Mr. Ernie Ortiz reports

LITHIUM ROYALTY CORP. ENTERS INTO AGREEMENT TO ACQUIRE CASH FLOWING GOULAMINA ROYALTY OPERATED BY GANFENG LITHIUM

Lithium Royalty Corp. has entered into a definitive agreement to acquire a 1.5-per-cent trailing product sales fee (TPSF) royalty on the Goulamina lithium project in Mali from Leo Lithium Ltd. The Goulamina project is operated by Ganfeng Lithium Co. Ltd., one of the world's largest integrated lithium producers with a market capitalization of approximately $17.6-billion (U.S.). The TPSF royalty rate is calculated as 1.5 per cent of gross revenue from the sale of lithium products from Goulamina, with payments made quarterly over the 20-year term, commencing from the unloading of the first commercial shipment which occurred in August, 2025. The royalty is subject to a volume limit of 500,000 tonnes of spodumene concentrate per annum and is denominated in United States dollars. The royalty agreement is effective through August, 2045, and royalty payments commenced as of Q3 2025, with the first payment of $574,748 (U.S.) received by Leo Lithium. The royalty is paid out of a Singapore entity owned by Ganfeng.

This acquisition represents a strategic opportunity to establish immediate, revenue-generating exposure to a world-class producing lithium asset. The Goulamina project has commenced operations, with Ganfeng's initial shipments generating cash returns to the TPSF royalty holders, thereby derisking the investment profile compared with development-stage assets.

This acquisition represents the second royalty held by Lithium Royalty that is operated by Ganfeng Lithium, as it complements the royalty on Ganfeng's Mariana lithium project that is currently also in production.

"This acquisition is aligned with LRC's focus on acquiring attractive royalties on cash-flow-producing assets," said Ernie Ortiz, president and chief executive officer of Lithium Royalty. "The Goulamina royalty provides immediate production-backed cash flow, validated by the TPSF royalty payment received by Leo Lithium in November, 2025. Combined with Ganfeng's world-class operational expertise and the scale of the Goulamina asset, we believe this royalty will generate material returns for LRC shareholders. At current spot prices of approximately $1,300 (U.S.)/t, the royalty would generate $8.9-million (U.S.) in royalty cash flow, assuming the royalty cap of 500,000 tpa is reached with 5.5-per-cent concentrate grade. The robust economics and expected quick payback period of the royalty investment offer an attractive risk reward as LRC enters a new jurisdiction for its portfolio."

Transaction overview

Lithium Royalty will acquire this royalty for a total purchase price of $40-million (Australian), payable in two tranches to be financed through a combination of internal cash and a bridge loan provided by Altius Minerals Corp. The first payment of $20-million (Australian) is expected to be made in late 2025 or early 2026, and the second payment of $20-million (Australian) is due no later than early February, 2026. This phased payment structure provides flexibility and allows Lithium Royalty to continue pursuing other opportunities in its active pipeline of lithium and critical mineral royalties.

Goulamina project overview

The Goulamina lithium project in Mali is one of the world's largest spodumene hard-rock lithium deposits and represents the fourth-largest spodumene resource globally. The project hosts a mineral resource of 108 million tonnes (Mt) at 1.44 per cent Li2O measured and indicated, with an additional 159.2 Mt at 1.33 per cent Li2O in the inferred category, with no reporting cut-off grade applied, demonstrating the substantial resource base underpinning long-term production. According to the Leo Lithium definitive feasibility study (DFS), Stage 1 production capacity is approximately 506,000 tonnes per annum (tpa) of spodumene concentrate at 6 per cent (SC6), representing a fully developed, operational production facility. Ganfeng has guided for production increases to over one million tpa in a planned phase 2 expansion, positioning Goulamina as one of the world's largest lithium producers globally. The project is owned 65 per cent by Ganfeng and 35 per cent by the government of Mali, although the royalty is payable on 100 per cent of production at the Goulamina project.

Mali

Africa has become an increasingly important source of supply in the lithium market, growing from 2 per cent of global supply in 2022 to 19 per cent of supply in 2025, per Benchmark Minerals Intelligence (BMI). Goulamina is a cornerstone asset on the continent, projected to account for 24 per cent of African lithium supply in 2028, per BMI. This TPSF royalty allows Lithium Royalty to participate in the growth of supply in Africa through a marquee asset in the region.

Mining is a long-standing industry in Mali, accounting for over 75 per cent of total export revenue, per the International Trade Administration. Mali has positioned itself as an increasingly significant lithium jurisdiction in West Africa, supported by an established regulatory framework and world-class mineral potential. The country implemented the 2023 Mali Mining Code, which provides a comprehensive framework for resource development that includes provisions for state participation, revenue stability and clarity on long-term operational rights. Goulamina is aligned with the mining code, and the government has already exercised their right to a 35-per-cent equity stake in the project, fostering government alignment.

Leo Lithium and Ganfeng Lithium overview

Leo Lithium was the former operator of the Goulamina project, having been demerged from Firefinch Ltd. and listed on the Australian Securities Exchange in June, 2022, to serve as the dedicated operator for the lithium asset. Through a strategic exit from the Goulamina project in May, 2024, Leo Lithium sold its remaining 40-per-cent stake to Ganfeng in exchange for cash consideration and exchanged its marketing and other rights under a co-operation agreement for a 1.5-per-cent TPSF royalty on future production (now to be acquired by Lithium Royalty). Following its exit, Leo Lithium has transitioned its strategy toward monetizing its TPSF royalty and returning capital to shareholders.

Ganfeng Lithium is one of the world's largest integrated lithium producers, with vertically integrated operations spanning exploration, mining, processing and battery materials manufacturing. Ganfeng's involvement in Goulamina represents a strategic consolidation of its hard-rock lithium portfolio and reflects the company's commitment to securing long-term, large-scale lithium supply to serve the global battery and energy storage markets. Ganfeng also operates the wholly owned Mariana lithium brine located in Argentina, on which Lithium Royalty also holds a royalty interest, creating valuable portfolio synergies and providing Lithium Royalty with complementary exposure to Ganfeng's premier lithium operations. This dual investment in Ganfeng-operated assets strengthens Lithium Royalty's position in the company's long-term strategy and provides diversified geographical exposure.

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, 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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