Mr. Randy Smallwood reports

WHEATON PRECIOUS METALS ANNOUNCES THE ACQUISITION OF EXISTING STREAMS FROM ORION MINE FINANCE INCLUDING THE PLATREEF AND KUDZ ZE KAYAH PROJECTS, AND ENTERS INTO A NEW STREAM ON THE CURRAGHINALT PROJECT

Wheaton Precious Metals Corp. and its wholly owned subsidiary, Wheaton Precious Metals International Ltd., have entered into a definitive agreement with certain entities advised by Orion Resource Partners to acquire existing streams in respect of Ivanhoe Mines' Platreef project and BMC Minerals' Kudz Ze Kayah project. In addition, Wheaton International has entered into a new precious metals purchase agreement for a gold stream in respect of Dalradian Gold's Curraghinalt project (the Curraghinalt stream).

"The acquisition of these diverse, high-quality streams fits seamlessly into our portfolio of high-margin, low-cost assets, with near-term production from Platreef significantly adding to our already robust growth profile," said Randy Smallwood, Wheaton's president and chief executive officer. "This project has been significantly derisked given the advancement of construction and development and is forecast to deliver significant precious metals production to Wheaton, commencing next year. We are also very impressed with Ivanhoe's progress in working with the community and other stakeholders as it rapidly advances the project towards production."

Closing of the acquisition of the Platreef, Kudz Ze Kayah and Curraghinalt streams is subject to typical terms and conditions and anticipated to occur within the fourth quarter of 2023 or early first quarter of 2024.

Transaction details

(All values are in United States dollars unless otherwise noted.)

• Consideration: Wheaton and Wheaton International will pay up to a total upfront cash consideration of $530-million as follows:
  • $450-million will be paid to Orion on the closing of the acquisition of the Platreef streams and Kudz Ze Kayah streams, with an additional $5-million contingency payment in respect of the Kudz Ze Kayah stream;
  • $20-million will be paid to an affiliate of Dalradian Gold on an early deposit basis relative to the Curraghinalt stream, with an additional $55-million being paid during construction of the Curraghinalt project, subject to various customary conditions being satisfied.

Platreef project (majority owned by Ivanhoe Mines, the Platreef streams)

• Location: Located approximately 280 kilometres (km) northeast of Johannesburg, in the Limpopo province of South Africa.
• Streamed metals:
  • Under the Platreef project gold stream agreement, Wheaton International will be entitled to purchase 62.5 per cent of the payable gold until a total of 218,750 ounces (oz) of gold has been delivered to Wheaton International under the gold stream, at which point Wheaton International will be entitled to purchase 50 per cent of the payable gold production until a total of 428,300 oz of gold has been delivered to Wheaton International under the gold stream, at which point Wheaton International will be entitled to purchase 3.125 per cent of the payable gold production if certain conditions are met.
  • In addition, under the Platreef project palladium and platinum streams agreement, Wheaton International will purchase 5.25 per cent of the payable palladium and platinum until a total of 350,000 oz of combined palladium and platinum have been received, at which point the stream will be reduced to 3.0 per cent of the payable palladium and platinum production until 485,115 oz have been delivered, at which point the stream will be reduced to 0.1 per cent of the payable palladium and platinum production if certain conditions are met.
• Production profile: Attributable production is forecast to average over 13,000 oz of gold and 8,500 oz of each of palladium and platinum per year for the first 10 years of production, increasing to over 24,000 oz of gold and 13,500 oz of each palladium and platinum per year for the following 10 years of production.
• Production payments:
  • Under the Platreef project gold stream agreement, Wheaton International will make continuing payments for the gold ounces delivered equal to $100/oz until a total of 428,300 oz of gold have been delivered under the gold stream, increasing to 80 per cent of the spot price of gold thereafter.
  • Under the Platreef project palladium and platinum streams agreement, Wheaton International will make continuing payments for the palladium and platinum ounces delivered equal to 30 per cent of the respective spot prices until 485,115 combined ounces have been received, increasing to 80 per cent of the spot price of palladium and platinum thereafter.
• Incremental reserves and resources:
  • The addition of the Platreef gold stream will increase Wheaton's total estimated proven and probable gold reserves by 0.67-million ounces (Moz), measured and indicated gold resources by 0.07 Moz, and inferred gold resources by 0.13 Moz.
  • The addition of the Platreef palladium stream will increase Wheaton's total estimated proven and probable palladium reserves by 0.35 Moz, measured and indicated palladium resources by 0.01 Moz, and inferred palladium resources by 0.02 Moz.
  • The addition of the Platreef platinum stream will increase Wheaton's total estimated proven and probable platinum reserves by 0.34 Moz, measured and indicated platinum resources by 0.01 Moz, and inferred platinum resources by 0.02 Moz.
• Other considerations:
  • The Platreef project is fully permitted and currently under construction, with commercial production expected in Q4 2024.
  • Sustainability considerations:
    • Ivanhoe signed an offtake agreement with the Mogalakwena Local Municipality (MLM) to provide local, treated water to supply the bulk water needed for Platreef's construction and operations. Recycling locally treated water is a cost-effective and sustainable approach to securing water for the mine's production.
    • In conformance with South Africa's mining laws, the ownership structure at the Platreef project includes a 26-per-cent interest transferred to a B-BBEE special purpose vehicle, comprising 3 per cent local non-managerial employees, 3 per cent local entrepreneurs and 20 per cent in a trust established for the benefit of the 20 communities that surround the Platreef project area (The Bonega Communities Trust).
    • The site has secured options to use electricity generated from renewable energy and liquefied natural gas, providing a reliable source of energy with fewer carbon dioxide emissions than South Africa's coal-fired national electrical grid.
  • The Platreef streams provide certain corporate guarantees and security over assets of the Platreef project until certain conditions are met.

Kudz Ze Kayah project (owned by BMC Minerals, the Kudz Ze Kayah streams)

• Location: Located in the northern Pelly Mountains, 115 km southeast of the Ross River in south-central Yukon, Canada.
• Streamed metals: Under the Kudz Ze Kayah streams and dependent on the timing of deliveries, the company will be entitled to purchase: staged percentages of payable gold and payable silver ranging from 6.875 per cent to 7.375 per cent until 330,000 oz of gold and 43.3 million oz of silver are produced and delivered, reducing to a range of 5.625 per cent to 6.125 per cent until a further 59,800 oz of gold and 7,958,000 oz of silver are produced and delivered, further reducing to a range of 5.000 per cent to 5.500 per cent until a further 270,200 oz of gold and 35,342,000 oz of silver are produced and delivered (for a total of 660,000 oz of gold and 86,600,000 oz of silver), and thereafter ranging between 6.25 per cent and 6.75 per cent.
• Production profile: Life of mine annual attributable production is forecast to average approximately 1,700 oz of gold and 230,000 oz of silver.
• Production payments: Wheaton will make continuing payments for the gold and silver ounces delivered equal to 20 per cent of the spot gold and silver price.

Incremental reserves and resources:

• The addition of the Kudz Ze Kayah gold stream will increase Wheaton's total estimated proven and probable gold reserves by 0.05 Moz, measured and indicated gold resources by 0.01 Moz, and inferred gold resources by 0.002 Moz.
• The addition of the Kudz Ze Kayah silver stream will increase Wheaton's total estimated proven and probable silver reserves by 5.0 Moz, measured and indicated silver resources by 1.4 Moz, and inferred silver resources by 0.2 Moz.
• Permitting status:
  • The project received approval from the Yukon Environment and Socio-economic Assessment Board (YESAB) in June, 2022. Two provincial permits are outstanding being the water mining licence and the quartz mining licence.
  • Wheaton has agreed to pay to Orion an additional $5-million contingency payment if certain conditions are achieved.
  • There is an continuing lawsuit between the Kaska Nation and the governments of Yukon and Canada over the government's decision to approve the environmental and socio-economic assessment, with the Kaska Nation arguing the governments did not reasonably consult with first nations. The Yukon Supreme Court heard the case in April, 2023, and a judgment is expected by the end of 2023.
• Other considerations:
  • Under the existing Kudz Ze Kayah stream, BMC Minerals has a buyback option to repurchase 50 per cent of the gold and silver streams for a period of 30 days after June 22, 2026, for $36-million.
  • The Kudz Ze Kayah streams provide certain corporate guarantees and security over assets of the Kudz Ze Kayah project until certain conditions are met.

Curraghinalt project (owned by Dalradian Gold Lid., the Curraghinalt stream)

• Location: Located approximately 115 km west of Belfast, in Northern Ireland, United Kingdom.
• Streamed metal: Under the Curraghinalt stream, Wheaton International will purchase 3.05 per cent of the payable gold until 125,000 oz of gold has been delivered, at which point the stream will be reduced to 1.5 per cent of the payable gold production for life of mine.
• Production profile: Attributable production is forecast to average approximately 4,400 oz of gold per year for the first 10 years of production, averaging approximately 3,200 oz of gold per year life of mine.
• Production payments: Wheaton International will make continuing payments for the gold ounces delivered equal to 18 per cent of the spot price of gold until the uncredited deposit is reduced to nil and 22 per cent of the spot price of gold thereafter.
• Incremental reserves and resources: The addition of the Curraghinalt stream will increase Wheaton's total estimated proven and probable gold reserves by 0.08 Moz and inferred gold resources by 0.07 Moz.
• Other considerations:
  • The Curraghinalt project is in the final stages of the permitting process, with the forecasted two-year construction period anticipated to commence in 2025.
  • In the event of a change of control, Dalradian may purchase one-third of the Curraghinalt stream from Wheaton until the earlier of Jan. 1, 2027, or first production.
  • Dalradian and certain of its subsidiaries will provide Wheaton International with corporate guarantees and certain other security over their assets.
  • Once the complete financing package has been finalized, the stream percentages will be subject to increases in the event that the existing stream held by Wheaton International is subordinated to debt.
  • Sustainability considerations:
    • Dalradian has submitted a planning application detailing its approach to environmental protection and providing benefits to the local community.
    • The Curraghinalt mine design features a reverse osmosis water treatment plant, a dry stack tailings facility and a commitment to carbon neutrality (supported by a supply of 100 per cent renewable electricity). Dalradian expects to hire 90 per cent of its staff from the local area. This will be supported with an investment of 15 million pounds sterling toward a training program over the initial three years to assist local people to qualify for positions at the mine.

Financing the transactions

As at Sept. 30, 2023, the company had approximately $834-million of cash on hand, which when combined with the liquidity provided by the available credit under the $2-billion revolving term loan and the strength of the company's continuing operating cash flows, positions the company well to finance the acquisition of the Platreef, Kudz Ze Kayah and Curraghinalt streams, as well as all outstanding commitments and known contingencies, and provides flexibility to acquire additional accretive mineral stream interests.

About Wheaton Precious Metals Corp.

Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.

About Orion Resource Partners

Orion is an $8.2-billion (as of June 30, 2023) global asset management firm that specializes in institutional investment strategies in precious and base metals and minerals, many of which are currently leveraged to stimulus and infrastructure spend and the push to decarbonize. Headquartered in New York and with offices in Denver, London and Sydney, Orion includes a team of 80 professionals with backgrounds in metals finance, physical metals logistics and sales, and in-house technical professionals responsible for risk assessment and portfolio management.

Neil Burns, PGeo, vice-president, technical services, for Wheaton Precious Metals and Ryan Ulansky, PEng, vice-president, engineering, are qualified persons as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).

We seek Safe Harbor.