Mr. Frederick Bell reports

ELEMENTAL ALTUS ANNOUNCES $12M IN PAYMENTS FROM MING SALE

Elemental Altus Royalties Corp. expects to receive an initial $12.1-million (U.S.) in cash and equity as a result of its secured creditor claim against Rambler Metals and Mining Ltd. in relation to the company's Ming gold stream.

Highlights:

• The initial $12.1-million (U.S.) relating to the Ming stream contributes to approximately $20-million (U.S.) in one-off payments the company expects to receive from across the portfolio in 2024 to 2025.
• This total of approximately $20-million (U.S.) in one-off payments are in addition to the company's coming 2024 royalty revenue guidance, which is expected to represent material growth from 2023.
• Elemental Altus received an initial $2.3-million (U.S.) ($3.5-million (Australian)) in shares of Firefly Metals Ltd. in February, 2024.
• The company will receive a further $9.8-million (U.S.) ($15-million (Australian)) split equally between cash and equity in April, 2025.
• Including $500,000 (U.S.) in stream revenue received, the company expects a minimum total return of $12.6-million (U.S.) from the Ming stream, compared with the 2022 acquisition for $11-million (U.S.):
  • A further $900,000 (U.S.) ($1.2-million) has been held back subject to final determinations, with any remaining balance to be paid to Elemental Altus in cash.

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

"The conclusion of the process relating to the Ming stream delivers certainty moving forwards as well as material funds to redeploy in a gold sector that is trading at multiyear lows. The diversified nature of our portfolio combined with the downside protection structured into the stream means that we will receive more than our investment even in a higher-risk, higher-reward scenario where our original thesis did not play out.

"Near term, Elemental Altus now expects to receive over $60-million (U.S.) in combined adjusted revenue and milestone payments over 2024 and 2025. Combined with over $10-million (U.S.) in cash and materially lower costs versus 2023, the company is in the strongest financial position it has been in at a time when funding to the mining sector is near to cyclical lows.

"We look forward to releasing our 2024 guidance, which we expect to be another consecutive record, with higher revenue expected in particular from Ballarat and Bonikro as well as maiden production from Diba."

Ming payments

Following a formal sales and investment solicitation process (SISP) relating to Rambler Metals and Mining, the Supreme Court of Newfoundland and Labrador approved a bid from Firefly to acquire the Rambler Group for a total consideration of up to $65-million (Australian) on Sept. 11, 2023.

The company had the right to submit a secured claim against the total consideration being paid alongside other secured creditors. Following shareholder approval and completion of the acquisition by Firefly, the company has now received an initial approximately $3.5-million (Australian) in Firefly shares with a further $7.5-million (Australian) in cash and $7.5-million (Australian) in equity, based on the volume-weighted average price at the time, to be received in April, 2025.

There is a further amount of up to $1.2-million potentially receivable, which has been held back subject to determination of final claims. The company expects this to occur in the coming months and any balance due to Elemental Altus will be received in cash as this process concludes.

About Elemental Altus Royalties Corp.

Elemental Altus is a revenue-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.

We seek Safe Harbor.