TNR Gold NSR Royalty Update - Ganfeng's Mariana Lithium Officially Commenced Production

Executive Summary

• Ganfeng Lithium officially inaugurated commercial production at the Mariana Lithium salt‑lake project (20,000 t/yr LiCl) on 12 Feb 2025.
• TNR Gold holds a 1.5% NSR royalty on the project (0.15% held for a shareholder); a repurchase transaction will reduce its interest to 0.45% (shareholder 0.05%) with cash proceeds of CAN$900,000 (company) and CAN$100,000 (shareholder).
• Executive Chairman Kirill Klip emphasizes that the production start positions TNR to receive royalty cash‑flows, supporting its transition to a “cash‑flow generating royalty company.”

Key Details

• Project Production: First phase of Mariana Lithium salt‑lake project now in formal production; annual capacity 20,000 t of lithium chloride.
• Resource Base: Approx. 8.121 million tonnes LCE (Lithium Carbonate Equivalent) explored at the site.
• Royalty Structure Pre‑Repurchase:
• TNR Gold: 1.5% NSR royalty on Mariana project.
• Of this, 0.15% held on behalf of a shareholder.
• Repurchase Agreement (by Litio Minera Argentina – LMA):
• LMA may repurchase 1.0% of the NSR royalty (0.9% of TNR’s interest).
• Cash consideration: CAN$900,000 to TNR Gold; CAN$100,000 to shareholder.
• Post‑repurchase ownership: TNR Gold retains 0.45% NSR royalty; shareholder retains 0.05%.
• Other Royalty Holdings (contextual):
• 0.4% NSR royalty on Los Azules Copper Project (0.04% held for a shareholder).
• 7% net‑profits royalty on Batidero I & II (Josemaria) – joint venture of Lundin Mining and BHP.
• Strategic Commentary: Kirill Klip notes the transition from junior exploration to royalty cash‑flow generation, citing the Mariana production start as a catalyst for shareholder value.
• Environmental & Community Highlights (provided by Ganfeng):
• Project powered by a 120 MW photovoltaic plant and 288 MWh battery storage, operating on renewable energy 24/7.
• Water recycling using non‑potable sources; 19 ecological conservation zones established.
• Economic Impact: Salta Governor highlighted creation of >11,600 jobs (direct & indirect) linked to the project.

Notable Quotes

“We are building the green energy metals royalty and gold company and now we are graduating to the cash flow generating royalty company,” – Kirill Klip, Executive Chairman, TNR Gold Corp.

“Our business model provides a unique entry point in the creation of supply chains for critical materials like energy metals that are powering the energy rEVolution…” – Kirill Klip.