Frontwater Capital Adds Gold Explorer Osisko Mining To Stock Watch List

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 7, 2010 -- Osisko Mining Corporation (OSK – TSX)
Osisko Mining Corp. is a Canadian gold exploration and development company. Its primary focus is advancing its flagship 100% owned Canadian Malartic property, located in Val D’Or Quebec.

In recent years, there have been few large gold deposit discoveries making it hard for senior gold producers to replace and add resources. Furthermore, the senior gold producers are interested in large scale deposits that can add significant production to make an impact to their bottom line and that are located in safe jurisdictions. In our view, Osisko’s Malartic gold deposit which is located in an attractive mining jurisdiction and has significant scale makes the company an attractive take-over target. We believe the company will ultimately get acquired by Goldcorp or another senior gold producer. Goldcorp already owns approximately 12.9% of Osisko, effectively signalling to the market their potential interest in acquiring Osisko.

Osisko trades at a premium to other junior development companies and mid tier producers. We believe a premium is justified to account for the company’s flagship project which is located in an attractive mining jurisdiction and to account for the expected large scale gold production which is in the higher end of the mid tier gold producers. With its mine scheduled to start production in 2011, Osisko is benefiting from a re-rating to a level indicative of upper mid tier gold producers operating in an attractive geopolitical mining jurisdictions.

Osisko’s Malartic gold project is the biggest gold reserve deposit in Canada. In a recent update by the company of its reserve estimate and mine schedule, total reserves increased by 43% to 8.97 million ounces gold. This resulted in Osisko increasing its average annual production forecast from 620,000 ounces of gold to 630,000 over its 12.2 year mine life. This level of gold production positions Osisko in the higher end of the mid tier gold producers.

With permitting and financial risk now minimal, Osisko is well positioned to advance development towards full operation, expected by the company to begin in Q2 2011.

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