Electric Royalties to convert interest into shares

Mr. Brendan Yurik reports ELECTRIC ROYALTIES ANNOUNCES INTEREST CONVERSION UNDER CONVERTIBLE CREDIT FACILITY Electric Royalties Ltd. has elected to convert $420,000.00 of accrued interest on the principal amount of the company's convertible credit facility under the amended and restated convertible loan agreement dated Feb. 16, 2024, between the lender and company, into three million common shares of the company at a conversion price of 14 cents per conversion share. Subject to acceptance of the TSX Venture Exchange, the company expects to issue the conversion shares in December, 2025. "Today's conversion virtually zeroes out all interest accrued to date. We appreciate the ongoing support of our largest shareholder Stefan Gleason as the company's diversified portfolio of 43 royalties continues to develop and mature," said Electric Royalties chief executive officer Brendan Yurik. "As we head into 2026, we are pleased with our growing cash flows from the Punitaqui copper mine in Chile, the announced investment commitment by the U.S. government, Nrystar and Korea Zinc related to our past-producing Middle Tennessee zinc royalty, and the numerous other portfolio developments we shared with the market in recent weeks." The interest conversion is treated as a "shares for debt" transaction under Policy 4.3 of the TSX Venture Exchange, and the interest shall be settled in consideration for the conversion shares, upon the terms of the A&R agreement. Completion of the interest conversion is subject to the approval of the TSX Venture Exchange. All of the conversion shares issuable in connection with the interest conversion will bear applicable resale legends restricting the transfer of said conversion shares, including for a period of four months and one day from the distribution date under Canadian securities laws, and for a period of six months under U.S. securities laws. The "related party transaction" requirements under Policy 5.9 of the TSX-V and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions do not apply as the interest conversion meets the exemption set forth under Section 5.1(h)(iii) of MI 61-101. Stock options The company announces that it has granted incentive stock options to certain consultants, under the terms of the company's stock option plan, to purchase an aggregate of 700,000 common shares in the capital stock of the company. The options were granted at an exercise price of 14 cents per share for a three-year term. The stock option grant is subject to acceptance by the TSX Venture Exchange. About Electric Royalties Ltd. Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large-scale energy storage, renewable energy generation and other applications. We seek Safe Harbor.