Mr. Trey Wasser reports

ELY GOLD ROYALTIES ANNOUNCES PURCHASE OF ADDITIONAL OF FENELON ROYALTY

Ely Gold Royalties Inc. has entered into an assignment agreement with an arm's-length third party pursuant to which Ely Gold has acquired a 100-per-cent interest in a 2-per-cent net smelter return royalty on the Fenelon mine property, operated by Wallbridge Mining Company Ltd. and located in west-central Quebec. The Fenelon 2-per-cent royalty is an addition to the 1-per-cent net smelter royalty on the Fenelon mine property recently acquired from Balmoral Resources Ltd., as announced in the company's news release dated Oct. 10, 2018.

The Fenelon 2-per-cent royalty was created pursuant to an exploration agreement dated Oct. 31, 1986, by a predecessor company of the seller. Under the agreement, Ely Gold acquired the Fenelon 2-per-cent royalty for cash consideration of $600,000. The closing date of the transaction was April 15, 2019. In connection with the agreement, Ely Gold has received all documentation to support the validity and ownership of its newly acquired Fenelon 2-per-cent royalty.

Trey Wasser, president and chief executive officer of Ely Gold, commented on the transaction: "We are very pleased to add another royalty on the exciting Fenelon property to our asset portfolio. The Fenelon mine property is demonstrating remarkable grades in minable intercepts, and the project operator has indicated its belief that the resource has significant potential for increased resources. This has become a very high-profile project, and we look forward to delivering more news on the Fenelon property and this new royalty in the near future."

The Fenelon property

The 1,052-hectare Fenelon mine property hosts the Discovery gold deposit and the surrounding four-kilometre strike length of a gold-bearing shear corridor. Wallbridge initiated work on Fenelon in late 2016 and completed a surface drill program of 33 drill holes totalling 6,348 metres in 2017. Results from that program confirmed the high-grade nature of the near-surface mineralization at Fenelon and led the identification of new zones of mineralization proximal to the existing mine workings established in 2004. Highlights from Wallbridge's 2017 drill program disclosures include:

• FA-17-07 intersected three zones, including 141.16 grams per tonne gold over 7.06 metres in the Viper zone;
• FA-17-17 intersected four zones, including 311.08 grams per tonne gold over 3.06 metres in the Viper zone;
• FA-17-26 intersected two zones, including 260.44 grams per tonne gold over 7.02 metres in the Viper zone;
• FA-17-27 intersected 80.42 grams per tonne gold over 4.73 metres in the recently discovered Habanero zone.

In early 2018, Wallbridge received permits to proceed on underground work at Fenelon, including dewatering existing workings as well as advancing ramp and level development for collecting a 35,000-tonne bulk sample and to provide cash flow and access for underground drilling. The bulk sample program is designed to mine selected stopes in several zones across six levels. Wallbridge also reports that the cash flow from its bulk sample program will finance the 2019 underground and surface drill programs. Production from five stopes, along with low-grade ore from a 2004 bulk sample, was processed at the Camflo mill from September, 2018, to Jan. 31, 2019. Wallbridge included the historical low-grade ore as part of the first mill run to help optimize milling performance; this initial work enabled the next mill runs to achieve recoveries of more than 98 per cent. As of Feb. 25, 2019, approximately 25,000 tonnes of ore with a reconciled average grade of 18.19 grams per tonne gold containing close to 14,700 ounces of gold have been processed at the Camflo mill in four separate mill runs.

Wallbridge drilled over 10,000 metres in 90 holes from underground in 2018. Highlights include:

• 18-1035-019 intersected 137.62 grams per tonne gold over 4.85 metres in the Viper zone;
• 18-1035-005 intersected 48.81 grams per tonne gold over 6.13 metres in the Viper zone;
• 18-1035-017 intersected 50.31 grams per tonne gold over 10.13 metres in the Chipotle zone;
• 18-1035-013 intersected 144.96 grams per tonne gold over 2.12 metres in the Chipotle zone;
• 18-0990-011 intersected 74.90 grams per tonne gold over 5.66 metres in the Habanero zone;
• 18-0990-007 intersected 122.35 grams per tonne gold over 2.95 metres in the Habanero zone;
• 18-0990-010 intersected 41.02 grams per tonne gold over 5.52 metres in the Habanero zone;
• 18-5175-021 intersected 144.77 grams per tonne gold over 6.10 metres in the Habanero zone.

Wallbridge also drilled 17 holes from surface totalling about 5,800 metres. Of significance from this set of holes was the discovery of a new gold-mineralized zone about 300 metres southwest of the main Fenelon deposit, including 12.70 grams per tonne gold over 2.71 metres within a wider interval of 3.93 grams per tonne gold over 9.96 metres in hole FA-18-051. The 2019 underground resource drilling will initially be carried out from the recently established 5,130 level (approximately 125-metre depth) and will target the main high-grade shoots down plunge to 200-metre depth.

Stephen Kenwood, PGeo, is a director of the company and a qualified person as defined by National Instrument 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold is a Vancouver-based emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 31 deeded royalties and 19 properties optioned to third parties. Ely Gold's royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The company is actively seeking opportunities to purchase existing third party royalties for its portfolio, and all the company's option properties are expected to produce royalties, if exercised.

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