Osisko Mining Inc. announced that it has entered into a binding letter agreement with Bonterra Resources Inc. ("Bonterra") for a 70% exploration earn-in and joint venture on all of the Urban-Barry properties held by Bonterra (hosting the Gladiator and Barry deposits), in addition to the adjoining Duke and Lac Barry properties (collectively, the "Properties"), all located in Quebec's Eeyou Istchee James Bay region. The Duke property is currently 70% owned by Bonterra and 30% owned by Osisko, and the Lac Barry property is currently 85% owned by Bonterra and 15% owned by Gold Royalties Corp. The Properties total 496 claims over 22,508 hectares.

Under the binding letter agreement, Osisko has agreed to pay Bonterra an initial upfront payment of $1 million in cash (payable within one business day of the signing of the binding letter agreement) and an additional $4 million in cash upon the parties entering into the definitive agreement. Under the Exploration Earn-In, Osisko has agreed to fund $30 million in work expenditures over a three-year period to earn a 70% undivided interest in the Properties, in accordance with annual work expenditures $10 million in each year (which can be pre-paid at Osisko's option). After completion of the Exploration Earn-In, Osisko and Bonterra have agreed to form a joint venture entity or contractual joint venture in such form as the parties may agree, each acting reasonably, taking into consideration any tax and other factors relevant to the parties.

During the Exploration Earn-In and upon and following the formation of the joint venture, Osisko will be the operator of the Properties. Upon completion of the Exploration Earn-In and the formation of the joint venture, Osisko and Bonterra will form a management committee to provide direction to the operator on exploration programs for the Urban-Barry Properties. Osisko and Bonterra have agreed to negotiate in good faith, settle, and enter into definitive documentation providing for the Exploration Earn-In as soon as practicable following the date hereof, subject to the satisfaction of certain customary conditions precedent.

Osisko may withdraw from the Exploration Earn-In at any time upon written notice to Bonterra. In the event of an election to withdraw from the Exploration Earn-In, Osisko will forfeit all rights and interests in the Properties with no further liability, and the definitive documentation shall be immediately terminated upon such election. Barry Deposit: The Barry deposit is a shear-hosted gold deposit with multiple parallel, sub-vertical, shear zones and a second set of veins dipping 25 to 60 degrees to the southeast.

The gold mineralization consists of disseminated sulfides within the shear zones and the veins with local visible gold. The Barry deposit has been delineated over 1.4 kilometres along strike and 700 metres vertical and the deposit remains open for expansion. Gladiator Deposit: Gold mineralization at the Gladiator deposit is hosted within sheared veins of quartz-carbonate composition, with sericite, chlorite, tourmaline with pyrite, chalcopyrite, sphalerite, galena and visible gold.

The veins are divided into four groupings. The Gladiator deposit has been outlined by diamond drilling to a strike length of 1,600 metres and depth of 1,100 metres. Duke Property: The Duke property consists of 81 strategic mineral claims totaling 3,590 hectares adjacent to the Gladiator Deposit.

The Duke property mineralization is associated with multiple sub-parallel, moderately dipping to subvertical, shear hosted quartz-carbonate-chlorite veins and stockworks with minor pyrite and gold trending northeast to east west hosted within intermediate to mafic volcanics and tuffs with local felsic intrusions. Bonterra and Osisko have a 70% and 30% interest, respectively, in the Duke property.