Mr. Brendan Yurik reports

ELECTRIC ROYALTIES PROVIDES UPDATE ON FIVE ROYALTIES IN PORTFOLIO

Electric Royalties Ltd. has provided the following update on its royalty portfolio.

Brendan Yurik, chief executive officer of Electric Royalties, commented: "Although production is curtailed at the Penouta mine, it's very exciting to see management of the Graphmada graphite project focus on finding a strategic partner to recommence mining operations at potentially higher production rates. We're also pleased to note the updated resource estimate for the Seymour Lake lithium project ahead of the highly anticipated preliminary economic assessment -- positioning the project to potentially be one of the first lithium mines in Ontario. Additionally, the proposed project financing support by U.K. Export Finance for up to $598-million (U.S.), covering 70 per cent of the expected project capital expenditures for the Mont Sorcier iron and vanadium project, is a great vote of confidence in the robust nature of the project.

"This release concludes approximately 60 updates across our 22-royalty portfolio this year. We thank our shareholders for their continued support and look forward to another year of growth."

Highlights since the company's previous update on Nov. 1, 2023

Seymour Lake lithium project (1.5-per-cent net smelter royalty) -- on Nov. 21, 2023, Green Technology Metals Ltd. announced an updated mineral resource estimate under the JORC (Joint Ore Reserve Committee) code for the Seymour Lake project in Ontario, Canada, ahead of its planned preliminary economic assessment. The updated estimate encompasses North Aubry and South Aubry -- two deposits situated within the Aubry complex at Seymour Lake. At North Aubry, Green Technology Metals reported a 17-per-cent increase in the indicated resource to 6.1 million tonnes (Mt) at an average grade of 1.25 per cent lithium oxide (Li2O) and also reported an inferred resource of 2.1 Mt at 0.8 per cent Li2O. The resource at South Aubry stands at 2.0 Mt at 0.6 per cent Li2O using a 0.2 per cent lithium oxide cut-off. Green Technology Metals used results from 47 drill holes over 15,210 metres of drilling to estimate the updated mineral resource.

Green Technology Metals anticipates further growth to the resource as drilling continues at both the North and South Aubry deposits, with a planned 58-hole program over 7,736 m.

Electric Royalties is relying on the information provided by Green Technology Metals and is unable to verify the mineral resource estimate.

Mont Sorcier iron and vanadium project (1-per-cent gross metal royalty) -- Cerrado Gold Inc.'s news release on July 5, 2023, announced its acceptance of an expression of interest from U.K. Export Finance (UKEF) to provide project financing support for the Mont Sorcier project near Chibougamau, Que. Further to this, Cerrado announced on Nov. 21, 2023, that it has appointed the Toronto-Dominion Bank (TD) as the mandated lead arranger (MLA) for the Mont Sorcier financing. TD was appointed due to its longstanding relationship with the UKEF and competitive terms for the project financing.

The UKEF-backed facility is expected to be for up to $598-million (U.S.) on a non-recourse project financing basis for a total tenor of 11 years. The financing is envisioned to cover 70 per cent of the expected project capital expenditures for the Mont Sorcier project.

While the conclusion of project financing remains subject to the completion of a bankable feasibility study, an environmental impact assessment and the granting of construction permits, among other requirements, the appointment of the MLA represents a significant milestone for Mont Sorcier's project financing. Cerrado continues to advance the feasibility study and the environmental impact assessment. The feasibility study is targeted for completion in H2 2024, after which the next phase of the financing process will commence, comprising a formal due diligence period before a final binding offer and documentation.

Chubb lithium project (2-per-cent gross metal royalty) -- on Oct. 30, 2023, Burley Minerals Ltd. announced it has drilled four holes as part of an expected 3,000-metre to 4,000 m drilling program at the Chubb North prospect at the Chubb project in Quebec, Canada.

Diamond drill core assay results from the Chubb Central prospect have extended the known strike length of spodumene mineralization, while confirming continuity and consistency of the mineralized zone. This mineralized zone remains open to the north and south, and at depth. New pegmatite intersections indicate potential for parallel repetitions, both west and east of the main dike, supporting further exploration drilling.

Electric Royalties is relying on the information provided by Burley and is unable to verify the reported geochemical and drill results.

Penouta tin-tantalum mine (1.5-per-cent gross revenue royalty) -- on Nov. 13, 2023, Strategic Minerals Europe Corp. provided an update on the provisional suspension of the Section C permit for the Penouta mine in Spain reported in its news release dated Oct. 20, 2023. On Oct. 23, 2023, Strategic submitted an appeal of the suspension to the Administrative Court of the High Court of Justice of Galicia. It also advised that, "Since filing the appeal, the local mining authority Xunta de Galicia has requested that the company refrain from continuing conducting mineral exploitation operations at the Penouta project until the appeal is decided."

Following the suspension, Strategic received the support of local workers through demonstrations totalling more than 1,000 people, as well as the support of the Workers' Commission, the largest trade union in Spain, along with unions representing the Penouta mine workers. Additionally, the regional government of Galicia, the mayors of Viana do Bolo, A Veiga and Vilarino de Conso, industry associations such as the Galician Aggregates Association, the professional associations of mining engineers and geologists, and the Mining Chamber, as well as councillors and deputies from political parties, have voiced their displeasure with the suspension.

On Nov. 15, 2023, Strategic reported its third quarter 2023 financial results. Highlights for the third quarter included 209 tonnes of primary concentrate at the Penouta mine, a 1-per-cent increase compared with Q3 2022. Strategic achieved record sales of 234 tonnes of concentrates and 158 tonnes of contained minerals, an increase of 23 per cent for both figures compared with the same period in 2022.

Graphmada graphite mine (2.5-per-cent net smelter royalty) -- on Oct. 26, 2023, Greenwing Resources Ltd. provided an update on the Graphmada mining complex in Madagascar. While under active care and maintenance since 2020, the plant and infrastructure have remained in good condition. Process plant maintenance has focused on key equipment, ball mills, motors and pumps. Flotation cells will require replacement upon restart.

Greenwing claims the increased mineral resource base (as reported in Electric Royalties' July 21, 2022, news release) could be capable of supporting potential higher production volumes, and plans to capitalize on the progress achieved to date by seeking a strategic partner to assist in the development of a large-scale operation. Greenwing also sees the proposed revised mining code in Madagascar as positive news aimed at increasing mining activity.

David Gaunt, PGeo, a qualified person who is not independent of Electric Royalties, has reviewed and approved the technical information in this release.

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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