Mr. Tim Gallagher reports

ROYALTIES INC. RECEIVES BILBAO PROJECT ECONOMIC UPDATE

Royalties Inc. has received an economic update on the Bilbao project from SLR Consulting (Canada) Ltd. SLR prepared a new financial model using the 2014 PEA (preliminary economic assessment) model inputs brought forward to a December, 2025, cost basis and current metal prices, and also conducted a sensitivity analysis with silver at various prices. Key economic metrics for the silver price scenarios are presented in the attached table, together with the 2014 PEA economics for comparison.

Cautionary language:

• The economic sensitivity presented is based, in part, on inferred mineral resources, and is preliminary in nature. Inferred mineral resources are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that economic forecasts on which this PEA is based will be realized.
• SLR further cautions that the 2014 PEA production schedule has not been adjusted for changes to cut-off grade resulting from updated economic inputs.
• For the technical basis behind this economic sensitivity, see the 2014 National Instrument 43-101 report, entitled "Preliminary Economic Assessment of the Bilbao Silver-Lead-Zinc Project, 720,000 Tonnes per Year Processing Plant," dated April 28, 2014, filed on SEDAR+ under Royalties.

Conclusions:

• The sensitivity analysis indicates that the Bilbao project is very sensitive to silver prices.
• Given the current market environment for commodity prices, there is considerable upside potential SLR cautions that while the updated economic model includes increased capital and operating costs derived from escalation of the 2014 PEA costs, increases in prices for certain commodities (structural steel) have exceeded the escalation factors applied in the model update.
• SLR recommends that the project costs should be validated in a comprehensive PEA update, including assessing the impact of changed economic inputs on mineral resource estimates and the potentially minable quantities used in the PEA production schedule.

"As expected, the breakout in the silver price has significantly improved the potential economics of the core deposit in the Bilbao project, which can be further enhanced with a planned drill program to increase the resource. This update confirms and totally restates the value and the optionality of Bilbao in this new era of silver prices, which, after a period of short-term volatility, is expected to rise," stated Tim Gallagher, chief executive officer.

Qualified person

Scientific and technical information disclosed in this news release was prepared by or under the supervision of and approved by Gerry J. Gauthier, PEng, a qualified person within the meaning of National Instrument 43-101.

About SLR Consulting (Canada) Ltd.

SLR provides a broad range of social, environmental and engineering consulting services to the mining sector. SLR Consulting and its predecessor company, Roscoe Postle Associates Inc., have completed many assignments in Mexico.

About Royalties Inc.

Royalties owns a 100-per-cent interest, subject to a 1.5-per-cent NSR (net smelter return) royalty owned as a separate asset, on the Bilbao silver-zinc-lead project, which has a 2014 PEA. Royalties owns 88 per cent of Minera Portree de Zacatecas S.A. de C.V. (MPZ), which holds a Zacatecas Appeals Court confirmed claim to a 2-per-cent NSR established in 2002 on five mining concessions, called the Portree claims, a portion of which is on the Mala Noche footwall zone, the main source of production at the Cozamin mine, where Capstone Copper Corp. has been mining since 2010. Capstone attempted to assign this royalty to itself without the knowledge, consent or proper payment to MPZ, the long-standing and rightful owner since 2002. As a final step in the Mexico legal process, Capstone filed an amparo with the Federal Collegiate Tribunal, which the Federal Prosecutor has recommended denying.

Royalties has a 5-per-cent stake in Music Royalties Inc. (MRI), which has paid out over $15-million in 74 monthly dividends from 31 cash-flowing catalogs with 7,000 songs, generating a 7.2-per-cent annual yield.

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