Mr. Brendan Yurik reports

ELECTRIC ROYALTIES SECURES NEW, HIGHLY FAVOURABLE TERMS ON LITHIUM ROYALTY AND OPTION PORTFOLIO, SIGNS AMENDED AND RESTATED LETTER OF INTENT

Further to Electric Royalties Ltd.'s Nov. 6, 2023, news release, the company has entered into an amended and restated letter of intent with 1544230 Ontario Inc., MK Exploration Services Inc. and Gravel Ridge Resources Ltd. (together, the vendors), dated March 5, 2024, to acquire a portfolio of 22 royalty agreements and 36 prospective lithium properties in Ontario, Canada.

Brendan Yurik, chief executive officer of Electric Royalties, commented: "We are pleased to be able to work with the vendors and agree on new, highly favourable acquisition terms given current lithium market conditions. We have successfully reduced the overall cash acquisition cost by approximately $2.5-million to $1,975,000 to acquire 22 existing royalties, plus 36 lithium properties which have been optioned out to third parties. We anticipate that scheduled option payments from the properties will generate meaningful revenues to the company over the next several years until partners have earned in to each respective project, at which point each will convert to a new royalty in our portfolio.

"Lithium is still a very new market and while it may be seemingly oversupplied in the short term, new sources will need to be developed to meet long-term demand from the growing number of electric vehicle and battery plants across the U.S., as well as the renewable energy and the emerging energy storage markets. This revised transaction comes at an opportune time to significantly expand exposure to lithium in Ontario at a relatively low cost. A top-tier mining jurisdiction, Ontario has the potential to be a major supplier of lithium: the permitting environment is favourable especially for battery metal projects, and mineralization is commonly close to surface -- increasing the odds of new discoveries progressing along the development curve.

"Upon closing of this transaction, Electric Royalties will have a significant portfolio of 44 royalties with a clear path to growth towards 80 royalties without further acquisition costs. The company is becoming increasingly well positioned as the clean energy revolution globally continues to gather pace."

Amended transaction terms

The company will issue to the vendors an aggregate of 2.25 million common shares in the capital of the company, make a cash payment (the sum of $1,975,000 less the (i) $75,000 non-refundable exclusivity fee already paid; (ii) the amount of certain payments received by the vendors under certain earn-in, option, royalty or similar agreements on or after Jan. 1, 2024; and (iii) 50 per cent of any proceeds received by the vendors for the sale of certain purchased interests) on closing of the transaction.

The exclusivity period has been extended from March 28, 2024, to April 5, 2024, in order to perform further due diligence on the portfolio of lithium properties.

Completion of the proposed transaction remains subject to a number of conditions, including: the satisfactory completion of due diligence; board approval; the receipt of any required regulatory approvals; and the negotiation of definitive documentation.

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 on 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 via the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.

We seek Safe Harbor.