Lithium Royalty Corp. Acquires a 1.0% Pre-Existing NSR Royalty on the Falcon West Property Owned and Operated by Grid Metals Corp.

On November 26, 2025, Lithium Royalty Corp. (LIRC) announced the acquisition of a 1.0% pre-existing Net Smelter Revenue (NSR) royalty on the Lucy claims of the Falcon West lithium-cesium project in Manitoba, Canada. The project is owned and operated by Grid Metals Corp.

The press release highlights that Grid Metals is completing a 70-hole drill campaign on the Lucy pegmatite to define its cesium potential. The property has a historical, non-compliant resource of 226,800 tonnes at 1.75% Li2O, and recent drill results have shown high-grade cesium up to 14% Cs2O.

CEO Ernie Ortiz stated the acquisition is a complement to their portfolio, adding exposure to critical minerals like cesium, which has the potential for low capital expenditures and an accelerated path to production. This acquisition increases LIRC's total portfolio to 37 royalties.

The acquisition of the Falcon West royalty is a minor, tactical move that aligns with the company's recently articulated strategy of diversifying into other critical minerals. The financial impact is negligible in the short-to-medium term, as Falcon West is an early-stage exploration project with no defined timeline to production or cash flow. The purchase price was not disclosed, but based on a similar acquisition of a tungsten royalty in Q3 2025 for US$260,000, the outlay was likely minimal.

This move follows the acquisition of the Fox Tungsten royalty announced in the Q3 results. In the Q3 2025 earnings call, CEO Ernie Ortiz confirmed this strategy, stating, "...to the extent there are tactical opportunities in critical minerals that are relatively small in capital outlay, yet benefit from our IP... they will continue to evaluate opportunities as they arise." This acquisition is a direct execution of that strategy.

The news is routine and does not materially alter the company's financial profile or near-term revenue outlook, which remains dependent on the successful ramp-up of its core lithium assets like Tres Quebradas and Mariana. However, it is a slight positive as it adds long-term, low-cost optionality to a high-value commodity (cesium) and demonstrates disciplined capital allocation. The lack of a disclosed purchase price is a minor negative, reducing transparency.

The primary value drivers for LIRC remain unchanged: the operational performance of its producing royalties and the market price of lithium. This news does not shift the investment thesis but reinforces management's approach to building a diversified portfolio.

Lithium Royalty Corp. is a royalty and streaming company focused on battery materials, with a primary emphasis on lithium. The company's strategy is to acquire royalties on high-quality, long-life, low-cost mines in stable jurisdictions. As of November 2025, its portfolio consists of 37 royalties.

The company's value is underpinned by several key assets: - Producing/Commissioning: - Tres Quebradas (Argentina): Operated by Zijin Mining. A 0.9% GOR. Phase 1 production of 20,000 tpa LCE commenced in Q3 2025. This is a critical near-term revenue driver. - Grota do Cirilo (Brazil): Operated by Sigma Lithium. A net 0.9% NSR. A significant producing hard rock asset. - Mariana (Argentina): Operated by Ganfeng Lithium. A 0.45% NSR. Production of lithium chloride was inaugurated in early 2025, with first revenue for LIRC expected soon. - Development: The portfolio includes royalties on key development projects like Finniss (Core Lithium, Australia), Das Neves (Atlas Lithium, Brazil), Moblan (Sayona Mining, Canada), and Thacker Pass (Lithium Americas, USA).