Electric Royalties to issue shares for loan interest

Executive Summary

• Gleason & Sons LLC elected to convert $536,500 of accrued interest on Electric Royalties Ltd.’s convertible credit facility into 3.7 million common shares at a price of $0.145 per share.
• The conversion shares are expected to be issued in August 2025, subject to TSX Venture Exchange approval.
• The transaction eliminates all accrued interest prior to the conversion and is treated as a shares‑for‑debt transaction under TSX‑V Policy 4.3.

Key Details

• Conversion Amount: $536,500 of accrued interest converted into 3.7 million common shares.
• Conversion Price: C$0.145 per share.
• Issuer: Electric Royalties Ltd. (the “Company”).
• Lender/Counterparty: Gleason & Sons LLC (largest shareholder).
• Timing: Shares to be issued in August 2025, pending TSX Venture Exchange acceptance.
• Regulatory Treatment: Classified as a shares‑for‑debt transaction under TSX‑V Policy 4.3; related‑party exemption applied per MI 61‑101 Section 5.1(h)(iii).
• Resale Legends: Shares subject to a four‑month‑plus‑one‑day resale restriction in Canada and a six‑month restriction in the United States.
• Impact on Debt: The conversion “zeroes out” all accrued interest prior to the conversion date.

Notable Quotes

“This conversion zeroes out all interest accrued prior to last week. 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,” – Brendan Yurik, CEO, Electric Royalties Ltd.

The release contains no forward‑looking statements beyond the anticipated issuance date.