Mr. Brian Dalton reports

ALTIUS REPORTS Q1 2024 ATTRIBUTABLE ROYALTY REVENUE OF $17.4M AND ADJUSTED EARNINGS(1) OF $3.5M

Altius Minerals Corp. had first quarter 2024 revenue of $13.9-million compared with $22.7-million in Q1 2023. Attributable royalty revenue of $17.4-million (37 cents per share) compares with $16.0-million in the prior quarter and with $21.4-million (45 cents per share) reported in Q1 2023. All references are in thousands of dollars, except per-share amounts, unless otherwise indicated.

Brian Dalton, chief executive officer, commented: "The decline in revenue on a year-over-year basis primarily reflects the closure of the Genesee mine at the end of 2023 and the moderation of realized potash prices following a prior period of very strong prices. We are pleased to see that renewable energy revenue, originally designed to replace coal royalty revenue when the renewable segment was founded, has grown 148 per cent year over year. We are also excited to note positive progress relating to our Kami and Silicon royalties during the quarter, each of which holds the potential to add meaningfully to the value of our portfolio.

"Our potash operators have both reported a return to higher volumes in 2024 while prices have been stable since [second quarter] 2023. We continue to believe that prices remain below what is required to incentivize growth investment and to offset projected medium- and longer-term market supply deficits as demand growth continues to compound.

"The most significant highlights for our royalty portfolio came from our project generation business with the release of the Kami project study and the announcement of increased resources and expected production levels at the Silicon royalty project. These two development-stage royalties each hold the potential to meaningfully drive our growth profile for decades to come."

Quarterly highlights:

• Subsequent to the quarter on April 25, 2024, Adventus Mining Corp., owner of El Domo Curipamba project, announced an all-share transaction whereby Silvercorp Metals Inc. will acquire the common shares of Adventus under a plan of arrangement. Silvercorp, a diversified mining company producing silver, gold, lead and zinc and with a long history of profitability and growth, notes the Curipamba development project as the key rationale for completing the acquisition while also indicating that it has sufficient cash and liquidity to complete construction of El Domo Curipamba project. Altius Minerals holds a 2-per-cent net smelter return royalty on the project. Altius Minerals has agreed to not exercise its additional royalty conversion option and to instead receive cash consideration of approximately $9.6-million for settlement of its $4-million (U.S.) loan outstanding while retaining its original 2-per-cent NSR royalty. The cash consideration received reflects the implied equity value of the transaction as if the corporation converted its outstanding loan receivable to common shares of Adventus.
• AngloGold Ashanti PLC continues to advance the discovery of a potential major new gold district centred around its Silicon project near Beatty, Nev. AGA recently provided an update for the expanded Silicon project, which includes both the Silicon and Merlin gold deposits, that was highlighted by the announcement of an initial inferred mineral resource of 9.05 million ounces at the Merlin deposit (283.9 million tonnes at 0.99 gram per tonne). This is in addition to the more-than-four-million-ounce mineral resource estimate (121.56 Mt at 0.87 g/t indicated mineral resource for 3.4 million ounces and 36.03 Mt at 0.70 g/t inferred mineral resource for 810,000 oz) previously published for the Silicon deposit. AGA recently published a technical report summary, effective Dec. 31, 2023, as part of its annual report (Form 20-F) that provides an initial assessment of the Merlin resource and conceptual mining scenario, which suggests a 14-year life of mine with substantial gold production in the early years. A prefeasibility study for the expanded Silicon project is currently in progress. The basis of the PFS targets upper oxide ore only while AGA recently stated there is "significant upside potential from deeper ore horizons and nearby exploration targets" and infill and extension drilling programs continue. Altius Minerals holds a 1.5-per-cent NSR royalty related to the project.
• At the end of January, 2024, Champion Iron Ltd. announced the results of an updated project study for the Kami project. The Kami project study evaluated the potential for Kami's high-purity iron ore concentrates to supply the growing electric arc furnace steelmaking segment. Its illustration of the economic potential of the project included various pricing scenarios including the trailing three-year average price for 65-per-cent-iron-content ore plus an estimated premium for Kami's indicated higher quality above this benchmark. Altius Minerals originated the Kami project within its project generation business and retains a 3-per-cent gross sales royalty interest.
• Lundin Mining Corp. continued to delineate its Sauva copper-gold deposit discovery, located 15 kilometres north of the Chapada mine on lands encompassed by its copper stream interest. Lundin recently reported an open-pit indicated mineral resource of 244.6 Mt at 0.29 per cent copper and 0.17 g/t gold (721,000 tonnes or 1.59 billion pounds of copper) and an underground inferred mineral resource of 53.3 Mt at 0.41 per cent copper and 0.26 g/t gold (221,000 tonnes or 490 million pounds of copper) at Sauva, after an aggressive drilling program in 2023. This compares with measured and indicated mineral resources at Chapada of 920.7 Mt at 0.24 per cent copper and 0.12 g/t gold (2,169,000 tonnes or 4.77 Blb copper). Lundin highlighted continuing exploration work in 2024 at Sauva as it continues to advance expansion studies for the district.
• ARR (58 per cent owned by the corporation) continues to accelerate its revenue trajectory, which is expected to continue throughout 2024 with the Q1 2024 commencement of operations of the 308-megawatt Canyon Wind project and the expected near-term commencement of commercial operations of the 300-megawatt El Sauz wind project, as well as the 195-megawatt Angelo solar project, which was acquired in February, 2024, and expected to contribute revenue starting in fourth quarter 2024.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $12.4-million (26 cents per share) during Q1 2024 compares with $19.1-million (40 cents per share) during the prior-year quarter. The adjusted EBITDA margin of 71 per cent in the current quarter was lower than the comparable period and was impacted by higher professional fees associated with the Silicon arbitration. The mineral royalties segment had an EBITDA margin of 75 per cent and 79 per cent for the current- and prior-year quarters, respectively. The renewable royalties segment had an EBITDA margin of 75 per cent and 36 per cent for the current- and prior-year quarters, respectively.

Q1 2024 adjusted operating cash flow of $5.5-million (12 cents per share) compares with $4.5-million (nine cents per share) in 2023. The increase is largely reflective of lower cash taxes paid.

Net earnings of $4.8-million (10 cents per share) for Q1 2024 compares with net earnings of $5.5-million (11 cents per share) in Q1 2023. Loss in joint venture includes $1.9-million of losses associated with Great Bay Renewables' equity investment in an early-stage renewable energy development entity in addition to interest expense of $1.6-million associated with Great Bay's recent credit facility. Adjusted net earnings per share of seven cents in the current quarter are consistent with the first quarter of 2023. The main adjusting items in the current quarter are unrealized and realized gains on derivatives related to share purchase warrants on junior mining equities and foreign exchange losses.

Liquidity and capital allocation summary

Cash and cash equivalents at March 31, 2024, were $101.5-million, compared with $130.4-million at the end of 2023. Cash, excluding $91.0-million held by ARR, was $10.5-million.

At March 31, 2024, the approximate market value of various public equity holdings included:

• $178.1-million for shares of ARR (including the in-the-money value of share purchase warrants);
• $108.0-million for shares of Labrador Iron Ore Royalty Corp.;
• $34.9-million for the value of the indirectly held interest in the shares of Lithium Royalty Corp.;
• $45.4-million for publicly traded shares held within the project generation equity portfolio.

During the first quarter, the corporation made scheduled debt repayments of $2.0-million and paid total dividends of $3.6-million. The corporation also expended $8.2-million during the quarter for the repurchase and cancellation of 429,100 shares under its normal course issuer bid. At March 31, 2024, the corporation carried a balance of $30.0-million under its fixed-rate term debt facility and $81.8-million under its floating-rate revolving credit facilities.

Dividend declaration

The corporation's board of directors has declared an increased quarterly dividend of nine cents per share, which represents a 12.5-per-cent increase over recent quarterly levels. The current quarterly dividend is payable to all shareholders of record at the close of business on May 31, 2024. The dividend is expected to be paid on or about June 14, 2024.

This dividend is eligible for payment in common shares under the dividend reinvestment plan announced by press release May 20, 2020, and available to shareholders who are Canadian residents or residents of countries outside pf the United States.

To be eligible to participate in respect of the June 14, 2024, dividend, non-registered shareholders must provide instruction to their brokerage, and registered shareholders must provide completed enrolment forms to the transfer agent by May 24, 2024, five business days prior to record date. Stock market purchases made under the DRIP for the June 14, 2024, payment will be satisfied by issuance from treasury at the five-day volume-weighted average price ending at the close of trading the day before payment date. Shareholders who have already provided instruction to be enrolled previously will continue to be enrolled unless they direct otherwise. For more information, please see the Altius Minerals dividend reinvestment plan. Participation in the DRIP is optional and will not impact any cash dividends payable to shareholders who do not elect to participate in the DRIP. The declaration, timing and payment of future dividends will largely depend on the corporation's financial results, as well as other factors. Dividends paid by Altius Minerals on its common shares are eligible dividends for Canadian income tax purposes unless otherwise stated.

First quarter financial results conference call and webcast details

Date:  May 9, 2024

Time:  9 a.m. ET

Toll-free dial-in number:  1-800-864-5102

International dial-in number:  1-289-514-5100

Conference call title and ID:  Altius Minerals Q1 2024 financial results, ID 87932

A webcast will be available.

About Altius Minerals Corp.

Altius Minerals' strategy is to create per-share growth through a diversified portfolio of royalty assets that relate to long-life, high-margin operations. This strategy further provides shareholders with exposures that are well aligned with sustainability-related global growth trends, including the electricity generation transition from fossil fuel to renewables, transportation electrification, reduced emissions from steelmaking and increasing agricultural yield requirements. These macrotrends each hold the potential to cause increased demand for many of Altius Minerals' commodity exposures, including copper, renewable-based electricity, several key battery metals (lithium, nickel and cobalt), clean iron ore and potash. In addition, Altius Minerals runs a successful project generation business that originates mineral projects for sale to developers in exchange for equity positions and royalties. Altius Minerals has 46,452,252 common shares issued and outstanding that are listed on Canada's Toronto Stock Exchange. It is included in each of the S&P/TSX Small Cap, the S&P/TSX Global Mining and the S&P/TSX Canadian Dividend Aristocrats indices.

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