Empress Royalty Corp. announced the Company has received the first payable silver ounces from the silver stream agreement on the Tahuehueto Mine ("Tahuehueto" or the "Mine"). Tahuehueto Mine is located in Durango, Mexico, 100% owned and operated by Altaley Mining Corporation ("Altaley").

Tahuehueto is located in Durango, Mexico. It is a typical epithermal polymetallic mineral deposit in this part of Mexico, with metals consisting of gold, silver, zinc, copper and lead. The Mine is fully permitted, has all social and environmental licenses to operate, and has offtake agreements in place.

On April 26, 2022, Altaley filed an updated technical report, including a Preliminary Feasibility Study ("PFS") for Tahuehueto. With the filing of the PFS report, Altaley updated the March 7, 2022, disclosure with a significant increase of approximately 30% to the overall economics of the project. Altaley expects to produce 2,166 oz/month of gold and 37,829 oz/month of silver, of which 100% of the silver is subject to the above terms of the Stream.

Highlights from the Altaley press release include the following: 2022 Preliminary Feasibility Study improves 2017 PFS increasing throughput to 1,000 tonnes per day ("tpd") returning a post-tax NPV of US$161.3M, at a discount rate of 5%, (US$141.8M and US$131.8M at discount rate of 8% and 10% respectively). IRR of 65% with a two year payback period with a 5% discount rate. Total Life of Mine Capital Cost estimate of US$56.9M with project construction over 95% complete.

• Life of Mine All in Sustaining Costs ("AISC") estimated at $844 per gold equivalent ounce at US$1,647.52/ounce Au, $21.64/ounce Ag, $0.92/pound Pb, US$1.14/pound Zn and $3.60/pound Cu). Proven & Probable Reserves of 3.58 million tonnes grading 2.55g/t gold, 50.06 g/t silver, 1.92% zinc, 1.11% lead, 0.26% copper. 9-year Life of Mine ("LOM") utilizing mostly low-cost bulk underground Sub-level Open Stoping mining method with average annual production of 25,987 oz of gold, 453,952 oz of silver, 827 tonnes of copper, 3,155 tonnes of lead and 6,123 k-lbs of zinc. Significant opportunities exist to expand the Projects Mineral Resources and Reserves base with near mine and regional exploration.

Altaley plans to aggressively pursue exploration as soon as free cash flows allow or alternative funding is secured. Altaley stated the operations team have been diligently resolving various start-up issues related to the water supply pipeline and mill commissioning and, over the past week have successfully achieved ongoing pre-production with the first 500 tpd ball mill. Recently, processing has been stabilized with the mill achieving ore throughput up to 350 tpd and averaging approximately 195 tpd over the past 5 days.

Mill throughput is estimated to remain at current levels over the next two weeks with crushing being handled with a provisional cone crusher while the permanent crushing circuit installation is being finalized and anticipated to be operational within the next two weeks and thereafter the ball mill throughput will be ramped up to capacity. Altaley further updated on production that to date approximately 260 tonnes of bulk concentrate has been produced at Tahuehueto. Two shipments of approximately 30 tonnes each have been shipped and received to the point of sale.

These initial batches of concentrate were produced from low-grade ore on purpose as original feed testing at the ball mill start-up. Revenue received from the first shipment was approximately US$42,000 paid for gold, silver, and lead. The second delivery payment is pending.

Another 70 tons of concentrate is in the process of being shipped from Tahuehueto to Tepehuanes subsequently to be trucked in the coming days. The Tahuehueto operations team estimate that there are approximately another 150 tonnes of concentrate available, drying on the mill patio and within the thickeners available to be filtered for drying on the patios. The tailings storage facility is in the final stages of construction and expected to be ready to receive dry stack tailings within 45 days.

Tailings currently being generated are being filtered and stored as additional backfill underground. The Tahuehueto Laboratory is essentially ready to be operational and technicians are calibrating ICP and ancillary equipment expected to be fully operational over the next few days. Installation of the second 500 tpd ball mill is scheduled over the next several months and the Company anticipates the project will be able to commission this mill during Fourth Quarter 2022 and ramp up production towards the mine's designed capacity of 1,000 tpd near the end of 2022.