Electric Royalties Ltd. announced that Voyager Metals Inc. has filed a Preliminary Economic Assessment of the Mont Sorcier iron and vanadium project located near Chibougamau, Quebec, Canada, on SEDAR. Electric Royalties holds a 1% gross metal royalty on vanadium production at Mont Sorcier, which is projected to have a 21-year operating mine life. If the anticipated project is placed in production as set out in the PEA, the Company estimates that for the life of mine, average annual royalty revenues of US$750,000 to US$1.5 million per year, based on the US$15 to US$30 per tonne vanadium credits forecast in the PEA, may be payable.

Highlights of the PEA: An after-tax NPV at 8% discount rate of $1.6 billion and IRR of 43% Potential 21-year life of mine, with positive after-tax cash flow commencing in year 1 of operation Annual average EBITDA of $348 million and average annual free cash flow of $235 million over LOM Annual production targeted at approximately 5.0 million tonnes of high grade, low impurity, iron concentrate grading approximately 65% iron with 0.52% vanadium pentoxide per tonne of concentrate Total operating costs of $66 per tonne of concentrate over LOM Initial Capex estimated at $574 million includes $118 million contingency Payback period under 2 years 21-year LOM uses fraction of total resources Open-pit mining operation with a LOM strip ratio less than 0.9:1 There is potential to enhance the value of the overall project through future upgrading of the North Zone Inferred Resource and the potential mining of the South Zone Indicated and Inferred Resources that would be expected to improve the economics by potentially increasing the overall life-of-mine or open up the potential for future expansion in production capacity Iron and Vanadium Pricing Market Study Voyager commissioned an Independent Market Pricing Study in 2019 to determine the potential value of the vanadium-rich iron product produced by Mont Sorcier, given the lack of available quoted market index prices. The study reviewed main iron index price forecasts as well as estimates of the applicable vanadium credits. The study reviewed a value-in-use methodology based upon a review of the grade and concentrate chemistry from Mont Sorcier relative to other similar iron products.

The study concluded that the concentrate from Mont Sorcier should receive a $15 per tonne premium to the Platts 65 price iron index for the contained vanadium credits . Mont Sorcier Concentrate Pricing Mont Sorcier iron and vanadium concentrate is a high grade, low impurity product. The silica level is slightly lower than that of the Platts 65 benchmark, however due to low alumina and phosphorus content, it is considered a high purity iron and vanadium concentrate.

This should attract improved pricing providing that customers that will benefit from the absence of these elements are targeted. The fine particle size may result in a customer discount depending on the market; however, the magnetite content could partially or completely offset the possible penalty. Based on the various market studies and analyst forecasts for iron ore fines and high iron grade of Mont Sorcier concentrate and vanadium credits, a long-term price of $135 per tonne of concentrate was selected for use in the PEA.

Project Summary Mont Sorcier is located approximately 18 km east of Chibougamau, Quebec, in a region with a long history of mining and established infrastructure to support future development. Mont Sorcier has access to all season roads, low-cost provincial hydropower and is within 50 km of rail connection to two all season, ocean-going ports. The railway runs approximately 370 km to the Port of Saguenay which is currently underutilized and can provide sufficient capacity for the project needs.

The PEA is preliminary in nature and includes Mineral Resources that are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that the PEA will be realized.