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Target Price Raised on Miner after Quebec Site Visit Indicates Resource Potential
Research Report

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Impressions from the tour and what they mean for the next resource estimate update are presented in a CIBC report.

In a June 21 research note, analyst Bryce Adams reported that CIBC raised its target price on Osisko Mining Inc. (OSK:TSX) to CA$4.50 per share from CA$3.50. In comparison, the company's stock is currently trading at around CA$3.30 per share.

The increased target comes after CIBC visited Osisko's Windfall project in Quebec for the first time on June 20 but before the H2/19 release of the updated resource estimate on it.

One of the key takeaways from the site visit, Adams said, was that it is clear upside exists "well beyond the conservative preliminary economic assessment" that outlined 8.9 million tons (8.9 Mt) at 6.68 grams per ton (6.68 g/t), or 1.9 million ounces (1.9 Moz), in light of a maiden resource of 13 Mt at 6.68 g/t, or 2.9 Moz. Thus, the analyst added, the resource estimate "has the potential to positively influence resource grade and tonnage."

Adams pointed out that the updated resource estimate for Windfall, likely to be released in Q4/19, will encompass a significant amount of infill drilling along with some expansion drilling. Also of note, a single top cut will replace the triple capping used in previous updates. "With this change and infill drilling completed, we see potential for about 15% higher resource grades," he wrote. "Furthermore, we see resource expansion and more detailed mine planning potential with the feasibility study," expected in H2/20.

The other impression of Windfall, Adams noted, was that it was bustling with activity, with about 240 people there, 22 drills running and underground development in progress.

CIBC has an Outperformer rating on Osisko.


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Disclosures from CIBC, Osisko Mining Inc., June 21, 2019

Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

Important Disclosure Footnotes for Osisko Mining Inc. (OSK)

· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Osisko Mining Inc. in the next 3 months.

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