Mr. David Cole reports

ELEMENTAL ROYALTY EXECUTES AGREEMENT WITH KGHM SUBSIDIARY TO OPTION AND EXPLORE FOUR PORPHYRY COPPER PROJECTS IN NEVADA

Elemental Royalty Corp.'s wholly owned subsidiary, Bronco Creek Exploration Inc. (BCE), has entered into an exploration and option agreement with Robinson Holdings (USA) Ltd. (RHUSA), a subsidiary of KGHM Polska Miedz SA, on four of its porphyry copper projects -- Royston, Big E, Tango and Whiskey -- in Mineral and Nye counties, Nevada. KGHM is a major copper and silver producer with operating mines in Europe and the Americas. The agreement provides Elemental with execution payments, option payments and work commitments on the projects during the six-year earn-in period and grants RHUSA the opportunity to earn 100-per-cent interest in the projects. for any project in which RHUSA elects to earn in, Elemental retains a 2-per-cent net smelter return (NSR) royalty interest as well as annual advance royalty (AAR) and certain milestone payments.

Highlights:

• Exploration and option agreement executed with RHUSA on four projects to explore for copper porphyries in west-central Nevada;
• The agreement includes execution payments totalling $315,000 (U.S.) and option payments up to $600,000 (U.S.) per project to Elemental over a six-year earn-in period;
• During the earn-in period, RHUSA will finance up to $5-million (U.S.) in exploration expenditures per project;
• Upon exercise of a project's option, Elemental will be granted a 2-per-cent NSR royalty as well as escalating AAR payments, starting at $50,000 (U.S.), and other milestone payments as the project advances.

The four projects were generated by BCE as part of its continuing Western U.S. generative efforts focused on porphyry copper and related systems. Projects are situated within a mining-friendly region that boasts excellent infrastructure and access, and each project presents a unique opportunity to advance an underexplored porphyry copper-(gold-molybdenum) system in Nevada.

David M. Cole, chief executive officer of Elemental, commented: "We are excited to collaborate with KGHM to advance each of these prospective properties in Nevada. The Elemental team continues to identify and generate exploration opportunities at low cost, and a porphyry discovery on any one of these projects would represent significant value to all parties. This transaction reflects our ability to attract high-calibre partners and operators in Tier 1 jurisdictions, and it continues to build momentum in our growth trajectory."

Commercial terms overview

Under the terms of the agreement, RHUSA will acquire a 100-per-cent interest in each of the Royston, Big E, Tango and Whiskey projects by satisfying the following terms on a per-project basis over a six-year option period. Upon execution, RHUSA will pay $50,000 (U.S.) in cash, make a payment equal to the previous year's holding costs and make option payments totalling up to $600,000 (U.S.) during the six-year term of the option agreement. To exercise the option on a project, RHUSA must spend $5-million (U.S.) in exploration expenditures on that individual property.

Upon option exercise by RHUSA, Elemental will retain a 2-per-cent NSR royalty on each project. RHUSA will also make AAR payments of $50,000 (U.S.) per project, which will increase by $10,000 (U.S.) per year, until a total of $1.75-million (U.S.) has been paid or commercial production commences. In addition, RHUSA will make project milestone payments consisting of: $500,000 (U.S.) upon declaration of a resource, $750,000 (U.S.) upon completion of a preliminary economic assessment and $1-million (U.S.) upon completion of a feasibility study.

Overview of the projects

Royston: Located 30 kilometres northwest of Tonopah, Nev., the Royston project hosts a copper-(gold-molybdenum) porphyry system. The upper levels of the porphyry system are partially exposed; however, extensional faulting accompanied by significant westward tilting and the eruption of postmineral volcanics have buried more prospective portions of the system to the east. A five-hole reconnaissance reverse circulation (RC) drill program, completed by a previous partner, confirmed the presence of strongly altered quartz-sericite-pyrite zones with anomalous base and precious metals under thin postmineral volcanic cover. Geophysical surveys have defined robust chargeability anomalies that correlate with abundant sulphide mineralization in concealed host rocks. Two of the RC drill holes encountered strong alteration and increasing mineralization and were cased for re-entry on a follow-up drill program utilizing core tails.

Big E: Adjacent to Royston, the Big E project comprises a similarly tilted and dismembered porphyry copper-(gold-molybdenum) target. Outcropping porphyry dikes with strong sericite-pyrite alteration at surface project under postmineral volcanic and alluvial cover to the east. A previous partner completed a widely spaced three-hole reconnaissance RC program, which intersected similar porphyry dikes and associated quartz-sericite-pyrite alteration interpreted to represent the edge of the porphyry copper system. The paleo-downdip projection of the altered porphyry dikes remains untested, and the next stage of exploration will test these structural blocks that may represent the better mineralized core of the system.

Tango: The Tango project represents a pooled land package between BCE's claims and Great Western Mining Corp. PLC claims and targets a porphyry copper-molybdenum system located 100 kilometres west of Tonopah, Nev. (see Great Western's news release dated Aug. 12, 2024). Financial benefits from the agreement that pertain to the Tango project will be split 70 per cent/30 per cent between BCE and Great Western, respectively. Locally abundant quartz-copper oxide veining and associated widespread sericite-pyrite alteration outcrops over an approximately two-kilometre-by-two-kilometre area. The outcropping system footprint is bounded by postmineral volcanic and alluvial cover to the north and east. Historical drilling by Conoco and Humble Oil in the 1960s and 1970s failed to sufficiently test the system, largely due to shallow hole depths and a poor understanding of the alteration vectors. An IP (induced polarization) survey completed by GWM in 2021 detected chargeability anomalies, which highlight high-priority targets within untested zones of the system. The host-rock stratigraphy includes Ordovician carbonate units representing additional potential for skarn/replacement mineralization as well as the primary porphyry copper target.

Whiskey: Situated approximately five kilometres southwest of Tango, Whiskey is a porphyry copper-molybdenum target interpreted as a possible shallower-level analogue to Tango. The Whiskey project exhibits Aster anomalies, correlative with silicification and clay-sericite-pyrite alteration observed at surface, which are bounded by postmineral volcanic cover. Dikes are present at surface and are reported in historical drill logs. In 1980, a historical drill program exploring for gold reported an intercept of 2 volume per cent chalcopyrite from 88.4 to 97.5 metres depth, but copper was not assayed in the drill hole. Similarly, historical surface sampling also did not assay for copper, but results include anomalous molybdenum, silver, arsenic and mercury values. The historical results suggest that modern systematic exploration will reveal additional upside at the project, particularly since surface mineralization is interpreted to project beneath the postmineral volcanic cover.

Elemental is looking forward to partner with KGHM and will provide technical and operational support during the option period.

About Elemental Royalty Corp.

Elemental Royalty is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 18 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 Nasdaq Stock Market and the Toronto Stock Exchange under the ticker symbol ELE.

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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