Dr. Tim Coughlin reports

ROYAL ROAD MINERALS ENTERS INTO OPTION AND ROYALTY AND CASH AND ROYALTY PAYING FORMALIZATION AGREEMENTS WITH TWO PRODUCING GOLD MINES; COLOMBIA

Royal Road Minerals Ltd.'s 100-per-cent-owned Colombian subsidiary, Exploraciones Northern Colombia SAS (ENC), has entered into two formalization-based agreements with producing gold mines in the Antioquia and Caldas departments of Colombia.

The Aleman option and royalty agreement

ENC has executed an option and royalty agreement with respect to the El Aleman gold mining concession contract owned by individual titleholders and located in Colombia's Antoquia department. The Aleman agreement replaces a binding heads of agreement which was entered into between the company and the titleholders in December of 2021 (see press release Dec. 14, 2021).

The property underlying the Aleman concession contract is located immediately adjacent to the company's Guintar copper and gold porphyry project where the company has intersected significant porphyry-style mineralization, including GUI-DD-012, which returned 303.7 metres at 0.8 per cent copper equivalent (including 62 metres at 2.1 grams per tonne gold, 12.4 grams per tonne silver and 0.62 per cent copper), GUI-DD-013, which returned 126 metres at 0.9 per cent copper equivalent (1.2 grams per tonne gold equivalent), GUI-DD-020, which returned 118 metres at 0.8 per cent copper equivalent, and GUI-DD-021, which returned 181 metres at 0.9 per cent copper equivalent (1.1 grams per tonne gold equivalent; see press releases Dec. 14, 2021, April 28, 2022, and June 28, 2022). In 2022, the company conducted exploratory drilling on the Aleman concession contract area and intersected encouraging results, including ALM-DD-001, which returned 80.5 metres at one gram per tonne gold, including 18 metres at three grams per tonne gold (see press release June 28, 2022).

Under the terms of the option and royalty agreement, the company can acquire 100 per cent of the Aleman concession contract. Summary terms are as follows:

• Royalty commitment: The titleholders shall pay a 3-per-cent net smelter return royalty to ENC which is payable quarterly for a period of 20 years (the current term of the company's Guintar concession contract) or until the company exercises its option to acquire an 80-per-cent interest in the concession contract.
• Option agreement: At any point, Royal Road may exercise its option to acquire an 80-per-cent interest in the concession contract by making a one-time payment to the titleholders of $2.25-million (U.S.).
• Free carry: Following such payment, the 20-per-cent interest retained by the titleholders shall be free carried until a successful feasibility study is delivered in connection with or incorporating the Aleman concession contract, at which point this interest will be converted to a 2-per-cent net smelter return royalty. The net smelter return royalty may be purchased by Royal Road for a sum of $20-million (U.S.).
• Further terms: Traditional representations and warranties by the titleholders, including compliance with all regulatory requirements at all times, payment of all taxes, duties and other government payments, maintenance of minimum investments required by law, and performance of all acts and all obligations under applicable law required to maintain the Aleman concession contract in good standing.

The El Tambo purchase and sale agreement

ENC has entered into an agreement to sell 100 per cent of its El Tambo mining concession contract (GDI-138) located in Cauca department to Esplendor CH SAS, a Colombian gold mining company, in exchange for a 2-per-cent net smelter return royalty (NSR) payable over a five-year term, and a cash consideration.

The El Tambo mining concession contract is located in Cauca department and is approximately 4,000 hectares in area. The concession contract was acquired through the company's purchase of Northern Colombia Holdings Ltd., an affiliate of AngloGold Ashanti Ltd. (AGA; see press release May 31, 2019). The area underlying the El Tambo mining concession contract contains gold mineralized quartz veins, some of which continue along strike and extend on to Esplendor's contiguous underground mining operation. Esplendor's mining operation is Fairmined certified. This agreement is expected to significantly boost production from extensions to Esplendor's vein bodies which continue directly from active underground workings onto the El Tambo concession contract area.

Summary deal terms are as follows:

• Cash consideration: Esplendor will make five cash payments totalling 700 million Colombian pesos (approximately $177,000 (U.S.)) to ENC in exchange for the transfer of the El Tambo mining concession contract with payments linked to progress throughout the regulatory stages of title transfer.
• Royalty commitment: Esplendor shall pay a 2-per-cent NSR to ENC on a quarterly basis and for a period of five years from the commencement of commercial production from within the El Tambo concession contract area.
• Further terms: Esplendor shall be bound to the terms of the share purchase agreement entered into between the company and AGA.

"These agreements reflect our ongoing commitment to the formalization of informal mining operations in Colombia and illustrate our intention of assuring our Colombian interests are responsibly self-sustaining," said Dr. Tim Coughlin, Royal Road's president and chief executive officer.

About Royal Road Minerals Ltd.

Royal Road Minerals is a mineral exploration and development company with its head office and technical-operations centre located in Jersey, Channel Islands. The company is listed on the TSX Venture Exchange under the ticker RYR and on the Frankfurt Stock Exchange under the ticker RLU. The company's mission is to apply expert skills and innovative technologies to the process of discovering and developing copper and gold deposits of a scale large enough to benefit future generations and modern enough to ensure minimum impact on the environment and no net loss of biodiversity. The company currently explores in the Kingdom of Saudi Arabia, Argentina, Morocco and Colombia.

The information in this news release was compiled, reviewed and verified by Dr. Coughlin, BSc (geology), MSc (exploration and mining), PhD (structural geology), FAusIMM, president and CEO of Royal Road Minerals, and a qualified person as defined by National Instrument 43-101. Royal Road Minerals employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards.

Quality assurance and quality control

Sample preparation and analyses are conducted according to standard industry procedures. Drill core and saw-cut channel samples are crushed, split and pulverized prior to analysis of gold by fire assay and atomic absorption and multielements by inductively coupled plasma atomic emission spectroscopy and inductively coupled plasma mass spectrometry after four-acid digestion. Soil samples are sieved to minus 200 mesh and analyzed for gold by fire assay and ICP AES and multielements by ICP-AES and ICP-MS after aqua regia digestion. Analytical performance is monitored by means of certified reference materials (CRMs), coarse blanks, and coarse and pulp duplicate samples. Surface samples have been prepared in ALS Chemex preparation lab in Colombia and analyses have been completed in ALS Chemex Lima.

We seek Safe Harbor.