Mr. David Cole reports

ELEMENTAL ROYALTY INCREASES CHAPI PROJECT ROYALTY THROUGH QUILLA INVESTMENT PACKAGE

Elemental Royalty Corp. has entered into a strategic $25-million (U.S.) investment package with Quilla Resources Inc. and its subsidiary Minera Pampa de Cobre SAC to expand Elemental's royalty exposure to the producing Chapi copper project in Peru and support Quilla's next phase of growth.

The transaction includes the acquisition of both equity in Quilla and an additional perpetual, uncapped 1.0-per-cent net smelter return royalty over the Pampa Negra and Candelaria concessions, which are expected to be important contributors to Quilla's planned expansion of Chapi.

Highlights:

• Existing producing royalty: Elemental has agreed to a strategic $25-million (U.S.) investment package with Quilla to expand its existing royalty exposure to the Chapi copper project and support Quilla's next phase of growth.
• Increases exposure to project: Elemental acquired an additional perpetual, uncapped 1.0-per-cent NSR royalty over Quilla's Pampa Negra and Candelaria concessions, increasing Elemental's royalty interest to a total of 3.0-per-cent NSR.
• Expansion plans under way: Pampa Negra and Candelaria will be important contributors to Quilla's future expansion of Chapi from 10,000 tonnes per annum to 30,000 tonnes per annum of copper cathode production.
• Experienced team with record of delivery: Quilla's management team has an established history in Peru, including as senior executives at Rio Alto, Milpo, Buenaventura and the Antamina mine.

Elemental chief executive officer David M. Cole commented: "This transaction moves Chapi into a top-10 royalty for Elemental by increasing our exposure to Quilla's phase 2 expansion at Pampa Negra and Candelaria following the recent successful commissioning of the Chapi mine. The management team's proven track record of operating in Peru sets them up for continued growth while Chapi is strategically located within the Southern copper belt alongside mines operated by Freeport-McMoRan, Buenaventura, Anglo American and Southern Copper. We are very pleased to enhance our royalty on the project and simultaneously become a Quilla shareholder as they move toward listing on a public exchange."

Existing Chapi royalty

In February, 2025, EMX Royalty Corp. acquired a 2.0-per-cent NSR royalty on minerals produced from the approximately 26,000-hectare property owned by Quilla, as well as a 2.0-per-cent NSR royalty from any minerals that are produced from outside of the property royalty area, but that are processed at the Chapi mine processing facilities. The agreement also includes a two-kilometre area of interest around the property royalty area, and any property acquired by MPC within this AOI will also be subject to a 2.0-per-cent NSR royalty, stepping down to a 1.0-per-cent NSR royalty in July, 2034.

Transaction details

Under the terms of the transaction, Elemental provided aggregate consideration of $25-million (U.S.) to Quilla through a combined royalty and equity investment package. The package was structured to expand Elemental's royalty exposure to the key growth areas at Chapi while also providing Quilla with capital in advance of listing as it advances the Chapi exploration program and expansion plans.

Elemental acquired an additional 1.0-per-cent NSR royalty over all minerals produced from the Pampa Negra and Candelaria concessions. The royalty is perpetual, uncapped and not subject to any buyback, step-down or advance payment provisions. This adds to Elemental's existing 2.0-per-cent NSR royalty footprint at Chapi and results in Elemental holding a 3.0-per-cent NSR royalty over Pampa Negra and a 3.0-per-cent NSR royalty over Candelaria, with the Candelaria royalty stepping down to 2.0-per-cent NSR in July, 2034.

As part of the same transaction package, Elemental subscribed for shares in the company, representing approximately 9 per cent of Quilla. The equity investment provides Elemental with additional alignment and upside as Quilla advances its planned expansion to 30,000 tonnes per annum of copper cathode and looks to go public.

Elemental financed the transaction from cash on hand. Proceeds from the transaction are to be used by Quilla to fast-track exploration as well as permitting and engineering work related to the planned expansion.

Background on Quilla

Quilla is a private Canadian company that, in December, 2024, acquired MPC and the associated Chapi licence areas. Quilla was founded by a select group of shareholders, including Victor Gobitz, looking to rapidly build an intermediate-sized base metal company. Mr. Gobitz is a senior mining executive with extensive recent leadership experience at two of Peru's most prominent mining companies. Prior to joining Quilla, he served as president and general manager of the world-class Antamina mine, following his tenure as president and chief executive officer of Compania de Minas Buenaventura.

The Chapi copper project

Chapi is a former producing copper project that restarted production in first quarter 2026 (see announcement dated March 2, 2026).

The Chapi mine is located in the prolific southern Peru porphyry copper belt across the Moquegua and Arequipa departments, which host large-scale operations, including Southern Copper's Toquepala, Anglo American's Quellaveco project and Freeport-McMoRans's majority-owned Cerro Verde mine. The asset sits at an elevation of approximately 2,750 metres and has ready access approximately 50 kilometres south-southeast from the city of Arequipa. The mine, which was in operation from 2006 to 2012, reached maximum production levels of 8,500 tonnes per annum.

The historic Chapi mine is composed of two principal open pits, underground workings, a crushing and agglomeration circuit, heap leach pads, a solvent extraction plant, an electrowinning copper cathode plant, and related infrastructure including mine camp, office facilities, water supply and power.

The restart and successful commissioning of the solvent extraction-electrowinning plant in 2026 were achieved on time and budget, reflecting management's strong record as operator, and work has begun on a phase 2 expansion as well as fast-tracking investment in exploration and continuing an investment to optimize operations.

Technical disclosure and qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Michael Sheehan, a qualified person and employee of the company as defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

About Elemental Royalty Corp.

Elemental 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 trades on Nasdaq and on the Toronto Stock Exchange under the ticker symbol ELE.

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