Abitibi Royalties to Extend Normal Course Issuer Bid

VAL-D'OR, QUEBEC--(Marketwired - Oct 3, 2016) - Abitibi Royalties Inc. (TSX VENTURE:RZZ) ("Abitibi Royalties" or the "Company") announces that it intends to conduct a normal course issuer bid (the "2016 NCIB") to purchase through the facilities of the TSX Venture Exchange (the "TSX-V") up to 566,812 issued common shares of Abitibi Royalties (the "Common Shares") (representing 5% of Abitibi Royalties' issued and outstanding common shares as of September 27, 2016) over a period of twelve months commencing October 6, 2016. The NCIB is subject to final TSX-V acceptance, which has been conditionally approved.

Under the NCIB, Common Shares may be repurchased in open market transactions on the TSX-V or by such other means as may be permitted by the TSX-V and under applicable Canadian securities laws. The price paid by Abitibi Royalties will be based on the market price at the time of purchase and not higher than the last independent trade of a board lot (board lot = 100 shares).

In accordance with TSX-V policy, purchases by Abitibi Royalties under the 2016 NCIB are limited, when aggregated with the total of all other purchases in the preceding 30 days, to a maximum of 2% of the Company's issued and outstanding shares at the time the purchases are made.

Common Shares that are purchased under the 2016 NCIB will be cancelled.

TD Securities Inc. will be conducting the 2016 NCIB on behalf of the Company.

The actual number of Common Shares which may be purchased and the timing of such purchases will be determined by Abitibi Royalties. Decisions regarding purchases will be based on market conditions, share price, best use of available cash, and other factors including other options to expand our portfolio of assets.

Abitibi Royalties has purchased to date an aggregate of 77,600 of its issued common shares through the facilities of the TSX-V under a normal course issuer bid (the "2015 NCIB") currently being conducted by the Issuer, which commenced October 6, 2015 and will end on October 5, 2016. Common shares purchased to date by the Issuer under the 2015 NCIB were purchased at an average price of CDN$3.19 per common share. The 77,600 common shares purchased to date under the 2015 NCIB have been returned to the Issuer's treasury and cancelled.

About Abitibi Royalties Inc.

Abitibi Royalties holds a 3% NSR on the Odyssey North discovery, Jeffrey Zone and the eastern portion of the Barnat Extension, 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), plus cash (as of June 30, 2016) of CDN$52.2 million. The Company is debt free.

Golden Valley Mines Ltd. and Rob McEwen hold approximately 49.4% and 12.3% 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.
Shanda Kilborn
Director, Corporate Development
1-888-392-3857
info@abitibiroyalties.com