Mr. Frederick Bell reports

ELEMENTAL ALTUS TO SELL DIBA GOLD PROJECT IN MALI TO ALLIED GOLD, OPERATOR OF THE ADJACENT FLAGSHIP SADIOLA GOLD MINE FOR CASH & NSR ROYALTY

Elemental Altus Royalties Corp. has executed a sale and purchase agreement (SPA) with Allied Gold Corp. for the sale of the company's 100-per-cent-owned subsidiary Legend Mali (BVI) III Inc., which indirectly owns 100 per cent of the Korali-Sud small-scale mining licence and Lakanfla exploration licence (combined, Diba) in western Mali. As consideration, Allied will pay up to $6-million (U.S.) in cash and grant a net smelter return (NSR) royalty of up to 3 per cent on gold produced from the project.

Highlights:

• The Diba project is located 15 kilometres south of the processing plant of Allied's flagship Sadiola gold mine and is adjacent to the Sadiola large-scale mining licence.
• Existing shovel-ready resource at Korali-Sud small-scale mining licence to be incorporated into the Sadiola mine plan in 2024 and 2025, fast-tracking royalty revenue and cash payments to Elemental Altus.
• Sale will add new near-term production royalty to the company, comprising:
  • 3 per cent on first 226,000 ounces of gold produced from within Korali-Sud;
  • 2 per cent on all future production in excess of defined 226,000 ounces from the project.
• Additional consideration of up to $6-million (U.S.) in cash, made up of:
  • $1-million (U.S.) on closing;
  • $1-million (U.S.) 90 days after commercial production with a long-stop date of 2025;
  • $2-million (U.S.) within 90 days of production of 100,000 ounces from within Korali-Sud;
  • $1-million (U.S.) within 90 days of production of 150,000 ounces from within Korali-Sud;
  • $1-million (U.S.) within 90 days of production of 200,000 ounces from within Korali-Sud.
• Diba hosts a National Instrument 43-101 compliant preliminary economic assessment (PEA) which confirmed a mineral resource estimate of:
  • 312,000 ounces of gold with a grade of 1.24 grams per tonne in the indicated category, including 199,000 ounces of gold in oxides with an average grade of 1.52 g/t;
  • 362,000 ounces of gold at 0.88 g/t in the inferred category.
• Allied plans to commence an infill drilling campaign to refine and expand the potential contribution of Diba to Sadiola's near-term production profile.
• Additional excellent potential exists for further expansion beyond the existing Resource based on the 107 square km project area in the same geological district as Sadiola with historical drill results including:
  • 4.78 g/t over 12 metres from Diba NW prospect;
  • 1.23 g/t Au over 127 m at Lakanfla Central prospect;
  • Potential for Yatela-type carbonate-hosted karst targets at Lakanfla.
• Deal demonstrates company's ability to generate new and high-impact royalties.

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

"We are delighted to enter this sale and royalty transaction with Allied Gold on our Diba gold project in western Mali. After a competitive process, we selected Allied as the successful bidder given the incredibly compelling operational synergies with their adjacent Sadiola gold mine complex, which is one of the largest and longest-operating multiopen-pit gold mines in Mali. Oxide material from the project is expected to be fast-tracked to production at Sadiola, greatly accelerating the time to first royalty cash flows, while also mitigating risks associated with the construction of a new mine.

"The consideration is a tiered NSR royalty of 3 per cent on the first 226,000 ounces that are expected to be fast-tracked into production from Korali-Sud, amounting to over 6,000 attributable ounces and thereafter a 2-per-cent NSR on all further ounces produced from the project. Additionally there is upfront cash and milestone payments totalling up to $6-million (U.S.).

"Based on our work to date, we are confident that the Diba project has significant exploration upside potential, being adjacent to and along strike from a historical resource of over 10 million ounces. We believe Allied's team have the technical capability to unlock the potential and deliver considerable future value to the company through the uncapped life of mine royalty."

Diba gold project: location

The 107 square km Korali-Sud small-scale mining licence and Lakanfla exploration licence are located five km apart in the Kayes region of western Mali along the Senegal-Mali shear zone, approximately 450 km northwest of the capital city of Bamako. The project is contiguous with the multimillion-ounce Sadiola gold mine licence acquired by Allied Gold from the previous operators AngloGold Ashanti and Iamgold Corp., and 35 km south of the multimillion-ounce Yatela former gold mine.

Diba gold project: geology and mineralization

Diba small-scale mining licence

Mineralization at the Diba deposit is sediment-hosted within a series of stacked quartz lenses, typically between 20 m and 40 m thick. The lenses are shallow-dipping at approximately 30 degrees angled to the east/east-southeast. The Diba deposit is considered to be controlled by a number of northwest- and northeast-orientated structures, with gold occurring as fine-grained disseminations in localized high-grade, calcite-quartz veinlets. Alteration at the Diba deposit is typically albite-hematite plus/minus pyrite, although pyrite content is generally very low (less than 1 per cent). The weathering profile at the Diba deposit is estimated to be up to 70 m vertical depth, resulting in extensive oxidation from surface. The oxide gold mineralization at the Diba deposit is predominantly found in saprolite within 50 m of surface and across a compact 700 m by 700 m area.

Lakanfla licence

The Lakanfla licence hosts a significant number of active and historic artisanal gold workings coincident with significant geochemical and gravity anomalies. The workings surround the Kantela granodiorite intrusion and cover an area of approximately 900 m by 500 m. The gold mineralization at Lakanfla is typically hosted within breccia zones which cut the granodiorite and surrounding carbonate metasediments. Drilling by the company has intersected 1.23 g/t Au over 127 m at the Lakanfla Central prospect, while historical intersections by previous operators include 9.78 g/t Au over 12 m and 5.20 g/t Au over 16 m as well as having intersected voids and unconsolidated sand from 165 to 171 m depth. The company has not verified the historic drilling data at the Lakanfla licence.

SPA terms and advisers

The company has entered into an agreement to sell its 100-per-cent-owned subsidiary Legend Mali (BVI) III, which indirectly owns 100 per cent of Korali-Sud and Lakanfla licences in Mali. The agreement remains subject to receipt of all required regulatory approvals.

The consideration comprises a 3-per-cent NSR royalty on the first defined 226,000 ounces of production from within Korali-Sud and a 2-per-cent NSR royalty on production thereafter from both Korali-Sud and Lakanfla. On closing of the SPA, Allied will pay $1-million (U.S.) in cash to the company. Allied will pay a further $1-million (U.S.) in cash on the earlier of 90 days after commercial production and Dec. 31, 2025 (if commercial production has not occurred). Allied will make a further payment of $2-million (U.S.) within 90 days of production of 100,000 ounces from within Korali-Sud and an additional $1-million (U.S.) payment when cumulative production reaches each of 150,000 ounces and then 200,000 ounces from within Korali-Sud.

Elemental Altus's financial adviser for the transaction is National Bank Financial.

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

Steven Poulton, executive chairman 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.

We seek Safe Harbor.