Abitibi Royalties Update on Royalties at Canadian Malartic

Val-d’Or, Québec, November 2nd, 2015Abitibi Royalties Inc. (RZZ-TSX-V: “Abitibi Royalties” or the “Company”) is pleased to provide an update on the Company’s net smelter royalties (“NSR”) at the Canadian Malartic Mine near Val-d’Or, Québec.

Odyssey North Discovery (3% NSR)

Abitibi Royalties holds a 3% NSR on the Odyssey North Zone located inside the Malartic CHL property. Odyssey North is proximate to the Odyssey South Zone and together they comprise the “Odyssey Zones” or “Odyssey” that is east of the main Canadian Malartic Mine open pit.  The mine’s operators Agnico Eagle Mines Limited (“Agnico Eagle”) and Yamana Gold Inc. (Yamana) that together operate the Canadian Malartic Mine and Malartic CHL property, recently reported as of the end of the third quarter (September 30, 2015) 28 holes totaling 24,537 metres had been completed on the Odyssey Zones and that drilling and data compilation is continuing into the fourth quarter.  During the Yamana third quarter conference call (October 30, 2015), it was stated that the operators are continuing to have exploration success at Odyssey.

Drilling at the Odyssey Zones recommenced earlier this year with an initial budget of approximately Cdn$3.5 million that included 25,500 metres of drilling. Management believes it is encouraging that the budgeted metres appear to have been essentially met and that the operators are continuing to drill.  In February the Company and the operators agreed upon an approximate value of between Cdn$20-$30 million for Abitibi Royalties’ 3% NSR on the Malartic CHL property with the majority of the value being ascribed to the Odyssey North Zone.  The value was based on a discounted cash flow analysis that included certain assumptions being met in the future such as potential deposit size, production rates, start date and gold prices that was provided by the operators.  Abitibi Royalties believes, based on information disclosed by the operators, that exploration at Odyssey is meeting these expectations. However, since Abitibi Royalties has not received any additional assay results or drill hole locations, there are no assurances that all or any of the recent drilling at the Odyssey Zones has encountered additional mineralization on the Malartic CHL property that is covered by the Company’s 3% NSR.

Barnat Extension and Jeffrey Deposits (3% NSR)

The Company holds a 3% NSR on the eastern portion of the Barnat Extension and the Jeffrey gold deposit that are located within the Malartic CHL property. Both areas were included in the submitted Environmental Impact Assessment (“EIA”) Project Notification Form for the purpose of being mined. The formal EIA was submitted in February 2015.  Agnico Eagle indicates in their third quarter results (October 28, 2015) that the receipt of the necessary permits is potentially expected by year-end 2016.

About Abitibi Royalties
Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, the eastern portion of the Barnat Extension and Jeffrey Zone and a 2% NSR on portions of the Gouldie and Charlie zones all at the Canadian Malartic Mine near Val-d’Or, Québec. In addition, the Company is building a portfolio of royalties on early stage properties near producing mines and it holds 100% title to the Luc Bourdon and Bourdon West Prospects in the Ring of Fire, Ontario.  The Company owns 3,549,695 shares of Yamana Gold, 444,197 shares of Agnico Eagle Mines with a combined market value of approximately $26.6 million, approximately $1.7 million in cash with no long-term debt.

Golden Valley Mines and Rob McEwen hold approximately 51.3% and 8.7% interest in Abitibi Royalties, respectively. 

For additional information, please contact:
Ian J. Ball - President & CEO
2864 chemin Sullivan
Val-d’Or, Québec J9P 0B9
Tel.: 416-346-4680
Email: ian.ball@abitibiroyalties.com

Forward Looking Statements:
This news release contains certain statements that may be deemed “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” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.