• MONTREAL, QUEBEC--(MARKET WIRE)--May 14, 2009 -- Osisko Mining Corporation (the "Company") (Toronto:OSK.TO - News)(Frankfurt:EWX.F - News) is pleased to report its first quarter financial results for the period ended March 31, 2009 and to provide an overview of its activities.

Following the conclusion of a successful $403 million equity financing in February 2009, the Company has continued with the development of its flagship Canadian Malartic gold deposit. Current reserves at Canadian Malartic stand at 6.3 million ounces (see press release dated November 25, 2008).

The Company entered into a formal public hearing process held by Quebec's Bureau des audiences publiques en environnement ("BAPE") following the receivability of its Environmental Impact Assessment Study in January 2009. The Company participated in a series of public meetings in Malartic and is collaborating with the BAPE and the Ministry of Sustainable Development, Environment and Parks ("MSDEP") officials as they progress in the assessment of the Project. The BAPE is expected to table a report to the Minister of MSDEP no later than July 9, 2009.

The Company has also made significant progress on the relocation program, including the construction of new institutional infrastructures for Malartic. The residential relocation program was reinitiated in April following the end of the winter season, and as of the date of this press release, an additional 27 homes have been moved to the new town subdivision. Sixty homes were previously relocated in 2008.

Detailed engineering has advanced to a completion rate of approximately 45%, and development personnel are continuing to complete negotiations on the remaining supply agreements. Committed and completed expenditures on the Project amount to US$250 million. Based on the November 2008 Feasibility Study, the total project budget is estimated at US$789 million, with commercial production expected to commence in April 2011.

On the exploration front, the Company drilled 77,185 metres mainly on the South Barnat deposit. An inferred resource calculation on the South Barnat deposit was issued in January 2009, and the Company anticipates issuing a measured and indicated resource calculation in the current quarter.

The Company has also strengthened its senior management team with the recent appointments of Mr. Sergio Cattalani as Vice President, Exploration and Mr. Robert Mailhot as Vice President; Human Resources.

Mr. Sean Roosen, President and CEO, commented: "Our February financing was a company changing event, moving the Company one large step closer to our goal of achieving near-term production. Our strong financial position allows us to pursue the development of the Canadian Malartic Project, while continuing to aggressively explore the property to grow our reserve and resource base. We are well on our way to achieving our goal of making Osisko Canada's newest premium intermediate gold producer."

During the first quarter, the Company incurred a net loss of $0.8 million ($0.00 per share) compared to a net income of $4.7 million ($0.03 per share) in the corresponding period of 2008. Higher operating costs were incurred in 2009 as the Company is moving from an exploration company to a mid-tier gold developing company. In addition, the Company recognized a $2.0 million (2008 - $4.7 million) future tax recovery following the renunciation of its exploration expenditures to subscribers of a September 2008 $12.3 million flow-through issue (2008 - $25 million flow-through issue in July 2007).

Highlights from the Company's financial position are as follows (in millions of dollars):

 

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                              March 31, 2009        December 31, 2008
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Cash Position(1)                       449.2                     95.7
Working Capital                        443.3                     92.7
Total Assets                           705.0                    318.2
Shareholders' Equity                   649.2                    267.3
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(1) Includes Cash and Cash equivalents, Short-term investments, Restricted
    cash and Cash collateral

The financial statements and Management Discussion and Analysis (MD&A) for the period ended March 31, 2009, will be filed on SEDAR by May 15, 2009.

Osisko Mining Corporation is currently developing the Canadian Malartic gold deposit and evaluating adjacent areas for a large-scale open pit, bulk-tonnage mining operation. The Company is well-funded with approximately $450 million on hand.