Mr. Frederick Bell reports

ELEMENTAL ALTUS ROYALTIES ANNOUNCES RECORD SECOND QUARTER REVENUE

Elemental Altus Royalties Corp. has released its operating and financial results for the quarter ended June 30, 2023. For complete details, please refer to the financial statements and associated management's discussion and analysis (MD&A) for the three and six months ended June 30, 2023, which can be found on SEDAR+ or the company's website.

Second quarter 2023 financial highlights:

• Record revenue of $2.6-million, up 25 per cent compared with Q2 2022;
• Record adjusted revenue of $4.7-million, inclusive of Caserones royalty revenue, up 127 per cent compared with Q2 2022;
• Record gold equivalent ounces (GEOs) of 2,377 ounces, up 109 per cent compared with Q2 2022;
• Record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.3-million, up 184 per cent compared with Q2 2022.

Royalty portfolio highlights and key developments:

• On March 27, 2023, Lundin Mining Corp. announced that it had entered into a binding purchase agreement to acquire a 51-per-cent interest in the Caserones copper-molybdenum mine in Chile:
  • On March 9, 2023, the company entered into a binding agreement to acquire an additional 0.025-per-cent effective net smelter return (NSR) royalty on Caserones;
  • On July 12, 2023, the company agreed to purchase an additional effective 0.030-per-cent NSR on Caserones, increasing the total effective NSR held to 0.473 per cent.
• On April 20, 2023, the company announced that it had completed the acquisition of an additional 0.25-per-cent NSR royalty on the Pickle Crow project in Ontario, Canada, from a private third party entity for total consideration of $300,000 (U.S.) in cash, increasing the effective NSR royalty held by the company to 2.25 per cent.

Highlights subsequent to June 30, 2023:

• On July 20, 2023, the company announced that it agreed to the sale of its 100-per-cent-owned Diba and Lakanfla gold licences in western Mali to Allied Gold Corp., the owner and operator of the Sadiola gold mine. As consideration, Allied will grant a near-term production NSR royalty of 3 per cent on the first 226,000 ounces of gold from certain deposits followed by a 2-per-cent uncapped royalty on all other production from the licences and pay up to $6-million in cash. The transaction will be completed after local regulatory approvals and filings are completed.
• On July 25, 2023, the company announced it had agreed to the sale of a 95-per-cent interest in its Daro and Zager copper-gold licences in northern Ethiopia to ANS Exploration. As consideration, ANS will pay $200,000 (U.S.) in cash and grant two uncapped NSR royalties of 2.5 per cent on copper and gold produced from the licences. The transaction will be completed after local regulatory approvals and filings are completed.

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

"The first half of 2023 has been very positive, with the company continuing to deliver record revenues and impressive growth in our attributable production quarter over quarter. This quarter, we continued to add exposure to one of our cornerstone assets, a royalty on the Caserones copper mine in Chile, and we look forward to seeing additional optimization on the asset now that Lundin Mining is the majority owner and operator.

"Subsequent to the end of the quarter, we generated three new gold and copper royalties through transactions on assets in Mali and Ethiopia. The royalty in Mali in particular offers the potential for near-term revenue at Allied's adjacent Sadiola gold mine and we look forward to adding further royalties to the portfolio in the second half of the year."

Operating asset highlights

An attached table summarizes the company's revenue from royalty interests during the three and six months ended June 30, 2023, and June 30, 2022. Adjusted revenue also includes accrued royalty revenue from equity investments for the same periods (see non-IFRS (international financial reporting standards) measures).

An attached table summarizes the company's GEOs from royalty interests during the three and six ended June 30, 2023, and June 30, 2022.

Elemental Altus expects to achieve previously announced guidance of 9,000 to 10,200 GEOs, weighted toward the second half of the year.

Quarterly changes to revenue received by Elemental Altus are driven primarily by fluctuations in production at the underlying mines, the timing of sales, changes in the price of commodities and assets being advanced to production.

Karlawinda gold mine, Australia:

• Capricorn reported record annual production at Karlawinda during the year to June 30, 2023, having produced 120,014 ounces.
• On April 26, 2023, Capricorn reported that its 73-hole (10,983 metres) RC (reverse circulation) drilling at the newly identified Berwick prospect, located two kilometres east of the Bibra open pit, detected near-surface gold mineralization over a 500-metre strike length and follow-up drilling is under way.
• Near-mine exploration has identified a number of additional prospects within five kilometres of the Bibra deposit, including Muirfield and Vedas.

Caserones copper mine, Chile:

• In Q2 2023, the company accrued adjusted royalty revenue of $2.13-million (before tax) using an estimate of Q2 sales from Lundin Mining's published production and a $900,000 upward adjustment based on under accrued revenue relating to Q1 2023.
• The company recorded a received dividend of $1.40-million relating to Q1 2023 sales.
• On July 13, 2023, Lundin Mining closed its previously announced acquisition of an initial 51 per cent of Caserones from JX Nippon Mining and Metals for $950-million. Lundin Mining has the right to acquire up to an additional 19-per-cent interest in Caserones for $350-million over a five-year period commencing on the first anniversary of the date of closing.
• Lundin Mining announced that Caserones annual production guidance for both 2024 and 2025 is 110,000 to 120,000 tonnes of copper and 1,500 to 2,500 tonnes of molybdenum on a 100-per-cent basis.

Wahgnion gold mine, Burkina Faso:

• Wahgnion throughput remained steady as production moved into the Samavogo pit during the quarter, where grades are expected to increase from Q3.
• On June 30, 2023, Endeavour Mining announced the sale of its Wahgnion and Boungou mines in Burkina Faso to Lilium Mining, a subsidiary of Lilium Capital.

Mercedes gold mine, Mexico:

• Bear Creek reported a revision of mining methods utilized at the mine, with the Marianas and San Martin deposits switched from cut and fill mining at both deposits to room and pillar mining at San Martin and sublevel caving and sublevel stoping at Marianas.
• Tonnes mined from the high-grade San Martin deposit (measured and indicated resource of 289,000 tonnes at 6.6 grams per tonne (g/t) gold (Au)) are expected to double from 400 to 800 tonnes per day during Q3 2023 as the available working faces increase. The deposit is expected to account for an estimated 50 per cent of H2 (second-half) 2023 gold production.

Bonikro gold mine, Ivory Coast:

• The company owns an NSR royalty on an area of the mine known as Pushback 5 at Allied Gold's open-pit Bonikro gold mine in Ivory Coast. At a gold price above $1,450, the NSR royalty is at an effective rate of 2.25 per cent, capped at 560,000 ounces.
• Allied Gold is expected to target full production from the royalty area during H2 2023.

Amancaya gold mine, Chile:

• In Q2 2023, attributable GEOs were broadly similar to Q1 2022.
• During the period, Austral focused exploration efforts at Amancaya on geological interpretation, having designated a shallow drill program to demonstrate continuity at the Oeste vein, a narrow gold-rich vein previously interpreted and parallel to the central vein.

Ballarat gold mine, Australia:

• The company owns a 1.25-per-cent NSR royalty on the underground Ballarat gold mine in Australia and also owns approximately $600,000 in accrued royalty payments.
• The current administrators are undertaking a sales process of the mine, which is expected to be finalized prior to the administration ending date of October, 2023.
• During the administration period, the mine has continued to operate.
• Tailings permits have been progressed offering a pathway to long-term management of the tailings.

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 news release.

Non-IFRS measures

The company has included certain performance measures that are not in accordance with international financial reporting standards. Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These non-IFRS measures do not have any standard meaning under IFRS and other companies may calculate measures differently.

Elemental Altus has included certain performance measures in this news release that do not have any standardized meaning prescribed by IFRS. The company's royalty revenue is converted to an attributable GEO basis by dividing the royalty revenue received in a period by the average gold price for the same respective period. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental Altus holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental Altus and maybe subject to uncertainty. There can be no assurance that such information is complete or accurate.

Royalty revenue is received at zero cost. Elemental Altus pays 20 per cent per ounce on streaming revenue from the Ming mine.

Adjusted revenue

Adjusted revenue is a non-IFRS financial measure, which is defined as including gross royalty revenue from associated entities holding royalty interests related to Elemental Altus's effective royalty on the Caserones copper mine. Management uses adjusted revenue to evaluate the underlying operating performance of the company for the reporting periods presented, to assist with the planning and forecasting of future operating results, and to supplement information in its financial statements. Management believes that in addition to measures prepared in accordance with IFRS such as revenue, investors may use adjusted revenue to evaluate the results of the underlying business, particularly as the adjusted revenue may not typically be included in operating results. Management believes that adjusted revenue is a useful measure of the company performance because it adjusts for items which management believes reflect the company's core operating results from period to period. Adjusted revenue is intended to provide additional information to investors and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. It does not have any standardized meaning under IFRS and may not be comparable with similar measures presented by other issuers.

Gold equivalent ounces

Elemental Altus's adjusted royalty, streaming and other revenue is converted to an attributable GEO basis by dividing the royalty and other revenue from associates in a period by the average gold price for the same respective period, plus the net gold ounces received in the period from streaming investments. The presentation of this non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently. The production forecast was derived using information that is available in the public domain as at the date hereof, which included guidance and estimates prepared and issued by management of the operators of the mining operations in which Elemental Altus holds an interest. The production forecast is sensitive to the performance and operating status of the underlying mines. None of the information has been independently verified by Elemental Altus and may be subject to uncertainty. There can be no assurance that such information is complete or accurate.

We seek Safe Harbor.