Royalties Inc. Hires SLR to Update Bilbao Economics

Executive Summary

• Royalties Inc. has engaged SLR Consulting (Canada) Ltd. to perform an updated economic analysis of the Bilbao Silver‑Zinc‑Lead project using current metal prices and to assess high‑grade iron‑oxide processing options.
• The new study will incorporate recent spot price increases (Silver $92/oz, Zinc $1.50/lb, Lead $0.93/lb) that could roughly double projected annual revenue versus the 2014 PEA assumptions.
• A report is expected within one month, potentially identifying additional tonnage and improved project economics.

Key Details

• Consultant Engagement: SLR Consulting (Canada) Ltd. hired to update economic model based on 2014 Preliminary Economic Assessment (PEA) with current commodity pricing.
• Scope of Work:
• Conduct sensitivity analysis using present‑day metal prices.
• Perform high‑level assessment of iron‑oxide ore processing technologies to evaluate value recovery from the oxide cap excluded in the original PEA.
• Timeline: Updated report anticipated within one month of engagement.
• Project Background – Bilbao:
• 100% owned (subject to a 1.5 % NSR) zinc‑silver‑lead‑copper deposit in Zacatecas, Mexico.
• Original 2014 PEA based on three‑year trailing averages: Silver $30.24/oz, Zinc $0.94/lb, Lead $1.01/lb.
• Current spot prices: Silver $92/oz, Zinc $1.50/lb, Lead $0.93/lb – representing a ~2× increase in potential revenue.
• Original Mine Plan (PEA):
• Production rate: 2,000 t/day (≈720,000 t/yr).
• Average grades: 2.1 % Zn, 1.4 % Pb, 63.96 g/t Ag.
• Mine life: ~8 years.
• Processing output: ~16,913 dry t/yr of silver‑rich lead concentrate and 26,966 dry t/yr of zinc concentrate (≈20 M lb Zn, 17 M lb Pb, 1 M oz Ag per year).
• CEO Comment: Tim Gallagher highlighted the tripling of silver price and the need to revisit project economics, noting eight identified satellite targets for potential additional mineralization.
• Qualified Person: Gerry J. Gauthier, P. Eng., Director & former President, approved technical information under NI 43‑101.

Notable Quotes

“With the silver price tripling over the last year and expected to continue to be strong, it is time to revisit the economics of our Bilbao project and to focus on the high‑grade silver potential as well as how to increase tonnage.” – Tim Gallagher, CEO

This release contains forward‑looking statements regarding the anticipated economic analysis and potential project enhancements.