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Osisko Provides Resource Update for Hammond Reef Project

MONTREAL, QUEBEC -- (Marketwire) -- 01/28/13 -- Osisko Mining Corporation (TSX:OSK)(FRANKFURT:EWX) is pleased to provide an updated resource estimate for its 100%-owned Hammond Reef gold project, located near Atikokan, Ontario. Additional drilling by Osisko has allowed for upgrading the bulk of the resource to the measured and indicated (M&I) categories, which will lead to conversion to reserves once the ongoing feasibility is completed. This update reports both global and in-pit resources in all categories.

Key points:

--  Global M&I resources currently stand at 5.43 million ounces gold at an
    average grade of 0.86 g/t Au and the global inferred resource stands at
    1.75 million ounces gold at an average grade of 0.72 g/t Au (based on
    0.50 g/t Au lower cut-off; see table below). 
    
--  Global M&I resources currently stand at 7.47 million ounces gold at an
    average grade of 0.65 g/t Au and the global inferred resource stands at
    3.12 million ounces gold at an average grade of 0.52 g/t Au, based on a
    0.30 g/t Au lower cut-off; see table below). 
    
--  The in-pit M&I resource is now 5.31 million ounces at an undiluted grade
    of 0.72 g/t gold, based on a Whittle-optimized pit shell using a gold
    price of US$1,400 per ounce. The in-pit inferred resource adds 0.28
    million ounces at an undiluted grade of 0.65 g/t Au. Overall pit
    parameters include an average lower cut-off grade of 0.32 grams per
    tonne gold and a low waste/ore strip ratio of 1.01. 
    
--  At US$2,000 per ounce gold, the in-pit M&I resource increases to 7.87
    million ounces and the inferred resource increases to 2.12 million
    ounces at an average grade of 0.56 grams per tonne gold. 
    
--  The A (Main) and Mitta Zones form a contiguous deposit (west pit), while
    the 41 zone is separate (east pit). The system was modeled as two pits
    with a total strike length of 2500 metres (sections 870E to 3370E).
    Exploration drilling around the Mitta and A zones has been successful in
    extending the deposit in the down-dip (southeast) direction, to a
    maximum distance (along dip) of 850 metres. 

Sean Roosen, President and CEO of Osisko, commented: "We are very pleased with Osisko's updated resource estimate for the Hammond Reef Project, which has achieved a significant increase with respect to the initial acquisition from Brett Resources estimate. It is important to note that the new in-pit resource for Hammond Reef has a low strip ratio of 1.01 and is quite robust, as it is based on current processing and mining costs at Canadian Malartic, adjusted for Ontario power rates. With over 625,000 metres of drilling completed, 76% of the in-pit resource is contained in the measured category, which is the highest achievable confidence level."

SGS Canada Inc. of Montreal, Quebec ("SGS") are the independent resource estimate consultants who have authorized the release of the following estimates. Global M&I resources currently stand at 5.43 million ounces gold at an average grade of 0.86 g/t Au and the global inferred resource stands at 1.75 million ounces gold at an average grade of 0.72 g/t Au. The table below summarizes the SGS estimates using variable lower cut-off grades:

                   Hammond Reef Global Resource Estimates                   
                                                                            
----------------------------------------------------------------------------
Category                  Grade (g/t)   Tonnes (M)    Cut-off (g/t)   Oz (M)
----------------------------------------------------------------------------
Measured                         0.67        212.9              0.2     4.60
----------------------------------------------------------------------------
Indicated                        0.44        268.7              0.2     3.84
----------------------------------------------------------------------------
M+I                              0.54        481.6              0.2     8.44
----------------------------------------------------------------------------
Inferred                         0.44        271.8              0.2     3.80
----------------------------------------------------------------------------
Measured                         0.74        184.7              0.3     4.38
----------------------------------------------------------------------------
Indicated                        0.55        174.4              0.3     3.09
----------------------------------------------------------------------------
M+I                              0.65        359.1              0.3     7.47
----------------------------------------------------------------------------
Inferred                         0.52        185.2              0.3     3.12
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Measured                         0.90        123.5              0.5     3.59
----------------------------------------------------------------------------
Indicated                        0.78         72.9              0.5     1.83
----------------------------------------------------------------------------
M+I                              0.86        196.4              0.5     5.43
----------------------------------------------------------------------------
Inferred                         0.72         75.7              0.5     1.75
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Measured                         1.09         76.8              0.7     2.70
----------------------------------------------------------------------------
Indicated                        1.03         32.3              0.7     1.07
----------------------------------------------------------------------------
M+I                              1.07        109.2              0.7     3.77
----------------------------------------------------------------------------
Inferred                         0.96         27.4              0.7     0.84
----------------------------------------------------------------------------
Measured                         1.29         46.8              0.9     1.94
----------------------------------------------------------------------------
Indicated                        1.28         16.0              0.9     0.66
----------------------------------------------------------------------------
M+I                              1.28         62.8              0.9     2.59
----------------------------------------------------------------------------
Inferred                         1.22         11.0              0.9     0.43
----------------------------------------------------------------------------
Measured                         1.39         36.2              1.0     1.61
----------------------------------------------------------------------------
Indicated                        1.40         11.6              1.0     0.52
----------------------------------------------------------------------------
M+I                              1.39         14.7              1.0     2.13
----------------------------------------------------------------------------
Inferred                         1.35          7.5              1.0     0.32
----------------------------------------------------------------------------

G Mining Services Inc of Montreal, in collaboration with SGS, also estimated resources within a Whittle-optimized pit shell using a base case gold price of US$1,400 per ounce and pit limits that are unconstrained by lakeshores. The optimization yielded two distinct pits separated by approximately 200 metres with an average strip ratio of 1.01. The total in-pit M&I resource for the Hammond Reef gold deposit is 5.31 million ounces of gold at an average undiluted grade of 0.72 g/t Au, based on a derived lower cut-off grade of 0.31 g/t Au (west pit) and 0.33 g/t Au (east pit).

 Hammond Reef Undiluted Resource Estimates within US$1,400 Whittle pit shell

----------------------------------------------------------------------------
PIT AREA     Category    Grade (g/t)    Tonnes (M)    Cut-off (g/t)   Oz (M)
----------------------------------------------------------------------------
West         Measured           0.75         151.2             0.31     3.63
----------------------------------------------------------------------------
West        Indicated           0.58          44.7             0.31     0.83
----------------------------------------------------------------------------
West              M+I           0.71         195.9             0.31     4.46
----------------------------------------------------------------------------
West         Inferred           0.65          13.1             0.31     0.27
----------------------------------------------------------------------------
East         Measured           0.80          24.1             0.33     0.62
----------------------------------------------------------------------------
East        Indicated           0.75          9.43             0.33     0.23
----------------------------------------------------------------------------
East              M+I           0.79          33.6             0.33     0.85
----------------------------------------------------------------------------
East         Inferred           0.50          0.27             0.33     0.01
----------------------------------------------------------------------------
----------------------------------------------------------------------------
All          Measured           0.75         175.3             0.32     4.25
----------------------------------------------------------------------------
All         Indicated           0.61          54.1             0.32     1.06
----------------------------------------------------------------------------
All               M+I           0.72         229.5             0.32     5.31
----------------------------------------------------------------------------
All          Inferred           0.65          13.3             0.32     0.28
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sensitivity of the undiluted in-pit resource (based on variable minimum cut-off grades) to gold price is as follows:

   Sensitivity of Hammond Reef in-pit Resource Estimates to variable gold   
                                   prices                                   
                                                                            
----------------------------------------------------------------------------
Gold Price (US$)         Cut-off  Category  Grade (g/t)  Tonnes (M)   Oz (M)
----------------------------------------------------------------------------
$1,000                      0.45       M&I         0.86       140.6     3.90
----------------------------------------------------------------------------
$1,000                      0.45  Inferred         0.77         8.2     0.20
----------------------------------------------------------------------------
$1,200                      0.37       M&I         0.78       183.5     4.61
----------------------------------------------------------------------------
$1,200                      0.37  Inferred         0.70        11.0     0.25
----------------------------------------------------------------------------
$1,400                      0.32       M&I         0.72       229.5     5.31
----------------------------------------------------------------------------
$1,400                      0.32  Inferred         0.65        13.3     0.28
----------------------------------------------------------------------------
$1,600                      0.28       M&I         0.66       313.1     6.66
----------------------------------------------------------------------------
$1,600                      0.28  Inferred         0.60        29.9     0.57
----------------------------------------------------------------------------
$1,800                      0.25       M&I         0.62       368.7     7.31
----------------------------------------------------------------------------
$1,800                      0.25  Inferred         0.52        61.3     1.02
----------------------------------------------------------------------------
$2,000                      0.23       M&I         0.58       419.7     7.87
----------------------------------------------------------------------------
$2,000                      0.23  Inferred         0.49       136.1     2.12
----------------------------------------------------------------------------
$2,200                      0.21       M&I         0.56       448.8     8.11
----------------------------------------------------------------------------
$2,200                      0.21  Inferred         0.47       167.8     2.53
----------------------------------------------------------------------------

Details on the parameters of the resource estimates are as follows:

--  The database comprised a total of 2,144 holes for 629,367 metres of
    drilling completed and assayed by Brett Resources and Osisko as of the
    end of April 2012 on a minimum 25 m x 25 m grid. (All NQ core assays
    reported by Osisko were obtained by standard 50 g fire assaying-AA
    finish or gravimetric finish at ALS Chemex laboratories.) 
    
--  The database also comprised a total of 413,412 assays with an average of
    1.5 metre per sample for a total of 618,596 assayed metres. 
    
--  The estimates were done using Ordinary Kriging (OK) interpolation as the
    geostatistical method based on 5.0 metres analytical composites. 
    
--  All estimates are based on a block dimension of 10 metres E, 10 metres N
    and 12 metres height with estimation parameters determined by
    variography. 
    
--  Geological interpretation identified a Main domain and several smaller
    domains (that surround the Main domain. The Main domain is a tabular
    zone that dips to the southeast and includes the A, Mitta and 41 zones
    on surface. The RAB was recognized as a separate southern domain that
    was ignored for the purposes of the global and in-pit resource estimate.
    
--  Calculations are based on original samples capped to a maximum of 15 g/t
    Au for the Main domain, resulting in 99 capped intervals with an overall
    gold loss of 2.0%. Capping for the smaller domains was at 10 g/t for
    variable gold losses between 0.8% and 2.2%. All 5-metres composites are
    calculated based on cut original data. 
    
--  Tonnage estimates are based on an average rock density of 2.74
    tonnes/cubic metre for the altered tonalite host rock. 
    
--  The global resource estimates using the lower cut-off of 0.50 g/t Au is
    emphasized for reporting purposes, which is higher than the in-pit cut-
    off of 0.31-0.33 g/t Au estimated for the US$1,400 Whittle shell. 
    
--  With respect to the previously published in-pit inferred resource (see
    November 7, 2011 press release), although base-case gold price was
    increased from US$1,200/oz to US$1,400/oz, the increased unit processing
    cost (from US$6.66/t to US$8.75/t) and mining costs (from US$1.61/t to
    US$1.98/t) and decreased recovery (from 91% to 87-88%) have made the new
    pit shells slightly smaller than before.  

The two US$1,400 Whittle shells have approximate maximum dimensions of 2,500 metres in total length, 1,050 metres in width and a vertical depth to 380 metres. Pit optimization parameters are summarized in the table below:

----------------------------------------------------------------------------
Parameter                                          Unit                Value
----------------------------------------------------------------------------
Gold price                                       US$/oz                 1400
----------------------------------------------------------------------------
Royalties                                             %                 2.0%
----------------------------------------------------------------------------
Refining cost                                    US$/oz                  5.0
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Processing cost                            US$/t milled                 8.75
----------------------------------------------------------------------------
Administration                             US$/t milled                 1.75
----------------------------------------------------------------------------
Rehabilitation                             US$/t milled                 0.25
----------------------------------------------------------------------------
Sustaining capital                         US$/t milled                 0.52
----------------------------------------------------------------------------
Total ore cost                             US$/t milled                11.27
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Recovery West Pit                                     %                88.0%
----------------------------------------------------------------------------
Recovery East Pit                                     %                87.0%
----------------------------------------------------------------------------
Mining dilution                                       %                   0%
----------------------------------------------------------------------------
Mining loss                                           %                   0%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Cut-off grade West Pit                            g/tAu                 0.31
----------------------------------------------------------------------------
Cut-off grade East Pit                            g/tAu                 0.33
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Base mining cost rock                       US$/t mined                 1.98
----------------------------------------------------------------------------
Reference elevation                                   m                  430
----------------------------------------------------------------------------
Cost per bench below                  US$/bench/t mined                0.046
----------------------------------------------------------------------------
Mining cost overburden                      US$/t mined                 3.50
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Max pit slope West Pit                         degrees   From 41.3 to 50.3
----------------------------------------------------------------------------
Max pit slope East Pit                         degrees   From 45.4 to 48.6
----------------------------------------------------------------------------
Density overburden                                 t/m3                  2.0
----------------------------------------------------------------------------

About Hammond Reef

Osisko acquired the Hammond Reef project through the acquisition of Brett Resources in August 2010. To date, Osisko has drilled over 629,000 metres at Hammond Reef, is completing an EIA that will be filed in accordance with the accepted terms of reference and will table a feasibility study in the first half of 2013. The project is located approximately 20 kilometres from grid power, and is located 23 kilometres north of the town of Atikokan. Osisko signed a Resource Sharing Agreement with eight first nations groups in December 2010 as well as a Memorandum of Understanding with the Metis Nation of Ontario in April 2012.

About Osisko Mining Corporation

Osisko Mining Corporation operates the Canadian Malartic Gold Mine in Malartic, Quebec and is pursuing exploration on a number of properties, including the Hammond Reef Gold and Upper Beaver projects in Northern Ontario.

Mr. Michel Dagbert, Eng. of SGS Canada Inc. (global resource estimate) and Mr. Louis-Pierre Gignac, Eng. of G Mining Services Inc. (Whittle-optimized in-pit resource estimate) are the Qualified Persons responsible for the technical information reported herein, including verification of the data disclosed. Ms. Anne Charland, P. Geo. and Vice-President of Exploration Canada for Osisko, has also reviewed and approved the technical contents of this news release.

Cautionary Notes Concerning Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically.

Forward-Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Osisko expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, the commencement of commercial production. Although Osisko believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation, that all technical, economical and financial conditions will be met in order to warrant further development of the project, such statements are not guarantees of future performance and actual results may 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 gold prices, access to skilled consultants, mining development personnel, results of exploration and development activities, Osisko's limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in Osisko's most recent Annual Information Form and in the most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Osisko cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Osisko believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

Contacts:
John Burzynski
Vice-President Corporate Development
(416) 363-8653
www.osisko.com

Sylvie Prud'homme
Director of Investor Relations
(514) 735-7131
Toll Free: 1-888-674-7563

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