Mr. Joseph de la Plante reports

EVOLVE ROYALTIES ANNOUNCES BINDING LETTER OF INTENT TO ACQUIRE A ROYALTY ON THE SUNNYSIDE PROJECT IN ARIZONA, USA

Evolve Royalties Ltd. has entered into a binding letter of intent with a private royalty holder setting out the key terms and conditions pursuant to which Evolve will acquire from the royalty holder a 0.5-per-cent net smelter returns royalty on production from claims comprising the Sunnyside project operated by Barksdale Resources Corp. in Arizona, United States, for a total consideration of $2.25-million, payable in a mix of cash and common shares of the company. The transaction is subject to customary closing conditions, including due diligence, execution of a definitive agreement and receipt of all required approvals, and is expected to close in the second quarter of 2026. (All amounts are in U.S. dollars unless otherwise noted.)

The Sunnyside royalty represents an opportunity for Evolve to acquire copper exploration optionality at modest cost in an established North American mining jurisdiction. The Sunnyside project is located in Santa Cruz county, Arizona, immediately adjacent to South32 Ltd.'s Hermosa project, where construction of the Taylor zinc-lead-silver deposit is under way. The Sunnyside royalty covers ground that hosts multiple sources of geological potential, including the Triple C target currently being drilled by the operator, Barksdale, as well as exploration potential extensions onto Sunnyside ground of mineralization from South32's neighbouring Taylor and Peake deposits, as described in Barksdale's public disclosure. Mineralization hosted on adjacent properties is not necessarily indicative of mineralization hosted on the Sunnyside project.

"The Sunnyside royalty fits squarely within Evolve's strategy of acquiring high-quality royalties on copper assets in Tier 1 jurisdictions. What makes Sunnyside particularly attractive is the multiplicity of geological targets on the royalty ground: from the near-surface high-grade copper mineralization the operator is currently drilling at the Triple C target to the potential for extensions of South32's neighbouring Taylor and Peake deposits onto Sunnyside. As Barksdale continues to drill and expand its understanding of these targets, Evolve will participate in that upside and exploration success through its royalty," said Joseph de la Plante, president and chief executive officer of Evolve.

Transaction details

Under the terms of the letter of intent, Evolve proposes to acquire the Sunnyside royalty for a total consideration of $2.25-million, to be paid in two instalments, the first of which will be $500,000 in cash and common shares having an aggregate value of $750,000 payable on closing and the second of which will be $500,000 in cash and common shares having an aggregate value of $500,000 payable in the first quarter of 2027. The number of common shares to be issued to the royalty holder will be established based on the U.S.-dollar equivalent of the volume-weighted average price of the common shares in Canadian dollars on the Canadian Securities Exchange for the five consecutive trading days immediately preceding the date on which the definitive agreement is entered into. The issuance of common shares pursuant to the transaction remains subject to approval of the CSE.

Sunnyside project highlights:

• Located in Santa Cruz county, Arizona, approximately 80 kilometres southeast of Tucson, in an established North American mining jurisdiction;
• Immediately adjacent to South32's 100-per-cent-owned Hermosa mine, comprising the Taylor zinc-lead-silver deposit (currently in construction), the Clark zinc-manganese-silver deposit and the Peake copper-lead-zinc-silver exploration target; according to public disclosure by Barksdale, drill results from Sunnyside indicate that Taylor mineralization potentially extends onto Sunnyside ground, and South32 has reported that the Peake deposit may form part of the broader Taylor system, providing additional sources of potential deeper, higher-grade copper mineralization on the royalty ground;
• Barksdale is currently advancing a phase II drill program at Sunnyside focused on the Triple C target, located within the broader Chalcocite zone; in its news release dated May 4, 2026, Barksdale reported assay results from the first four holes of its 2026 reverse circulation drill program, including two reported drill intercepts of 0.93 per cent copper over 60.96 metres and 0.90 per cent copper over 60.96 metres as well as a higher-grade interval of 2.75 per cent copper and 73.5 grams per tonne silver over 3.05 metres in hole SUN26-001R;
• According to the operator, copper isotope work has confirmed that the near-surface chalcocite mineralization intercepted in drilling at the Chalcocite zone is hypogene in origin, consistent with a primary porphyry copper system rather than a secondary supergene enrichment blanket.

Third party technical disclosure

The scientific and technical information relating to the Sunnyside project contained in this news release has been derived from publicly available disclosure of Barksdale Resources. The company has not independently verified such information.

Qualified person

The scientific and technical content of this news release has been reviewed and approved by Vincent Cardin-Tremblay, PGeo, chief operating officer of the company, who is a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Evolve Royalties Ltd.

Evolve Royalties is a royalty and streaming company focused on acquiring high-quality royalties in base and critical metals that support electrification and the global energy transition. The company's strategy is to build a diversified portfolio of long-life, cash-flowing royalties while maintaining exposure to long-term commodity upside. The company's common shares are listed and posted for trading on the CSE under the symbol EVR and on the OTCQX Best Market under the symbol EVRYF.

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