Electric Royalties Provides Update on Critical Metals Royalty Portfolio

The most recent news release, dated December 8, 2025, provides an operational update on several key royalty assets within Electric Royalties' critical metals portfolio. Key highlights include:

• Graphmada Graphite Mine (Madagascar): Currently under care and maintenance, a Stage 2 Scoping Study is underway to explore expanded production, positioning it as a potential non-China source for battery-anode graphite.
• Battery Hill Manganese Project (New Brunswick, Canada): Phase 2 testing showed strong results with 70% capacity retention after 4,600 cycles for its high-purity manganese material. The project, backed by Eric Sprott, is now moving into Phase 3 testing and advancing its Pre-Feasibility Study (PFS).
• Seymour Lake Lithium Project (Ontario, Canada): The Feasibility Study (FS) is on track for completion in Q2 2026, supported by strengthened funding pathways and infrastructure commitments.
• Mont Sorcier Iron and Vanadium Project (Quebec, Canada): The Feasibility Study (FS) is also progressing towards completion in Q2 2026, supported by funding and ongoing resource-growth work.
• Kenbridge Nickel Project (Ontario, Canada): A drilling program has commenced.

The CEO, Brendan Yurik, highlighted the reinforcement of the company's trajectory toward value creation and de-risking, emphasizing the strategic importance of non-China critical mineral sources.

The December 8, 2025, news release presents positive operational updates across several of Electric Royalties' key development-stage assets. The progress is generally consistent with, or slightly better than, previous expectations, reinforcing the long-term potential of the portfolio.

• Graphmada: The initiation of a Stage 2 Scoping Study for expanded production is a notable positive step beyond merely "seeking project financing to re-start" as noted in the March 2025 CEO letter. This signals concrete planning towards eventual recommencement of production and addresses the previously identified "care and maintenance" status.
• Battery Hill: The reported 70% capacity retention in Phase 2 testing is a strong technical validation for the manganese material, enhancing its commercial potential. This, combined with Eric Sprott's earlier C$2 million investment (January 2025) specifically for the PFS, demonstrates continued progress and validation of this asset.
• Seymour Lake and Mont Sorcier: Confirming the Feasibility Studies for both projects are on track for Q2 2026 is a positive confirmation of previously communicated timelines (March and April 2025 news) and indicates steady advancement towards crucial development milestones. The underlying operators appear to be well-funded and executing their plans.
• Kenbridge: The commencement of a drilling program is a routine, albeit necessary, step in advancing an exploration-stage project.

While these developments are all positive and contribute to the de-risking and long-term value creation potential of Electric Royalties' portfolio, they do not represent an immediate "game-changer" for the company's near-term financial situation. The projects are still in study, testing, or exploration phases, and significant new royalty revenues are not anticipated until these projects reach commercial production, which is still several quarters or years away. The news validates the company's strategy and the progression of its assets but does not fundamentally alter the immediate investment thesis, hence a "Routine - Positive" rating.

Electric Royalties Ltd. (TSXV: ELEC) is a clean energy metals royalty company engaged in acquiring and managing a diversified portfolio of royalties on projects that supply materials for the new energy economy. These metals include lithium, manganese, graphite, copper, cobalt, vanadium, zinc, tin, and nickel. The company's strategy is to benefit from mineral production and exploration upside without incurring the significant capital and operating costs or risks associated with direct mine ownership and operation. As of March 2025, the company held 43 royalties and 29 optioned properties.

While the company has a diverse portfolio, several projects frequently highlighted in news releases are:

• Punitaqui Copper Mine (Chile): A 0.75% Gross Revenue Royalty (GRR) on a producing copper-gold mine, acquired in December 2024, and is currently the primary source of cash flow.
• Battery Hill Manganese Project (New Brunswick, Canada): A 2.0% Gross Metal Royalty (GMR) on a project focused on high-purity manganese for the EV battery industry, currently in the Pre-Feasibility Study (PFS) stage with significant backing from Eric Sprott.
• Seymour Lake Lithium Project (Ontario, Canada): A 1.5% Net Smelter Royalty (NSR) on a project advancing towards a Feasibility Study (FS), with potential to be Ontario's first lithium producer, supported by a C$100 million Letter of Interest from Export Development Canada.
• Mont Sorcier Iron and Vanadium Project (Quebec, Canada): A 1.0% GMR on the vanadium portion, advancing its Feasibility Study with a partnership with Glencore.
• Graphmada Graphite Mine (Madagascar): A 2.5% NSR on a past-producing graphite mine currently under care and maintenance but actively evaluating a restart and expansion.
• Zonia Copper Project (Arizona, USA): A 0.5% GRR, a copper oxide project in North America being acquired by a new operator planning to accelerate its development.
• Middle Tennessee Zinc Mine (MTM) (Tennessee, USA): A 2.5% NSR on an idled zinc mine with significant germanium and gallium by-product potential, becoming more strategic due to China's export restrictions.