August 27, 2020
Orogen options the Sarape gold project to Hochschild

Vancouver, B.C. August 27,2020 (TSX-V: OGN) Orogen Royalties Inc. ("Orogen" or the"Company") is pleased to announce it has optioned the Sarape goldproperty in Sonora, Mexico to Minera Hochschild Mexico, S.A. de C.V., asubsidiary of Hochschild Mining PLC (“Hochschild”).  Hochschild can earn a 100% interest in theSarape project by making cash payments of US$5.35 million and completingexpenditures of US$5.0 million over a five-year period. Upon exercise of theoption, Hochschild will grant to Orogen a 3% net smelter return royalty (“NSR”)of which 1% can be purchased for US$2.0 million.

“This transaction with Hochschild demonstrates Orogen’sability to develop a quality portfolio of organically created royalty assets ina cost-effective manner,” commented Orogen CEO Paddy Nicol.  “Hochschild has considerable experience in theAmericas and we welcome their expertise in advancing exploration on Orogen’s Sarapegold project.  The Sarape project is alow sulphidation epithermal gold target located in the same valley as PremierGold’s Mercedes mine, SilverCrest’s Las Chispas project and First Majestic’sSanta Elena and Ermitaño mines.”

Under the terms of the agreement Hochschild can earn a 100%interest in the Sarape project over a five-year period subject to the followingterms:

Cash and Work expenditures

Once Hochschild has earned a 100% interest in the Sarapeproject, it will grant to Orogen a 3% NSR of which 1% can be purchased for US$2.0million.  Hochschild will also makeannual advance cash payments of US$50,000 to be set off against the 1% royalty buy-back.  Orogen will be the operator for the firstthree years of the agreement.

About the Sarape project

Sarape is a gold-silver epithermalvein prospect located in the Rio Sonora valley of northern Mexico, an emerginggold-silver mining district that includes First Majestic Silver’s Santa Elenamine and Ermitaño gold-silver development project, Premier Gold Mines’ Mercedesmine and SilverCrest Metals’ Las Chispas project.  Orogen (Evrim) stakedSarape in 2017 following First Majestic’s initial discovery of bonanzagold-silver grades at Ermitaño.  The 53 square kilometre Sarape propertycovers two prominent quartz-carbonate veins with high-level epithermalgeochemistry and vein textures: the six-kilometre long Sarape vein and the 2.6kilometre-long Chiltepin vein.  Initial mapping and sampling identifiedtan-green quartz with elevated gold-silver values on the eastern limits of theexposed veins suggesting proximity to a boiling zone with bonanza gold-silvervalues at depth. 


A previous exploration partneroptioned Sarape from Orogen (Evrim) in 2018 and completed eight drill holestesting a 380-metre-long section of the Sarape vein and an additional drillhole on the eastern extremity of the Chiltepin vein.   The Sarapedrill holes intersected vein textures, gold-silver values, pathfinder elementsand vein widths up 23 metres indicative of a boiling horizon in a dilation zonebetween 100 and 350 metres below surface.  Only three holes areinterpreted to have tested this target level over a strike length of 150metres. The single hole on the Chiltepin vein failed to intersect the vein atdepth. The balance of the six-kilometre Sarape vein, including areas of anomalouspathfinder geochemistry and vein splays and flexures, remains untested as doesthe entire 2.6 kilometre-long Chiltepin vein.  Recent work has alsoidentified a fault scarp with veining in the projected intersection of theSarape and Chiltepin veins 1.5 kilometres east of the exposed veins.

Figure1 – Geologic map of the Sarape project showing the extent of the Sarape andChiltepin veins, surface gold values in rock-chip samples and location ofprevious drilling.

Qualified Person Statement

Orogen’sdisclosure of technical and scientific information in this news release hasbeen reviewed by Dave Groves, Vice President, Exploration for Orogen.  Mr. Groves is a Certified ProfessionalGeologist (#11456) with the American Institute of Professional Geologists and aQualified Person under the definition of National Instrument 43-101.


About OrogenRoyalties


Orogen Royalties Inc. is focused on precious and base metals projectgeneration and royalty creation in western North America.  Orogen’s royalty portfolio includes the ErmitañoWest gold deposit in Sonora, Mexico (2% NSR) being developed by First MajesticSilver Corp. and the Silicon gold project (1% NSR) in Nevada, USA, beingadvanced by AngloGold Ashanti, NA.  The Companyis well financed with several additional projects under active joint venturesand alliances.


On Behalf of the Board

OROGEN ROYALTIES INC.                                                                                                        

Paddy Nicol                                                                                                                                    

President & CEO                                                                                                                


To find out more about Orogen, please contact Paddy Nicol, President &CEO at 604-248-8648, and Liliana Wong, Manager of Marketing and InvestorRelations at 604-248-8648.  Visit ourwebsite at


Orogen Royalties Inc.

1201 - 510 West Hastings Street

Vancouver, BC

Canada V6B 1L8


Forward Looking Information

This news release includes certain statements that may be deemed"forward looking statements". All statements in this presentation,other than statements of historical facts, that address events ordevelopments that Orogen Royalties Inc. (the "Company“) expect to occur,are forward looking statements. Forward looking statements are statements thatare not historical facts and are generally, but not always, identified by thewords "expects", "plans", "anticipates","believes", "intends", "estimates", "projects","potential" and similar expressions, or that events or conditions"will", "would", "may", "could" or"should" occur. 


Forward looking information relates to statements concerning theCompany’s future outlook and anticipated events or results, as well as theCompany’s management expectations with respect to the proposed businesscombination (the “Transaction”). This document also contains forward-lookingstatements regarding the anticipated completion of the Transaction and timingthereof. Forward-looking statements in this document are based on certain keyexpectations and assumptions made by the Company, including expectations andassumptions concerning the receipt, in a timely manner, of regulatory and stockexchange approvals in respect of the Transaction.


Although the Company believe the expectations expressed in suchforward looking statements are based on reasonable assumptions, such statementsare not guarantees of future performance and actual results may differmaterially from those in the forward looking statements. Factors that couldcause the actual results to differ materially from those in forward lookingstatements include market prices, exploitation and exploration successes, andcontinued availability of capital and financing, and general economic, marketor business conditions.  Furthermore, theextent to which COVID-19 may impact the Company’s business will depend onfuture developments such as the geographic spread of the disease, the duration ofthe outbreak, travel restrictions, physical distancing, business closures orbusiness disruptions, and the effectiveness of actions taken in Canada andother countries to contain and treat the disease. Although it is not possibleto reliably estimate the length or severity of these developments and theirfinancial impact as of the date of approval of these condensed interimconsolidated financial statements, continuation of the prevailing conditionscould have a significant adverse impact on the Company's financial position andresults of operations for future periods.


Investors are cautioned that any such statements are notguarantees of future performance and actual results or developments may differmaterially from those projected in the forward looking statements. Forwardlooking statements are based on the beliefs, estimates and opinions of theCompany’s management on the date the statements are made. Except as required bysecurities laws, the Company undertakes no obligation to update these forwardlooking statements in the event that management's beliefs, estimates oropinions, or other factors, should change.