Mr. George Ogilvie reports

ARIZONA SONORAN ANNOUNCES ROYAL GOLD'S PURCHASE OF EXISTING NSR ON THE CACTUS PROJECT

RG Royalties LLC, a subsidiary of Royal Gold Inc., has purchased an existing 2.5-per-cent net smelter royalty (NSR) on a portion of Arizona Sonoran Copper Company Inc.'s Cactus project for cash consideration of $55-million (U.S.) from Tembo Capital. Arizona Sonoran has the right to buy back 0.5 per cent of Royal Gold's aggregate 2.5-per-cent NSR for $7-million (U.S.), by July 10, 2025.

George Ogilvie, president, chief executive officer and a director of Arizona Sonoran, commented: "We are pleased to see the royalty move to a top-calibre royalty and streaming company, with a history of participating in project financing packages and a positive prior experience with our management team. We believe that Royal Gold, as the acquiror, is yet another strong endorsement and recognition of the Cactus project and its go-forward plan by a sophisticated mining financier. Our team has dedicated itself to growing the asset to a significant size, securing water, permits, community support and, as reflected in our 2024 PEA [preliminary economic assessment], demonstrating a capital-efficient project with robust forecast economics. We will continue to derisk and advance Cactus as we move forward with various technical studies through prefeasibility to definitive feasibility study to an eventual final investment decision."

In 2020, a Tembo Capital fund initially purchased the 2.5-per-cent NSR, as part of an aggregate 3.18-per-cent-NSR financing with Resource Capital Funds, whose portion is now owned by Elemental Altus Royalties Corp. In addition to the 0.5-per-cent buyback option on Royal Gold's NSR, Arizona Sonoran also has the option to buy back 0.14 per cent of Elemental Altus's aggregate 0.68-per-cent NSR for $1.9-million (U.S.) by July 10, 2025, which together would reduce the overall combined NSR to 2.54 per cent.

The company is well financed and is currently evaluating its options with respect to both NSR buyback options.

About Arizona Sonoran Copper Company

Arizona Sonoran is a copper exploration and development company with a 100-per-cent interest in the brownfield Cactus project. The project, on privately held land, contains a large-scale porphyry copper resource and a recent 2024 PEA proposes a generational open-pit copper mine with robust economic returns. Cactus is a lower-risk copper developer benefiting from a state-led permitting process, in-place infrastructure, highways and rail lines at its doorstep, and on-site permitted water access. The company's objective is to develop Cactus and become a mid-tier copper producer with low operating costs that could generate robust returns and provide a long-term sustainable and responsible operation for the community, investors and all stakeholders. The company is led by an executive management team and board, which have a long-standing record of successful project delivery in North America, complemented by global capital markets expertise.

We seek Safe Harbor.