Nova Royalty Corp. announced that it has entered into an agreement with an arm's length private party (the Seller) pursuant to which Nova will acquire an additional 0.03% net smelter return (NSR) royalty (the Additional Royalty), on the Copper World Complex project (Copper World) located in Arizona, USA, owned by Hudbay Minerals Inc. (Hudbay). Nova will now hold a 0.165% NSR royalty on Copper World and Nova's right of first refusal in respect to an additional 0.540%, as detailed in its news release dated January 10, 2022, will reduce to 0.510% NSR upon completion of the Transaction.

Transaction Details: The Additional Royalty has the same characteristics as the 0.135% royalty on Copper World already owned by Nova and covers all metals, including copper, molybdenum, silver, and gold extracted from the majority of mining claims covering Copper World. The aggregate purchase price for the Transaction is $1,400,000 and will be paid as follows: $340,000 in cash, payable upon closing of the Transaction $170,000 in common shares of Nova (the Consideration Shares), payable upon closing; $150,000 in cash, payable 12 months after closing of the Transaction; and $740,000 in cash, payable at the later of: (i) 12 months following the announcement of the commencement of production from the Royalty Area; and (ii) the receipt by Nova of the first three payments under the Royalty. The number of Consideration Shares to be issued in connection with the Transaction will be based on the 20-day volume weighted average trading price on the TSX Venture Exchange (TSXV) of Nova's common shares prior to the announcement date of the Transaction.

Nova retains a right of first refusal to acquire an additional 0.510% NSR on Copper World.