Mr. Brian Dalton reports

ALTIUS REPORTS Q3 2023 ATTRIBUTABLE ROYALTY REVENUE OF $17.8M AND ADJUSTED EARNINGS(1) OF $2.6M

Altius Minerals Corp. had third quarter revenue of $15.2-million compared with $25.9-million for the same period in 2022 while attributable royalty revenue of $17.8-million (38 cents per share) compares with $26.2-million (55 cents per share) reported in Q3 2022.

Brian Dalton, chief executive officer, commented: "Third quarter revenue primarily reflects substantially lower realized potash prices relative to the record levels of last year, as well as the scheduled closure of the 777 mine in 2022. We continue to believe that most prices remain below those required to incentivize growth investment and to offset projected market supply-demand deficits over coming periods. Despite the continued weakness in prices, positive progress at several potential development and expansion based assets continued during the quarter, as noted in the quarterly highlights below."

Quarterly highlights:

• AngloGold Ashanti (AGA) provided an update on Aug. 4 on the rebranded Expanded Silicon project, which includes both the Silicon and Merlin gold deposits. AGA has stated an exploration target for Merlin of six million to eight million ounces that is in addition to the more-than-four-million-ounce inferred resource estimate that it has published for Silicon. An initial inferred mineral resource estimate for Merlin and a prefeasibility study for the Expanded Silicon project that consider synergies from the increased economy of scale and integrated infrastructure, with potential for large-scale mining, are expected to be completed by year-end. Altius Minerals holds a 1.5-per-cent net smelter return royalty related to the project.
• The corporation recognized its first ever royalty revenue related to lithium production from its ownership interest in Grota do Cirilo.
• ARR Q3 royalty revenue of $2.6-million was up 27 per cent from the same quarter last year, as a result of continued renewable royalty portfolio growth and stronger power prices experienced due to warmer summer weather and increased power demand. Included in ARR's financial results is a $2.9-million loss in joint venture associated with the Great Bay Renewables equity investment in an early-stage renewable energy development entity. In addition, ARR recently announced that the jointly controlled entity Great Bay Renewables closed a $247-million (U.S.) credit facility that will enable it to continue to expand its renewable royalty business on a non-dilutive basis.
• Coal-related royalty revenue is expected to end by year-end as the Genesee power plant completes its conversion to natural-gas-based fuelling.
• IOC has reduced its production guidance for the rest of 2023 following extended plant downtown and conveyor belt failures while also recovering from wildfires in Northern Quebec.
• Nutrien has indicated a strong third quarter rebound in potash fertilizer demand, led by North American and Brazilian growers, and increased its full-year 2023 and 2024 global shipment expectation guidance. The decrease in potash prices from prior-year record levels appears to have stabilized, and prices are expected to increase slightly throughout the third quarter in certain key markets.
• Mosaic announced an increase in total nameplate capacity to 7.8 million tons at the Esterhazy potash mine, which compares with six million tons in 2022. Further debottlenecking at Esterhazy is expected to add an additional 400,000 tons of capacity.
• Lundin Mining continued an aggressive delineation and expansion drilling program at the Sauva copper discovery within the Chapada district. It has commented that it expects the work to result in increasing resource estimates in coming periods while continuing expansion study work continues.
• Champion Iron continued to progress updated feasibility studies concerning the potential development of the Kami iron ore project in the Labrador Trough with full results expected later this year or early next year. Altius Minerals holds a 3-per-cent gross sales royalty on the Kami project.

Adjusted earnings before interest, taxes, depreciation and amortization of $12.5-million or 26 cents per share during Q3 2023 compare with $23.7-million or 50 cents per share during the prior-year quarter. The adjusted EBITDA margin in the third quarter was 69 per cent versus 84 per cent in last year's comparable quarter, reflecting lower revenue against relatively stable fixed costs. The mineral royalties segment had an EBITDA margin of 76 per cent and 87 per cent for the current- and prior-year quarters, respectively.

Q3 2023 adjusted operating cash flow of $11.0-million or 23 cents per share compares with $25.9-million or 54 cents per share in last year's comparable quarter. The decrease is largely reflective of higher taxes and interest paid, as well as lower royalty revenues.

Net earnings of $3.5-million or eight cents per share for Q3 2023 compare with net earnings of $11.5-million or 22 cents per share in Q3 2022. Loss in joint venture includes $2.9-million of losses associated with the Great Bay Renewables equity investment in an early-stage renewable energy development entity, reflecting increased levels of expenses with minimal offsetting revenues. Adjusted net earnings per share of five cents in the current quarter compare with adjusted net earnings per share of 20 cents per share in Q3 2022. The main adjusting items in the third quarter of this year are unrealized gains on derivatives related to the revaluation of share purchase warrants on junior mining equities, foreign exchange losses and gains on disposal of mineral properties.

Dividend declaration

The corporation's board of directors has declared a quarterly dividend of eight cents per share. The current quarterly dividend is payable to all shareholders of record at the close of business on Nov. 30, 2023. The dividend is expected to be paid on or about Dec. 15, 2023.

This dividend is eligible for payment in common shares under the dividend reinvestment plan (DRIP) announced by press release on May 20, 2020, and available to shareholders who are Canadian residents or residents of countries outside of the United States.

To be eligible to participate in respect of the Dec. 15, 2023, dividend, non-registered shareholders must provide instruction to their brokerage, and registered shareholders must provide completed enrolment forms to the transfer agent by Nov. 24, 2023, five business days prior to record date. Stock market purchases made under the DRIP for the Dec. 15, 2023, payment will be satisfied by issuance from treasury at the five-day volume-weighted average price ending at the close of trading the day before payment date. Shareholders who have already provided instruction to be enrolled previously will continue to be enrolled unless they direct otherwise. Participation in the DRIP is optional and will not impact any cash dividends payable to shareholders who do not elect to participate in the DRIP. The declaration, timing and payment of future dividends will largely depend on the corporation's financial results, as well as other factors. Dividends paid by Altius Minerals on its common shares are eligible dividends for Canadian income tax purposes unless otherwise stated.

Third quarter 2023 financial results conference call and webcast details

Date:  Nov. 9, 2023

Time:  9 a.m. ET

Toll-free dial-in number:  1-888-396-8049

International dial-in number:  1-416-764-8646

Conference call title and ID:  Altius Minerals Q3 2023 financial results and 46475901

A webcast will be available.

About Altius Minerals Corp.

Altius Minerals' strategy is to create per-share growth through a diversified portfolio of royalty assets that relate to long-life, high-margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends, including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These macrotrends each hold the potential to cause increased demand for many of Altius Minerals' commodity exposures, including copper, renewable-based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore and potash. In addition, Altius Minerals runs a successful project generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius Minerals has 47,227,903 common shares issued and outstanding that are listed on Canada's Toronto Stock Exchange. It is included in each of the S&P/TSX Small Cap, the S&P/TSX Global Mining and the S&P/TSX Canadian Dividend Aristocrats indices.

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