Osisko Mining Corporation

Osisko Mining Corporation

August 03, 2005 08:00 ET

Osisko Corporate Update

MONTREAL, QUEBEC--(CCNMatthews - Aug. 3, 2005) - Osisko Exploration Ltd. (TSX VENTURE:OSK) announces that, following the annual general meeting of the shareholders held on June 30, 2005, in Montreal, Quebec, the directors of the Corporation, namely Robert Wares, Sean Roosen, Norman Storm, Titus Gebel and Lorne Woods were re-elected by shareholders (51.4 percent participation) to hold office until the close of the Company's next annual meeting. Villeneuve & Venne of Montreal, Quebec were appointed as auditors of the Company for the 2005 fiscal year.

Following a meeting of the Board of Directors held on July 23, 2005, officers of the Company were re-appointed with no changes to positions. A new audit committee was appointed and will consist of Robert Wares, Titus Gebel and Norman Storm.

The company also wishes to announce that Eurasia Holdings AG of Germany, principal shareholder of the Company, has exercised 3,400,000 warrants at a price of $0.30 per share, yielding proceeds of $1,020,000. Eurasia now holds 16,000,500 shares of the Company, or 45.1% of issued shares. Funds will be used for general corporate purposes and ongoing drilling on the Canadian Malartic property.

In other developments, the Company wishes to announce that, starting August 1st and for an initial four month term, it has engaged the services of Mr. William Nichols of Shadowman Consulting Inc, Vernon, BC, for investor relation services. Effective immediately, Shadowman Consulting will be responsible for assisting management in strengthening the Company's profile and visibility amongst the Canadian financial and investment communities, particularly retail investors. Terms of the agreement include service fees of $6,000 per month and granting of 200,000 stock options, exercisable over a one year period at $0.35 per share. The initial four month term may be extended subject to mutual agreement of the parties, and either party may cancel the agreement at any time upon written notice to the other party. The terms and conditions of this agreement are subject to regulatory approval.

Osisko plans to pursue its current drill program on the Canadian Malartic property until late fall 2005, with the objective of defining a preliminary, inferred gold resource on the property as soon as sufficient data have been compiled.

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