Abitibi Royalties Canadian Malartic Mine Royalties & Corporate Update

VAL-D'OR, QUÉBEC--(Marketwired - July 31, 2017) - Abitibi Royalties Inc. (TSX VENTURE:RZZ)("Abitibi Royalties" or the "Company") is pleased to provide an update on the Company's various net smelter royalties ("NSR") at the Canadian Malartic Mine, near Val-d'Or, Québec. The Canadian Malartic Mine is jointly operated by Agnico Eagle Mines Limited ("Agnico Eagle") and Yamana Gold Inc. ("Yamana") through the Canadian Malartic General Partnership ("Partnership").

Odyssey Zones Exploration Update (3% NSR)

Abitibi Royalties holds a 3% NSR on the various Odyssey Zones (Odyssey North, Odyssey South, Internal Zones), located within the Malartic CHL Property boundary, which is east of the Canadian Malartic open pit (Fig. 1).

During the second quarter of 2017, 35 holes (totaling 25,759 metres) were drilled at Odyssey. Yamana reports in its Q2-2017 MD&A that the focus at Odyssey was on tighter spaced drilling of the generally higher-grade Internal Zones. The drill program returned encouraging grades over multi-metre widths testing the Jupiter North, Centre and East zones, the largest of the many crossing internal structures. Yamana also stated that three new mineralized structures were discovered during the quarter. Agnico Eagle stated in its Q2-2017 news release that drilling also focused on expanding/infilling the Odyssey South Zone.

In February the Partnership released a number of significant drill results from the newly discovered Internal Zones and were not included in the initial inferred Odyssey Project resource estimate. Agnico Eagle states in its Q2-2017 news release that drilling carried out to date suggests that these Internal Zones could increase the mineral resources and enhance the economics of the project by adding higher grade mineral resources that would require minimal additional infrastructure to access. To view a plan map and cross section of the Internal Zones (labeled as the Jupiter Zone and Marianne Zone) please see Yamana's Investor Day 2017 Presentation (May 5, 2017) that can be found on their corporate website www.yamana.com.

As of December 31, 2016 the extreme northwest portion of the Odyssey South resource extended onto the Malartic CHL property where the Company holds a 3% NSR. This portion of Odyssey South (Inferred Resource: 4,890 ounces @ 1.38 gpt within 110,294 tonnes) was included in the Company's inferred resource update for the Odyssey Project (March 10, 2017 news release). Although the resource is currently small relative to Odyssey North, other zones where the Company holds an NSR and Odyssey South as a whole, it is encouraging that Odyssey South extends northwest onto the ground covered by the Company's 3% NSR.

Near Pit Targets Update (2-3% NSR)

Exploration programs at the Canadian Malartic Mine are ongoing to evaluate several Near Pit/Underground Targets and the potential to mine portions of the East Malartic deposit, which is located adjacent to the Canadian Malartic Mine.

Abitibi Royalties holds an NSR on several of the Near Pit/Underground Targets that were previously outlined by the Partnership that include the eastern portion of the Gouldie Zone (2% NSR), the Charlie Zone (2% NSR), eastern portion of the Barnat Extension/Barnat South Wall Contact (3% NSR) and the Sheehan Zone (3% NSR) (Fig. 2). Abitibi Royalties' 3% NSR covers portions of the historic East Malartic Mine (Fig. 3).

As previously released by Abitibi Royalties, a zone exists at the bottom of East Malartic Mine called the Norrie Zone, which straddles the property where the Company holds a 3% NSR and where several wide intersections of gold mineralization were previously encountered by underground drilling (historic drilling) and surface drilling (2008 drilling) (Fig. 3). For further information on the Norrie Zone and previously released drill results, please click here (August 19, 2014 news release).

Jeffrey and Barnat Extension Deposits Permitting Update (3% NSR)

The Company holds a 3% NSR on the Jeffrey Zone and the eastern portion of the Barnat Extension (Barnat East), both of which are included in the proposed expansion of the Canadian Malartic Mine (Fig. 1).

On April 19, 2017, the Government of Québec announced the issuance of two decrees authorizing the Partnership to carry out the proposed expansion of the Canadian Malartic Mine and the diversion of Highway 117. The preparatory work for the proposed expansion will begin after obtaining the certificates of authorization to be issued by the Ministère du Développement durable, de l'Environnement et de la Lutte contre les changements climatiques.

As last communicated by the Partnership, production from the Jeffrey Zone and the Barnat Extension where the Company holds a 3% NSR is expected to commence in 2018. Further details regarding the Company's royalty production schedule for 2018-2019 can be found here.

Technical Information

Abitibi Royalties has not received any of the Q2-2017 drill hole data from the Internal Zones, Odyssey South, Near Pit/Underground Targets, East Malartic deposit or new mineralized structures. The Company cannot make any assurances that all or any of the recent drilling completed at the Internal Zones, Odyssey South, Near Pit/Underground Targets, East Malartic deposit or new mineralized structures during Q2-2017 encountered mineralization where Abitibi Royalties holds an NSR. As of December 31, 2016, the Company believes that its 3% NSR covered all of Odyssey North with the mineralization appearing close to the southern property boundary at the east end of the deposit (Fig. 1). As of December 31, 2016 the Company's 3% NSR covered the extreme northwest portion of Odyssey South (Fig. 1). The Company believes that the majority of the drill assays intercepts that have been publicly released from the Internal Zones appear to be within the Malartic CHL Property where the Company holds a 3% NSR or straddling the property boundary to the south. Although the Company believes the drill results from the Internal Zones could have a positive impact on its 3% NSR, the Company has not independently verified the drill hole data and cannot confirm, nor can there be any assurance, that all or any of the previous or current drilling from the Internal Zones encountered mineralization on the Malartic CHL Property where the Company holds a 3% NSR. Additionally, the Company has not received or reviewed the drill hole locations for the East Malartic deposit or if the drilling encountered mineralization where Abitibi Royalties holds a 3% NSR. The East Malartic deposit is believed to be part of the historic East Malartic Mine, where the Company holds a 3% NSR on portions of the historic mine (Fig. 3). The full impact of the additional drilling will not be known until the mine operators calculate an updated reserve and resource estimate for the portions that are attributable to the Company's NSR interest. Full details of the last drill assays released by the Partnership, including coordinates for the Internal Zones and plan map for the Odyssey Project can be found in Agnico Eagle's or Yamana's Q4-2016 news release dated February 15, 2017 and February 16, 2017, respectively. Additional information for the Odyssey Project can be found on the Company's website www.abitibiroyalties.com.

QUALIFIED PERSON

Glenn Mullan, Chairman, is the Qualified Person (as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) who has reviewed this news release based on the data provided and is responsible for the technical information reported herein. Information contained in this news release (excluding figures or as otherwise stated) is derived from information contained in Agnico Eagle's Q2-2017 news release (July 26, 2017), Yamana's Q2-2017 news release (July 27, 2017), Yamana's Q2-MD&A (July 27, 2017), Yamana's Investor Day webcast and presentation (May 5, 2017), Agnico Eagle's Q4-2016 news release (February 15, 2017), Yamana's Q4-2016 news release (February 16, 2017) and without independent verification.

Investments and Normal Course Issuer Bid Update

As of the date of this news release, the Company's investment income (Dividends, Covered Call and Put Options) in 2017 totals approximately CDN$990,000. The proceeds have been used to purchase additional royalties under the Abitibi Royalty Search, share repurchases under its Normal Course Issuer Bid ("NCIB") and for general corporate purposes.

Under its current NCIB, Abitibi Royalties has acquired through the TSX-Venture Exchange, an additional 8,500 shares (since last reported on May 8, 2017) for a total of 60,500 shares at an average cost of CDN$9.23 per share. The Company now has 11,400,689 shares outstanding (as of July 28, 2017).

For more information on the Company's investments, dividends, individual Covered Call and Put contracts and NCIB, please see the Company's Q1-2017 MD&A (prepared as of May 15^th, 2017) and Q1-2017 Financial Statements, which can be found on the Company's website www.abitibiroyalties.com.

About Abitibi Royalties

Abitibi Royalties holds a 3% NSR on the Odyssey North and other portions of the Odyssey Project, Jeffrey Zone, eastern portion of the Barnat Extension and parts of the historic East Malartic Mine, where the mineralization is located inside the Malartic CHL property 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. The Company owns common shares in Yamana Gold and Agnico Eagle Mines (Market value CDN$31.2 million - July 28, 2017), plus cash (Cash balance $7.7 million - Q1 March 31, 2017) of approximately CDN$39 million. The Company is debt free.

Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.2% and 12.2% interest in Abitibi Royalties, respectively.

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.

To view Fig. 1 - Plan Map of Canadian Malartic Mine & Abitibi Royalties' NSR Holdings, please follow this link: http://abitibiroyalties.com/maps/rzz-assets-nr-07312017-fig1.jpg

To view Fig. 2 - Plan Map of Canadian Malartic Mine & Near Mine Targets Covered by Abitibi Royalties' NSR, please follow this link: http://abitibiroyalties.com/maps/rzz-assets-nr-07312017-fig2.jpg

To view Fig. 3 - Schematic Longitudinal Section of Malartic CHL Property, please visit this link: http://abitibiroyalties.com/maps/rzz-longitudinal-nr-07312017-fig3.jpg