Val-d'Or - Abitibi Royalties Inc. (RZZ-TSX-V, ATBYF-OTC-Nasdaq Intl: 'Abitibi Royalties' or the 'Company') is pleased to announce its Q4 2019 royalty payment from the Canadian Malartic Mine, located near Val-d'Or, Quebec and total cash generated during the quarter.

In addition, the Company's board of directors has approved, effective April 2020, a 25% dividend increase to the Company's outstanding common shares from CDN$0.12 to CDN$0.15 per common share on an annualized basis. The frequency of the payment of dividends will be changed from quarterly to monthly, also effective April 2020. The Company is unique among its peers due to its strong treasury, no debt, new monthly dividend, share buyback program and limited number of outstanding shares (approximately 12.5 million).

Q4 2019 Royalty Payment

During Q4 2019, the Company generated total cash of approximately CDN$2.1 million, with approximately CDN$999,000 coming from royalties on the open pit portion contained within the Company's 3% NSR at the Canadian Malartic Mine. Royalties from the open pit portion of the Canadian Malartic Mine commenced at the end of Q4 2018 (the Company's core underground royalties at East Malartic and Odyssey are not in production). The Canadian Malartic Mine is the largest gold mine in Canada and is operated by Agnico Eagle Mines Limited ('Agnico Eagle') and Yamana Gold Inc. ('Yamana'). The remainder of the cash generated during the quarter came from option premiums (CDN$268,000), Dividends (CDN$140,000) and taxable capital gains from equity investments (CDN$697,000).

During the twelve months ended December 31, 2019, the Company generated cash of approximately CDN$5.3 million.

The Company has 12,521,610 issued shares, with no warrants, stock options or other forms of share-based compensation outstanding.

25% Dividend Increase to be paid Monthly

The Company's board of directors has approved a 25% dividend increase from CDN$0.12 to CDN$0.15 per common share on an annualized basis. The frequency of dividend payments will also be changed from quarterly to monthly. The increased dividend amount and the payment of monthly dividends will begin in April 2020.

Non-IFRS Measure: The Company has calculated the measure 'cash' using the cash basis of accounting. This is a non-IFRS measure as IFRS requires the Company's cash in its financial statements to be recognized using the accrual basis of accounting. The Company believes that this measure, while not a substitute for measures of performance prepared in accordance with IFRS, provides investors an improved ability to evaluate the underlying performance of the Company.

About Abitibi Royalties

Abitibi Royalties owns various royalty interests at the Canadian Malartic near Val-d'Or, Quebec. In addition, the Company is building a portfolio of royalties on early stage properties near producing mines. The Company has approximately CDN$46.3 million (as of January 17, 2020) in cash and investments and is debt free.

Investment values calculated based on closing prices and certain share price limits due to call option contracts.

Contact:

Shanda Kilborn

Tel: 1-888-392-3857

Email: info@abitibiroyalties.com

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.

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