Elemental Altus acquires Laverton royalty

Mr. Frederick Bell reports ELEMENTAL ALTUS EXPANDS ROYALTY PORTFOLIO WITH CORNERSTONE LAVERTON ACQUISITION AND DUGBE DEVELOPMENT ASSET Elemental Altus Royalties Corp. has created a cornerstone gold royalty at Laverton in Western Australia. The Laverton royalty acquisition builds on the company's existing coverage to create a cornerstone gold royalty in a Tier 1 jurisdiction. Elemental Altus has signed binding agreements to acquire an existing uncapped 2-per-cent gross revenue royalty over Genesis Minerals' Focus Laverton project in Western Australia, alongside an existing 2-per-cent GRR on Brightstar Resources' producing Jasper Hills project. In parallel, the company is acquiring an existing uncapped 2.0- to 2.5-per-cent net smelter return royalty on Pasofino Gold's feasibility-stage Dugbe project in Liberia. Highlights: Focus Laverton royalty (Western Australia): Approximately $52-million (U.S.) acquisition of an uncapped 2-per-cent GRR over Genesis's recently acquired multimillion-ounce Focus Laverton project to create third cornerstone asset alongside Karlawinda and Caserones; The Focus Laverton royalty covers approximately 2.1 million ounces of measured and indicated resources and 1.5 Moz of inferred resources adjacent to Genesis's operating Laverton mill, 99 per cent on granted mining leases, and positioned for rapid inclusion into Genesis's mine plan; The Focus Laverton 2-per-cent GRR overlaps the company's existing 2-per-cent GRR covering approximately 750,000 oz of measured and indicated resources and 1.1 Moz of inferred resources at the same project; The combination of Elemental Altus's existing Laverton royalty and the Focus Laverton royalty creates a cornerstone 2- to 4-per-cent GRR for the company in a Tier 1 jurisdiction with a proven mid-tier operator in Genesis Minerals; Royalty tenure has been near dormant for over a decade with Genesis highlighting the compelling exploration upside across approximately 300 square kilometres of highly prospective licences; Genesis has also announced studies are continuing into staged processing plant expansions at its Laverton mill; As part of the same transaction, the company acquired an uncapped 2-per-cent GRR on Brightstar's producing Jasper Hills project in the same Laverton district; The Jasper Hills royalty is currently in production with mineralized materials being toll treated through Genesis's Laverton mill while Brightstar advance stand-alone development plans. Dugbe (Liberia): Initial $16.5-million (U.S.) acquisition of an uncapped 2.0-per-cent NSR royalty over the 3.3 Moz measured and indicated resource at the Dugbe project, increasing to 2.5 per cent under certain production and gold price conditions; Pasofino's 2022 feasibility study outlined a 14-year mine life producing approximately 162,000 oz gold per annum at $1,700 (U.S.) per oz assumptions; An updated feasibility study is under way, and the project is expected to be reinvigorated with the support of the new indirect majority owner Coris Bank International; Mineral reserves of 2.8 Moz gold and significant exploration upside across up to 1,257 square kilometres of royalty coverage; Pasofino well placed to accelerate the development of the project over 2026, and updated studies will derisk the asset going forward. Frederick Bell, chief executive officer of Elemental Altus, commented: "These multimillion-ounce acquisitions highlight our strategy of securing both cornerstone and growth-stage gold royalties in quality jurisdictions. Laverton enhances our near-term cash flow profile through exposure to one of Western Australia's most well-known gold districts while Dugbe adds a large-scale feasibility-stage project with long-life, multimillion-ounce potential. Together, they expand our near-term revenues and reinforce our long-term pipeline, positioning Elemental Altus as the most compelling royalty growth story in the sector. We continue to demonstrate our ability to transact on value-accretive opportunities that deliver both scale and diversification for our shareholders." Terms of the acquisitions The Laverton acquisition is structured as an agreement to acquire a private Australian company which holds the Laverton and Jasper Hills royalties for cash consideration of $80-million (Australian) (approximately $52-million (U.S.)). The Dugbe acquisition is structured as an agreement to acquire a wholly owned subsidiary of Ecora Resources PLC, which holds the Dugbe royalty, for an initial consideration of $16.5-million (U.S.) in cash, plus a contingent payment of up to $3.5-million (U.S.) in cash, payable on the earlier of: $700,000 (U.S.) upon the commencement of project construction; and $2.8-million (U.S.) upon the commencement of commercial production; or A cumulative 150,000 ounces of royalty-linked gold production at Dugbe. As at Sept. 1, 2025, Elemental Altus has over $32-million (U.S.) in cash and an undrawn credit facility of up to $50-million (U.S.) with National Bank of Canada, Canadian Imperial Bank of Commerce and Royal Bank of Canada. The Dugbe acquisition is expected to close shortly with the Laverton acquisition closing prior to the end of fourth quarter 2025. Royalty revenue from the Jasper Hill royalties, part of the Laverton acquisition, will be attributable to the company from completion of the transaction. Laverton -- 2-per-cent gross revenue royalty The Laverton project covers several Archean greenstone belts north-northeast of Kalgoorlie, which host a range of orogenic lode gold deposits, typical of the Western Australian Yilgarn eastern goldfields. The Laverton district is one of the best endowed gold regions in Australia, hosting a number of major deposits, such as Gold Fields' Granny Smith and AngloGold Ashanti's Sunrise Dam. Following the acquisition, Elemental Altus will hold a total 4-per-cent GRR over 67 square kilometres of the project and a further 2-per-cent GRR over an additional 240 square kilometres. Elemental Altus's to-be-acquired royalty covers a total of 307 square kilometres of the Laverton project, encompassing the following deposits: Beasley Creek and Beasley Creek South; The Chatterbox trend, including Apollo, Eclipse, Innuendo and Rumor; The Gladiator trend, including Gladiator and Murrays; The Lancefield-Wedge trend, including Telegraph and Wedge-Lancefield North; The historic underground Lancefield gold mine; The Karridale-Burtville project; The Euro trend, comprising both North and South deposits; The Cragiemore-Mary Mac trend, including the Golden Pinnacles, Mary Mac and Craigiemore; The West Laverton-Bulldog trend; The Barnicoat project, including Barnicoat, Admiral Hill, Bells, Castaway, Grouse and Sickle. The wider Laverton project has the following Joint Ore Reserves Committee-2012-compliant mineral resource and ore reserve estimates, over which Elemental Altus has significant coverage: Indicated mineral resource estimate of 45.0 million tonnes of 1.5 grams per tonne gold for 2.1 million ounces; Inferred mineral resource estimate of 23.0 Mt of 2.1 g/t Au for 1.6 million ounces. Including: Probable ore reserve estimate of 13.0 Mt of 1.3 g/t Au for 546,000 ounces. The newly acquired royalty area also includes an additional combined 240,000 ounces of historical gold resources at the Barnicoat project and South Lancefield, reported to a JORC-2004-compliant standard only. Genesis notes the clear potential for Laverton to supply open-pit and underground ore to Genesis's operating three-million-tonne-per-year Laverton mill approximately 30 kilometres away. The mill is currently designed for standard carbon-in-leach/carbon-in-pulp processing of free milling ores, comprising a jaw crusher and ball mill, leach tanks, and an elution circuit. Genesis is investigating staged expansion opportunities, including an additional ball mill, increased leaching capacity and a crushing circuit upgrade. The new operator is also investigating the possible inclusion of refractory gold deposits, and these studies could potentially include restarting the Lancefield underground mine, with an inferred resource of 790,000 ounces at 6.3 g/t Au within Elemental Altus's royalty area, which could be used to supplement future mill feed. Jasper Hills -- 2-per-cent gross revenue royalty The Jasper Hills project consists of the Lord Byron, Fish and Gilt Key gold deposits approximately 100 kilometres southeast of Laverton, Western Australia. The mineral resources lie in an underexplored greenstone belt southeast of Laverton approximately 70 km southeast of Brightstar's processing plant, itself located approximately 30 km southeast of Laverton, Western Australia. Mining has previously occurred at Jasper Hills, with Crescent Gold Ltd. extracting 350,000 t of 3.83 g/t Au from the Fish open pit from 2011 to 2012, with ore being processed at Granny Smith. Crescent also mined 280,150 t of 1.5 g/t Au for 13,510 oz gold produced from two shallow laterite pits at Lord Byron in 2012. Post-2012, Blue Cap Mining completed a further cutback at Lord Byron, with 190,400 t of 2.04 g/t sold for processing at Sunrise Dam. Elemental Altus's royalty covers 32 square kilometres of the Jasper Hills project, encompassing the following JORC-2012-compliant mineral resource and ore reserve estimates: Measured and indicated mineral resource estimate of 2.5 Mt of 1.8 g/t Au for 147,000 ounces; Inferred mineral resource estimate of 3.2 Mt of 1.6 g/t Au for 160,000 ounces. Including: Proven and probable ore reserve estimate of 1.5 Mt of 1.6 g/t Au for 77,000 ounces. Brightstar is actively developing the underground mine at Fish, with portal access established in April, 2025, and first ore intersected in late June. Stoping is on track to commence in the September quarter, with ore to be hauled to Genesis's Laverton mill, where a tolling agreement is in place to treat Brightstar material until first quarter 2026. Two underground diamond drilling platforms have been established ahead of an exploration drill campaign this quarter. Inferred resources are present beneath the currently planned development, with exploration targets identified at depth. The company believes that there is significant potential for reserve replacement and for the life of mine to be extended beyond the current plan. The Lord Byron open pit is scheduled to commence mining in third quarter 2026, with ore to be treated at the Brightstar mill, which is planned to be refurbished and restarted in second half 2026. It is expected that Lord Byron will provide the initial baseload feed to the expanded 1.0-million-tonne-per-year mill up to and including 2030. The current reserve pit shell at Lord Byron is modelled using a $3,500 (Australian)-per-ounce gold price, which is significantly below consensus forecasts, increasing the likelihood for further reserve conversion, pushbacks and depth extensions to the current resource, which is open at depth. Brightstar ore from existing low-grade stockpiles at Lord Byron has been processed at Laverton for additional near-term production. Elemental Altus notes clear intent from Brightstar to maximize efficiencies and productivity at the Jasper Hills complex, with the construction of a new camp and associated infrastructure being progressed to enhance synergies across the two operations. The Jasper Hills tenements are central to Brightstar's early production plan, using initial near-term revenue to finance exploration and develop the wider Laverton package, including at Second Fortune, Alpha and Cork Tree Well to the north. Dugbe -- 2.0- to 2.5-per-cent net smelter return royalty Liberia is considered highly prospective for gold, and is a geologically similar, yet underexplored, jurisdiction compared with the neighbouring gold-producing countries Ivory Coast, Mali, Burkino Faso and Ghana. The 2,078-square-kilometre project area is situated in an established mining region -- with Bonikro, Yaoure, Ity and Abujar gold deposits all present to the northeast. The royalty covers a circular area with a 20-kilometre radius from a defined point at the southern edge of current Dugbe F pit design. The royalty area covers 1,257 square kilometres, with approximately 850 square kilometres overlapping with the current project area. DRA Global completed a feasibility study for Dugbe in June, 2022, and, more recently, Pasofino announced that it has engaged MineScope Services to complete a gap analysis and trade-off studies to update the 2022 feasibility study. Phase 1 of this process has been completed, and improvement work streams have been outlined for the next 12 months, leading to the planned release of an updated study next year. The proposed greenfield project is a multipit mine, utilizing truck-shovel open-pit mining methods with a single processing plant. The 2022 Dugbe feasibility study proposed a five-million-tonne-per-year mill throughput with a 14-year mine life, producing approximately 162,000 ounces of gold per annum, averaging approximately 200,000 ounces of gold per annum over the first 10 years of full production. All project infrastructure to be constructed is included in the study, as well as upgrades at the nearby port facility at Greenville and the 75-kilometre access route. The royalty area also contains a number of encouraging exploration prospects, including the very promising Sackor and Bukon Jedeh areas. About Elemental Altus Royalties Corp. Elemental Altus is an income-generating precious metal royalty company with 10 producing royalties and a diversified portfolio of preproduction- and discovery-stage assets. The company is focused on acquiring uncapped royalties and streams over producing, or near-producing, mines operated by established counterparties. 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. Qualified person Richard Evans, FAusIMM, a senior vice-president, technical, for Elemental Altus, a qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects), has reviewed and approved the scientific and technical disclosure contained in this press release. We seek Safe Harbor.