Kenorland Minerals Ltd. announced that it has entered into a definitive agreement dated January 15, 2024 with Sumitomo Metal Mining Canada Ltd. to exchange the Company's 20% participating interest in the Frotet Project, located in Quebec, for a 4.0% net smelter return royalty on all minerals extracted from the Project. The transaction results in Sumitomo consolidating 100% ownership of the Project and termination of the joint venture agreement dated April 17, 2018 between Kenorland and Sumitomo. Transaction Highlights: Exchange of Kenorland's 20% participating interest in the Frotet Joint Venture for a 4% net smelter return royalty covering the 39,365 hectare property.

The Frotet Royalty is subject to the following buy down rights in favour of Sumitomo: A 0.25% royalty interest may be purchased for a CAD 3,000,000 cash payment to the Company within five (5) years of the grant of the Frotet Royalty upon the closing of the transaction; A 0.50% royalty interest may be purchased for a CAD 10,000,000 cash payment to the Company within ten (10) years of the grant of the Frotet Royalty upon the closing of the transaction, provided Sumitomo has exercised the first buy down right. In the event Sumitomo exercises the foregoing buy down rights, the Frotet Royalty would be reduced to an uncapped 3.25% net smelter return royalty on all minerals extracted from the Project. Kenorland has agreed to remain the operator of the Project for at least one year following the transaction to facilitate a successful transition of operatorship to Sumitomo.

The transaction is subject to receipt of regulatory approvals, including the approval of the TSX Venture Exchange, and the satisfaction of transfer obligations pursuant to underlying agreements covering portions of the Project.