Mr. David Cole reports

ELEMENTAL ROYALTY EXECUTES FOUR OPTION AGREEMENTS TO SELL PROJECTS IN ARIZONA TO IVANHOE ELECTRIC

Bronco Creek Exploration Inc. (BCE), a wholly owned subsidiary of Elemental Royalty Corp., has executed four separate option agreements with Rocksteady Exploration Inc., an Arizona corporation and subsidiary of Ivanhoe Electric Inc. (NYSE American: IE) (Toronto Stock Exchange: IE) for the Dragon's Tail, Copper King, Sleeping Beauty-Jasper Canyon and Lomitas Negras projects in Arizona, United States, in order to explore for porphyry copper style mineralization.

The projects are located within the prolific Laramide porphyry copper belt, adjacent to and within key mineral districts in Arizona. The agreements provide Elemental with execution payments, option payments and required work commitments on the projects during the earn-in period. Additionally, upon earn-in for a given project, Elemental will be granted a 2.5-per-cent net smelter return (NSR) royalty with up to 0.5-per-cent buydown rights to Ivanhoe Electric, receive annual preproduction payments as well as certain milestone payments as the projects advance providing the company with near-term cash flow and long-term upside.

BCE acquired the projects through the staking of open ground after recognizing overlooked opportunities in districts with a history of exploration. BCE's record of organically generating compelling new targets in historical mining districts underscores the strength of the company's project generation business model.

Commercial terms overview

Under the terms of the agreements, Ivanhoe Electric can earn 100-per-cent interest in the four projects over an eight-year option period by providing: a) an execution payment totalling $240,000 (U.S.), b) option payments totalling up to US$2,325,000 (U.S.), and c) cumulative exploration expenditures of up to $10.8-million (U.S.) over the eight-year term of the option agreements. Payments and exploration expenditures are made and required on a per-project basis and can be executed on a per-project basis. Ivanhoe Electric may also drop an option at any time without further payment.

Upon option exercise by Ivanhoe Electric, Elemental will retain a 2.5-per-cent NSR royalty on each applicable project; 0.5 per cent of the royalty may be bought back for a total of $4-million (U.S.) per project, over two designated tranches. In addition, on a per-project basis, Ivanhoe Electric will make annual preproduction payments and certain project milestone payments to Elemental upon the announcement of an initial resource and upon completion of the earlier of a prefeasibility or feasibility study.

David Cole, chief executive officer of Elemental Royalty, commented: "Elemental is excited to see Ivanhoe Electric advance these highly prospective properties. The agreement with Ivanhoe Electric serves to reinforce our belief in the royalty generation model through exploration driven growth, progressing new potential royalties in the Laramide belt in Arizona with a Tier 1 operator."

Project overviews

Dragon's Tail: The project is located approximately eight kilometres north of the Resolution copper deposit within the Superior mining district in central Arizona. At Dragon's Tail, the target identified by BCE is a concealed porphyry copper and skarn mineralization within a tilted series of Paleozoic and Proterozoic host rocks beneath postmineral cover rocks. The current target area comprises coincident geologic, geochemical and geophysical anomalies. Prospective host rocks outcrop on the western portion of the property and contain veining, alteration assemblages, and geochemical signatures consistent with the distal edge of a porphyry copper system. The observed alteration and mineralization is more strongly developed than that seen in similar host rocks exposed adjacent to the nearby Resolution deposit. Zonation of these geologic and geochemical features indicate a target down section, to the east within the tilted sequence of host rocks. BCE and a previous partner completed an induced polarization (IP) geophysical survey over the target area which closely matches the known geology and highlights a chargeable zone within Paleozoic carbonates. The project is currently permitted for an initial reconnaissance drill test of the current geologic target.

Copper King: The Copper King project is adjacent to Dragon's Tail and located roughly five kilometres from the Resolution copper deposit. Here the target identified by BCE is again a porphyry copper and related skarn mineralization within a tilted sequence of supracrustal host rocks. Surface exposures at Copper King exhibit a broad area of porphyry style alteration including, but not limited to, marbleization and localized calc-silicate alteration with visible copper mineralization (as oxides and sulphides) in carbonate host rocks, quartz-sericite-pyrite (QSP) alteration within siliciclastic host rocks and hydrothermal biotite-chlorite in mafic host rocks along with several porphyry related dikes. As at Dragon's Tail, these expressions of alteration and mineralization are more strongly expressed at Copper King than in exposures within the same stratigraphy observed beyond postmineral cover rocks at the nearby Resolution deposit. Initial drilling by previous BCE partners on the project had intercepted localized high-temperature alteration with focused zones of bornite-chalcocite-chalcopyrite mineralization, at depth. This drilling appears to have missed the core of a tilted and mineralized system.

Sleeping Beauty-Jasper Canyon: The combined Sleeping Beauty-Jasper Canyon project targets multiple fault-displaced zones of mineralization from the Pinto Valley-Copper Cities dismembered porphyry system within the prolific Globe-Miami mining district. Previous workers documented that the mineralization at Copper Cities was truncated and offset by the Sleeping Beauty fault. Movement on the moderately steep fault appears to have down-dropped chalcopyrite rich mineralization from the northern portion of the Copper Cities deposit. Depending upon the timing of displacement, this block may have experienced supergene enrichment before it was down dropped and preserved during mid-Tertiary extension leading to potential higher grades.

Lomitas Negras: The Lomitas Negras project is located approximately 20 kilometres southeast of the San Manuel-Kalamazoo porphyry copper deposit and shares many geologic features with the porphyry system that led to the publication of the porphyry copper model by David Lowell. A window of Paleozoic limestone exposed in postmineral cover rocks exhibits variable brecciation, marbleization and silicification in local manto-like bodies with base metal mineralization (Cu-Mo-Pb-Zn-Mn-V), potentially related to an undiscovered porphyry copper system that is dismembered and tilted beneath postmineral cover rocks. Structures that offset the orebody at San Manuel-Kalamazoo can be traced under cover through various geophysical surveys into the Lomitas Negras target area and provide context for the amount of extension and dismemberment that likely affect mineralized fault blocks at the project. An initial drill test by a past BCE partner, targeting the causative system, intercepted sericite-altered Precambrian granite at depth and provides an additional targeting vector to aid future exploration.

This transaction is an example of the execution of the royalty generation business model in providing turnkey and drill-ready exploration projects to partner companies in exchange for royalty interests and preproduction cash flow.

Comments on adjacent or nearby districts, mines and deposits

The districts, mines and deposits discussed in this news release provide context for Elemental's projects, which occur in similar geologic settings, but this is not necessarily indicative that the company's projects host similar tonnages or grades of mineralization.

About Elemental Royalty Corp.

Elemental Royalty is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 16 producing assets and more than 200 royalties, anchored by cornerstone assets and operated by world-class mining partners. Formed through the merger of Elemental Altus and EMX, the company combines Elemental Altus's record of accretive royalty acquisitions with EMX's strengths in royalty generation and disciplined growth. This complementary strategy delivers both immediate cash flow and long-term value creation, supported by a best-in-class asset base, diversified production and sector-leading management expertise.

Qualified person

Michael P. Sheehan, CPG, a qualified person as defined by National Instrument 43-101 and employee of the company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

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