Electric Royalties to issue shares for loan interest

Mr. Brendan Yurik reports ELECTRIC ROYALTIES ANNOUNCES INTEREST CONVERSION UNDER CONVERTIBLE CREDIT FACILITY Gleason & Sons LLC (the lender) has elected to convert $536,500 of accrued interest on the principal amount of Electric Royalties Ltd.'s convertible credit facility under the amended and restated convertible loan agreement dated Feb. 16, 2024, between the lender and the company, into 3.7 million common shares of the company, at a conversion price of 14.5 cents per conversion share. Subject to acceptance of the TSX Venture Exchange, the company expects to issue the conversion shares in August, 2025. "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," said Electric Royalties chief executive officer Brendan Yurik. "I look forward to updating the market soon regarding key developments across our portfolio, which includes our cash-flowing royalty on the Punitaqui copper mine in Chile." 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. 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. Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and, with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution. Electric Royalties has a growing portfolio of 43 royalties in lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper across the world. The company is focused predominantly on acquiring royalties on advanced-stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition through the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy. We seek Safe Harbor.