Mr. Ernie Ortiz reports

LITHIUM ROYALTY CORP. CONGRATULATES POWER METALS ON OFFTAKE AGREEMENT WITH ALBEMARLE; POWER METALS REAFFIRMS 2026 PRODUCTION TARGET

Lithium Royalty Corp. has congratulated Power Metals Corp. on the cesium concentrate offtake agreement that it announced today with Albemarle Corp. Albemarle is a $16-billion (U.S.) company and one of the leading critical mineral companies in the world with a leading position in lithium and cesium. Lithium Royalty holds a 2.0-per-cent gross overriding royalty on Power Metals' Case Lake project.

Albemarle has acquired the offtake rights to the Case Lake project from Winsome Resources and has entered into a prepayment agreement with Power Metals for up to $5-million (Canadian) of cesium oxide concentrate from the project. Power Metals commented that it is advancing toward its production target for 2026 and highlighted the project's extremely low capital requirements of under $8-million (Canadian).

In June, 2025, Power Metals announced its maiden cesium mineral resource of 13,000 tonnes of inferred resource at 2.4 per cent cesium oxide at a 0.1-per-cent cut-off grade from the West Joe dike. Power Metals has noted the potential for additional tonnage growth at the Case Lake property, given that its mineral resource estimate covers only the West Joe dike. Power Metals highlighted an additional exploration target of 11,000 to 15,000 tonnes, including 17 untested targets, at the Case Lake property. The MRE is based on 7,264 metres of drilling from 113 drill holes conducted in 2018, 2022 and 2024, highlighting the efficacy of its prior drill campaigns.

"Power Metals continues to progress the Case Lake project that is on track to deliver the first incremental tonnes of cesium into the global market since quite some time. Cesium is a critical mineral with high-value applications, with cesium carbonate prices currently quoted by Shanghai Metals & Markets at nearly $219,000 (U.S.) per tonne. The strong partnership announced today and the low capital requirements for the Case Lake project are setting up Power Metals to become a near-term revenue contributor to our portfolio," said Ernie Ortiz, president and chief executive officer of Lithium Royalty.

Cesium is a high-value, critical mineral with only two known current producers globally -- the Tanco mine in Canada and the Bikita mine in Zimbabwe -- and one prior producer at the Sinclair mine in Western Australia. Annual global cesium production is very limited. The Tanco mine in Canada is the only known source that is still processing cesium ore according to U.S. Geological Survey, and most projects around the world that are prospective for cesium remain in early exploration stages. This fragile and concentrated supply chain underscores the strategic significance of new cesium discoveries. Cesium applications include advanced electronics, energy, aerospace and defence systems. Due to its scarcity and growing demand, cesium pricing has surged recently, with cesium carbonate prices trading at approximately $219,000 (U.S.) per tonne according to Shanghai Metals Market.

Cesium market overview

Cesium is the heaviest stable alkali metal and deemed a critical mineral by Canada and several other countries. Similar to lithium, it has a unique set of characteristics due to its position on the periodic table. Cesium has excellent photoelectric properties and strong chemical activity, and is a high-quality material for infrared technology applications. Its low ionization energy allows it to easily donate an electron, efficient for ion propulsion and photoelectric devices. High atomic mass and resonance frequency stability make it ideal for atomic clocks, making it an international standard. Its low melting point of 28.5 C is useful for heat transfer, high reactivity for energy transfer and non-corrosive, safe drilling fluid.

Cesium primarily will come from pollucite ore in the form of cesium oxide. It is then refined down into several other forms for specific applications. The main forms of cesium are cesium formate and cesium fines -- including cesium carbonate, cesium chloride and cesium nitrate. Historically, the largest demand has been for cesium formate, a drilling fluid used in high-pressure and high-temperature oil and gas exploration. The product is typically rented by oil and gas exploration clients. After completion of the well, the used brine is returned and reprocessed for subsequent drilling operations. It is estimated that 10,000 tonnes of cesium formate are in use globally, with approximately 5 per cent getting depleted and replaced annually, contributing approximately 500 tonnes of cesium demand annually.

Cesium fines are a small but specialized market, with developing applications in energy, communication, medical and defence. Applications include:

• Defence: night vision imaging and specialty glass;
• Communication: 5G, fibre optic communication and ion cloud communication;
• Emerging energy: novel energy generation including magnetofluidic and thermoionic conversion;
• Medical: medical imaging equipment and pharmaceutical production;
• Aerospace: GPS satellite constellations and civilian and military navigation.

The market for cesium fines was estimated by USGS to be approximately 2,000 tonnes in 2024, with an additional 500 tonnes of demand from cesium formate replacement. According to USGS, no primary production of cesium exists, except small quantities in China. Existing stockpiles at former mine sites feed downstream refineries, though recent reports have indicated that stockpiles may be depleted within a few years.

Qualified person

The technical and scientific information contained in this news release was reviewed and approved in accordance with National Instrument 43-101 by Don Hains, PGeo, of the Hains Engineering Company Ltd., a qualified person as defined in NI 43-101.

About Lithium Royalty Corp.

Lithium Royalty is a lithium-focused royalty company organized in Canada, which has established a globally diversified portfolio of 37 royalties on mineral properties that are related to the electrification and decarbonization of the global economy. The company's royalty portfolio is focused on the battery supply chain for the transportation and energy storage industries, and is underpinned by mineral properties that produce or are expected to produce lithium, critical minerals and other energy transition materials.

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