares, conservatively calculated, is below management's estimated after tax
net present value. Accordingly, the purchase for cancellation of shares by Abitibi Royalties during these times will benefit
the remaining shareholders by increasing their proportionate ownership in the Company.
The 2017 NCIB will commence on October 6, 2017, and will terminate on October 5, 2018, or such earlier time as the 2017 NCIB
is completed or at the option of Abitibi Royalties. Any shares acquired by Abitibi Royalties pursuant to the 2017 NCIB will be
cancelled.
Under the 2017 NCIB, Common Shares may be repurchased in open market transactions on the TSX-V or by such other means as may
be permitted by the TSX-V and under applicable Canadian securities laws. The price paid by Abitibi Royalties will be based on the
market price at the time of purchase and not higher than the last independent trade of a board lot (board lot = 100
shares). As part of the 2017 NCIB, Abitibi Royalties may enter into a pre-defined plan with its broker (TD Securities Inc.)
to allow for the repurchase of shares at times when Abitibi Royalties ordinarily would not be active in the market due to its own
internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with the Company's broker will
be adopted in accordance with applicable Canadian securities laws.
In accordance with TSX-V policy, purchases by Abitibi Royalties under the 2017 NCIB are limited, when aggregated with the
total of all other purchases in the preceding 30 days, to a maximum of 2% of the Company's issued and outstanding shares at the
time the purchases are made.
The actual number of Common Shares which may be purchased and the timing of such purchases will be determined by Abitibi
Royalties. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and
other factors including other options to expand the Company's portfolio of assets.
As of September 19, 2017, Abitibi Royalties has purchased an aggregate of 65,200 of its common shares through the facilities
of the TSX Venture Exchange under a normal course issuer bid (the "2016 NCIB") currently being conducted by the Issuer, which
commenced October 6, 2016 and will end on October 5, 2017. Common shares purchased to date by the Issuer under the 2016 NCIB
were purchased at an average price of $9.24 per common share. The 65,200 common shares purchased to date under the 2016 NCIB
have been returned to the Issuer's treasury and cancelled. Abitibi Royalties previously repurchased an aggregate of 77,600
of its issued common shares through the facilities of the TSX Venture Exchange under a normal course issuer bid (the "2015 NCIB")
previously conducted by the Issuer, which commenced October 6, 2015 and ended on October 5, 2016. Common shares purchased by
the Issuer under the 2015 NCIB were purchased at an average price of $3.19 per common share. The 77,600 common shares
purchased under the 2015 NCIB have been returned to the Issuer's treasury and cancelled.
About Abitibi Royalties Inc.
Abitibi Royalties holds a 3% NSR on the Odyssey North and other portions of the Odyssey Project, Jeffrey Zone, eastern portion
of the Barnat Extension and parts of the historic East Malartic Mine, where the mineralization is located inside the Malartic CHL
property and a 2% NSR on portions of the Gouldie and Charlie zones, all at the Canadian Malartic Mine near Val-d'Or, Québec. In
addition, the Company is building a portfolio of royalties on early stage properties near producing mines. The Company owns
common shares in Agnico Eagle Mines and Yamana Gold (Market value CDN$31.3 million - September 1, 2017), plus cash (Cash balance
$7.3 million - Q2 June 30, 2017) of approximately CDN$38.6 million. The Company is debt free.
Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.2% and 12.2% interest in
Abitibi Royalties, respectively.
Forward Looking Statements:
This news release contains certain statements that may be deemed "forward-looking statements". Forward looking statements
are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans",
"anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and
actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based
on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required
by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this news release.