Mr. Frederick Bell reports

ELEMENTAL ALTUS INCREASES NSR ROYALTY ON CASERONES COPPER MINE

Elemental Altus Royalties Corp. has acquired an additional net smelter return (NSR) interest on the Caserones copper-molybdenum mine in Chile for a total cash consideration of $2.6-million (U.S.). On March 27, 2023, Lundin Mining Corp. announced its intention to acquire a 51-per-cent interest in Caserones for a total consideration of $950-million (U.S.).

Acquisition highlights:

• Increased interest in uncapped cash-flowing NSR royalty on Caserones copper mine in Chile;
• Acquisition raises the effective NSR held by the company on Caserones to 0.473 per cent;
• Lundin Mining has recently announced its intention to acquire a 51-per-cent stake in Caserones;
• Acquisition undertaken in combination with existing joint royalty holders.

Frederick Bell, chief executive officer of Elemental Altus, commented:

"We are very pleased to increase our royalty exposure to the Caserones copper mine in Chile following the Lundin Mining announcement to acquire majority ownership. The mine continues to be a cornerstone revenue-generating asset in our portfolio and we believe there is significant exploration potential to be unlocked in the district, as highlighted by NGEX Minerals' exploration results immediately to the south."

Terms of the acquisition

The Caserones mine is subject to a 2.88-per-cent NSR royalty created in a 2009 agreement between SCM Minera Lumina Copper Chile SA, as purchaser, and Compania Minera Caserones (CMC) and Sociedad Legal Minera California Una de la Sierra Pena Negra (SLM California), as vendors. CMC and SLM California originally held the mineral concessions that cover the Caserones deposit. Ownership of the 2.88-per-cent NSR royalty is currently divided between CMC (32.5 per cent) and SLM California (67.5 per cent). SLM California's sole current purpose is to distribute its royalty income to its shareholders as dividends and pay Chilean taxes on its income.

Elemental Altus has agreed to purchase an additional 1.56 new shares in SLM California for a total cash consideration of $2,598,802 (U.S.). The acquisition is in addition to the purchase of 1.29 shares announced on March 9, 2023, and increases the shareholding of the company in SLM California to 24.35 per cent. The company's effective NSR interest in Caserones has increased by 0.030 per cent to 0.473 per cent.

Caserones mine overview

The Caserones mine is a large, open-pit porphyry copper-molybdenum deposit, located within a 170-square-kilometre land package at an elevation of approximately 4,300 metres above sea level in the borough of Tierra Amarilla, in the Atacama region of northern Chile. The mine is approximately 15 kilometres from the border with Argentina, 162 km southeast of the city of Copiapo and 800 km north of the capital, Santiago.

Located at the southern end of the well-documented Maricunga mineral belt, the geology of Caserones comprises an Early Miocene porphyry system associated with a cluster of dacite porphyries and breccias intruding Palaeozoic granitic, volcanic, and metamorphic rocks. Caserones has a well-developed supergene enrichment profile of oxide copper and secondary chalcocite that overlies hypogene sulphide (chalcopyrite-molybdenite) mineralization. The mine produces copper and molybdenum concentrates from a conventional crusher, mill and flotation plant, as well as copper cathodes from a dump leach, solvent extraction and electrowinning plant, and has been in operation since 2014.

About Elemental Altus Royalties Corp.

Elemental Altus is an income-generating precious metals royalty company with 10 producing royalties and a diversified portfolio of preproduction and discovery-stage assets. The company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties, as well as generating royalties on new discoveries. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

Qualified person

Richard Evans, FAusIMM, senior vice-president, technical, for Elemental Altus, and a qualified person under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure contained in this press release.

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