Royal Road Minerals granted mining contract for GAM

Executive Summary

• Royal Road Minerals Ltd. has secured the formal grant of the Chuscalita mining concession in Colombia, converting a previously held application into a 30-year title under Colombian mining law.
• The company has satisfied a key condition of its binding option agreement by making a $150,000 USD payment to the titleholders, thereby securing exclusive rights to acquire an 80% interest in the property.
• Drilling activities on the Chuscalita property are now underway as part of the company's broader Guintar exploration program, with the property viewed as a logical extension of the Guintar porphyry-skarn system.

Key Details

• Title Grant: The Chuscalita mining concession application was formally converted and published as a granted mining concession contract on January 5, 2026. The title has an initial term of 30 years.
• Option Agreement Payments:
  • Royal Road previously made a $100,000 USD option payment.
  • Following the title grant, Royal Road made a further $150,000 USD payment to the titleholders, satisfying the relevant condition under the option agreement.
• Option Terms: Royal Road holds the exclusive right to acquire an 80% interest in the Chuscalita title.
  • Exercise Price: Royal Road may exercise the option at any time by making a one-time cash payment of $1,125,000 USD.
  • Carry Terms: Upon exercise, the remaining 20% interest retained by the titleholders is free-carried until the completion of a successful feasibility study.
  • Royalty Conversion: After the feasibility study, the 20% interest converts to a 2% Net Smelter Returns (NSR) royalty on metals extracted.
  • Royalty Buyout: Royal Road may purchase the 2% NSR royalty for $10,000,000 USD.
• Operational Status: Drilling activities on the Chuscalita property are currently under way. The title is located adjacent to Royal Road's existing Guintar mining concession and is considered a priority target for testing deep porphyry potential.
• Portfolio Context: The Chuscalita title is part of a Colombian portfolio covering approximately 1,840 square kilometers of concession contracts and applications.

Notable Quotes

• "The granting of the Chuscalita title is a significant milestone for Royal Road... Our work at GAM has consistently indicated that the mineralized system extends beyond the Guintar title boundary, and securing this ground was an obvious and necessary step. Within a Colombian portfolio covering approximately 1,840 square kilometres of concession contracts and applications, Chuscalita stands out as a priority opportunity. We are excited to test it for deep porphyry potential..." — Tim Coughlin, President and CEO.