Mr. David Cole reports

ELEMENTAL ROYALTY OPTIONS THREE EXPLORATION LICENSES IN SERBIA TO BHP

Elemental Royalty Corp. has executed a definitive option and earn-in agreement covering three exploration licences in the Bor mining district of Serbia to a wholly owned subsidiary of BHP Group Ltd. The three exploration-stage projects are currently held by Elemental's wholly owned Serbian subsidiary Magma Resources doo and BHP will have the option to acquire Magma in exchange for cash payments and by satisfying work commitments. Elemental will retain 2-per-cent NSR (net smelter return) royalties on the projects as well as other considerations.

The projects nicely complement Elemental's other royalty interests in the Bor district, which include the Brestovac, Brestovac West and Jasikovo East-Durlan Potok properties. Brestovac is one of Elemental's flagship royalties, covering Zijin Mining Group Co. Ltd's producing Cukaru Peki copper-gold mine and recently discovered Malka Golaja copper-gold deposit. Zijin has been rapidly expanding its Cukaru Peki operations, increasing capacity at its current mill while continuing to add infrastructure for the development of the Lower zone porphyry copper-gold deposit. Zijin's published mineral resources and reserves for Cukaru Peki have also continued to grow rapidly, as shown in Zijin's recent annual reports. The Lenovac projects, included in the BHP agreement, cover the extension of the geologic trend that hosts the Cukaru Peki and Malka Golaja copper-gold deposits to the south.

Commercial terms overview (all terms in United States dollars)

Pursuant to the agreement, BHP can acquire and retain a 100-per-cent interest in Magma and the projects by satisfying each of the following conditions: (a) making a payment of $200,000 to the company on the six-month anniversary of the agreement, (b) annual payments of $200,000 to the company on every anniversary of the agreement until the earn-in is complete, and (c) completing $5-million in cumulative exploration expenditures on the projects within five years.

Upon BHP's option exercise and earn-in, Elemental will retain a 2-per-cent NSR royalty interest on each project. BHP may buy back up to a total of half a percent (0.5 per cent) of the royalty in quarter percent (0.25 per cent) increments; 0.25 per cent can be purchased for $5-million before the eighth anniversary of the agreement and 0.25 per cent can be purchased for $5-million before the 11th anniversary of the agreement. BHP will also make annual advance royalty payments of $200,000 to the company until the commencement of commercial production.

Overview of the projects

The Bor mining district in eastern Serbia has been one of Europe's largest copper producers for over a century, where historic and current mining operations have been developed within a cluster of porphyry Cu-Au, high-sulphidation epithermal and skarn systems (including Bor, Veliki Krivelj, Majdanpek and Cukaru Peki). The Elemental projects were originally acquired in 2023 and 2024, and are positioned along trend of Zijin Mining's Bor and Cukaru Peki operations. Although there are still near-surface deposits being identified in the area, several recent discoveries have been made at relatively deep levels (such as Zijin's Cukaru Peki and Dundee Precious Metals' Coka Rakita deposits) and require deep drilling. BHP's deep-sensing geophysical capabilities and existing regional interest make them an ideal exploration partner for the projects.

Elemental has acquired over 150 square kilometres of mineral rights along trend of the major copper and gold deposits within the Bor mining district. Previous exploration in the Bor district has typically targeted Upper Cretaceous andesite units, which host the majority of the epithermal and porphyry systems at the Bor copper complex and Cukaru Peki mine. However, new discoveries such as Dundee Precious Metals' Coka Rakita skarn deposit highlights that the different geologic settings and older Jurassic and Paleozoic host rocks are also prospective for additional discoveries. The Elemental projects include both the traditionally prospective Upper Cretaceous andesite units of the Timok magmatic complex, as well as deeper host rock packages where several recent discoveries have been made.

The Lenovac North and South licences lie directly south of the Zijin's Brestovac licence, which hosts the Cukaru Peki and the recently discovered Malka Golaja copper-gold deposits. Elemental's Lenovac licences cover the southern extension of this trend where a regional fault displaces the trend of mineralization and favourable host rocks to the southwest. The licences largely comprise prospective Cretaceous volcanic and sedimentary units with some areas of Miocene cover.

The Durlan Istok licence is located to the southeast of Zijin's Majdanpek porphyry copper-gold mine and east of Coka Marin, a high-grade polymetallic volcanogenic/epithermal deposit. The Durlan Istok licence contains the stratigraphic sections that hosts Coka Marin and the Coka Rakita skarn farther to the southwest.

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.

North American investor relations

Elemental has retained the services of Renmark Financial Communications Inc. to handle its investor relations activities in North America. In consideration of the services to be provided, the monthly fees incurred by Elemental will be a cash consideration of up to $9,000, starting Jan. 1, 2026, for a period of seven months ending on July 31, 2026, and monthly thereafter. Renmark Financial Communications does not have any interest, directly or indirectly, in Elemental or its securities, or any right or intent to acquire such an interest.

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.

Elemental Royalty trades on the TSX Venture Exchange under the ticker symbol ELE, and on the Nasdaq Stock Market under the ticker symbol ELE.

Qualified person

Dr. Eric P. Jensen, 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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