Abitibi Royalties Royalty Search: Additional Royalty Acquired East of Bachelor Mine & Corporate Update

VAL-D'OR, QUEBEC--(Marketwired - Apr 15, 2016) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") is pleased to announce that it has entered into an agreement with Ivars Azis (the "Claim Holder") to acquire a 2% net smelter royalty ("NSR") on additional mineral claims, located approximately 3.5 kilometres east of Metanor Resources Inc., Bachelor mine in Québec (Fig 1). This NSR agreement builds on an earlier royalty acquired around the Bachelor mine in 2015 and is the 12^th royalty purchased near an existing mine since the "Royalty Search" was launched on June 9^th, 2015.

In exchange for the 2% NSR, Abitibi Royalties will pay approximately CDN$3,775. In addition, Abitibi Royalties has agreed to pay the Claim Holder approximately CDN$3,775 in exchange for the right to receive 15% of total proceeds should the property be sold. The cash consideration will be paid by Abitibi Royalties from its cash flow. The new package of claims (Fig 1.) also consists of one claim (the "Additional Claim") that was added to the original claim package after the Company's press release dated July 6, 2015. For the Additional Claim, the Company agreed to pay the Claim Holder an amount equal to the next annual claim maintenance fees, estimated at approximately CDN$1,250 at the time of signing the original NSR agreement, and CDN$1,000 for the right to receive 15% of the total proceeds should the Additional Claim be sold.

The Claim Holder is actively searching for a joint venture partner in order to explore the mineral claims east of the Bachelor mine. To contact Ivars Azis, please visit www.tamarackgold.com or call 416.303.6684.

Since launching the Royalty Search on June 9th, 2015, 12 royalties near existing mining operations have been acquired, which include royalties surrounding or near Agnico Eagle and Yamana's Canadian Malartic mine in Québec, Agnico Eagle's Lapa mine in Québec, Alamos Gold's Young-Davidson mine in Ontario, Eldorado's Efemcukuru mine in Turkey, Goldcorp's Red Lake mine in Ontario, Hudbay's 777 mine in Manitoba, Metanor Resources Bachelor mine in Québec and New Gold's Rainy River mine in Ontario. A list of these royalties can be found here.

The Royalty Search (www.abitibiroyalties.com) is an easy to use website that allows mining companies and prospectors a quick way of accessing capital in this difficult commodities market.

Abitibi Royalties is offering to pay the annual claim fees/taxes related to:

1) Existing mineral properties or

2) Staking of new mineral properties

In return for paying these fees, Abitibi Royalties would be granted a NSR on the property. To date, approximately 95 properties have been submitted through the website and 12 agreements have been finalized.

Share Repurchase Program

Since receiving approval to begin the Company's Normal Course Issuer Bid ("NCIB") on October 6^th, 2015, Abitibi Royalties has repurchased approximately 72,700 common shares of the Company at an approximate average price of CDN$3.13 per share. The NCIB allows the Company to purchase up to 546,300 common shares (representing 5% of the Company's total issued and outstanding common shares as of September 21^st, 2015) over a period of 12 months. The NCIB will expire no later than October 5^th, 2016.

Update on Cash Flows

Since last reported on March 17^th the Company's total cash flow in 2016 has increased to approximately CDN$625,000 from CDN$530,000 due to additional investment income.

On January 13^th, 2016, the Company announced it had adopted a policy to sell covered call options on up to 25% of its shares held in Agnico Eagle and Yamana each quarter. The table below outlines the call options that have been sold to date, including call options before the policy took effect. Since August 2015, approximately CDN$645,000 in covered call income has been generated. The current market value of the shares, plus the Company's last reported cash balance (September 30, 2015) is approximately CDN$43.5 million. The Company is debt free.

Table 1.

Table 2.

About Abitibi Royalties

Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension 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 and 444,197 shares of Agnico Eagle Mines.

Golden Valley Mines and Rob McEwen hold approximately 51.4% and 8.7% 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.

Contact

Abitibi Royalties Inc.
Ian J. Ball
President and CEO
416-346-4680
ian.ball@abitibiroyalties.com
www.abitibiroyalties.com