Mr. Brendan Yurik reports

ELECTRIC ROYALTIES COMPLETES DRAWDOWNS UNDER CONVERTIBLE CREDIT FACILITY

Further to the Oct. 19, 2023, news release, Electric Royalties Ltd. has completed a $500,000 drawdown under the $5-million convertible credit facility with Gleason & Sons LLC for working capital.

The company also announces that further to its Sept. 27, 2023, news release, it has completed the $1.05-million drawdown under the credit facility with the lender to finance the cash payment to acquire the additional 0.5-per-cent gross revenue royalty on the Bissett Creek project, as well as its associated transaction costs.

Loans drawn under the credit facility bear interest at a floating rate (U.S. secured overnight financing rate as published by the New York Federal Reserve plus 7 per cent), with a maximum interest rate of 12.5 per cent, with interest payments capitalized into the principal amount and due at the maturity date. At the discretion of the lender, loaned amounts plus accrued interest are convertible into common shares of Electric Royalties as follows: (a) for the principal amount of loans at the greater of 50 cents; a 100-per-cent premium above the 30-day volume-weighted average price of the company's shares on the TSX Venture Exchange at the advance; and the minimum price acceptable to the TSX-V per share; and (b) for interest at the market price (as defined under TSX-V Policy 1.1) at the time of settlement, subject to the market price not being less than the conversion price without prior TSX-V approval per share. Disinterested shareholder approval will be required for any conversion that results in the lender holding more than 20 per cent of the outstanding voting shares of the company.

The conversion price for the drawdown is 50 cents, and the conversion price for the previous drawdown is 50 cents, and as a result, a total of one million common shares and 2.1 million common shares of the company are issuable on conversion thereof, respectively.

The maturity date of the drawdown and the previous drawdown under the credit facility is Jan. 12, 2026. The drawdown and the previous drawdown are subject to final TSX-V approval.

The credit facility was considered to be a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions) at the time the credit facility was agreed to. The credit facility was exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b) as the company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101 in that the fair market value of the credit facility did not exceed 25 per cent of the company's market capitalization.

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large-scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and, with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.

Electric Royalties has a growing portfolio of 22 royalties. The company is focused predominantly on acquiring royalties in advanced-stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition through the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.

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