Notice to Readers:

The following discussion contains references to Inferred mineral resources in several places. Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or any part of inferred mineral resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Introduction:

ValGold holds a 2% net smelter royalty on a significant portion of the Garrison Gold Project owned 100% by Osisko Mining Inc. (Osisko), including the claims which were the subject of a NI 43-101 compliant resource estimate in 2014 (see NI 43-1010 Resource Estimate below). The Project is situated directly on the prolific Destor-Porcupine Fault Zone (DPFZ) host to numerous gold mines.

Osisko took over the Garrison Project in December 2015 when it acquired Northern Gold Mining Inc. (NGM) and announced the start of a 20,000 metre drill program in July 2016. To-date, it has drilled 80,000 metres and made 11 announcements of drill results (the most recent on January 31, 2018) on all three main deposits on the property which can be reviewed on its website at osiskomining.com/news/ and under its name on www.sedar.com.

Readers should note that ValGold's Royalty covers only a portion of the 903 Zone and does not include the extension of the JD Zone in the JonPol deposit (see below).

Overview:

The Garrison Gold Project is located in the Province of Ontario, approximately 100 km east of Timmins and 40 km north of Kirkland Lake. It is comprised of 63 patented mining claims totaling 766 hectares (plus three unpatented claims) and is 100% owned by Osisko, which acquired the property through its acquisition of NGM in December 2015.

The Garrison Project is situated on the prolific DPFZ just off paved Highway 101 which is home to several producing mines in a region with plentiful labour, hydro power, mining and exploration contractors and supplies nearby. Geologically, it is located in the western portion of the Abitibi Sub-province, an area largely covered in volcanic rocks and known to host numerous gold deposits, most of which occur near the DPFZ or the Malartic-Cadillac Fault Zone or the major splays off of them.

ValGold holds a 2% net smelter royalty (ValGold Royalty) on 35 patented claims of the Garrison Gold Project which encompass the Garrcon and Jonpol deposits (except the extension of the Jonpol JD Zone). The Project has an NI 43-101 compliant resource estimate calculated in 2014 as shown below.

The Garrison Gold Project is made up of the following deposits:

NI 43-101 Resource Estimate

An NI 43-101 compliant resource estimate dated March 2014 by ACA Howe International Inc. estimated the Garrcon and Jonpol resources according to CIM standards to be:


Resources for Garrcon are reported at a cut-off grade of 0.4 g/t Au for open pit extraction and 1.5 g/t in an underground mining scenario based on a gold price of US$1,250/oz. Resources for Jonpol are reported at a cut-off grade of 3.0 g/t Au, and assume underground extraction scenario with a gold price of US$1,250/oz.

Property Recent History:

In 2005, ValGold acquired the claims comprising the major portion of the current Osisko Garrison Gold Project including the Jonpol and Garrcon Zones and a portion of the 903 Zone. It conducted additional drilling to that completed by prior operators and confirmed broad zones of gold mineralization. ValGold optioned the property to NGM in 2009 and completed a sale of the project to NGM in May 2011. Between 2009 and 2013, NGM undertook extensive exploration including over 97,000 meters of diamond drilling which delineated the current NI 43-101 compliant (2014) resource.

The Garrison Gold property also includes 20 patented mining claims purchased by NGM from Lac Properties Inc. (Lac), a wholly-owned subsidiary of Barrick Gold Corp., in 2013. These claims are contiguous to the west, north and south of the Garrison Property. Prior diamond drilling on the property outlined several gold-bearing zones, although this historical exploration was not supervised by a qualified person.

In 2014, NGM was issued a trial production mining permit through the Ontario Ministry of Northern Development & Mines for the extraction of up to 150,000 tonnes of ore. NGM mined 73,534 dry tonnes which were processed at the nearby Holt Mill recovering 3,516 ounces at an average head grade of 1.55 g/t and a recovery of 95.9%. The trial production permit remains active giving Osisko the option of undertaking a second phase of bulk sampling.

Royalty Description

The ValGold Royalty is a 2% net smelter royalty covering 35 claims of the Garrison Gold property. The Royalty claims include the Garrcon deposit, the Jonpol deposit except the western extension of the JD Zone and a portion of 903 Zone. Certain expenses are deductible from the proceeds to the operator from the sale of gold before calculation of the Royalty.

Garrcon Zone

Overview and History:

The Garrcon shaft was sunk in 1935 and 1936 by the Consolidated Mining and Smelting Co. of Canada (Cominco) and the Shaft and South Zones were tested for high-grade gold mineralization. Cominco drove approximately 1,430 meters of drifts and cross cuts, mining underground veins. Diamond drilling by Cominco and Lac Minerals in the mid-to-late 1980s identified broad sections of gold mineralization. Gold prices at that time did not support any further work.

Geology:

The bulk tonnage Garrcon deposit is hosted in fine-grained Timiskaming-type meta-sediments. The deposit measures 300 metres wide, extends for 1,800 metres along strike, and has been drilled to depths of 650 metres. The zone is situated along the footwall of the DPFZ. Gold mineralization occurs as a broad zone of quartz vein stockworks and breccias within the meta-sediments. Sulphide mineralization (pyrite) typically averages less than 1% concentration.

The deposit shows a shallow plunge eastward along the footwall of the DPFZ with the bulk of the current resource in the western, more densely drilled area. The zone is exposed at surface and considered to be amenable to open pit bulk mining at a reported overall stripping ratio of 1.8:1. Additional underground resources are found below the conceptual open pit and along the easterly plunge of the zone. The zone is open for further exploration down dip and along its strike length.

43-101 Resource Estimate:

An NI 43-101 compliant resource estimate dated March 2014 by ACA Howe International Inc. estimated the Garrcon resources according to CIM standards to be:


Resources for Garrcon are reported at a cut-off grade of 0.4 g/t Au for open pit extraction and 1.5 g/t in an underground mining scenario based on a gold price of US$1,250/oz. See Notice to Reader.

Jonpol Zone

Overview and History:

The Jonpol Gold Deposit consists of four high grade gold mineralized zones (JP, JD, RP and East) discovered over a strike length of 1.7 kilometers within the Munro Fault Zone.

In 1997, a 49,087 tonne bulk sample of high sulphide ore (10% sulphide minerals) was extracted from the central part of the JP zone by Hillsborough Resources at an average grade of 6.7g/t which produced 9,476 ounces of gold.

Between 1985 and 2013, over 130,000 meters of diamond drilling in 450 surface holes were completed on the Jonpol property by ValGold and previous owners. Development work on the JP zone included the sinking of a 184-meter shaft as well as development of a ramp to the 150-meter level with mining on six sublevels that remain intact for possible future use.

The Jonpol infrastructure underwent reclamation in the late 1990's and was closed out in 2001 but the existing ramp and shaft are preserved.

Geology:

The Jonpol Project is situated on the Munro Fault, a west striking splay off the north side of the DPFZ. It is a shear zone tens of meters wide in altered mafic volcanic rocks.

Gold mineralization is hosted in quartz carbonate veins, in mafic and ultramafic host rocks, and associated with zones of intense Albite and/or Sericite alteration, and Pyrite mineralization.

43-101 Resource Estimate

A resource estimate dated March 2014 by ACA Howe International Inc. estimated the resource according to CIM standards at the Jonpol deposit to be:



Resources are reported at a cut-off grade of 3.0 g/t Au, assume an underground extraction scenario with a gold price of US$1,250/oz. See Notice to Reader.

The indicated and inferred resource above includes the JD Zone, the extension of which is not in the claims subject to the ValGold Royalty. The ValGold Royalty encompasses a minimum of 149,000 ounces of the total 150,000 ounces in the indicated resource and a minimum 148,000 ounces of the total 192,000 ounces in the inferred resource.

903 Zone

Overview and History:

The 903 Zone lies in the southwestern section of the Garrison property. Mineralization in the 903 Zone was discovered in 1945 by Wright-Hargreaves Mines Ltd. In 1988, Lac acquired the claims covering the current 903 Zone and completed 17 drill holes totaling 4,823 metres. The property was optioned in 1990 to Jonpol and T&H Resources and subsequently returned to Lac in 1991. Northern Gold acquired the claims from Lac, by then a subsidiary of Barrick Gold in 2013, and conducted surface exploration and six drill holes.

Geology:

Diamond drilling has intersected a lithologically complex assemblage of mafic to felsic volcanic rocks, schists and sediments, as well as variably schistose and variably carbonate, sericite, chlorite, talc, and quartz altered equivalents of these rocks. The zone is principally found in linear syenite dykes hosted within the DPFZ and exhibits similarities to other syenite hosted ore bodies in the Abitibi Gold Belt. Peripheral mineralized zones hosted in Temiskaming type meta-sediments are similar to the bulk tonnage Garrcon deposit located 1 km to the east.

Historic drilling and drilling by NGM in 2013 has traced the zone along 720 metres of strike length. The zone remains open at depth and along strike.

Osisko Operational Plan:

Osisko is actively advancing the Garrcon/Jonpol/903 Zones by reviewing existing data to best target resource expansion. It has also stated it will continue baseline environmental studies along with ongoing environmental monitoring for the trial production permit. Osisko also states it will maintain the good relationship that the project has established with the local communities and First Nations.