Montreal, March 10, 2008 - Osisko Exploration Ltd. (OSK:TSX, EWX: Deutsche Boerse) is pleased to announce that it has entered into an agreement with Solidarity Fund QFL (the Fund) to obtain a $20 million unsecured debt financing for a seven-year term. The debt will carry 9.5% interest , payable in shares or cash prior to commercial production, and in cash thereafter. Principal will be repaid in a minimum of 48 equal installments commencing the earlier of commercial production or 36 months from closing.
The Company will also grant the Fund 1,100,000 warrants exercisable within 60 months at a price of $7.46. The Company may accelerate the exercise of warrants if Osisko’s shares trade at a significant premium to the exercise price during the term of the warrants.
The transaction is subject to the completion of due diligence and customary documentation, and is expected to close prior to the end of the first quarter of 2008.
Sean Roosen, President & CEO of Osisko, commented: “We are very pleased with the Fund’s financial participation in the Canadian Malartic Project. It is a strong vote of confidence on their part in the viability of our project.”
Gaétan Morin, Executive Vice-President-Investments of the Fund, commented: “The Solidarity Fund QFL is proud to support Osisko in the development of the Canadian Malartic gold project located in Abitibi. Our investment will allow Osisko to acquire some equipment necessary for a mine start-up in late 2010, which will create up to 400 jobs in the region. This world class project will contribute significantly to the Abitibi economy, and demonstrates the strong mineral potential of Quebec.”
About Osisko Osisko Exploration Ltée is currently evaluating the Canadian Malartic gold deposit and adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $180 million on hand and is carrying out an aggressive definition drilling and exploration campaign on the Canadian Malartic deposit and surrounding properties.
About the Solidarity Fund QFL With net assets of over $7.4 billion as at November 30, 2007, the Solidarity Fund QFL is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 1,696 companies. It currently has more than 575,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect over 122,000 jobs. For more information, visit
www.fondsftq.comJohn Burzynski Daniel Boase
Vice-President Corporate Development Investor Relations
Tel. (514) 735-7131 Tel. (416) 742-5600
www.osisko.com Toll Free: 1-866-580-8891
Josée Lagacé, Senior Press Relations and Communications Advisor
Solidarity Fund QFL
Tel. (514) 850-4835
jlagace@fondsftq.com