Mr. Frederick Bell reports

ELEMENTAL ALTUS ROYALTIES ANNOUNCES RECORD YEAR TO DATE REVENUE

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

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

"The third quarter of 2023 has seen the announcement of three new royalty acquisitions alongside the creation of nine gold royalties through the sale of our in-house-generated projects in Egypt, Mali and Ethiopia. The Cactus copper royalty acquisition in the U.S. adds a high-quality, long-life asset to the portfolio that fits well into our development portfolio, while the increase to the Caserones copper royalty in Chile is in line with our strategy to maintain our exposure to high-quality producing assets. The announced transactions on the royalty generation front give us substantial upside through a combination of cash payments and continuing equity exposure with our partners Allied Gold, In2Metals and ANS Exploration.

"In terms of continued revenue growth, we expect our Bonikro gold royalty in Cote d'Ivoire to materially ramp up in the coming quarters and represent the majority of production for the mine in the coming years. The Diba gold royalty is expected to be fast-tracked into production at the adjacent Sadiola mine in H1 2024 by Allied Gold and likewise represent a material new source of royalty revenue. The combination of increasing royalty revenue in 2024 alongside reduced G&A and generative expenditure should put the company in a very strong position to continue to take advantage of accretive royalty acquisition opportunities going forward."

Year to Sept. 30, 2023, highlights:

• Record revenue of $7.8-million (U.S.) (increase of 10 per cent versus 2022) and adjusted revenue of $12.2-million (U.S.) (increase of 58 per cent versus 2022), inclusive of Caserones royalty revenue;
• Record gold equivalent ounces (GEOs) of 6,187 oz (increase of 47 per cent versus 2022);
• Record adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $7.8-million (U.S.) (increase of 41 per cent versus 2022).

Q3 2023 highlights:

• Revenue of $2.4-million (U.S.) and adjusted revenue of $3.7-million (U.S.), inclusive of Caserones royalty revenue;
• GEOs of 1,886 oz;
• Adjusted EBITDA of $2.2-million (U.S.);
• $2-million (U.S.) cash from operations plus distributions from associates, inclusive of Caserones royalty revenue.

Royalty portfolio highlights and key developments:

• The company announced the acquisition of a 0.68-per-cent net smelter return (NSR) royalty on the Cactus copper project, which is 100 per cent owned by Arizona Sonoran Copper Company Inc. (ASCU), and a 0.5-per-cent gross revenue royalty on the Nyanga copper-nickel project in Gabon, which is 100 per cent owned by Armada Metals Ltd., from RCF Opportunities Fund LP.
• During the quarter, the company increased its existing NSR royalty on the operating Caserones mine from private third party vendors. The company's total effective NSR interest is now 0.473 per cent.
• The company announced the sale of the Diba and Lakanfla gold projects in western Mali to Allied Gold ML Corp. The projects are contiguous with the Sadiola large-scale gold mining licence that is owned and operated by Allied and the company is expecting near-term royalty revenue. The consideration for the sale was an uncapped 3-per-cent NSR royalty on the first 226,000 ounces of gold produced from a defined deposit and 2-per-cent NSR on all future production in excess of 226,000 ounces. A cash payment of $1-million (U.S.) was also paid on closing and up to $5-million (U.S.) in cash is payable in deferred production based milestones.
• The company completed the sale of an 80.1-per-cent interest in Akh Gold to In2Metals Explorer sarl in return for upfront and deferred cash, a $10-million (U.S.) expenditure commitment, and a 1.5-per-cent NSR royalty on its Egyptian exploration licences.
• The company agreed the sale of its Daro and Zager licences in Ethiopia to Canadian incorporated ANS Exploration Corp. for $200,000 (U.S.) cash over five quarters, up to $1-million (U.S.) in milestone payments, 2.5-per-cent NSR royalties with a five-year buyback option on up to 1 per cent of the royalties for $1.5-million each (U.S.) and a retained equity interest.

Operating asset highlights

The attached table summarizes the company's revenue from royalty interests during the three and nine months ended Sept. 30, 2023, and 2022. Adjusted revenue also includes accrued royalty revenue from equity investments for the same periods.

The attached table summarizes the company's GEOs from royalty interests during the three and nine months ended Sept. 30, 2023, and 2022.

At current gold prices, Elemental Altus expects to receive adjusted revenue for 2023 of $16.1-million (U.S.) to $17.7-million (U.S.), approximately in line with previous adjusted revenue guidance of $16.2-million (U.S.) to $18.4-million (U.S.). This equates to approximately 8,200 to 9,000 GEOs, a decrease from the previous guidance of 9,000 to 10,200 GEOs due to lower copper prices relative to gold, a slower-than-expected ramp-up from the company's royalty at Bonikro that is expected to contribute materially in 2024, and revised guidance from the company's operators at Ballarat, Mercedes and Amancaya.

Additionally, Elemental received $1-million (U.S.) during the quarter through the transaction with In2Metals in Egypt and subsequent to the quarter received $1-million (U.S.) from the sale of the Diba project. Additional milestone payments are expected in 2024.

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:

• The company owns a 2-per-cent NSR royalty on the Karlawinda gold project.
• Q3 2023 gold production from Karlawinda was 29,700 ounces (Q2 2023: 28,859 ounces) in line with its fiscal year 2024 guidance range of 115,000 to 125,000 ounces.
• On July 27, 2023, Capricorn Metals Ltd. declared an updated JORC 2012 compliant ore reserve and mineral resource update featuring an initial Resource for Karlawinda gold project East (KGP East), including an indicated resource of 1.3 million tonnes at 0.8 gram per tonne Au for 33,000 oz of contained gold. While not yet material, the resource area includes the Berwick and Muirfield deposits, which are entirely covered by Elemental Altus's royalty, and is evidence of further satellite resources proximal to the existing Karlawinda processing plant. Capricorn notes that drilling in late 2023 is planned with the aim of bringing KGP East into reserves as a satellite pit.
• In the same update, Capricorn announced its plans to commence a follow-up aircore drill program at the Vedas prospect, wholly covered by Elemental Altus's royalty. The results from the planned drilling and previously outlined drilling during the June quarter are expected to form part of an initial resource on the prospect in due course.

Caserones copper mine, Chile:

• The company owns a 0.473-per-cent NSR royalty on Caserones.
• The company accrued adjusted royalty revenue of $1.27-million (before tax) using an estimate from Lundin Mining Corp.'s published production and received a dividend of $1.1-million (U.S.) relating to Q2 2023 sales.
• Subsequent to the period-end, Lundin Mining announced an increase in 2023 guidance for Caserones to 65,000 to 69,000 tonnes of copper, reflecting strong performance during the year. Lundin Mining also announced that an initial 10,000-metre drilling program had begun at Caserones, the largest since the commercial production began in 2013. The drill program is set to target multiple near-mine and regional targets within the 170-square-kilometre licence area, with all priority drill targets within Elemental Altus's royalty area.

Wahgnion gold mine, Burkina Faso:

• The company owns a 1-per-cent NSR royalty on Wahgnion.
• Q3 2023 gold sales were 35,063 ounces (Q2 2023: 31,455 ounces).
• Production is expected to be weighted toward the second half of the year as an increasing proportion of ore is sourced from the higher-grade Samavogo and Stinger pits.
• The strip ratio was expected to reduce over the course of 2023 alongside this transition.

Bonikro gold mine, Ivory Coast:

• The company owns an NSR royalty on a portion of Allied Gold's open-pit Bonikro gold mine called Pushback 5. At a gold price above $1,450, the NSR royalty is at an effective rate of 2.25 per cent.
• Mining volumes are continuing to increase from Pushback 5 as it becomes the mainstay of production at Bonikro going forward and the company expects a materially increased revenue contribution over the coming months.

Cactus copper project, United States:

• During the quarter, the company acquired a 0.68-per-cent NSR royalty which covers the majority of the combined Cactus project area and Resource.
• On Oct. 16, 2023, ASCU announced an updated mineral resource estimate at Cactus, including:
  • Measured and indicated resource of 445.7 million short tons at a grade of 0.589 per cent total copper (CuT) for 5.17 billion pounds of copper;
  • Inferred resource of 223.8 million short tons at a grade of 0.472 per cent CuT for 2.21 billion pounds of copper.
• ASCU confirmed that the updated resource will be used to support the coming prefeasibility study (PFS) which remains on track and on budget for release Q1 2024. The PFS is expected to outline a 30-year operation targeting average production of 45,000 to 50,000 short tons of copper per year.

About Elemental Altus Royalties Corp.

Elemental Altus is a cash-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.