Empress Royalty Corp. announced the execution of an agreement for a USD 5 million gold stream on the Galaxy gold mine in South Africa owned by Golconda Gold Ltd. ("Golconda"). The gold stream on the Galaxy mine will immediately increase Empress' revenue projections and expand long-term revenue profile.

With four producing assets in portfolio generating significant revenue, the look forward to executing similar transactions on producing precious metal mines that will result in substantial returns for shareholders. The Investment is based on 3.5% of the payable gold production from the Galaxy mine for an initial 8,000 payable ounces; thereafter, the percentage will reduce to 2.0% of the payable gold production until the earlier of: (i) 20,000 ounces having been paid to Empress; or (ii) 20 years after the first payment was made. The purchase price for the payable gold delivered pursuant to the Agreement is 20% of the gold spot price.

The closing of the transaction and the funding of the Investment is subject to customary closing conditions including Empress' satisfactory completion of technical, legal, and financial due diligence which is expected to be completed in early 2024. It is anticipated that the Investment will be funded by Empress through a credit facility. olconda acquired the Galaxy mine in November 2015.

Galaxy is situated 8 km west of the town of Barberton and 45 km west of the provincial capital of Nelspruit in the Mpumalanga Province of South Africa. The property covers 58.6 km2 and is part of the prolific Barberton Greenstone Belt. Galaxy consists of 22 ore bodies, all of which can be accessed via adits at level 17 and level 22.

Galaxy is currently mining at the following two main ore bodies: Galaxy Ore Body - a large pipe shaped ore body with a thickness of 35m and a strike of around 100m (the "Galaxy Ore Body"); and Princeton Ore Body - a steeply dipping ore body with a thickness of 5m and a strike of 300m (the "Princeton Ore Body"). The current mine plan includes the mining of the Galaxy Ore Body and the Princeton Ore Body using a mechanised cut and fill mining method. There are also extensive tailings around the Galaxy mine site which Golconda intends to use to supplement production.

Golconda has already upgraded the crushing circuit, float plant and fil filer plant to 50,000 tonnes per month ("tpm"), from the original 15,000 tpm plant, which produces a gold concentrate. Galaxy is currently in Phase 1 of its expansion program taking production to 15,000 tpm and 1,100 recovered gold ounces per month. The proceeds from the Agreement will be used to fund the expansion required in Phase 2 to take production to 48,000 tpm and 2,800 recovered gold ounces per month.

Golconda Gold has completed the Galaxy Technical Report and the PEA (as such terms are defined below) for the Galaxy mine, which supports the expansion plans already undertaken and the future plans for expansion. In addition, Golconda has a drill ready plan to expand the resource to over 4 million ounces, which encompasses the other 20 identified ore bodies. Work is already underway to determine how this can be able to further implement and execute on the expansion plans at the Galaxy mine.