MONTREAL, QUEBEC -- (MARKET WIRE) -- 10/20/06 -- Osisko Exploration Ltd. .(TSX VENTURE: OSK)(FRANKFURT: EWX) is pleased to announce that it has arranged a non-brokered private placement with EurAsia Holding AG of Germany, principal shareholder of Osisko. The private placement will consist of a maximum of 1.0 million units (the "Units") at $5.50 per Unit, for gross proceeds of $5,500,000. Each Unit shall consist of one common share and one transferable common share purchase warrant. Each whole warrant will be exercisable into one additional common share of the Company at $6.25 for a period of three years from the closing date.

The proceeds from the financing will be used to fund feasibility work on the Canadian Malartic project and to begin securing options on critical path equipment that will be required for the development phase of the project. Due to increased lead times across the resource industry for large process equipment, management and the Board of Directors of Osisko have deemed it crucial to the project time line that this process be implemented immediately.

The shares issued under this private placement will be subject to an 18 month hold period. EurAsia has accepted these terms, indicating their strong long-term support for the Canadian Malartic project. The proposed private placement is subject to TSX Venture Exchange acceptance for filing and required regulatory approvals.

Contacts:
Osisko Exploration Ltd.
John Burzynski
Vice-President Corporate Development
514-735-7131

Osisko Exploration Ltd.
Daniel Boase
Investor Relations
416-742-5600
1-866-580-8891 (Toll Free)
www.osisko.com

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