Document:

Exhibit 4.1 

 

 

 

 

ANNUAL INFORMATION
FORM

 

FOR THE FISCAL YEAR ENDED

DECEMBER 31, 2021

 

DATED AS OF MARCH 17, 2022

 

 

    

     

    

 

TABLE OF CONTENTS

 

	General
    matters	3
	CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING STATEMENTs	3
	CAUTIONARY
    NOTE TO U.S. INVESTORS REGARDING  PREPARATION OF FINANCIAL INFORMATION	4
	CAUTIONARY
    NOTE TO U.S. INVESTORS REGARDING  THE USE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES	5
	Exchange
    Rate Data	6
	GLOSSARY
    OF TERMS	7
	Corporate
    Structure	15
	DESCRIPTION
    OF BUSINESS	16
	General
    Development of Osisko’s Business	26
	RISK
    FACTORS	32
	Material
    MINERAL Project	48
	Dividends	49
	Description
    of capital structure	50
	MARKET
    FOR SECURITIES	53
	Directors
    and Officers	56
	Legal
    Proceedings and regulatory actions	63
	Interest
    of Management and Others in Material Transactions	63
	Transfer
    Agents and Registrars	63
	Material
    Contracts	64
	Interests
    Of Experts	64
	ADDITIONAL
    INFORMATION	64
	Audit
    AND RISK Committee	64
	SCHEDULE
    A AUDIT AND RISK COMMITTEE CHARTER	68
	SCHEDULE
    B - TECHNICAL INFORMATION UNDERLYING THE CANADIAN MALARTIC PROPERTY	74

 

    2

     

    

 

General matters

 

The
information contained in this Annual Information Form, unless otherwise indicated, is given as of December 31, 2021, with
specific updates post-financial year end where specifically indicated. More current information may be available on our public website
at www.osiskogr.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. In addition, we generally maintain supporting
materials on our website which may assist in reviewing (but are not to be considered part of) this Annual Information Form.

 

All capitalized terms used in this Annual Information
Form and not defined herein have the meaning ascribed in the “Glossary of Terms” or elsewhere in this Annual Information Form.

 

Unless otherwise noted or the context otherwise
indicates, the term “Osisko” refers to Osisko Gold Royalties Ltd and its subsidiaries.

 

For reporting purposes, Osisko presents its financial
statements in Canadian dollars and in conformity with International Financial Reporting Standards as issued by the International Accounting
Standards Board (“IFRS”).

 

Unless otherwise indicated herein, references
to “$”, “C$” or “Canadian dollars” are to Canadian dollars, and references to “US$” or
 “U.S. dollars” are to United States dollars. See “Exchange Rate Data”. See also “Cautionary Statement Regarding
Forward-Looking Statements”.

 

CAUTIONARY STATEMENT
REGARDING FORWARD-LOOKING STATEMENTs

 

Certain statements contained in this Annual
Information Form may be deemed “forward looking information” and “forward-looking statements” within the
meaning of applicable Canadian Securities Laws and the United States Private Securities Litigation Reform Act of 1995
(collectively, the “forward-looking statements”). All statements in this Annual Information Form, other than
statements of historical fact, that address future events, developments or performance that Osisko expects to occur including
management’s expectations regarding Osisko’s growth, results of operations, estimated future revenues, requirements for
additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue estimates,
future demand for and prices of commodities, business prospects and opportunities and outlook on gold, silver, diamonds, other
commodities and currency markets are forward-looking statements. In addition, statements (including data in tables) relating to
mineral reserves and mineral resources and gold equivalent ounces are forward-looking statements, as they involve implied
assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates will be realized.
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”, “scheduled” and similar expressions or
variations (including negative variations), or that events or conditions “will”, “would”, “may”,
 “could” or “should” occur including, without limitation, the performance of the assets of Osisko, any
estimate of gold equivalent ounces to be received, the realization of the anticipated benefits deriving from Osisko’s
investments and transactions, the actual results of exploration and development activities and Osisko’s ability to seize
future opportunities. Although Osisko believes the expectations expressed in such forward-looking statements are based on reasonable
assumptions, such statements involve known and unknown risks, uncertainties and other factors and are not guarantees of future
performance and actual results may accordingly differ materially from those in forward-looking statements. Factors that could cause
the actual results to differ materially from those in forward-looking statements include, without limitation: fluctuations in the
prices of the commodities that drive royalties, streams, offtakes and investments held by Osisko; fluctuations in the value of the
Canadian dollar relative to the U.S. dollar; regulatory changes in national and local government, including permitting and licensing
regimes and taxation policies; whether or not Osisko is determined to have “passive foreign investment company” status
(“PFIC”) as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended;
regulations and political or economic developments in any of the countries where properties in which Osisko holds royalties, streams
or other interests are located or through which they are held; risks related to the operators of the properties in which Osisko
holds royalties, streams or other interests; influence of macroeconomic developments; the unfavorable outcome of litigation relating
to any of the properties in which Osisko holds a royalty, stream or other interests; business opportunities that become available
to, or are pursued by Osisko; continued availability of capital and financing and general economic, market or business conditions;
litigation; title, permit or license disputes related to interests on any of the properties in which Osisko holds royalties, streams
or other interests; development, permitting, infrastructure, operating or technical difficulties on any of the properties in which
Osisko holds royalties, stream or other interests; rate and timing of production differences from resource estimates or production
forecasts by operators of properties in which Osisko holds royalties, streams or other interests; risks and hazards associated with
the business of exploring, development and mining on any of the properties in which Osisko holds royalties, streams or other
interests, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins,
flooding and other natural disasters or civil unrest or other uninsured risks, the responses of relevant governments to the COVID-19
outbreak and the effectiveness of such response and the potential impact of COVID-19 on Osisko’s business, operations and
financial condition and the integration of acquired assets. The forward-looking statements contained in this Annual Information Form
are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation by the
operators of the properties in which Osisko holds royalties, streams or other interests by the operators of such properties in a
manner consistent with past practice; the accuracy of public statements and disclosures made by the operators of such underlying
properties; the absence of material adverse change in the market price of the commodities that underlie the asset portfolio; Osisko’s
ongoing income and assets relating to determination of its PFIC status; no adverse development in respect of any significant
property in which Osisko holds royalties, streams or other interests; the accuracy of publicly disclosed expectations for the
development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other
factors that could cause actions, events or results to differ from those anticipated, estimated or intended.

 

    3

     

    

 

Although Osisko has attempted to identify important
factors that could cause actual plans, actions, events or results to differ materially from those described in forward-looking statements,
there may be other factors that cause plans, actions, events or results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be accurate, as actual plans, results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

 

Certain of the forward-looking statements and
other information contained herein concerning the mining industry and Osisko’s general expectations concerning the mining industry
are based on estimates prepared by Osisko using data from publicly available industry sources as well as from market research and industry
analysis and on assumptions based on data and knowledge of this industry which Osisko believes to be reasonable. However, although generally
indicative of relative market positions, market shares and performance characteristics, this data is inherently imprecise. While Osisko
is not aware of any misstatement regarding any industry data presented herein, the mining industry involves risks and uncertainties that
are subject to change based on various factors.

 

The readers are cautioned not to place undue reliance
on forward-looking statements. Osisko undertakes no obligation to update any of the forward-looking statements in this Annual Information
Form, except as required by law. Unless otherwise indicated, these statements are made as of the date of this Annual Information Form.

 

CAUTIONARY NOTE
TO U.S. INVESTORS REGARDING

PREPARATION OF FINANCIAL INFORMATION

 

As a Canadian company, Osisko prepares its financial
statements in accordance with IFRS. Consequently, all of the financial statements and financial information of Osisko is prepared in accordance
with IFRS, which are materially different than financial statements and financial information prepared in accordance with U.S. generally
accepted accounting principles.

 

    4

     

    

 

CAUTIONARY NOTE
TO U.S. INVESTORS REGARDING

THE USE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

 

Osisko is subject to the reporting requirements
of the applicable Canadian securities laws, and as a result reports information regarding mineral properties, mineralization and estimates
of mineral reserves and mineral resources in accordance Canadian reporting requirements, which are governed by Canadian National Instrument
43-101 Standards of Disclosure for Mineral Projects. As such, the information contained in this Annual Information Form concerning mineral
properties, mineralization and estimates of mineral reserves and mineral resources is not comparable to similar information made public
by U.S. companies subject to the reporting and disclosure requirements of the U.S. Securities and Exchange Commission.

 

CAUTIONARY STATEMENT REGARDING THIRD PARTY INFORMATION

 

The disclosure in this Annual Information Form
relating to the properties in which Osisko holds royalties, streams or other interests and the operations on such properties is based
on information publicly disclosed by the owners or operators of these properties and information or data available in the public domain
as at March 17, 2022 (except where stated otherwise), and none of this information or data has been independently verified by Osisko.
As a holder of royalties, streams and other interests, Osisko generally has limited, if any, access to the properties included in or relating
to its asset portfolio. Therefore, in preparing disclosure pertaining to the properties in which Osisko holds royalties, streams or other
interests and the operations on such properties, Osisko is dependent on information publicly disclosed by the owners or operators of these
properties and information or data available in the public domain and generally has limited or no ability to independently verify such
information or data. Although Osisko has no knowledge that such information or data is incomplete or inaccurate, there can be no assurance
that such third party information or data is complete or accurate. Additionally, some information or data publicly reported by the owners
or operators may relate to a larger property than the area covered by the royalties, streams or other interests of Osisko. Sometimes,
the royalties, streams or other interests of Osisko cover less than 100% and sometimes only a portion of the publicly reported mineral
reserves, mineral resources or production of a property.

 

NON-IFRS FINANCIAL PERFORMANCE MEASURES

 

The Corporation has included certain performance
measures in this Annual Information Form that do not have any standardized meaning prescribed by IFRS including (i) cash margin (in dollars
and in percentage or revenues), (ii) adjusted earnings (loss) and (iii) adjusted earnings (loss) per basic share. The presentation of
these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These measures are not necessarily indicative of operating profit or cash flow
from operations as determined under IFRS. As Osisko’s operations are primarily focused on precious metals, the Corporation presents
cash margins and adjusted earnings as it believes that certain investors use this information, together with measures determined in accordance
with IFRS, to evaluate the Corporation’s performance in comparison to other companies in the precious metals mining industry who
present results on a similar basis. However, other companies may calculate these non-IFRS measures differently. For information regarding
the non-IFRS financial measures used by Osisko, see “Non-IFRS Financial Performance Measures” in Osisko’s management’s
discussion and analysis for the year ended December 31, 2021, which section is incorporated by reference herein. The financial statements
and management’s discussion and analysis of Osisko are available on SEDAR at www.sedar.com.

 

    5

     

    

 

Exchange Rate Data

 

The following table sets forth the high and low
exchange rates for one U.S. dollar expressed in Canadian dollars for each period indicated, the average of the exchange rates for each
period indicated and the exchange rate at the end of each such period, based upon the exchange rates provided by the Bank of Canada:

 

	 	 	Year Ended December 31	 
	 	 	2021	 	 	2020	 	 	2019	 
	 	 	($C)	 	 	($C)	 	 	($C)	 
	High	 	 	1.2942	 	 	 	1.4496	 	 	 	1.3600	 
	Low	 	 	1.2040	 	 	 	1.2718	 	 	 	1.2988	 
	Average rate for period	 	 	1.2535	 	 	 	1.3415	 	 	 	1.3269	 
	Rate at end of period	 	 	1.2678	 	 	 	1.2732	 	 	 	1.2988	 

 

On March 16, 2022, the exchange rate for one U.S.
dollar expressed in Canadian dollars as reported by the Bank of Canada, was 1.2721.

 

    6

     

    

 

GLOSSARY OF TERMS

 

In this Annual Information Form, the following
capitalized words and terms shall have the following meanings:

 

“2021 NCIB Program” means the
Corporation’s Normal Course Issuer Bid program for 2021.

 

“2022 NCIB Program” means the
Corporation’s Normal Course Issuer Bid program for 2022.

 

“affiliate” has the meaning
ascribed in the Securities Act (Québec), unless stated otherwise.

 

“Ag” is the chemical symbol
for silver.

 

“Agnico” means Agnico Eagle
Mines Limited.

 

“associate” has the meaning
ascribed in the Securities Act (Québec), unless stated otherwise.

 

“Au” is the chemical symbol
for gold.

 

“BAPE” means the Bureau
des Audiences Publiques sur l’Environnement.

 

“Barkerville” means Barkerville
Gold Mines Ltd.

 

“Barkerville Arrangement Effective Date”
means November 21, 2019.

 

“Barkerville Options” means
the options to purchase Barkerville Shares granted under the Barkerville stock option plan that were outstanding on the Barkerville Arrangement
Effective Date.

 

“Barkerville Shares” means
common shares in the capital of Barkerville.

 

“Bonanza Ledge Phase II Property”
means the mineral property and high grade deposit located within the Cariboo Gold Project (in the Cariboo Gold District of British Columbia).

 

“Canadian Malartic Properties”
means the properties that are subject to the Canadian Malartic Royalty.

 

“Canadian Malartic Report”
has the meaning ascribed under “Schedule B - Technical Information Underlying the Canadian Malartic Property”.

 

“Canadian Malartic Royalty”
has the meaning ascribed under the heading “Material Mineral Project - The Canadian Malartic Royalty”.

 

“Canadian Malartic Royalty Agreement”
means the amended and restated net smelter return royalty agreement dated June 16, 2014 between Osisko and Canadian Malartic GP.

 

“Cariboo Gold Project” means
the mineral property located in the historical Wells-Barkerville mining camp (also known as the Cariboo Gold District) of British Columbia
and extending for approximately 60 km from northwest to southeast.

 

“CDPQ” means Caisse de dépôt
et placement du Québec.

 

“CIM” means the Canadian Institute
of Mining, Metallurgy and Petroleum.

 

“Coulon Project” means the
Coulon zinc project, a mineral exploration property located in northern Québec.

 

“CRA” means the Canada Revenue
Agency.

 

    7

     

    

 

“Credit Facility” means the
revolving credit facility of $550 million with a syndicate of financial institutions with a maturity date of July 30, 2025, including
an additional uncommitted accordion of up to $100 million for a total availability of up to $650 million.

 

“CSA Mine” has the meaning ascribed under “Description
of Business”.

 

“Cu” is the chemical symbol
for copper.

 

“Debentures” has the meaning
ascribed under the heading “Description of Capital Structure - Debentures”.

 

“Dividend Reinvestment Plan”
means Osisko’s dividend reinvestment plan.

 

“EDGAR” means the Electronic
Data Gathering, Analysis and Retrieval system.

 

“Falco” means Falco Resources
Ltd.

 

“Falco Convertible Loan” has
the meaning ascribed under the heading “General Development of Osisko’s Business - Falco Silver Stream”.

 

“Falco Maturity Extension”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Falco Silver Stream”.

 

“Falco Secured Loan” has the
meaning ascribed under the heading “General Development of Osisko’s Business - Falco Silver Stream”.

 

“Falco Shares” means common
shares in the share capital of Falco.

 

“Falco Silver Stream” has the
meaning ascribed under the heading “General Development of Osisko’s Business - Falco Silver Stream”.

 

“Falco Warrants” means common
share purchase warrants of Falco.

 

“forward-looking statements”
has the meaning ascribed under the heading “Cautionary Statement Regarding Forward-Looking Statements”.

 

“GEOs” means gold equivalent
ounces.

 

“GoGold” means GoGold Resources
Corp.

 

“Guerrero Properties” means
the mineral exploration properties consisting of approximately 900,000 hectares located in the Guerrero Gold Belt in Guerrero, Mexico.

 “g/t” means gram per tonne.

 

“ha” means hectare.

 

“Horne 5 Project” means Falco’s
development-stage project located in Rouyn-Noranda, Québec.

 

“IFRS” means International
Financial Reporting Standards adopted by the International Accounting Standards Board, as updated and amended from time to time.

 

“IT” means information technology.

 

“James Bay Properties” means
a group of 26 mineral exploration properties located in the James Bay area of Québec (excluding the Coulon Project).

 

“k” means thousand.

 

“kg” means kilogram.

 

“km” means kilometre.

 

    8

     

    

 

“km2” means square kilometre.

 

“kV” means kilovolt.

 

“l” means litre.

 

“L” means Mine level (depth
below surface in metres).

 

‘‘LLCFZ’’ means
Larder Lake-Cadillac Fault Zone.

 

“Lydian” means Lydian International
Limited.

 

“LOM” means life-of-mine.

 

“m” means metre.

 

“m2” means square metre.

 

“m3” means cubic
metre.

 

“MAC” means Metals Acquisition
Corp.

 

“MAC Silver Stream” has the meaning ascribed under
“Description of Business”.

 

“Mantos” means Mantos Copper
S.A.

 

“Mantos Blancos Mine” means
the Mantos Blancos copper mine located in northern Chile operated by Mantos.

 

“mineralization” means rock
containing an undetermined amount of minerals or metals.

 

“mm” means millimetre.

 

“Mt” means million tonnes (metric
tons).

 

“NI 43-101” means National
Instrument 43-101 - Standards of Disclosure for Mineral Projects (or Regulation 43-101 respecting Standards of Disclosure for
Mineral Projects in the Province of Québec).

 

“NI 51-102” means National
Instrument 51-102 - Continuous Disclosure Obligations (or Regulation 51-102 respecting Continuous Disclosure Obligations
in the Province of Québec).

 

“NI 52-110” means National
Instrument 52-110 - Audit Committees (or Regulation 52-110 respecting Audit Committees in the Province of Québec).

 

“NSR” means net smelter return.

 

“NYSE” means the New York Stock
Exchange.

 

“OBL” means Osisko Bermuda
Limited, a wholly-owned subsidiary of Osisko.

 

“Odyssey Study” has the meaning
ascribed under “Schedule B - Technical Information Underlying the Canadian Malartic Property”.

 

“ODV Brokered Offered Securities”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Brokered Offering” has
the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Brokered Release Condition”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

    9

     

    

 

“ODV Brokered Subscription Receipts”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Brokered Units” has the
meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Non-Brokered Offering”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Non-Brokered Release Condition”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Non-Brokered Subscription Receipts”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Non-Brokered Units” has
the meaning ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Shares” means common shares
in the share capital of Osisko Development.

 

“ODV Transaction” has the meaning
ascribed under the heading “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.

 

“ODV Warrants” means the common
share purchase warrants of Osisko Development.

 

“Orion Aggregate Purchase
Price” has the meaning ascribed under the heading “General Development of Osisko’s Business - Share Repurchase and
Secondary Offering”.

 

“Orion Secondary Offering”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Share Repurchase and Secondary Offering”.

 

“Orion Share Repurchase” has
the meaning ascribed under the heading “General Development of Osisko’s Business - Share Repurchase and Secondary Offering”.

 

“Osisko” or “Corporation”
means Osisko Gold Royalties Ltd.

 

“Osisko Board” means the board
of directors of Osisko, as the same is constituted from time to time.

 

“Osisko Development” means
Osisko Development Corp.

 

“Osisko DSUs” means Osisko’s
Deferred Share Units granted under the DSU Plan.

 

“Osisko DSU Plan” means Osisko’s
Deferred Share Unit Plan.

 

“Osisko Mining” means Osisko
Mining Inc.

 

“Osisko Options” means the
outstanding options to purchase Osisko Shares granted under Osisko Stock Option Plan or otherwise granted by Osisko.

 

“Osisko Preferred Shares” has
the meaning ascribed under the heading “Description of Capital Structure - Osisko Preferred Shares”.

 

“Osisko RSUs” means Osisko’s
Restricted Share Units granted under the Osisko RSU Plan.

 

“Osisko RSU Plan” means Osisko’s
Restricted Share Unit Plan.

 

“Osisko Shareholders” means
the holders of Osisko Shares.

 

“Osisko Shares” means common
shares in the share capital of Osisko.

 

    10

     

    

 

 

“Osisko Stock Option Plan”
means the stock option plan of Osisko.

 

“Osisko Warrants” means the
common share purchase warrants of Osisko.

 

“oz” means ounce.

 

“Pb” is the chemical symbol
for lead.

 

“PEA” means preliminary economic
assessment.

 

“PFIC” means “passive
foreign investment company” status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended.

 

“Pretium” means, collectively,
Pretium Exploration and Pretium Resources.

 

“Pretium Exploration” means
Pretium Exploration Inc.

 

“Pretium Resources” means Pretium
Resources Inc.

 

“QA/QC” means quality assurance
and quality control.

 

“QBCA” means the Business
Corporations Act (Québec) and the regulations made thereunder.

 

“qualified person” has the
meaning ascribed in NI 43-101.

 

“Renard Diamond Mine” means
the Renard diamond mine located in north-central Québec, which is held by SDCI.

 

“Renard Stream” means a 9.6%
diamond stream on the Renard Diamond Mine.

 

“Renard Streamers” means Osisko
along with CDPQ, Triple Flag Mining Finance Bermuda Ltd., Albion Exploration Fund, LLC and Washington State Investment Board.

 

“Replacement Osisko Options”
means, collectively, the options to purchase Osisko Shares that were granted by Osisko on the Barkerville Arrangement Effective Date in
exchange for Barkerville Options.

 

“ROM” means run-of-mine.

 

“San Antonio Gold Project”
means the mineral property located in Sonora, Mexico.

 “SDCI” means Stornoway Diamonds (Canada) Inc., the current holder of the Renard Diamond Mine.

 

“SEC” means the United States
Securities and Exchange Commission.

 

“SEDAR” means the System for
Electronic Document Analysis and Retrieval.

 

“SOX” means the Sarbanes-Oxley
Act of 2002.

 

“Stornoway” means Stornoway
Diamond Corporation or, if the context requires, SDCI.

 

“Stornoway Bridge Facility”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Renard Stream”.

 

“Stornoway Credit Bid Transaction”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Renard Stream”.

 

“Stornoway Secured Creditors”
has the meaning ascribed under the heading “General Development of Osisko’s Business - Renard Stream”.

 

    11

     

    

 

“t” means tonne.

 

“Taseko” means Taseko Mines
Limited.

 

“Tintic Agreements” has the
meaning ascribed under the “General Development of Osisko’s Business - Highlights subsequent to 2021”.

 

“Tocantinzinho” means the Tocantinzinho
gold project.

 

“tpd” means tonnes per day.

 

“TSX” means the Toronto Stock
Exchange.

 

“TSXV” means the TSX Venture
Exchange.

 

“U.S. Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended.

 

“V” means volts.

 

“Victoria” means Victoria Gold
Corp.

 

“Yamana” means Yamana Gold
Inc.

 

“Zn” is the chemical symbol
for zinc.

 

NI 43-101 Definitions

 

	“Indicated Mineral Resource”	Refers to that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. 

 

	“Inferred Mineral Resource”	Refers to that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. 

 

	“Measured Mineral Resource”	Refers to that part of a Mineral Resource for which quantity grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. 

 

    12

     

    

 

	“Mineral Reserve”	A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. 

 

	 	Mineral Reserves are categorized as follows on the basis of the degree of confidence in the estimate of the quantity and grade of the deposit: probable Mineral Reserves and proven Mineral Reserves. 

 

	“Mineral Resource”	A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. 

 

	“Modifying Factors”	Modifying Factors are considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
	 	 
	“NI 43-101”	National Instrument 43-101 - Standards of Disclosure for Mineral Projects. An instrument developed by the Canadian Securities Administrators (an umbrella group of Canada’s provincial and territorial securities regulators) that governs public disclosure by mining and mineral exploration issuers. The instrument establishes certain standards for all public disclosure of scientific and technical information concerning mineral projects. 

 

	“pre-feasibility study” 

and “feasibility study”	Refers to a comprehensive study of the viability of a mineral project that has advanced to a stage where the mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, has been established and an effective method of mineral processing has been determined, and includes a financial analysis based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental factors and the evaluation of other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the Mineral Resource may be classified as a Mineral Reserve. Feasibility studies have a greater degree of confidence associated with all aspects. 

 

	“preliminary 

assessment”	The term “preliminary assessment” or “preliminary economic assessment”, commonly referred to as a scoping study, means a study that includes an economic analysis of the potential viability of Mineral Resources taken at an early stage of the project prior to the completion of a preliminary feasibility study. 

	“Probable Mineral 

Reserve”	Refers to an economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

 

	“Proven Mineral 

Reserve”	A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

 

    13

     

    

 

	“qualified person”	Means an individual who (a) is an engineer or geoscientist with at least five years experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these; (b) has experience relevant to the subject matter of the mineral project and the technical report; and (c) is a member in good standing of a professional association that, among other things, is self-regulatory, has been given authority by statute, admits members based on their qualifications and experience, requires compliance with professional standards of competence and ethics and has disciplinary powers to suspend or expel a member, as defined in NI 43-101. 

 

The terms “Mineral Resource”, “Measured
Mineral Resource”, “Modifying Factors”, “Indicated Mineral Resource”, “Inferred Mineral Resource”,
 “Probable Mineral Reserve” and “Proven Mineral Reserve” used are Canadian mining terms as defined in accordance
with NI 43 101 under the guidelines set out in the CIM Standards.

 

Conversion Factors

 

	
    To Convert From

 

	 	
    To

 

	 	
    Multiply By

 

	Feet	 	Metres	 	0.305
	Metres	 	Feet	 	3.281
	Acres	 	Hectares	 	0.405
	Hectares	 	Acres	 	2.471
	Grams	 	Ounces (Troy)	 	0.03215
	Grams/Tonnes	 	Ounces (Troy)/Short Ton	 	0.02917
	Tonnes (metric)	 	Pounds	 	2,205
	Tonnes (metric)	 	Short Tons	 	1.1023

 

    14

     

    

 

Corporate Structure

 

Name, Address and Incorporation

 

Osisko was incorporated on April 29, 2014 under
the name “Osisko Gold Royalties Ltd / Redevances Aurifères Osisko ltée” pursuant to the QBCA, as a wholly-owned
subsidiary of Osisko Mining Corporation (now Canadian Malartic Corporation). On January 1, 2017, Osisko and its wholly-owned subsidiary
Osisko Exploration James Bay Inc. amalgamated under the name “Osisko Gold Royalties Ltd / Redevances Aurifères Osisko ltée”.

 

The Osisko Shares are listed on the TSX and on
the NYSE under the symbol “OR”.

 

Warrants of Osisko were listed on the TSX under
the symbol OR.WT until their expiration on February 18, 2022.

 

The Debentures
are listed on the TSX under the symbol “OR.DB” (conversion price $22.89 per Osisko Share and conversion rate of 43.6872 Osisko
Shares per $1,000 principal amount of Debentures).

 

As
of the date of this Annual Information Form, Osisko is a reporting issuer in British Columbia, Alberta, Saskatchewan, Manitoba,
Ontario, Québec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland. Osisko is also a reporting issuer in the United
States.

 

Osisko’s head office is located at 1100
avenue des Canadiens-de-Montréal, Suite 300, Montreal, Québec H3B 2S2.

 

Intercorporate Relationships

 

As of December 31, 2021, Osisko’s only material
subsidiaries for the purposes of NI 51-102 were: (a) OBL, a wholly-owned subsidiary of Osisko; and (b) Osisko Development, a subsidiary
of the Corporation held at 75.1% by the Corporation as at December 31, 2021. As of March 17, 2022, following closing on March 2, 2022
of the ODV Brokered Offering and closing on March 4, 2022 of the first tranche of the ODV Non-Brokered Offering, Osisko held
an interest of 70.0% in Osisko Development. See “General Development of Osisko’s Business - Launch of Osisko Development Corp.”.
The following organizational chart reflect the ownership of the Corporation in its material subsidiaries as at March 17, 2022.

 

 

 

    15

     

    

 

DESCRIPTION OF
BUSINESS

 

Description of the Business

 

Osisko is engaged in the business of acquiring
and managing precious metals and other high-quality royalties, streams and other interests in Canada and worldwide and is focused on maximizing
returns for its shareholders by growing its asset base, both organically and through accretive acquisitions. Osisko owns a portfolio of
royalties, streams, offtakes, options on royalty/stream financings and exclusive rights to participate in future royalty/stream financings
on various projects. The Corporation’s cornerstone asset is a 5% NSR royalty on the Canadian Malartic mine, located in Canada.

 

The Corporation was formed on April 29, 2014 in
conjunction with the acquisition of Osisko Mining Corporation, which held the Canadian Malartic mine and other assets in development,
by a partnership formed by Agnico Eagle Mines Limited and Yamana Gold Inc. Between 2014 and 2020, the Corporation completed the acquisition
of Virginia Mines Inc. in February 2015, and acquired a portfolio of 74 assets from Orion Mine Finance (and related funds) in July 2017
to increase its total number of assets at that time to 135 royalties, streams and precious metal offtakes. In November 2020, Osisko completed
the spin out transaction of its mining assets and certain equity investments to Osisko Development, which is now engaged in the exploration,
evaluation and development of mining projects. The ODV Shares began trading on the TSX Venture Exchange on December 2, 2020, and its main
asset is the Cariboo Gold Project located in British Columbia, Canada. Osisko expects the advancement of the assets held by Osisko Development
to be funded through the public markets such that Osisko’s ownership in Osisko Development will be diluted as Osisko Development's
assets are advanced.

 

Business Model and Strategy

 

Osisko's main focus is on high quality, long-life
precious metals assets located in favourable jurisdictions and operated by established mining companies, as Osisko believes these assets
provide the best risk/return profile. The Corporation also evaluates and invests in opportunities in other commodities and jurisdictions.
Given that a core aspect of the Corporation's business is the ability to compete for investment opportunities, Osisko plans to maintain
a strong balance sheet and ability to deploy capital.

 

Highlights - 2021 

 

		· 	80,000
gold equivalent ounces (GEOs1) earned, excluding 9,210 GEOs earned from the Renard
diamond stream (compared to 66,113 in 2019, excluding 1,754 GEOs earned from the Renard diamond stream), in line with guidance.

  

		· 	Record revenues from royalties and streams of
$199.6 million ($156.6 million in 2020).

 

		·	Record operating cash flows generated by the
royalties and streams segment of $153.2 million ($114.0 million in 2020).

 

		·	In February 2021, Osisko repaid a $50 million
convertible debenture in favor of Investissement Québec and drew the Credit Facility by the same amount, thereby reducing the interest
rate payable by approximately 1.5% per annum.

 

 

 

		1	GEOs are calculated on a quarterly basis and include royalties, streams and offtakes. Silver earned from
royalty and stream agreements was converted to gold equivalent ounces by multiplying the silver ounces by the average silver price for
the period and dividing by the average gold price for the period. Diamonds, other metals and cash royalties were converted into gold equivalent
ounces by dividing the associated revenue by the average gold price for the period. Offtake agreements were converted using the financial
settlement equivalent divided by the average gold price for the period. Refer to the “Portfolio of Royalty, Stream and Other Interests”
section for average metal prices used.

 

    16

     

    

 

		·	Announcement by Agnico and Yamana
of a positive construction decision for the Odyssey underground mine project. The preliminary economic study highlights a total of 7.29
million gold ounces of resources (6.18Mt at
2.07 g/t Au indicated resources and 75.9Mt at 2.82 g/t Au inferred resources). Underground mine production
is planned to start in 2023 and is expected to ramp up to an average of 545,400 gold ounces per year from 2029 to 2039, thereby extending
the life of mine.

 

		·	Investments and strategic partnership with Carbon
Streaming Corporation to promote global decarbonization and biodiversity efforts through carbon credit streaming transactions.

 

		·	Publication of the inaugural ESG report and announcement
of commitment to the United Nations Global Compact.

 

		·	In April, 2021,
Osisko acquired six royalties and one precious metals offtake from two private sellers for total cash consideration of US$26 million ($32.6
million). Four of the royalties are on claims overlying the Spring Valley project, and increased Osisko’s current NSR royalty on
Spring Valley project from 0.5% to between 2.5% - 3.0% (sliding scale royalty percentages as long as gold prices are above US$700 per
ounce). Immediately to the north of Spring Valley project lies the Moonlight exploration property, where Osisko also acquired a 1% NSR
royalty. Osisko also acquired a 0.5% NSR royalty and a 30% gold and silver offtake right covering the Almaden project in western Idaho.

 

		·	In April 2021, GoGold Resources Inc. (“GoGold”)
and OBL, a subsidiary of Osisko, entered into an agreement to convert the Parral gold and silver offtake into a life-of-mine gold and
silver stream. Under the stream, OBL has been receiving, effective April 29, 2021, 2.4% of the gold and silver produced from tailings
piles currently owned or acquired by GoGold, with a transfer price of 30% of the gold and silver spot prices.

 

		·	In July 2021, Osisko acquired a 2.75% NSR royalty
on Tocantinzinho for cash consideration of US$10 million ($12.6 million). The operator of Tocantinzinho has a buy-down option in relation
to the royalty. At the time of project construction, the operator may make a payment of US$5.5 million to reduce the royalty percentage
by 2% resulting in a royalty of 0.75%. Pursuant to a pre-existing agreement, the buy-down payment is payable to the original royalty owners.
In November 2021, the operator has early exercised the first 1% of the buy-down, therefore reducing the effective NSR royalty to 1.75%.

 

		·	In October 2021, the Corporation acquired from
Barrick TZ Limited, a subsidiary of Barrick Gold Corp., royalties for total cash consideration of US$11.8 million ($14.8 million), including
a 2% NSR royalty on the licenses comprising the West Kenya project operated by Shanta Gold Limited, a 1% NSR royalty on the Frontier project
operated by Metalor SA, a private company, and a 1% NSR royalty on the Central Houndé project operated by Thor Explorations Ltd.

 

		·	In July 2021, the Corporation amended its Credit
Facility and increased the amount available by $150 million to $550 million, with an additional uncommitted accordion of up to $100
million (for a total availability of up to $650.0 million). The maturity date of the Credit Facility was extended to July 30, 2025, which
can be extended annually.

 

		·	In December 2021, Osisko entered into an agreement
with Talisker Resources Ltd. to acquire the following royalties for total cash consideration of $7,500,000: (i) an additional 0.5% NSR
royalty on all minerals produced from the Bralorne property, increasing Osisko’s total NSR royalty interest on Bralorne property
to 1.7%; (ii) a 1.5% NSR royalty on all minerals produced from the Ladner property which was recently acquired by Talisker Resources Ltd
through its purchase of New Carolin Gold Corp.; and (iii) a future 1% NSR royalty on all minerals produced from the Golden Hornet property
which becomes effective should Talisker Resources Ltd. exercise its option to acquire control of Golden Hornet property.

 

    17

     

    

 

 

 

Highlights subsequent to 2021

 

		·	In January 2022, Osisko Development entered into
definitive agreements to acquire 100% of Tintic Consolidated Metals LLC. OBL entered into a non-binding metals stream term sheet, with
a wholly-owned subsidiary of Osisko Development, for between US$20 million and US$40 million. In the event that the full amount of US$40
million is drawn, Osisko Development will deliver to OBL 5% of all metals produced from the Tintic property until 53,400 ounces of refined
gold have been delivered and 4.0% thereafter.

 

		·	Osisko declared a quarterly dividend of $0.055
per Osisko Share payable on April 14, 2022 to shareholders of record as of the close of business on March 31, 2022.
	 	 	 
	 	· 	On March 17, 2022, Osisko announced that its wholly-owned subsidiary,
OBL, had entered into a binding agreement with Metals Acquisition Corp. with respect to a US$90 million silver stream (the “MAC
Silver Stream”) to facilitate MAC’s acquisition of the producing CSA mine in New South Wales, Australia (the “CSA
Mine”) and concurrently with the above announcement, MAC announced the entering into of an agreement to acquire 100% of the
shares of the owner of the CSA Mine from a subsidiary of Glencore plc. Osisko has also provided MAC with an option to draw up to an additional
US$100 million in upfront proceeds through the sale of a copper stream, subject to the parties finalizing definitive terms and conditions.
Transaction details with respect to the MAC Silver Stream include that (a) OBL will purchase 100% of payable silver produced from the
CSA Mine for the life of the CSA Mine, (b) OBL will make ongoing payments for refined silver delivered equal to 4% of the spot silver
price at the time of delivery, (c) OBL with be provided with corporate guarantees and other security by MAC over their assets for its
obligations under the MAC Silver Stream, (d) OBL has agreed to subscribe for US$15 million in equity of MAC as part of its concurrent
equity financing and (e) MAC has granted OBL a right of first refusal in respect of the sale, transfer or buy-back of any royalty, stream
or similar interest in the products mined or otherwise extracted from any property owned or acquired by MAC or an affiliate between the
closing date and the 3rd anniversary of the closing date. Closing of the MAC Silver Stream and equity subscription is expected
in the second half of 2022, and is subject to certain conditions precedent, including, among others, closing of the transaction between
MAC and Glencore.

 

Cornerstone Asset: Canadian Malartic
Royalty (5% NSR)

 

Osisko’s cornerstone asset is the Canadian
Malartic Royalty (5.0% NSR) on the Canadian Malartic open pit mine located in Malartic, Québec and operated by Agnico and Yamana.
Canadian Malartic is Canada’s largest producing gold mine.

 

In addition to a royalty on the open pit at Canadian
Malartic, Osisko holds royalties on the recently discovered “Odyssey underground” project; a 5% NSR royalty on East Gouldie,
Odyssey South and the western half of East Malartic and a 3% NSR royalty on Odyssey North and the eastern half of East Malartic. Additionally,
Osisko holds a C$0.40/tonne processing royalty on any ore from outside its royalty boundaries processed through the Canadian Malartic
mill.

 

On February 17, 2022, Yamana reported production
guidance of 640,000 ounces of gold at Canadian Malartic for the year 2022. At Canadian Malartic, production is expected to transition
from the open pit to the underground between 2023 and 2029.

 

During the fourth quarter of 2022, Canadian Malartic
benefitted from higher grades and recoveries from ore in the Malartic pit as the operation continues to transition to the Barnat pit.
In 2021, full year production of 714,784 ounces of gold (100% basis) exceeded guidance of 700,000 ounces.

 

Gold mineral reserves at December 31, 2021 were
estimated at 100,450,000 tonnes at 1.09g/t gold for 3.54 million ounces. This reflects depletion from 2021 production and an adjustment
of approximately 96,000 ounces due to a slight increase in cut-off grade, and a localized adjustment in the lower benches of the Canadian
Malartic pit. The Odyssey underground project continues to grow as a result of ongoing exploration drilling, with a total of 25Mt at 2.9
g/t gold for 2.35 million ounces of indicated resources and 86.8Mt at 2.35g/t gold for 13.15 million ounces of inferred resources. The
majority of the upgraded resource came from infill drilling at East Gouldie, which now hosts an indicated resource of 12Mt of 3.88g/t
gold for 1.45 million ounces of gold. Expansion of the mineral resource envelope on all sides added new inferred mineral resources with
a high potential for future conversion in the mine plan, while step out drilling extended the mineralized zone 1,260 metres beyond the
reported East Gouldie mineral resource and identified a new subparallel zone, located 400 metres in the footwall of the East Gouldie zone.
These exploration holes are still widely spaced and therefore not yet considered in the mineral resource statement.

 

Odyssey Underground Mine Project

 

In February 2021, Agnico and Yamana announced
that, following the completion of an internal technical study in late 2020, Canadian Malartic GP had approved construction of a new underground
mining complex.

 

In addition to the open pit at Canadian Malartic,
the asset hosts the recently discovered “Odyssey underground” project, which is contained within three main underground-mineralized
zones: East Gouldie, East Malartic and Odyssey, the latter of which is sub-divided into the Odyssey North, Odyssey South and Odyssey Internal
zones.

 

    18

     

    

 

In March 2021, Agnico filed the Canadian Malartic
Report to present and support the results of an updated mineral resource and mineral reserve estimates, summarize the current open pit
mining operation and disclose the results of a PEA for the underground Odyssey project. The basis for the mine plan is a potentially mineable
resource of 7.29 million ounces (6.18Mt of 2.07 g/t Au indicated resources and 75.9Mt of 2.82 g/t Au inferred resources). The East Gouldie
deposit makes up most of this mineral inventory, whose total inferred resources contains 6.42 million ounces (62.9Mt of 3.17 g/t Au).
Combined with the East Malartic and Odyssey deposits the total underground inferred resources contains 13.8 million ounces (177.5Mt of
2.42 g/t Au), as well as indicated resources of 0.86 million ounces (13.3Mt of 2.01 g/t Au). Note that a portion of the East Gouldie inferred
resources has since been upgraded to indicated (December 31, 2021 described above) and the numbers quoted in this paragraph are fixed
to the previous mine plan described in the Canadian Malartic Report from March 2021. The results of the mine plan are not expected to
change materially based on the updated resource estimation.

 

The project has advanced significantly throughout
2021, with several milestones achieved in the past several months. In October 2021, the concrete pour to construct the 93-metre-tall headframe
was completed on schedule, in preparation for shaft sinking to begin in 2022. The production shaft will be 6.5 metres in diameter and
1,800 metres deep, with the first of two loading stations at 1,135 metres below surface.

 

In parallel, the ramp from surface to the upper
zones is advancing according to plan and, as of the end of November 2021, the ramp heading is approximately 250 metres below surface.
By the end of the year 2022, the ramp is expected to be at the elevation of the third production level and the base of the first stoping
horizon. Underground development is planned to increase in 2022 with the opening of additional headings and the addition of Canadian Malartic
development crews to complement the existing contractor crews. The first underground ore from Odyssey South is on track to be processed
through the existing Canadian Malartic plant in early 2023.

 

Opportunities also exist for supplemental production
sources to increase throughput beyond 20,000 tpd and utilize the excess process capacity of the 60,000 tpd Canadian Malartic plant. Exploration
drilling of the East Gouldie Extension and parallel structures, while widely spaced, indicate that a corridor of mineralization extends
at least 1.3 kilometres to the east of East Gouldie. Although at the very early stages, these results suggest the potential for a second
production shaft that could increase throughput over the longer term. Open pit and underground exploration targets within the Canadian
Malartic land package present additional potential ore sources.

 

For further details, see Schedule “B”
entitled “Technical Information underlying the Canadian Malartic Property”.

 

Malartic Exploration Update

 

On September 7, 2021, Yamana provided an update
on the ongoing exploration programs at Canadian Malartic. The district exploration program has discovered a deep eastern extension of
the East Gouldie structure as well as a new zone located 400 metres south of East Gouldie, and intercepted further promising mineralization
below the known East Amphi deposit. These results support the continued growth of Canadian Malartic as it transitions from an open pit
mine to a large underground operation with a decade-long mine life. Drilling highlights in the East Gouldie infill area include the following
estimated true width intercepts: 6.2 g/t Au over 61.7 metres including 10.9 g/t Au over 21.0 metres at 1,102 metres depth (MEX19-154WC).

 

East Amphi is located three kilometres northwest
of the Canadian Malartic pit. To date, 7,900 metres of drilling have been completed at East Amphi and results indicate the presence of
significant mineralization at depth below the historic workings. Two zones are being defined with new intercepts in the Nessie zone of
2.16 g/t Au over an estimated true width of 17.19 metres in drill hole EA20-4187, and 14.13 g/t Au over an estimated true width of 1.70
metres in drill hole EA21-4196. Follow up drilling of the adjacent Kraken zone, returned an intercept of 2.01 g/t Au over an estimated
true width of 29.77 metres.

 

    19

     

    

 

Recent results in the Chert zone also suggest
the potential to add additional mineral resources between the East Malartic and East Gouldie deposits. The size and shape of the Chert
zone is not well understood yet, but recent results of drill hole MEX20-164WD, returned 7.0 g/t Au over 77.9 metres core length at 890
metres depth.

 

On November 2, 2021, Agnico reported the eastern
most hole on East Gouldie returning 6.3 g/t Au over 4.8 metres at 1,989 metres depth, 1.5 kilometres east of the current mineral resource,
further demonstrating the excellent potential to significantly grow the size of the East Gouldie deposit.

 

Summary of Principal Royalties, Streams and Other
Interests

 

As of March 17, 2022, Osisko owned a portfolio
of 150 royalties, 10 streams and 3 offtakes assets, as well as 6 royalty options.

 

Currently, Osisko has 19 producing assets.

 

Producing assets

	Asset	 	Operator	 	Interest	 	Commodity	 	Jurisdiction
	 	 	 	 	 	 	 	 	 
	North
    America	 	 	 	 	 	 	 	 
	Canadian
    Malartic	 	Agnico
    Eagle Mines Limited and Yamana Gold Inc.	 	5%
    NSR royalty	 	Au,
    Ag	 	Canada
	Eagle
    Gold	 	Victoria
    Gold Corp.	 	5%
    NSR royalty	 	Au	 	Canada
	Éléonore	 	Newmont
    Corporation	 	2.2-3.5%
    NSR royalty	 	Au	 	Canada
	Seabee	 	SSR
    Mining Inc.	 	3%
    NSR royalty	 	Au	 	Canada
	Gibraltar	 	Taseko
    Mines Limited	 	75%
    stream	 	Ag	 	Canada
	Island
    Gold	 	Alamos
    Gold Inc.	 	1.38-3%
    NSR royalty	 	Au	 	Canada
	Pan	 	Fiore
    Gold Ltd.	 	4%
    NSR royalty	 	Au	 	USA
	Lamaque
    	 	Eldorado
    Gold Corporation	 	1%
    NSR royalty	 	Au	 	Canada
	Bald
    Mtn. Alligator Ridge /

    Duke
    & Trapper
	 	Kinross
    Gold Corporation	 	1%
    / 4% GSR royalty(i)	 	Au	 	USA
	Parral(ii)	 	GoGold
    Resources Inc.	 	2.4%
    stream	 	Au,
    Ag	 	Mexico
	Santana	 	Minera
    Alamos Inc. 	 	3%
    NSR royalty	 	Au	 	Mexico
	Ermitaño	 	First
    Majestic Silver Corp. 	 	2%
    NSR	 	Au,
    Ag	 	Mexico
	Renard(iii)	 	Stornoway
    Diamonds

    (Canada)
    Inc.
	 	9.6%
    stream	 	Diamonds	 	Canada
	Outside
    of North America	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Mantos
    Blancos	 	Mantos
    Copper Holding SpA	 	100%
    stream	 	Ag	 	Chile
	Sasa	 	Central
    Asia Metals plc	 	100%
    stream	 	Ag	 	Macedonia
	Kwale	 	Base
    Resources Limited	 	1.5%
    GRR(iv)	 	Rutile,
    Ilmenite, Zircon	 	Kenya
	Matilda	 	Blackham
    Resources Limited	 	1.65%
    stream	 	Au	 	Australia
	Fruta
    del Norte	 	Lundin
    Gold Inc.	 	0.1%
    NSR royalty	 	Au	 	Ecuador
	Brauna	 	Lipari
    Mineração Ltda	 	1%
    GRR(iv)	 	Diamonds	 	Brazil

 

		(i)	Gross smelter return (“GSR”).

		(ii)	Effective April 29, 2021, the Parral offtake was converted into a 2.4% gold and silver stream.

		(iii)	Osisko became a 35.1% shareholder of the private entity holding the Renard diamond mine on November 1, 2019.

		(iv)	Gross revenue royalty (“GRR”).

 

    20

     

    

  

Key development / exploration and evaluation
assets (vi)

 

	Asset	 	Operator	 	Interest	 	Commodities	 	Jurisdiction
	 	 	 	 	 	 	 	 	 
	Akasaba
    West	 	Agnico
    Eagle Mines Limited	 	2.5%
    NSR royalty	 	Au	 	Canada
	Altar	 	Aldebaran
    and Sibanye-Stillwater	 	1%
    NSR royalty	 	Cu,
    Au	 	Argentina
	Arctic	 	South
    32 / Trilogy Metals Inc.	 	1%
    NSR royalty	 	Cu	 	USA
	Amulsar(v)	 	Lydian
    Canada Ventures Corporation	 	4.22%
    Au / 62.5% Ag stream	 	Au,
    Ag	 	Armenia
	Amulsar	 	Lydian
    Canada Ventures Corporation	 	81.9%
    offtake	 	Au	 	Armenia
	Back
    Forty	 	Aquila
    Resources Inc.	 	18.5%
    Au / 85% Ag streams	 	Au,
    Ag	 	USA
	Canadian
    Malartic Underground	 	Agnico
    Eagle Mines Limited and Yamana Gold Inc.	 	3.0
    – 5.0% NSR royalty	 	Au	 	Canada
	Cariboo(vi)	 	Osisko Development Corp.	 	5% NSR royalty	 	Au	 	Canada
	Casino	 	Western
    Copper & Gold Corporation	 	2.75%
    NSR royalty	 	Au,
    Ag, Cu	 	Canada
	Cerro
    del Gallo	 	Argonaut
    Gold Inc.	 	3%
    NSR royalty	 	Au,
    Ag, Cu	 	Mexico
	Copperwood/White
    Pine(vii)	 	Highland
    Copper Company Inc.	 	1.5%
    NSR royalty	 	Ag,
    Cu	 	USA
	Copperwood/White
    Pine(vii)	 	Highland
    Copper Company Inc.	 	3/26th
    NSR royalty	 	Ag	 	USA
	Dolphin
    Tungsten	 	King Island Scheelite Limited
    	 	1.5% Gross Revenue Royalty
    	 	Tungsten
    (W)	 	Tasmania
	Hammond
    Reef	 	Agnico
    Eagle Mines Limited	 	2%
    NSR royalty	 	Au	 	Canada
	Hermosa
    	 	South
    32 Limited	 	1%
    NSR royalty	 	Zn,
    Pb, Ag	 	USA
	Horne
    5	 	Falco
    Resources Ltd.	 	90%-100%
    stream	 	Ag	 	Canada
	Liontown	 	Red River Resources Limited
    	 	0.8%
    NSR	 	Au,
    Ag, Zn, Cu	 	Australia
	Magino	 	Argonaut Gold Inc.	 	3%
    NSR royalty	 	Au	 	Canada
	Ollachea	 	Minera
    IRL Limited	 	1%
    NSR royalty	 	Au	 	Peru
	San Antonio(vi)	 	Osisko Development Corp.	 	15% Au & Ag stream	 	Au, Ag	 	Mexico
	Spring
    Valley(viii)	 	Waterton
    Global Resource Management	 	2.53%
    NSR royalty	 	Au	 	USA
	Tocantinzinho(ix)	 	G
    Mining Ventures Corp.	 	1.75%
    NSR royalty	 	Au	 	Brazil
	Upper
    Beaver	 	Agnico
    Eagle Mines Limited.	 	2%
    NSR royalty	 	Au,
    Cu	 	Canada
	West
    Kenya	 	Shanta
    Gold Limited 	 	2%
    NSR royalty	 	Au	 	Kenya
	Wharekirauponga
    (WKP)	 	OceanaGold
    Corporation	 	2%
    NSR royalty	 	Au	 	New
    Zealand
	Windfall	 	Osisko Mining Inc.	 	2.0 - 3.0% NSR royalty	 	Au	 	Canada

 

		(v)	As at December 31, 2019, Lydian International Limited, the owner of the Amulsar project, was granted protection
under the Companies’ Creditors Arrangement Act. In July 2020, a credit bid was completed and Osisko became a shareholder
of Lydian Canada Ventures Corporation, which is the private entity now holding the Amulsar project in Armenia. As of the date hereof,
Osisko holds 35.6% of Lydian Canada Ventures Corporation.

		(vi)	The 5% NSR royalty on the Cariboo gold project and the 15% gold and silver stream on the San Antonio gold
project held by Osisko are not presented in Osisko’s financial statements as Osisko consolidates the assets of Osisko Development.

		(vii)	3% NSR royalty on the Copperwood project. Upon closing of the acquisition of the White Pine project, Highland
Copper Company will grant Osisko a 1.5% NSR royalty on all metals produced from the White Pine project, and Osisko’s royalty on
Copperwood will be reduced to 1.5%. Osisko also exercised in June 2021 a portion of its option and acquired a 3/26th NSR royalty
on the silver production from Copperwood and White Pine (the remaining option can be exercised by Osisko for US$23 million).

		(viii)	The 3% NSR royalty is on the core resource area; a separate 1% is applicable on the periphery of the property.

		(ix)	The current effective NSR royalty is 1.75%. However, the operator has a buy-down option to reduce the royalty
by 1% to 0.75% at the time of project construction.

 

    21

     

    

 

Main Producing Assets

 

 

Geographical Distribution of Assets

 

 

    22

     

    

 

Equity Investments

 

Osisko’s assets include a portfolio of shares,
mainly of publicly traded exploration and development mining companies. Osisko invests from time to time in companies where it holds a
royalty, stream or similar interest and in various companies within the mining industry for investment purposes and with the objective
of improving its ability to acquire royalties, streams or similar interests. In addition to investment objectives, in some cases, Osisko
may decide to take a more active role, including providing management personnel and/or administrative support, as well as nominating individuals
to the investee’s board of directors.

 

Main Investments

 

The following table presents the main investments
of Osisko in marketable securities as at December 31, 2021:

 

	
 
Investment
	 	Corporation holding
 the investment
	 	
Number of 
 Shares Held
	 	 	
 
Ownership
	 
	 	 	 	 	 	 	 	%	 
	Osisko Development Corp.	 	Osisko	 	 	100,000,100	 	 	 	75.1	(1)
	Osisko Mining Inc.	 	Osisko	 	 	50,023,569	 	 	 	14.4	 
	Osisko Metals Incorporated	 	Osisko	 	 	31,127,397	 	 	 	15.4	 

 

(1) As
of March 17, 2022, the Corporation held an interest of 70.0% in Osisko Development.

 

Sustainability Activities

 

Osisko views sustainability as a key part of its
strategy to create value for its shareholders and other stakeholders.

 

Osisko focuses on the following key areas:

 

		•	Promoting
                                            the mining industry and its benefits to society;

		•	Maintaining
                                            strong relationships with the federal government and the provincial, municipal and first
                                            nations governments;

		•	Supporting
                                            the economic development of regions where Osisko operates (directly or indirectly through
                                            its interests);

		•	Supporting
                                            university education in mining fields and employee development;

		•	Promoting
                                            diversity throughout the organization and the mining industry; and

		•	Encouraging
                                            partner companies to adhere to the same areas of focus in sustainability.

 

In April 2021, Osisko released its inaugural ESG
report. In addition to a discussion of corporate governance practices, the report provides a focused review of how Osisko assesses potential
investments through its diligence process and monitors existing assets to ensure Osisko is well positioned to deliver growth responsibly.

 

As part of its broader ESG initiative, Osisko
has joined the UN Global Compact, the world’s largest voluntary corporate sustainability initiative, with over 15,000 participants
across 165 countries. The UN Global Compact is based on ten universally accepted principles in the areas of human rights, labour, environment
and anti-corruption. By signing onto the initiative, Osisko has committed to align with these principles, intended to promote and strengthen
responsible corporate policies and practices worldwide. As part of its commitment, Osisko will release an annual communication on progress
that outlines the Corporation’s efforts to operate responsibly and implement the ten principles.

 

Osisko also announced a strategic
partnership with Carbon Streaming Corporation to help promote global decarbonization and biodiversity projects. The group’s
management team consists of seasoned executives with significant streaming expertise and recognized climate change experts. Carbon
Streaming Corporation’s business model is to fund carbon-offset projects that avoid, reduce or remove greenhouse gas emissions
globally. The investment affords Osisko a 20% right to participate in any streaming transactions conducted by Carbon Streaming
Corporation under certain circumstances. On July 27, 2021 Carbon Streaming Corporation listed on the NEO Exchange.

 

    23

     

    

 

Human Resources

 

As of December 31, 2021, Osisko had 26 employees
and OBL had 2 employees.

 

Osisko has a succession plan in order to mitigate
the risk of being dependent on key management. From time to time, Osisko may also need to identify and retain additional skilled management
and specialized technical personnel to efficiently operate its business.

 

Material Mineral Project

 

Osisko considers that the Canadian Malartic Royalty
is currently its only material mineral project for the purposes of NI 43-101.

 

General Development
of Osisko’s Business

 

The following is a description of the events that
have influenced the general development of Osisko’s business over the last three (3) completed financial years.

 

Board and Senior Management Appointments

 

On November 25, 2020, Mr. Sandeep Singh
(who was appointed as President of Osisko on December 31, 2019) became the President, Chief Executive Officer of Osisko and
a member of the Osisko Board and Mr. Sean Roosen was appointed as Executive Chair of the Osisko Board, transitioning from his role
as Chief Executive Officer of Osisko to Chief Executive Officer of Osisko Development.

 

On April 6, 2020, Osisko announced the appointment
of The Hon. John Baird to the Osisko Board and on February 20, 2020, Osisko appointed Mr. Frédéric Ruel as Chief Financial
Officer and Vice President, Finance and Mr. Iain Farmer as Vice President, Corporate Development.

 

In August 2020, Mr. Guy Desharnais was appointed
as Vice President, Project Evaluation of Osisko.

 

In January, 2021, Osisko announced the appointment
of Ms. Candace MacGibbon to the Osisko Board and the appointment of Ms. Heather Taylor as Vice President, Investor Relations.

 

MAC Silver Stream

 

On March 17, 2022, Osisko announced that its wholly-owned subsidiary,
OBL, had entered into a binding agreement with Metals Acquisition Corp. with respect to a US$90 million silver stream to facilitate MAC’s
acquisition of the producing CSA mine in New South Wales, Australia and concurrently with the above announcement, MAC announced the entering
into of an agreement to acquire 100% of the shares of the owner of the CSA Mine from a subsidiary of Glencore plc. Osisko has also provided
MAC with an option to draw up to an additional US$100 million in upfront proceeds through the sale of a copper stream, subject to the
parties finalizing definitive terms and conditions. Transaction details with respect to the MAC Silver Stream include that (a) OBL will
purchase 100% of payable silver produced from the CSA Mine for the life of the CSA Mine, (b) OBL will make ongoing payments for refined
silver delivered equal to 4% of the spot silver price at the time of delivery, (c) OBL with be provided with corporate guarantees and
other security by MAC over their assets for its obligations under the MAC Silver Stream, (d) OBL has agreed to subscribe for US$15 million
in equity of MAC as part of its concurrent equity financing and (e) MAC has granted OBL a right of first refusal in respect of the sale,
transfer or buy-back of any royalty, stream or similar interest in the products mined or otherwise extracted from any property owned or
acquired by MAC or an affiliate between the closing date and the 3rd anniversary of the closing date. Closing of the MAC Silver Stream
and equity subscription is expected in the second half of 2022, and is subject to certain conditions precedent, including, among others,
closing of the transaction between MAC and Glencore.

 

Acquisition of Tintic Consolidated Metals LLC

 

On January 25, 2022, Osisko Development
announced that it had entered into definitive agreements (together, the “Tintic Agreements”) with IG Tintic LLC
and Ruby Hollow LLC to acquire 100% of Tintic Consolidated Metals LLC. On completion of the Transaction, Osisko Development will
acquire 100% ownership of the producing Trixie Mine, as well as mineral claims covering more than 17,000 acres (including over
14,200 acres of which are patented) in Central Utah’s historic Tintic Mining District. Pursuant to the terms of the Tintic
Agreements, Osisko Development will acquire 100% of Tintic Consolidated Metals LLC from IG Tintic LLC and Ruby Hollow LLC for
aggregate payments at closing totaling approximately US$177 million, of which approximately US$54 million will be paid in cash and
approximately US$123 million will be paid by the issuance of 35,099,611 common shares of Osisko Development at a price of C$4.32 per
share. In addition, Osisko Development will pay IG Tintic LLC and Ruby Hollow LLC: (i) deferred payments of US$12.5 million payable
in equal instalments annually over five years in cash or common shares at Osisko Development’s election; (ii) two 1% NSR
royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5 million which is exercisable within 5
years; (iii) a right to receive the financial equivalent of 10% of the NSR from stockpiled ore extracted from Trixie Mine since
January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko Development; and (v) US$10 million
contingent upon commencement of production at the Burgin Mine.

 

    24

     

    

 

Purchase of Royalties from Barrick TZ Limited

 

On October 27, 2021, Osisko announced the conclusion
of a transaction with Barrick TZ Limited, a subsidiary of Barrick Gold Corporation, to acquire the following royalties for total cash
consideration of US$11,750,000: (a) a 2% NSR royalty on the AfriOre and Gold Rim licenses comprising the West Kenya project operated by
Shanta Gold Limited; (b) a 1% NSR royalty on the Frontier project operated by Metalor SA, a private company; and (c) a 1% NSR royalty
on the Central Houndé project operated by Thor Explorations Ltd.

 

Spring Valley Royalty Portfolio

 

In April 2021, the Corporation acquired six royalties
and one precious metals offtake, from two private sellers, for total cash consideration of US$26.0 million ($32.6 million). The acquisitions
were funded through cash on hand. Four of the royalties are on claims overlying the Spring Valley project, and increase the Corporation’s
current NSR royalty on Spring Valley from 0.5% to between 2.5% - 3.0% (sliding scale royalty percentages as long as gold prices are above
US$700 per ounce). Immediately to the north of Spring Valley lies the Moonlight exploration property, where Osisko has agreed to acquire
a 1.0% NSR royalty. Osisko has also agreed to acquire a 0.5% NSR royalty and 30% gold and silver offtake right covering the Almaden Project
in western Idaho.

 

Conversion of the Parral Offtake to a Gold
and Silver Stream

 

In April 2021, GoGold and OBL entered into an
agreement to convert the gold and silver offtake into a gold and silver stream. Under the stream, OBL will receive, effective April 29,
2021, 2.4% of the gold and silver produced from tailings piles currently owned or acquired by GoGold, with a transfer price of 30% of
the gold and silver spot prices. Osisko has currently no other offtake agreement in production.

 

Tocantinzinho Royalty

 

In July 2021, Osisko entered into a royalty transfer
agreement with Sailfish Royalty Corp. pursuant to which Osisko purchased a 2.75% NSR royalty on the Tocantinzinho gold project (“Tocantinzinho”),
located in Brazil, and operated by G Mining Ventures Corp. (formerly owned by Eldorado Gold Corporation) for cash consideration of US$10
million ($12.6 million). The operator of Tocantinzinho has a buy-down option in relation to the royalty. At the time of project construction
the operator may make a payment of US$5.5 million to reduce the royalty percentage by 2% resulting in a royalty of 0.75%. Pursuant to
a pre-existing agreement entered into by Sailfish Royalty Corp., the buy-down payment is payable to the original royalty owners. In November
2021, the operator has early exercised the first 1% of the buy-down, therefore reducing the effective NSR royalty to 1.75%.

 

Launch of Osisko Development Corp.

 

On November 21, 2019, Osisko acquired all of the
issued and outstanding common shares of Barkerville that it did not own by way of a court approved plan of arrangement pursuant to which
each shareholder of Barkerville (excluding Osisko) received 0.0357 of an Osisko Share for each share of Barkerville held.

 

On November 25, 2020, Osisko transferred to Barolo
several mining properties (or securities of the entities that directly or indirectly own such mining properties), and a portfolio of marketable
securities valued at approximately $116 million, in exchange for Barolo Shares, resulting in a “reverse take-over” of Barolo
under the policies of the TSXV (the “ODV Transaction”).

 

In connection with the ODV Transaction, the
following mining properties were transferred (directly or indirectly) to Osisko Development: (a) the Cariboo Gold Project; (b) the
San Antonio Gold Project; (c) the Bonanza Ledge Phase II Property; (d) the Coulon Project; (e) the James Bay Properties; and (f) the
Guerrero Properties. As part of the Osisko Development Transaction, Osisko exercised its royalty option on the Cariboo Gold Project
and increased its existing royalty to 5% NSR.

 

    25

     

    

 

Following the ODV Transaction, Osisko retains
the following royalty or stream interests in the assets of Osisko Development: (a) a 5% NSR royalty on the Cariboo Gold Project and Bonanza
Ledge Phase II Property; (b) a 15% gold and silver stream (with ongoing per-ounce payments equal to 15% of the prevailing price of gold
and silver, as applicable) on the San Antonio Gold Project; and (c) 3% NSR royalties on the James Bay Properties, Coulon Property and
Guerrero Properties. Osisko was also granted a right of first refusal on all future royalties and streams to be offered by Osisko Development,
a right to participate in buybacks of existing royalties held by Osisko Development and other rights customary with a transaction of this
nature.

 

In 2021, Osisko Development conducted an extensive
drilling program of approximately 152,000 metres to expand and delineate the known and new vein corridors and deposits. This exploration
focused on the expansion of the Lowhee Zone and further delineation of the Cow, Valley, Mosquito and Shaft deposits with ten diamond drill
rigs. Regional greenfield exploration focused along the Burns, Yanks and Cariboo Hudson targets and included geological mapping and geochemical
surface sampling. The Cariboo Gold Project has current indicated resources totaling 21.2Mt of 4.6g/t gold for 3.2 million ounces and inferred
resources of 21.6Mt of 3.9g/t gold for 2.7 million ounces on a brownfield site in British Columbia, Canada.

 

The San Antonio Gold Project is a past-producing
oxide copper mine located in Sonora, Mexico. In 2020, following the acquisition of the project, Osisko Development concentrated its efforts
in obtaining the required permits and amendments to the permits to perform its activities. Osisko Development has filed preventive reports
for the processing of the gold stockpile on site and for a 15,000-meter drilling program for the Sapuchi, Golfo de Oro and California
zones. In 2021, Osisko Development focused on various activities that pertain to permitting, local community relations, exploration drilling
and preparations towards the processing of the ore stockpile on site.

 

As part of the ODV Transaction, a “bought
deal” private placement was conducted through the issuance of subscription receipts for gross proceeds of approximately $100 million.

 

On February 2, 2022, Osisko Development announced
a non-brokered private placement of up to 2,857,142 subscription receipts of Osisko Development (the “ODV Non-Brokered Subscription
Receipts”) at a price of US$3.50 per ODV Non-Brokered Subscription Receipt (the “ODV Non-Brokered Offering”).
Each ODV Non-Brokered Subscription Receipt will entitle the holder thereof to receive, upon the satisfaction of the ODV Non-Brokered Escrow
Release Condition (as defined below) and without payment of additional consideration, one (1) unit of Osisko Development (each, a “ODV
Non-Brokered Unit”). Each ODV Non-Brokered Unit is comprised of one (1) ODV Share and one (1) ODV Warrant, with each ODV Warrant
entitling the holder thereof to purchase one (1) additional ODV Share at a price of US$6.00 per ODV Share for a period of five (5) years
following the date of issue. The gross proceeds of the ODV Non-Brokered Offering will be held in escrow pending, among other things, the
completion of the listing of the ODV Shares on the NYSE (the “ODV Non-Brokered Escrow Release Condition”), which is
contingent upon Osisko Development meeting the listing requirements of the NYSE and may involve, among other things, a consolidation of
the ODV Shares. On March 4, 2022, Osisko Development announced the closing of the first tranche of the ODV Non-Brokered Offering, pursuant
to which a total of 24,215,099 ODV Non-Brokered Subscription Receipts were issued for gross proceeds of approximately US$84.8 million.
Osisko Development anticipates closing a second tranche of the ODV Non-Brokered Offering in late March 2022, pursuant to which an additional
up to US$25.5 million of ODV Non-Brokered Subscription Receipts may be issued to accommodate additional interest for the ODV Non-Brokered
Subscription Receipts.

 

    26

     

    

 

On February 9, 2022, Osisko Development
announced a “bought deal” brokered private placement of an aggregate 9,000,000 subscription receipts of Osisko
Development (the “ODV Brokered Subscription Receipts”) and/or units of Osisko Development (the “ODV
Brokered Units” and, together with the ODV Brokered Subscription Receipts, the “ODV Brokered Offered
Securities”) at a price of $4.45 per ODV Brokered Offered Security (the “ODV Brokered Offering”). Each
ODV Brokered Unit is comprised of one (1) ODV Shares and one (1) ODV Warrant, with each ODV Warrant entitling the holder thereof to
purchase one (1) additional ODV Share at a price of $7.60 per ODV Share for a period of 60 months following the closing date of the
ODV Brokered Offering. Each ODV Brokered Subscription Receipt will entitle the holder thereof to receive, upon the satisfaction of
the ODV Brokered Escrow Release Condition (as defined below), and without payment of additional consideration, one ODV Brokered
Unit. Osisko Development has granted the underwriters an option, exercisable in whole or in part up to 48 hours prior to the closing
of the ODV Brokered Offering, to purchase up to an additional aggregate amount of 1,350,000 ODV Brokered Subscription Receipts
and/or ODV Brokered Units for additional gross proceeds of up to $6,007,500. The gross proceeds from the sale of the ODV Brokered
Subscription Receipts, net of expenses of the underwriters and 50% of the commissions payable to the underwriters in respect of the
ODV Brokered Subscription Receipts, will be placed into escrow and will be released immediately prior to the completion of the
proposed acquisition by Osisko Development of Tintic Consolidated Metals LLC (the “ODV Brokered Escrow Release
Condition”). If the ODV Brokered Escrow Release Condition is not satisfied prior to the date that is 90 days from the
closing of the ODV Brokered Offering, the escrowed proceeds of the ODV Brokered Offering will be returned to the holders of the ODV
Brokered Subscription Receipts On March 2, 2022, Osisko Development announced the completion of the ODV Brokered Offering of an
aggregate of (i) 13,732,900 ODV Brokered Subscription Receipts and (ii) 9,525,850 ODV Brokered Units for aggregate gross proceeds of
approximately $103.5 million, including the full exercise of the underwriters' option.

 

Acquisition of an Additional 15% Ownership
in a Canadian Precious Metal Royalty Portfolio

 

On August 12, 2020, Osisko announced its acquisition
of the outstanding 15% ownership in a portfolio of Canadian precious metals royalties held by CDPQ for cash consideration of $12.5 million.
This 15% interest represented the remaining portion of the portfolio of royalties purchased by Osisko from Teck Resources Ltd. in October
2015.

 

Gibraltar Silver Stream 

 

On April 29, 2020, Osisko and Taseko amended the
silver stream with respect to the Gibraltar copper mine located in British Columbia, Canada by reducing the price paid by Osisko for each
ounce of refined silver from US $2.75 to nil in exchange for cash consideration of $8.5 million to Taseko.

 

Silver Stream on Mantos Blancos Copper Mine

 

On September 3, 2019, Osisko announced that OBL
entered into a definitive agreement with Mantos to enhance its existing silver purchase agreement with respect to 100% of the silver produced
from the Mantos Blancos Mine located in Chile, pursuant to which OBL agreed to provide an additional deposit of US$25 million to Mantos
in exchange for certain amendments to the existing silver purchase agreement, including: (a) reduction of the ongoing transfer price payment
per ounce from 25% to 8% of the spot silver price on the date of delivery; and (b) increase in the tail stream from 30% to 40% of payable
silver after 19.3 million ounces of refined silver have been delivered. Mantos’s right to buy back 50% of the silver stream was
also terminated.

 

On November 30, 2021 Capstone Mining Corp. and
Mantos Copper (Bermuda) Limited announced that they entered into a definitive agreement to combine pursuant to a plan of arrangement.
Upon completion of the transaction, the new company will be renamed Capstone Copper Corp. The transaction is subject to customary closing
conditions and regulatory approvals and is expected to close in March or April 2022.

 

    27

     

    

 

Private Placement with Investissement Québec
of $85M

 

On April 1, 2020, Osisko announced the closing
of a private placement with Investissement Québec of 7,727,273 Osisko Shares at a price of $11.00 per share for total gross proceeds
of $85,000,003.

 

Share Repurchase and Secondary Offering

 

On June 25, 2019, Osisko announced that Betelgeuse
LLC (“Orion”), a jointly owned subsidiary of certain investment funds managed by Orion Resource Partners, entered into
an underwriting agreement pursuant to which the 2019 Underwriters agreed to purchase, on a bought deal basis, an aggregate of 7,850,000
Osisko Shares held by Orion at an offering price of $14.10 per Osisko Share for total gross proceeds to Orion of $110,685,000 (the “Orion
Secondary Offering”). On July 11, 2019, the Orion Secondary Offering closed. On July 18, 2019, the 2019 Underwriters purchased
an additional 1,177,500 Osisko Shares held by Orion following the exercise in full of their option to purchase additional shares.

 

In a concurrent transaction, Osisko agreed to
purchase for cancellation an aggregate of 12,385,717 Osisko Shares from Orion at $14.10 per Osisko Share, for an aggregate purchase price
paid by Osisko to Orion (the “Orion Share Repurchase”) of approximately $174.6 million (the “Orion Aggregate
Purchase Price”). Osisko sold to separate entities managed by Orion Resource Partners all of the shares of Victoria and Dalradian
Resources Inc. held by Osisko. The Orion Aggregate Purchase Price was satisfied by cash in the amount of $129.5 million as well as the
direct transfer of certain other equity securities of exploration and development companies held by Osisko. On June 28, 2019, a first
tranche of the Orion Share Repurchase closed for 7,319,499 Osisko Shares. On July 15, 2019, the second and final tranche of the Orion
Share Repurchase closed for 5,066,218 Osisko Shares. In a concurrent transaction, Osisko disposed of all of the common shares of Victoria
then held by Osisko to another entity managed by Orion Resource Partners for cash consideration of $71.4 million.

 

Brucejack Offtake Agreement

 

On September 16, 2019, Osisko announced that OBL
had entered into an agreement with Pretium Exploration, a subsidiary of Pretium Resources, in regards to the sale of OBL’s interest
in the Brucejack gold offtake agreement for a cash purchase price of US$41.3 million. On September 30, 2019, Pretium made a payment of
US$31.2 million to OBL and the remainder of the purchase price was paid on November 29, 2019.

 

Renard Stream 

 

Pursuant to the Stornoway Stream Agreement, the
Renard Streamers hold a 20% interest (9.6% stream attributable to Osisko) in all diamonds produced from the Renard Diamond Mine for the
life of mine. Upon the completion of a sale of diamonds, the Renard Streamers will remit to Stornoway a cash transfer payment which shall
be the lesser of 40% of achieved sales price and US$40 per carat. On October 2, 2018, the Renard Streamers paid Stornoway the U.S. dollar
equivalent of $45 million in cash ($21.6 million attributable to Osisko) as an additional up-front deposit.

 

On June 11, 2019, Osisko and certain secured lenders
provided to Stornoway a senior-secured bridge credit facility (the “Stornoway Bridge Facility”) and agreed to advance
an amount equivalent to the stream net proceeds payable under the Stornoway Stream Agreement, up to an estimated amount of $5.9 million
($2.8 million attributable to Osisko). The Stornoway Bridge Facility is secured by a first-ranking security interest over all present
and future assets and property of Stornoway.

 

On September 9, 2019, Osisko announced the
execution of a letter of intent with Stornoway and other secured creditors under the Stornoway Bridge Facility (collectively the
 “Stornoway Secured Creditors”), pursuant to which Osisko and the Stornoway Secured Creditors agreed to form an
entity to acquire, by way of a credit bid transaction, all or substantially all of the assets and properties of Stornoway, and
assume the debts and liabilities owing to the Stornoway Secured Creditors as well as the ongoing obligations relating to the
operation of the Renard Diamond Mine, subject to certain limited exceptions (the “Stornoway Credit Bid
Transaction”). Osisko and certain of the Stornoway Secured Creditors also entered into a working capital facility agreement
with Stornoway providing for a working capital facility in an initial amount of $20 million (approximately $7 million attributable
to Osisko), which facility is secured by a priority charge over the assets of Stornoway and can be increased for additional amounts
at the option of the Stornoway Secured Creditors.

 

    28

     

    

 

The Stornoway Credit Bid Transaction closed on
November 1, 2019 and Osisko became a 35.1% shareholder of 11272420 Canada Inc., who holds a 100% interest in SDCI, the company holding
the Renard Diamond Mine. Pursuant to the Stornoway Credit Bid Transaction, Osisko maintained its 9.6% diamond stream and will continue
to receive stream deliveries, and agreed to reinvest its proceeds from the stream for a period of one (1) year following closing of the
Stornoway Credit Bid Transaction.

 

Stornoway announced in April 2020 that it had
decided to keep the mine on care and maintenance, given the structural challenges affecting the diamond market sales as well as the depressed
prices for diamonds due to COVID-19. The mine restarted its activities in September 2020.

 

Stornoway’s focus has been on cost reduction
while the diamond market recovers. During the first quarter of 2021, the company sold 444,936 carats at an average price of US$74.03 per
carat, a significant improvement over pre-COVID pricing levels. During the second quarter of 2021, the company sold 439,028 carats at
an average price of US$83.80 per carat. During the third quarter of 2021, the company sold 468,354 carats at an average price of US$97.85
per carat and during the fourth quarter of 2021, the company sold 491,053 carats at an average price of US$116.23 per carat. The last
sale that was completed in February had an average price of over US$170 per carat, a continued upward trend.

 

Stornoway’s cost reductions, coupled with
strengthening diamond prices resulted in positive cash generation from Renard and no additional drawdowns on the company’s working
capital facility in 2021. Stornoway repaid $3.9 million to Osisko, or approximately 50% of the working capital facility (and interests
receivable) outstanding at the end of December 2021. Osisko has agreed to defer payments from the stream until April 2022. Payments can
be made prior to this date if the financial situation of Stornoway permits.

 

Falco Silver Stream

 

On February 22, 2019, Osisko closed $10 million
senior secured loan (the “Falco Secured Loan”) with Falco. The Falco Secured Loan had an initial maturity date of December
31, 2019.

 

On February 27, 2019, Osisko entered into a senior
secured silver stream facility with Falco pursuant to which Osisko agreed to commit up to $180 million through a silver stream toward
the funding of the development of the Horne 5 Project, including an optional payment of $40 million at the sole discretion of Osisko to
increase stream percentage from 90% to 100% (the “Falco Silver Stream”). Under the terms of the Falco Silver Stream,
Osisko will purchase up to 100% of the refined silver from the Horne 5 Project and Osisko will pay Falco ongoing payments equal to 20%
of the spot price of silver on the day of delivery, subject to a maximum payment of US$6 per silver ounce. The Falco Silver Stream is
secured by the assets of Falco. This transaction included the repayment of a $10 million loan originally made in May 2016 to Falco
(as amended from time to time).

 

On November 22, 2019, the Falco Secured Loan was
amended, increasing the principal amount by $5.9 million to $15.9 million and the maturity date was extended to December 31, 2020.

 

On January 31, 2020 and on February 11, 2022,
Falco and Osisko executed amendment agreements to the Falco Silver Stream, whereby Osisko agreed to postpone by one (1) year each of the
deadlines granted to Falco to achieve milestones set as a condition precedent to Osisko funding the stream deposit and certain other deadlines.

 

On November 17, 2020, Osisko entered into an
agreement with Falco in order to extend the maturity date of the Falco Secured Loan from December 31, 2020 to December 31, 2022 (the
 “Falco Maturity Extension”). In consideration for the Falco Maturity Extension, the Falco Secured Loan was
amended to become convertible (the “Falco Convertible Loan”) after the first anniversary of the closing date into
Falco Shares at a conversion price of $0.55 per Falco Share. The Falco Convertible Loan bears interest at a rate of 7.0% per annum,
compounded quarterly, and will continue to be secured by a hypothec on certain assets of Falco. In consideration for the Falco
Maturity Extension, Falco issued to Osisko 10,664,324 Falco Warrants, each exercisable for one Falco Share at an exercise price of
$0.69 up to 24 months from the date of issuance of the Falco Warrants.

 

    29

     

    

 

In August 2021, the Corporation made an advance
payment of $10 million under the Falco Silver Stream. The payment corresponds to half of the $20 million second installment payment, which
was payable at the receipt of all necessary material third-party approvals, licenses, rights of way and surface rights on the Horne 5
Project.

 

Lydian International Limited

 

Osisko, through OBL, owns a 4.22% gold stream
and 62.5% silver stream on the Amulsar project, owned by Lydian Canada Ventures Corporation and located in southern Armenia. On December
23, 2019, Osisko was informed that Lydian and its direct and indirect wholly owned subsidiaries, Lydian Canada Ventures Corporation and
Lydian U.K. Corporation Limited, have obtained an initial order as a result of the ongoing unlawful activities against Lydian’s
Amulsar project in Armenia.

 

On July 6, 2020, Lydian completed a plan of arrangement
with its secured creditors, including Osisko, as part of its corporate restructuring and winding up. As of the date hereof, Osisko holds
35.6% of Lydian Canada Ventures Corporation, which is the private entity now holding the Amulsar project and an associate of Osisko.

 

Significant Acquisitions

 

Osisko has not completed any significant acquisition
during its most recently completed financial year and for which disclosure is required under Part 8 of NI 51-102.

 

RISK FACTORS

 

In evaluating Osisko and its business, the readers
should carefully consider the risk factors which follow. These risk factors may not be a definitive list of all risk factors associated
with an investment in Osisko or in connection with the business and operations of Osisko.

 

Commodity Price Risks

 

Changes in the market price of the commodities
underlying Osisko’s interests may affect the profitability of Osisko and the revenue generated therefrom 

 

The revenue derived by Osisko from its portfolio
of royalties, streams and other interests and investments might be significantly affected by changes in the market price of the commodities
underlying its agreements. Commodity prices, including those to which Osisko is exposed, fluctuate on a daily basis and are affected by
numerous factors beyond the control of Osisko, including levels of supply and demand, industrial development levels, inflation and the
level of interest rates, the strength of the U.S. dollar and geopolitical factors. All commodities, by their nature, are subject to wide
price fluctuations and future material price declines could result in a decrease in revenue or, in the case of severe declines that cause
a suspension or termination of production by relevant operators, a complete cessation of revenue from royalties, streams or other interests
applicable to one or more relevant commodities. Moreover, the broader commodity market tends to be cyclical, and a general downturn in
overall commodity prices could result in a significant decrease in overall revenue. Any such price decline may result in a material adverse
effect on Osisko’s profitability, results of operations and financial condition. Furthermore, in connection with increasing tensions
related to the ongoing conflict between Russia and Ukraine, and economic sanctions imposed in relation thereto, further volatility in
commodity and input prices has been encountered. Further escalation of geopolitical tensions could have a broader impact that expands
into commodities and markets where Osisko carries on business activities, which could adversely affect its business and/or supply chain,
the economic conditions under which Osisko operates, and its counterparties.

 

    30

     

    

 

Hedging Risk

 

Osisko has a foreign exchange hedging policy and
may consider adopting a precious metal policy that permits hedging its foreign exchange and precious metal price exposures to reduce the
risks associated with currency and precious metal price fluctuations. Hedging involves certain inherent risks including: (a) credit
risk - the risk that the creditworthiness of a counterparty may adversely affect its ability to perform its payment and other obligations
under its agreement with Osisko or adversely affect the financial and other terms the counterparty is able to offer Osisko; (b) market
liquidity risk - the risk that Osisko has entered into a hedging position that cannot be closed out quickly, by either liquidating
such hedging instrument or by establishing an offsetting position; and (c) unrealized fair value adjustment risk - the risk that,
in respect of certain hedging products, an adverse change in market prices for commodities, currencies or interest rates will result in
Osisko incurring losses in respect of such hedging products as a result of the hedging products being out-of-the money on their settlement
dates. There is no assurance that a hedging policy designed to reduce the risks associated with foreign exchange/currency or precious
metal price fluctuations would be successful. Although hedging may protect Osisko from adverse changes in foreign exchange/currency or
precious metal price fluctuations, it may also prevent Osisko from fully benefitting from positive changes.

 

Third Party Operator Risks

 

Osisko has limited access to data regarding
the operation of mines in which it has royalties, streams or other interests

 

As a holder of royalties, streams or other interests,
Osisko does not serve as the mine’s operator and has little or no input into how the operations are conducted. As such, Osisko has
varying access to data on the operations or to the actual properties themselves. This could affect its ability to assess the value of
its interest or enhance the performance thereof. It is difficult or impossible for Osisko to ensure that the properties are operated in
its best interest. Payments related to Osisko’s royalties, streams or other interests may be calculated by the payors in a manner
different from Osisko’s projections. Osisko does, however, have rights of audit with respect to such royalties, streams or other
interests.

 

Production Estimates, Forecasts and Outlook

 

The Corporation prepares estimates,
forecasts and outlook of future attributable production from the mining operations of the assets on which the Corporation holds a
royalty, stream or other interests (“Mining Operations”) and relies on public disclosure and other information it
receives from the owners, operators and independent experts of the Mining Operations to prepare such estimates, forecast or outlook.
Such information is necessarily imprecise because it depends upon the judgment of the individuals who operate the Mining Operations
as well as those who review and assess the geological and engineering information. These production estimates and projections are
based on existing mine plans and other assumptions with respect to the Mining Operations which change from time to time, and over
which the Corporation has no control, including the availability, accessibility, sufficiency and quality of ore, the costs of
production, the operators' ability to sustain and increase production levels, the sufficiency of infrastructure, the performance of
personnel and equipment, the ability to maintain and obtain mining interests and permits and compliance with existing and future
laws and regulations. Any such information is forward-looking and no assurance can be given that such production estimates and
projections will be achieved. Actual attributable production may vary from the Corporation's estimates, forecast and outlook for a
variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other
characteristics; actual ore mined being less amenable than expected to mining or treatment; short-term operating factors relating to
the ore reserves, such as the need for sequential development of orebodies and the processing of new or different ore grades; delays
in the commencement of production and ramp up at new mines; revisions to mine plans; unusual or unexpected orebody formations; risks
and hazards associated with the Mining Operations, including but not limited to cave-ins, rock falls, rock bursts, pit wall
failures, seismic activity, weather related complications, fires or flooding or as a result of other operational problems such as
production drilling challenges, power failures or a failure of a key production component such as a hoist, an autoclave, a filter
press or a grinding mill; and unexpected labour shortages, strikes, local community opposition or blockades. Occurrences of this
nature and other accidents, adverse conditions or operational problems in future years may result in the Corporation's failure to
achieve the production estimates, forecasts or outlook currently anticipated. If the Corporation's production estimates, forecasts
or outlook prove to be incorrect, it may have a material adverse effect on the Corporation.

 

    31

     

    

 

Osisko has little or no control over mining
operations in which it holds royalties, streams or other interests

 

Osisko has few or no contractual rights relating
to the operation or development of mines in which it only holds royalties, streams or other interests. Osisko may not be entitled to any
material compensation if these mining operations do not meet their forecasted production targets in any specified period or if the mines
shut down or discontinue their operations on a temporary or permanent basis. Certain of these properties may not commence production within
the time frames anticipated, if at all, and there can be no assurance that the production, if any, from such properties will ultimately
meet forecasts or targets. At any time, any of the operators of the mines or their successors may decide to suspend or discontinue operations.
Osisko is subject to the risks that the mines shut down on a temporary or permanent basis due to issues including, but not limited to,
economic, lack of financial capital, floods, fire, mechanical malfunctions, social unrest, expropriation, community relations and other
risks. These issues are common in the mining industry and can occur frequently.

 

Osisko is dependent on the payment or delivery
of amounts for royalties, streams or other interests by the owners and operators of certain properties and any delay in or failure of
such payments or deliveries will affect the revenues generated by Osisko’s asset portfolio

 

Royalties, streams and other interests in natural
resource properties are largely contractual in nature. Parties to contracts do not always honour contractual terms and contracts themselves
may be subject to interpretation or technical defects. To the extent grantors of royalties, streams or other interests do not abide by
their contractual obligations, Osisko would be forced to take legal action to enforce its contractual rights. Such litigation may be time
consuming and costly and there is no guarantee of success. While any proceedings or actions are pending, or if any decision is determined
adversely to Osisko, such litigation may have a material adverse effect on Osisko’s profitability, results of operations and financial
condition.

 

In addition, Osisko is dependent to a large extent
upon the financial viability and operational effectiveness of owners and operators of the relevant properties. Payments and/or deliveries
from production generally flow through the operator and there is a risk of delay and additional expense in receiving such revenues. Payments
and/or deliveries may be delayed by restrictions imposed by lenders, delays in the sale or delivery of products, the ability or willingness
of smelters and refiners to process mine products, recovery by the operators of expenses incurred in the operation of the properties,
the establishment by the operators of reserves for such expenses or the insolvency of the operator. Osisko’s rights to payment and/or
delivery under the royalties, streams or other interests must, in most cases, be enforced by contract without the protection of a security
interest over property that Osisko could readily liquidate. This inhibits Osisko’s ability to collect outstanding royalties, streams
or other interests upon a default. In the event of a bankruptcy of an operator or owner, Osisko may have a limited prospect for full recovery
of revenues. Failure to receive any payments and/or deliveries from the owners and operators of the relevant properties may result in
a material and adverse effect on Osisko’s profitability, results of operation and financial condition.

 

Osisko is exposed to risks related to exploration,
permitting, construction and/or development in relation to the projects and properties in which it holds a royalty, stream or other interest

 

Many of the projects or properties in which
Osisko holds a royalty, stream or other interest in are in the exploration, permitting, construction and/or development stage and
such projects are subject to numerous risks, including but not limited to, delays in obtaining equipment, materials and services
essential to the exploration, construction and development of such projects in a timely manner, delays or inability to obtain
required permits, changes in environmental regulations or other regulations, currency exchange rates, labour shortages, cost
escalations and fluctuations in metal prices. There can be no assurance that the owners or operators of such projects will have the
financial, technical and operational resources to complete exploration, permitting, construction and/or development of such projects
in accordance with current expectations or at all. It is also possible that
such owners or operators will require additional capital in order for their projects to become producing mines. Osisko may be asked
to provide additional capital to these entities and may decide to do so to preserve the value of its initial investment. There is a
risk that the carrying values of certain of Osisko’s assets may not be recoverable if the operating entities cannot raise
additional capital to continue to explore and develop their assets. The value of Osisko’s interests in these projects could
thus be negatively affected by many factors, some of which cannot be assessed at the time of investment. Although Osisko undertakes
a due diligence process for every investment, mining exploration and development are subject to many risks and it is possible that
the value realized by Osisko be less than the original investment.

 

    32

     

    

 

Some agreements may provide limited recourse
in particular circumstances which may further inhibit Osisko’s ability to recover or obtain equitable relief in the event of a default
under such agreements

 

Osisko’s rights to payment under royalties,
streams or other interests must, in most cases, be enforced by contract. Osisko’s ability to collect outstanding royalties, streams
or other interests, or obtain equitable relief upon cases of default, might be limited pursuant to such contracts. Certain royalty and
stream agreements provide for certain protections and security interests in favour of Osisko. However, security arrangements may be difficult
to realize upon and also be subordinate, which may cause Osisko to be at a disadvantage in the event of a default. In the event of a bankruptcy,
it is possible that an operator or owner claims that Osisko should be treated as an unsecured creditor and that Osisko’s rights
should be terminated in an insolvency proceeding. Failure to receive payments from the owners and operators of the relevant properties,
or termination of Osisko’s rights, may result in a material and adverse effect on Osisko’s profitability, results of operations
and financial condition.

 

Risks related to mining operations

 

Mining operations involve significant risks that
even a combination of careful evaluation, experience and knowledge may not eliminate or adequately mitigate. Major expenditures are required
to develop metallurgical processes and to construct mining and processing facilities at a particular site. Whether a mineral deposit will
be commercially viable depends on a number of factors, some of which are: the particular attributes of the deposit, such as size, grade
and proximity to infrastructure; metal prices, which are highly volatile; and governmental regulations, including those relating to prices,
taxes, royalties, land tenure, land use, allowable production, importing and exporting of minerals and environmental protection.

 

Thus, Osisko’s business might be impacted
by such risks inherent to mining operations and is dependent, among other things, on mining operations conducted by third parties.

 

Osisko may acquire royalties, streams or
other interests in respect of properties that are speculative and there can be no guarantee that mineable deposits will be discovered
or developed

 

Exploration for metals and minerals is a speculative
venture necessarily involving substantial risk. There is no certainty that the expenditures made by the operator of any given project
will result in discoveries of commercial quantities of minerals on lands where Osisko holds royalties, streams or other interests.

 

If mineable deposits are discovered, substantial
expenditures are required to establish reserves through drilling, to develop processes to extract the resources and, in the case of new
properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial
benefits may be derived from the discovery of a major deposit, no assurance can be given that resources will be discovered in sufficient
quantities to justify commercial operations or that the funds required for development can be obtained on terms acceptable to the operator
or at all. Although, in respect of these properties, Osisko intends to only hold royalties, streams or other interests and not be responsible
for these expenditures, the operator may not be in a financial position to obtain the necessary funds to advance the project.

 

    33

     

    

 

The Corporation may not complete any announced
transactions and acquired assets may expose the Corporation to exploration and development risk.

 

The Corporation is in the business of bidding
for, and may acquire royalties, streams or other interests in respect of a variety of assets, including those that are based on properties
that are speculative and there can be no guarantee that anticipated returns will be realized or, in relation to earlier stage projects,
that mineable deposits will be discovered or developed.

 

The Corporation is engaged in the business to
acquire royalties, streams and other interests in mining assets. From time to time the Corporation may enter into binding transactions
to acquire, or create through investments, such assets. There can be no assurances the Corporation will successfully complete any announced
transactions as a variety of conditions may exist that need to be waived or satisfied prior to completion. There can be no certainty that
proposed benefits of transactions to acquire such assets will be realized as anticipated.

 

Certain of the assets acquired by the Corporation
involve exposure to exploration and development risks.

 

Exploration for metals and minerals is a speculative
venture necessarily involving substantial risk. There is no certainty that the expenditures made by the operator of any given project
will result in discoveries of commercial quantities of minerals on lands where the Corporation holds royalties, streams or other interests.

 

If mineable deposits are discovered, substantial
expenditures are required to establish reserves through drilling, to develop processes to extract the resources and, in the case of new
properties, to develop the extraction and processing facilities and infrastructure at any site chosen for extraction. Although substantial
benefits may be derived from the discovery of a major deposit, no assurance can be given that resources will be discovered in sufficient
quantities to justify commercial operations or that the funds required for development can be obtained on terms acceptable to the operator
or at all. Although, in respect of these properties, the Corporation intends to only hold royalties, streams or other interests and not
be responsible for these expenditures, the operator may not be in a financial position to obtain the necessary funds to advance the project.

 

Operational Risks

 

The properties on which Osisko holds royalties,
streams or other interests are subject to exploration and mining risks

 

Osisko seeks to acquire royalties, streams or
other interests in mineral properties or equity interests in companies that have exploration properties, advanced staged development projects
or operating mines. Royalties, streams or other interests are non-operating interests in mining projects that provide the right to revenue
or production from the project after deducting specified costs, if any. Mineral exploration and development involves a high degree of
risk and few properties which are explored are ultimately developed into producing mines. The long-term profitability of Osisko’s
operations will be in part directly related to the cost and ultimate success of the operating mines in which Osisko has royalties, streams
or other interest or the companies in which Osisko has equity interests, which may be affected by a number of factors beyond Osisko’s
control.

 

Operating a producing mine involves many risks,
which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which Osisko has a
direct or indirect interest are and will be subject to all the hazards and risks normally incidental to exploration, development and production
of mineral resources and mineral reserves, any of which could result in work stoppages, damage to property, and possible environmental
damage.

 

    34

     

    

 

Hazards such as unusual or unexpected
geological formations and other conditions such as fire, power outages, flooding, explosions, cave-ins, landslides and the inability
to obtain suitable machinery, equipment or labour are involved in mineral exploration, development and operation. Operating
companies which operate on properties on which Osisko has royalties, streams or other interests may become subject to liability for
pollution, cave-ins or hazards against which they cannot insure or against which they may elect not to insure. The payment of such
liabilities may have a material, adverse effect on the financial position of such operating companies, and in turn, may have a
material adverse effect on the financial position of Osisko.

 

In addition, labour disruptions are a hazard to
mineral exploration, development and operation. There is always a risk that strikes or other types of conflict with unions or employees
may occur at any one of the properties on which Osisko may hold royalties, streams or other interests. Although it is uncertain whether
labour disruptions will be used to advocate labour, political or social goals in the future, labour disruptions could have a material
adverse effect on the results of operations of the mineral properties in which Osisko may hold an interest.

 

Agreements pertaining to royalties, streams or
other interests are based on mine life and in some instances a drop in metal prices or a change in metallurgy may result in a project
being shut down with a material, adverse effect on that company’s financial position, and in turn, may have a material adverse effect
on the financial position of Osisko.

 

The properties on which Osisko holds royalties,
streams or other interests may require permits and licenses

 

The properties on which Osisko holds royalties,
streams or other interests, including the mine operations, may require licenses and permits from various governmental authorities. There
can be no assurance that the operator of any given project will be able to obtain or maintain, in a timely manner and on terms favourable
to such operator, all necessary licenses and permits that may be required to carry out exploration, development and mining operations.

 

Mineral resource and mineral reserve estimates
have inherent uncertainty

 

Mineral resource and mineral reserve figures are
only estimates. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry
practices. While Osisko believes that the mineral resource and mineral reserve estimates, as applicable, in respect of properties in which
Osisko holds royalties, streams or other interests reflect best estimates performed by or on behalf of the owner of such properties, the
estimating of mineral resources and mineral reserves is a subjective process and the accuracy of mineral resource and mineral reserve
estimates is a function of the quantity and quality of available data, the accuracy of statistical computations, and the assumptions used
and judgments made in interpreting available engineering and geological information. There is significant uncertainty in any mineral resource
and mineral reserve estimate and the actual deposits encountered and the economic viability of a deposit may differ materially from estimates.
Estimated mineral resources and mineral reserves may have to be re-estimated based on changes in prices of gold or other minerals, further
exploration or development activity or actual production experience. This could materially and adversely affect estimates of the volume
or grade of mineralization, estimated recovery rates or other important factors that influence such estimates. In addition, mineral resources
are not mineral reserves and there is no assurance that any mineral resource estimate will ultimately be reclassified as proven or probable
mineral reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

 

If operators reduce their mineral reserves and
mineral resources on properties underlying Osisko’s royalties, streams or other interests, this may result in a material and adverse
effect on Osisko’s profitability, results of operations, financial condition and the trading price of Osisko’s securities.

 

Economics of developing mineral properties

 

Mineral exploration and development is
speculative and involves a high degree of risk. While the discovery of an ore body may result in substantial rewards, few properties
which are explored are commercially mineable and ultimately developed into producing mines. There is no assurance that any
exploration properties will be commercially mineable.

 

    35

     

    

 

Should any mineral resources and mineral reserves
exist, substantial expenditures will be required to confirm mineral reserves which are sufficient to commercially mine and to obtain the
required environmental approvals and permitting required to commence commercial operations. The decision as to whether a property contains
a commercially viable mineral deposit and should be brought into production will depend upon the results of exploration programs and/or
feasibility studies, and the recommendations of duly qualified engineers and/or geologists, all of which involves significant expense.
This decision will involve consideration and evaluation of several significant factors including, but not limited to: (a) costs of bringing
a property into production, including exploration and development work, preparation of production feasibility studies and construction
of production facilities; (b) availability and costs of financing; (c) ongoing costs of production; (d) metal prices; (e) environmental
compliance regulations and restraints (including potential environmental liabilities associated with historical exploration activities);
and (f) political climate and/or governmental regulation and control. Development projects are also subject to the successful completion
of engineering studies, issuance of necessary governmental permits, and availability of adequate financing.

 

Factors beyond the control of Osisko

 

The potential profitability of mineral properties
is dependent upon many factors beyond Osisko’s control. For instance, world prices of and markets for minerals are unpredictable,
highly volatile, potentially subject to governmental fixing, pegging and/or controls and respond to changes in domestic, international,
political, social and economic environments. Another factor is that rates of recovery of minerals from mined ore (assuming that such mineral
deposits are known to exist) may vary from the rate experienced in tests and a reduction in the recovery rate will adversely affect profitability
and, possibly, the economic viability of a property. Profitability also depends on the costs of operations, including costs of labour,
equipment, electricity, environmental compliance or other production inputs. Such costs will fluctuate in ways Osisko cannot predict and
are beyond Osisko’s control, and such fluctuations will impact on profitability and may eliminate profitability altogether. Additionally,
due to worldwide economic uncertainty, the availability and cost of funds for development and other costs have become increasingly difficult,
if not impossible, to project. These changes and events may materially affect the financial performance of Osisko.

 

Coronavirus (COVID-19) 

 

Osisko faces risks related to health epidemics
and other outbreaks of communicable diseases, which could significantly disrupt, directly or indirectly, its operations and may materially
and adversely affect its business and financial conditions.

 

Osisko’s business could be adversely impacted
by the effects of the coronavirus or other epidemics. In December 2019, a novel strain of the coronavirus emerged in China and the virus
has spread to several other countries in 2020, including Canada and the U.S., and infections have been reported globally. The extent to
which the coronavirus impacts Osisko’s business, including its operations and the market for its securities, will depend on future
developments, which are highly uncertain and cannot be predicted at this time, and include the duration, severity and scope of the outbreak
and the actions taken to contain or treat the coronavirus outbreak. In particular, the continued spread of the coronavirus globally, together
with extraordinary actions taken by public health and governmental authorities to contain the spread of COVID-19, including travel bans,
social distancing, quarantines, stay-at-home orders and similar mandates to reduce or cease normal operations, could materially and adversely
impact Osisko’s business including without limitation, employee health, workforce productivity, increased insurance premiums, limitations
on travel, the availability of industry experts and personnel, operations and business of third party operators and owners of properties
in which Osisko holds a royalty, stream or other interest, and other factors that will depend on future developments beyond Osisko’s
control, which may have a material and adverse effect on its business, financial condition and results of operations. There can be no
assurance that Osisko’s personnel will not be impacted by these pandemic diseases and governmental measures and ultimately see its
workforce productivity reduced or incur increased medical costs / insurance premiums as a result of these health risks.

 

    36

     

    

 

In addition, a significant outbreak of coronavirus
could result in a widespread global health crisis that could adversely affect global economies and financial markets resulting in an economic
downturn that could have an adverse effect on the demand for precious metals and Osisko’s future prospects.

 

Several of Osisko’s operating partners announced
temporary operational restrictions during the first and second quarter of 2020 due to the ongoing COVID-19 pandemic, including reduced
activities and operations placed on care and maintenance. As of December 31, 2020, all operators have restarted their activities and have
reached their pre-COVID-19 level of operations. However, in the current environment, the assumptions and judgements made by Osisko are
subject to greater variability than normal, which could in the future significantly affect judgments, estimates and assumptions made by
management as they relate to potential impact of the COVID-19 and could lead to a material adjustment to the carrying value of the assets
or liabilities affected. The impact of current uncertainty on judgments, estimates and assumptions extends, but is not limited to, Osisko’s
valuation of its long-term assets, including the assessment for impairment and impairment reversal. Actual results may differ materially
from these estimates.

 

As a result of the COVID-19 pandemic, Osisko took
action to protect its employees, contractors and the communities in which it operates. As part of the contingency plan developed by Osisko,
it closed its offices in March 2020 and provided employees with adequate equipment to allow them to safely work remotely from home.

 

Influence of third party stakeholders

 

The lands held by the companies in which Osisko
has royalties, streams or other interests, and the roads or other means of access which they utilize or intend to utilize in carrying
out work programs or general business mandates, may be subject to interests or claims by third party individuals, groups or companies.
In the event that such third parties assert any claims, work programs may be delayed even if such claims are not meritorious or the scope
of the work may otherwise be affected. Such delays may result in significant financial loss and loss of opportunity for Osisko.

 

Community Relations and Social License

 

Maintaining a positive relationship with the communities
is critical to continuing successful operation of existing mines as well as construction and development of existing and new projects.
Community support is a key component of a successful mining project or operation.

 

The companies in which Osisko has royalties, streams
or other interests may come under pressure in the jurisdictions in which they respectively operate, or will operate in the future, to
demonstrate that other stakeholders (including employees, communities surrounding operations and the countries in which they respectively
operate) benefit and will continue to benefit from their commercial activities, and/or that they operate in a manner that will minimize
any potential damage or disruption to the interests of those stakeholders. The companies in which Osisko has royalties, streams or other
interests may face opposition with respect to their respective current and future development and exploration projects which could materially
adversely affect their business, results of operations, financial condition and the Osisko share price.

 

Community relations are impacted by a number of
factors, both within and outside of Osisko’s control. Relations may be strained or social license lost by poor performance in areas
such as health and safety, environmental impacts from the mine, increased traffic or noise. External factors such as press scrutiny or
other distributed information from media, governments, non-governmental organizations or interested individuals can also influence sentiment
and perceptions toward Osisko or the companies in which Osisko has royalties, streams or other interests and their respective operations.

 

Surrounding communities may affect
operations and projects through restriction of site access for equipment, supplies and personnel or through legal challenges. This
could interfere with work operations, and potentially pose a security threat to employees or equipment. Social license may also
impact the permitting ability, reputation and ability to build positive community relationships in exploration areas or around newly
acquired properties.

 

    37

     

    

 

Erosion of social licence or activities of third
parties seeking to call into question social licence may have the effect of slowing down the development of new projects and potentially
may increase the cost of constructing and operating these projects. Productivity may be reduced due to restriction of access, requirements
to respond to security threats or proceedings initiated or delays in permitting and there may also be extra costs associated with improving
the relationship with the surrounding communities.

 

Foreign operation risk

 

Certain properties held by the companies in which
Osisko has royalties, streams or other interests are located outside of the United States and Canada. The ownership, development and operation
of these properties may be subject to additional risks associated with conducting business in foreign countries, including, depending
on the country, nationalization and expropriation, social unrest, political and economic instability, lack of infrastructure, less developed
legal and regulatory systems, uncertainties in perfecting mineral titles, crime, violence, corruption, trade barriers, exchange controls
and material changes in taxation. These risks may, among other things, limit or disrupt the ownership, development or operation of properties,
mines or projects to which such properties relate, restrict the movement of funds, or result in the deprivation of contractual rights
or the taking of property by nationalization or expropriation without fair compensation.

 

Information Systems and Cyber Security 

 

Osisko relies on its IT infrastructure to meet
its business objectives. Osisko uses different IT systems, networks, equipment and software and has adopted security measures to prevent
and detect cyber threats. However, Osisko and its counterparties under precious metal purchase agreements, third-party service providers
and vendors may be vulnerable to cyber threats, which have been evolving in terms of sophistication and new threats are emerging at an
increased rate. Unauthorized third parties may be able to penetrate network security and misappropriate or compromise confidential information,
create system disruptions or cause shutdowns to Osisko or its counterparties. Although Osisko has not experienced any losses relating
to cyber attacks or other information security breaches, there can be no assurance that there will be no such loss in the future. Significant
security breaches or system failures of Osisko or its counterparties, especially if such breach goes undetected for a period of time,
may result in significant costs, loss of revenue, fines or lawsuits and damage to reputation. The significance of any cyber security breach
is difficult to quantify, but may in certain circumstances be material and could have a material adverse effect on Osisko’s business,
financial condition and results of operations.

 

Climate Change

 

Osisko recognizes that climate change is an international
and community concern which may affect the business and operations of Osisko or the companies in which Osisko has royalties, streams or
other interests, directly or indirectly. The continuing rise in global average temperatures has created varying changes to regional climates
across the globe, resulting in risks to equipment and personnel. Governments at all levels are moving towards enacting legislation to
address climate change by regulating carbon emissions and energy efficiency, among other things. Where legislation has already been enacted,
regulation regarding emission levels and energy efficiency are becoming more stringent. The mining industry as a significant emitter of
greenhouse gas emissions is particularly exposed to these regulations. Costs associated with meeting these requirements may be subject
to some offset by increased energy efficiency and technological innovation; however, there is no assurance that compliance with such legislation
will not have an adverse effect on Osisko’s business, results of operations, financial condition and its share price.

 

Extreme weather events (such as prolonged
drought or freezing, increased flooding, increased periods of precipitation and increased frequency and intensity of storms) have
the potential to disrupt operations and the transport routes. Extended disruptions could result in interruption to production which
may adversely affect Osisko’s business results of operations, financial condition and its share price.

 

    38

     

    

 

Climate change is perceived as a threat to communities
and governments globally. Stakeholders may increase demands for emissions reductions and call upon mining companies to better manage their
consumption of climate-relevant resources (hydrocarbons, water etc.). This may attract social and reputational attention towards operations,
which could have an adverse effect on Osisko’s business, results of operations, financial condition and its share price.

 

Reputational Risks

 

Osisko is subject to reputational risks

 

Reputational risk is the risk that an activity
undertaken by an organization or its representatives will impair its image in the community or lower public confidence in it, resulting
in loss of revenue, legal action or increased regulatory oversight and loss of valuation and share price. Possible sources of reputational
risk could come from, but not limited to, operational failures, non-compliance with laws and regulations, or leading an unsuccessful financing.
In addition to its risk management policies, controls and procedures, Osisko has a formal Code of Ethics to help manage and support Osisko’s
reputation.

 

Financial Condition Risks

 

Osisko is subject to risks related to its
financial condition

 

Osisko’s financial condition has an impact
on its risk profile. A sound financial condition can allow Osisko to compete for accretive investment opportunities: the better the financial
condition, the more it can bid and compete on quality assets. If additional funds are required, the source of funds that may be available
to Osisko, in addition to cash flows, is through the issuance of additional equity capital, borrowings or the sale of assets. There is
no assurance that such funding will continue to be available to Osisko. Furthermore, even if such financing is available, there can be
no assurance that it will be obtained in a timely manner or on terms favourable to Osisko or provide Osisko with sufficient funds to meet
its objectives, which may adversely affect Osisko’s business and financial condition and may be further exacerbated by global instability,
international conflict and the responses thereto, and by the undetermined future impact of COVID-19 on financial markets. In addition,
failure to comply with financial covenants under Osisko’s current or future debt agreements or to make scheduled payments of the
principal of, or to pay interest on its indebtedness, would likely result in an event of default under the debt agreements and would allow
the lenders to accelerate the debt under these agreements, which may affect Osisko’s financial condition.

 

Additional financing may result in dilution

 

Osisko may require additional funds to further
its activities. To obtain such funds, Osisko may issue additional securities including, but not limited to, Osisko Shares or some form
of convertible security, the effect of which could result in a substantial dilution of the equity interests of Osisko Shareholders.

 

There can be no assurance that Osisko will be
able to obtain adequate financing in the future or that the terms of such financing will be favourable.

 

Declaration and payment of dividends

 

Any decisions to declare and pay dividends on
the Osisko Shares is subject to the discretion of the Osisko Board, based on, among other things, Osisko’s earnings, financial requirements
for Osisko’s operations, the satisfaction of applicable solvency tests for the declaration and payment of dividends and other conditions
existing from time to time. As a result, no assurance can be given as to the frequency or amount of any such dividend.

 

    39

     

    

 

Osisko may be a “passive foreign
investment company”, or PFIC, under applicable U.S. income tax rules, which could result in adverse tax consequences for United
States investors

 

If Osisko were to constitute a PFIC for any year
during a U.S. holder’s holding period, then certain potentially adverse U.S. federal income tax rules would affect the U.S. federal
income tax consequences to such U.S. holder resulting from the acquisition, ownership and disposition of Osisko Shares.

 

The U.S. Treasury Department has not issued specific
guidance on how the income and assets of a non-U.S. corporation such as Osisko will be treated under the PFIC rules, including the treatment
of royalties, streams and precious metals offtakes under such rules. Based upon advice from its tax advisors, Osisko believes, on a more
likely than not basis, that it was not a PFIC for its tax year ended December 31, 2021, and, based on its current and anticipated business
activities and financial expectations, Osisko expects, on a more likely than not basis that it will not be a PFIC for its current tax
year and for the foreseeable future.

 

The determination as to whether a corporation
is, or will be, a PFIC for a particular tax year depends, in part, on the application of complex U.S. federal income tax rules, which
are subject to differing interpretations and uncertainty. In addition, there is limited authority on the application of the relevant PFIC
rules to entities such as Osisko. Accordingly, there can be no assurance that the Internal Revenue Service will not challenge the views
of Osisko concerning its PFIC status. In addition, whether any corporation will be a PFIC for any tax year depends on its assets and income
over the course of such tax year, and, as a result, Osisko’s PFIC status for its current tax year and any future tax year cannot
be predicted with certainty. Each U.S. holder should consult its own tax adviser regarding the PFIC status of Osisko.

 

Changes in tax legislation or accounting
rules could affect the profitability of Osisko 

 

Changes to, or differing interpretation of, taxation
laws or regulations in any of Canada, Australia, Brazil, Chile, Armenia, Kenya, Macedonia, Argentina, Peru, Mexico, Ecuador, New Zealand,
Tasmania, United States of America or any of the countries in which Osisko’s assets or relevant contracting parties are located
could result in some or all of Osisko’s profits being subject to additional taxation. No assurance can be given that new taxation
rules or accounting policies will not be enacted or that existing rules will not be applied in a manner which could result in Osisko’s
profits being subject to additional taxation or which could otherwise have a material adverse effect on Osisko’s profitability,
results of operations, financial condition and the trading price of Osisko’s securities. In addition, the introduction of new tax
rules or accounting policies, or changes to, or differing interpretations of, or application of, existing tax rules or accounting policies
could make royalties, streams or other interests by Osisko less attractive to counterparties. Such changes could adversely affect Osisko’s
ability to acquire new assets or make future investments.

 

The CRA’s recent focus on foreign
income earned by Canadian companies may result in adverse tax consequences for Osisko 

 

There has been a recent focus by the CRA on income
earned by foreign subsidiaries of Canadian companies. The majority of Osisko’s offtake and stream assets are owned by and the related
revenue is received by OBL, its Bermuda wholly-owned subsidiary. Osisko has not received any reassessment or proposal from the CRA in
connection with income earned by its foreign subsidiaries. Although management believes that Osisko is in full compliance with Canadian
tax law, there can be no assurance that Osisko’s structure may not be challenged in future. Tax authorities in jurisdictions applicable
to Osisko may periodically conduct reviews of Osisko’s tax filings and compliance. Those reviews could result in adverse tax consequences
and unexpected financial costs and exposure. In the event the CRA successfully challenges Osisko’s structure, or the manner in which
Osisko or any of its subsidiaries has filed its income tax returns and reported its income, this could potentially result in additional
federal and provincial taxes and penalties, which could have a material adverse effect on Osisko.

 

    40

     

    

 

Financial Reporting Risks

 

Osisko is subject to risks related to financial
reporting

 

In accordance with statutory requirements and
sound management practices, Osisko issues financial statements, which present its financial condition at a given date and its financial
performance over a certain period. The risk of misstatement of financial or restatement of financial statements can result in significant
losses to Osisko: financial losses, as a result of litigation and fines, losses in market capitalization, reputational losses. Key misstatements
would include (a) fraudulent misappropriation of assets; (b) fraudulent misrepresentation of performance motivated by personal gain;
and (c) inadequate estimates with an impact on valuation of assets and liabilities.

 

Osisko may fail to maintain the adequacy
of internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act

 

Section 404 of the SOX requires an annual assessment
by management of the effectiveness of Osisko’s internal control over financial reporting and an attestation report by Osisko’s
external auditor addressing this assessment. While Osisko’s internal control over financial reporting for its last completed financial
year were effective, Osisko may in the future fail to achieve and maintain the adequacy of its internal control over financial reporting,
as such standards are modified, supplemented or amended from time to time, and Osisko may not be able to ensure that it can conclude on
an ongoing basis that it has effective internal control over financial reporting in accordance with Section 404 of SOX. Osisko’s
failure to satisfy the requirements of section 404 of SOX and achieve and maintain the adequacy of its internal control over financial
reporting could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm Osisko’s
business and negatively impact the trading price of securities. In addition, any failure to implement required new or improved controls,
or difficulties encountered in their implementation, could harm Osisko’s operating results or cause it to fail to meet its reporting
obligations. Future acquisitions of companies may provide Osisko with challenges in implementing the required processes, procedures and
controls in its acquired operations. Acquired companies may not have disclosure controls and procedures or internal control over financial
reporting that are as thorough or effective as those currently applicable to Osisko.

 

No evaluation can provide complete assurance that
Osisko’s internal control over financial reporting will detect or uncover all failures of persons within Osisko to disclose material
information otherwise required to be reported. The effectiveness of Osisko’s controls and procedures could also be limited by simple
errors or faulty judgments. In addition, should Osisko expand in the future, the challenges involved in implementing appropriate internal
control over financial reporting will increase and will require that Osisko continue to improve its internal control over financial reporting.
Although Osisko intends to devote substantial time and incur substantial costs, as necessary, to ensure compliance, Osisko cannot be certain
that it will be successful in complying with Section 404 on an ongoing basis.

 

Human Resources Risks

 

Osisko may experience difficulty attracting
and retaining qualified management and specialized technical personnel to grow its business, which could have a material adverse effect
on Osisko’s business and financial condition

 

Osisko may be dependent on the services of key
executives and other highly skilled personnel focused on advancing its corporate objectives as well as the identification of new opportunities
for growth and funding. The loss of these persons or its inability to attract and retain additional highly skilled employees required
for its activities may have a material adverse effect on Osisko’s business and financial condition. Osisko implemented a succession
plan in order to mitigate the risk of being dependent on such key management and specialized technical personnel. From time to time, Osisko
may also need to identify and retain additional skilled management and specialized technical personnel to efficiently operate its business.

 

    41

     

    

 

Osisko or the companies in which Osisko holds
royalties, streams or other interests may remain highly dependent upon contractors and third parties in the performance of their exploration,
development and operational activities. There can be no guarantee that such contractors and third parties will be available to carry out
such activities on their behalf or be available upon commercially acceptable terms.

 

Currency Risks

 

Osisko’s revenue, earnings, the value
of its treasury and the value it records for its assets are subject to variations in foreign exchange rates, which may adversely affect
the revenue generated by the asset portfolio or cause adjustments to the recorded value of assets

 

Osisko’s main activities and offices are
currently located in Canada and the costs associated with Osisko’s activities are in majority denominated in Canadian dollar. However,
Osisko’s revenues from the sale of gold, silver or other commodities are in U.S. dollars. Osisko is subject to foreign currency
fluctuations and inflationary pressures, which may have a material and adverse effect on Osisko’s profitability, results of operations
and financial condition. There can be no assurance that the steps taken by management to address variations in foreign exchange rates
will eliminate all adverse effects and Osisko may suffer losses due to adverse foreign currency rate fluctuations.

 

Financial Markets Risks

 

Osisko is subject to risks related to financial
markets

 

Failure of financial markets can have a significant
impact on the valuation of Osisko and its assets, and increasing financial and takeover risks.

 

Fluctuation in market value of Osisko Shares

 

The market price of the Osisko Shares is affected
by many variables not directly related to the corporate performance of Osisko, including the strength of the economy generally, the availability
and attractiveness of alternative investments, and the breadth of the public market for the securities. The effect of these and other
factors on the market price of Osisko Shares in the future cannot be predicted.

 

Securities markets have a high level of price
and volume volatility, and the market price of securities of many companies have experienced wide fluctuations in price which have not
necessarily been related to the operating performance, underlying asset values or prospects of such companies. Factors unrelated to the
financial performance or prospects of Osisko include macroeconomic developments in North America and globally, and market perceptions
of the attractiveness of particular industries or asset classes. There can be no assurance that continued fluctuations in mineral prices
will not occur. As a result of any of these factors, the market price of Osisko’s securities at any given time may not accurately
reflect the long term value of Osisko.

 

Equity Price Risk and Liquidity of Investments

 

Osisko is exposed to equity price risk as a result
of holding a portfolio of investments in publicly listed companies. Just as investing in Osisko is inherent with risks such as those set
out in this Annual Information Form, by investing in these other companies, Osisko is exposed to the risks associated with owning equity
securities and those risks inherent in the investee companies. Osisko may have difficulty in selling its investments in exploration and
mining companies in the event such sales would be contemplated.

 

    42

     

    

 

Legal Risks

 

Osisko is subject to significant governmental
regulations

 

Osisko’s activities are subject to extensive
federal, provincial and local laws and regulations governing various matters, including environmental protection; management and use of
toxic substances and explosives; management of natural resources; exploration of mineral properties; exports; price controls; taxation;
labour standards and occupational health and safety, including mine safety; and historic and cultural preservation.

 

Failure to comply with applicable laws and regulations
may result in civil or criminal fines or penalties or enforcement actions, including orders issued by regulatory or judicial authorities
enjoining or curtailing operations or requiring corrective measures, installation of additional equipment or remedial actions, any of
which could result in significant expenditures. Osisko may also be required to compensate private parties suffering loss or damage by
reason of a breach of such laws, regulations or permitting requirements. It is also possible that future laws and regulations, or more
stringent enforcement of current laws and regulations by governmental authorities, could cause additional expense, capital expenditures,
restrictions on or suspensions of Osisko’s activities and delays in the exploration of properties.

 

Osisko’s business is subject to evolving
corporate governance and public disclosure regulations that have increased both Osisko’s compliance costs and the risk of non compliance,
which could have an adverse effect on the price of Osisko’s securities 

 

Osisko is subject to changing rules and regulations
promulgated by a number of Canadian and U.S. governmental and self-regulated organizations. These rules and regulations continue to evolve
in scope and complexity and many new requirements have been created, making compliance more difficult and uncertain. Osisko’s efforts
to comply with rules and regulations have resulted in, and are likely to continue to result in, increased general and administrative expenses
and a diversion of management time and attention from revenue-generating activities to compliance activities.

 

Osisko may be subject to liability or sustain
loss for certain risks and hazards against which it does not or cannot economically insure

 

Mining is capital intensive and subject to a number
of risks and hazards, including environmental pollution, accidents or spills, industrial and transportation accidents, labour disputes,
changes in the regulatory environment, natural phenomena (such as inclement weather conditions, earthquakes and encountering unusual or
unexpected geological conditions. Such risk and hazards might impact the business of Osisko or of the companies in which Osisko holds
royalties, streams or other interests. Consequently, many of the foregoing risks and hazards could result in damage to, or destruction
of, mineral properties or future processing facilities, personal injury or death, environmental damage, delays in or interruption of or
cessation of their exploration or development activities, delay in or inability to receive required regulatory approvals, or costs, monetary
losses and potential legal liability and adverse governmental action. Osisko, or the companies in which Osisko holds royalties, streams
or other interests, may be subject to liability or sustain loss for certain risks and hazards against which they do not or cannot insure
or against which they may reasonably elect not to insure because of the cost. This lack of insurance coverage could result in material
economic harm to Osisko.

 

There can be no assurance of title to property

 

There may be challenges to title to the mineral
properties held by Osisko or the companies in which Osisko has royalties, streams or other interests. If there are title defects with
respect to any such properties, they might be required to compensate other persons or perhaps reduce its interest in the affected property.
Also, in any such case, the investigation and resolution of title issues would divert management’s time from ongoing programs.

 

    43

     

    

 

There may be amendments to laws

 

Amendments to current laws, regulations and permits
governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact
on Osisko and cause increases in capital expenditures or production costs or reduction in levels of production at producing properties
or require abandonment or delays in development of new mining properties.

 

Disputes may arise over the existence, validity,
enforceability and geographic extent of royalties, streams or other interests

 

Royalties, streams and other interests are subject
to title and other defects and contestation by operators of mining projects and holders of mining rights, and these risks may be difficult
to identify. While Osisko seeks to confirm the existence, validity, enforceability and geographic extent of the royalties, streams and
other interests it holds, there can be no assurance that disputes over these and other matters will not arise.

 

The properties on which Osisko holds royalties,
streams or other interests or the companies in which Osisko has an equity interest may be the subject of litigation

 

Potential litigation may arise on a property on
which Osisko holds royalties, streams or other interests (for example litigation between joint venture partners or original property owners)
or with respect to a company in which Osisko holds an equity interest. As a holder of royalties, streams or other interests, Osisko will
not generally have any influence on the litigation nor will it generally have access to data.

 

The registration of royalties, streams or
other interests may not protect Osisko’s interests

 

The right to record or register royalties, streams
or other interests in various registries or mining recorders offices may not necessarily provide any protection to Osisko. Accordingly,
Osisko may be subject to risk from third parties.

 

Environmental risks and hazards

 

Osisko and the companies in which Osisko has royalties,
streams or other interest are subject to environmental regulation in the jurisdictions in which they operate. These regulations mandate,
among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the general,
transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner that will require
stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed
projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that
future changes in environmental regulation, if any, will not adversely affect Osisko’s operations. Environmental hazards may exist
on the properties which are unknown to Osisko at present and which have been caused by previous or existing owners or operators of the
properties. Reclamation costs are uncertain and planned expenditures estimated by management may differ from the actual expenditures required.

 

Foreign countries and regulatory requirements

 

Osisko and the companies in which Osisko holds
royalties, streams or other interests have investments in properties and projects located in foreign countries. The carrying values of
these properties and the ability to advance development plans or bring the projects to production may be adversely affected by whatever
political instability and legal and economic uncertainty might exist in such countries. These risks may limit or disrupt projects, restrict
the movement of funds or result in the deprivation of contractual rights or the taking of property by nationalization, expropriation or
other means without fair compensation.

 

    44

     

    

 

There can be no assurance that industries
which are deemed of national or strategic importance in countries in which Osisko has assets, including mineral exploration,
production and development, will not be nationalized. The risk exists that further government limitations, restrictions or
requirements, not presently foreseen, will be implemented. Changes in policies intended to alter laws regulating the mining industry
could have a material adverse effect on Osisko. There can be no assurance that Osisko’s assets in these countries will not be
subject to nationalization, requisition or confiscation, whether legitimate or not, by an authority or body.

 

In addition, in the event of a dispute arising
from foreign operations, Osisko may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting
foreign persons to the jurisdiction of courts in Canada. Osisko also may be hindered or prevented from enforcing its rights with respect
to a governmental instrumentality because of the doctrine of sovereign immunity. It is not possible for Osisko to accurately predict such
developments or changes in laws or policy or to the extent to which any such developments or changes may have a material adverse effect
on Osisko’s operations.

 

Conflict of Interest Risks

 

Some of Osisko’s directors and officers
may have conflicts of interest as a result of their involvement with other natural resource companies

 

Some of the persons who are directors and officers
of Osisko are directors or officers of other natural resource or mining-related companies and these associations may give rise to conflicts
of interest from time to time. As a result of these conflicts of interest, Osisko may miss the opportunity to participate in certain transactions,
which may have a material adverse effect on Osisko’s financial position.

 

Merger and Acquisitions Risks

 

Any mergers, acquisitions or joint ventures
would be accompanied by risks

 

Osisko may evaluate from time to time opportunities
to merge, acquire and joint venture assets and businesses. The global landscape has changed for mergers and acquisitions and there are
risks associated to such transactions due to liabilities and evaluations with the aggressive timelines of closing transactions from increased
competition. There is also a risk that the review and examination process of a potential investment might be inadequate and cause material
negative outcomes. These acquisitions may be significant in size, may change the scale of Osisko’s business and may expose it to
new geographic, political, operating, financial and geological risks. Osisko’s success in its acquisition activities will depend
on its ability to identify suitable acquisition candidates and partners, acquire or joint venture them on acceptable terms and integrate
their operations successfully with those of Osisko. Any acquisitions may be accompanied by risks, such as: (a) the difficulty of integrating
the operations and personnel of any acquired companies; (b) the potential disruption of Osisko’s ongoing business; (c) the inability
of management to maximize the financial and strategic position of Osisko through the successful incorporation of acquired assets and businesses
or joint ventures; (d) additional expenses associated with amortization of acquired intangible assets; the maintenance of uniform standards,
controls, procedures and policies; (e) the impairment of relationships with employees, customers and contractors as a result of any integration
of new management personnel; (f) dilution of Osisko’s present shareholders or of its interests in its subsidiaries or assets as
a result of the issuance of shares to pay for acquisitions or the decision to grant interests to a joint venture partner; and (g) the
potential unknown liabilities associated with acquired assets and businesses. There can be no assurance that Osisko would be successful
in overcoming these risks or any other problems encountered in connection with such acquisitions or joint ventures. There may be no right
for shareholders to evaluate the merits or risks of any future acquisition or joint venture undertaken except as required by applicable
laws and regulations.

 

Mergers and acquisitions contemplated by
Osisko may require third party approvals

 

Osisko may intend to enter into agreements
to acquire royalties, streams or other interests that require the consent or approval of third parties in order to complete the
contemplated acquisition. There can be no assurance that such third parties, which may include shareholders of the entity disposing
of the interests, regulatory bodies or entities with an interest in the applicable property or others, will provide the required
approval or consent in a timely manner, or at all. Failure to complete acquisitions may result in a material adverse effect on
Osisko’s profitability, results of operation and financial condition.

 

    45

     

    

 

Osisko faces competition and the mining
industry is competitive at all of its stages 

 

Many companies and investors are engaged in the
search for and the acquisition of royalties, streams or other interests, and there is a limited supply of desirable mineral interests.
The mineral exploration business is competitive in all phases. Many companies and investors are engaged in the acquisition of royalties,
streams or other interests, including pension funds, private funds, mining companies, operators and large, established companies with
substantial financial resources, operational capabilities and long earnings records. Osisko may be at a competitive disadvantage in acquiring
interests in natural resource properties, whether by way of royalties, streams or other form of investment, as many competitors may have
greater financial resources and technical staff. There can be no assurance that Osisko will be able to compete successfully against other
companies and investors in acquiring interests in new natural resource properties and royalties, streams or other interests. In addition,
Osisko may be unable to make acquisitions at acceptable valuations and on terms it considers to be acceptable. Osisko’s inability
to acquire additional royalties, streams or other interests in mineral properties may result in a material and adverse effect on Osisko’s
profitability, results of operation and financial condition.

 

In addition, there is no assurance that a ready
market will exist for the sale of commercial quantities of metals. Factors beyond the control of Osisko may affect the marketability of
any substances discovered. These factors include market fluctuations, the proximity and capacity of natural resource markets and processing
equipment, government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting
of minerals and environmental protection. The exact effect of these factors cannot be accurately predicted, but the combination of these
factors may result in Osisko not receiving any future payments related to royalties, streams or other interests or losing value on its
equity investments.

 

Fraud Risks

 

Osisko is subject to potential fraud and corruption

 

Osisko is subject to risks related to potential
to gain benefits from improper transactions (purchasing, gold, payroll) and financial reporting to hide operational deficiencies or enhance
remuneration. Other risks include the potential for fraud and corruption by suppliers, personnel or government officials and which may
implicate Osisko, compliance with applicable anti-corruption laws, by virtue of Osisko operating in jurisdictions that may be vulnerable
to the possibility of bribery, collusion, kickbacks, theft, improper commissions, facilitation payments, conflicts of interest and related
party transactions and Osisko’s possible failure to identify, manage and mitigate instances of fraud, corruption, or violations
of its Code of Ethics and applicable regulatory requirements.

 

Material MINERAL
Project

 

The Canadian Malartic Royalty

 

Pursuant to the Canadian Malartic Royalty Agreement,
Osisko holds a real right in the Canadian Malartic Properties (and the associated ores, minerals and mineral resources and by-products
thereof which may be extracted from the Canadian Malartic Properties) and Canadian Malartic GP has agreed to pay Osisko a 5% NSR royalty
from production of metals, ores and other materials recovered from the Canadian Malartic Properties (the “Canadian Malartic Royalty”).
The term of the Canadian Malartic Royalty Agreement is perpetual.

 

For a description of the Canadian Malartic Properties,
see “Schedule B - Technical Information underlying the Canadian Malartic Properties”.

 

    46

     

    

 

Prior to the commencement of
each fiscal year, Osisko may elect to receive payment of the Canadian Malartic Royalty for such fiscal year to the extent relating to
gold and silver as an in-kind credit. If Osisko has elected to receive the in-kind royalty, where precious metals are shipped in the form
of dore, Osisko’s account shall be credited with 5% of the refined gold and 5% of the refined silver as soon as practicable and
in any event no later than five (5) business days after the refined gold or refined silver is credited, subject to further adjustment.
Since 2014, Osisko has elected to receive the Canadian Malartic Royalty in-kind. The Canadian Malartic Royalty is payable quarterly and
all payments pursuant to the Canadian Malartic Royalty to be paid in cash must be paid in U.S. dollars.

 

Osisko has the right to inspect the Canadian Malartic
Properties and to inspect and audit books and records upon 20 days’ prior notice to Canadian Malartic GP. Canadian Malartic GP is
required to deliver to Osisko an annual forecast report.

 

If Canadian Malartic GP intends to abandon any
portion of the Canadian Malartic Properties, Osisko can elect to have such portion conveyed to it, subject to the satisfaction of certain
conditions.

 

Canadian Malartic GP is required to pay Osisko
a $0.40 per tonne milling fee in respect of ore milled at the Canadian Malartic Properties that is not produced from the Canadian Malartic
Properties provided no fee is payable in respect of any tonnes of ore milled in excess of 65,000 tpd.

 

Osisko may assign all of its rights in the Canadian
Malartic Royalty without the prior consent of Canadian Malartic GP. Canadian Malartic GP may not assign or otherwise convey the Canadian
Malartic Properties unless certain conditions are satisfied.

 

A deed of hypothec was entered into in order to
hypothecate the Canadian Malartic Properties in favour of Osisko and securing payment of the Canadian Malartic Royalty subject to certain
terms and conditions. The hypothec is first-ranking subject to, among other things, security existing at the time of execution of the
Canadian Malartic Royalty Agreement. The Canadian Malartic Royalty Agreement has been published at the Québec Public Register of
Real and Immovable Mining Rights.

 

Dividends

 

Dividend Program and Dividend Payments

 

In November 2014, Osisko announced the initiation
of a quarterly dividend program. Since the initiation of the program, Osisko declared dividends as follows:

 

	Declaration date	 	Dividend
 per share
	 	 	 
Record date(i)
	 	 
Payment date(i)
	 	Dividends paid or payable	 
	 	 		$	 	 	 	 	 	 		$	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year 2014	 	 	0.03	 	 	n/a	 	n/a	 	 	1,551,000	 
	Year 2015	 	 	0.13	 	 	n/a	 	n/a	 	 	12,229,000	 
	Year 2016	 	 	0.16	 	 	n/a	 	n/a	 	 	17,037,000	 
	Year 2017	 	 	0.18	 	 	n/a	 	n/a	 	 	24,275,000	 
	Year 2018	 	 	0.20	 	 	n/a	 	n/a	 	 	31,213,000	 
	Year 2019	 	 	0.20	 	 	n/a	 	n/a	 	 	29,976,000	 
	Year 2020	 	 	0.20	 	 	n/a	 	n/a	 	 	32,838,000	 
	February 21, 2021	 	 	0.050	 	 	March 31, 2021	 	April 15, 2021	 	 	8,364,000	 
	May 11, 2021	 	 	0.050	 	 	June 30, 2021	 	July 15, 2021	 	 	8,404,000	 
	August 5, 2021	 	 	0.055	 	 	September 30, 2021	 	October 15, 2021	 	 	9,160,000	 
	November 9, 2021	 	 	0.055	 	 	December 31, 2021	 	January 14, 2022	 	 	9,157,000	 
	Year 2021	 	 	0.21	 	 	 	 	 	 	 	32,838,000	 
	February 24, 2022	 	 	0.055	 	 	March 31, 2022	 	April 14, 2022	 	 	Tbd	(ii)

 

NOTES:

 

		(i)	Not applicable (“n/a”) for annual summaries.

		(ii)	To be determined (“tbd”) on March 31, 2022 based on the number of shares outstanding and the
number of shares participating in the Dividend Reinvestment Plan on the record date.

 

    47

     

    

 

 

Dividend Reinvestment Plan

 

In 2015, Osisko implemented the Dividend Reinvestment
Plan. The Dividend Reinvestment Plan allows Canadian shareholders and U.S. shareholders (commencing with the dividend paid on October
16, 2017 for U.S. shareholders) to reinvest their cash dividends into additional Osisko shares either purchased on the open market through
the facilities of the TSX or the NYSE, or issued directly from treasury by Osisko, or acquired by a combination thereof. In the case of
a treasury issuance, the price will be the weighted average price of the Osisko Shares on the TSX or the NYSE during the five (5) trading
days immediately preceding the dividend payment date, less a discount, if any, of up to 5%, at Osisko’s sole election. No commissions,
service charges or brokerage fees are payable by shareholders who elect to participate in the Dividend Reinvestment Plan.

 

As at December 31, 2021, the holders of 7,891,496
Osisko Shares had elected to participate in the Dividend Reinvestment Plan, representing dividends payable of $0.4 million. During the
year ended December 31, 2021, Osisko issued 120,523 Osisko Shares under the Dividend Reinvestment Plan, at a discount rate of
3%.

 

Description of
capital structure

 

Osisko Shares

 

Osisko is authorized to issue an unlimited number
of Osisko Shares without nominal or par value.

 

Subject to the rights and restrictions attaching
to the Osisko Preferred Shares issuable in series and to the terms of an amended and restated shareholder rights plan dated May 4, 2017
(as approved for continuation on June 22, 2020) the rights, privileges, conditions and restrictions attaching to the Osisko Shares, as
a class, are equal in all respects and include the following rights.

 

Dividends

 

Subject to the rights and restrictions attaching
to any series of Osisko Preferred Shares, the holders of the Osisko Shares shall have the right to receive, if, as and when declared by
the Osisko Board, any dividend on such dates and for such amounts as the Osisko Board may from time to time determine.

 

Participation in case of Dissolution
or Liquidation

 

Subject to the rights and restrictions attaching
to any series of Osisko Preferred Shares, the holders of the Osisko Shares shall have the right, upon the liquidation, dissolution or
winding-up of Osisko, to receive the remaining property of Osisko.

 

Right to Vote

 

The holders of the Osisko Shares shall have the
right to one (1) vote at any meeting of the shareholders of Osisko, except meetings at which only holders of any series of Osisko Preferred
Shares are entitled to vote.

 

As of the date hereof, 166,246,261 Osisko Shares
were issued and outstanding.

 

Renewal of Normal Course Issuer Bid

 

In
December 2021, Osisko renewed its normal course issuer bid (“2022 NCIB Program”).
Under the terms of the 2022 NCIB Program, Osisko may acquire up to 16,530,668 Osisko Shares from time to time in accordance with the
normal course issuer bid procedures of the TSX. Repurchases under the 2022 NCIB Program are authorized until December 11, 2022.
Daily purchases will be limited to 87,264 Osisko Shares, other than block purchase exemptions, representing 25% of the average daily
trading volume of the Osisko Shares on the TSX for the six-month period ending November 30, 2021,
being 349,057 Osisko Shares.

 

    48

     

    

 

During the year
ended December 31, 2021, Osisko purchased for cancellation a total of 2,103,366 Osisko Shares for $30.8 million (average acquisition price
per share of $14.64) under its previous 2021 NCIB program.

 

Osisko Preferred Shares

 

The rights and restrictions attached to the preferred
shares of Osisko issuable in series (the “Osisko Preferred Shares”) are as follows.

 

Issuance in Series

 

The Osisko Preferred Shares may be issued in one
or more series and subject as hereinafter provided and subject to the provisions of the QBCA, the Osisko Board shall determine, by resolution,
before the issue of each series, the designation, rights and restrictions to be attached thereto, including, but without in any way limiting
or restricting the generality of the foregoing: (a) the right, as the case may be, to receive dividends, the form of payment of dividends,
the rate or amount or method of calculation of dividends, whether cumulative or non-cumulative, the date or dates and places of payment
and the date or dates from which such dividends shall accrue or become payable; (b) the rights and/or obligations, if any, of Osisko or
of the holders thereof with respect to the purchase or redemption of the Osisko Preferred Shares and the consideration for and the terms
and conditions of any such purchase or redemption; (c) the conversion or exchange rights, if any, and the conditions attaching thereto;
(d) the restrictions, if any, as to the payment of dividends on shares of Osisko ranking junior to the Osisko Preferred Shares; and (e)
any other provisions deemed expedient by the directors, the whole subject to the issuance of a Certificate of Amendment setting forth
the number and the designation, as well as the rights and restrictions to be attached to the Osisko Preferred Shares of such series.

 

Dividends

 

The Osisko Preferred Shares shall, with respect
to the payment of dividends, be entitled to preference over any other class of shares of Osisko ranking junior to the Osisko Preferred
Shares, and no dividends shall at any time be declared or paid or set apart for payment on any other shares of Osisko ranking junior to
the Osisko Preferred Shares, nor shall Osisko call for redemption or purchase for cancellation any of the Osisko Preferred Shares unless
at the date of such declaration, payment, setting apart for payment or call for redemption or purchase, as the case may be, all cumulative
dividends up to and including the dividend payment for the last completed period for which such cumulative dividends shall be payable
shall have been declared and paid or set apart for payment in respect of each series of cumulative Osisko Preferred Shares then issued
and outstanding and the non-cumulative dividend payment for the then current fiscal year and any declared and unpaid non-cumulative dividends
shall have been paid or set apart for payment in respect of each series of non-cumulative Osisko Preferred Shares then issued and outstanding.

 

Liquidation or Dissolution

 

In the event of the liquidation, dissolution
or winding-up of Osisko or other distribution of assets of Osisko among shareholders for the purpose of winding-up its affairs, the
holders of the Osisko Preferred Shares shall be entitled to receive, before any amount shall be paid to, or any property or assets
of Osisko distributed among the holders of the Osisko Shares or of shares of any other class of shares of Osisko ranking junior to
the Osisko Preferred Shares, and to the extent provided for with respect to each series, the amount of the consideration received by
Osisko for such Osisko Preferred Shares, such premiums, if any, as has been provided for with respect to such series together with,
in the case of cumulative Osisko Preferred Shares, all unpaid accrued dividends (which for such purpose shall be calculated as if
such cumulative dividends were accruing from day to day for the period from the latest of the following dates, namely (a) the date
fixed by the Osisko Board at the time of allotment and issue of such shares or if such date is not fixed, the date of their
allotment and issue, or (b) the date of expiration of the last period for which cumulative dividends have been paid, up to and
including the date of distribution) and, in the case of non-cumulative Osisko Preferred Shares, all declared and unpaid dividends.
After payment to the holders of the Osisko Preferred Shares of the amounts so payable to them, they shall not be entitled to share
in any further distribution of the property or assets of Osisko.

 

    49

     

    

 

Equal Rank of All Series

 

The Osisko Preferred Shares of each series shall
rank pari passu with the Osisko Preferred Shares of every other series with respect to the payment of dividends, as the case may
be, and the distribution of assets in the event of the liquidation, dissolution or winding-up of Osisko, whether voluntary or involuntary,
provided, however, that in the event of there being insufficient assets to satisfy in full the repayment of all moneys owing to the holders
of Osisko Preferred Shares, such assets shall be applied rateably to the repayment of the amount paid up on such Osisko Preferred Shares
and, then, to the payment of all unpaid accrued cumulative dividends, whether declared or not, and all declared and unpaid non-cumulative
dividends.

 

Voting Rights

 

Subject to the provisions of the QBCA and, except
as otherwise expressly provided herein, the holders of any series of the Osisko Preferred Shares shall not, as such, have any voting rights
for the election of directors or for any other purpose nor shall they be entitled to receive notice of or to attend shareholders’
meetings.

 

Amendments

 

As long as any of the Osisko Preferred Shares
are outstanding, Osisko may not, except with the approval of the holders of the Osisko Preferred Shares hereinafter specified and after
having complied with the relevant provisions of the QBCA, create any other shares ranking in priority to or pari passu with the
Osisko Preferred Shares, voluntarily liquidate or dissolve Osisko or effect any reduction of capital involving a distribution of assets
on other shares of its share capital or repeal, amend or otherwise alter any of the provisions relating to the Osisko Preferred Shares
as a class.

 

Any approval of the holders of the Osisko Preferred
Shares as aforesaid shall be deemed to have been sufficiently given if contained in a resolution adopted by a majority of not less than
2/3 of the votes cast by the shareholders who voted in respect of that resolution at a meeting of the holders of the Osisko Preferred
Shares duly called and held for that purpose, at which meeting such holders shall have one vote for each Osisko Preferred Share held by
them respectively, or in an instrument signed by all the holders of the then outstanding Osisko Preferred Shares.

 

If an amendment as hereinabove provided especially
affects the rights of the holders of Osisko Preferred Shares of any series in a manner or to an extent different from that in or to which
the rights of the holders of Osisko Preferred Shares of any other series are affected, then such amendment shall, in addition to being
approved by the holders of the Osisko Preferred Shares voting separately as a class, be approved by the holders of the Osisko Preferred
Shares of such series, voting separately as a series, and the provisions of this paragraph shall apply, mutatis mutandis, with
respect to the giving of such approval.

 

As of the date hereof, no Osisko Preferred Shares
were issued and outstanding.

 

Warrants

 

As at December 31, 2021, 5,480,000 Osisko Warrants
were outstanding and entitled the holder to purchase one Osisko Share at a price of $36.50 until February 18, 2022. On February 18, 2022,
these Osisko Warrants expired unexercised. The Osisko Warrants were listed on the TSX under the ticker symbol “OR.WT”.

 

    50

     

    

 

Debentures

 

On November 3, 2017, Osisko closed a “bought
deal” offering of Debentures in an aggregate principal amount of $300 million (the “Debentures”). The Debentures
bear interest at a rate of 4% per annum, payable semi-annually on June 30 and December 31 each year, commencing on June 30, 2018. The
Debentures are convertible at the holder’s option into Osisko Shares at a conversion price equal to $22.89 per Common Share (representing
a conversion rate of 43.6872 Osisko Shares per $1,000 principal amount of Debentures). The Debentures will mature on December 31, 2022
and may be redeemed by Osisko, in certain circumstances. The Debentures are listed and posted for trading on the TSX under the symbol
 “OR.DB”.

 

MARKET FOR SECURITIES

 

Trading Price and Volume

 

Osisko Shares

 

The Osisko Shares are currently listed on the
TSX and on the NYSE under the symbol “OR”. The following table sets forth the price range and trading volume for the Osisko
Shares on the TSX and the NYSE, for the periods indicated.

 

	 	 	TSX	 	 	NYSE	 
	 	 	High
 (C$)	 	 	Low
 (C$)	 	 	Volume
 (#)	 	 	High
 (US$)	 	 	Low
 ($US)	 	 	Volume
 (#)	 
	2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	17.16	 	 	 	14.18	 	 	 	10,371,387	 	 	 	13.34	 	 	 	10.95	 	 	 	19,270,650	 
	February	 	 	15.08	 	 	 	12.42	 	 	 	9,611,832	 	 	 	11.58	 	 	 	9.62	 	 	 	21,500,698	 
	March	 	 	14.54	 	 	 	12.39	 	 	 	8,457,920	 	 	 	11.49	 	 	 	9.64	 	 	 	20,832,407	 
	April	 	 	15.76	 	 	 	14.02	 	 	 	5,455,543	 	 	 	12.50	 	 	 	11.07	 	 	 	10,650,270	 
	May	 	 	17.47	 	 	 	15.03	 	 	 	7,265,312	 	 	 	14.26	 	 	 	12.09	 	 	 	13,564,028	 
	June	 	 	18.40	 	 	 	16.43	 	 	 	6,901,025	 	 	 	14.96	 	 	 	13.15	 	 	 	15,592,195	 
	July	 	 	17.67	 	 	 	16.19	 	 	 	10,330,704	 	 	 	14.18	 	 	 	12.65	 	 	 	11,242,599	 
	August	 	 	17.33	 	 	 	14.88	 	 	 	6,998,034	 	 	 	13.70	 	 	 	11.44	 	 	 	11,711,865	 
	September	 	 	15.65	 	 	 	14.03	 	 	 	7,432,505	 	 	 	12.41	 	 	 	10.97	 	 	 	15,962,822	 
	October	 	 	16.11	 	 	 	13.85	 	 	 	6,423,637	 	 	 	13.00	 	 	 	10.98	 	 	 	10,541,830	 
	November	 	 	17.14	 	 	 	14.98	 	 	 	8,000,377	 	 	 	13.63	 	 	 	12.01	 	 	 	11,733,484	 
	December	 	 	15.73	 	 	 	14.01	 	 	 	6,030,625	 	 	 	12.31	 	 	 	10.88	 	 	 	16,450,720	 
	2022	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	15.51	 	 	 	13.60	 	 	 	7,961,664	 	 	 	12.39	 	 	 	10.64	 	 	 	14,494,590	 
	February	 	 	16.35	 	 	 	13.89	 	 	 	6,654,061	 	 	 	12.81	 	 	 	10.93	 	 	 	12,905,757	 
	March(1)	 	 	18.59	 	 	 	15.65	 	 	 	6,764,312	 	 	 	14.57	 	 	 	12.36	 	 	 	13,001,602	 

 

		(1)	Up to and including March 16, 2022.

 

The closing price of the Osisko Shares on the
TSX on March 16, 2022 was $17.72. The closing price of the Osisko Shares on the NYSE on March 16, 2022 was US$13.97.

 

    51

     

    

 

Warrants

 

Up to February 18, 2022, Warrants of Osisko were
listed on the TSX under the symbol OR.WT. The following tables sets forth the price range and trading volume for the warrants on the TSX,
for the periods indicated.

 

	 	 	OR.WT	 
	 	 	High
 (C$)	 	 	Low
 (C$)	 	 	Volume
 (#)	 
	2021	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	0.375	 	 	 	0.32	 	 	 	136,316	 
	February	 	 	0.32	 	 	 	0.18	 	 	 	169,114	 
	March	 	 	0.22	 	 	 	0.19	 	 	 	33,387	 
	April	 	 	0.21	 	 	 	0.14	 	 	 	127,497	 
	May	 	 	0.15	 	 	 	0.135	 	 	 	49,300	 
	June	 	 	0.155	 	 	 	0.125	 	 	 	34,316	 
	July	 	 	0.115	 	 	 	0.07	 	 	 	35,500	 
	August	 	 	0.085	 	 	 	0.08	 	 	 	15,800	 
	September	 	 	0.11	 	 	 	0.03	 	 	 	198,715	 
	October	 	 	0.055	 	 	 	0.02	 	 	 	105,832	 
	November	 	 	0.055	 	 	 	0.04	 	 	 	70,010	 
	December	 	 	0.04	 	 	 	0.015	 	 	 	95,750	 
	2022	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	0.015	 	 	 	0.005	 	 	 	115,277	 
	February(1)	 	 	0.005	 	 	 	0.005	 	 	 	193,550	 

 

		(1)	Up to and including their expiration on February 18, 2022.

 

The closing price of the warrants
 “OR.WT” on the TSX on February 18, 2022, their last trading day, was $0.005.

 

Debentures

 

The Debentures are listed on the TSX under the
symbol “OR.DB”. The following table sets forth the price range and trading volume for the Debentures on the TSX, for the periods
indicated:

 

	 	 	OR.DB	 
	 	 	High
 (C$)	 	 	Low
 (C$)	 	 	Volume
 (#)	 
	2021	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	105.00	 	 	 	101.50	 	 	 	8,200	 
	February	 	 	103.17	 	 	 	100.66	 	 	 	101,670	 
	March	 	 	102.03	 	 	 	100.75	 	 	 	69,930	 
	April	 	 	103.50	 	 	 	101.50	 	 	 	28,850	 
	May	 	 	105.08	 	 	 	103.43	 	 	 	194,590	 
	June	 	 	105.99	 	 	 	103.75	 	 	 	9,610	 
	July	 	 	104.64	 	 	 	103.16	 	 	 	10,250	 
	August	 	 	102.05	 	 	 	100.81	 	 	 	54,180	 
	September	 	 	102.04	 	 	 	100.30	 	 	 	169,240	 
	October	 	 	102.00	 	 	 	100.50	 	 	 	135,010	 
	November	 	 	103.50	 	 	 	101.50	 	 	 	6,260	 
	December	 	 	102.50	 	 	 	100.51	 	 	 	11,140	 
	2022	 	 	 	 	 	 	 	 	 	 	 	 
	January	 	 	101.56	 	 	 	100.51	 	 	 	4,850	 
	February	 	 	101.78	 	 	 	101.00	 	 	 	17,650	 
	March(1)	 	 	103.00	 	 	 	101.25	 	 	 	22,720	 

 

		(1)	Up to and including March 16, 2022.

 

The closing price of the Debentures “OR.DB” on the TSX on March 16, 2022 was $102.05.

 

    52

     

    

 

Prior Sales - Securities Not Listed or Quoted
on a Marketplace

 

The only securities of Osisko that were outstanding
as of December 31, 2021 but not listed or quoted on a marketplace are the Osisko Options, the Replacement Osisko Options, the Osisko RSUs
and the Osisko DSUs.

 

The price at which such securities have been issued
by Osisko during the most recently completed financial year, the number of securities of the class issued at that price and the date on
which such securities were issued are detailed hereinbelow.

 

Osisko Options

 

The following table sets forth the number of Osisko
Options granted during the most recently completed financial year, the date of grant and the exercise price thereof.

 

	Date of Grant	 	Number of Osisko Options	 	 	Exercise Price Per Osisko Option	 
	March 1, 2021	 	 	658,300	 	 	$	12.70	 
	May 14, 2021	 	 	45,000	 	 	$	16.46	 
	June 25, 2021	 	 	55,400	 	 	$	17.12	 
	November 12, 2021	 	 	5,000	 	 	$	16.71	 

 

Restricted Share Units

 

During the financial year ended December 31, 2021,
Osisko granted a total of 293,610 Osisko RSUs pursuant to the Osisko RSU Plan and under which equity securities of Osisko are authorized
for issuance. The table below shows Osisko RSUs granted in 2021, which provide the right to receive payment in the form of Osisko Shares,
cash or a combination of Osisko Shares and in cash, at Osisko’s sole discretion:

 

	Date of Grant	 	Number of Osisko RSUs	 	 	Osisko Share Price at the time of Grant	 
	March 1, 2021	 	 	255,200	 	 	$	12.70	 
	May 14, 2021	 	 	15,210	 	 	$	16.46	 
	June 25, 2021	 	 	23,200	 	 	$	17.12	 

 

Deferred Share Units

 

During the financial year ended December 31, 2021,
Osisko granted a total of 64,720 Osisko DSUs pursuant to the Osisko DSU Plan and under which equity securities of Osisko are authorized
for issuance. The table below shows Osisko DSUs granted in 2021, which provide the right to receive payment in the form of Osisko Shares,
cash or a combination of Osisko Shares and in cash, at Osisko’s sole discretion:

 

	Date of Grant	 	Number of Osisko DSUs	 	 	Osisko Share Price at the time of Grant	 
	March 1, 2021	 	 	15,800	 	 	$	12.70	 
	May 14, 2021	 	 	48,920	 	 	$	16.46	 

 

    53

     

    

 

Directors and Officers

 

Name, Address, Occupation and Security Holdings

 

The following table sets out the Osisko directors
and officers, together with their province or state and country of residence, positions and offices held, principal occupations during
the last five years, the years in which they were first appointed as directors and/or officers of Osisko, as of December 31, 2021.

 

	
     

     

    Name and
place of residence
	
     

     

     

    Principal
occupations during the last five (5) years(5)
	

    Director and/or

    Officer since

	
    Sean Roosen

    Québec, Canada

    Executive Chair
	Chief Executive Officer and Chair of the Board of Directors of Osisko Development and Executive Chair of Osisko since November 2020. Chair and Chief Executive Officer of Osisko from June 2014 to November 2020. 	2014
	
    Joanne Ferstman(1,2)

    Ontario, Canada

    Lead Director
	Corporate Director and Chartered Professional Accountant. 	2014
	
    John R. Baird(3,4)

    Ontario, Canada

    Director
	Corporate Director and Advisor with Bennett Jones LLP.	2020
	
    Christopher C. Curfman(2,3)

    Illinois, United States of America

    Director
	Corporate Director. 	2016
	
    Pierre Labbé(1,2,3)

    Québec, Canada

    Director
	Chief Financial Officer of IMV Inc. 	2015
	
    Candace MacGibbon(1,2)

    Ontario, Canada

    Director
	Corporate Director and former Chief Executive Officer of INV Metals Inc. from October 2015 to July 2021.	2021
	
    William Murray John(3,4)

    British Columbia, Canada

    Director
	Corporate Director. 	2020
	
    Charles E. Page(1,4)

    Ontario, Canada

    Director
	Corporate Director and Professional Geologist.	2014
	
    Sandeep Singh

    Ontario, Canada

    President, Chief Executive Officer and Director
	President and Chief Executive Officer of Osisko since November 2020 and President of Osisko from December 2019 to November 2020. Prior to December 2019, investment banker in the metals and mining industry.	2019
	
    Guy Desharnais

    Québec, Canada

    Vice President, Project Evaluation
	Vice President, Project Evaluation of Osisko since August 2020. From September 2017 to August 2020, Director of Mineral Resource Evaluation for Osisko. From August 2010 to June 2017, Technical Manager of Geological Services of SGS.	2020
	
    Iain Farmer

    Québec, Canada

    Vice President, Corporate Development
	Vice President, Corporate Development of Osisko. Prior to February 2020, Director of Evaluations for Osisko.	2020
	André Le Bel

Québec, Canada

Vice President, Legal Affairs and Corporate Secretary	Vice President, Legal Affairs and Corporate Secretary of Osisko. He is also the Vice President, Legal Affairs and Corporate Secretary of Falco Resources and the Corporate Secretary of Osisko Development.	2015

 

    54

     

    

 

	
    Frédéric Ruel

    Québec, Canada

    Chief Financial Officer and Vice President, Finance
	Chief Financial Officer and Vice President, Finance of Osisko. Prior to February 2020, Vice President, Corporate Controller of Osisko and Falco; from January 2015 to November 2016, Corporate Controller of Osisko. From November 2016 to July 2017, Corporate Controller of Falco.	2016
	
    Heather Taylor

    Ontario, Canada

    Vice President, Investor Relations
	Vice President, Investor Relations of Osisko. Prior to January 2021, Head of Business Development at Nexa Resources SA from June 2020 to December 2020 and Investor Relations at Nevsun Resources Ltd from November 2016 to January 2019.	2021

 

		(1)	Member of the Osisko Audit and Risk Committee. Ms. Joanne Ferstman is Chair of the Audit and
Risk Committee.

		(2)	Member of the Osisko Human Resources Committee. Mr. Pierre Labbé is Chair of the Human Resources
Committee.

		(3)	Member of the Osisko Governance and Nomination Committee. Mr. John R. Baird is Chair of the Governance
and Nomination Committee.

		(4)	Member of the Osisko Environmental and Sustainability Committee. Mr. Murray John is Chair of the
Environmental and Sustainability Committee.

		(5)	The information as to principal occupations has been furnished by each director and/or officer individually.

 

Biographic Notes

 

Sean Roosen, Executive Chair of the Board
of Directors

 

Mr. Sean Roosen is a founding member
of the Corporation and he was appointed Executive Chair of the Board of Directors on November 25, 2020. Prior to that, he was Chief Executive
Officer and Chair of the Board of Directors of the Corporation. Mr. Roosen was a founding member of Osisko Mining Corporation (2003)
and of EurAsia Holding AG, a European venture capital fund. He has over 30 years of progressive experience in the mining industry. As
founder, President, Chief Executive Officer and Director of Osisko Mining Corporation, he was responsible for developing the strategic
plan for the discovery, financing and development of the Canadian Malartic Mine. He also led the efforts for the maximization of shareholders’
value in the sale of Osisko Mining Corporation, which resulted in the creation of Osisko. Mr. Roosen is an active participant in
the resource sector and in the formation of new companies to explore for mineral deposits both in Canada and internationally. In 2017,
Mr. Roosen received an award from Mines and Money Americas for best Chief Executive Officer in North America and was, in addition, named
in the “Top 20 Most Influential Individuals in Global Mining”. Mr. Roosen serves on the boards of directors of Osisko
Mining Inc., as Chair and Chief Executive Officer of Osisko Development and as Chair and Chief Executive Officer of Osisko Green Acquisition
Limited. He previous served on the board of directors of Victoria Gold Corp. (2018 – 2021), Barkerville Gold Mines Ltd. (2015 -
2019), Condor Petroleum Inc. (2011-2019), Dalaradian Resources Inc. (2010 – 2018) and Falco Resources Ltd. (2014 - 2019)

 

In prior years, he has been recognized by several
organizations for his entrepreneurial successes and his leadership in innovative sustainability practices. Mr. Roosen is a graduate
of the Haileybury School of Mines.

 

Joanne Ferstman, CPA, CA, Independent
Lead Director

 

Ms. Joanne Ferstman is a corporate director,
who has been serving on a number of public company boards and has over 20 years of progressive experience in the financial industry. She
was until 2012 President and Chief Executive Officer of Dundee Capital Market Inc., a full service investment dealer with principal businesses
that include investment banking, institutional sales and trading, and private client financial advisory. She has held several leadership
positions within Dundee Corporation and DundeeWealth Inc. over 18 years, primarily as Chief Financier Officer, where she was responsible
for strategic development, financial and regulatory reporting and risk management. Ms. Ferstman was appointed to the Board of Directors
of Osisko Development Corp. as a nominee of the Corporation in accordance with the terms and conditions of an Investment Agreement. She
also serves on the board of directors of Deam Unlimited Corp., Cogeco Communications Inc. and ATS Automatic Tooling Systems. She previously
served on the board of directors of Dream Office REIT (2003 - 2018).

 

    55

     

    

 

Ms. Ferstman holds a Bachelor of Commerce
and a Graduate degree in Public Accountancy from McGill University and is a Chartered Professional Accountant.

 

The Hon. John R. Baird, Independent
Director

 

Mr. Baird is an advisor to a variety of firms
in Canada and abroad. He was a former Senior Cabinet Minister in the Government of Canada and was the former Canadian Minister of Foreign
Affairs.

 

A native of Ottawa, Mr. Baird spent three terms
as a Member of Parliament and four years as Minister of Foreign Affairs where he advanced Canada/US relations and worked to strengthen
ties to the Middle East and China. He also served as President of the Treasury Board, Minister of the Environment, Minister of Transport
and Infrastructure, and Leader of the Government in the House of Commons. In 2010, he was selected by MPs from all parties as Parliamentarian
of the Year. Prior to entering federal politics, Mr. Baird spent ten years in the Ontario Legislature where he served in several Ministerial
portfolios. In addition to Canfor, Mr. Baird sits on the corporate boards of Canadian Pacific, the FWD Group, and PineBridge Investments,
and is a member of the International Advisory Board of Barrick Gold Corp. He also serves as a Senior Advisor with Bennett Jones LLP,
and is a Senior Advisor at Eurasia Group, a global political risk consultancy. Mr. Baird also volunteers his time with Community Living
Ontario, an organization that supports individuals with developmental disabilities and the Prince’s Charities, the charitable office
of His Royal Highness The Prince of Wales. Mr. Baird serves on the board of directors of Canfor Corporation, Canfor Pulp and Products
Inc., Canadian Pacific Railway Limited and Canadian Pacific Railway Company.

 

Mr.
Baird holds an Honours Bachelor of Arts in Political Studies from Queen’s University at Kingston and was presented with
an Honorary Doctor of Law LLD at Queens’s University in 2018.

 

Christopher C. Curfman, B.Sc., Independent
Director

 

Mr. Christopher C. Curfman is a corporate
director and is a retired senior executive of Caterpillar Inc., one of the world’s largest mobile equipment suppliers to the mining
industry. During his 21-year career with Caterpillar Financial Services Limited, Mr. Curfman has held several progressive positions
in Asia, Australia and USA, including Senior Vice President of Caterpillar Financial Services Limited. and President of Caterpillar Global
Mining from 2011 to his retirement at the end of 2015. Mr. Curfman also held senior positions with Deere & Company prior to
joining Caterpillar Financial Services Limited. He has extensive international experience and a customer focused legacy at Caterpillar
Financial Services Limited. His global leadership was key to Caterpillar Financial Services Limited’s success in the mining industry.
He also served as a board member at various organisations, including the Canadian Institute of Mining, the National Mining Association,
the World Coal Association and several universities.

 

Mr. Curfman holds a Bachelor of Science
degree in Education from Northwestern University and has completed certificate programs in accounting and finance from the Wharton School
of Business, University of Pennsylvania in 1991, a three-year executive program from Louisiana State University in 1997 and the executive
program of Stanford Graduate School of Business in 2002. He was also awarded an Honorary Doctorate in Mining Engineering from the University
Missouri-Rolla in 2013.

 

Pierre Labbé, CPA, CA, ICD.D, Independent
Director

 

Mr. Pierre Labbé is Chief Financial
Officer of IMV Inc. since March 2017. He was Vice President and Chief Financial Officer of Leddartech Inc. from April 2015 to March
2017. He has more than 25 years of progressive financial leadership roles in various industries. He was Vice President and Chief
Financial Officer of the Québec Port Authority (October 2013 to April 2015), and has experience in the resource sector, having
served as Chief Financial Officer of Plexmar Resources (May 2007 to November 2012), Sequoia Minerals (December 2003 to June 2004), and
Mazarin Inc. (December 2002 to December 2003). Mr. Labbé, in his role as senior financial officer, has participated in the
development of strategic plans and in mergers and acquisitions (over $1 billion in transactions).

 

    56

     

    

 

Mr. Labbé holds a Bachelor’s
Degree in Business Administration and a license in accounting from Université Laval, Québec City. He is a member
of Ordre des comptables professionnels agréés du Québec, the Chartered Professional Accountants of Canada
and the Institute of Corporate Directors.

 

Candace MacGibbon, CPA, CA, Director

 

Ms. Candace MacGibbon has over 25 years of experience
in the mining sector and capital markets. She was until July 2021 the Chief Executive Officer of INV Metals Inc., a Canadian mineral
resource company focused on the development and exploration of the Loma Larga gold property in Ecuador. Ms. MacGibbon has a deep understanding
of the capital markets as a result of her previous employment as a global mining institutional salesperson with RBC Capital Markets and
in base metals research as a mining associate with BMO Capital Markets.

 

Ms. MacGibbon is a chartered professional accountant
and her financial and accounting experience includes her previous role as chief financial officer of INV Metals, as well as her prior
employment with Deloitte LLP.

 

She was appointed to the Board of Directors of
Carbon Streaming Corporation as a nominee of the Corporation in accordance with the terms and conditions of an Investor Rights Agreement.

 

Ms. MacGibbon holds a Bachelor of Arts –
Economics from the University of Western Ontario and a Diploma in Accounting from Wilfrid Laurier University.

 

William Murray John, B.Sc., MBA, Director

 

Mr. John is a mining
engineer and investment industry professional. He current serves as the Chair of the Board of Directors of Discovery Silver Corp. and
Prime Mining Corp. and is the Lead Director of O3 Mining. Corp. Prior to his retirement in December 2014, he was the President and Chief
Executive Officer of Dundee Resources Limited, and Managing Director and a Portfolio Manager with Goodman & Company, Investment Counsel
Inc., where he was responsible for managing merchant banking investments, Private Equity, resource and precious metals focused mutual
funds and flow-through limited partnerships. Mr. John has been involved with the resource investment industry since 1992 and has
worked as an investment banker, buy-side mining analyst, sell-side mining analyst, and portfolio manager.

 

He graduated from the Camborne School of Mines
in 1980 with a Bachelor of Science (Hons) in mining engineering and an Associateship of the Camborne School of Mines. Mr. John also
received a Master of Business Administration from the University of Toronto in 1993.

 

Charles E. Page, M.Sc., P.Geo., Director

 

Mr. Charles E. Page is a Professional Geologist
and has more than 40 years of experience in the mineral industry. During his career, Mr. Page has held progressive leadership roles
in developing strategies to explore, finance and develop mineral properties in Canada and internationally. Mr. Page worked at Queenston
Mining Inc. in various capacities, including President and Chief Executive Officer, from 1990 to its sale to Osisko Mining Corporation
in 2012. Mr. Page is the Lead Director of Osisko Development and also serves on the board of directors of Unigold Inc.

 

Mr. Page holds a Bachelor of Science degree
in Geological Science from Brock University and a Master of Science degree in Earth Science from the University of Waterloo. He is a Professional
Geologist registered in the province of Ontario and Saskatchewan and is also a Fellow of the Geological Association of Canada.

 

    57

     

    

 

Sandeep Singh, B. Eng., MBA, President
and Chief Executive Officer and Director

 

Mr. Sandeep Singh joined Osisko as President
in December 2019 and he was appointed as President and Chief Executive Officer of Osisko in November 2020. For the fifteen years prior,
Mr. Singh was an investment banker in the metals and mining industry where he advised numerous mining companies on growth and financing
strategies with Maxit Capital LP (2014-2019), Dundee Securities Ltd. (2010–2014) and BMO Capital Markets (2005-2010). As co-founder
of Maxit Capital LP, he was instrumental in building an independent and highly successful advisory firm which acted on some of the most
complex and value-enhancing transactions in the mining sector.

 

Mr. Singh holds a Bachelor of Mechanical Engineering
degree from Concordia University and a Masters of Business Administration degree from Oxford University.

 

Guy Desharnais, Ph.D., P.Geo., Vice President,
Project Evaluation

 

Mr. Guy Desharnais joined the technical services
team of Osisko in 2017 and was appointed Vice President, Project Evaluation in August 2020. After completing his Ph.D. in geochemistry
and igneous petrology, Mr. Desharnais worked five years as an exploration geologist with Xstrata Nickel (Glencore). He worked as
a Qualified Person and manager of SGS Geostat for seven years. He led the team that won the Integra Gold Rush Challenge in 2016.

 

He was named Distinguished Lecturer by the CIM
in 2017 and is an active member of the Mining Technical Advisory and Monitoring Committee for the Canadian Securities Administrators
and the “Comité Consultatif du Secteur Minier” for the Autorité des Marchés Financiers.

 

Iain Farmer, B. Eng., M. Eng., MBA, CFA,
Vice President, Corporate Development

 

Mr. Iain Farmer was appointed as Vice President,
Corporate Development of Osisko in February 2020. Mr. Farmer has been involved in the mining industry for 10 years having most recently
served as Director of Evaluations for Osisko where his responsibilities included financial and technical evaluation of investments as
well as origination and execution of transactions. Prior to joining Osisko, Mr. Farmer worked in equity research covering the mining
sector.

 

Mr. Farmer holds a Bachelor’s and a Master’s
degree in Mining Engineering from McGill University as well as a MBA from Concordia University’s Goodman School of Investment Management,
he has been a CFA Charterholder since 2016.

 

André Le Bel, LL.B., B.Sc.A, ICD.D,
Vice President, Legal Affairs and Corporate Secretary

 

Mr. André Le Bel has been
appointed Vice President, Legal Affairs and Corporate Secretary of Osisko in February 2015. From November 2007 to June 2014, Mr. Le Bel
was Vice President, Legal Affairs and Corporate Secretary of Osisko Mining Corporation. Mr. Le Bel was Vice President Legal
Affairs with IAMGOLD Corporation from November 2006 to October 2007 and before November 2006, Mr. Le Bel was Senior Legal Counsel
and Assistant Corporate Secretary of Cambior Inc. Mr. Le Bel was a director of RedQuest Capital Corp. until June 2017 and currently
serves on the board of directors of Brunswick Exploration Inc., listed on the TSX Venture Exchange. Mr. Le Bel was Vice President,
Legal Affairs and Corporate Secretary of NioGold Mining Corp. from March 2015 to March 2016 and Corporate Secretary of Falco from November
2015 to November 2016. Since that date, he is Vice President, Legal Affairs and Corporate Secretary of Falco and was appointed Corporate
Secretary of Osisko Development on February 26, 2021.

 

Mr. Le Bel obtained a Bachelor of Applied Science
from Université Laval and a Bachelor of Law from Sherbrooke University. He is a member of the Québec Bar and has
obtained the ICD.D designation from the Institute of Corporate Directors in December 2017.

 

    58

     

    

 

Frédéric Ruel, CPA, CA, Chief
Financial Officer and Vice President, Finance

 

Mr. Frédéric Ruel was appointed
as Chief Financial Officer and Vice President, Finance of Osisko in February 2020. Mr. Frédéric Ruel has previously
served as Vice President, Corporate Controller of Osisko from 2016 to February 2020. Frédéric Ruel has over 15 years of
experience in financial reporting and has been involved in the mining industry for over 12 years. Prior to joining Osisko, he held the
position of Director, Corporate Reporting for Canadian Malartic GP, Osisko Mining Corporation and Consolidated Thompson Iron Mines. Mr. Ruel
was Vice President, Corporate Controller of Falco from November 2016 to July 2017 and Chief Financial Officer of NioGold Mining Corp.
from March 2015 to March 2016. 

 

Mr. Ruel began his career as an auditor in a
premier Canadian accounting firm where he worked for seven (7) years. Mr. Ruel is a member of the Ordre des comptables professionnels
agréés du Québec and holds a Master in Accounting from Sherbrooke University.

 

Heather Taylor, BA, Vice President, Investor
Relations

 

Ms. Heather Taylor joined as Vice President,
Investor Relations of Osisko in January 2021. She has more than 15 years of capital markets experience specializing in the global metals
and mining industry. Ms Taylor most recently served as Head of Business Development at Nexa Resources SA overseeing and executing the
company’s M&A strategy and prior to that managed investor relations at Nevsun Resources Ltd, which was acquired by Zijin Mining
for $1.9 billion after a lengthy hostile defence process. In addition to her roles at Nexa and Nevsun, she brings with her a broad range
of experience from positions in institutional equity research, trading, sales and corporate development.

 

Ms. Taylor holds a Bachelor of Arts - Psychology
from the University of Western Ontario.

 

The directors of Osisko will be elected annually
at each annual general meeting of the Osisko Shareholders and will hold office until the next annual general meeting unless a director’s
office is earlier vacated in accordance with the articles of Osisko or until his or her successor is duly appointed or elected.

 

As at the date of this Annual Information Form,
all of the directors and officers, as a group, beneficially own, directly or indirectly, or exercise control or direction over 928,150
Osisko Shares, representing approximately 0.6% of the issued and outstanding Osisko Shares.

 

Cease Trade Orders, Bankruptcies, Penalties
or Sanctions

 

Corporate Cease Trade Orders

 

As at the date of this Annual Information Form,
no current director or executive officer of Osisko is, or within the ten years prior to the date of this Annual Information Form has
been, a director, chief executive officer or chief financial officer of any company (including Osisko), that:

 

		(a)	was subject to a cease trade order (including
                                            any management cease trade order which applied to directors or executive officers of a company,
                                            whether or not the person is named in the order), an order similar to a cease trade order,
                                            or an order that denied the relevant company access to any exemption under securities legislation,
                                            that was in effect for a period of more than 30 consecutive days (an “Order”)
                                            while that person was acting in that capacity; or
	 	 	 
	 	(b)	was subject to an Order that was issued after the current director or executive
                           officer ceased to be a director, chief executive officer or chief financial officer and which resulted from
                           an event that occurred while that person was acting in the capacity as director, chief executive officer or
                           chief financial officer.

 

Bankruptcy

 

To the knowledge of Osisko, as at the date of
this Annual Information Form, no current director, executive officer, or shareholder holding a sufficient number of securities of Osisko
to affect materially the control of Osisko is, or within the ten years prior to the date of this Annual Information Form has:

 

    59

     

    

 

		(a)	other than Mr. William Murray John,
                                            who was a director of insolvent African Minerals Limited, a company who appointed Deloitte
                                            LLP as its administrator by order of the High Court of Justice, Chancery Division, Companies
                                            Court on March 26, 2015, been a
                                            director or executive officer of any company (including Osisko) that, while that person was
                                            acting in that capacity, or within a year of that person ceasing to act in that capacity,
                                            became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency
                                            or was subject to or instituted any proceedings, arrangement or compromise with creditors
                                            or had a receiver, receiver manager or trustee appointed to hold its assets; or
	 	 	 
	 	(b)	become bankrupt, made a proposal under any legislation relating to bankruptcy
                           or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors,
                           or had a receiver manager or trustee appointed to hold the assets of the current or proposed director, executive
                           officer or shareholder.

 

Penalties and Sanctions

 

To the knowledge of Osisko, as at the date of
this Annual Information Form, no current director, executive officer, or shareholder holding a sufficient number of securities of Osisko
to affect materially the control of Osisko has been subject to any penalties or sanctions imposed by a court relating to securities legislation
or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority or any other
penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making
an investment decision.

 

Conflicts of Interest

 

Certain of the directors and officers of Osisko
will not be devoting all of their time to the affairs of Osisko. Certain of the directors and officers of Osisko are directors and officers
of other companies, some of which are in the same business as Osisko. See “Risk Factors”.

 

The directors and officers of Osisko are required
by law to act in the best interests of Osisko. They have the same obligations to the other companies in respect of which they act as
directors and officers. Any decision made by any of such officers or directors involving Osisko will be made in accordance with their
duties and obligations under the applicable laws of Canada.

 

As part of its business model and in connection
with its investments made in various other companies, either by acquiring equity interests, purchasing royalties, streams or other interests
or options thereon or otherwise, Osisko generally expects from its directors and officers to be actively involved within such investee
companies, which may include occupying seats on their board of directors. Osisko acknowledges that a director or an officer serving on
too many public boards of directors might be “overboarded”. Consequently, all directors and officers of Osisko must submit
to the Governance and Nomination Committee any offer to join an outside board of directors in order to ensure that any additional directorship
would not impair the ability to adequately fulfill the responsibilities assigned to the directors and officers of the Company.

 

As a general guideline, the Governance and Nomination
Committee of Osisko will consider that a director or officer of Osisko should be regarded as “overboarded” if he or she:

 

		(a)	has attended fewer than 75% of Osisko’s
                                            board and committee meetings held within the past year without a valid reason for the absences;

 

and

 

		(b)	

		(i)	is the President and Chief Executive Officer
                                            of Osisko, he or she sits on more than two (2) “outside public company board”,
                                            in addition to Osisko; or

 

		(ii)	if not the President and Chief Executive
                                            Officer of Osisko, sits on more than five (5) public company boards, in addition to Osisko.

 

    60

     

    

 

In determining what is an ‟outside
public company board”, the Governance and Nomination Committee specifically excludes investee companies for the reason that becoming
a director of such companies is crucial in order to oversee and supervise Osisko’s investment in such investee companies. This
representation allows Osisko to protect its shareholders’ interests.

 

Legal
Proceedings and regulatory actions

 

Legal Proceedings

 

During the fiscal year ended December 31, 2021
and as of the date hereof, there have been and are no material legal proceedings outstanding, threatened or pending, by or against Osisko
or to which Osisko is a party or to which any of Osisko’s property is subject, nor to Osisko’s knowledge are any such legal
proceedings contemplated, and which could become material to Osisko.

 

Regulatory Actions

 

During the fiscal year ended December 31, 2021
and as of the date hereof, there have been no penalties or sanctions imposed against Osisko (a) by a court relating to securities legislation
or by a securities regulatory authority or (b) by a court or regulatory body that would likely be considered important to a reasonable
investor making an investment decision in Osisko. Osisko has not entered into any settlement agreements with a court relating to securities
legislation or with a securities regulatory authority during the fiscal year ended December 31, 2021 and as of the date hereof.

 

Interest of Management
and Others in Material Transactions

 

Within the three (3) most recently completed
financial years or during the current financial year, no director or executive officer of Osisko, or shareholder who beneficially owns,
or controls or directs, directly or indirectly, more than 10% of the outstanding Osisko Shares, or any known associates or affiliates
of such persons, has or has had any material interest, direct or indirect, in any transaction or in any proposed transaction that has
materially affected or is reasonably expected to materially affect Osisko except for Orion as a result of the Orion Share Repurchase.

 

Transfer Agents
and Registrars

 

The transfer agent and registrar for the Osisko
Shares is TSX Trust Company (Canada), which is located at 2001 Robert-Bourassa, Suite 1600, Montreal, Québec, Canada H3A 2A6.

 

Material Contracts

 

The following are the material contracts entered
into by Osisko or its subsidiaries and that are currently in effect:

 

		(a)	the Canadian Malartic Royalty Agreement;

 

		(b)	a debenture indenture dated November 3,
                                            2017 between Osisko and AST Trust Company (Canada), as debenture trustee, pursuant to which
                                            the Debentures were created and issued and by which they are governed; and

 

		(c)	the Credit Facility.

 

    61

     

    

 

Interests Of Experts

 

Mr. Guy Desharnais, Ph.D., P.Geo, is named in
this Annual Information Form as having reviewed and approved certain scientific and technical information as set out in this Annual Information
Form.

 

As of the date of this Annual Information Form,
Mr. Guy Desharnais, Ph.D., P. Geo, beneficially owned, directly or indirectly, less than 1% of Osisko’s outstanding securities
including the securities of Osisko’s associate or affiliate entities.

 

PricewaterhouseCoopers LLP,
a partnership of Chartered Professional Accountants, the independent auditor of Osisko, has advised that it is independent with respect
to Osisko within the meaning of the Code of ethics of chartered professional accountants (Québec) and has complied with
the SEC’s rules on auditor independence and Rule 3520 Auditor Independence of the Public Company Accounting Oversight Board.

 

Other than as described above, none of the aforementioned
persons or companies, nor any director, officer or employee of any of the aforementioned persons or companies is, or is expected to be
elected, appointed or employed as, a director, officer or employee of Osisko or of any associate or affiliate of Osisko.

 

ADDITIONAL INFORMATION

 

Additional information
relating to Osisko, which is not and shall not be deemed to be incorporated by reference in this Annual Information Form, is available
electronically on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and
on its website at www.osiskogr.com.

 

Additional information, which is not and shall
not be deemed to be incorporated by reference in this Annual Information Form, including directors’ and officers’ remuneration
and indebtedness, principal holders of Osisko’s securities and securities authorized for issuance under equity compensation plans,
is contained in Osisko’s management information circular for its annual meeting of shareholders held on May 12, 2021. For information
relating to corporate governance related matters, please see “Statement of Corporate Governance Practices” in such circular.

 

Additional financial information, which is not
and shall not be deemed to be incorporated by reference in this Annual Information Form, is provided in Osisko’s financial statements
and management discussion and analysis for its most recently completed financial year.

 

Audit AND RISK
Committee

 

Description of the Audit and Risk Committee

 

The Osisko Audit and Risk Committee assists the
Osisko Board in fulfilling its oversight responsibilities with respect to the following: (a) in its oversight of Osisko’s accounting
and financial reporting principles and policies and internal audit controls and procedures; (b) in its oversight of the integrity and
transparency of Osisko’s financial statements and the independent audit thereof; (c) in selecting, evaluating and, where deemed
appropriate, replacing the external auditor; (d) in evaluating the qualification, independence and performance of the external auditor;
(e) in its oversight of Osisko’s risk identification, assessment and management program; and (f) in Osisko’s compliance with
legal and regulatory requirements in respect of the above. The Osisko Board has adopted the Osisko Audit and Risk Committee Charter,
a copy of which is attached as Schedule “A”, mandating the role of the Osisko Audit and Risk Committee in supporting the
Osisko Board in meeting its responsibilities to Osisko Shareholders.

 

Audit and Risk Committee Members

 

As of the date of this Annual Information Form,
the Osisko Audit and Risk Committee is comprised of four (4) members, all of whom are independent directors of Osisko, namely: Ms. Joanne
Ferstman (Chair), Mr. Pierre Labbé, Mr. Charles E. Page and Ms. Candace MacGibbon. Ms. Ferstman (Chair) is an “audit
committee financial expert” (as such term is defined in paragraph 8(b) of General Instruction B to Form 40-F under the U.S.
Exchange Act).

 

    62

     

    

 

Relevant Education and Experience

 

Joanne Ferstman

 

Ms. Ferstman (Chair) is a corporate director,
sitting on a number of public company boards. From 2013 to 2014, Ms. Ferstman was a Director of Osisko Mining Corporation. Since
November 2020, she is a director of Osisko Development. Ms. Ferstman was until June 2012 the President and Chief Executive Officer of
Dundee Capital Markets Inc., a full service investment dealer with principal businesses that include investment banking, institutional
sales and trading and private client financial advisory. Prior to taking this position on January 31, 2011, Ms. Ferstman was Vice-Chair
and Head of Capital Markets of DundeeWealth Inc., a diversified wealth management public company that managed and advised over $75 billion
of assets under management and administration, including the Dynamic Funds family, at the time it was sold to the Bank of Nova Scotia
in early 2011. Prior to 2009, Ms. Ferstman was Executive Vice President and Chief Financial Officer of DundeeWealth Inc. and Executive
Vice President, Chief Financial Officer and Corporate Secretary of Dundee Corporation. In these senior financial roles, Ms. Ferstman
was intimately involved in all corporate strategy, including acquisitions and financings, and had responsibility for all public financial
reporting. Additionally, Ms. Ferstman was regularly Dundee’s nominee on investee company boards and audit committees in both the
resources and real estate sectors.

 

Over 18 years, Ms. Ferstman held a variety of
executive positions with the Dundee group of companies until her retirement in June 2012. Prior to joining the Dundee group of companies,
Ms. Ferstman spent five years at a major international accounting firm. She served on the board of directors of Aimia Inc. from
June 2008 to June 2017. Ms. Ferstman currently serves as Chair of the board of Dream Unlimited Corp, including serving as Chair
of the Audit Committee, member of the Organization & Design Committee and member of the Leaders & Mentors Committee. She also
serves as a director of Cogeco Communications Inc., including serving as Chair of the Audit Committee and a member of the Strategic Opportunities
Committee. In August 2018 she was appointed to the board of the directors of ATS Automation Tooling Systems Inc. and currently serves
as Chair of its Audit Committee and serves as a member of the Governance Committee. Ms. Ferstman holds a Bachelor of Commerce and
a Graduate degree in Public Accountancy from McGill University and is a Chartered Professional Accountant.

 

Ms. Ferstman is considered to be independent
of Osisko and is financially literate, within the meaning of NI 52-110 and under the U.S. Exchange Act and NYSE rules.

 

Pierre Labbé

 

Mr. Pierre Labbé is Chief Financial Officer
of IMV Inc. since March 2017. He was Vice President and Chief Financial Officer of Leddartech Inc. from April 2015 to March 2017. He
has more than 25 years of progressive financial leadership roles in various industries. He was Vice President and Chief Financial Officer
of the Québec Port Authority (October 2013 to April 2015), and has experience in the resource sector, having served as Chief Financial
Officer of Plexmar Resources (May 2007 to November 2012), Sequoia Minerals (December 2003 to June 2004), and Mazarin Inc. (December 2002
to December 2003). Mr. Labbé, in his role as senior financial officer, has participated in the development of strategic plans
and in mergers and acquisitions (over $1 billion in transactions). Mr. Labbé holds a Bachelor’s Degree in Business Administration
and a license in accounting from Université Laval, Québec City. He is a member of Ordre des comptables professionnels
agréés du Québec, the Chartered Professional Accountants of Canada and the Institute of Corporate Directors.

 

Mr. Labbé is considered to be independent
of Osisko and is financially literate, within the meaning of NI 52-110 and under the U.S. Exchange Act and NYSE rules.

 

    63

     

    

 

Charles E. Page

 

Mr. Charles E. Page is a Professional Geologist
and has more than 40 years of experience in the mineral industry. Since November 2020, he is the Lead Director of Osisko Development.
During his career, Mr. Page has held progressive leadership roles in developing strategies to explore, finance and develop mineral properties
in Canada and internationally. Mr. Page worked at Queenston Mining Inc. in various capacities, including President and Chief Executive
Officer, from 1990 to its sale to Osisko Mining Corporation in 2012. Mr. Page also serves on the board of directors of Unigold Inc. Mr.
Page holds a Bachelor of Science degree in Geological Science from Brock University and a Master of Science degree in Earth Science from
the University of Waterloo. He is a Professional Geologist registered in the province of Ontario and Saskatchewan and is also a Fellow
of the Geological Association of Canada.

 

Mr. Page is considered to be independent of Osisko
and is financially literate, within the meaning of NI 52-110 and under the U.S. Exchange Act and NYSE rules.

 

Candace MacGibbon

 

Ms. Candace MacGibbon is a corporate Director.
She was the Chief Executive Officer of INV Metals Inc. from October 2015 to July 2021. She is a Chartered Professional Accountant (CPA,
CA) with over 25 years’ experience in the mining sector and capital markets, as a result of her previous employment as a global
mining institutional salesperson with RBC Capital Markets and in base metals research as a mining associate with BMO Capital Markets.
Ms. MacGibbon’s experience in accounting matters includes her previous roles as a Manager at Deloitte LLP and as a cost analyst
with Inco Limited. Ms. MacGibbon holds a Bachelor of Arts - Economics from the University of Western Ontario and a Diploma in Accounting
from Wilfrid Laurier University.

 

Ms. MacGibbon is considered to be independent
of Osisko and is financially literate, within the meaning of NI 52-110 and under the U.S. Exchange Act and NYSE rules.

 

External Auditor Service Fees

The fees billed to Osisko by its independent auditor, PricewaterhouseCoopers LLP, a partnership of Chartered Professional Accountants,
for the fiscal years ended December 31, 2021 and December 31, 2020, by category, are as follows:

 

	Year	 	 	Audit
    Fees(1)	 	 	Audit
    Related Fees(2)	 	 	Tax
    Fees(3)	 	 	All Other
    Fees	 
	December
    31, 2021	 	 	$	966,148	 	 	$	66,150	 	 	$	96,591	 	 	$	-	 
	December
    31, 2020	 	 	$	1,265,182	 	 	$	119,438	 	 	$	164,844	 	 	$	-	 

 

NOTES:

 

		(1)	The audit fees include services rendered
                                            in connection with the audit of the Corporation’s annual consolidated financial statements
                                            and annual audit fees for two separate audit opinions of two subsidiaries of the Corporation.
                                            Audit fees were higher in 2020 primarily due to the services rendered in relation to the
                                            Filing Statement of Barolo Ventures Corp. dated as of November 20, 2020 in respect of
                                            the reverse takeover transaction involving Osisko.

		(2)	The audit-related fees are related to translation
                                            services for financial statements and management’s discussion and analysis reports.

		(3)	Tax fees are related to tax compliance, tax
                                            planning and tax advice services for the preparation of corporate tax returns and for proposed
                                            transactions.

 

    64

     

    

 

SCHEDULE
A

AUDIT AND RISK COMMITTEE CHARTER

 

		I.	Purposes
                                            of the Audit and Risk Committee

 

The purposes of the Audit
and Risk Committee are to assist the Board of Directors:

 

		1.	in its oversight of the Corporation’s
                                            accounting and financial reporting principles and policies and internal audit controls and
                                            procedures;

 

		2.	in its oversight of the integrity, transparency
                                            and quality of the Corporation’s financial statements and the independent audit thereof;

 

		3.	in selecting, evaluating and, where deemed
                                            appropriate, replacing the external auditors;

 

		4.	in evaluating the qualification, independence
                                            and performance of the external auditors;

 

		5.	in its oversight of the Corporation’s
                                            risk identification, assessment and management program; and

 

		6.	in the Corporation’s compliance with
                                            legal and regulatory requirements in respect of the above.

 

The function of the Audit and Risk
Committee is to provide independent and objective oversight. The Corporation’s management team is responsible for the preparation,
presentation and integrity of the Corporation’s financial statements. Management is responsible for maintaining appropriate accounting
and financial reporting principles and policies and internal controls and procedures that provide for compliance with accounting standards
and applicable laws and regulations. The external auditors are responsible for planning and carrying out a proper audit of the Corporation’s
annual financial statements and other procedures. In fulfilling their responsibilities hereunder, it is recognized that members of the
Audit and Risk Committee are not full-time employees of the Corporation and are not, and do not represent themselves to be, accountants
or auditors by profession or experts in the fields of accounting or auditing including in respect of auditor independence. As such, it
is not the duty or responsibility of the Audit and Risk Committee or its members to conduct “field work” or other types of
auditing or accounting reviews or procedures or to set auditor independence standards, and each member of the Audit and Risk Committee
shall be entitled to rely on (i) the integrity of those persons and organizations within and external to the Corporation from which it
receives information, (ii) the accuracy of the financial and other information provided to the Audit and Risk Committee by such persons
or organizations absent actual knowledge to the contrary (which shall be promptly reported to the Board of Directors) and (iii) representations
made by management as to non-audit services provided by the auditors to the Corporation.

 

The external auditors are ultimately
accountable to the Board of Directors and the Audit and Risk Committee as representatives of shareholders. The Audit and Risk Committee
is directly responsible (subject to the Board of Directors’ approval) for the appointment, compensation, retention (including termination),
scope and oversight of the work of the external auditors engaged by the Corporation (including for the purpose of preparing or issuing
an audit report or performing other audit, review or attestation services or other work of the Corporation), and is also directly responsible
for the resolution of any disagreements between management and any such firm regarding financial reporting.

 

    65

     

    

 

The external auditors shall submit,
at least annually, to the Corporation and the Audit and Risk Committee:

 

		·	as
                                            representatives of the shareholders of the Corporation, a formal written statement delineating
                                            all relationships between the external auditors and the Corporation (“Statement
                                            as to Independence”);

		·	a
                                            formal written statement of the fees billed in compliance with the disclosure requirements
                                            of Form 52-110F1 of National Instrument 52-110; and

		·	a
                                            report describing: the Corporation’s internal quality-control procedures; any material
                                            issues raised by the most recent internal quality control review, or peer review, of the
                                            Corporation, or by any inquiry or investigation by governmental or professional authorities,
                                            within the preceding five years, respecting one or more independent audits carried out by
                                            the Corporation, and any steps taken to deal with any such issues.

 

		II.	Composition
                                            of the Audit and Risk Committee

 

The Audit and Risk Committee shall
be comprised of three or more independent directors as defined under applicable legislation and stock exchange rules and guidelines and
are appointed (and may be replaced) by the Board of Directors on the recommendation of the Governance and Nomination Committee. Determination
as to whether a particular director satisfies the requirements for membership on the Audit and Risk Committee shall be made by the Board
of Directors.

 

All members of the Audit and Risk Committee
shall be financially literate within the meaning of National Instrument 52-110 – Audit Committees (“NI 52-110”)
and any other securities legislation and stock exchange rules applicable to the Corporation, and as confirmed by the Board of Directors
using its business judgement (including but not limited to be able to read and understand a set of financial statements that present
a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of the issues that
can reasonably be expected to be raised by the Corporation’s financial statements), and at least one member of the Audit and Risk
Committee shall have accounting or related financial expertise or sophistication as such qualifications are interpreted by the Board
of Directors in light of applicable laws and stock exchange rules, including the requirement to have at least one “audit committee
financial expert” as such term is defined pursuant to Form 40-F under the U.S. Securities Exchange Act of 1934, as amended. The
later criteria may be satisfied by past employment experience in finance or accounting, requisite professional certification in accounting,
or any other comparable experience or background which results in the individual’s financial sophistication, including being or
having been a chief executive officer, chief financial officer or other senior officer of an entity with financial oversight responsibilities,
as well as other requirements under applicable laws and stock exchange rules.

 

		III.	membership,
                                            Meetings and quorum 

 

The Audit and Risk Committee shall
meet at least four times annually or more frequently if circumstances dictate, to discuss with management the annual audited financial
statements and quarterly financial statements, and all other related matters. The Audit and Risk Committee may request any officer or
employee of the Corporation or the Corporation’s external counsel or external auditors to attend a meeting of the Audit and Risk
Committee or to meet with any members of, or consultants to, the Audit and Risk Committee.

 

Proceedings and meetings of the Audit
and Risk Committee are governed by the provisions of By-Laws relating to the regulation of the meetings and proceedings of the Board
of Directors as they are applicable and not inconsistent with this Charter and the other provisions adopted by the Board of Directors
in regards to committee composition and organization.

 

The quorum at any meeting of the
Audit and Risk Committee is a majority of members in office. All members of the Audit and Risk Committee should strive to be at all meetings.

 

    66

     

    

 

		IV.	Duties
                                            and Powers of the Audit and Risk Committee

 

To carry out its purposes, the Audit
and Risk Committee shall have unrestricted access to information and shall have the following duties and powers:

 

		1.	with respect to the external auditor,

 

	 	(i)	to review and assess, at least annually,
                                            the performance of the external auditors, and recommend to the Board of Directors the nomination
                                            of the external auditors for appointment by the shareholders, or if required, the revocation
                                            of appointment of the external auditors;
	 	 	 
	 	(ii)	to review and approve the fees charged by the external auditors for audit
                            services;
	 	 	 
	 	(iii)	to review and pre-approve all services, including non-audit services, to
                             be provided by the Corporation’s external auditors to the Corporation or to its subsidiaries, and
                             associated fees and to ensure that such services will not have an impact on the auditor’s independence,
                             in accordance with procedures established by the Audit and Risk Committee. The Audit and Risk Committee
                             may delegate such authority to one or more of its members, which member(s) shall report thereon to the Audit
                             and Risk Committee;
	 	 	 
	 	(iv)	to ensure that the external auditors prepare and deliver annually a Statement
                            as to Independence (it being understood that the external auditors are responsible for the accuracy and completeness
                            of such statement), to discuss with the external auditors any relationships or services disclosed in the
                            Statement as to Independence that may impact the objectivity and independence of the Corporation’s
                            external auditors and to recommend that the Board of Directors take appropriate action in response to the
                            Statement as to Independence to satisfy itself of the external auditors’ independence; and
	 	 	 
	 	(v)	to instruct the external auditors that the external auditors are ultimately
                           accountable to the Audit and Risk Committee and the Board of Directors, as representatives of the shareholders;

 

2.            
with respect to financial reporting principles and policies and internal controls,

 

	 	(i)	to advise management that they are
                                            expected to provide to the Audit and Risk Committee a timely analysis of significant financial
                                            reporting issues and practices;
	 	 	 
	 	(ii)	to ensure that the external auditors prepare and deliver as applicable a
                            detailed report covering 1) critical accounting policies and practices to be used; 2) material
                            alternative treatments of financial information within generally accepted accounting principles that have
                            been discussed with management, ramifications of the use of such alternative disclosures and treatments,
                            and the treatment preferred by the external auditors; 3) other material written communications between
                            the external auditors and management such as any management letter or schedule of unadjusted differences;
                            and 4) such other aspects as may be required by the Audit and Risk Committee or legal or regulatory
                            requirements;
	 	 	 
		(iii)	to understand the scope of the annual
                                            audit of the design and operation of the Corporation’s internal control over financial
                                            reporting (based on criteria established in Internal Control – Integrated Framework
                                            (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO))
                                            and the related auditor’s report;
	 	 	 
	 	(iv)	to consider, review and discuss any reports or communications (and management’s
                            responses thereto) submitted to the Audit and Risk Committee by the external auditors, including reports
                            and communications related to:

 

		·	significant
                                            finding, deficiencies and recommendations noted following the annual audit of the design
                                            and operation of internal controls over financial reporting;

 

    67

     

    

 

		·	consideration
                                            of fraud in the audit of the financial statement;

 

		·	detection
                                            of illegal acts;

 

		·	the
                                            external auditors’ responsibilities under generally accepted auditing standards;

 

		·	significant
                                            accounting policies;

 

		·	management
                                            judgements and accounting estimates;

 

		·	adjustments
                                            arising from the audit;

 

		·	the
                                            responsibility of the external auditors for other information in documents containing audited
                                            financial statements;

 

		·	disagreements
                                            with management;

 

		·	consultation
                                            by management with other accountants;

 

		·	major
                                            issues discussed with management prior to retention of the external auditors;

 

		·	difficulties
                                            encountered with management in performing the audit;

 

		·	the
                                            external auditors judgements about the quality of the entity’s accounting principles;
                                            and

 

		·	reviews
                                            of interim financial information conducted by the external auditors.

 

(v)          
to meet with management and external auditors:

 

		·	to
                                            discuss the scope, planning and staffing of the annual audit and to review and approve the
                                            audit plan;

 

		·	to
                                            discuss the audited financial statements, including the accompanying management’s discussion
                                            and analysis;

 

		·	to
                                            discuss the unaudited interim quarterly financial statements, including the accompanying
                                            management’s discussion and analysis;

 

		·	to
                                            discuss the appropriateness and quality of the Corporation’s accounting principles
                                            as applied in its financial reporting;

 

		·	to
                                            discuss any significant matters arising from any audit or report or communication referred
                                            to in item 2 (iii) above, whether raised by management or the external auditors, relating
                                            to the Corporation’s financial statements;

 

		·	to
                                            resolve disagreements between management and the external auditors regarding financial reporting;

 

		·	to
                                            review the form of opinion the external auditors propose to render to the Board of Directors
                                            and shareholders;

 

		·	to
                                            discuss significant changes to the Corporation’s auditing and accounting principles,
                                            policies, controls, procedures and practices proposed or contemplated by the external auditors
                                            or management, and the financial impact thereof;

 

		·	to
                                            review any non-routine correspondence with regulators or governmental agencies and any employee
                                            complaints or published reports that raise material issues regarding the Corporation’s
                                            financial statements or accounting policies; 

 

		·	to
                                            review, evaluate and monitor the Corporation’s risk management program including the
                                            revenue protection program. This function should include:

 

Ø 
risk assessment;

 

Ø 
quantification of exposure;

 

Ø 
risk mitigation measures; and

 

Ø 
risk reporting;

 

    68

     

    

 

		·	to
                                            review the adequacy of the resources of the finance and accounting group, along with its
                                            development and succession plans;

 

		·	to
                                            monitor and review communications received in accordance with the Corporation’s Internal
                                            Whistle Blowing Policy;

 

		·	following
                                            completion of the annual audit and quarterly reviews, review separately with each of management
                                            and the independent auditor any significant changes to planned procedures, any difficulties
                                            encountered during the course of the audit and reviews, including any restrictions on the
                                            scope of the work or access to required information and the cooperation that the independent
                                            auditor received during the course of the audit and review;

 

	 	(vi)	to discuss with the Chief Financial
                                            Officer any matters related to the financial affairs of the Corporation;
	 	 	 
	 	(vii)	to discuss with the Corporation’s management any significant legal
                             matters that may have a material effect on the financial statements, the Corporation’s compliance
                             policies, including material notices to or inquiries received from governmental agencies;
	 	 	 
	 	(viii)	to periodically review with management the need for an internal audit function;
                              and
	 	 	 
	 	(ix)	to review, and discuss with the Corporation’s President and Chief Executive
                            Officer and Vice President, Finance and Chief Financial Officer the procedure with respect to the certification
                            of the Corporation’s financial statements pursuant to National Instrument 52-109 Certification
                            of Disclosure in Issuer’s Annual and Interim Filings and any other applicable law or stock exchange
                            rule.

 

		3.	with respect to reporting and recommendations,

 

	 	(i)	to prepare/review any report or other
                                            financial disclosures to be included in the Corporation’s annual information form and
                                            management information circular;
	 	 	 
	 	(ii)	to review and recommend to the Board of Directors for approval, the interim
                            and audited annual financial statements of the Corporation, management’s discussion and analysis of
                            the financial conditions and results of operations (MD&A) and the press releases related to those financial
                            statements;
	 	 	 
	 	(iii)	to review and recommend to the Board of Directors for approval, the annual
                             report, management’s assessment on internal controls and any other like annual disclosure filings
                             to be made by the Corporation under the requirements of securities laws or stock exchange rules applicable
                             to the Corporation;
	 	 	 
		(iv)	to review and reassess the adequacy of
                                            the procedures in place for the review of the Corporation’s public disclosure of financial
                                            information extracted or derived from the Corporation’s financial statements, other
                                            than the public disclosure referred to in paragraph 3(ii) above;
	 	 	 
		(v)	to prepare Audit and Risk Committee report(s)
                                            as required by applicable regulators;
	 	 	 
	 	(vi)	to review this Charter at least annually and recommend any changes to the
                            Board of Directors; and
	 	 	 
	 	(vii)	to report its activities to the Board of Directors on a regular basis and
                             to make such recommendations with respect to the above and other matters as the Audit and Risk Committee
                             may deem necessary or appropriate.

 

		4.	to review, discuss with management, and
                                            approve all related party transactions;

 

		5.	to create an agenda for the ensuing year;

 

		6.	to review quarterly expenses of the President
                                            and Chief Executive Officer;

 

    69

     

    

 

		7.	to establish and reassess the adequacy
                                            of the procedures for the receipt, retention and treatment of any complaint received by the
                                            Corporation regarding accounting, internal accounting controls or auditing matters, including
                                            procedures for the confidential anonymous submissions by employees of concerns regarding
                                            questionable accounting or auditing matters in accordance with applicable laws and regulations;
                                            and

 

		8.	to
                                            set clear hiring policies regarding partners, employees and former partners and employees
                                            of the present and, as the case may be, former external auditor of the Corporation.

 

		V.	Resources
                                            and Authority of the Audit and Risk Committee

 

The Audit and Risk Committee shall
have the resources and authority appropriate to discharge its responsibilities, as it shall determine, including the authority to engage
external auditors for special audits, reviews and other procedures and to retain special counsel and other experts or consultants. The
Audit and Risk Committee shall have the sole authority (subject to the Board of Directors’ approval) to determine the terms of
engagement and the extent of funding necessary (and to be provided by the Corporation) for payment of (a) compensation to the Corporation’s
external auditors engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services
for the Corporation, (b) any compensation to any advisors retained to advise the Audit and Risk Committee and (c) ordinary administrative
expenses of the Audit and Risk Committee that are necessary or appropriate in carrying out its duties.

 

		VI.	ANNUAL
                                            EVALUATION

 

At least annually, the Audit and Risk
Committee shall, in a manner it determines to be appropriate:

 

	· 	 	perform a review and evaluation
  of the performance of the Audit and Risk Committee and its members, including the compliance with this Charter; and
	 	 	 
	·	 	Review and assess the adequacy of its Charter and recommend to the Board of Directors any improvements
  to this Charter that the Committee determines to be appropriate.

 

    70

     

    

 

SCHEDULE B - TECHNICAL INFORMATION
UNDERLYING THE CANADIAN MALARTIC PROPERTY

 

Most Recent Technical
Report

 

The most recent technical
report filed by Agnico and Yamana in accordance with NI 43-101 is entitled “NI-43-101 Technical Report, Canadian Malartic Mine, Québec,
Canada” with an effective date of December 31, 2020 and a signature date of March 25, 2021 (the “Canadian Malartic Report").
Reference should be made to the full text of the Canadian Malartic Report.

 

Canadian Malartic
GP prepared the Canadian Malartic Report to present and support the results of an updated mineral resource and mineral reserve estimates,
summarize the current open pit mining operation and disclose the results of a PEA for the underground Odyssey project on the Canadian
Malartic property. Canadian Malartic GP is controlled equally by Yamana and Agnico.

 

Following the completion
of an internal technical study (the “Odyssey Study’’), in February 2021 Canadian Malartic GP approved the construction of a new
underground mining complex at the Odyssey project. The Odyssey project is adjacent to the Canadian Malartic mine and hosts three main
underground-mineralized zones, which are East Gouldie, East Malartic and Odyssey (which is sub-divided into the Odyssey North, Odyssey
South and Odyssey Internal zones).

 

In February of 2022,
Agnico and Yamana provided resource and reserve updates for the Malartic Project without providing an updated life of mine plan. Reserves
were depleted for production in the year with an additional downward adjustment of approximately 96,000 ounces due to a slight increase
in cut-off grade, and a localized adjustment in the lower benches of the Canadian Malartic pit. The Odyssey underground project continues
to grow as a result of ongoing exploration drilling, with a total of 25Mt at 2.9 grams per tonne gold for 2.35 million ounces of indicated
resources and 86.8Mt at 2.35 grams per tonne gold for 13.15 million ounces of inferred resources. The majority of the upgraded resource
came from infill drilling at East Gouldie, which now hosts an indicated resource of 12Mt of 3.88 grams per tonne gold for 1.45 million
ounces of gold. This updated resource does not materially affect the results of the 2021 technical report described herein, except to
increase the confidence level of a portion of the mineral inventory through conversion from inferred resources to indicated resources.

 

Information Contained
in this Section

 

The technical information,
tables and figures that follow have been derived from the Canadian Malartic Report and various news releases publicly filed by Agnico
and/or Yamana which may all be consulted under Agnico’s and/or Yamana’s issuer profiles on SEDAR at www.sedar.com and none of
which is nor shall be deemed to be incorporated by reference in this Annual Information Form.

 

The technical information
contained in this section has been reviewed and approved by Mr. Guy Desharnais, Ph.D., P.Geo, who is a “qualified person” for the purpose
of NI 43-101. Portions of the following information are based on assumptions, qualifications and procedures which are not fully described
herein.

 

Except where otherwise
stated, the disclosure in this section relating to operations is based on information publicly disclosed by Agnico and/or Yamana and
information/data available in the public domain as at March 17, 2022 (except where stated otherwise), and none of this information has
been independently verified by Osisko. Osisko considers that Agnico and Yamana have publicly disclosed all scientific and technical information
that is material to Osisko.

 

As a holder of royalties,
streams or other interests, Osisko has limited access to properties included in its asset portfolio. Additionally, Osisko may from time
to time receive operating information which it is not permitted to disclose to the public. Osisko is dependent on the operators of the
properties and their qualified persons to provide information to Osisko or on publicly available information to prepare required disclosure
pertaining to properties and operations on the properties on which Osisko holds interests and generally has limited or no ability to
independently verify such information. Although Osisko does not have any knowledge that such information may not be accurate, there can
be no assurance that such third party information is complete or accurate. Some information publicly reported by operators may relate
to a larger property than the area covered by Osisko’s interest. Osisko’s interests often cover less than 100%, and sometimes only a
portion of, the publicly reported mineral reserves, mineral resources and production of the property. Osisko shall not be held liable
for any eventual misrepresentations in any scientific or technical information excerpted from any technical information publicly filed
by Agnico and/or Yamana.

 

    71

     

    

 

Project Description,
Location and Access

 

The Canadian Malartic
mine is located within the town of Malartic, Quebec, approximately 25 kilometres west of the City of Val-d’Or and 80 kilometres east
of City of Rouyn-Noranda. It straddles the townships of Fournière, Malartic and Surimau. At December 31, 2021, the Canadian Malartic
mine was estimated to have proven and probable mineral reserves from open pits containing approximately 3.54 million ounces of gold comprised
of 100.5Mt of ore grading 1.09 grams per tonne.

 

The Canadian Malartic mine operates under mining leases obtained from
the Ministry of Energy and Natural Resources (Quebec) and under certificates of approval granted by the Ministry of Environment and the
Fight Against Climate Change (Quebec). The Canadian Malartic property is comprised of the East Amphi property, the CHL Malartic prospect,
the Canadian Malartic mine, and the Fournière, Midway, Piche Harvey and Rand properties. The Odyssey project is located east of
the Canadian Malartic mine and extends into the CHL Malartic prospect. The Canadian Malartic property consists of a contiguous block comprising
one mining concession, five mining leases and 293 mining claims. Expiration dates for the mining leases on the Canadian Malartic property
vary between November 24, 2029 and July 27, 2037, and each lease is automatically renewable for three further ten year terms upon payment
of a small fee.

 

The Canadian Malartic
mine can be accessed from either Val-d’Or or Rouyn-Noranda via Quebec provincial highway No. 117. A paved road running north-south from
the town of Malartic towards Mourier Lake cuts through the central area of the Canadian Malartic property. The Canadian Malartic property
is further accessible via a series of logging roads and trails. The Canadian Malartic mine is serviced by a rail-line which passes through
the town of Malartic and the nearest airport is in Val-d’Or.

 

Following the joint
acquisition of Osisko Mining Corporation (now Canadian Malartic Corporation) by Agnico and Yamana, most of the mining claims that make
up the Canadian Malartic mine are subject to a 5% net smelter return royalty payable to Osisko. The mining claims comprising the CHL
Malartic prospect are subject to 3% net smelter return royalties payable to each of Osisko and Gold Royalty Corp. In addition, 172 of
the mining claims at the Canadian Malartic property are also subject to other net smelter return royalties that vary between 1% and 2%,
payable under varying circumstances.

 

History

 

Gold was first discovered
in the Malartic area in 1923. Gold production on the Canadian Malartic property began in 1935 and continued uninterrupted until 1965.
Following various ownership changes over the ensuing years, Osisko Mining Corporation acquired ownership of the Canadian Malartic property
in 2004. Based on a feasibility study completed in December 2008, Osisko Mining Corporation completed construction of a 55,000 tonne
per day mill complex, tailings impoundment area, five million cubic metre polishing pond and road network by February 2011, and the mill
was commissioned in March 2011. The Canadian Malartic mine achieved commercial production on May 19, 2011.

 

    72

     

    

 

Mining and Milling
Facilities

 

Surface Plan, and
Cross Sections Highlights of the Canadian Malartic Mine (as at November 2, 2021)

 

 

 

 

Source: Agnico’s
Exploration Update, November 2, 2021: 

https://s21.q4cdn.com/374334112/files/doc_presentations/2021/Exploration-Update_Final-11-02-2021.pdf

 

    73

     

    

The Canadian Malartic
mine is a large open pit operation comprised of the Canadian Malartic and Barnat pits. In 2020, commercial production was achieved at
the Barnat pit, which will become the primary source of ore until 2027, and will continue production until 2029. In addition to the open
pit at Canadian Malartic, the asset hosts the recently discovered “Odyssey underground” project which is contained within three main
underground-mineralized zones: East Gouldie, East Malartic and Odyssey, the latter of which is sub-divided into the Odyssey North, Odyssey
South and Odyssey Internal zones.

 

Agnico Eagle also announced production
guidance at the Malartic mine at 640,000 ounces (“oz”) in 2022, 660,000 oz in 2023 and 680,000 oz in 2024. The Partnership recently reviewed
the potential to increase capacity in a portion of the tailings facility. However, the Partnership determined that the best option was
to optimize the processing plan to improve the production profile during the transition to the Odyssey underground project. This has
resulted in an adjustment of the mill rate to 51,500 tonnes per day in 2022. The mill throughput is forecast to return to full capacity
of approximately 60,000 tonnes per day in the second half of 2024 as the underground mining operations ramp up.

 

Mining Methods

 

Mining at the Canadian
Malartic mine is by open pit method with excavators and trucks, using large scale equipment. The primary loading tools are hydraulic
excavators, with wheel loaders used as a secondary loading tool. The current mine production schedule was developed to feed the mill
at a nominal rate of 57,000 tonnes per day. The continuity and consistency of the mineralization, coupled with tight definition drilling,
that has been confirmed by many years of mining operations, demonstrate the amenability of the mineral reserves and mineral resources
to the selected mining method.

 

Mining at the Odyssey
project will be done by underground methods. The conceptual mine design at the Odyssey project includes a 1,800 metre deep production-services
shaft with an expected capacity of approximately 20,000 tonnes per day. The preliminary mining concept is based on a sublevel open stoping
mining method with paste backfill. Longitudinal retreat and transverse primary-secondary mining methods will also be used dependent on
mineralization geometry and stope design criteria. The project is expected to use a combination of conventional and automated equipment,
similar to what is currently used at the LaRonde Complex.

 

Underground development in 2021 was
in line with expectations with 1,487 linear meters of ramp completed and 2,081 equivalent meters of lateral development achieved. An
exploration drift has been installed on Level 16 and ramp access is now down to level 26, which is approximately half the depth extent
of the Odyssey South deposit. Development is expected to ramp up from the current level of 425 meters per month to approximately 860
meters per month in the second half of 2022. To facilitate the increased development rate, the Partnership will be adding its own development
crews and additional underground equipment (both diesel and electric) in the second quarter of 2022.

 

Surface Facilities

 

Surface facilities
at the Canadian Malartic mine include the administration/warehouse building, the mine office/truck shop building, the processing plant
and the crushing plant. The processing plant has a nominal capacity of 57,000 tonnes of ore per day, however 60,000 tonnes per day or
more was achieved over multiple quarters.

 

Ore is processed through
conventional cyanidation. Ore blasted from the pit is first crushed by a gyratory crusher followed by secondary crushing prior to grinding.
Ground ore feeds successively into leach and CIP circuits. A Zadra elution circuit is used to extract the gold from the loaded carbon.
Pregnant solution is processed using electrowinning and the resulting precipitate is smelted into gold/silver dore bars. Mill tails are
thickened and detoxified using a Caro acid process, reducing cyanide levels below 20 parts per million. Detoxified slurry is subsequently
pumped to a conventional tailings facility.

 

The Odyssey project
will use the existing surface infrastructure at the Canadian Malartic site, including the tailing storage facilities, the processing
plant and the maintenance facilities.

    74

     

    

 

The concrete headframe slipform pour
started on September 29, 2021 and was completed in October 2021. The structural steel installation started in the fourth quarter of 2021.
The headframe construction and sinking infrastructure procurement was on schedule and on budget at the end of 2021. The shaft sinking
is expected to start in the fourth quarter of 2022. Surface construction activities for the Odyssey underground project is progressing
well, with the maintenance garage and warehouse erected and fully enclosed at the end of 2021. The garage is expected to be fully functional
by April 2022. Work on the foundations for the first phase of the paste plant started in February and the plant is expected to be fully
functional in the first quarter of 2023.

 

Production and
Mineral Recoveries

 

During 2021, the Canadian
Malartic mine’s payable production was 714,784 ounces of gold from 22.26Mt of ore grading 1.11 grams of gold per tonne. The total cash
costs per ounce of gold produced at Canadian Malartic in 2021 was $791 on a by-product basis and $663 on a co-product basis. The Canadian
Malartic processing facility averaged 60,986 tonnes per day. The production costs per tonne at Canadian Malartic and the minesite costs
was $28 in 2021.

 

Annual production
at the Canadian Malartic mine in 2022 is expected to consist of approximately 640,000 ounces of gold from 18.97Mt of ore grading 1.17
grams of gold per tonne. The total production costs in 2022 is expected to be $34.09 per tonne, with estimated gold recovery of 89.7%.

 

Environmental,
Permitting and Social Matters

 

In 2015, Canadian
Malartic GP developed and implemented an action plan to mitigate noise, vibrations, atmospheric emissions and ancillary issues related
to the Canadian Malartic mine. Mitigation measures were put in place to improve the process and avoid environmental non-compliance events.
As a result, over time, Canadian Malartic GP has improved its environmental performance. With respect to activities in 2020, Canadian
Malartic GP received two non-compliance notices for NOx emissions. The mine’s team of on-site environmental experts continues to monitor
regulatory compliance in terms of approvals, permits and observance of directives and requirements and continues to implement improvement
measures.

 

Since the spring of
2015, Canadian Malartic GP has been working collaboratively with the community of Malartic and its citizens, including the development
of a ’‘Good Neighbour Guide’’. Implementation of the Good Neighbour Guide, which includes compensation and home-acquisition programs,
began on September 1, 2016. Over 90% of the residents of Malartic have agreed to participate in the compensation program. Compensation
offered to eligible residents of Malartic in 2020 will be paid in the first quarter of 2021. Under the home-acquisition program, 57 residences
have been acquired to date in the southern sector of Malartic, of which 45 have subsequently been sold under Canadian Malartic GP’s resale
program that was implemented in April 2018.

 

As part of ongoing
stakeholder engagement, an agreement with four First Nations groups was entered into in 2020. As with the Good Neighbour Guide and other
community relations efforts at Canadian Malartic, Canadian Malartic GP is working collaboratively with stakeholders to establish cooperative
relationships that support the long-term potential of the mine.

 

The waste rock pile
was originally designed to accommodate approximately 326Mt of waste rock requiring a total storage capacity of approximately 161 million
cubic metres. The design of the waste rock pile has been modified to accommodate the Canadian Malartic pit extension and now includes
storage capacity for approximately 740Mt.

    75

     

    

 

The expansion of the
open pit, with production from the Canadian Malartic pit extension, is expected to increase the total amount of tailings to approximately
300Mt over the life of mine. The total capacity of the current tailings management facility is estimated to be 230Mt, including a tailings
cell authorized by the Ministry of Environment and the Fight Against Climate Change (Quebec) in September 2017. Construction of this
cell started in 2017 and operations began in 2018. Canadian Malartic GP also plans to store additional tailings in the Canadian Malartic
pit at the end of its operations. According to the mine plan, between 70 and 80Mt of tailings could be deposited in the Canadian Malartic
pit once mining in the pit is completed.

 

All permits related
to mining the Canadian Malartic pit extension have been received. As part of the permitting process for in-pit tailings deposition, Canadian
Malartic GP has committed to completing a hydrogeological study to demonstrate that the Canadian Malartic pit would provide a hydraulic
trap and contain the tailings with minimal environmental risk. Golder Associates Ltd. is preparing this study.

 

Permits for Odyssey
North and South were granted in 2020 to allow the first phase of the Odyssey project to begin. At this time, the Certificate of Authorization
(’’CofA’’) for the shaft has not yet been obtained and the CofA for the waste rock management facility requires modification.
A request for a decree amendment, including permits to develop the East Gouldie and East Malartic zones has been submitted. Canadian
Malartic GP has received confirmation that mining the additional zones at the project does not trigger additional Federal permitting
requirements.

 

An annual hydrological
site balance is maintained to provide a yearly estimate of water volumes that must be managed in the different structures of the water
management system of the Canadian Malartic mine during an average climatic year (in terms of precipitation). Results of this hydrological
balance indicate that excess water from the southeast pond may have to be released into the environment. If excess water does need to
be treated, a water treatment plant is in place to treat the water that will be released into the environment so that it meets water
quality requirements. In addition to ensuring effluent compliance, this water treatment plant reduces the risks associated with surface
water management and adds flexibility to the water usage system.

 

Reclamation and closure
costs have been estimated for rehabilitating the tailings facility and waste dump, revegetating the surrounding area, dismantling the
plant and associated infrastructure and performing environmental inspection and monitoring for a period of ten years. In accordance with
applicable regulations, financial guarantees have been provided for these estimated reclamation and closure costs. Reclamation plans
were updated in 2020, and an updated closure plan was submitted in accordance with regulatory requirements.

 

Geology, Mineralization,
Exploration and Drilling Geology

 

The Canadian Malartic
property straddles the southern margin of the eastern portion of the Abitibi Subprovince, an Archean greenstone belt situated in the
southeastern part of the Superior Province of the Canadian Shield. The Abitibi Subprovince is limited to the north by gneisses and plutons
of the Opatica Subprovince, and to the south by metasediments and intrusive rocks of the Pontiac Subprovince. The contact between the
Pontiac Subprovince and the rocks of the Abitibi greenstone belt is characterized by a major fault corridor, the east-west trending Larder
Lake-Cadillac Fault Zone. This structure runs from Larder Lake, Ontario through Rouyn-Noranda, Cadillac, Malartic, Val-d’Or and Louvicourt,
Québec, at which point it is truncated by the Grenville Front.

 

The regional stratigraphy
of the southeastern Abitibi area is divided into groups of alternating volcanic and sedimentary rocks, generally oriented at N280-N330
and separated by fault zones. The main lithostratigraphic divisions in this region are, from south to north, the Pontiac Group of the
Pontiac Subprovince and the Piché, Cadillac, Blake River, Kewagama and Malartic groups of the Abitibi Subprovince. The various lithological
groups within the Abitibi Subprovince are metamorphosed to greenschist facies. Metamorphic grade increases toward the southern limit
of the Abitibi belt, where rocks of the Piché Group and the northern part of the Pontiac Group have been metamorphosed to upper greenschist
facies.

 

    76

     

    

 

The majority of the
Canadian Malartic property is underlain by metasedimentary units of the Pontiac Group, lying immediately south of the LLCFZ. The north-central
portion of the property covers an approximately 9.5 kilometre section of the LLCFZ corridor and is underlain by mafic-ultramafic metavolcanic
rocks of the Piché Group cut by intermediate porphyritic and mafic intrusions. The Cadillac Group covers the northern part of the property
(north of the LLCFZ). It consists of greywacke containing lenses of conglomerate.

 

Mineralization

 

Mineralization in
the Canadian Malartic deposit occurs as a continuous shell of 1% to 5% disseminated pyrite associated with fine native gold and traces
of chalcopyrite, sphalerite and tellurides. It extends on a 2 kilometre strike and a width of 1 kilometre (perpendicular to the strike),
and from surface to 400 metres below surface. The gold resource is mostly hosted by altered clastic sedimentary rocks of the Pontiac
Group (70%) overlying an epizonal dioritic porphyry intrusion.

 

Surface drilling by
Lac Minerals Ltd. in the 1980s defined several near-surface mineralized zones now included in the Canadian Malartic deposit (the F, P,
A, Wolfe and Gilbert zones), all expressions of a larger, continuous mineralized system located at depth around the historical underground
workings of the Canadian Malartic and Sladen mines. In addition to these, the Western Porphyry Zone occurs one kilometre northeast of
the main Canadian Malartic deposit and the Gouldie mineralized zone occurs approximately 1.2 kilometres southeast of the main Canadian
Malartic deposit. Approximately 1.5 kilometres to the east is the Odyssey deposit, with mineralization associated with a fault along
both hanging wall and footwall contacts of a 300 metre wide dioritic intrusive.

 

The South Barnat deposit
is located to the north and south of the old South Barnat and East Malartic mine workings, largely along the southern edge of the LLCFZ.
The deposit that is originally modelled for surface mining evaluation extends on a 1.7 kilometre strike and a width of 900 metres (perpendicular
to the strike), and from surface to 480 metres below surface. The disseminated/stockwork gold mineralization at South Barnat is hosted
both in potassic altered, silicified greywackes of the Pontiac Group (south of the fault contact) and in potassic altered porphyry dykes
and schistose, carbonatized and biotitic ultramafic volcanic rocks (north of the fault contact).

 

The East Malartic
deposit (as modelled for the underground mining model) has been previously mined by the East Malartic, Barnat and Sladen mines along
the contact between the LLCFZ and the Pontiac Group sedimentary rocks. This deposit includes the deeper portion of the South Barnat deposit
(below actual pit design). This deposit extends on a 3 kilometre strike and a width of 1.1 kilometres (perpendicular to the strike),
and the bottom of the South Barnat actual pit design to 1,800 metres below surface. The geological settings are similar to those found
in other areas of the property, corresponding mainly to the depth extension of the geological context presented above for the South Barnat
open pit deposit.

 

The Odyssey deposit
is also located at the contact between the LLCFZ and the Pontiac Group sedimentary rocks in the eastern extension of the East Malartic
deposit. It extends on a 2 kilometre strike and a width of 500 metres (perpendicular to the strike), and from surface to -1,500 metres
below surface. It is characterized by the presence of a massive porphyritic unit. While the whole porphyritic intrusion is anomalous
in gold, continuous zones of higher-grade (>1 g/t gold) gold mineralization occur along the south-dipping sheared margins of the intrusion
(in contact with the Pontiac Group to the south and the Piché Group to the north). Within the porphyritic unit, gold mineralization is
also associated with other geological features, including silica and potassic alteration zones, discrete shear zones, swarms of quartz
veins, stockworks and zones with disseminated pyrite (0.7 to 2.0%).

 

The East Gouldie deposit
is located south of the Odyssey deposit and has a strike length of at least 1.2 kilometres and extends from approximately 780 metres
below surface to more than 1.9 kilometres depth. It is generally constrained in a west-trending high-strain corridor (40 to 100 metres
true width) that dips approximately 60 degrees north. The high strain corridor is defined by a strongly developed foliation that affects
Pontiac Group greywacke as well as crosscutting east-southeast-trending intermediate porphyritic dykes and mafic dykes. Evidence for
folds in bedding occur in historical surface geology maps and in drill core, but the deposit is tabular and relatively straight. The
mineralization is hosted in highly strained intervals of greywacke with 1% to 2% disseminated pyrite and strong silica alteration, and
moderate sericite and carbonate alteration. Intermediate porphyritic dykes locally occur in the mineralized zones and are gold-bearing
where affected by the high strain and alteration. Minor irregular cm- to dm-scale quartz veins occur, some with visible gold, but the
bulk of the gold mineralization is interpreted to be associated with the disseminated style of mineralization.

 

    77

     

    

Several other mineralized
zones have been documented within the LLCFZ, namely Buckshot, East Amphi, Western Porphyry and Fourax, all of which are generally spatially
associated with stockworks and disseminations within or in the vicinity of dioritic or felsic porphyritic intrusions.

 

Exploration and
Drilling

 

At the Canadian Malartic
mine, the Partnership expects to spend approximately $23.8 million for 136,800 metres of exploration and conversion drilling. With ramp
development under way as part of the Odyssey Mine project, the Partnership will be able to continue underground conversion drilling from
the ramp in 2022. In addition, the Partnership is planning to spend approximately $8.2 million on 21,900 metres of exploration drilling
to expand mineralization towards the east in the East Gouldie horizon and the new Titan zone at depth on the Rand property (not covered
by Osisko Royalty).

 

Mineral resources
from the Odyssey internal zones are not currently included in the mine plan due to the increased geological complexity of these zones.
Additional infill drilling of these zones from underground is planned to increase geological understanding, which could present opportunities
for additional production during the underground ramp-up period. In addition, mineral resources from the East Malartic deposit at depth
could represent another opportunity for future inclusion in the mine plan, which could extend the life of the underground project. Infill
drilling and additional engineering is required to evaluate the economic potential of these mineral resources. Fifteen drills were operating
at Malartic in early 2022 with a focus on aggressive infill drilling at the East Gouldie deposit to improve confidence in the mineral
resource, to continue the conversion of inferred mineral resources to indicated mineral resources and to refine the geological model.
Some drilling is also planned on the nearby East Amphi property to extend the Nessie and Kraken zones.

 

Mineral Reserves
and Mineral Resources

 

In February of 2022,
Agnico and Yamana provided resource and reserve updates for the Malartic Project without providing an updated life of mine plan. Reserves
were depleted for production in the year with an additional downward adjustment of approximately 96,000 ounces due to a slight increase
in cut-off grade, and a localized adjustment in the lower benches of the Canadian Malartic pit. At December 31, 2021, the Canadian Malartic
mine was estimated to have proven and probable mineral reserves from open pits containing approximately 3.54 million ounces of gold comprised
of 100.5Mt of ore grading 1.09 grams per tonne. The Odyssey underground project continues to grow as a result of ongoing exploration
drilling, with a total of 25Mt at 2.9 grams per tonne gold for 2.35 million ounces of indicated resources and 86.8Mt at 2.35 grams per
tonne gold for 13.15 million ounces of inferred resources. The majority of the upgraded resource came from infill drilling at East Gouldie,
which now hosts an indicated resource of 12Mt of 3.88 grams per tonne gold for 1.45 million ounces of gold. This updated resource does
not materially affect the results of the 2021 technical report described herein, except to increase the confidence level of a portion
of the mineral inventory through conversion from inferred resources to indicated resources.

 

Odyssey Underground
Mine Project Construction

 

On February 11, 2021,
Agnico and Yamana announced that following the completion of an internal technical study in late 2020, Canadian Malartic GP has approved
construction of a new underground mining complex at the Odyssey project.

 

    78

     

    

In addition to the
open pit at Canadian Malartic, the asset hosts the recently discovered “Odyssey underground” project which is contained within three
main underground-mineralized zones: East Gouldie, East Malartic and Odyssey, the latter of which is sub-divided into the Odyssey North,
Odyssey South and Odyssey Internal zones.

 

Osisko holds a 5%
NSR royalty on East Gouldie, Odyssey South and the western half of East Malartic and a 3% NSR royalty on Odyssey North and the eastern
half of East Malartic, which are located adjacent to the Canadian Malartic mine.

 

The basis for the
mine plan is a potentially mineable resource of 7.29 million ounces (6.18Mt of 2.07 g/t Au indicated resources and 75.9Mt of 2.82 g/t
Au inferred resources). The East Gouldie deposit makes up most of this mineral inventory, whose total inferred resources contains 6.42
million ounces (62.9Mt of 3.17 g/t Au). Combined with the East Malartic and Odyssey deposits the total underground inferred resources
contains 13.8 million ounces (177.5Mt of 2.42 g/t Au), as well as indicated resources of 0.86 million ounces (13.3Mt of 2.01 g/t Au).
Note that a portion of the inferred resources at East Gouldie, have now been upgraded to indicated resource of 12Mt of 3.88 grams per
tonne gold for 1.45 million ounces of gold. This updated resource does not materially affect the results of the 2021 technical report
described herein, except to increase the confidence level of a portion of the mineral inventory through conversion from inferred resources
to indicated resources.

 

For the purpose of
the technical study, mineable stope shapes were generated using a gold price of US$1,250 per ounce, consistent with the price used for
estimating Canadian Malartic open pit mineral reserves. The shallow mineralized zones located above 600 metres below surface will be
mined using a ramp from surface. The deeper mineralized zones below 600 metres from surface will be mined with a production shaft.

 

Production via the
ramp is expected to begin at Odyssey South in late 2023, increasing up to 3,500 tonnes per day in 2024. Collaring of the shaft and installation
of the headframe was completed in 2021, with shaft sinking activities expected to begin in late 2022. The shaft will have an estimated
depth of 1,800 metres, an expected capacity of approximately 20,000 tonnes per day, and the first loading station is expected to be commissioned
in 2027 with modest production from East Gouldie. The East Malartic shallow area and Odyssey North are scheduled to enter into production
in 2029 and 2030 respectively.

 

Average annual payable
production is approximately 545,400 ounces of gold from 2029 to 2039, with total cash costs per ounce of approximately US$630. Sustaining
capital expenditures are expected to gradually decline from 2029 to 2039, with an expected average of approximately US$56 million per
year. Using a gold price of US$1,550 per ounce and a C$/US$ foreign exchange rate assumption of 1.30, the Odyssey project has an after-tax
internal rate of return of 17.5% and an after-tax net present value (at a 5% discount rate) of US$1.143 billion. The project has excellent
exploration potential and is currently expected to have a mine life of 17 years, including 10 years of payable gold production averaging
545,400 ounces per year (all numbers on a 100% basis) (See Chart 1 below).

 

The forecast parameters
surrounding the proposed operations at the Odyssey project were based on the CM Report, which is preliminary in nature and includes inferred
mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be
categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized.

 

At Odyssey, the East
Gouldie deposit has the highest tonnage and grade and contains more than 70% of the total ounces produced. The focus of the ongoing diamond
drilling campaign from surface is to further define high quality mineral resources by the beginning of 2023 with a drill hole spacing
of 75 metres. Improving the geological confidence of the mineral resources is expected to further de-risk the future production. With
additional exploration, it is believed that additional mineralization will come into the mine plan in the coming years.

 

    79

     

    

 

Chart 1 - Production
profile for the Canadian Malartic mine 

 

 

 

Source: Agnico
and Yamana news releases, February 11, 2021.

 

Capital Expenditures

 

Canadian Malartic
mine investments during 2021 included sustaining capital of $145.5 million, and development capital of $113.2 million. Budgeted 2022
sustaining capital expenditures at the Canadian Malartic mine are $153.8 million, and development capital of $207.4 million.

 

Capital expenditures
on the Odyssey Project from 2021 to 2028 are expected to total approximately $1.34 billion (on a 100% basis), which includes $1,144 million
in initial capital expenditures and $191 million in additional development capital expenditures. The gradual transition from open pit
to underground mining allows for capital expenditures to be spread over eight years. In addition, proceeds from the early production,
which is expected to begin in 2023, will significantly reduce the external cash requirements for the construction of the project

 

    80

     

    

 

	Odyssey Project
    Summary	 
	 	 
	(All numbers are approximate and on a
    100% basis)	 
	Estimated Total Production	6.93 million gold ounces
	 	2.32 million
    silver ounces
	Average metallurgical recovery 	~95.2%
gold
	 	~80.0%
silver
	 	 
	Average Annual gold production	 
	2023 	46,600 oz (825
    k. tonnes, 1.84g/t gold and 1.10g/t silver)
	2024 to 2026 (average per year) 	81,500 oz (1,344
    k. tonnes, 1.98g/t gold and 1.10g/t silver)
	2027	256,200 oz
    (2,810 k. tonnes, 2.98g/t gold and 1.10g/t silver)
	2028	384,600 oz
    (3,333 k. tonnes, 3.79g/t gold and 1.10g/t silver)
	2029 to 2039 (average per year)	545,400
    oz (6,463 k. tonnes, 2.76g/t gold and 1.10g/t silver)
	 	 
	Minesite costs per tonne	 
	2023	$93 C$/t
	2024 to 2026 (average per year)	$77 C$/t
	2027	$79 C$/t
	2028	$79 C$/t
	2029 to 2039 (average per year)	$61 C$/t
	Average total cash costs on a by-product
    basis (including royalties)	 
	2023 to 2028	800 /oz
	2029 to 2039	630 /oz
	 	5.5%
	Royalty	NSR
	Mine life 	17 years
	 	 
	Capital Expenditures	 
	Initial capital expenditures	$1,144 million (2021 to 2028)
	Other growth capital expenditures	$191 million (2021 to 2028)
	Gold production 2021 to 2028 	932 thousand ounces
	Sustaining capital expenditures	$56
    million per year (2029 – 2039)
	Breakdown of Capital Expenditures by
    year (2021 –  2028) 	 
	2021	$114 million
	2022	$204 million
	2023 (average per year)	$137 million
	2024 to 2026	$164 million
	2027	$209 million
	2028	$180 million
	Breakdown of Initial Capital Expenditures
    by category Shaft & Surface	$478 million
	Mining Equipment	$163 million
	U/G Development & Construction	$503 million
	Net Present Value 	$1,142 million (after tax)
	Internal Rate of Return 	17.5%
	Payback Period	10 years
	 	 
	Economic Assumptions:	 
	Gold Price	$1,550
	Silver Price 	$22.00
	USD:CAD	1.30
	Effective tax rate 	38%
	Discount rate	5%

 

    81Exhibit 4.2

 

 

 

OSISKO GOLD ROYALTIES LTD

 

                                     

Consolidated
Financial Statements

 

For the years

ended

December 31, 2021 and 2020 

 

 

     

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Financial Statements

 

Management's Report on Internal Control
over Financial Reporting

 

Osisko Gold Royalties Ltd's (the "Company's")
management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in rules 13a-15(f)
and 15d-15(f) under the Securities Exchange Act of 1934 (United States), as amended.

 

The Company's management assessed the effectiveness
of the Company's internal control over financial reporting as at December 31, 2021. The Company's management conducted an evaluation
of the Company's internal control over financial reporting based on criteria established in Internal Control - Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the Company's management's assessment,
the Company's internal control over financial reporting is effective as at December 31, 2021.

 

The effectiveness of the Company's internal control
over financial reporting as at December 31, 2021 has been audited by PricewaterhouseCoopers LLP, Independent Registered Public Accounting
Firm, as stated in their report which is located on the next pages.

 

	(signed) Sandeep Singh, Chief Executive Officer	(signed) Frédéric Ruel, Chief Financial
    Officer

 

February 24, 2022

 

     2

     

    

 

Report of Independent Registered Public Accounting
Firm

 

To the Board of Directors and Shareholders of
Osisko Gold Royalties Ltd

 

Opinions on the Financial Statements and Internal
Control over Financial Reporting

 

We have audited the accompanying consolidated
balance sheets of Osisko Gold Royalties Ltd and its subsidiaries (together, the Company) as of December 31, 2021 and 2020, and the related
consolidated statements of income (loss), comprehensive income (loss), changes in equity and cash flows for the years then ended, including
the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company's internal control
over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

In our opinion, the consolidated financial statements
referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and
its financial performance and its cash flows for the years then ended in conformity with International Financial Reporting Standards
as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated
Framework (2013) issued by the COSO.

 

Basis for Opinions

 

The Company's management is responsible for these
consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the
effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over
Financial Reporting. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's
internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control
over financial reporting was maintained in all material respects.

 

     3

     

    

 

Our audits of the consolidated financial statements
included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audits provide a reasonable basis for our opinions.

 

Definition and Limitations of Internal Control
over Financial Reporting

 

A company's internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of
the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company's assets that could have a material effect on the financial statements.

 

Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

 

Critical Audit Matters 

 

The critical audit matter communicated below
is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated
to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and
(ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit
matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

 

     4

     

    

 

Assessment of impairment indicators of royalty,
stream and other interests

 

As described in Notes 3,
5 and 14 to the consolidated financial statements, the Company's royalty, stream and other interests carrying amount was $1,154.8 million
as of December 31, 2021. Management assesses at each reporting date whether there are indicators that the carrying amount may
not be recoverable which give rise to the requirement to conduct a formal impairment test. Impairment is assessed at the cash-generating
unit (CGU) level, which is usually at the individual royalty, stream and other interest level for each property
from which cash inflows are generated. Management uses judgement when assessing whether there are indicators of impairment, including
a significant change in mineral reserve and resources, significant negative industry or economic trends, significantly lower production
than expected, a significant change in current or forecast commodity prices and other relevant operator and financial information. 

 

The principal considerations
for our determination that performing procedures relating to the assessment of impairment indicators of royalty, stream and other interests
is a critical audit matter are (i) the judgement by management when assessing whether there were indicators of impairment which would
require a formal impairment test to be performed; and (ii) a high degree of auditor judgement, subjectivity and effort in performing
procedures to evaluate audit evidence related to management's assessment of impairment indicators related to a significant change in
mineral reserve and resources, significant negative industry or economic trends, significantly lower production than expected, a significant
change in current or forecast commodity prices and other relevant operator and financial information.

 

Addressing the matter
involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial
statements. These procedures included testing the effectiveness of controls relating to management's assessment of impairment indicators
of royalty, stream and other interests. These procedures also included, among others, evaluating the reasonableness of management's assessment
of impairment indicators for a sample of royalty, stream and other interests, related to a significant change in mineral reserve
and resources, significant negative industry or economic trends, significantly lower production than expected, a significant drop in
current or forecast commodity prices and other relevant operator and financial information by considering (i) current and past performance
of royalty, stream and other interests; (ii) consistency with external market and industry data; (iii) publicly disclosed or other relevant
information of operators of royalty, stream and other interests; and (iv) consistency with evidence obtained in other areas of the audit.

 

/s/PricewaterhouseCoopers LLP

 

Montréal, Canada

February 24, 2022

 

We have served as the Company's auditor since
2006.

 

     5

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Balance Sheets

    As at December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars)

 

	 	 	 	 	 	December 31,	 	 	December 31,	 
	 	 	Notes	 	 	2021	 	 	2020	 
	 	 	 		 	 	 	$	 	 	 	$	 
	Assets	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current assets	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash	 	 	8	 	 	 	115,698	 	 	 	302,524	 
	Short-term investments	 	 	9	 	 	 	-	 	 	 	3,501	 
	Amounts receivable	 	 	10	 	 	 	14,691	 	 	 	12,894	 
	Inventories	 	 	11	 	 	 	18,596	 	 	 	10,025	 
	Other assets	 	 	11	 	 	 	3,941	 	 	 	6,244	 
	 	 	 	 	 	 	 	152,926	 	 	 	335,188	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-current assets	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investments in associates	 	 	12	 	 	 	125,354	 	 	 	119,219	 
	Other investments	 	 	13	 	 	 	169,010	 	 	 	157,514	 
	Royalty, stream and other interests	 	 	14	 	 	 	1,154,801	 	 	 	1,116,128	 
	Mining interests and plant and equipment	 	 	15	 	 	 	635,655	 	 	 	489,512	 
	Exploration and evaluation	 	 	16	 	 	 	3,635	 	 	 	42,519	 
	Goodwill	 	 	17	 	 	 	111,204	 	 	 	111,204	 
	Other assets	 	 	11	 	 	 	18,037	 	 	 	25,820	 
	 	 	 	 	 	 	 	2,370,622	 	 	 	2,397,104	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Liabilities	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current liabilities	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable and accrued liabilities	 	 	18	 	 	 	30,049	 	 	 	46,889	 
	Dividends payable	 	 	21	 	 	 	9,157	 	 	 	8,358	 
	Provisions and other liabilities	 	 	19	 	 	 	12,179	 	 	 	4,431	 
	Current portion of long-term debt	 	 	20	 	 	 	294,891	 	 	 	49,867	 
	 	 	 	 	 	 	 	346,276	 	 	 	109,545	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-current liabilities	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Provisions and other liabilities	 	 	19	 	 	 	60,334	 	 	 	41,536	 
	Long-term debt	 	 	20	 	 	 	115,544	 	 	 	350,562	 
	Deferred income taxes	 	 	24	 	 	 	68,407	 	 	 	54,429	 
	 	 	 	 	 	 	 	590,561	 	 	 	556,072	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equity	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Share capital	 	 	21	 	 	 	1,783,689	 	 	 	1,776,629	 
	Warrants	 	 	22	 	 	 	18,072	 	 	 	18,072	 
	Contributed surplus	 	 	 	 	 	 	42,525	 	 	 	41,570	 
	Equity component of convertible debentures	 	 	20	 	 	 	14,510	 	 	 	17,601	 
	Accumulated other comprehensive income	 	 	 	 	 	 	58,851	 	 	 	48,951	 
	Deficit	 	 	 	 	 	 	(283,042	)	 	 	(174,458	)
	Equity attributable
    to Osisko Gold Royalties Ltd's shareholders	 	 	 	 	 	 	1,634,605	 	 	 	1,728,365	 
	Non-controlling interests	 	 	 	 	 	 	145,456	 	 	 	112,667	 
	Total
    equity	 	 	 	 	 	 	1,780,061	 	 	 	1,841,032	 
	 	 	 	 	 	 	 	2,370,622	 	 	 	2,397,104	 

 

APPROVED ON BEHALF OF THE BOARD

 

	(signed) Sean Roosen, Director	(signed) Joanne Ferstman, Director

 

     6

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Statements of Income (Loss)

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

	 	 	Notes	 	 	2021	 	 	2020	 
	 	 	 		 	 	 	$	 	 	 	$	 
	Revenues	 	 	25	 	 	 	224,877	 	 	 	213,630	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of sales	 	 	25	 	 	 	(37,646	)	 	 	(63,700	)
	Depletion of royalty, stream and other
    interests	 	 	14	 	 	 	(48,361	)	 	 	(45,605	)
	Gross profit	 	 	 	 	 	 	138,870	 	 	 	104,325	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other operating expenses	 	 	 	 	 	 	 	 	 	 	 	 
	General and administrative	 	 	25	 	 	 	(41,265	)	 	 	(25,901	)
	Business development	 	 	25	 	 	 	(4,168	)	 	 	(10,290	)
	Exploration and evaluation	 	 	25	 	 	 	(1,197	)	 	 	(131	)
	Mining operating expenses	 	 	25	 	 	 	(12,919	)	 	 	-	 
	Impairments - royalty, stream and other
    interests	 	 	14	 	 	 	(2,288	)	 	 	(26,300	)
	Impairments - mining
    exploration, evaluation and development	 	 	15,16	 	 	 	(122,250	)	 	 	-	 
	Operating (loss) income	 	 	 	 	 	 	(45,217	)	 	 	41,703	 
	Interest income	 	 	 	 	 	 	5,065	 	 	 	4,582	 
	Finance costs	 	 	 	 	 	 	(24,586	)	 	 	(26,131	)
	Foreign exchange (loss) gain	 	 	 	 	 	 	(554	)	 	 	1,023	 
	Share of loss of associates	 	 	12	 	 	 	(3,950	)	 	 	(7,657	)
	Other gains, net	 	 	25	 	 	 	25,522	 	 	 	13,622	 
	(Loss) earnings before income taxes	 	 	 	 	 	 	(43,720	)	 	 	27,142	 
	Income tax expense	 	 	24	 	 	 	(12,955	)	 	 	(10,913	)
	Net (loss) earnings	 	 	 	 	 	 	(56,675	)	 	 	16,229	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net (loss) earnings attributable to:	 	 	 	 	 	 	 	 	 	 	 	 
	Osisko Gold Royalties Ltd's shareholders	 	 	 	 	 	 	(23,554	)	 	 	16,876	 
	Non-controlling interests	 	 	 	 	 	 	(33,121	)	 	 	(647	)
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net (loss) earnings per share	 	 	 	 	 	 	 	 	 	 	 	 
	Basic and diluted	 	 	27	 	 	 	(0.14	)	 	 	0.10	 

 

Additional information per operating segment
is provided in Notes 8 and 31.

 

     7

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Statements of Comprehensive Income (Loss)

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars)

 

	 	 	2021	 	 	2020	 
	Net (loss) earnings	 	 	(56,675	)	 	 	16,229	 
	 	 	 	 	 	 	 	 	 
	Other comprehensive income (loss)	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Items that will not
    be reclassified to the consolidated statement of income (loss)	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Changes in fair value of financial assets
    at fair value through comprehensive income	 	 	7,303	 	 	 	40,993	 
	Income tax effect	 	 	(471	)	 	 	(9,319	)
	 	 	 	 	 	 	 	 	 
	Share of other comprehensive (loss) income
    of associates	 	 	(1,665	)	 	 	1,506	 
	 	 	 	 	 	 	 	 	 
	Items that may be reclassified
    to the consolidated statement of income (loss)	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Currency translation
    adjustments	 	 	(2,990	)	 	 	(4,555	)
	 	 	 	 	 	 	 	 	 
	Other comprehensive income	 	 	2,177	 	 	 	28,625	 
	 	 	 	 	 	 	 	 	 
	Comprehensive (loss) income	 	 	(54,498	)	 	 	44,854	 
	 	 	 	 	 	 	 	 	 
	Comprehensive (loss) income attributable to:	 	 	 	 	 	 	 	 
	Osisko Gold Royalties Ltd's shareholders	 	 	(17,889	)	 	 	45,501	 
	Non-controlling interests	 	 	(36,609	)	 	 	(647	)

 

     8

     

    

 

	Osisko Gold Royalties Ltd

                                                        Consolidated Statements of Cash Flows

                                                        For the years ended December 31, 2021
                                            and 2020

	(tabular amounts expressed in thousands of Canadian dollars)

 

	 	 	Notes	 	 	2021	 	 	2020	 
	 	 		 	 	$	 	 	$	 
	Operating activities	 	 	 	 	 	 	 	 	 	 	 	 
	Net (loss) earnings	 	 	 	 	 	 	(56,675	)	 	 	16,229	 
	Adjustments for:	 	 	 	 	 	 	 	 	 	 	 	 
	Share-based compensation	 	 	 	 	 	 	13,280	 	 	 	9,361	 
	Depletion and amortization	 	 	 	 	 	 	51,934	 	 	 	46,904	 
	Impairment of assets	 	 	 	 	 	 	126,650	 	 	 	34,298	 
	Finance costs	 	 	 	 	 	 	7,721	 	 	 	8,409	 
	Share of loss of associates	 	 	 	 	 	 	3,950	 	 	 	7,657	 
	Net gain on acquisition of investments	 	 	 	 	 	 	(7,638	)	 	 	(3,827	)
	Change in fair value of financial assets at fair value through
    profit and loss	 	 	 	 	 	 	(6,286	)	 	 	(2,387	)
	Net gain on dilution of investments in associates	 	 	 	 	 	 	(1,847	)	 	 	(10,381	)
	Net gain on disposal of investments	 	 	 	 	 	 	-	 	 	 	(5,357	)
	Foreign exchange loss (gain)	 	 	 	 	 	 	675	 	 	 	(652	)
	Flow-through shares premium income	 	 	 	 	 	 	(6,971	)	 	 	-	 
	Deferred income tax expense	 	 	 	 	 	 	11,724	 	 	 	3,760	 
	Other	 	 	 	 	 	 	(5,423	)	 	 	2,230	 
	Net cash flows provided by operating activities
    before changes in non-cash working capital items	 	 	 	 	 	 	131,094	 	 	 	106,244	 
	Changes in non-cash working capital items	 	 	28	 	 	 	(24,999	)	 	 	1,734	 
	Net cash flows provided by operating activities	 	 	 	 	 	 	106,095	 	 	 	107,978	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investing activities	 	 	 	 	 	 	 	 	 	 	 	 
	Net repayment of short-term investments	 	 	 	 	 	 	3,501	 	 	 	412	 
	Acquisition of the San Antonio gold project	 	 	7	 	 	 	-	 	 	 	(52,208	)
	Acquisition of investments	 	 	 	 	 	 	(46,713	)	 	 	(49,194	)
	Proceeds from disposal of investments	 	 	 	 	 	 	50,936	 	 	 	10,864	 
	Acquisition of royalty and stream interests	 	 	 	 	 	 	(90,936	)	 	 	(66,062	)
	Mining assets and plant and equipment	 	 	 	 	 	 	(185,297	)	 	 	(71,828	)
	Exploration and evaluation expenses, net of tax credits	 	 	 	 	 	 	(3,175	)	 	 	(202	)
	Restricted cash	 	 	 	 	 	 	(504	)	 	 	4,762	 
	Other	 	 	 	 	 	 	150	 	 	 	357	 
	Net cash flows used in investing activities	 	 	 	 	 	 	(272,038	)	 	 	(223,099	)
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financing activities	 	 	 	 	 	 	 	 	 	 	 	 
	Private placement of common shares	 	 	21	 	 	 	-	 	 	 	85,000	 
	Investments from minority shareholders	 	 	21	 	 	 	39,760	 	 	 	214,323	 
	Share issue expenses from investments from minority shareholders	 	 	21	 	 	 	(3,044	)	 	 	(5,965	)
	Exercise of share options and shares issued under the share purchase plan	 	 	 	 	 	 	14,547	 	 	 	7,835	 
	Increase in long-term debt	 	 	 	 	 	 	54,015	 	 	 	71,660	 
	Repayment of long-term debt	 	 	 	 	 	 	(50,251	)	 	 	(19,205	)
	Normal course issuer bid purchase of common shares	 	 	21	 	 	 	(30,791	)	 	 	(3,933	)
	Dividends paid	 	 	 	 	 	 	(32,464	)	 	 	(28,914	)
	Capital payments on lease liabilities	 	 	 	 	 	 	(6,582	)	 	 	(1,155	)
	Withholding taxes on settlement of restricted and deferred share units	 	 	 	 	 	 	(3,715	)	 	 	(2,555	)
	Other	 	 	 	 	 	 	(1,076	)	 	 	(230	)
	Net cash flows (used in) provided by financing activities	 	 	 	 	 	 	(19,601	)	 	 	316,861	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	(Decrease) increase in cash before effects of exchange rate changes on cash	 	 	 	 	 	 	(185,544	)	 	 	201,740	 
	Effects of exchange rate changes on cash	 	 	 	 	 	 	(1,282	)	 	 	(7,439	)
	(Decrease) increase in cash	 	 	 	 	 	 	(186,826	)	 	 	194,301	 
	Cash - January 1	 	 	 	 	 	 	302,524	 	 	 	108,223	 
	Cash - December 31	 	 	8	 	 	 	115,698	 	 	 	302,524	 

 

Additional information per operating segment
is provided in Notes 8 and 31.

Additional information related to the consolidated
statements of cash flows is presented in Note 28.

 

     9

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Statement of Changes in Equity

    For the year ended December 31, 2021

	(tabular amounts expressed in thousands of Canadian dollars)

 

	 	 	 	 	 	 	Equity
    attributed to Osisko Gold Royalties Ltd's shareholders	 	 	 	 	 
	 	 	 	 	Number of	 	 	 	 	 	 	 	Equity	 	Accumulated	 	 	 	 	 	 	 	 	 
	 	 	 	 	common	 	 	 	 	 	 	 	component of	 	other	 	 	 	 	 	Non-	 	 	 
	 	 	 	 	shares	 	Share	 	 	 	Contributed	 	convertible	 	comprehensive	 	 	 	 	 	controlling	 	 	 
	 	 	Notes	 	outstanding	 	capital	 	Warrants	 	surplus	 	debentures	 	income(i)	 	Deficit	 	Total	 	interests	 	Total	 
	 	 	 	 	 	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 
	Balance - January
    1, 2021	 	 	 	 	 	166,647,932	 	 	1,776,629	 	 	18,072	 	 	41,570	 	 	17,601	 	 	48,951	 	 	(174,458	)	 	1,728,365	 	 	112,667	 	 	1,841,032	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net loss	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(23,554	)	 	(23,554	)	 	(33,121	)	 	(56,675	)
	Other
    comprehensive income (loss )	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	5,665	 	 	-	 	 	5,665	 	 	(3,488	)	 	2,177	 
	Comprehensive
    income (loss)	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	5,665	 	 	(23,554	)	 	(17,889	)	 	(36,609	)	 	(54,498)	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net investments
    from minority shareholders	 	 	21	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	27,314	 	 	27,314	 
	Effect of changes
    in ownership of a subsidiary on non-controlling interest	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(36,482	)	 	(36,482	)	 	36,482	 	 	-	 
	Dividends declared	 	 	21	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(35,085	)	 	(35,085	)	 	-	 	 	(35,085	)
	Shares issued
    - Dividends reinvestment plan	 	 	21	 	 	120,523	 	 	1,821	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	1,821	 	 	-	 	 	1,821	 
	Shares issued
    - Employee share purchase plan	 	 	 	 	 	20,496	 	 	311	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	311	 	 	-	 	 	311	 
	Share options-
    Share-based compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	3,636	 	 	-	 	 	-	 	 	-	 	 	3,636	 	 	2,315	 	 	5,951	 
	Share options exercised	 	 	 	 	 	1,043,903	 	 	18,069	 	 	-	 	 	(3,720	)	 	-	 	 	-	 	 	-	 	 	14,349	 	 	-	 	 	14,349	 
	Restricted share
    units to be settled in common shares:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Share-based
    compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	3,527	 	 	-	 	 	-	 	 	-	 	 	3,527	 	 	1,858	 	 	5,385	 
	 Settlement	 	 	 	 	 	215,851	 	 	2,605	 	 	-	 	 	(5,113	)	 	-	 	 	-	 	 	(671	)	 	(3,179	)	 	-	 	 	(3,179	)
	 Income tax impact	 	 	 	 	 	-	 	 	-	 	 	-	 	 	(184	)	 	-	 	 	-	 	 	-	 	 	(184	)	 	82	 	 	(102	)
	Deferred share
    units to be settled in common shares:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Share-based
    compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	1,162	 	 	-	 	 	-	 	 	-	 	 	1,162	 	 	1,259	 	 	2,421	 
	 Settlement	 	 	 	 	 	30,849	 	 	625	 	 	-	 	 	(1,349	)	 	-	 	 	-	 	 	(237	)	 	(961	)	 	-	 	 	(961	)
	 Income tax impact	 	 	 	 	 	-	 	 	-	 	 	-	 	 	(95	)	 	-	 	 	-	 	 	-	 	 	(95	)	 	88	 	 	(7	)
	Normal course
    issuer bid purchase of common shares	 	 	21	 	 	(2,103,366	)	 	(22,471	)	 	-	 	 	-	 	 	-	 	 	-	 	 	(8,320	)	 	(30,791	)	 	-	 	 	(30,791	)
	Deemed issuance of Osisko shares	 	 	12	 	 	517,409	 	 	6,100	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	6,100	 	 	-	 	 	6,100	 
	Maturity of convertible
    debenture - equity component	 	 	22	 	 	-	 	 	-	 	 	-	 	 	3,091	 	 	(3,091	)	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Transfer
    of realized loss on financial assets at fair value through other comprehensive income, net of income taxes	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	4,235	 	 	(4,235	)	 	-	 	 	-	 	 	-	 
	Balance - December 31, 2021	 	 	 	 	 	166,493,597	 	 	1,783,689	 	 	18,072	 	 	42,525	 	 	14,510	 	 	58,851	 	 	(283,042	)	 	1,634,605	 	 	145,456	 	 	1,780,061	 

 

 

(i) As at December 31, 2021, accumulated other
comprehensive income comprises items that will not be recycled to the consolidated statements of income (loss) amounting to $33.7 million
and items that may be recycled to the consolidated statements of income (loss) amounting to $25.1 million.

 

     10

     

    

 

	Osisko Gold Royalties Ltd

    Consolidated Statement of Changes in Equity

    For the year ended December 31, 2020

	(tabular amounts expressed in thousands of Canadian dollars)

 

	 	 	 	 	 	 	Equity
    attributed to Osisko Gold Royalties Ltd's shareholders	 	 	 	 	 
	 	 	 	 	Number
    of	 	 	 	 	 	 	 	Equity	 	Accumulated	 	 	 	 	 	 	 	 	 
	 	 	 	 	common	 	 	 	 	 	 	 	component
    of	 	other	 	Retained	 	 	 	Non-	 	 	 
	 	 	 	 	shares	 	Share	 	 	 	Contributed	 	convertible	 	comprehensive	 	earnings	 	 	 	controlling	 	 	 
	 	 	Notes	 	outstanding	 	capital	 	Warrants	 	surplus	 	debenture	 	income
    (loss)(i)	 	(deficit)	 	Total	 	interests	 	Total	 
	 	 	 	 	 	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 	$	 
	Balance
    - January 1, 2020	 	 	 	 	 	156,951,952	 	 	1,656,350	 	 	18,072	 	 	37,642	 	 	17,601	 	 	13,469	 	 	(249,688	)	 	1,493,446	 	 	-	 	 	1,493,446	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net
    earnings (loss)	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	16,876	 	 	16,876	 	 	(647	)	 	16,229	 
	Other
    comprehensive income	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	28,625	 	 	-	 	 	28,625	 	 	-	 	 	28,625	 
	Comprehensive
    income (loss)	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	28,625	 	 	16,876	 	 	45,501	 	 	(647	)	 	44,854	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Private
    placement	 	 	21	 	 	7,727,273	 	 	85,000	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	85,000	 	 	-	 	 	85,000	 
	Issue
    costs, net of taxes	 	 	 	 	 	-	 	 	(136	) 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(136	)	 	-	 	 	(136	)
	Income
    tax impact on prior year issue costs	 	 	 	 	 	-	 	 	3,644	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	3,644	 	 	-	 	 	3,644	 
	Net
    investments from minority shareholders, net of taxes	 	 	6,
                                            21	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	209,892	 	 	209,892	 
	Deemed
    acquisition of Barolo Ventures Corp.	 	 	6	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	1,751	 	 	1,751	 
	Acquisition
    of the San Antonio gold project	 	 	7	 	 	1,011,374	 	 	15,846	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	15,846	 	 	-	 	 	15,846	 
	Gain
    on dilution of non-controlling interests	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	98,329	 	 	98,329	 	 	(98,329	)	 	-	 
	Acquisition
    of royalty interests paid in shares	 	 	 	 	 	250,000	 	 	3,880	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	3,880	 	 	-	 	 	3,880	 
	Dividends
    declared	 	 	21	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(32,838	)	 	(32,838	)	 	-	 	 	(32,838	)
	Shares
    issued - Dividends reinvestment plan	 	 	21	 	 	268,173	 	 	3,440	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	3,440	 	 	-	 	 	3,440	 
	Shares
    issued - Employee share purchase plan	 	 	 	 	 	30,388	 	 	391	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	391	 	 	-	 	 	391	 
	Share
    options - Shared-based compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	3,104	 	 	-	 	 	-	 	 	-	 	 	3,104	 	 	-	 	 	3,104	 
	Share
    options exercised	 	 	 	 	 	232,964	 	 	3,932	 	 	-	 	 	(857	)	 	-	 	 	-	 	 	-	 	 	3,075	 	 	-	 	 	3,075	 
	Replacement
    share options exercised	 	 	 	 	 	440,506	 	 	5,976	 	 	-	 	 	(1,461	)	 	-	 	 	-	 	 	-	 	 	4,515	 	 	-	 	 	4,515	 
	Restricted
    share units to be settled in common shares:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Share-based
    compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	5,835	 	 	-	 	 	-	 	 	-	 	 	5,835	 	 	-	 	 	5,835	 
	 Settlement	 	 	 	 	 	145,694	 	 	1,984	 	 	-	 	 	(4,247	)	 	-	 	 	-	 	 	(279	)	 	(2,542	)	 	-	 	 	(2,542	)
	 Income
    tax impact	 	 	 	 	 	-	 	 	-	 	 	-	 	 	358	 	 	-	 	 	-	 	 	-	 	 	358	 	 	-	 	 	358	 
	Deferred
    share units to be settled in common shares:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Share-based
    compensation	 	 	 	 	 	-	 	 	-	 	 	-	 	 	1,113	 	 	-	 	 	-	 	 	-	 	 	1,113	 	 	-	 	 	1,113	 
	 Settlement	 	 	 	 	 	19,330	 	 	255	 	 	-	 	 	(266	)	 	-	 	 	-	 	 	(1	)	 	(12	)	 	-	 	 	(12	)
	 Income
    tax impact	 	 	 	 	 	-	 	 	-	 	 	-	 	 	349	 	 	-	 	 	-	 	 	-	 	 	349	 	 	-	 	 	349	 
	Normal
    course issuer bid purchase of common shares	 	 	21	 	 	(429,722	) 	 	(3,933	 )	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(3,933	)	 	-	 	 	(3,933	)
	Transfer
    of realized other comprehensive income of Associates, net of income taxes	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	(414	)	 	414	 	 	-	 	 	-	 	 	-	 
	Transfer
    of realized loss on financial assets at fair value through other comprehensive income, net of income taxes	 	 	 	 	 	-	 	 	-	 	 	-	 	 	-	 	 	-	 	 	7,271	 	 	(7,271	)	 	-	 	 	-	 	 	-	 
	Balance
    - December 31, 2020 (ii)	 	 	 	 	 	166,647,932	 	 	1,776,629	 	 	18,072	 	 	41,570	 	 	17,601	 	 	48,951	 	 	(174,458	)	 	1,728,365	 	 	112,667	 	 	1,841,032	 

 

(i) As at December 31, 2020, accumulated other
comprehensive income comprises items that will not be recycled to the consolidated statements of income (loss) amounting to $20.8 million
and items that may be recycled to the consolidated statements of income (loss) amounting to $28.1 million.

 

(ii) As at December 31, 2020, there are 167,165,341
common shares issued, of which 517,409 are deemed to have been repurchased given that one of the Company's associates owns some of the
Company's common shares.

 

     11

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

1. Nature
of activities

 

Osisko Gold Royalties Ltd and its subsidiaries
(together "Osisko" or the "Company") are engaged in the business of acquiring and managing precious metal and other
high-quality royalties, streams and similar interests in Canada and worldwide, except for Osisko Development Corp. and its subsidiaries
("Osisko Development"), which are engaged in the exploration, evaluation and development of mining projects. Osisko is a public
company traded on the Toronto Stock Exchange, and the New York Stock Exchange constituted under the Business Corporations Act (Québec)
and domiciled in the Province of Québec, Canada. The address of its registered office is 1100, avenue des Canadiens-de-Montréal,
Suite 300, Montréal, Québec. The Company owns a portfolio of royalties, streams, offtakes, options on royalty/stream financings
and exclusive rights to participate in future royalty/stream financings on various projects. The Company's cornerstone asset is a 5%
net smelter return ("NSR") royalty on the Canadian Malartic mine, located in Canada.

 

In November 2020, Osisko completed
the spin-out transaction of its mining assets and certain equity investments to Osisko Development, a newly created company engaged in
the exploration, evaluation and development of mining projects in Canada and in Mexico (Note 6). The common shares of Osisko Development
began trading on the TSX Venture Exchange (the "TSX-V") on December 2, 2020 under the symbol "ODV". On December 31,
2021, Osisko held an interest of 75.1% in Osisko Development and, as a result, the Company consolidated the assets, liabilities, results
of operations and cash flows of the activities of Osisko Development and its subsidiaries. Osisko Development's main asset is the Cariboo
gold project in Canada.

 

2. Basis
of presentation

 

The accompanying consolidated financial
statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued
by the International Accounting Standards Board ("IASB"). The accounting policies, methods of computation and presentation
applied in these consolidated financial statements are consistent with those of the previous financial year. The Board of Directors approved
the audited consolidated financial statements for issue on February 24, 2022.

 

Uncertainty due to COVID-19

 

The COVID-19 pandemic has had a significant
impact on the global economy and commodity and financial markets. The full extent and impact of the COVID-19 pandemic is unknown at this
time and its adverse effects may continue for an extended and unknown period of time, particularly as variant strains of the virus are
identified.

 

The impact of the pandemic to date
has included volatility in financial markets, a slowdown in economic activity, supply chain and labour issues, and volatility in commodity
prices (including gold and silver). Furthermore, as efforts have been undertaken to slow the spread of the COVID-19 pandemic, the operation
and development of mining projects have been impacted. Many mining projects, including a number of the properties in which Osisko holds
a royalty, stream or other interest have been impacted by the pandemic resulting in the temporary suspension of operations, and other
mitigation measures that impacted production. If the operation or development of one or more of the properties in which Osisko holds
a royalty, stream or other interest and from which it receives or expects to receive significant revenue is suspended as a result of
the continuing COVID-19 pandemic or future pandemics or other public health emergencies, it may have a material adverse impact on Osisko's
profitability, results of operations, financial condition and the trading price of Osisko's securities. The extent of the impact of the
COVID-19 pandemic on our operational and financial performance will depend on future developments, including a widely available vaccine
in each of the countries where are located the assets on which we own a royalty, stream or other interest, the duration and severity
of the pandemic and related restrictions, all of which continue to be uncertain and cannot be predicted.

 

3. Significant
accounting policies

 

The significant accounting policies
applied in the preparation of the consolidated financial statements are described below.

 

a) Basis
of measurement

 

The consolidated financial statements
are prepared under the historical cost convention, except for the revaluation of certain financial assets at fair value (including derivative
instruments).

 

     12

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

b) Business
combinations

 

On the acquisition of a business,
the acquisition method of accounting is used whereby the identifiable assets, liabilities and contingent liabilities (identifiable net
assets) of the business are measured at fair value at the date of acquisition. Provisional fair values estimated at a reporting date
are finalized as soon as the relevant information is available, which period shall not exceed twelve months from the acquisition date
and are adjusted to reflect the transaction as of the acquisition date. Any excess of the consideration paid is treated as goodwill,
and any bargain gain is immediately recognized in the statement of income (loss) and comprehensive income (loss). If control is lost
as a result of a transaction, the participation retained is recognized on the balance sheet at fair value and the difference between
the fair value recognized and the carrying value as at the date of the transaction is recognized in the statement of income (loss). Acquisition
costs are expensed as incurred.

 

The Company recognizes any non-controlling
interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest's proportionate
share of the recognized amounts of acquiree's identifiable net assets.

 

The results of businesses acquired
during the period are consolidated into the consolidated financial statements from the date on which control commences (generally at
the closing date when the acquirer legally transfers the consideration).

 

c) Non-controlling
interests

 

Non-controlling interests represent
an equity interest in a subsidiary owned by an outside party. The share of net assets of the subsidiary attributable to the non-controlling
interests is presented as a component of equity. Their share of net income or loss and comprehensive income or loss is recognized directly
in equity. Changes in the Company's ownership interest in the subsidiary that do not result in a loss of control are accounted for as
equity transactions.

 

d) Consolidation

 

The Company's financial statements
consolidate the accounts of Osisko Gold Royalties Ltd and its subsidiaries. All intercompany transactions, balances and unrealized gains
or losses from intercompany transactions are eliminated on consolidation. Subsidiaries are all entities over which the Company has the
ability to exercise control. The Company controls an entity when the group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to Osisko and are de-consolidated from the date that control ceases.  Accounting policies
of subsidiaries are consistent with the policies adopted by Osisko.

 

The principal subsidiaries of the
Company, their geographic locations, related participation and principal operating segment (Note 31) at December 31, 2021 and 2020 were
as follows:

 

	Entity	 	Jurisdiction	 	Participation	 	 	Functional currency	 	Operating Segment
	Osisko Development Corp.(i)	 	Québec	 	75.1%		 	Canadian dollar	 	Exploration/development of mining projects
	Osisko Bermuda Limited	 	Bermuda	 	100%		 	United States dollar	 	Royalties, streams and similar interests
	Osisko Mining (USA) Inc.	 	Delaware	 	100%		 	United States dollar	 	Royalties, streams and similar interests

 

(i) The following entities
are wholly-owned subsidiaries of Osisko Development since November 25, 2020 (Note 6): Barkerville Gold Mines Ltd. (British Columbia),
Coulon Mines Inc. (Canada), General Partnership Osisko James Bay (Québec) and Sapuchi Minera S. de R.L. de C.V. (Mexico) (Pesos
as functional currency). Prior to that date, these subsidiaries were wholly-owned by the Company. The participation in Osisko Development
on December 31, 2020 was 84.1%.

 

     13

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

e) Foreign
currency translation

 

(i) Functional
and presentation currency

 

Items included in the financial statements
of each consolidated entity and associate of the Company are measured using the currency of the primary economic environment in which
the entity operates (the "functional currency"). The consolidated financial statements are presented in Canadian dollars, which
is the functional currency of the parent Company and some of its subsidiaries.

 

Assets and liabilities of the subsidiaries
that have a functional currency other than the Canadian dollar are translated into Canadian dollars at the exchange rate in effect on
the consolidated balance sheet date and revenues and expenses are translated at the average exchange rate over the reporting period.
Gains and losses from these translations are recognized as currency translation adjustment in other comprehensive income or loss.

 

(ii) Transactions
and balances 

 

Foreign currency transactions, including
revenues and expenses, are translated into the functional currency at the rate of exchange prevailing on the date of each transaction
or valuation when items are re-measured. Monetary assets and liabilities denominated in currencies other than the operation's functional
currencies are translated into the functional currency at exchange rates in effect at the balance sheet date. Foreign exchange gains
and losses resulting from the settlement of those transactions and from period-end translations are recognized in the consolidated statement
of income (loss).

 

Non-monetary assets and liabilities
are translated at historical rates, unless such assets and liabilities are carried at fair value, in which case, they are translated
at the exchange rate in effect at the date of the fair value measurement. Changes in fair value attributable to currency fluctuations
of non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are recognized in the consolidated
statement of income (loss) as part of the fair value gain or loss. Such changes in fair value of non-monetary financial assets, such
as equities classified at fair value through other comprehensive income, are included in other comprehensive income or loss.

 

f) Financial
instruments

 

Financial assets and liabilities are
recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when the
rights to receive cash flows from the assets have expired or have been transferred and the Company has transferred substantially all
risks and rewards of ownership.

 

Financial assets and liabilities are
offset and the net amount is reported in the balance sheet when there is an unconditional and legally enforceable right to offset the
recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

 

All financial instruments are required
to be measured at fair value on initial recognition. The fair value is based on quoted market prices, unless the financial instruments
are not traded in an active market. In this case, the fair value is determined by using valuation techniques like the Black-Scholes option
pricing model or other valuation techniques.

 

     14

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

f) Financial
instruments (continued)

 

Measurement after initial recognition
depends on the classification of the financial instrument. The Company has classified its financial instruments in the following categories
depending on the purpose for which the instruments were acquired and their characteristics.

 

(i) Financial
assets

 

Debt instruments

 

Investments in debt instruments are
subsequently measured at amortized cost when the asset is held within a business model whose objective is to hold assets in order to
collect contractual cash flows and when the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

 

Investments in debt instruments are
subsequently measured at fair value when they do not qualify for measurement at amortized cost. Financial instruments subsequently measured
at fair value, including derivatives that are assets, are carried at fair value with changes in fair value recorded in net income or
loss unless they are held within a business model whose objective is to hold assets in order to collect contractual cash flows or sell
the assets and when the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding, in which case unrealized gains and losses are initially recognized in
other comprehensive income or loss for subsequent reclassification to net income or loss through amortization of premiums and discounts,
impairment or derecognition.

 

Equity instruments

 

Investments in equity instruments
are subsequently measured at fair value with changes recorded in net income or loss. Equity instruments that are not held for trading
can be irrevocably designated at fair value through other comprehensive income or loss on initial recognition without subsequent reclassification
to net income or loss. Cumulative gains and losses are transferred from accumulated other comprehensive income (loss) to retained earnings
upon derecognition of the investment. Dividend income on equity instruments measured at fair value through other comprehensive income
or loss is recognized in the statement of income (loss) on the ex-dividend date.

 

(ii) Financial
liabilities

 

Financial liabilities are subsequently
measured at amortized cost using the effective interest method, except for financial liabilities at fair value through profit or loss.
Such liabilities, including derivatives that are liabilities, are subsequently measured at fair value.

 

     15

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

f) Financial
instruments (continued)

 

The Company has
classified its financial instruments as follows:

 

	Category	Financial instrument
	 	 
	Financial assets at amortized cost	Bank balances

    Short-term debt securities

    Notes and loans receivable

    Trade receivables

    Interest income receivable

    Amounts receivable from associates and other receivables

    Reclamation deposits

	 	 
	Financial assets at fair value through profit
    or loss
	Investments in derivatives and convertible debentures
	 	 
	Financial assets at fair value through other
    comprehensive income or loss
	Investments in shares and equity instruments, other than in derivatives
	 	 
	Financial liabilities at amortized cost	Accounts payable and accrued liabilities

    Liability component of convertible debentures

    Borrowings under revolving credit facilities

    Equipment financings

 

Derivatives

 

Derivatives, other than warrants held
in mining exploration and development companies, are only used for economic hedging purposes and not as speculative investments. Derivatives
are initially recognised at fair value on the date a derivative contract is entered into and are subsequently measured to their fair
value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated
as a hedging instrument, and if so, the nature of the item being hedged.

 

g) Impairment
of financial assets

 

At each reporting date, the Company
assesses, on a forward-looking basis, the expected credit losses associated with its financial assets carried at amortized cost. The
impairment methodology applied depends on whether there has been a significant increase in the credit risk or if a simplified approach
has been selected.

 

The Company has two principal
types of financial assets subject to the expected credit loss model:

 

		·	Trade
                                            receivables; and

 

		·	Investments
                                            in debt instruments measured at amortized cost.

 

Amounts receivable

 

The Company applies the simplified
approach permitted by IFRS 9 for trade receivables (including amounts receivable from associates and other receivables), which requires
lifetime expected credit losses to be recognized from initial recognition of the receivables.

 

Investments in debt instruments

 

To the extent that a debt instrument
at amortized cost is considered to have low credit risk, which corresponds to a credit rating within the investment grade category and
the credit risk has not increased significantly, the loss allowance is determined on the basis of 12-month expected credit losses. If
the credit risk has increased significantly, the lifetime expected credit losses are recognized.

 

     16

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

h) Cash

 

Cash includes demand deposits held
with banks.

 

i) Refundable
tax credits for mining exploration expenses 

 

The Company is entitled to refundable
tax credits on qualified mining exploration and evaluation expenses incurred in the provinces of Québec and British-Columbia.
The credits are accounted for against the exploration and evaluation expenses incurred.

 

j) Inventories

 

Inventories are valued at the lower
of cost and net realizable value. Cost is determined on a weighted average basis.

 

k) Investments
in associates

 

Associates are entities over which
the Company has significant influence, but not control. The financial results of the Company's investments in its associates are included
in the Company's results according to the equity method. Under the equity method, the investment is initially recognized at cost, and
the carrying amount is increased or decreased to recognize the Company's share of profits or losses of associates after the date of acquisition.
The Company's share of profits or losses is recognized in the consolidated statement of income (loss) and its share of other comprehensive
income or loss of associates is included in other comprehensive income or loss.

 

Unrealized gains on transactions between
the Company and an associate are eliminated to the extent of the Company's interest in the associate. Unrealized losses are also eliminated
unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in
interests in investments in associates are recognized in the consolidated statement of income or loss.

 

The Company assesses at each reporting
date whether there is any objective evidence that its investments in associates are impaired. If impaired, the carrying value of the
Company's share of the underlying assets of associates is written down to its estimated recoverable amount (being the higher of fair
value less costs of disposal and value-in-use) and charged to the consolidated statement of income or loss.

 

l) Royalty,
stream and other interests

 

Royalty, stream and other interests
consist of acquired royalty, stream and other interests in producing, development and exploration and evaluation stage properties. Royalty,
stream and other interests are recorded at cost and capitalized as tangible assets. They are subsequently measured at cost less accumulated
depletion and depreciation and accumulated impairment losses. The major categories of the Company's interests are producing, development
and exploration and evaluation. Producing assets are those that have generated revenue from steady-state operations for the Company.
Development assets are interests in projects that are under development, in permitting or feasibility stage and that in management's
view, can be reasonably expected to generate steady-state revenue for the Company in the near future. Exploration and evaluation assets
represent properties that are not yet in development, permitting or feasibility stage or that are speculative in nature and are expected
to require several years to generate revenue, if ever, or are currently not active.

 

Producing and development royalty,
stream and other interests are recorded at cost and capitalized in accordance with IAS 16 Property, Plant and Equipment. Producing
royalty, stream and other interests are depleted using the units-of-production method over the life of the property to which the interest
relates, which is estimated using available estimates of proven and probable mineral reserves specifically associated with the properties
and may include a portion of resources expected to be converted into mineral reserves. Management relies on information available to
it under contracts with the operators and / or public disclosures for information on proven and probable mineral reserves and resources
from the operators of the producing royalty, stream and other interests.

 

     17

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

l) Royalty,
stream and other interests (continued)

 

On acquisition of a producing or a
development royalty, stream and other interest, an allocation of the acquisition cost is made for the exploration potential based on
its fair value. The estimated fair value of this acquired exploration potential is recorded as an asset (non-depreciable interest) on
the acquisition date. Updated mineral reserve and resource information obtained from the operators of the properties is used to determine
the amount to be converted from non-depreciable interest to depreciable interest.

 

Royalty, stream and other interests
for exploration and evaluation assets are recorded at cost and capitalized in accordance with IFRS 6 Exploration for and Evaluation
of Mineral Resources. Acquisition costs of exploration and evaluation royalty, stream and other interests are capitalized and are
not depleted until such time as revenue-generating activities begin.

 

Producing and development royalty,
stream and other interests are reviewed for impairment at each reporting date if there is any indication that the carrying amount may
not be recoverable. Impairment is assessed at the level of Cash-Generating Units (''CGU'') which, in accordance with IAS 36 Impairment
of Assets, are identified as the smallest identifiable group of assets that generates cash inflows, which are largely independent
of the cash inflows from other assets. This is usually at the individual royalty, stream and other interest level for each property from
which cash inflows are generated.

 

Royalty, stream and other interests
for exploration and evaluation assets are assessed for impairment whenever indicators of impairment exist in accordance with IFRS 6.
An impairment loss is recognized for the amount by which the asset's carrying value exceeds its recoverable amount, which is the higher
of fair value less costs of disposal and value-in-use. An interest that has previously been classified as exploration and evaluation
is also assessed for impairment before reclassification to development or producing, and the impairment loss, if any, is recognized in
net income.

 

m) Property
and equipment

 

Property and equipment are stated
at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to
the acquisition of an asset. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefit associated with the item will flow to the Company and the cost can be measured
reliably. The carrying amount of a replaced asset is derecognized when replaced.

 

Depreciation is calculated to amortize
the cost of the property and equipment less their residual values over their estimated useful lives using the straight-line method and
following periods by major categories:

 

Leasehold improvements Lease
term

Furniture and office
equipment 2-7 years

Exploration equipment
and facilities 2-20 years

Mining plant and
equipment (development) 3-20 years

Right-of-use assets Shorter
of useful life and lease term

 

Residual values, method of depreciation
and useful lives of the assets are reviewed annually and adjusted if appropriate.

 

Gains and losses on disposals of property
and equipment are determined by comparing the proceeds with the carrying amount of the asset and are included as part of other gains
or losses, net in the consolidated statement of income (loss).

 

     18

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

n) Exploration
and evaluation expenditures

 

Exploration and evaluation assets
are comprised of exploration and evaluation expenditures and mining properties acquisition costs for exploration and evaluation assets.
Expenditures incurred on activities that precede exploration and evaluation, being all expenditures incurred prior to securing the legal
rights to explore an area, are expensed immediately. Exploration and evaluation assets include rights in mining properties, paid or acquired
through a business combination or an acquisition of assets, and costs related to the initial search for mineral deposits with economic
potential or to obtain more information about existing mineral deposits. Mining rights are recorded at acquisition cost less accumulated
impairment losses. Mining rights and options to acquire undivided interests in mining rights are depreciated only as these properties
are put into commercial production.

 

Exploration and evaluation expenditures
for each separate area of interest are capitalized and include costs associated with prospecting, sampling, trenching, drilling and other
work involved in searching for ore like topographical, geological, geochemical and geophysical studies. They also reflect costs related
to establishing the technical and commercial viability of extracting a mineral resource identified through exploration and evaluation
or acquired through a business combination or asset acquisition.

 

Exploration and evaluation
expenditures include the cost of:

 

		(i)	establishing the volume
                                            and grade of deposits through drilling of core samples, trenching and sampling activities;

		(ii)	determining the optimal
                                            methods of extraction and metallurgical and treatment processes;

		(iii)	studies related
                                            to surveying, transportation and infrastructure requirements;

		(iv)	permitting activities;
                                            and

		(v)	economic evaluations
                                            to determine whether development of the mineralized material is commercially justified, including
                                            scoping, prefeasibility and final feasibility studies.

 

Exploration and evaluation expenditures
include overhead expenses directly attributable to the related activities.

 

Cash flows attributable to capitalized
exploration and evaluation costs are classified as investing activities in the consolidated statement of cash flows under the heading
exploration and evaluation.

 

Exploration and evaluation assets
under a farm-out arrangement (where a farmee incurs certain expenditures in a property to earn an interest in that property) are accounted
as follows:

 

(i) the
Company uses the carrying value of the interest before the farm-out arrangement as the carrying value for the portion of the interest
retained;

(ii) the
Company credits any cash consideration received against the carrying amount of the portion of the interest retained, with an excess included
as a gain in profit or loss;

(iii) in
the situation where a royalty interest is retained by the Company as a result of an interest earned by the farmee, the Company records
the royalty interest received at an amount corresponding to the carrying value of the exploration and evaluation property at the time
of the transfer in ownership; and

(iv) the
Company does not record exploration expenditures made by the farmee on the property.

 

o) Goodwill

 

Goodwill is recognized in a business
combination if the cost of the acquisition exceeds the fair value of the identifiable net assets acquired. Goodwill is then allocated
to the CGU or group of CGUs that are expected to benefit from the synergies of the combination. The Company performs goodwill impairment
tests on an annual basis as at December 31 of each year. In addition, the Company assesses for indicators of impairment at each reporting
period end and, if an indicator of impairment is identified, goodwill is tested for impairment at that time. If the carrying value of
the CGU or group of CGUs to which goodwill is assigned exceeds its recoverable amount, an impairment loss is recognized. Goodwill impairment
losses are not reversed.

 

The recoverable amount of a CGU or
group of CGUs is measured as the higher of value in use and fair value less costs of disposal.

 

     19

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars,
    except per share amounts)

 

3. Significant
accounting policies (continued)

 

p) Provision
for environmental rehabilitation

 

Provision for environmental rehabilitation,
restructuring costs and legal claims, where applicable, is recognized when:

 

(i) The Company
has a present legal or constructive obligation as a result of past events.

(ii) It is
probable that an outflow of resources will be required to settle the obligation.

(iii) The
amount can be reliably estimated.

 

The provision is measured at management's
best estimate of the expenditure required to settle the obligation at the end of the reporting period, and is discounted to present value
where the effect is material. The increase in the provision due to passage of time is recognized as finance costs. Changes in assumptions
or estimates are reflected in the period in which they occur.

 

Provision for environmental rehabilitation
represents the legal and constructive obligations associated with the eventual closure of the Company's property, plant and equipment.
These obligations consist of costs associated with reclamation and monitoring of activities and the removal of tangible assets. The discount
rate used is based on a pretax rate that reflects current market assessments of the time value of money and the risks specific to the
obligation, excluding the risks for which future cash flow estimates have already been adjusted.

 

Reclamation deposits

 

Reclamation deposits are term deposits
held for the benefit of the Government of the Province of British Columbia as collateral for possible rehabilitation activities on Osisko
Development's mineral properties in connection with permits required for exploration activities. Reclamation deposits are released once
the property is restored to satisfactory condition, or as released under the surety bond agreement. As they are restricted from general
use, they are included under other assets on the consolidated balance sheets.

 

q) Current
and deferred income tax

 

The tax expense for the period comprises
current and deferred tax. Tax is recognized in the consolidated statement of income (loss), except to the extent that it relates to items
recognized in other comprehensive income or loss or directly in equity. In this case, the tax is also recognized in other comprehensive
income or loss or directly in equity, respectively.

 

Current income taxes

 

The current income tax charge is the
expected tax payable on the taxable income for the year, using the tax laws enacted or substantively enacted at the balance sheet date
in the jurisdictions where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.

 

Deferred income taxes

 

The Company uses the asset and liability
method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for future tax consequences
attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates (and laws) that apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled.

 

Deferred income tax assets are recognized
only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized.

 

Deferred income tax is provided on
temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary
difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.

 

     20

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

q) Current
and deferred income tax (continued)

 

Deferred income taxes (continued)

 

Deferred income tax assets and liabilities
are presented as non-current and are offset when there is a legally enforceable right to offset current tax assets against current tax
liabilities and when deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

 

r) Convertible
debentures

 

The liability and equity components
of convertible debentures are presented separately on the consolidated balance sheet starting from initial recognition.

 

The liability component is recognized
initially at the fair value, by discounting the stream of future payments of interest and principal at the prevailing market rate for
a similar liability of comparable credit status and providing substantially the same cash flows that do not have an associated conversion
option. Subsequent to initial recognition, the liability component is measured at amortized cost using the effective interest method;
the liability component is increased by accretion of the discounted amounts to reach the nominal value of the debentures at maturity.

 

The carrying amount
of the equity component is calculated by deducting the carrying amount of the financial liability from the amount of the debentures and
is presented in shareholders' equity as equity component of convertible debenture. The equity component is not re-measured subsequent
to initial recognition except on conversion or expiry. A deferred tax liability is recognized with respect to any temporary difference
that arises from the initial recognition of the equity component separately from the liability component. The deferred tax is charged
directly to the carrying amount of the equity component.  Subsequent changes in the deferred tax liability are recognized through
the consolidated statement of income (loss). Transaction costs are distributed between liability and equity on a pro-rata basis of their
carrying amounts.

 

s) Share
capital

 

Common shares are classified as equity.
Incremental costs directly attributable to the issuance of shares are recognized as a deduction from the proceeds in equity in the period
where the transaction occurs.

 

t) Warrants

 

Warrants are classified as equity.
Incremental costs directly attributable to the issuance of warrants are recognized as a deduction from the proceeds in equity in the
period where the transaction occurs.

 

u) Revenue
recognition 

 

Revenue comprises revenues from the
sale of commodities received and revenues directly earned from royalty, stream and other interests.

 

For royalty and stream agreements
paid in-kind and for offtake agreements, the Company's performance obligations relate primarily to the delivery of gold, silver or other
products to the customers. Revenue is recognized when control is transferred to the customers, which is achieved when a product is delivered,
the customer has full discretion over the product and there is no unfulfilled obligation that could affect the customer's acceptance
of the product. Control over the refined gold, silver and other products is transferred to the customers when the relevant product received
(or purchased) from the operator is physically delivered and sold by the Company (or its agent) to the third party customers. For royalty
and stream agreements paid in cash, revenue recognition will depend on the related agreement.

 

Revenue is measured at fair value
of the consideration received or receivable when management can reliably estimate the amount, pursuant to the terms of the royalty, stream
and other interest agreements. In some instances, the Company will not have access to sufficient information to make a reasonable estimate
of revenue and, accordingly, revenue recognition is deferred until management can make a reasonable estimate. Differences between estimates
and actual amounts are adjusted and recorded in the period that the actual amounts are known.

 

     21

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and
    2020

	(tabular amounts expressed in thousands of Canadian dollars, except
    per share amounts)

 

3. Significant
accounting policies (continued)

 

v) Leases

 

The Company is committed to long-term
lease agreements, mainly for office space and mining equipment.

 

Leases are recognized as a right-of-use
asset (presented under non-current other assets on the consolidated balance sheet) and a corresponding liability at the date at
which the leased asset is available for use by the Company. Each lease payment is allocated between the liability and finance cost. The
finance cost is charged to profit or loss over the lease term so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease
term on a straight-line basis.

 

Assets and liabilities arising from
a lease are initially measured on a present value basis. The lease payments are discounted using the interest rate implicit in the lease.
If that rate cannot be readily determined, the Company's incremental borrowing rate is used, being the rate that the Company would have
to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

 

Payments associated with short-term
leases (12 months or less) and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss.

 

w) Share-based
compensation

 

Share option plan

 

Each of the Company and its subsidiary,
Osisko Development, offer a share option plan to their respective directors, officers, employees and consultants. Each tranche in an
award is considered a separate award with its own vesting period and grant date fair value. Fair value of each tranche is measured at
the date of grant using the Black-Scholes option pricing model. Compensation expense is recognized over the tranche's vesting period
by increasing contributed surplus based on the number of awards expected to vest. The number of awards expected to vest is reviewed at
least annually, with any impact being recognized immediately.

 

Any consideration paid on exercise
of share options is credited to share capital. The contributed surplus resulting from share-based compensation is transferred to share
capital when the options are exercised.

 

Deferred and restricted share units

 

Each of the Company and its subsidiary,
Osisko Development, offer a deferred share units ("DSU") plan to their respective non-executive directors and a restricted
share units ("RSU") plan to their officers and employees. DSU may be granted to non-executive directors and RSU may be granted
to employees and officers as part of their long-term compensation package, entitling them to receive a payment in the form of common
shares, cash (based on the Osisko's share price or Osisko Development's share price at the relevant time) or a combination of common
shares and cash, at the sole discretion of Osisko or Osisko Development. The fair value of the DSU and RSU granted by Osisko to be settled
in common shares is measured on the grant date and is recognized over the vesting period under contributed surplus with a corresponding
charge to share-based compensation. The fair value of the DSU and RSU granted by Osisko Development to be settled in common shares
is measured on the grant date and is recognized over the vesting period under non-controlling interests with a corresponding charge
to share-based compensation. A liability for the DSU and RSU to be settled in cash is measured at fair value on the grant date
and is subsequently adjusted at each balance sheet date for changes in fair value. The liability is recognized over the vesting period
with a corresponding charge to share-based compensation.

 

     22

     

    

  

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

3. Significant
accounting policies (continued)

 

x) Earnings
per share

 

The calculation of earnings per share
("EPS") is based on the weighted average number of shares outstanding for each period. The basic EPS is calculated by dividing
the profit or loss attributable to the equity owners of Osisko by the weighted average number of common shares outstanding during the
period.

 

The computation of diluted EPS assumes
the conversion, exercise or contingent issuance of securities only when such conversion, exercise or issuance would have a dilutive effect
on the income per share. The treasury stock method is used to determine the dilutive effect of the warrants, share options, DSU and RSU
and the if-converted method is used for convertible debentures. When the Company reports a loss, the diluted net loss per common share
is equal to the basic net loss per common share due to the anti-dilutive effect of the outstanding warrants, share options, DSU and RSU
and convertible debentures.

 

y) Segment
reporting

 

The operating segments are reported
in a manner consistent with the internal reporting provided to the President and Chief Executive Officer ("CEO") who fulfills
the role of the chief operating decision-maker. The CEO is responsible for allocating resources and assessing performance of the Company's
operating segments. The Company manages its business under two operating segments: (i) acquiring and managing precious metal and other
royalties, streams and similar interests, and (ii) the exploration, evaluation and development of mining projects (through Osisko Development).

 

4. New
accounting standards and amendments

 

New accounting standard

 

Interest rate benchmark
reform - Phase 2

 

In August 2020, the IASB made amendments
to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 to address the issues that arise during the reform of an interest rate benchmark rate,
including the replacement of one benchmark with an alternative one. Affected entities need to disclose information about the nature and
extent of risks arising from IBOR reform to which the entity is exposed, how the entity manages those risks, and the entity's progress
in completing the transition to alternative benchmark rates and how it is managing that transition. The amendments are applicable to
financial reporting periods commencing on or after January 1, 2021.

 

The Company amended its revolving
credit facility in 2021 and, as such, the agreement now includes alternative benchmark rates and transition measures. As the amounts
drawn under the credit facility are for a period of one to three months, the Company does not expect any significant impact on the transition
to a replacement benchmark rate.

 

Accounting standards issued
but not yet effective

 

The Company has not yet adopted certain
standards, interpretations to existing standards and amendments which have been issued but have an effective date of later than December
31, 2021.  Many of these updates are not expected to have any significant impact on the Company and are therefore not discussed
herein.

 

Amendments to IAS 16 Property,
plant and equipment

 

The IASB has made amendments to IAS
16 Property, plant and equipment, which will be effective for financial years beginning on or after January 1, 2022. Proceeds
from selling items before the related item of property, plant and equipment is available for use should be recognized in profit or loss,
together with the costs of producing those items. The Company will therefore need to distinguish between the costs associated with producing
and selling items before the item of property, plant and equipment (pre-production revenue) is available for use and the costs associated
with making the item of property, plant and equipment available for its intended use. For the sale of items that are not part of a company's
ordinary activities, the amendments will require the Company to disclose separately the sales proceeds and related production cost recognized
in profit or loss and specify the line items in which such proceeds and costs are included in the statement of comprehensive income (loss).
These amendments will have an impact on the Company's consolidated financial statements in 2022.

 

     23

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

4. New
accounting standards and amendments (continued)

 

Accounting standards issued
but not yet effective (continued)

 

Amendments to IAS 16 Property,
plant and equipment (continued)

 

In 2022, the Company will record pre-commercial
revenues generated from the mining activities engaged by Osisko Development, and will retroactively adjust its 2021 results to conform
with the new amendments. This will result in additional revenues and costs of sales on the statement of income (loss) of approximately
$7.3 million for the year 2021.

 

5. Critical
accounting estimates and judgements

 

The preparation of financial statements
in conformity with IFRS requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. The Company also makes estimates and assumptions concerning the future. The determination of estimates
requires the exercise of judgement based on various assumptions and other factors such as historical experience and current and expected
economic conditions. Actual results could differ from those estimates. Estimates and assumptions are continually evaluated and are based
on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

Critical accounting
estimates and assumptions

 

Mineral reserves and
resources - Royalties, streams and other assets

 

Royalty, stream and other interests
comprise a large component of the Company's assets and as such, the mineral reserves and resources of the properties to which the interests
relate have a significant effect on the Company's consolidated financial statements. These estimates are applied in determining the depletion
of the Company's royalty, stream and other interests and assessing the recoverability of the carrying value of royalty, stream and other
interests. For royalty, stream and other interests, the public disclosures of mineral reserves and resources that are released by the
operators of the properties involve assessments of geological and geophysical studies and economic data and the reliance on a number
of assumptions, including commodity prices and production costs. These assumptions are, by their very nature, subject to interpretation
and uncertainty. The estimates of mineral reserves and resources may change based on additional knowledge gained subsequent to the initial
assessment, adjusted by the Company's internal geological specialists, as deemed necessary. Changes in the estimates of mineral reserves
and resources may materially affect the recorded amounts of depletion and the assessed recoverability of the carrying value of royalty,
stream and other interests.

 

Mineral reserves and
resources - Exploration and development projects

 

Mineral reserves are estimates of
the amount of ore that can be economically and legally extracted from the Company's mining properties. The Company estimates its mineral
reserve and mineral resources based on information compiled by Qualified Persons as defined by Canadian Securities Administrators National
Instrument 43-101, Standards for Disclosure of Mineral Projects. Such information includes geological data on the size, depth
and shape of the mineral deposit, and requires complex geological judgments to interpret the data. The estimation of recoverable reserves
is based upon factors such as estimates of commodity prices, future capital requirements, and production costs along with geological
assumptions and judgments made in estimating the size and grade that comprise the mineral reserves. Changes in the mineral reserve or
mineral resource estimates may impact the carrying value of mineral properties and deferred development costs, property, plant and equipment,
provision for site reclamation and closure, recognition of deferred income tax assets and depreciation and amortization charges.

 

Impairment of royalty, stream and
other interests

 

The assessment of the fair values
of royalty, stream and other interests requires the use of estimates and assumptions for recoverable production, long-term commodity
prices, discount rates, mineral reserve/resource conversion, net asset value multiples, foreign exchange rates, future capital expansion
plans and the associated production implications. In addition, the Company may use other approaches in determining fair value which may
include estimates related to (i) dollar value per ounce of mineral reserve/resource; (ii) cash-flow multiples; and (iii) market capitalization
of comparable assets. Changes in any of the estimates used in determining the fair value of the royalty, stream and other interests could
impact the impairment analysis.

 

     24

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

5. Critical
accounting estimates and judgements (continued)

 

Critical accounting
estimates and assumptions (continued)

 

Impairment of exploration and evaluation
assets, mining interests and plant and equipment

 

The Company's accounting policy for
exploration and evaluation expenditure results in certain items of expenditure being capitalized. This policy requires management to
make certain estimates and assumptions as to future events and circumstances, in particular whether an economically viable extraction
operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having capitalized
the expenditure, a judgement is made that recovery of the expenditure is unlikely, the relevant capitalized amount will be written off
to the consolidated statement of income (loss).

 

Development activities commence after
project sanctioning by senior management. Judgement is applied by management in determining when a project has reached a stage at which
economically recoverable reserves exist such that development may be sanctioned. In exercising this judgement, management is required
to make certain estimates and assumptions similar to those described above for capitalized exploration and evaluation expenditure. Such
estimates and assumptions may change as new information becomes available. If, after having started the development activity, a judgement
is made that a development asset is impaired, the appropriate amount will be written off to the consolidated statement of income (loss).

 

The Company's recoverability of its
recorded value of its exploration and evaluation assets, mining interests and plant and equipment is based on market conditions for metals,
underlying mineral resources associated with the properties and future costs that may be required for ultimate realization through mining
operations or by sale.

 

At each reporting date, the Company
evaluates each mining property and project on results to date to determine the nature of exploration, other assessment and development
work that is warranted in the future. If there is little prospect of future work on a property or project being carried out within a
prolonged period from completion of previous activities, the deferred expenditures related to that property or project are written off
or written down to the estimated amount recoverable unless there is persuasive evidence that an impairment allowance is not required.

 

The recoverable amounts of exploration
and evaluation assets, mining interests and plant and equipment are determined using the higher of value in use or fair value less costs
of disposal. Value in use consists of the net present value of future cash flows expected to be derived from the asset in its current
condition based on observable data. The calculations use cash flow projections based on financial budgets approved by management. These
cash flow projections are based on expected recoverable ore reserves, selling prices of metals and operating costs. Fair value less costs
of disposal consists of the expected sale price (the amount that a market participant would pay for the asset) of the asset net of transaction
costs.

 

The Company may use other approaches
in determining the fair value which may include estimates related to (i) dollar value per ounce of mineral reserve/resource; (ii) cash-flow
multiples; (iii) market capitalization of comparable assets; and (iv) comparable sales transactions. Any changes in the quality and quantity
of recoverable ore reserves, expected selling prices and operating costs could materially affect the estimated fair value of mining interests,
which could result in material write-downs or write-offs in the future.

 

     25

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

5. Critical
accounting estimates and judgements (continued)

 

Critical accounting
estimates and assumptions (continued)

 

Impairment of goodwill

 

The Company performs goodwill impairment
tests on an annual basis as at December 31 of each year. In addition, the Company assesses for indicators of impairment at each reporting
date and, if an indicator of impairment is identified, goodwill is tested for impairment at that time. For the purpose of impairment
testing, goodwill is allocated to each CGU or group of CGUs expected to benefit from the synergies of the combination. When completing
an impairment test, the Company calculates the estimated recoverable amount of CGU or group of CGUs, which requires management to make
estimates and assumptions with respect to items such as future production levels, long-term commodity prices, foreign exchange rates,
discount rates and exploration potential.

 

These estimates and assumptions are
subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will have an impact on these projections,
which may impact the recoverable amount of the CGU or group of CGUs. Accordingly, it is possible that some or the entire carrying amount
of the goodwill may be further impaired with the impact recognized in the consolidated statement of income (loss).

 

The Company performs annual impairment
tests using the fair value less cost of disposal of the group of CGUs supporting the goodwill and using discounted cash flows with the
most recent budgets and forecasts available, including information from external sources. The periods to be used for the projections
are based on the expected production from the mines, the proven and probable mineral reserves and a portion of the resources. The discount
rate to be used takes into consideration the different risk factors of the Company.

 

Provision for environmental
rehabilitation

 

Provision for environmental rehabilitation
is based on management best estimates and assumptions, which management believes are a reasonable basis upon which to estimate the future
liability, based on the current economic environment. These estimates take into account any material changes to the assumptions that
occur when reviewed regularly by management and are based on current regulatory requirements. Significant changes in estimates of discount
rate, contamination, rehabilitation standards and techniques will result in changes to the provision from period to period. Actual reclamation
and closure costs will ultimately depend on future market prices for the costs which will reflect the market condition at the time the
costs are actually incurred. The final cost of the rehabilitation provision may be higher or lower than currently provided for.

 

Critical judgements
in applying the Company's accounting policies

 

Business combinations

 

The assessment of whether an acquisition
meets the definition of a business, or whether assets are acquired is an area of key judgement. The assumptions and estimates with respect
to determining the fair value of assets acquired and liabilities assumed, and of royalty, stream and other interests and exploration
and evaluation properties in particular, generally requires a high degree of judgement. Changes in the judgements made could impact the
amounts assigned to assets and liabilities.

 

Investee - significant
influence

 

The assessment of whether the Company
has a significant influence over an investee requires the use of judgements when assessing factors that could give rise to a significant
influence. Factors which could lead to the conclusion of having a significant influence over an investee include, but are not limited
to, ownership percentage; representation on the board of directors; participation in the policy-making process; material transactions
between the investor and the investee; interchange of managerial personnel; provision of essential technical information; and potential
voting rights.

 

Changes in the judgements used in
determining if the Company has a significant influence over an investee would impact the accounting treatment of the investment in the
investee.

 

     26

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

5. Critical
accounting estimates and judgements (continued)

 

Critical judgements in applying
the Company's accounting policies (continued)

 

Impairment of investments in associates

 

The Company follows the guidance of
IAS 28 Investments in Associates and Joint Ventures to assess whether there are impairment indicators which may lead to the recognition
of an impairment loss with respect to its net investment in an associate. This determination requires significant judgement in evaluating
if a decline in fair value is significant or prolonged, which triggers a formal impairment test. In making this judgement, the Company's
management evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its carrying
amount, the volatility of the investment and the financial health and business outlook for the investee, including factors such as the
current and expected status of the investee's exploration projects and changes in financing cash flows.

 

Impairment of exploration and evaluation
assets and royalty, stream and other interests on exploration and evaluation properties

 

Assessment of impairment of exploration
and evaluation assets (including exploration and evaluation assets under a farm-out agreement) and royalty, stream and other interests
on exploration and evaluation properties requires the use of judgements when assessing whether there are any indicators that could give
rise to the requirement to conduct a formal impairment test on the Company's exploration and evaluation assets and royalty, stream and
other interests on exploration and evaluation properties. Factors which could trigger an impairment review include, but are not limited
to, an expiry of the right to explore in the specific area during the period or will expire in the near future and is not expected to
be renewed; substantive exploration and evaluation expenditures in a specific area, taking into consideration such expenditures to be
incurred by a farmee, is neither budgeted nor planned; exploration for and evaluation of mineral resources in a specific area have not
led to the discovery of commercially viable quantities of mineral resources and the Company has decided to discontinue such activities
in the specific area; sufficient data exists to indicate that, although a development in a specific area is likely to proceed, the carrying
amount of the assets is unlikely to be recovered in full from successful development or by sale; significant negative industry or economic
trends; interruptions in exploration and evaluation activities by the Company or its farmee; and a significant change in current or forecast
commodity prices.

 

Changes in the judgements used in
determining the fair value of the exploration and evaluation assets and royalty, stream and other interests on exploration and evaluation
properties could impact the impairment analysis.

 

Impairment of development
and producing royalty, stream and other interests and goodwill

 

Assessment of impairment of development
and producing royalty, stream and other interests and goodwill requires the use of judgement when assessing whether there are any indicators
that could give rise to the requirement to conduct a formal impairment test on the Company's development and producing royalty, stream
and other interests or goodwill. Factors which could trigger an impairment review include, but are not limited to, a significant market
value decline; net assets higher than the market capitalization; a significant change in mineral reserve and resources; significant negative
industry or economic trends; interruptions in production activities; significantly lower production than expected; and a significant
change in current or forecast commodity prices.

 

Changes in the judgements used in
determining the fair value of the producing royalty, stream and other interests or goodwill could impact the impairment analysis.

 

Deferred income tax assets

 

Management continually evaluates the
likelihood that it is probable that its deferred tax assets will be realized. This requires management to assess whether it is probable
that sufficient taxable income will exist in the future to utilize these losses within the carry-forward period. By its nature, this
assessment requires significant judgement.

 

     27

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

6. Spin-out
transaction of the mining activities

 

On November 25, 2020, Osisko completed
the spin-out transaction of its mining activities to Osisko Development through a reverse take-over transaction with Barolo Ventures
Corp. ("Barolo"), thus forming a new gold development company in North America, with the objective of becoming a mid-tier gold
producer. Upon closing, Barolo changed its name to Osisko Development Corp.

 

History and description of the transaction

 

On October 5, 2020, Osisko and Barolo
had entered into a binding letter agreement (the "Letter Agreement") outlining the terms upon which Osisko would transfer certain
mining properties (as described below) and a portfolio of marketable securities (together with the mining properties, the "Contributed
Osisko Assets") to Barolo in exchange for common shares of Barolo (the "Barolo Shares"), which would result in a reverse
take-over" of Barolo (the "RTO") under the policies of the TSX-V.

 

The spin-out transaction resulted in,
among other things, Osisko transferring certain mining properties and a portfolio of marketable securities (through the transfer of the
entities that directly or indirectly own such mining properties and marketable securities) to Osisko Development Holdings Inc. ("Osisko
Subco"), following which Osisko Subco and 1269598 BC Ltd. ("Barolo Subco") were amalgamated by way of a triangular amalgamation
under the Business Corporations Act (British Columbia) (the "Amalgamation") to form "Amalco". Upon the Amalgamation,
Osisko exchanged its Osisko Subco shares for ODV Shares, which resulted in the RTO of Osisko Development.

 

Transaction costs related to the RTO
transaction amounted to approximately $1.3 million and are included under business development expenses on the consolidated statements
of income (loss).

 

Contributed Osisko Assets

 

The following assets were transferred
by Osisko to Osisko Development:

 

- Cariboo
gold project (British Columbia, Canada)

- San
Antonio gold project (Sonora, Mexico)

- Bonanza
Ledge II gold project (British Columbia, Canada)

- Guerrero
exploration properties (Guerrero, Mexico)

- James
Bay exploration properties, including the Coulon property (Québec, Canada)

- Portfolio
of publicly-listed equity positions

 

Osisko retained the following royalty
or stream interests in the assets transferred to Osisko Development:

 

- 5%
NSR royalty on the Cariboo gold project and Bonanza Ledge II gold project

- 15%
gold and silver stream on the San Antonio gold project

- 3%
NSR royalty on the James Bay and Guerrero exploration properties

 

Osisko was also granted the following
rights in Osisko Development: (i) a right of first refusal on all future royalties and streams to be offered by Osisko Development; (ii)
a right to participate in buybacks of existing royalties held by Osisko Development; and (iii) other rights customary with a transaction
of this nature.

 

     28

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

6. Spin-out
transaction of the mining activities (continued)

 

Deemed acquisition of Barolo

 

The net assets of Barolo acquired were
recorded at their estimated relative fair market value at the date of closing of the RTO and are summarized below:

 

	Deemed consideration paid for the deemed acquisition of Barolo	 	$	 	 
	 	 	 	 	 
	233,395 common shares of Osisko Development
    deemed issued (i)	 	 	1,751	 
	Transaction fees	 	 	500	 
	 	 	 	2,251	 
	 	 	 	 	 
	Net liabilities deemed assumed	 	 	 	 
	 	 	 	 	 
	Net liabilities of Barolo	 	 	(164	)
	Net cost of listing	 	 	2,415	 

 

(i) Represents
the deemed listing fees of Osisko Development.

 

Financings of Osisko Development

 

RTO Financing

 

On November 25, 2020, prior to the
effective time of the Amalgamation, upon satisfaction of the escrow release conditions, a total of 13,350,000 subscription receipts of
Osisko Subco were issued at a price of $7.50 per subscription receipt under a $100.1 million concurrent financing closed by Osisko Subco
on October 29, 2020 (the "RTO Financing"), were converted into 13,350,000 common shares of Osisko Subco and 6,675,000 common
share purchase warrants of Osisko Subco, and the net subscription proceeds were released from escrow and paid to Osisko Subco.

 

Each common share purchase warrant
of Osisko Subco outstanding, immediately prior to the effective time of the Amalgamation, was exchanged for one common share purchase
warrant of Osisko Development, with each common share purchase warrant of Osisko Development entitling the holder to acquire one ODV
Share at a price of $10 per share for a period of 18 months from the effective date of the Amalgamation (which was subsequently extended
to 36 months from the date of closing). Transaction costs amounted to $3.0 million, including the Underwriters' commission.

 

Following completion of the Amalgamation
and RTO Financing, Osisko held beneficial ownership and control over 100,000,100 Osisko Development shares, representing approximately
88.0% of the issued and outstanding Osisko Development shares.

 

Brokered private placement

 

On December 30, 2020, Osisko Development
closed a brokered private placement of 5,367,050 units (the "Brokered Private Placement Units") at a price of $7.50 per Brokered
Private Placement Unit for aggregate gross proceeds of approximately $40.2 million, including the exercise in full of the underwriters'
option (the "Brokered Private Placement"). Each Brokered Private Placement Unit consists of one common share of Osisko Development
and one-half of one common share purchase warrant of Osisko Development, with each whole warrant entitling the holder thereof to acquire
one common share of Osisko Development at a price of $10.00 per share on or prior to December 1, 2023. The net proceeds of the Brokered
Private Placement will be used to further develop the Cariboo gold project and other exploration assets of Osisko Development, and for
general corporate purposes. Transaction costs amounted to $2.1 million, including the Underwriters' commission.

 

Following completion of the Brokered
Private Placement, Osisko continued to hold beneficial ownership and control over 100,000,100 Osisko Development shares, representing
approximately 84.1% of the issued and outstanding Osisko Development shares.

 

     29

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

7. Acquisition
of the San Antonio gold project

 

In August 2020, Osisko acquired the
San Antonio gold project in the state of Sonora in Mexico for US$42.0 million through the (indirect) acquisition of Sapuchi Minera S.
de R.L. de C.V. An amount of US$30.0 million was paid in cash by Osisko and the remaining US$12.0 million was paid through the issuance
of common shares of Osisko. A total of 1,011,374 Osisko common shares were issued and valued at $15.8 million, based on the closing price
of the Company's common shares on the transaction date. Transaction costs amounted to $5.9 million. The San Antonio gold project was
subsequently transferred to Osisko Development as part of the RTO transaction (Note 6).

 

In accordance with IFRS 3 Business
Combinations, the transaction has been recorded as an acquisition of assets as the acquired assets and assumed liabilities did not
meet the definition of a business.

 

The total purchase price of $68.1 million
was allocated to the assets acquired and the liabilities assumed based on the relative fair value at the closing date of the transaction.
All financial assets acquired and financial liabilities assumed were recorded at fair value.

 

The purchase price was calculated as
follows:

 

	Consideration paid	 	$	 	 
	Issuance of 1,011,374 common shares	 	 	15,846	 
	Cash consideration	 	 	40,015	 
	Value-added tax paid on acquisition of assets	 	 	6,328	 
	Osisko's transaction costs	 	 	5,865	 
	 	 	 	68,054	 
	 	 	 	 	 
	Net assets acquired	 	$

	 	 
	Inventories	 	 	7,899	 
	Inventories - non-current (1)	 	 	16,129	 
	Other non-current assets	 	 	6,328	 
	Mining interests and plant and equipment	 	 	58,368	 
	Accounts payable and accrued liabilities	 	 	(11,369)	 
	Provision and other liabilities	 	 	(9,301)	 
	 	 	 	68,054	 

 

(1) The
inventory balance associated with the ore that was not expected to be processed within 12 months of the acquisition date was classified
as non-current and was recorded in the other assets line item on the consolidated balance sheet.

 

     30

     

    

  

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

8. Cash

 

As at December 31, 2021 and 2020,
the consolidated cash position was as follows:

 

	 	 	Osisko
    Gold Royalties (i)	 	 	Osisko
    Development (ii)	 	 	Total	 
	 	 	2021	 	 	2020	 	 	2021	 	 	2020	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Cash
    held in Canadian dollars	 	 	40,121	 	 	 	29,714	 	 	 	13,364	 	 	 	137,374	 	 	 	53,485	 	 	 	167,088	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash held
    in U.S. dollars	 	 	33,262	 	 	 	59,208	 	 	 	15,810	 	 	 	47,167	 	 	 	49,072	 	 	 	106,375	 
	Cash
    held in U.S. dollars (Canadian equivalent)	 	 	42,170	 	 	 	75,383	 	 	 	20,043	 	 	 	60,053	 	 	 	62,213	 	 	 	135,436	 
	Total
    cash	 	 	82,291	 	 	 	105,097	 	 	 	33,407	 	 	 	197,427	 	 	 	115,698	 	 	 	302,524	 

 

(i) Excluding
Osisko Development and its subsidiaries.

(ii) Osisko
Development and its subsidiaries.

 

9. Short-term
investments

 

As at December 31, 2020, short-term
investments were comprised of a $3.5 million note receivable from an exploration and development mining company, bearing an interest
rate of 12.0%. The loan was repaid in 2021.

 

10. Amounts
receivable

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Revenues receivable from royalty, stream and other interests	 	 	1,378	 	 	 	1,044	 
	Interest income receivable	 	 	4,655	 	 	 	2,474	 
	Amounts receivable from associates (i)	 	 	743	 	 	 	813	 
	Sales taxes and exploration tax credits	 	 	7,358	 	 	 	7,224	 
	Other receivables	 	 	557	 	 	 	1,339	 
	 	 	 	14,691	 	 	 	12,894	 

 

(i) Amounts
receivable from associates are mainly related to professional services and office rent.

 

     31

     

    

 

 

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

11. Inventories
and other assets

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Current	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Ore in stockpiles (i), (ii), (iii)	 	 	4,194	 	 	 	8,426	 
	Gold-in-circuit and doré bars (i), (ii),
    (iii)	 	 	9,751	 	 	 	-	 
	Supplies and others (i)	 	 	4,651	 	 	 	1,599	 
	Total current inventories	 	 	18,596	 	 	 	10,025	 
	 	 	 	 	 	 	 	 	 
	Prepaid expenses and deposits	 	 	3,941	 	 	 	6,244	 
	Total current other assets	 	 	22,537	 	 	 	16,269	 
	 	 	 	 	 	 	 	 	 
	Non-current	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Ore in stockpiles (i), (ii)	 	 	-	 	 	 	17,279	 
	Sales taxes (iv)	 	 	11,632	 	 	 	6,775	 
	Deposits (reclamation and equipment)	 	 	4,619	 	 	 	599	 
	Deferred financing fees	 	 	1,786	 	 	 	1,167	 
	Total non-current other assets	 	 	18,037	 	 	 	25,820	 

 

		(i)	Inventories are held
                                            by subsidiaries of Osisko Development and are related to the Bonanza Ledge Phase 2 and San
                                            Antonio projects.
		(ii)	The inventory balance
                                            associated with the ore that is not expected to be processed within 12 months was classified
                                            as non-current and recorded under other assets on the consolidated balance sheet as
                                            at December 31, 2020. During the year ended December 31, 2021, the Company recorded an impairment
                                            charge of $21.2 million on the ore in stockpiles for the San Antonio exploration and development
                                            project to reduce its net book value to its net realizable value, following an increase in
                                            the expected processing and transportation costs and a decrease in the gold price.
		(iii)	As at December 31,
                                            2021, the ore in stockpiles and the gold-in-circuit and doré bars inventories were
                                            recorded at their net realizable value.
		(iv)	The non-current sales
                                            taxes are related to value added tax in Mexico, for which the collection period is over one
                                            year.

 

     32

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

12. Investments in associates

 

	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Balance - January 1	 	 	119,219	 	 	 	103,640	 
	Acquisitions (i)	 	 	2,366	 	 	 	14,954	 
	Exercise of warrants	 	 	1,437	 	 	 	36	 
	Share of loss	 	 	(3,950	)	 	 	(7,657	)
	Share of other comprehensive income (loss)	 	 	(1,665	)	 	 	1,506	 
	Net gain on ownership dilution (i)	 	 	1,847	 	 	 	10,381	 
	Gain on deemed disposals (ii)	 	 	-	 	 	 	5,357	 
	Transfers to other investments (ii)	 	 	-	 	 	 	(8,998	)
	Deemed issuance
    of Osisko common shares held by an associate (iii)	 	 	6,100	 	 	 	-	 
	Balance - December 31	 	 	125,354	 	 	 	119,219	 

 

		(i)	In June 2020, Osisko
                                            participated in a private placement completed by Osisko Mining Inc. ("Osisko Mining"),
                                            an associate of the Company, and invested an additional $14.8 million to acquire 4,054,000
                                            units, each unit being comprised of one common share and one-half of one common share purchase
                                            warrants (each full warrant allowing its holder to acquire one common share of Osisko Mining
                                            for $5.25 for a period of 18 months following the closing of the transaction). The acquisition
                                            price was allocated to the investments in associates ($13.6 million) and warrants ($1.2 million).
                                            Following the closing of the private placement, Osisko's interest in Osisko Mining was reduced
                                            at the time from 15.8% to 14.7%. As a result, a gain on ownership dilution of $10.4 million
                                            was recorded under other gains, net on the consolidated statement of income (loss)
                                            for the year ended December 31, 2020.

		(ii)	In 2020, the gain
                                            on deemed disposals is related to investments in associates that were transferred to other
                                            investments as the Company has considered that it has lost its significant influence
                                            over the investees.

		(iii)	Osisko Mining Inc.,
                                            an associate of Osisko, held common shares of Barkerville Gold Mines Limited ("Barkerville")
                                            prior to its acquisition by Osisko in 2019. Following the acquisition of Barkerville, Osisko
                                            Mining received common shares of Osisko, which resulted in a deemed repurchase of common
                                            shares by the Company and a related reduction in the net investment in Osisko Mining, based
                                            on the ownership interest held in Osisko Mining. During the year ended December 31, 2021,
                                            Osisko Mining disposed of its shares of Osisko, which resulted in a deemed issuance of common
                                            shares by the Company and an increase in the net investment in Osisko Mining.

 

Material investment

 

Osisko Mining Inc.

 

Osisko Mining is a Canadian gold exploration
and development company focused on its Windfall Lake gold project. Osisko holds a 2.0% - 3.0% NSR royalty on the Windfall Lake gold project,
for which an updated positive preliminary economic assessment was released in April 2021, and a 1% NSR royalty on other properties held
by Osisko Mining. The Company invested $14.8 million in Osisko Mining in 2020.

 

As at December 31, 2021, the Company
holds 50,023,569 common shares representing a 14.4% interest in Osisko Mining (14.5% as at December 31, 2020). Based on the fact that
one director of Osisko is also a director of Osisko Mining, and because of other facts and circumstances, the Company concluded that
it exercises significant influence over Osisko Mining and accounts for its investment using the equity method.

 

Osisko Metals Incorporated

 

Osisko Metals Incorporated ("Osisko
Metals") is a Canadian base metal exploration and development company with a focus on zinc mineral assets. The company's flagship
properties are the Pine Point mining camp, located in the Northwest Territories and the Bathurst mining camp, located in northern New
Brunswick. The Company owns a 2.0% NSR royalty on the Pine Point mining camp and a 1% NSR royalty on the Bathurst mining camp.

 

As at December 31, 2021, the Company
holds 31,127,397 common shares representing a 15.4% interest in Osisko Metals (17.4% as at December 31, 2020). Based on the fact that
an officer of Osisko Development is also a director of Osisko Metals, and because of other facts and circumstances, the Company concluded
that it exercises significant influence over Osisko Metals and accounts for its investment using the equity method.

 

     33

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

12. Investments in associates
(continued)

 

Material investments
(continued)

 

The financial information of the individually
material associates is as follows and includes adjustments to the accounting policies of the associates to conform to those of Osisko
(in thousands of dollars):

 

	 	 	 	Osisko
                                            Mining	 	 	 	Osisko
                                            Metals	 
	 	 	 	2021(i)		 	 	2020(i)	 	 	 	2021(i)	 	 	 	2020(i)	 
	 	 	 	$
                                            	 	 	 	$
                                            	 	 	 	$
                                            	 	 	 	$
                                            	 
	Current assets	 	 	185,307	 	 	 	326,563	 	 	 	5,659	 	 	 	1,616	 
	Non-current assets	 	 	664,544	 	 	 	486,492	 	 	 	89,006	 	 	 	91,828	 
	Current liabilities	 	 	31,440	 	 	 	43,482	 	 	 	2,676	 	 	 	3,028	 
	Non-current liabilities	 	 	109,502	 	 	 	79,316	 	 	 	1,607	 	 	 	2,935	 
	Revenues	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Net loss from continuing operations and net loss	 	 	(8,149	)	 	 	(33,337	)	 	 	(4,618	)	 	 	(9,646	)
	Other comprehensive (loss) income	 	 	(10,730	)	 	 	11,609	 	 	 	(36	)	 	 	(9,818	)
	Comprehensive loss	 	 	(18,879	)	 	 	(21,728	)	 	 	(4,654	)	 	 	(19,464	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Carrying value of investment(ii)	 	 	98,885	 	 	 	95,379	 	 	 	13,470	 	 	 	14,204	 
	Fair value of investment(ii)	 	 	190,590	 	 	 	185,087	 	 	 	12,140	 	 	 	13,696	 

 

(i) Information
is for the reconstructed twelve months ended September 30, 2021 and 2020.

(ii) As at
December 31, 2021 and 2020.

 

Investments in immaterial associates

 

The Company has interests in a number
of individually immaterial associates that are accounted for using the equity method. The aggregate financial information on these associates
is as follows:

 

	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Aggregate amount of the Company's share of net loss	 	 	(2,286	)	 	 	(1,981	)
	Aggregate amount of the Company's share of other comprehensive loss	 	 	-	 	 	 	(33	)
	Aggregate carrying value of investments	 	 	12,999	 	 	 	9,636	 
	Aggregate fair value of investments	 	 	45,426	 	 	 	20,951	 

 

     34

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

13. Other investments

 

	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Fair value through profit or loss (warrants and convertible instruments)	 	 	 	 	 	 	 	 
	Balance - January 1	 	 	25,063	 	 	 	1,700	 
	Acquisitions (i)	 	 	17,754	 	 	 	4,782	 
	Exercises	 	 	(1,122	)	 	 	(347	)
	Change in fair value	 	 	6,286	 	 	 	2,387	 
	Amendment of
    a note receivable (ii)	 	 	-	 	 	 	16,541	 
	Balance - December 31	 	 	47,981	 	 	 	25,063	 
	 	 	 	 	 	 	 	 	 
	Fair value through other comprehensive (loss) income (common shares)	 	 	 	 	 	 	 	 
	Balance - January 1	 	 	115,590	 	 	 	57,409	 
	Acquisitions	 	 	18,668	 	 	 	18,602	 
	Exercises of warrants	 	 	600	 	 	 	452	 
	Transfer from associates (Note 12)	 	 	-	 	 	 	8,998	 
	Change in fair value	 	 	7,303	 	 	 	40,993	 
	Disposals	 	 	(47,930	)	 	 	(10,864	)
	Balance - December 31	 	 	94,231	 	 	 	115,590	 
	 	 	 	 	 	 	 	 	 
	Amortized cost (notes)	 	 	 	 	 	 	 	 
	Balance - January 1	 	 	16,861	 	 	 	8,777	 
	Acquisitions	 	 	14,961	 	 	 	7,998	 
	Repayment	 	 	(3,007	)	 	 	-	 
	Transfer from short-term investments	 	 	-	 	 	 	8,467	 
	Impairments	 	 	(2,112	)	 	 	(7,998	)
	Foreign exchange revaluation impact	 	 	95	 	 	 	(383	)
	Balance - December 31	 	 	26,798	 	 	 	16,861	 
	Total	 	 	169,010	 	 	 	157,514	 

 

(i) In 2021,
acquisitions include an investment of $5.0 million in class A restricted voting units of Osisko Green Acquisition Limited, a newly-organized
special purpose acquisition corporation, and a US$5.0 million ($6.4 million) convertible loan made by Osisko Development to IG Tintic
LLC (Note 34).

(ii) In
November 2020, a $15.9 million secured senior loan with Falco was amended to become convertible after the first anniversary of its execution
date into common shares of Falco at a conversion price of $0.55 per share, subject to standard anti-dilution protections. The convertible
debenture continues to bear interest at a rate of 7.0% per annum compounded quarterly and has a maturity date of December 31, 2022. The
accrued interest receivable of $1.7 million on the loan prior to its conversion was capitalized to the capital of the note. In addition,
Falco issued to Osisko 10,664,324 warrants of Falco, each exercisable for one common share of Falco at an exercise price of $0.69 for
a period of 24 months from their date of issuance. The fair value of the warrants was evaluated at $1.1 million using the Black-Scholes
model.

 

Other investments comprise common shares,
warrants, convertible and non-convertible debentures and notes receivable, mostly from Canadian publicly traded companies as well as
loan receivables from two private companies, which own the Renard diamond mine and the Amulsar gold project (the loans related to the
Amulsar gold project were fully impaired), and one convertible note from a foreign private company (Note 34).

 

     35

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

14. Royalty, stream and other interests

 

	 	 	Year ended	 
	 	December
                                           31, 2021	 
	 	 	Royalty	 	 	Stream	 	 	Offtake	 	 	 	 
	 	 	interests	 	 	interests	 	 	interests	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Balance - January 1	 	 	656,661	 	 	 	440,941	 	 	 	18,526	 	 	 	1,116,128	 
	Additions	 	 	77,702	 	 	 	13,234	 	 	 	-	 	 	 	90,936	 
	Conversion of an offtake into a stream	 	 	-	 	 	 	4,682	 	 	 	(4,682	)	 	 	-	 
	Depletion	 	 	(28,958	)	 	 	(19,403	)	 	 	-	 	 	 	(48,361	)
	Impairment	 	 	(2,288	)	 	 	-	 	 	 	-	 	 	 	(2,288	)
	Translation adjustments	 	 	(4	)	 	 	(1,422	)	 	 	(188	)	 	 	(1,614	)
	Balance - December 31	 	 	703,113	 	 	 	438,032	 	 	 	13,656	 	 	 	1,154,801	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Producing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	626,345	 	 	 	518,934	 	 	 	-	 	 	 	1,145,279	 
	Accumulated depletion and impairment	 	 	(395,874	)	 	 	(210,884	)	 	 	-	 	 	 	(606,758	)
	Net book value - December 31	 	 	230,471	 	 	 	308,050	 	 	 	-	 	 	 	538,521	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	226,438	 	 	 	181,209	 	 	 	31,120	 	 	 	438,767	 
	Accumulated depletion and impairment	 	 	(572	)	 	 	(51,227	)	 	 	(26,424	)	 	 	(78,223	)
	Net book value - December 31	 	 	225,866	 	 	 	129,982	 	 	 	4,696	 	 	 	360,544	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Exploration and evaluation	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	247,680	 	 	 	-	 	 	 	8,960	 	 	 	256,640	 
	Accumulated depletion	 	 	(904	)	 	 	-	 	 	 	-	 	 	 	(904	)
	Net book value - December 31	 	 	246,776	 	 	 	-	 	 	 	8,960	 	 	 	255,736	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net book value - December 31	 	 	703,113	 	 	 	438,032	 	 	 	13,656	 	 	 	1,154,801	 

 

Main acquisitions - 2021

 

In April 2021, the Company acquired
six royalties and one precious metals offtake, from two private sellers, for total cash consideration of US$26.0 million ($32.6 million).
Four of the royalties are on claims overlying the Spring Valley project, located in United States of America, and increased the Company's
current NSR royalty on Spring Valley from 0.5% to between 2.5% - 3.0% (sliding scale royalty percentages as long as gold prices are above
US$700 per ounce). Immediately to the north of Spring Valley lies the Moonlight exploration property, where Osisko also acquired a 1.0%
NSR royalty. Osisko also acquired a 0.5% NSR royalty and a 30% gold and silver offtake right covering the Almaden project in western
Idaho.

 

In July 2021, the Company entered
into a royalty transfer agreement with Sailfish Royalty Corp. ("Sailfish") pursuant to which Osisko purchased a 2.75% NSR royalty
on the Tocantinzinho gold project ("Tocantinzinho"), located in Brazil, and operated by G Mining Ventures Corp. for cash consideration
of US$10 million ($12.6 million). The operator of Tocantinzinho has a one-time buy-down option in relation to the royalty. At the time
of project construction the operator may make a payment of US$5.5 million to reduce the royalty percentage by 2% resulting in a royalty
of 0.75%. Pursuant to a pre-existing agreement entered into by Sailfish, the buy-down payment is payable to the original royalty owners.
In November 2021, the operator has early exercised the first 1% of the buy-down, therefore reducing the effective NSR royalty to 1.75%.

 

In August 2021, the Company made
an advance payment of $10.0 million under its silver stream agreement with Falco Resources Ltd., an associate. The payment corresponds
to half of the $20.0 million second installment payment, which was payable at the receipt of all necessary material third-party approvals,
licenses, rights of way and surface rights on the Horne 5 property, located in Canada.

 

In October 2021, Osisko acquired
from Barrick TZ Limited, a subsidiary of Barrick Gold Corporation ("Barrick"), royalties for total cash consideration of US$11.8
million, including a 2% NSR royalty on the AfriOre and Gold Rim licenses comprising the West Kenya project operated by Shanta Gold Limited,
a 1% NSR royalty on the Frontier project operated by Metalor SA, a private company, and a 1% NSR royalty on the Central Houndé
project operated by Thor Explorations Ltd.

 

     36

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

14. Royalty, stream
and other interests (continued)

 

Conversion of the Parral offtake
to a gold and silver stream

 

In April 2021, GoGold Resources Inc.
("GoGold") and Osisko Bermuda Limited ("Osisko Bermuda"), a subsidiary of Osisko, entered into an agreement to convert
the current gold and silver offtake into a gold and silver stream. Under the stream, Osisko Bermuda started receiving, effective April
29, 2021, 2.4% of the gold and silver produced from tailings piles currently owned or acquired by GoGold, with a transfer price of 30%
of the gold and silver spot prices. Osisko has currently no other offtake agreement in production.

 

	 	 	Year ended	 
	 	 	December 31, 2020	 
	 	 	Royalty	 	 	Stream	 	 	Offtake	 	 	 	 
	 	 	interests	 	 	interests	 	 	interests	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Balance - January 1	 	 	627,567	 	 	 	483,164	 	 	 	19,781	 	 	 	1,130,512	 
	Additions	 	 	54,276	 	 	 	11,917	 	 	 	-	 	 	 	66,193	 
	Disposal	 	 	(357	)	 	 	-	 	 	 	-	 	 	 	(357	)
	Depletion	 	 	(23,159	)	 	 	(21,532	)	 	 	(914	)	 	 	(45,605	)
	Impairment	 	 	-	 	 	 	(26,300	)	 	 	-	 	 	 	(26,300	)
	Translation adjustments	 	 	(1,666	)	 	 	(6,308	)	 	 	(341	)	 	 	(8,315	)
	Balance - December 31	 	 	656,661	 	 	 	440,941	 	 	 	18,526	 	 	 	1,116,128	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Producing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	621,503	 	 	 	512,019	 	 	 	18,422	 	 	 	1,151,944	 
	Accumulated depletion and impairment	 	 	(367,232	)	 	 	(188,281	)	 	 	(13,609	)	 	 	(569,122	)
	Net book value - December 31	 	 	254,271	 	 	 	323,738	 	 	 	4,813	 	 	 	582,822	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Development	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	185,170	 	 	 	168,648	 	 	 	31,252	 	 	 	385,070	 
	Accumulated depletion and impairment	 	 	(501	)	 	 	(51,445	)	 	 	(26,537	)	 	 	(78,483	)
	Net book value - December 31	 	 	184,669	 	 	 	117,203	 	 	 	4,715	 	 	 	306,587	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Exploration and evaluation	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	218,395	 	 	 	-	 	 	 	8,998	 	 	 	227,393	 
	Accumulated depletion	 	 	(674	)	 	 	-	 	 	 	-	 	 	 	(674	)
	Net book value - December 31	 	 	217,721	 	 	 	-	 	 	 	8,998	 	 	 	226,719	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total net book value - December 31	 	 	656,661	 	 	 	440,941	 	 	 	18,526	 	 	 	1,116,128	 

 

Main acquisitions - 2020

 

In April 2020, the Company announced
an amendment to its silver stream with respect to the Gibraltar copper mine, located in British Columbia, Canada, which is operated by
a wholly-owned subsidiary of Taseko Mines Limited ("Taseko"). Osisko and Taseko have amended the silver stream by reducing
the price paid by Osisko for each ounce of refined silver from US$2.75 to nil in exchange for cash consideration of $8.5 million to Taseko.

 

In August 2020, the Company announced
a definitive agreement with Caisse de dépôt et placement du Québec to acquire the outstanding 15% ownership in a
portfolio of Canadian precious metals royalties for cash consideration of $12.5 million. The 15% interest represents the remaining portion
of the portfolio of royalties purchased from Teck Resources Ltd. in October 2015, including the NSR royalties on the Island Gold and
Lamaque mines.

 

     37

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

14. Royalty, stream
and other interests (continued)

 

Main acquisitions - 2020 (continued)

 

In October 2020, Osisko announced
a strategic partnership whereby Regulus Resources Inc. ("Regulus") has agreed to grant certain rights to Osisko in exchange
for an upfront cash payment (the "Upfront Payment") of US$12.5 million ($16.4 million). These rights include the right to acquire
royalties to be acquired by Regulus and a right of first refusal on all future royalty or stream transactions in relation to claims of
the AntaKori project where Regulus has 100% ownership or any additional claims Regulus might acquire with 100% ownership within a certain
area. As a significant initial transaction under the partnership, Regulus has acquired a royalty on the Mina Volare claim of the AntaKori
project which represents a 1.5% or 3% NSR depending on location, from a private vendor. As per its right under the partnership, Osisko
has elected to acquire 50% of the royalty for 75% of Regulus' purchase price with Osisko's acquisition cost for the royalty included
in the Upfront Payment. Regulus has cancelled the remaining 50% of the royalty. As such, the royalty on the Mina Volare claim is now
reduced to 0.75% or 1.5% depending on location, in favour of Osisko.

 

In January 2020 and December 2020,
Osisko acquired a 2% NSR royalty on the Pine Point zinc project held by Osisko Metals, an associate of the Company, for cash consideration
of $13.0 million. Osisko was also granted a right of first offer on any future sales by Osisko Metals of any additional royalties, streams
or similar interests on the Pine Point project.

 

Impairment - 2020

 

Renard mine diamond stream (Stornoway
Diamonds (Canada) Inc.

 

In March 2020, the selling price
of diamonds decreased significantly as a result of the impact of the COVID-19 pandemic on the diamond market. On March 24, 2020, activities
at the Renard diamond mine were suspended and on April 15, 2020, despite the announcement by the Government of Québec to include
mining activities as an essential service, the operator of the Renard diamond mine announced the extension of the care and maintenance
period of its operations due to depressed diamond market conditions. These were considered as indicators of impairment among other facts
and circumstances and, accordingly, management performed an impairment assessment as at March 31, 2020. The Company recorded an impairment
charge of $26.3 million ($19.3 million, net of income taxes) on the Renard diamond stream during the three months ended March 31, 2020.

 

On March 31, 2020, the Renard diamond
stream was written down to its estimated recoverable amount of $40.0 million, which was determined by the value-in-use using discounted
cash-flows approaches and estimated probabilities of different restart scenarios. The main valuation inputs used were the cash flows
expected to be generated by the sale of diamonds from the Renard diamond stream over the estimated life of the Renard diamond mine, based
on expected long-term diamond price per carat, a pre-tax real discount rate of 10.0% and weighted probabilities of different restart
scenarios.

 

A sensitivity analysis was performed
by management for the long-term diamond price, the pre-tax real discount rate and the weighting of the different scenarios. If the long-term
diamond price per carat applied to the cash flow projections had been 10% lower than management's estimates, the Company would have recognized
an additional impairment charge of $4.1 million ($3.0 million, net of income taxes). If the post-tax real discount rate applied to the
cash flow projections had been 100 basis points higher than management's estimates, the Company would have recognized an additional impairment
charge of $1.9 million ($1.4 million, net of income taxes). If the probabilities of the different restart scenarios had been 10% more
negative than management's estimates, the Company would have recognized an additional impairment charge of $5.5 million ($4.0 million,
net of taxes).

 

     38

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

15. Mining interests and plant and equipment

 

	 	2021	 	  2020	 
	 	 	Mining	 	 	Plant and	 	 	 	 	 	Mining	 	 	Plant and	 	 	 	 
	 	 	interests	 	 	equipment
    (i)	 	 	Total	 	 	interests	 	 	equipment
    (i)	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Net book value - January 1	 	 	459,303	 	 	 	30,209	 	 	 	489,512	 	 	 	320,008	 	 	 	23,685	 	 	 	343,693	 
	Acquisition of the San Antonio gold

    project (Note 6)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	57,038	 	 	 	1,330	 	 	 	58,368	 
	Additions	 	 	139,183	 	 	 	58,192	 	 	 	197,375	 	 	 	75,437	 	 	 	10,915	 	 	 	86,352	 
	Impairment	 	 	(58,417	)	 	 	-	 	 	 	(58,417	)	 	 	-	 	 	 	-	 	 	 	-	 
	Mining exploration tax credits	 	 	(1,585	)	 	 	-	 	 	 	(1,585	)	 	 	(4,608	)	 	 	-	 	 	 	(4,608	)
	Change in environmental	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	rehabilitation assets	 	 	19,522	 	 	 	-	 	 	 	19,522	 	 	 	3,414	 	 	 	-	 	 	 	3,414	 
	Depreciation	 	 	-	 	 	 	(7,814	)	 	 	(7,814	)	 	 	-	 	 	 	(5,340	)	 	 	(5,340	)
	Depreciation capitalized	 	 	4,136	 	 	 	-	 	 	 	4,136	 	 	 	4,019	 	 	 	-	 	 	 	4,019	 
	Share-based compensation capitalized	 	 	2,127	 	 	 	-	 	 	 	2,127	 	 	 	688	 	 	 	-	 	 	 	688	 
	Transfers	 	 	(11,221	)	 	 	11,221	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Pre-commercial revenues	 	 	(7,275	)	 	 	-	 	 	 	(7,275	)	 	 	-	 	 	 	-	 	 	 	-	 
	Disposals and others	 	 	-	 	 	 	(213	)	 	 	(213	)	 	 	-	 	 	 	(388	)	 	 	(388	)
	Currency translation adjustments	 	 	(1,820	)	 	 	107	 	 	 	(1,713	)	 	 	3,307	 	 	 	7	 	 	 	3,314	 
	Net book value - December 31	 	 	543,953	 	 	 	91,702	 	 	 	635,655	 	 	 	459,303	 	 	 	30,209	 	 	 	489,512	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Closing balance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost	 	 	602,370	 	 	 	105,112	 	 	 	707,482	 	 	 	459,303	 	 	 	37,545	 	 	 	496,848	 
	Accumulated depreciation	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	and impairment	 	 	(58,417	)	 	 	(13,410	)	 	 	(71,827	)	 	 	-	 	 	 	(7,336	)	 	 	(7,336	)
	Net book value	 	 	543,953	 	 	 	91,702	 	 	 	635,655	 	 	 	459,303	 	 	 	30,209	 	 	 	489,512	 

 

(i) Plant and equipment includes right-of-use
assets of $20.3 million as at December 31, 2021 ($10.8 million as at December 31, 2020).

 

Impairments - 2021

 

Bonanza Ledge Phase 2 Project

 

In March 2021, processing of ore commenced
at the Bonanza Ledge Phase 2 project. As a result of operational challenges incurred during the second quarter for 2021, it was determined
that total capital and production costs related to the Bonanza Ledge Phase 2 project would be higher than originally planned. These factors
were considered indicators of impairment, among other facts and circumstances and, accordingly, management performed an impairment assessment
as at June 30, 2021. As a result of the impairment assessment, the Company recorded an impairment charge of $36.1 million on the Bonanza
Ledge Phase 2 project during the three months ended June 30, 2021.

 

On June 30, 2021, the Bonanza Ledge
Phase 2 project was written down to its estimated recoverable amount of $12.4 million, which was determined by the value-in-use using
a cash-flows approach. The main valuation inputs used were the cash flows expected to be generated by the sale of gold from the Bonanza
Ledge Phase 2 project over its estimated life of the mine, based on an average gold price per ounce of US$1,797, the average grade of
gold and the average recovery rate for the remaining mine life. No discount rate was used as the project has a short-term remaining mine
life of approximately 18 months.

 

A sensitivity analysis was performed
by management for the gold price, the average grade and the recovery rate (in isolation). If gold price per ounce applied to the cash
flow projections had been 10% lower than management's estimates, the Company would have recognized an additional impairment charge of
$9.3 million. If the average gold grade or gold recovery applied to the cash flows had been 10% lower, the Company would have recognized
an additional impairment charge of $12.4 million.

 

     39

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

15. Mining interests
and plant and equipment (continued)

 

Impairments - 2021 (continued)

 

Bonanza Ledge Phase 2 Project
(continued)

 

Due to continuing operational challenges,
it was determined that total capital and production costs related to the Bonanza Ledge Phase 2 project would be higher than the total
revenues expected to be generated for the remaining life of the project. These factors were considered indicators of impairment, among
other facts and circumstances and, accordingly, management performed an impairment assessment as at September 30, 2021. As a result of
the impairment assessment, the Company recorded an impairment charge of $22.4 million on the Bonanza Ledge Phase 2 project during the
three months ended September 30, 2021.

 

On September 30, 2021, the net book
value of the Bonanza Ledge Phase 2 project was written down to zero as it was estimated that the net book value will not be recovered
by the expected net profits to be generated from the sale of precious metals. The recoverable amount was determined by the value-in-use
using a cash-flows approach. The main valuation inputs used were the cash flows expected to be generated by the sale of gold from the
Bonanza Ledge Phase 2 project over its estimated life of the mine, based on an average gold price per ounce of US$1,787, the average
grade of gold and the average recovery rate for the remaining mine life. No discount rate was used as the project has a short-term remaining
mine life of approximately 18 months. The project value is maintained at zero and any excess operating expenses over revenues are recorded
under mining operating expenses on the statements of income (loss).

 

16. Exploration and
evaluation

 

	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Net book value - January 1	 	 	42,519	 	 	 	42,949	 
	Additions	 	 	3,784	 	 	 	201	 
	Impairment	 	 	(42,668	)	 	 	-	 
	Transfer to royalty, stream and other interests	 	 	-	 	 	 	(631	)
	Net book value - December 31	 	 	3,635	 	 	 	42,519	 
	 	 	 	 	 	 	 	 	 
	Closing balance	 	 	 	 	 	 	 	 
	Cost	 	 	104,492	 	 	 	100,708	 
	Accumulated impairments	 	 	(100,857	)	 	 	(58,189	)
	Net book value	 	 	3,635	 	 	 	42,519	 

 

Impairment

 

In 2021, the Company incurred an
impairment charge of $42.7 million ($34.6 million, net of income taxes) on exploration and evaluation properties, including the James
Bay properties and the Coulon zinc project in Canada. The Company has determined that further exploration and evaluation expenditures
are no longer planned in the near term on these properties and that the carrying amount of these assets is unlikely to be recovered from
a sale of these properties at the current time. As a result, these properties were written down to zero on December 31, 2021.

 

     40

     

    

 

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

17. Goodwill

 

The Company's goodwill is allocated
to a group of cash generating units: the Éléonore NSR royalty and the Canadian Malartic NSR royalty ("CGUs").

 

The Company tests whether goodwill
has suffered any impairment on an annual basis. The recoverable amount of the CGUs is determined based on the fair value less costs of
disposal calculations using a discounted cash-flows approach, which require the use of assumptions and unobservable inputs, and therefore
is classified as level 3 of the fair value hierarchy. The calculations use cash flow projections expected to be generated by the sale
of gold and silver received from the CGUs based on annual gold and silver production over their estimated life from publicly released
technical information by the operators to predict future performance.

 

The following table sets out the
key assumptions for the CGUs in addition to annual gold and silver production over the estimated life of the Éléonore and
Canadian Malartic mines:

 

	 	 	2021	 	 	2020	 
	Long-term gold price (per ounce)	 	US$	1,600	 	 	US$	1,600	 
	Long-term silver price (per ounce)	 	US$	21	 	 	US$	20	 
	Post-tax real discount rate	 	4.3	%	 	3.5	%

 

Management has determined the values
assigned to each of the above key assumptions as follows:

 

	Assumption	Approach used to determine values
	Long-term gold price	Based on current gold market trends consistent with external sources of information, such as long-term
    gold price consensus.
	 	 
	Long-term silver price	Based on current silver market trends consistent with external sources of information, such as
    long-term silver price consensus.
	 	 
	Post-tax real discount rate	Reflects specific risks relating to gold mines operating in Québec, Canada.

 

The Company's management has considered
and assessed reasonably possible changes for key assumptions and has not identified any instances that could cause the carrying amount
of the CGUs to exceed their recoverable amounts.

 

     41

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

18. Accounts payable and accrued liabilities

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Trade payables	 	 	9,678	 	 	 	12,771	 
	Other payables	 	 	13,568	 	 	 	19,093	 
	Accrued interests on long-term debt	 	 	142	 	 	 	166	 
	Income taxes payable	 	 	-	 	 	 	6,055	 
	Other accrued liabilities	 	 	6,661	 	 	 	8,804	 
	 	 	 	30,049	 	 	 	46,889	 

 

19. Provisions and other liabilities

 

	 	 	Year ended	 	 	Year ended	 
	 	 	December 31, 2021	 	 	December 31, 2020	 
	 	 	 	 	 	 	 	 	Deferred	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	premium on	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Environmental	 	 	Lease	 	 	flow-through	 	 	 	 	 	Environmental	 	 	Lease	 	 	 	 
	 	 	rehabilitation(i)	 	 	liabilities(ii)	 	 	shares
    (iii)	 	 	Total	 	 	Rehabilitation(i)	 	 	liabilities(ii)	 	 	Total	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Balance - Beginning of period	 	 	34,601	 	 	 	11,366	 	 	 	-	 	 	 	45,967	 	 	 	20,527	 	 	 	10,127	 	 	 	30,654	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acquisition of the San Antonio gold project
    (Note 7)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	9,301	 	 	 	-	 	 	 	9,301	 
	New liabilities	 	 	20,433	 	 	 	13,578	 	 	 	-	 	 	 	34,011	 	 	 	4,176	 	 	 	2,394	 	 	 	6,570	 
	Revision of estimates	 	 	(1,457	)	 	 	-	 	 	 	-	 	 	 	(1,457	)	 	 	(310	)	 	 	-	 	 	 	(310	)
	Accretion	 	 	1,192	 	 	 	-	 	 	 	-	 	 	 	1,192	 	 	 	820	 	 	 	-	 	 	 	820	 
	Settlement/payments of liabilities	 	 	(1,240	)	 	 	(6,582	)	 	 	-	 	 	 	(7,822	)	 	 	(500	)	 	 	(1,155	)	 	 	(1,655	)
	Issuance of flow-through shares	 	 	-	 	 	 	-	 	 	 	7,885	 	 	 	7,885	 	 	 	-	 	 	 	-	 	 	 	-	 
	Recognition of deferred premium on flow-through shares	 	 	-	 	 	 	-	 	 	 	(6,971	)	 	 	(6,971	)	 	 	-	 	 	 	-	 	 	 	-	 
	Currency translation adjustments	 	 	(292	)	 	 	-	 	 	 	-	 	 	 	(292	)	 	 	587	 	 	 	-	 	 	 	587	 
	Balance - End of period	 	 	53,237	 	 	 	18,362	 	 	 	914	 	 	 	72,513	 	 	 	34,601	 	 	 	11,366	 	 	 	45,967	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current portion	 	 	2,287	 	 	 	8,978	 	 	 	914	 	 	 	12,179	 	 	 	3,019	 	 	 	1,412	 	 	 	4,431	 
	Non-current portion	 	 	50,950	 	 	 	9,384	 	 	 	-	 	 	 	60,334	 	 	 	31,582	 	 	 	9,954	 	 	 	41,536	 
	 	 	 	53,237	 	 	 	18,362	 	 	 	914	 	 	 	72,513	 	 	 	34,601	 	 	 	11,366	 	 	 	45,967	 

 

(i) The
environmental rehabilitation provision represents the legal and contractual obligations associated with the eventual closure of the Company's
mining interests, plant and equipment and exploration and evaluation assets (mostly for the Cariboo property, Bonanza Ledge Phase 2 project
and San Antonio project). As at December 31, 2021, the estimated inflation-adjusted undiscounted cash flows required to settle the environmental
rehabilitation amounts to $60.5 million. The weighted average actualization rate used is 3.4% and the disbursements are expected to be
made from 2021 to 2030 as per the current closure plans.

 

(ii) The lease liabilities are
mainly related to leases for mining equipment and for office space.

 

(iii) The flow-through shares
issuance by Osisko Development is described in Note 21.

 

     42

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

20. Long-term debt

 

The movements in the long-term
debt are as follows:

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Balance - January 1	 	 	400,429	 	 	 	349,042	 
	Increase in revolving credit facility	 	 	50,000	 	 	 	71,660	 
	Decrease in revolving credit facility	 	 	(50,000	)	 	 	(19,205	)
	Mining equipment financings, net	 	 	3,764	 	 	 	-	 
	Amortization of transaction costs	 	 	2,204	 	 	 	2,238	 
	Accretion expense	 	 	4,308	 	 	 	4,972	 
	Foreign exchange revaluation impact	 	 	(270	)	 	 	(8,278	)
	Balance - December 31	 	 	410,435	 	 	 	400,429	 

 

The summary of the long-term debt is as follows:

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Convertible debentures(i),(ii)	 	 	300,000	 	 	 	350,000	 
	Revolving credit facility(iii)	 	 	113,389	 	 	 	63,659	 
	Mining equipment
    financings(vi)	 	 	3,764	 	 	 	-	 
	Long-term debt	 	 	417,153	 	 	 	413,659	 
	Unamortized debt issuance costs	 	 	(2,291	)	 	 	(4,495	)
	Unamortized accretion on convertible debentures	 	 	(4,427	)	 	 	(8,735	)
	Long-term debt, net of issuance costs	 	 	410,435	 	 	 	400,429	 
	Current portion	 	 	294,891	 	 	 	49,867	 
	Non-current portion	 	 	115,544	 	 	 	350,562	 
	 	 	 	410,435	 	 	 	400,429	 

 

(i) Convertible debenture (2016)

 

In February 2016, the Company issued
a senior non-guaranteed convertible debenture of $50.0 million to Investissement Québec, which was repaid in full on February
12, 2021.

 

(ii) Convertible debentures (2017)

 

In November 2017, the Company closed
a bought-deal offering of convertible senior unsecured debentures (the "Debentures") in an aggregate principal amount of $300.0
million (the "Offering"). The Offering was comprised of a public offering, by way of a short form prospectus, of $184.0 million
aggregate principal amount of Debentures and a private placement offering of $116.0 million aggregate principal amount of Debentures.

 

The Debentures bear interest at a rate
of 4.0% per annum, payable semi-annually on June 30 and December 31 of each year. The Debentures are convertible at the holder's option
into common shares of the Company at a conversion price equal to $22.89 per common share. The Debentures will mature on December 31,
2022 and may be redeemed by Osisko, in certain circumstances. The Debentures are listed for trading on the TSX under the symbol "OR.DB".

 

     43

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

20. Long-term debt (continued)

 

(iii) Revolving credit facility

 

In July 2021, the Company amended
its revolving credit facility (the "Facility") and increased the amount available by $150.0 million to $550.0 million, with
an additional uncommitted accordion of up to $100.0 million (for a total availability of up to $650.0 million). The maturity date of
the Facility was extended to July 30, 2025, which can be extended annually.

 

The annual extension of the Facility
and the uncommitted accordion are subject to acceptance by the lenders. The Facility is to be used for general corporate purposes and
investments in the mineral industry, including the acquisition of royalty, stream and other interests. The Facility is secured by the
Company's assets from the royalty, stream and other interests segment (which exclude the assets held by Osisko Development and its subsidiaries).

 

The Facility is subject to standby
fees. Funds drawn bear interest based on the base rate, prime rate, London Inter-Bank Offer Rate ("LIBOR") or a comparable
or successor rate, plus an applicable margin depending on the Company's leverage ratio. In February 2021, the Company drew $50.0 million
to repay the Investissement Québec convertible debenture. As at December 31, 2021, the Facility was drawn for a total of $113.4
million ($50.0 million and US$50.0 million ($63.4 million)) and the effective interest rate was 2.25%, including the applicable margin.
The Facility includes covenants that require the Company to maintain certain financial ratios, including the Company's leverage ratios
and meet certain non-financial requirements. As at December 31, 2021, all such ratios and requirements were met.

 

(iv) Mining equipment financings

 

In 2021, Osisko Development financed
the acquisition of mining equipment with third parties. The loans are guaranteed by the mining equipment and are payable in monthly installments
over a period of 24 to 48 months.

 

21. Share capital

 

Shares

 

Authorized

 

Unlimited number of common shares,
without par value

Unlimited number of preferred shares,
issuable in series

 

Issued and fully
paid 166,493,597 common shares

 

Year ended December 31, 2021

 

Osisko Development Corp. - Non-brokered
private placement

 

In January 2021, Osisko Development
completed the first tranche of a non-brokered private placement through the issuance of 9,346,464 units of Osisko Development at a price
of $7.50 per unit for aggregate gross proceeds of $68.6 million. Each unit consists of one common share of Osisko Development and one-half
of one common share purchase warrant of Osisko Development, which each whole warrant entitling the holder to acquire one common share
of Osisko Development at a price of $10.00 per share on or prior to December 1, 2023.

 

In February 2021, Osisko Development
completed the second and final tranche of a non-brokered private placement through the issuance of 1,515,731 units of Osisko Development
at a price of $7.50 per unit for aggregate gross proceeds of $11.2 million. Each unit consists of one common share of Osisko Development
and one-half of one common share purchase warrant of Osisko Development, which each whole warrant entitling the holder to acquire one
common share of Osisko Development at a price of $10.00 per share on or prior to December 1, 2023.

 

An amount of $73.9 million from the
non-brokered private placement was received in 2020, which was recorded under shares to be issued on Osisko Development's consolidated
balance sheet at December 31, 2020 (under non-controlling interests on the Company's balance sheet). The share issue expenses
related to the first and second tranches of the private placement amounted to $1.1 million ($0.8 million, net of income taxes).

 

     44

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

21. Share capital (continued)

 

Year ended December 31, 2021 (continued)

 

Osisko Development Corp. - Brokered
private placement of flow-through shares

 

In March 2021, Osisko Development
completed a "bought deal" brokered private placement of 2,055,742 flow-through shares at a price of $9.05 per flow-through
share and 1,334,500 charity flow-through shares at a price of $11.24 per charity flow- through share, for aggregate gross proceeds of
$33.6 million. Share issue expenses related to this private placement amounted to $1.5 million ($1.1 million, net of income taxes). The
shares were issued at a premium to the market price, which was recognized as a current liability under provisions and other liabilities
for $7.9 million (net of share issue costs attributed of $0.5 million). The liability will be reversed and recognized to the consolidated
statement of income (loss) as flow-through premium income as the required expenditures are incurred. Osisko Development is committed
to spending the proceeds on exploration and evaluation activities by December 31, 2022. As at December 31, 2021, the balance remaining
to be spent amounted to $3.9 million.

 

Year ended December 31, 2020

 

Private Placement with Investissement
Québec

 

In April 2020, the Company completed
a private placement of 7,727,273 common shares at a price of $11.00 per common share for total gross proceeds of $85.0 million (the "Private
Placement") with Investissement Québec. The net proceeds from the Private Placement was used for general working capital
purposes.

 

Acquisition of the San Antonio
gold project

 

In August 2020, Osisko acquired the
San Antonio gold project (Note 8) in the state of Sonora in Mexico. As part of the acquisition, a total of 1,011,374 common shares of
Osisko were issued and valued at $15.8 million, based on the closing price of the Company's common shares on the transaction date.

 

Osisko Development Corp. - Bought-deal
private placement

 

Concurrent with the transaction described
in Note 6, Osisko Development had entered into an engagement letter with underwriters pursuant to which the underwriters had agreed to
buy, on a "bought deal" private placement basis, 13,350,000 subscription receipts (the "Subscription Receipts") at
a subscription price of $7.50 per Subscription Receipt (the "Issue Price") for gross proceeds of approximately $100.1 million
(the "Financing"). Each Subscription Receipt entitled the holder thereof to receive, for no additional consideration and without
further action on the part of the holder thereof, on or about the date that the transaction was completed, one common share of Osisko
Development ("Osisko Development Share") and one- half-of-one warrant to purchase an Osisko Development Share (each whole warrant,
a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Osisko Development Share for $10.00 for an 18-month
period following the closing of the transaction (the Warrants maturity date was subsequently extended to December 1, 2023). The Financing
was completed on October 29, 2020 and share issue expenses related to this private placement amounted to $3.6 million ($2.6 million,
net of income taxes).

 

Osisko Development Corp. - Brokered
private placement

 

On December 30, 2020, Osisko Development
completed a brokered private placement through the issuance of 5,367,050 units of the Company at a price of $7.50 per unit for aggregate
gross proceeds of $40.2 million. Each unit consists of one common share of Osisko Development and one-half of one common share purchase
warrant of Osisko Development, which each whole warrant entitling the holder to acquire one common share of Osisko Development at a price
of $10.00 per share on or prior to December 1, 2023. Share issue expenses related to this private placement amounted to $2.1 million
($1.6 million, net of income taxes).

 

Employee Share Purchase Plans

 

The Company established an employee
share purchase plan. Under the terms of the plan, the Company contributes an amount equal to 60% of the eligible employee's contribution
towards the acquisition of common shares from treasury on a quarterly basis. Osisko Development established a similar plan for its employees.

 

     45

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

21. Share
capital (continued)

Shares (continued)

Normal Course Issuer Bid

 

In December 2021, Osisko renewed
its normal course issuer bid ("NCIB") program. Under the terms of the 2021 NCIB program, Osisko may acquire up to 16,530,688
of its common shares from time to time in accordance with the normal course issuer bid procedures of the TSX. Repurchases under the 2021
NCIB program are authorized from December 12, 2021 until December 11, 2022. Daily purchases will be limited to 87,364 common shares,
other than block purchase exemptions, representing 25% of the average daily trading volume of the common shares on the TSX for the six-month
period ending November 30, 2021, being 349,057 Common Shares.

 

Under the terms of the 2020 NCIB
program, Osisko was allowed to acquire up to 14,610,718 of its common shares from time to time, from December 12, 2020 to December 11,
2021. Daily purchases were limited to 138,366 common shares, other than block purchase exemptions, representing 25% of the average daily
trading volume of the common shares on the TSX for the six-month period ending November 30, 2020, being 553,464 common shares.

 

During the year ended December 31,
2021, the Company purchased for cancellation a total of 2,103,366 common shares for $30.8 million (average acquisition price per share
of $14.64). During the year ended December 31, 2020, the Company purchased for cancellation a total of 429,722 common shares for $3.9
million (average acquisition price per share of $9.15).

 

Dividends

 

The following table provides details
on the dividends declared by the Company for the years ended December 31, 2021 and 2020:

 

	 	 	 	 	 	 	 	 	 	 	 	 	Dividend	 
	 	 	Dividend	 	 	 	 	 	 	Dividends	 	 	reinvestment	 
	Declaration date	 	per share	 	 	Record date	 	Payment date	 	payable	 	 	plan(i)	 
	 	 	$	 	 	 	 	 	 	$	 	 	 	 
	February 21, 2021	 	 	0.050	 	 	March 31, 2021	 	April 15, 2021	 	 	8,364,000	 	 	 	8,989,709	 
	May 11, 2021	 	 	0.050	 	 	June 30, 2021	 	July 15, 2021	 	 	8,404,000	 	 	 	7,102,627	 
	August 8, 2021	 	 	0.055	 	 	September 30, 2021	 	October 15, 2021	 	 	9,160,000	 	 	 	8,005,584	 
	November 9, 2021	 	 	0.055	 	 	December 31, 2021	 	January 14, 2022	 	 	9,157,000	 	 	 	7,891,496	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year 2021	 	 	0.210	 	 	 	 	 	 	 	35,085,000	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	February 19, 2020	 	 	0.050	 	 	March 31, 2020	 	April 15, 2020	 	 	7,879,000	 	 	 	24,809,311	 
	May 12, 2020	 	 	0.050	 	 	June 30, 2020	 	July 15, 2020	 	 	8,259,000	 	 	 	27,492,302	 
	August 5, 2020	 	 	0.050	 	 	September 30, 2020	 	October 15, 2020	 	 	8,342,000	 	 	 	9,822,963	 
	November 9, 2020	 	 	0.050	 	 	December 31, 2020	 	January 15, 2021	 	 	8,358,000	 	 	 	11,525,456	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year 2020	 	 	0.200	 	 	 	 	 	 	 	32,838,000	 	 	 	 	 

 

(i) Number of common shares held
by shareholders participating in the dividend reinvestment plan described below.

 

Dividend reinvestment plan

 

The Company has a dividend reinvestment
plan ("DRIP") that allows Canadian and U. S. shareholders to reinvest their cash dividends into additional common shares either
purchased on the open market through the facilities of the TSX or the NYSE, or issued directly from treasury by the Company, or acquired
by a combination thereof. In the case of a treasury issuance, the price will be the weighted average price of the common shares on the
TSX or the NYSE during the five trading days immediately preceding the dividend payment date, less a discount, if any, of up to 5%, at
the Company's sole election.

 

As at December 31, 2021, the holders
of 7,891,496 common shares had elected to participate in the DRIP, representing dividends payable of $0.4 million. During the year ended
December 31, 2021, the Company issued 120,523 common shares under the DRIP, at a discount rate of 3% (268,173 common shares in 2020 at
a discount rate of 3%). On January 14, 2022, 29,929 common shares were issued under the DRIP at a discount rate of 3%.

 

     46

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

21. Share
capital (continued)

Dividends (continued)

Capital management

 

The Company's primary objective when
managing capital is to maximize returns for its shareholders by growing its asset base, both organically through strategic investments
in exploration and development companies and through accretive acquisitions of high-quality royalties, streams and other similar interests,
while ensuring capital protection. The Company defines capital as long-term debt and total equity, including the undrawn portion of the
revolving credit facility. Capital is managed by the Company's management and governed by the Board of Directors.

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Long-term debt	 	 	410,435	 	 	 	400,429	 
	Total equity	 	 	1,780,061	 	 	 	1,841,032	 
	Undrawn revolving credit facility(i)	 	 	436,610	 	 	 	336,340	 
	 	 	 	2,627,106	 	 	 	2,577,801	 

 

(i) Excluding the potential additional
available credit (accordion) of $100.0 million as at December 31, 2021 and 2020 (Note 20).

 

There were no changes in the Company's
approach to capital management during the year ended December 31, 2021, compared to the prior year. The Company is not subject to material
externally imposed capital requirements and is in compliance with all its covenants under its revolving credit facility (Note 20) as
at December 31, 2021.

 

22. Warrants

 

As at December 31, 2021 and December
31, 2020, 5,480,000 warrants were outstanding and entitled the holder to purchase one common share of Osisko at a price of $36.50 until
February 18, 2022. Subsequently to year-end, the warrants expired unexercised.

 

23. Share-based
compensation Share options

 

The Company and its subsidiary, Osisko
Development, offer a share option plan (the "Plans") to their directors, officers, management, employees and consultants. Options
may be granted at an exercise price determined by the respective Board of Directors but shall not be less than the closing market price
of the common shares of the Company on the TSX on the day prior to their grant. No participant shall be granted an option which exceeds
5% of the issued and outstanding shares of the issuer at the time of granting of the option. The number of common shares issued to insiders
of the issuer within one year and issuable to the insiders at any time under the Plans or combined with all other share compensation
arrangements, cannot exceed 8% (10% under Osisko Development's plan) of the issued and outstanding common shares of the related issuer.
The duration and the vesting period are determined by the Board of Directors. However, the expiry date may not exceed 7 years (10 years
under Osisko Development's plan) after the date of granting.

 

     47

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

23. Share-based compensation (continued)

 

Share options (continued)

 

Osisko Gold Royalties Ltd

 

The following table summarizes information about the movement
of the share options outstanding under the Osisko's plan:

 

	 	 	 	 	 	2021	 	 	 	 	 	2020	 
	 	 	 	 	 	Weighted	 	 	 	 	 	Weighted	 
	 	 	Number of	 	 	average	 	 	Number of	 	 	average	 
	 	 	options	 	 	exercise price	 	 	options	 	 	exercise price	 
	 	 	 	 	 	$	 	 	 	 	 	$	 
	Balance - January 1	 	 	4,240,869	 	 	 	14.22	 	 	 	4,939,344	 	 	14.40	 
	Granted (i)	 	 	763,700	 	 	 	13.27	 	 	1,201,100	 	 	13.51	 
	Exercised	 	 	(1,043,903	)	 	 	13.75	 	 	(673,470	)	 	11.27	 
	Forfeited / Cancelled	 	 	(58,866	)	 	 	13.45	 	 	(341,300	)	 	13.61	 
	Expired	 	 	(171,220	)	 	 	16.04	 	 	(884,805	)	 	16.56	 
	Balance - December 31	 	 	3,730,580	 	 	 	14.09	 	 	4,240,869	 	 	14.22	 
	Options exercisable - December 31	 	 	1,881,416	 	 	 	14.78	 	 	2,988,713	 	 	14.96	 

 

(i) Options were granted to
officers, management, employees and/or consultants.

 

The weighted average share price
when share options were exercised during the year ended December 31, 2021 was $16.04 ($14.83 for the year ended December 31, 2020).

 

The following table summarizes the
Osisko's share options outstanding as at December 31, 2021:

 

	 	 	 	 	 	Options outstanding	 	 	Options exercisable	 
	 	 	 	 	 	 	 	 	Weighted	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	average	 	 	 	 	 	 	 
	 	 	 	 	 	Weighted	 	 	remaining	 	 	 	 	 	Weighted	 
	Exercise	 	 	 	 	average	 	 	contractual	 	 	 	 	 	average	 
	price range	 	Number	 	 	exercise price	 	 	life (years)	 	 	Number	 	 	exercise price	 
	$	 	 	 	 	$	 	 	 	 	 	 	 	 	$	 
	10.58 - 12.97	 	 	1,322,057	 	 	 	12.70	 	 	 	3.5	 	 	 	536,757	 	 	 	12.71	 
	13.10 - 14.78	 	 	1,761,193	 	 	 	13.80	 	 	 	2.9	 	 	 	817,729	 	 	 	14.10	 
	15.97 - 18.07	 	 	579,500	 	 	 	16.64	 	 	 	1.3	 	 	 	459,100	 	 	 	16.61	 
	24.72 - 27.77	 	 	67,830	 	 	 	26.97	 	 	 	0.4	 	 	 	67,830	 	 	 	26.97	 
	 	 	 	3,730,580	 	 	 	14.09	 	 	 	2.8	 	 	 	1,881,416	 	 	 	14.78	 

 

     48

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

23. Share-based
compensation (continued)

Share options (continued)

 

Osisko Gold Royalties Ltd (continued)

 

The options, when granted, are accounted
for at their fair value determined by the Black-Scholes option pricing model based on the vesting period and on the following weighted
average assumptions:

 

	 	 	2021	 	 	2020	 
	Dividend per share	 	 	1.5	%	 	 	1.5	%
	Expected volatility	 	 	40	%	 	 	39	%
	Risk-free interest rate	 	 	0.7	%	 	 	0.3	%
	Expected life	 	 	46
                                            months	 	 	 	46
                                            months	 
	Weighted average share price	 	$	13.27	 	 	$	13.51	 
	Weighted average fair value of options granted	 	$	3.66	 	 	$	3.56	 

 

The expected volatility was estimated
using Osisko's historical data from the date of grant and for a period corresponding to the expected life of the options. Share options
are exercisable at the closing market price of the common shares of the Company on the day prior to their grant.

 

The fair value of the share options
is recognized as compensation expense over the vesting period. In 2021, the total share- based compensation related to share options
granted under the Osisko's plan amounted to $3.6 million ($2.8 million in 2020), including $0.2 million capitalized to mining assets
and plant and equipment ($0.1 million in 2021).

 

Osisko Development Corp.

 

The following table summarizes information
about the movement of the share options outstanding under the Osisko Development's plan:

 

	 	 	 	 	 	2021	 	 	 	 	 	2020	 
	 	 	 	 	 	Weighted	 	 	 	 	 	Weighted	 
	 	 	Number of	 	 	average	 	 	Number of	 	 	average	 
	 	 	options	 	 	exercise price	 	 	options	 	 	exercise price	 
	 	 	 	 	 	$	 	 	 	 	 	$	 
	Balance - January 1	 	 	1,199,100	 	 	 	7.62	 	 	 	-	 	 	 	-	 
	Granted(i)	 	 	1,005,600	 	 	 	6.47	 	 	 	1,199,100	 	 	 	7.62	 
	Forfeited	 	 	(111,100	)	 	 	7.55	 	 	 	-	 	 	 	-	 
	Balance - December 31	 	 	2,093,600	 	 	 	7.07	 	 	 	1,199,100	 	 	 	7.62	 
	Options exercisable - December 31	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 

 

(i) Options were granted to
officers, management, employees and/or consultants.

 

     49

     

    

 

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

23. Share-based compensation
(continued)

 

Share options (continued)

 

Osisko Development Corp. (continued)

 

The following table summarizes the
Osisko Development's share options outstanding as at December 30, 2021:

 

	 	 	 	 	 	 	Options outstanding	 	 	Options exercisable	 
	 	 	 	 	 	 	 	 	 	Weighted	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	average	 	 	 	 	 	 	 
	 	 	 	 	 	 	Weighted	 	 	remaining	 	 	 	 	 	Weighted	 
	Exercise	 	 	 	 	 	average	 	 	contractual	 	 	 	 	 	average	 
	price range	 	 	Number	 	 	exercise price	 	 	life (years)	 	 	Number	 	 	exercise price	 
	$	 	 	 	 	 	$	 	 	 	 	 	 	 	 	$	 
	 	5.40
                                            - 5.63	 	 	 	412,800	 	 	 	5.48	 	 	 	4.8	 	 	 	-	 	 	 	-	 
	 	7.10
                                            - 8.10	 	 	 	1,680,800	 	 	 	7.46	 	 	 	4.1	 	 	 	-	 	 	 	-	 
	 	 	 	 	 	2,093,600	 	 	 	7.07	 	 	 	4.3	 	 	 	-	 	 	 	-	 

 

The options, when granted, are accounted
for at their fair value determined by the Black-Scholes option pricing model based on the vesting period and on the following weighted
average assumptions:

 

	 	 	2021	 	 	2020	 
	Dividend per share	 	 	-	 	 	 	-	 
	Expected volatility	 	 	66	%	 	 	63	%
	Risk-free interest rate	 	 	0.9	%	 	 	0.4	%
	Expected life	 	 	45
                                            months	 	 	 	48
                                            months	 
	Weighted average share price	 	$	6.47	 	 	$	7.62	 
	Weighted average fair value of options granted	 	$	3.16	 	 	$	3.64	 

 

The expected volatility was estimated
by benchmarking with companies having businesses similar to Osisko Development. The historical volatility of the common share price of
these companies was used for benchmarking back from the date of grant and for a period corresponding to the expected life of the options.

 

The fair value of the share options
is recognized as compensation expense over the vesting period. In 2021, the total share- based compensation related to share options
granted under the Osisko Development's plan amounted to $2.3 million (insignificant in 2020), including $1.1 million capitalized to mining
assets and plant and equipment.

 

     50

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

23. Share-based
 compensation (continued)

 

Deferred and restricted share
units

 

The Company and its subsidiary, Osisko
Development, offer a DSU plan and a RSU plan, which allow DSU and RSU to be granted to directors, officers and/or employees as part of
their long-term compensation package. Under the plans, payments may be settled in the form of common shares, cash or a combination of
common shares and cash, at the sole discretion of the issuer. The plans are currently classified as equity-settled plans.

 

Osisko Gold Royalties Ltd

 

The following table summarizes information
about the DSU and RSU movements:

 

	 	 	2021	 	 	2020	 
	 	 	DSU(i)	 	 	RSU(ii)	 	 	DSU(i)	 	 	RSU(ii)	 
	Balance - Beginning of period	 	 	408,564	 	 	 	1,242,902	 	 	 	325,207	 	 	 	1,190,038	 
	Granted	 	 	64,720	 	 	 	293,610	 	 	 	97,995	 	 	 	504,560	 
	Reinvested dividends	 	 	5,185	 	 	 	15,102	 	 	 	5,558	 	 	 	17,143	 
	Settled	 	 	(102,266	)	 	 	(398,173	)	 	 	(20,196	)	 	 	(365,399	)
	Forfeited (iii)	 	 	-	 	 	 	(275,044	)	 	 	-	 	 	 	(103,440	)
	Balance - End of period	 	 	376,203	 	 	 	878,397	 	 	 	408,564	 	 	 	1,242,902	 
	Balance - Vested	 	 	311,010	 	 	 	-	 	 	 	309,862	 	 	 	-	 

 

(i)  Unless
otherwise decided by the board of directors of the Company, the DSU vest the day prior to the next annual general meeting and are payable
in common shares, cash or a combination of common shares and cash, at the sole discretion of the Company, to each non-executive director
when he or she leaves the board or is not re-elected. The value of the payout is determined by multiplying the number of DSU expected
to be settled at the payout date by the closing price of the Company's shares on the day prior to the grant date. The fair value is recognized
over the vesting period. On the settlement date, one common share will be issued for each DSU, after deducting any income taxes payable
on the benefit earned by the director that must be remitted by the Company to the tax authorities. The DSU granted in 2021 have a weighted
average value of $15.54 per DSU ($12.35 per DSU in 2020).

 

(ii) On December
31, 2019, 150,000 RSU were granted to an officer (with a value of $12.70 per RSU), which vest and are payable in equal tranches over
a three-year period (1/3 per year), in common shares, cash or a combination of common shares and cash, at the sole discretion of the
Company. An additional 75,000 RSU were also granted (with a value of $12.70 per RSU) and vested during the three months ended March 31,
2020 following the acquisition by the officer of a total of 75,000 common shares of the Company. A total of 34,852 common shares were
issued to the officer (after deducting the income taxes payable on the benefit earned by the employee that must be remitted by the Company
to the tax authorities). The remaining RSU vest and are payable in common shares, cash or a combination of common shares and cash, at
the sole discretion of the Company, three years after the grant date, one half of which depends on the achievement of certain performance
measures.

 

The value of the payout is determined
by multiplying the number of RSU expected to be vested at the payout date by the closing price of the Company's shares on the day prior
to the grant date. The fair value is recognized over the vesting period and is adjusted in function of the applicable terms for the performance
based components, when applicable. On the settlement date, one common share is issued for each RSU, after deducting any income taxes
payable on the benefit earned by the employee that must be remitted by Osisko Development to the tax authorities. The RSU granted in
2021 have a weighted average value of $13.24 per RSU ($13.56 per RSU in 2020).

 

(iii) In 2021,
215,812 RSUs were forfeited by Osisko Development and RSUs were granted by Osisko Development in an equivalent value to the employees
and officers that were transferred from Osisko to Osisko Development as of January 1, 2021 (refer to the Osisko Development table and
notes on restricted share units outstanding presented below).

 

     51

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

23. Share-based
 compensation (continued)

 

Deferred and restricted share
units (continued)

 

Osisko Gold Royalties Ltd (continued)

 

The total share-based compensation
expense related to the Osisko's DSU and RSU plans in 2021 amounted to $4.7 million ($6.8 million in 2020, including $0.6 million capitalized
to mining assets and plant and equipment expenses).

 

Based on the closing price of the
common shares at December 31, 2021 ($15.48), and considering a marginal income tax rate of 53.3%, the estimated amount that Osisko is
expected to transfer to the tax authorities to settle the employees' tax obligations related to the vested RSU and DSU to be settled
in equity amounts to $2.6 million ($2.7 million as at December 31, 2020) and to $10.4 million based on all RSU and DSU outstanding ($14.2
million as at December 31, 2020).

 

Osisko Development Corp.

 

The following table summarizes information
about the DSU and RSU movements: 

 

	 	 	2021	 	 	2020	 
	 	 	DSU(i)	 	 	RSU	 	 	DSU(i)	 	 	RSU(ii)	 
	Balance - Beginning of period	 	 	170,620	 	 	 	-	 	 	 	-	 	 	 	-	 
	Granted - Replacement RSU (ii)	 	 	-	 	 	 	458,450	 	 	 	-	 	 	 	-	 
	Granted (iii)	 	 	68,730	 	 	 	599,000	 	 	 	170,620	 	 	 	-	 
	Forfeited	 	 	-	 	 	 	(21,270	)	 	 	-	 	 	 	-	 
	Balance - End of period	 	 	239,350	 	 	 	1,036,180	 	 	 	170,620	 	 	 	-	 
	Balance - Vested	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 

 

(i) Unless
otherwise decided by the board of directors of Osisko Development, the DSU vest the day prior to the next annual general meeting and
are payable in common shares, cash or a combination of common shares and cash, at the sole discretion of Osisko Development, to each
non-executive director when he or she leaves the board or is not re-elected. The value of the payout is determined by multiplying the
number of DSU expected to be vested at the payout date by the closing price of the Osisko Development's shares on the day prior to the
grant date. The fair value is recognized over the vesting period. On the settlement date, one common share will be issued for each DSU,
after deducting any income taxes payable on the benefit earned by the director that must be remitted by the Osisko Development to the
tax authorities. The DSU granted in 2021 have a weighted average value of $7.24 per DSU ($7.62 per DSU in 2020).

 

(ii) Following
the closing of the reverse takeover transaction completed on November 25, 2020, which lead to the creation of Osisko Development and
the subsequent transfer of certain Osisko employees to Osisko Development on January 1, 2021, Osisko and Osisko Development mutually
agreed that a pro-rata portion of the outstanding long-term equity incentive compensation awarded by Osisko to the transferred employees
in the form of RSU would be borne by Osisko Development. As a result, a pro-rata portion of the outstanding RSU awarded by Osisko (the
 "Osisko RSU") to the transferred employees were cancelled, and RSU (the "Replacement RSU") having a relative equivalent
value were granted by Osisko Development. Accordingly, in June 2021, 458,450 Replacement RSU were granted to officers and employees who
held Osisko RSU that were cancelled. The maturity date of the Replacement RSU is the same as the maturity date of the corresponding Osisko
RSU that were cancelled. The replacement RSU are payable in common shares, cash or a combination of common shares and cash, at the sole
discretion of Osisko Development.

 

(iii) The
RSU granted vest and are payable in common shares, cash or a combination of common shares and cash, at the sole discretion of Osisko
Development, three years after the grant date, one half of which depends on the achievement of certain performance measures. The RSU
granted in 2021 have a weighted average value of $7.02 per RSU.

 

The total share-based compensation
expense related to the Osisko Development's DSU and RSU plans in 2021 amounted to $3.3 million (insignificant in 2020), including $1.3
million capitalized to mining interests and plant and equipment.

 

Based on the closing price of the
common shares at December 31, 2021 ($4.06), and considering a marginal income tax rate of 53.3%, the estimated amount that Osisko Development
is expected to transfer to the tax authorities to settle the employees' tax obligations related to the vested RSU and DSU to be settled
in equity amounts to nil (nil as at December 31, 2020) and to $2.8 million based on all RSU and DSU outstanding ($0.7 million as at December
31, 2020).

 

     52

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

24. Income taxes

 

(a) Income tax expense

 

The income tax recorded in the consolidated
statements of income (loss) for the years ended December 31, 2021 and 2020 is presented as follows:

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Current income tax	 	 	 	 	 	 	 	 
	Expense
    for the year (i)	 	 	1,231	 	 	 	7,153	 
	Current income tax expense	 	 	1,231	 	 	 	7,153	 
	 	 	 	 	 	 	 	 	 
	Deferred income tax (Note 26 (b)):	 	 	 	 	 	 	 	 
	Origination and reversal of temporary differences	 	 	(8,259	)	 	 	(1,062	)
	Impact of changes in tax rates	 	 	-	 	 	 	11	 
	Change in unrecognized deductible temporary differences	 	 	20,050	 	 	 	6,570	 
	Other	 	 	(67	)	 	 	(1,759	)
	 	 	 	 	 	 	 	 	 
	Deferred income tax expense	 	 	11,724	 	 	 	3,760	 
	 	 	 	 	 	 	 	 	 
	Income tax expense	 	 	12,955	 	 	 	10,913	 

 

(i) In 2020, the current income
tax expense includes an amount of US$4.5 million ($5.8 million) resulting from the San Antonio stream transaction (paid in 2021).

 

The provision for income taxes presented
in the consolidated statements of income (loss) differs from the amount that would arise using the statutory income tax rate applicable
to income of the consolidated entities, as a result of the following:

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	(Loss) income before income taxes	 	 	(43,720	)	 	 	27,142	 
	Income tax provision calculated using the
    combined Canadian federal and provincial statutory income tax rate	 	 	(11,586	)	 	 	7,193	 
	Increase (decrease) in income taxes resulting from:	 	 	 	 	 	 	 	 
	Non-deductible expenses, net	 	 	908	 	 	 	(11	)
	(Non-deductible) non-taxable portion of capital losses, net	 	 	(761	)	 	 	(1,893	)
	Differences in foreign statutory tax rates	 	 	(3,898	)	 	 	(408	)
	Changed in unrecognized deferred tax assets	 	 	20,050	 	 	 	6,570	 
	Foreign withholding taxes	 	 	864	 	 	 	778	 
	Deferred premium on flow-through shares	 	 	(1,847	)	 	 	-	 
	Effect of flow-through shares renunciation	 	 	8,021	 	 	 	-	 
	Tax rate changes of deferred income taxes	 	 	-	 	 	 	11	 
	Other	 	 	1,204	 	 	 	(1,327	)
	 	 	 	 	 	 	 	 	 
	Total income tax expense	 	 	12,955	 	 	 	10,913	 
	The 2021 and 2020 Canadian federal and provincial statutory income tax rate is 26.5%.	 	 	 	 	 	 	 	 

 

     53

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

24. Income taxes (continued)

 

(b) Deferred income taxes

 

The components that give rise to
deferred income tax assets and liabilities are as follows:

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Deferred tax assets:	 	 	 	 	 	 	 	 
	Stream interests	 	 	30,100	 	 	 	34,278	 
	Non-capital losses	 	 	7,663	 	 	 	8,195	 
	Deferred and restricted share units	 	 	3,401	 	 	 	4,008	 
	Share and debt issue expenses	 	 	2,935	 	 	 	4,562	 
	 	 	 	44,099	 	 	 	51,043	 
	Deferred tax liabilities:	 	 	 	 	 	 	 	 
	Royalty interests and exploration and evaluation assets	 	 	(102,782	)	 	 	(93,266	)
	Investments	 	 	(8,077	)	 	 	(9,437	)
	Convertible debentures Other	 	 	(1,173	)	 	 	(2,315	)
	Other	 	 	(474	)	 	 	(454	)
	 	 	 	 	 	 	 	 	 
	 	 	 	(112,506	)	 	 	(105,472	)
	 	 	 	 	 	 	 	 	 
	Deferred tax liability, net	 	 	(68,407	)	 	 	(54,429	)

 

Deferred tax assets and liabilities
have been offset in the balance sheets where they relate to income taxes levied by the same taxation authority and the Company has the
legal right and intent to offset.

 

The 2021 movement for deferred tax
assets and deferred tax liabilities may be summarized as follows:

 

	 	 	 	 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 
	 	 	 	 	 	Statement	 	 	 	 	 	comprehen-	 	 	 	 	 	 	 
	 	 	Dec. 31,	 	 	of inco-	 	 	 	 	 	sive income	 	 	Translation	 	 	Dec. 31,	 
	 	 	2020	 	 	me (loss)	 	 	Equity	 	 	(loss)	 	 	adjustments	 	 	2021	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Deferred tax assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stream interests	 	 	34,278	 	 	 	(4,178	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	30,100	 
	Non-capital losses	 	 	8,195	 	 	 	(532	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	7,663	 
	Deferred and restricted share units	 	 	4,008	 	 	 	(328	)	 	 	(279	)	 	 	-	 	 	 	-	 	 	 	3,401	 
	Share and debt issue expenses	 	 	4,562	 	 	 	(96	)	 	 	(1,531	)	 	 	-	 	 	 	-	 	 	 	2,935	 
	Deferred tax liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalty interests and exploration and
    evaluation assets	 	 	(93,266	)	 	 	(9,543	)	 	 	 	 	 	 	-	 	 	 	27	 	 	 	(102,782	)
	Investments	 	 	(9,437	)	 	 	1,831	 	 	 	-	 	 	 	(471	)	 	 	-	 	 	 	(8,077	)
	Convertible debentures	 	 	(2,315	)	 	 	1,142	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(1,173	)
	Other	 	 	(454	)	 	 	(20	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(474	)
	 	 	 	(54,429	)	 	 	(11,724	)	 	 	(1,810	)	 	 	(471	)	 	 	27	 	 	 	(68,407	)

 

     54

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

24. Income taxes (continued)

 

(b) Deferred income taxes (continued)

 

The 2020 movement for deferred tax
assets and deferred tax liabilities may be summarized as follows:

 

	 	 	 	 	 	 	 	 	 	 	 	Other	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	Statement	 	 	 	 	 	comprehen-	 	 	Benefit from	 	 	 	 	 	 	 
	 	 	Dec. 31,	 	 	of inco-	 	 	 	 	 	sive income	 	 	flow-through	 	 	Translation	 	 	Dec. 31,	 
	 	 	2019	 	 	me (loss)	 	 	Equity	 	 	(loss)	 	 	shares	 	 	adjustments	 	 	2020	 
	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 
	Deferred tax assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stream interests	 	 	28,826	 	 	 	5,452	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	34,278	 
	Non-capital losses	 	 	170	 	 	 	8,025	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	8,195	 
	Deferred and restricted share units	 	 	2,865	 	 	 	435	 	 	 	708	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	4,008	 
	Share and debt issue expenses	 	 	(113	)	 	 	(569	)	 	 	5,244	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	4,562	 
	Deferred tax liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalty interests and exploration and
    evaluation assets	 	 	(77,641	)	 	 	(16,204	)	 	 	 	 	 	 	388	 	 	 	66	 	 	 	125	 	 	 	(93,266	)
	Investments	 	 	1,911	 	 	 	(1,613	)	 	 	-	 	 	 	(9,707	)	 	 	(28	)	 	 	-	 	 	 	(9,437	)
	Convertible debentures	 	 	(3,632	)	 	 	1,317	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(2,315	)
	Other	 	 	149	 	 	 	(603	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(454	)
	 	 	 	(47,465	)	 	 	(3,760	)	 	 	5,952	 	 	 	(9,319	)	 	 	38	 	 	 	125	 	 	 	(54,429	)

 

(c) Unrecognized deferred tax
liabilities

 

The aggregate amount of taxable temporary
differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized as at December 31,
2021, is $114.6 million ($110.8 million as at December 31, 2020). No deferred tax liabilities are recognized on the temporary differences
associated with investments in subsidiaries because the Company controls the timing of reversal and it is not probable that they will
reverse in the foreseeable future.

 

(d) Unrecognized deferred tax
assets

 

As at December 31, 2021, the Company
had temporary differences with a tax benefit of $79.5 million ($57.3 million as at December 31, 2020) which are not recognized as deferred
tax assets. The Company recognizes the benefit of tax attributes only to the extent of anticipated future taxable income that can be
reduced by these attributes.

 

	 	 	December 31,	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Non-capital losses carried forward	 	 	64,650	 	 	 	43,379	 
	Mineral stream interests - Mexico	 	 	7,446	 	 	 	5,796	 
	Unrealized losses on investments	 	 	3,598	 	 	 	6,529	 
	Capital losses	 	 	2,127	 	 	 	-	 
	Other	 	 	1,694	 	 	 	1,632	 
	 	 	 	79,515	 	 	 	57,336	 

 

     55

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

25. Additional information on the consolidated statements
of income (loss)

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Revenues	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Royalty interests	 	 	140,279	 	 	 	111,305	 
	Stream interests	 	 	59,333	 	 	 	45,269	 
	Offtake interests	 	 	25,265	 	 	 	57,056	 
	 	 	 	224,877	 	 	 	213,630	 
	Cost of sales	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Royalty interests	 	 	551	 	 	 	512	 
	Stream interests	 	 	12,752	 	 	 	8,988	 
	Offtake interests	 	 	24,343	 	 	 	54,200	 
	 	 	 	37,646	 	 	 	63,700	 

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Operating expenses by nature	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Impairment of assets	 	 	124,538	 	 	 	26,300	 
	Depletion and depreciation	 	 	51,934	 	 	 	46,904	 
	Employee benefit expenses (see below)	 	 	28,586	 	 	 	20,142	 
	Professional fees	 	 	15,454	 	 	 	7,631	 
	Insurance costs	 	 	3,634	 	 	 	1,820	 
	Material, supplies and consumables	 	 	3,560	 	 	 	-	 
	Rent and office expenses	 	 	1,654	 	 	 	1,052	 
	Public company expenses	 	 	1,234	 	 	 	971	 
	Communication and promotional expenses	 	 	977	 	 	 	1,265	 
	Travel expenses	 	 	815	 	 	 	413	 
	Cost recoveries	 	 	(582	)	 	 	(618	)
	Deemed listing fees of Osisko Development (Note 6)	 	 	-	 	 	 	1,751	 
	Other expenses	 	 	644	 	 	 	596	 
	 	 	 	232,448	 	 	 	108,227	 
	Employee benefit expenses	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Salaries and wages	 	 	17,494	 	 	 	12,282	 
	Share-based compensation	 	 	13,280	 	 	 	9,361	 
	Cost recoveries from associates	 	 	(2,188	)	 	 	(1,501	)
	 	 	 	28,586	 	 	 	20,142	 

 

     56

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

25. Additional information on the
consolidated statements of income (loss) (continued)

 

	 	 	2021	 	 	2020	 
	Other gains, net	 	 	 	 	 	 	 	 
	Change in fair value of financial assets at fair value through profit and
    loss	 	 	6,286	 	 	 	2,387	 
	Net gain on dilution of investments in associates (Note 12)	 	 	1,847	 	 	 	10,381	 
	Net gain on acquisition of investments(i)	 	 	7,638	 	 	 	3,827	 
	Net gain on disposal of investments	 	 	-	 	 	 	5,357	 
	Impairment of other investments	 	 	(2,112	)	 	 	(7,998	)
	Flow-through shares premium income	 	 	6,971	 	 	 	-	 
	Others	 	 	4,892	 	 	 	(332	)
	 	 	 	25,522	 	 	 	13,622	 

 

(i) Represents changes in the
fair value of the underlying investments between the respective subscription dates and the closing dates.

 

26. Key management

 

Key management includes directors
(executive and non-executive) and the executive management team. The compensation paid or payable to key management for employee services
is presented below:

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Salaries and short-term employee benefits	 	 	5,369	 	 	 	5,776	 
	Share-based compensation	 	 	6,775	 	 	 	6,665	 
	Cost recoveries from associates	 	 	(144	)	 	 	(300	)
	 	 	 	12,000	 	 	 	12,141	 

 

Key management employees are subject
to employment agreements which provide for payments on termination of employment without cause or following a change of control providing
for payments of between once to twice base salary and bonus and certain vesting acceleration clauses on restricted and deferred share
units and share options.

 

27. Net (loss) earnings per share

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Net (loss) earnings attributable to Osisko Gold Royalties Ltd's shareholders	 	 	(23,554	)	 	 	16,876	 
	 	 	 	 	 	 	 	 	 
	Basic weighted average number of common shares outstanding (in thousands)	 	 	167,628	 	 	 	162,303	 
	Dilutive effect of share options	 	 	-	 	 	 	125	 
	Diluted weighted average number of common shares	 	 	167,628	 	 	 	162,428	 
	 	 	 	 	 	 	 	 	 
	Net (loss) earnings per share	 	 	 	 	 	 	 	 
	Basic and diluted	 	 	(0.14	)	 	 	0.10	 

 

     57

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

27. Net (loss) earnings
per share (continued)

 

As a result of the consolidated net
loss for the year ended December 31, 2021, all potentially dilutive common shares are deemed to be antidilutive for the period and thus
diluted net loss per share is equal to the basic net loss per share.

 

For the year ended December 31, 2020,
3,031,912 share options, 5,480,000 outstanding warrants and the 15,726,705 common shares underlying the convertible debentures were excluded
from the computation of diluted earnings per share as their effect was anti-dilutive.

 

28. Additional information
on the consolidated statements of cash flows

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Interests received measured using the effective rate method	 	 	2,891	 	 	 	1,673	 
	Interests paid on long-term debt	 	 	16,420	 	 	 	17,308	 
	Income taxes paid (i)	 	 	7,027	 	 	 	1,358	 
	 	 	 	 	 	 	 	 	 
	Changes in non-cash working capital items	 	 	 	 	 	 	 	 
	Decrease (increase) in amounts receivable	 	 	476	 	 	 	(4,678	)
	Increase in inventories	 	 	(13,075	)	 	 	-	 
	Increase in other current assets	 	 	(5,075	)	 	 	(1,311	)
	(Decrease) increase in accounts payable
    and accrued liabilities	 	 	(7,325	)	 	 	7,723	 
	 	 	 	(24,999	)	 	 	1,734	 
	Tax credits receivable related to the exploration and evaluation assets	 	 	 	 	 	 	 	 
	January 1	 	 	5,546	 	 	 	936	 
	December 31	 	 	6,193	 	 	 	5,546	 

 

(i) In
2021, income taxes of $5.8 million were paid to the Mexican authorities in relation to the acquisition of a gold and silver stream on
the San Antonio project completed in 2020.

 

29. Financial risks

 

The Company's activities expose it
to a variety of financial risks: market risks (including interest rate risk, foreign currency risk and other price risk), credit risk
and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize
potential adverse effects on the Company's performance.

 

Risk management is carried out under
policies approved by the Board of Directors. The Board of Directors provides principles for overall risk management, as well as policies
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, the use of derivative financial instruments
and non-derivative financial instruments, and investment in excess liquidities.

 

(a) Market risks

 

(i) Interest rate risk

 

Interest rate risk is the risk that
the fair value of future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates.

 

The Company's interest rate risk on
financial assets is primarily related to cash, which bear interest at variable rates. However, as these investments come to maturity
within a short period of time, the impact would likely be not significant. Other financial assets are not exposed to interest rate risk
because they are mostly non-interest bearing or bear interest at fixed rates, except for derivative financial instruments (warrants).

 

     58

     

    

 

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

(a) Market risks (continued)

 

(i) Interest rate risk (continued)

 

Financial liabilities are not exposed
to interest rate risk because they are non-interest bearing or bear a fixed interest rate, except for the revolving credit facility which
bears a variable interest rate. Based on the revolving credit facility's balances as at December 31, 2021 and 2020, the impact on net
financial expenses over a 12-month horizon of a 0.5% shift in interest rates would not be significant.

 

(ii) Foreign exchange risk

 

The Company is exposed to foreign exchange
risk arising from currency volatility, primarily with respect to the U.S. dollar. The Company holds balances in cash denominated in U.S.
dollars and can draw on its credit facility in U.S. dollars and is therefore exposed to gains or losses on foreign exchange.

 

As at December 31, 2021 and 2020, the
balances in U.S. dollars held by entities having the Canadian dollar as their functional currency were as follows:

 

	 	 	December 31,	 
	 	 	2021	 	 	2020	 
	 	 	 	$	 	 	 	$	 
	Cash and cash equivalents	 	 	23,755	 	 	 	90,638	 
	Amounts receivable	 	 	2,600	 	 	 	1,709	 
	Other assets	 	 	1,319	 	 	 	1,327	 
	Accounts payable and accrued liabilities	 	 	(117	)	 	 	(110	)
	Revolving credit facility	 	 	(50,000	)	 	 	(50,000	)
	 	 	 	 	 	 	 	 	 
	Net exposure, in U.S. dollars	 	 	(22,443	)	 	 	43,564	 
	 	 	 	 	 	 	 	 	 
	Equivalent in Canadian dollars	 	 	(28,453	)	 	 	55,466	 

 

Based on the balances as at December
31, 2021, a 5% fluctuation in the exchange rates on that date (with all other variables being constant) would have resulted in a variation
of net earnings of approximately $1.8 million in 2021 ($1.2 million in 2020).

 

(iii) Other price risk

 

The Company is exposed to equity price
risk as a result of holding long-term investments in other exploration and development mining companies. The equity prices of long-term
investments are impacted by various underlying factors including commodity prices. Based on the Company's long-term investments held
as at December 31, 2021, a 10% increase (decrease) in the equity prices of these investments would increase (decrease) the net earnings
by $2.5 million and the other comprehensive income (loss) by $8.2 million for the year ended December 31, 2021. Based on the Company's
long-term investments held as at December 31, 2020, a 10% increase (decrease) in the equity prices of these investments would have increased
(decreased) the net earnings by $1.7 million and the other comprehensive income (loss) by $10.0 million for the year ended December 31,
2020.

 

     59

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

(b) Credit risk

 

Credit risk is the risk that one party
to a financial instrument will fail to discharge its obligation and cause the other party to incur a financial loss. Financial instruments
that potentially subject the Company to credit risk consist of cash, amounts receivable, notes receivable, other financing facilities
receivable and reclamation deposits. The Company reduces its credit risk by investing its cash in high interest savings accounts with
Canadian and U.S. recognized financial institutions and its reclamation deposits in guaranteed investments certificates issued by Canadian
chartered banks. In the case of amounts receivable, notes receivable and other financing facilities, the Company performs either a credit
analysis or ensures that it has sufficient guarantees in case of a non-payment by the third party to cover the net book value of the
note. A provision is recorded if there is an expected credit loss based on the analysis. In some cases, the loans receivable could be
applied against stream deposits due by the Company or converted into a royalty if the third party is not able to reimburse its loan.
As at December 31, 2021, a provision of $14.2 million ($12.7 million as at December 31, 2020) is recorded as a result of the expected
credit loss analysis, mostly on loans made to the company holding the Amulsar gold project (the loans were fully provisioned as the company
is not expected to be in a position to reimburse them).

 

The maximum credit exposure of the Company
corresponds to the respective instrument's net carrying amount.

 

(c) Liquidity risk

 

Liquidity risk is the risk that the
Company will not be able to meet the obligations associated with its financial liabilities. The Company manages the liquidity risk by
continuously monitoring actual and projected cash flows, taking into account the requirements related to its investment commitments,
mining properties and exploration and evaluation assets and matching the maturity profile of financial assets and liabilities. The Board
of Directors reviews and approves any material transaction out of the ordinary course of business, including proposals on mergers, acquisitions
or other major investment or divestitures. The Company also manages liquidity risk through the management of its capital structure and
financial leverage as outlined in Note 21. As at December 31, 2021, cash is invested in high interest savings accounts held with Canadian
and U.S. recognized financial institutions.

 

As at December 31, 2021, all financial
liabilities to be settled in cash or by the transfer of other financial assets mature within 90 days, except for the convertible debentures,
the revolving credit facility, the equipment financings and the lease liabilities, which are described below:

 

	 	 	As at December 31, 2021	 
	 	 	Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	amount	 	 	 	 	Estimated annual payments	 
	 	 	payable	 	 	Maturity	 	2022	 	 	2023	 	 	2024	 	 	2025	 	 	2026-2029	 
	 	 	 	$	 	 	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Conv. debentures	 	 	312,000	 	 	December 31, 2022	 	 	312,000	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Revolving credit facility(i)	 	 	128,788	 	 	July 30, 2025	 	 	4,297	 	 	 	4,297	 	 	 	4,297	 	 	 	115,897	 	 	 	-	 
	Equipment financings	 	 	3,969	 	 	October 10, 2025	 	 	1,584	 	 	 	1,664	 	 	 	393	 	 	 	328	 	 	 	-	 
	Lease liabilities	 	 	20,213	 	 	December 31, 2029	 	 	9,388	 	 	 	2,919	 	 	 	1,478	 	 	 	1,291	 	 	 	5,137	 
	 	 	 	464,970	 	 	 	 	 	327,269	 	 	 	8,880	 	 	 	6,168	 	 	 	117,516	 	 	 	5,137	 

 

(i) The interest payable is based
on the actual interest rates and foreign exchange rates as at December 31, 2021.

 

     60

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

30. Fair value of financial
instruments

 

The following table provides information
about financial assets and liabilities measured at fair value in the consolidated balance sheets and categorized by level according to
the significance of the inputs used in making the measurements.

 

Level 1- Unadjusted
quoted prices in active markets for identical assets or liabilities;

 

Level 2- Inputs
other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices); and

 

Level 3- Inputs
for the asset or liability that are not based on observable market data (that is, unobservable inputs).

 

	 	 	December 31, 2021	 
	 	 	Level 1	 	 	Level 2	 	 	Level 3	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Recurring measurements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financial assets at fair value
    through profit or loss(i)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warrants on equity securities and convertible
    debentures and notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicly traded mining exploration and development companies	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Precious metals	 	 	-	 	 	 	-	 	 	 	24,327	 	 	 	24,327	 
	Other minerals	 	 	13,048	 	 	 	-	 	 	 	10,607	 	 	 	23,655	 
	Financial
    assets at fair value through other comprehensive (loss) income(i)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equity securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicly traded mining exploration and development companies	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Precious metals	 	 	46,668	 	 	 	-	 	 	 	-	 	 	 	46,668	 
	Other minerals	 	 	47,563	 	 	 	-	 	 	 	-	 	 	 	47,563	 
	 	 	 	107,279	 	 	 	-	 	 	 	34,934	 	 	 	142,213	 

 

	 	 	December 31, 2020	 
	 	 	Level 1	 	 	Level 2	 	 	Level 3	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Recurring measurements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Financial assets at fair value
    through profit or loss(i)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warrants on equity securities and convertible
    debentures and notes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicly traded mining exploration and development companies	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Precious metals	 	 	-	 	 	 	-	 	 	 	23,904	 	 	 	23,904	 
	Other minerals	 	 	-	 	 	 	-	 	 	 	1,159	 	 	 	1,159	 
	Financial assets at fair value
    through other comprehensive (loss) income (i)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Equity securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicly traded mining exploration and development companies	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Precious metals	 	 	95,796	 	 	 	-	 	 	 	-	 	 	 	95,796	 
	Other minerals	 	 	19,794	 	 	 	-	 	 	 	-	 	 	 	19,794	 
	 	 	 	115,590	 	 	 	-	 	 	 	25,063	 	 	 	140,653	 

 

(i) On
the basis of its analysis of the nature, characteristics and risks of equity securities, the Company has determined that presenting them
by industry and type of investment is appropriate.

 

     61

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

30. Fair value of financial
instruments (continued)

 

During the year ended December 31,
2021, warrants having a fair value of $5.1 million were transferred from Level 3 to Level 1 as these warrants began trading on a recognized
stock exchange. During the year ended December 31, 2020, there were no transfers among Level 1, Level 2 and Level 3.

 

Financial instruments in Level
1

 

The fair value of financial instruments
traded in active markets is based on quoted market prices on a recognized securities exchange at the balance sheet dates. The quoted
market price used for financial assets held by the Company is the last transaction price. Instruments included in Level 1 consist primarily
of common shares and warrants trading on recognized securities exchanges, such as the TSX, TSX Venture or NEO.

 

Financial instruments in Level
2

 

The fair value of financial instruments
that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable
market data where it is available and rely as little as possible on the Company's specific estimates. If all significant inputs required
to measure the fair value of an instrument are observable, the instrument is included in Level 2. Instruments included in Level 2 consist
of notes receivable. If one or more of the significant inputs are not based on observable market data, the instrument is included in
Level 3.

 

Financial instruments in Level
3

 

Financial instruments classified
in Level 3 include convertible debentures and warrants held by the Company that are not traded on a recognized securities exchange. The
fair value of the investments in convertible debentures and warrants is determined directly or indirectly using the Black-Scholes option
pricing model which includes significant inputs not based on observable market data.

 

The following table presents the
changes in the Level 3 investments (comprised of convertible debentures and warrants) for the years ended December 31, 2021 and 2020:

 

	 	 	2021	 	 	2020	 
	 	 	$	 	 	$	 
	Balance - January 1	 	 	25,063	 	 	 	1,700	 
	Acquisitions	 	 	12,754	 	 	 	4,782	 
	Amendment of a note receivable (Note 13)	 	 	-	 	 	 	16,541	 
	Warrants exercised	 	 	(1,122	)	 	 	(347	)
	Change in fair value - warrants exercised(i)	 	 	300	 	 	 	102	 
	Change in fair value - warrants expired(i)	 	 	(15	)	 	 	(48	)
	Change in fair
    value - investments held at the end of the period(i)	 	 	(2,046	)	 	 	2,333	 
	Balance - December 31	 	 	34,934	 	 	 	25,063	 

 

(i) Recognized in the consolidated
statements of income (loss) under other gains (losses), net.

 

The fair value of the financial instruments
classified as Level 3 depends on the nature of the financial instruments.

 

The fair value of the warrants on
equity securities and the convertible debentures of publicly traded mining exploration and development companies, classified as Level
3, is determined using directly or indirectly the Black-Scholes option pricing model. The main non-observable input used in the model
is the expected volatility. An increase/decrease in the expected volatility used in the models of 10% would have resulted in an insignificant
variation of the fair value of the warrants as at December 31, 2021 and 2020.

 

     62

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

30. Fair
value of financial instruments (continued)

 

Foreign exchange contracts

 

In 2021, the Company entered into
foreign exchange contracts (collar options) to sell U.S. dollars and buy Canadian dollars for a total nominal amount of US$3.0 million.
The contracts were put in place to protect revenues in Canadian dollars (from the sale of gold ounces received from royalty interests
which are denominated in U.S.

 

dollars) from a stronger Canadian
dollar. The fair value of the contracts is booked at each reporting period on the consolidated balance sheets. As at December 31, 2021,
the fair value of the outstanding contracts was insignificant.

 

Financial instruments not measured
at fair value on the consolidated balance sheets

 

Financial instruments that are not
measured at fair value on the consolidated balance sheets are represented by cash, short- term investments, trade receivables, amounts
receivable from associates and other receivables, notes receivable, other financing facilities receivable, accounts payable and accrued
liabilities and long-term debt. The fair values of cash, short- term investments, trade receivables, amounts receivable from associates
and other receivables and accounts payable and accrued liabilities approximate their carrying values due to their short-term nature.
The carrying value of the liability under the revolving credit facility and the mining equipment financings approximate their fair value
given that the credit spread is similar to the credit spread the Company would obtain under similar conditions at the reporting date.
The fair value of the non-current notes receivable and other financing credit facilities receivable approximate their carrying value
as there were no significant changes in economic and risk parameters since the issuance/acquisition or assumptions of those financial
instruments.

 

The following table presents the
carrying amount and the fair value of long-term debt (excluding the liability under the revolving credit facility):

 

	 	 	December 31, 2021	 	 	December 31, 2020	 
	 	 	Fair	 	 	Carrying	 	 	Fair	 	 	Carrying	 
	 	 	value	 	 	amount	 	 	value	 	 	amount	 
	 	 	 	$	 	 	 	$	 	 	 	 	 	 	 	 	 
	Long-term debt - Level 1	 	 	303,000	 	 	 	293,281	 	 	 	318,000	 	 	 	286,903	 
	Long-term debt - Level 2	 	 	-	 	 	 	-	 	 	 	49,928	 	 	 	49,866	 
	Balance	 	 	303,000	 	 	 	293,281	 	 	 	367,928	 	 	 	336,769	 

 

     63

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

31. Segment disclosure

 

The chief operating decision-maker
organizes and manages the business under two operating segments: (i) acquiring and managing precious metals and other royalties, streams
and other interests, and (ii) the exploration, evaluation and development of mining projects. The assets, liabilities, revenues, expenses
and cash flows of Osisko and its subsidiaries, other than Osisko Development and its subsidiaries, are attributable to the precious metals
and other royalties, streams and other interests operating segment. The assets, liabilities, revenues, expenses and cash flows of Osisko
Development and its subsidiaries are attributable to the exploration, evaluation and development of mining projects operating segment.

 

The following table presents the
main assets, liabilities, revenues, expenses and cash flows per operating segment:

 

	 	 	As at December 31, 2021 and 2020	 
	 	 	Osisko Gold	 	 	Osisko	 	 	 	 	 	 	 
	 	 	 	Royalties
                                            (i)	 	 	 	Development
                                            (ii)	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	(Mining
                                            exploration,	 	 	 	 	 	 	 	 	 
	 	 	 	(Royalties,
                                            streams	 	 	 	evaluation
                                            and	 	 	 	Intersegment	 	 	 	 	 
	 	 	 	and
                                            other interests)	 	 	 	development)	 	 	 	transactions
                                            (iii)	 	 	 	Consolidated	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Assets and liabilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As at December 31, 2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash	 	 	82,291	 	 	 	33,407	 	 	 	-	 	 	 	115,698	 
	Current assets	 	 	91,594	 	 	 	61,422	 	 	 	(90	)	 	 	152,926	 
	Investments in associates and other investments	 	 	231,884	 	 	 	62,480	 	 	 	-	 	 	 	294,364	 
	Royalty, stream and other interests	 	 	1,247,489	 	 	 	-	 	 	 	(92,688	)	 	 	1,154,801	 
	Mining interests and plant and equipment	 	 	7,991	 	 	 	559,332	 	 	 	68,332	 	 	 	635,655	 
	Exploration and evaluation assets	 	 	-	 	 	 	3,635	 	 	 	-	 	 	 	3,635	 
	Goodwill	 	 	111,204	 	 	 	-	 	 	 	-	 	 	 	111,204	 
	Total assets	 	 	1,691,958	 	 	 	703,110	 	 	 	(24,446	)	 	 	2,370,622	 
	Total liabilities (excluding long-term debt)	 	 	89,416	 	 	 	115,156	 	 	 	(24,446	)	 	 	180,126	 
	Long-term debt	 	 	406,671	 	 	 	3,764	 	 	 	-	 	 	 	410,435	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	As at December 31, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash	 	 	105,097	 	 	 	197,427	 	 	 	-	 	 	 	302,524	 
	Current assets	 	 	117,592	 	 	 	218,478	 	 	 	(882	)	 	 	335,188	 
	Investments in associates and other investments	 	 	166,589	 	 	 	110,144	 	 	 	-	 	 	 	276,733	 
	Royalty, stream and other interests	 	 	1,203,781	 	 	 	-	 	 	 	(87,653	)	 	 	1,116,128	 
	Mining interests and plant and equipment	 	 	9,011	 	 	 	407,000	 	 	 	73,501	 	 	 	489,512	 
	Exploration and evaluation assets	 	 	-	 	 	 	41,869	 	 	 	650	 	 	 	42,519	 
	Goodwill	 	 	111,204	 	 	 	-	 	 	 	-	 	 	 	111,204	 
	Total assets	 	 	1,609,344	 	 	 	802,144	 	 	 	(14,384	)	 	 	2,397,104	 
	Total liabilities (excluding long-term debt)	 	 	67,449	 	 	 	102,578	 	 	 	(14,384	)	 	 	155,643	 
	Long-term debt	 	 	400,429	 	 	 	-	 	 	 	-	 	 	 	400,429	 

 

     64

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

31. Segment disclosure (continued)

 

	 	 	Years ended December 31, 2021 and
    2020	 
	 	 	Osisko Gold	 	 	Osisko	 	 	 	 	 	 	 
	 	 	 	Royalties
                                            (i)	 	 	 	Development
                                            (ii)	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Mining
                                            exploration,	 	 	 	 	 	 	 	 	 
	 	 	 	(Royalties,
                                            streams	 	 	 	evaluation
                                            and	 	 	 	Intersegment	 	 	 	 	 
	 	 	 	and
                                            other interests)	 	 	 	development)	 	 	 	transactions
                                            (iii)	 	 	 	Consolidated	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Revenues, expenses and cash flows	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year ended December 31, 2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	224,877	 	 	 	7,275	 	 	 	(7,275	)	 	 	224,877	 
	Gross profit	 	 	138,870	 	 	 	-	 	 	 	-	 	 	 	138,870	 
	Operating expenses (G&A, bus. dev and exploration)	 	 	(23,778	)	 	 	(22,852	)	 	 	-	 	 	 	(46,630	)
	Mining operating expenses	 	 	-	 	 	 	(12,919	)	 	 	-	 	 	 	(12,919	)
	Impairments	 	 	(4,400	)	 	 	(122,250	)	 	 	-	 	 	 	(126,650	)
	Net earnings (loss)	 	 	77,277	 	 	 	(133,952	)	 	 	-	 	 	 	(56,675	)
	Cash flows from operating activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Before working capital items	 	 	158,632	 	 	 	(21,828	)	 	 	(5,710	)	 	 	131,094	 
	Working capital items	 	 	(5,413	)	 	 	(19,586	)	 	 	-	 	 	 	(24,999	)
	After working capital ite	 	 	153,219	 	 	 	(41,414	)	 	 	(5,710	)	 	 	106,095	 
	Cash flows from investing activities	 	 	(120,766	)	 	 	(156,982	)	 	 	5,710	 	 	 	(272,038	)
	Cash flows from financing activities	 	 	(54,339	)	 	 	34,738	 	 	 	-	 	 	 	(19,601	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year ended December 31, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	213,630	 	 	 	-	 	 	 	-	 	 	 	213,630	 
	Gross profit	 	 	104,325	 	 	 	-	 	 	 	-	 	 	 	104,325	 
	Operating expenses (G&A, bus. dev and exploration)	 	 	(28,021	)	 	 	(8,301	)	 	 	-	 	 	 	(36,322	)
	Impairments	 	 	(36,298	)	 	 	-	 	 	 	-	 	 	 	(36,298	)
	Net earnings (loss)	 	 	23,501	 	 	 	(7,272	)	 	 	-	 	 	 	16,229	 
	Cash flows from operating activities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Before working capital items	 	 	116,631	 	 	 	(10,387	)	 	 	-	 	 	 	106,244	 
	Working capital items	 	 	(2,669	)	 	 	4,403	 	 	 	-	 	 	 	1,734	 
	After working capital items	 	 	113,962	 	 	 	(5,984	)	 	 	-	 	 	 	107,978	 
	Cash flows from investing activities	 	 	(161,131	)	 	 	(61,968	)	 	 	-	 	 	 	(223,099	)
	Cash flows from financing activities	 	 	109,444	 	 	 	207,417	 	 	 	-	 	 	 	316,861	 

 

		(i)	Osisko Gold Royalties
                                            Ltd and its subsidiaries, excluding Osisko Development Corp. and its subsidiaries.

 

		(ii)	Osisko Development
                                            Corp. and its subsidiaries (carve-out of the mining activities of Osisko Gold Royalties prior
                                            to the reverse take-over transaction completed on November 25, 2020 and creating Osisko Development).

 

		(iii)	The adjustments
                                            are related to intersegment transactions and to royalties and streams held by Osisko Gold
                                            Royalties on assets held by Osisko Development, which are reclassified on consolidation,
                                            as well as adjustments related to an accounting policy difference on revenues recognition.

 

     65

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

31. Segment disclosure
(continued)

 

Royalty, stream and other interests
- Geographic revenues

 

All of the Company's revenues are
attributable to the precious metals and other royalties, streams and other interests operating segment. Geographic revenues from the
sale of metals and diamonds received or acquired from in-kind royalties, streams and other interests are determined by the location of
the mining operations giving rise to the royalty, stream or other interest. For the years ended December 31, 2021 and 2020, royalty,
stream and other interest revenues were earned from the following jurisdictions:

 

	 	 	North	 	 	South	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	America(i)	 	 	America	 	 	Australia	 	 	Africa	 	 	Europe	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalties	 	 	134,544	 	 	 	1,112	 	 	 	6	 	 	 	4,617	 	 	 	-	 	 	 	140,279	 
	Streams	 	 	27,624	 	 	 	20,284	 	 	 	1,548	 	 	 	-	 	 	 	9,877	 	 	 	59,333	 
	Offtakes	 	 	25,265	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	25,265	 
	 	 	 	187,433	 	 	 	21,396	 	 	 	1,554	 	 	 	4,617	 	 	 	9,877	 	 	 	224,877	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalties	 	 	106,780	 	 	 	554	 	 	 	52	 	 	 	3,919	 	 	 	-	 	 	 	111,305	 
	Streams	 	 	13,999	 	 	 	19,862	 	 	 	2,098	 	 	 	-	 	 	 	9,310	 	 	 	45,269	 
	Offtakes	 	 	57,056	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	57,056	 
	 	 	 	177,835	 	 	 	20,416	 	 	 	2,150	 	 	 	3,919	 	 	 	9,310	 	 	 	213,630	 

 

(i) 83% of the North America's
revenues are generated from Canada in 2021 (65% in 2020).

 

In 2021, one royalty interest generated
revenues of $81.3 million ($66.8 million in 2020), which represented 41% of revenues (43% of revenues in 2020) (excluding revenues generated
from the offtake interests).

 

In 2021, revenues generated from
precious metals and diamonds represented 89% and 9%, respectively, of total revenues (87% and 11% excluding offtakes, respectively).
In 2020, revenues generated from precious metals and diamonds represented 94% and 4%, respectively, of total revenues (92% and 6% excluding
offtakes, respectively).

 

     66

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

31. Segment disclosure (continued)

 

Royalty, stream and other interests
- Geographic net assets

 

The following table summarizes the
royalty, stream and other interests by jurisdictions, as at December 31, 2021 and 2020, which is based on the location of the property
related to the royalty, stream or other interests:

 

	 	 	North	 	 	South	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	America(i)	 	 	America	 	 	Australia	 	 	Africa	 	 	Asia	 	 	Europe	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	December 31, 2021	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalties	 	 	595,931	 	 	 	57,673	 	 	 	13,742	 	 	 	20,453	 	 	 	-	 	 	 	15,215	 	 	 	703,014	 
	Streams	 	 	185,031	 	 	 	173,773	 	 	 	-	 	 	 	-	 	 	 	28,272	 	 	 	51,055	 	 	 	438,131	 
	Offtakes	 	 	-	 	 	 	-	 	 	 	8,960	 	 	 	-	 	 	 	4,696	 	 	 	-	 	 	 	13,656	 
	 	 	 	780,962	 	 	 	231,446	 	 	 	22,702	 	 	 	20,453	 	 	 	32,968	 	 	 	66,270	 	 	 	1,154,801	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	December 31, 2020	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Royalties	 	 	576,835	 	 	 	46,374	 	 	 	9,924	 	 	 	8,313	 	 	 	-	 	 	 	15,215	 	 	 	656,661	 
	Streams	 	 	172,879	 	 	 	183,679	 	 	 	1,481	 	 	 	-	 	 	 	28,392	 	 	 	54,510	 	 	 	440,941	 
	Offtakes	 	 	5,690	 	 	 	-	 	 	 	8,119	 	 	 	-	 	 	 	4,717	 	 	 	-	 	 	 	18,526	 
	 	 	 	755,404	 	 	 	230,053	 	 	 	19,524	 	 	 	8,313	 	 	 	33,109	 	 	 	69,725	 	 	 	1,116,128	 

 

(i) 82% of the North America's
net interests are located in Canada as at December 31, 2021 (86% as at December 31, 2020).

 

Exploration, evaluation and development
of mining projects

 

The inventories, mining interests,
plant and equipment and exploration and evaluation assets related to the exploration, evaluation and development of mining projects (excluding
the intersegment transactions) are located in Canada and in Mexico, and are detailed as follow as at December 31, 2021 and 2020:

 

	 	 	December 31, 2021	 	 	December 31, 2020	 
	 	 	Canada	 	 	Mexico	 	 	Total	 	 	Canada	 	 	Mexico	 	 	Total	 
	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 	 	 	$	 
	Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Inventories	 	 	13,933	 	 	 	4,663	 	 	 	18,596	 	 	 	1,599	 	 	 	25,705	 	 	 	27,304	 
	Mining interests, plant and equipment	 	 	455,849	 	 	 	103,483	 	 	 	559,332	 	 	 	344,903	 	 	 	62,097	 	 	 	407,000	 
	Exploration and evaluation assets	 	 	3,635	 	 	 	-	 	 	 	3,635	 	 	 	40,680	 	 	 	1,189	 	 	 	41,869	 
	Total assets	 	 	627,937	 	 	 	75,173	 	 	 	703,110	 	 	 	704,998	 	 	 	97,146	 	 	 	802,144	 

 

     67

     

    

 

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

32. Related party transactions

 

In 2021, interest revenues of $3.6
million were recorded on notes receivable from associates ($2.7 million in 2020). As at December 31, 2021, interests receivable from
associates of $4.6 million are included in amounts receivable ($1.9 million as at December 31, 2020). Loans, notes receivable, and a
convertible debenture from associates amounted to $42.3 million as at December 31, 2021 ($33.4 million as at December 31, 2020) and were
included in other investments on the consolidated balance sheets.

 

Additional transactions with related
parties are described under Notes 6, 7, 12, 13, 33 and 34.

 

33. Commitments

 

Investments in royalty and stream
interests

 

As at December 31, 2021, significant
commitments related to the acquisition of royalties and streams are detailed in the following table:

 

	Company	 	Project
    (asset)	 	Installments	 	Triggering
    events
	Aquila Resources Inc.	 	Back Forty project
 (gold stream)	 	US$5.0 million	 	Receipt of all material permits for the construction and operation
    of the project.
	 	 	 	 	US$25.0 million	 	Pro rata to drawdowns on debt finance facility.
	 	 	 	 	 	 	 
	Falco Resources Ltd.	 	Horne 5 project
 (silver stream)	 	$10.0 million	 	Receipt of all necessary material third-party approvals, licenses,
    rights of way and surface rights on the property.
	 	 	 	 	$35.0 million	 	Receipt of all material construction permits, positive construction
    decision, and raising a minimum of $100.0 million in non-debt financing.
	 	 	 	 	$60.0 million	 	Upon total projected capital expenditure having been demonstrated
    to be financed.
	 	 	 	 	$40.0 million
 (optional)	 	Payable with fourth installment, at sole
    election of Osisko, to increase the silver stream to 100% of payable silver (from 90%).

 

     68

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

33. Commitments (continued)

 

Offtake and stream purchase agreements

 

The following table summarizes the
significant commitments to pay for gold, silver and diamonds to which Osisko has the contractual right pursuant to the associated precious
metals and diamond purchase agreements:

 

	 	 	Attributable
    payable production	 	 	Per ounce/carat	 	 	 	 		 
	 	 	to
    be purchased	 	 	cash
    payment (US$)	 	 	Term of	 	Date of 	 
	Interest	 	Gold	 	 	Silver	 	 	Diamond	 	 	Gold	 	Silver	 	 	Diamond	 	 	agreement	 	contract	 
	Amulsar
    stream(1),(7)	 	 	4.22	%	 	 	62.5	%	 	 	 	 	 	$400	 	$	4	 	 	 	 	 	 	40 years	 	 	November
                                            2015 
 Amended Jan. 2019	 
	Amulsar
    offtake(2),(7)	 	 	81.91	%	 	 	 	 	 	 	 	 	 	Based on
 quotational period	 	 	 	 	 	 	 	 	 	Until delivery of 
 2,110,425
    ounces Au	 	 	November
                                            2015
 Amended Jan. 2019	 
	Back
    Forty stream(3)	 	 	18.5	%	 	 	85	%	 	 	 	 	 	30% spot price 
 (max $600)	 	$	4	 	 	 	 	 	 	Life of mine	 	 	March
                                            2015 (silver) 
 Nov. 2017 (gold) 
 Amended Dec. 2021	 
	Mantos
    Blancos stream(4)	 	 	 	 	 	 	100	%	 	 	 	 	 	 	 	 	8%
                                            spot	 	 	 	 	 	 	Life of mine	 	 	September
                                            2015
 Amended Aug. 2019	 
	Renard stream	 	 	 	 	 	 	 	 	 	 	9.6	%	 	 	 	 	 	 	 	 	Lesser
                                            of
 40% of sales
 price or $40	 	 	40 years	 	 	July
                                            2014
 Amended Oct. 2018	 
	Sasa
    stream(5)	 	 	 	 	 	 	100	%	 	 	 	 	 	 	 	$	5	 	 	 	 	 	 	40 years	 	 	November
                                            2015	 
	Gibraltar
    stream(6)	 	 	 	 	 	 	75	%	 	 	 	 	 	 	 	 	nil	 	 	 	 	 	 	Life of mine	 	 	March
                                            2018 
 Amended April 2020	 

 

(1) Stream
capped at 89,034 ounces of gold and 434,093 ounces of silver delivered. Subject to multiple buy-down options: 50% for US$34.4 million
and US$31.3 million on 2nd and 3rd anniversary of commercial production, respectively.

(2) Offtake
percentage will increase to 84.87% if the operator elects to reduce the gold stream as outlined above. The Amulsar offtake applies to
the sales from the first 2,110,425 ounces of refined gold, of which 1,853,751 ounces are attributable to Osisko Bermuda (less any ounces
delivered pursuant to the Amulsar stream).

(3) The gold stream will be
reduced to 9.25% after the delivery of 105,000 gold ounces.

(4) The
stream percentage shall be payable on 100% of silver until 19,300,000 ounces have been delivered, after which the stream percentage will
be 40%. As of December 31, 2021, a total of 2.7 million ounces of silver have been delivered under the stream agreement.

(5) 3% or consumer price index
(CPI) per ounce price escalation after 2016.

(6) Osisko
will receive from Taseko an amount equal to 100% of Gibco's share of silver production, which represents 75% of Gibraltar mine's production,
until reaching the delivery to Osisko of 5.9 million ounces of silver, and 35% of Gibco's share of silver production thereafter. As of
December 31, 2021, a total of 0.9 million ounces of silver have been delivered under the stream agreement.

(7) In
December 2019, Lydian International Limited ("Lydian"), the owner of the Amulsar project, was granted protection under the
Companies' Creditors Arrangement Act. In July 2020, Osisko became a shareholder of Lydian following a credit bid transaction (35.6%
as at December 31, 2021).

 

Mining equipment and service contracts

 

As of December 31, 2021, Osisko Development
had purchase commitments for mining equipment and service contracts amounting to $40.9 million, including $33.3 million payable in 2022
and $7.6 million in 2023.

 

     69

     

    

 

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

34. Subsequent
events

Normal course issuer bid

 

From January 1, 2022 to February
24, 2022, the Company purchased for cancellation a total of 347,492 common shares for $4.9 million (average acquisition price per share
of $14.04) under its 2022 NCIB program.

 

Acquisition of Tintic by Osisko
Development

 

On January 25, 2022, Osisko Development
announced that it has entered into definitive agreements (together, the "Agreements") with IG Tintic LLC and Ruby Hollow LLC
(together the "Vendors") to acquire 100% of Tintic Consolidated Metals LLC ("Tintic") (the "Transaction").
On completion of the Transaction, Osisko Development will acquire 100% ownership of the producing Trixie Mine ("Trixie"), as
well as mineral claims covering more than 17,000 acres (including over 14,200 acres of which are patented) in Central Utah's historic
Tintic Mining District.

 

Pursuant to the terms of the Transaction,
Osisko Development will acquire 100% of Tintic from the Vendors for aggregate payments at closing totaling approximately US$177 million,
of which approximately US$54 million will be paid in cash and approximately US$123 million will be paid by the issuance of 35,099,611
common shares of Osisko Development at a price of C$4.32 per share.

 

In addition, Osisko Development will
pay the Vendors: (i) deferred payments of US$12.5 million payable in equal instalments annually over five years in cash or common shares
at Osisko Development's election; (ii) two 1% NSR royalty grants, each with a 50% buyback right in favour of Osisko Development for US$7.5
million which is exercisable within 5 years; (iii) a right to receive the financial equivalent of 10% of the net smelter returns from
stockpiled ore extracted from Trixie since January 1, 2018 and sitting on surface; (iv) the set-off of a US$5 million loan owed to Osisko
Development; and (v) US$10 million contingent upon commencement of production at the Burgin Mine.

 

Osisko Bermuda has entered into a
non-binding metals stream term sheet ("Stream") with a wholly-owned subsidiary of Osisko Development. The upfront cash payment
under the Stream, of at least US$20 million and up to US$40 million, will be used by Osisko Development to fund a portion of the cash
consideration payable on closing of the Transaction. In the event that the full amount of US$40 million is drawn, Osisko Development
will deliver to Osisko Bermuda a maximum of 5% of all metals produced from the Tintic property up to a maximum of 53,400 ounces of refined
gold and 4.0% thereafter.

 

The Transaction is expected to close
in the second quarter of 2022, subject to satisfaction of regulatory approvals and customary closing conditions.

 

Non-brokered private placement
by Osisko Development

 

On February 7, 2022, Osisko Development
announced a non-brokered private placement ("Offering") of 31,500,000 subscription receipts of Osisko Development ("Subscription
Receipts") at a price of US$3.50 per Subscription Receipt for aggregate gross proceeds of up to approximately US$110.3 million.
Each Subscription Receipt issued pursuant to the Offering will entitle the holder thereof to receive, upon the satisfaction of the Escrow
Release Condition (as defined below) and without payment of additional consideration, one unit of Osisko Development (each, a "Unit").
Each Unit will comprise of one common share in the capital of Osisko Development (each, a "Common Share") and one Common Share
purchase warrant (each whole warrant, a "Warrant"), with each Warrant entitling the holder thereof to purchase one additional
Common Share at a price of US$6.00 per Common Share for a period of five years following the date of issue. The gross proceeds of the
Offering will be held in escrow pending, among other things, the completion of the listing of the Common Shares on the New York Stock
Exchange ("Escrow Release Condition"), which is contingent upon Osisko Development meeting the listing requirements of the
New York Stock Exchange ("NYSE") and may involve, among other things, a consolidation of the Common Shares. If the Escrow Release
Condition is met, Osisko Development anticipates that the proceeds of the Offering will be used to advance the development of Osisko
Development's mineral assets and for general corporate purposes. The Offering is subject to regulatory approvals.

 

     70

     

    

  

	Osisko Gold Royalties Ltd

    Notes to the Consolidated Financial Statements

    For the years ended December 31, 2021 and 2020

	(tabular amounts expressed in thousands of Canadian dollars, except per share amounts)

 

34. Subsequent events
(continued)

 

"Bought deal" private
placement by Osisko Development

 

On February 9, 2022, Osisko Development
announced a "bought deal" private placement for an aggregate of 20,225,000 subscription receipts of Osisko Development (the
 "Bought Deal Subscription Receipts") and/or units of Osisko Development (the "Bought Deal Units" and, together with
the Bought Deal Subscription Receipts, the "Offered Securities") at a price of $4.45 per Offered Security (the "Issue
Price"), for aggregate gross proceeds of $90.0 million (the " Bought Deal Offering"). Each Bought Deal Unit will be comprised
of one Common Share of Osisko Development and one common share purchase warrant (each, a "Bought Deal Warrant"), with each
Bought Deal Warrant entitling the holder thereof to purchase one additional Common Share at a price of $7.60 per Common Share for a period
of 60 months following the closing date of the Bought Deal Offering. Each Bought Deal Subscription Receipt will entitle the holder thereof
to receive, upon the satisfaction of the escrow release condition (as defined below), and without payment of additional consideration,
one Bought Deal Unit. Osisko Development has granted the Underwriters an option, exercisable in whole or in part up to 48 hours prior
to the closing of the Bought Deal Offering, to purchase up to an additional aggregate amount of 3,033,750 Bought Deal Subscription Receipts
and/or Bought Deal Units at the Issue Price, for additional gross proceeds of up to $13.5 million. The gross proceeds from the sale of
the Bought Deal Subscription Receipts, net of expenses of the underwriters and 50% of the commissions payable to the underwriters in
respect of the Bought Deal Subscription Receipts, will be placed into escrow and will be released immediately prior to the completion
of Osisko Development's proposed acquisition of Tintic. If the escrow release condition is not satisfied prior to the date that is 90
days from the closing of the Bought Deal Offering, the escrowed proceeds of the Bought Deal Offering will be returned to the holders
of the Bought Deal Subscription Receipts. Osisko Development intends to use the net proceeds of the Bought Deal Offering to advance the
development of the company's mineral assets, including the Cariboo gold project, the San Antonio gold project and properties held by
Tintic assuming the completion of the Tintic Acquisition, and for general corporate purposes. The closing date of the Bought Deal Offering
is expected to occur on or about March 2, 2022, and is subject to certain customary conditions.

 

Warrants

 

On February 18, 2022, a total of
5,480,000 Osisko warrants expired unexercised.

 

Dividend

 

On February 24, 2022, the Board of
Directors declared a quarterly dividend of $0.055 per common share payable on April 14, 2022 to shareholders of record as of the close
of business on March 31, 2022.

 

     71

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]