Mr. Frederick Bell reports

ELEMENTAL ALTUS TO ACQUIRE AN EXISTING ROYALTY ON ARIZONA SONORAN'S CACTUS PROJECT FROM RCF OPPORTUNITIES FUND L.P.

Elemental Altus Royalties Corp. has entered into a binding agreement to acquire two existing royalties from RCF Opportunities Fund LP for consideration of $10-million (U.S.) payable in common shares of Elemental Altus. The royalties include an aggregate 0.68-per-cent net smelter return (NSR) royalty on the Cactus project in Arizona, which is 100 per cent owned by Arizona Sonoran Copper Company Inc. (ASCU), and a 0.5-per-cent gross revenue royalty (GRR) on the Nyanga project in Gabon, which is 100 per cent owned by Armada Metals Ltd.

Acquisition highlights:

• 0.68-per-cent NSR royalty on the advanced development-stage Cactus project:
  • Cactus is a brownfield porphyry copper project in Arizona which produced 200,000 short tons of copper between 1974 and 1984;
  • Project is located on private land, has major development permits in place and is 100 per cent owned by ASCU;
  • Timely acquisition as a heap leach preliminary feasibility study (PFS) is under way and is expected to substantially rescale the project with the addition of the adjacent Parks/Salyer deposit, targeting 45,000 to 50,000 short tons of annual copper production over an approximately 30-year life of mine;
• 0.5-per-cent GRR on the exploration-stage Nyanga project, a highly prospective magmatic nickel-copper sulphide project in Gabon with royalty coverage of 2,725 square kilometres;
• Adds RCF as a new shareholder to Elemental Altus's high-quality and institution-focused share register.

Frederick Bell, chief executive officer of Elemental Altus, commented:"We are pleased to continue to enhance our portfolio through the additions of the Cactus and Nyanga royalties and also welcome RCF, a highly recognized and credible mining investor, to our share register. The Cactus royalty substantially bolsters our advanced development pipeline with a uniquely derisked copper asset in a premier jurisdiction. Operator Arizona Sonoran has demonstrated an outstanding rate of progress since acquiring the mine, and we eagerly anticipate the upcoming PFS expected to showcase the potential scale of the operation. In addition, the Nyanga royalty offers exposure to district-scale discovery opportunities led by a highly experienced exploration team."

Terms of the acquisition

Elemental Altus has agreed to pay consideration of $10-million (U.S.) for the royalties through the issuance of 11,111,111 Elemental Altus common shares at a price of $1.20 per share. The shares issued to RCF will represent approximately 5.7 per cent of the company's enlarged share capital.

Closing is expected to occur on or before Oct. 31, 2023, and is subject to certain conditions, including the approval of the TSX Venture Exchange.

Cactus project overview

The Cactus project, formerly named Sacaton, is 100 per cent owned by Arizona Sonoran. The project is situated on private land in Pinal county, Arizona, the United States' leading copper-producing state and seventh-ranked mining jurisdiction globally, per the Fraser Institute's 2022 Investment Attractiveness Index.

The Cactus project has an indicated resource of 151.8 million short tons of 0.531 per cent total copper (CuT) for 806,000 short tons of contained copper and an inferred resource of 449.9 million short tons of 0.544 per cent CuT for 2.45 million short tons of contained copper. Of the inferred resource, 143.6 million short tons of 1.015 per cent CuT for 1.46 million short tons of contained copper are from the Parks/Salyer deposit.

A PFS is targeted for release by operator ASCU by the end of Q1 2024, incorporating the Parks/Salyer deposit and the resumption of open-pit mining at Cactus.

The Cactus project previously produced from the Sacaton open pit, which extends to a depth of 317 metres and produced 38.1 million short tons of ore, recovering 200,000 short tons of copper, 27,455 ounces of gold and 759,000 ounces of silver.

Elemental Altus's royalty covers the majority of the combined Cactus project area and resource, excluding the 0.64-square-kilometre Bronco Creek tenement estimated to cover approximately 25 per cent of the Parks/Salyer resource and 10 per cent to 15 per cent of the total resource.

Nyanga project overview

The Nyanga project is 100 per cent owned by Armada. The project is located in the Nyanga province of southern Gabon. The project, consisting of two expansive tenements, extends for more than 75 kilometres of strike length and covers a land package of 2,725 square kilometres.

The project hosts multiple mafic-ultramafic intrusions, which can host large scale nickel-copper sulphide deposits, principally along two significant trends -- the Libonga-Matchiti trend (LMT) and the Ngongo-Yoyo trend (NYT). Armada Metals has commenced geophysical testing of the licence areas to generate targets across the whole belt following a successful stage 1 diamond drilling program during 2022.

Armada boasts a management team and board with a strong record of success exploring in Africa. Key members of the exploration staff were part of the Ivanhoe Mines exploration team awarded the 2015 PDAC Thayer Lindsley Award for an international mineral discovery at Kamoa, which has a current predevelopment indicated resource of 38 million tonnes copper at 2.74 per cent copper.

About Elemental Altus Royalties Corp.

Elemental Altus is an income-generating precious metal 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.

Qualified person

Richard Evans, FAusIMM, is 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.

We seek Safe Harbor.