Elemental Altus Royalties Announces Record Second Quarter Revenue

Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) ('Elemental Altus' or 'the Company') announces its operating and financial results for the quarter ended June 30, 2023.

For complete details please refer to the Financial Statements and associated Management Discussion and Analysis ('MD&A') for the three and six months ended June 30, 2023, which can be found on the SEDAR+ website (http://www.sedarplus.ca) or the Company's website (www.elementalaltus.com).

Second Quarter 2023 Financial Highlights:

Record revenue of $2.6 million, up 25% compared to Q2 2022

Record adjusted revenue of $4.7 million, inclusive of Caserones royalty revenue, up 127% compared to Q2 2022

Record Gold Equivalent Ounces ('GEOs') of 2,377 ounces, up 109% compared to Q2 2022

Record adjusted EBITDA of $3.3 million, up 184% compared to Q2 2022 Royalty Portfolio Highlights and Key Developments:

On March 27, 2023 Lundin Mining Corporation (TSX: LUN) announced that it had entered into a binding purchase agreement to acquire a 51% interest in the Caserones copper-molybdenum mine in Chile ('Caserones')

On March 9, 2023, the Company entered into a binding agreement to acquire an additional 0.025% effective net smelter return ('NSR') royalty on Caserones

On July 12, 2023, the Company agreed to purchase an additional effective 0.030% NSR on Caserones, increasing the total effective NSR held to 0.473%

On April 20, 2023, the Company announced that it had completed the acquisition of an additional 0.25% NSR royalty on the Pickle Crow project in Ontario, Canada from a private third-party entity for total consideration of US$300,000 in cash, increasing the effective NSR royalty held by the Company to 2.25%

Highlights Subsequent to June 30, 2023: On July 20, 2023, the Company announced that it agreed to the sale of its 100% owned Diba and Lakanfla gold licences in western Mali to Allied Gold Corporation ('Allied'), the owner and operator of the Sadiola gold mine. As consideration, Allied will grant a near-term production NSR royalty of 3% on the first 226,000 ounces of gold from certain deposits followed by a 2% uncapped royalty on all other production from the licences and pay up to $6 million in cash. The transaction will be completed after local regulatory approvals and filings are completed

On July 25, 2023, the Company announced it had agreed to the sale of a 95% interest in its Daro and Zager copper-gold licences in northern Ethiopia to ANS Exploration ('ANS'). As consideration, ANS will pay US$200,000 in cash and grant two uncapped NSR royalties of 2.5% on copper and gold produced from the licences. The transaction will be completed after local regulatory approvals and filings are completed

Frederick Bell, CEO of Elemental Altus, commented:

'The first half of 2023 has been very positive with the Company continuing to deliver record revenues and impressive growth in our attributable production quarter over quarter. This quarter we continued to add exposure to one of our cornerstone assets, a royalty on the Caserones copper mine in Chile and we look forward to seeing additional optimization on the asset now that Lundin Mining is the majority owner and operator.

'Subsequent to the end of the quarter we generated three new gold and copper royalties through transactions on assets in Mali and Ethiopia. The royalty in Mali in particular offers the potential for near-term revenue at Allied's adjacent Sadiola gold mine and we look forward to adding further royalties to the portfolio in the second half of the year.'

Operating Asset Highlights

The following table summarizes the Company's revenue from royalty interests during the three and six months ended June 30, 2023 and 2022. Adjusted revenue also includes accrued royalty revenue from equity investments for the same periods.

Elemental Altus expects to achieve previously announced guidance of 9,000 to 10,200 GEOs, weighted towards the second half of the year.

Quarterly changes to revenue received by Elemental Altus are driven primarily by fluctuations in production at the underlying mines, the timing of sales, changes in the price of commodities and assets being advanced to production.

Karlawinda Gold Mine, Australia

Capricorn reported record annual production at Karlawinda during the year to June 30, 2023, having produced 120,014 ounces

On April 26, 2023 Capricorn reported that their 73 hole (10,983m) RC drilling at the newly identified Berwick prospect, located 2km east of the Bibra open pit, detected near surface gold mineralisation over a 500m strike length and follow up drilling is underway

Near mine exploration has identified a number of additional prospects within 5km of the Bibra deposit, including Muirfield and Vedas

Caserones Copper Mine, Chile

In Q2 2023, the Company accrued adjusted royalty revenue of $2.13 million (before tax) using an estimate of Q2 sales from Lundin Mining's published production, and a $0.9m upward adjustment based on under accrued revenue relating to Q1 2023

The Company recorded a received dividend of $1.40 million relating to Q1 2023 sales

On July 13, 2023, Lundin Mining (TSX: LUN) closed its previously announced acquisition of an initial 51% of Caserones from JX Nippon Mining and Metals for $950 million. Lundin Mining has the right to acquire up to an additional 19% interest in Caserones for $350 million over a five-year period commencing on the first anniversary of the date of closing

Lundin Mining announced that Caserones annual production guidance for both 2024 and 2025 is 110,000-120,000t of copper and 1,500-2,500t of molybdenum on a 100% basis

Wahgnion Gold Mine, Burkina Faso

Wahgnion throughput remained steady as production moved into the Samavogo pit during the quarter, where grades are expected to increase from Q3

On June 30, 2023 Endeavour Mining announced the sale of its Wahgnion and Boungou mines in Burkina Faso to Lilium Mining, a subsidiary of Lilium Capital

Mercedes Gold Mine, Mexico

Bear Creek reported a revision of mining methods utilized at the mine with the Marianas and San Martin deposits switched from cut and fill mining at both deposits to room and pillar mining at San Martin and sub-level caving and sub-level stoping at Marianas

Tonnes mined from the high-grade San Martin deposit (Measured and Indicated Resource of 289,000t @ 6.6g/t Au) are expected to double from 400 to 800t per day during Q3 2023 as the available working faces increase. The deposit is expected to account for an estimated 50% of H2 2023 gold production

Bonikro Gold Mine, Cote d'Ivoire

The Company owns an NSR royalty on an area of the mine known as Pushback 5 at Allied Gold's open pit Bonikro gold mine in Cote d'Ivoire. At a gold price above $1,450, the NSR royalty is at an effective rate of 2.25%, capped at 560,000 ounces

Allied Gold is expected to target full production from the royalty area during H2 2023

Amancaya Gold Mine, Chile

In Q2 2023 attributable GEOs were broadly similar to Q1 2022

During the period, Austral focused exploration efforts at Amancaya on geological interpretation, having designated a shallow drill program to demonstrate continuity at the Oeste vein, a narrow gold-rich vein previously interpreted and parallel to the Central vein

Ballarat Gold Mine, Australia

The Company owns a 1.25% NSR royalty on the underground Ballarat gold mine in Australia and also owns approximately $0.6 million in accrued royalty payments

The current administrators are undertaking a sales process of the mine which is expected to be finalized prior to the administration ending date of October 2023

During the administration period, the mine has continued to operate

Tailings permits have been progressed offering a pathway to long term management of the tailings

Contact:

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About Elemental Altus Royalties Corp.

Elemental Altus is an income generating precious metals royalty company with 10 producing royalties and a diversified portfolio of pre-production and discovery stage assets. The Company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties, as well as generating royalties on new discoveries. The vision of Elemental Altus is to build a global gold royalty company, offering investors superior exposure to gold with reduced risk and a strong growth profile.

Cautionary note regarding forward-looking statements

This news release contains certain 'forward looking statements' and certain 'forward-looking information' as defined under applicable Canadian securities laws. Forward-looking statements and information can generally be identified by the use of forward-looking terminology such as 'may', 'will', 'should', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'continue', 'plans' or similar terminology.

Forward-looking statements and information include, but are not limited to, statements with respect to the Company's ability to deliver a materially increased revenue profile, the future growth, development and focus of the Company, and the acquisition of new royalties and streams. Forward-looking statements and information are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies.

Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Elemental Altus to control or predict, that may cause Elemental Altus' actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to: the impact of general business and economic conditions, the absence of control over the mining operations from which Elemental Altus will receive royalties, risks related to international operations, government relations and environmental regulation, the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting exploration data; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the impact of the COVID-19 pandemic; the possibility that future exploration, development or mining results will not be consistent with Elemental Altus' expectations; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions; liability, competition, loss of key employees and other related risks and uncertainties. For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the annual information form of the Company for the year ended 31 December 2022. Elemental Altus undertakes no obligation to update forward-looking statements and information except as required by applicable law. Such forward-looking statements and information represents management's best judgment based on information currently available. No forward-looking statement or information can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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