Mr. Frederick Bell reports

ELEMENTAL ALTUS GENERATES TWO NEW GOLD & COPPER ROYALTIES IN ETHIOPIA

Elemental Altus Royalties Corp. has generated two new gold and copper net smelter return (NSR) royalties, through the execution of a sale and purchase agreement for the sale of 95 per cent of its Ethiopian-focused Seychelles incorporated subsidiary Altau Resources Ltd. to Canadian incorporated ANS Exploration Corp. Through its local branch, Altau holds a 100-per-cent interest in the 299.5-square-kilometre Daro and 284.9 square km Zager licences located in the Arabian-Nubian shield geology of northern Ethiopia. The projects are prospective for the discovery of volcanogenic-hosted massive sulphide (VMS) copper and gold deposits.

Highlights:

• Royalty generation transaction with ANS on copper and gold projects in northern Ethiopia signed July 21, 2023;
• Transaction consideration includes:
  • Two uncapped 2.5-per-cent NSR royalties over highly prospective ground;
  • $200,000 (U.S.) in cash with $50,000 (U.S.) upfront and five quarterly payments of $30,000 (U.S.);
  • 5-per-cent equity interest in Altau retained, non-dilutable until completion of a feasibility study;
  • Up to 5-per-cent equity interest in ANS upon any future initial public offering of ANS equity;
  • Milestone performance cash payments (for delivery on either of the Projects) of:
    • $500,000 (U.S.) upon a compliant resource above one million ounces (gold equivalent);
    • $500,000 (U.S.) on publication of a feasibility study;
• ANS has a five-year buyback option on up to 1 per cent of the royalties for $1.5-million (U.S.) each;
• ANS selected by company given its high-calibre management and technical team with proven experience in East Africa;
• Transaction remains subject to a number of administrative conditions.

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

"We are delighted to complete this royalty generation transaction with ANS on two strategically located gold and copper licences totalling 584 square km in northern Ethiopia. The projects were selected by our technical team based on their geological potential to host economic VMS-style deposits, as mined elsewhere on the Arabian-Nubian shield. Our shareholders will benefit from exposure to two new 2.5-per-cent NSR royalties, cash of $200,000 (U.S.), performance milestone payments and retained project equity. This transaction exemplifies our capacity to generate organic value by working with high-quality counterparties."

Christopher Schmidt, chief operating officer of ANS, commented:

"We are excited to commence fieldwork on these two highly prospective licences in Ethiopia to generate drill-ready targets for 2024. Both licences are a great addition to our exploration portfolio in the Nubian shield. The extensive outcrop of Neoproterozoic intraoceanic island arc and back-arc basin complexes is prospective for near-surface base metal discoveries."

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.