Vancouver, British Columbia–(Newsfile Corp. – January 13, 2022) – Voyageur Pharmaceuticals (TSXV: VM) (OTC Pink: VYYRF) has announced the results of its Preliminary Economic Assessment for the development of its Frances Creek pharmaceutical barium sulfate project. The Frances Creek project is a 100% owned pharmaceutical grade barium sulfate project located in British Columbia.

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Voyageur is focused on the development of barite and iodine Active Pharmaceutical Ingredients and high-performance cost-effective imaging contrast agents for the medical radiology marketplace. For those of you new to the company, contrast materials, which may be taken orally or rectally, are used to improve pictures of the inside of the body helping to distinguish or “contrast” selected areas of the body from surrounding tissue allowing the radiologist to distinguish normal from abnormal conditions.

Working with its custom manufacturer, Alberta Veterinarian Laboratories, which owns and operates a brand new, multi-million dollar, state-of-the-art, Good Manufacturing Practice drug manufacturing facility in Calgary, Alberta, Canada, Voyageur is building a suite of barium products including Smooth X, Barium Sulfate 98% HDX, and a Barium Sulfate Drill Product.

The PEA, prepared by SGS Geological Services, and a technical report relating to the PEA will be available on SEDAR within 45 days. The mineral resource estimate report was based on a database containing 57 drillholes and 3 channels totaling 3,106 metres.

The estimate consisted of 214,800 tonnes in the Indicated category containing 75,600 tonnes of barium sulfate and 134,200 tonnes in the Inferred category containing 45,400 tonnes of barium sulfate. The PEA economics are based on quarry operations on the B zone. Following positive cash flow, the company plans to expand its exploration program

China dominates the barium sulfate market, and currently offers 97.5% barium sulfate at a delivered price of US$4,760 or CDN$5,960 per tonne.

Although the pricing in the PEA is based on 97.5% barium sulfate, Voyageur’s product has a higher quality of 98.3%. Any product rejected in the company’s manufacturing process will still be relatively high-quality barite, which is assumed to be suitable for drilling fluid products and could be sold as drilling grade barite in bulk to the Alberta energy industry.

The base case economics for the project indicate a pre-tax net present value of $464 million and internal rate of return of 168%, while the post tax net present value is $344 million with an internal rate of return of 137% at a discount rate of 8%. The project assumes a pre-production period of 2 years for equipment delivery and installation, and mine permitting, and an 11-month payback period under the base case scenario. Total capital costs of $36.4 million include a 15% contingency.

The project has a very small environmental footprint at the quarry site as Voyageur has eliminated tailing ponds, reduced water consumption, and designed a quarry and concentrate processing site that uses minimal land and low land disturbance to the area.

Based on current shares issued and outstanding, the after-tax net present value $3.38 per share, or $2.59 fully diluted.

The shares are currently trading at $0.16. For more information, please visit www.VoyageurPharmaceuticals.ca, contact Brent Willis, President and CEO, by email at [email protected], or Ron Love, CFO, at 403-818-6086 or by email at [email protected].

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