Royalties Inc. Receives Bilbao Project Economic Update

Executive Summary

• Royalties Inc. received an updated economic model for the Bilbao Silver‑Lead‑Zinc project from SLR Consulting, incorporating December 2025 cost basis and current metal prices.
• The sensitivity analysis shows the project's economics are highly responsive to silver price movements, indicating significant upside potential in a higher‑price environment.
• CEO Tim Gallagher highlighted that rising silver prices markedly improve the project's value and that a planned drill program could further enhance resources.

Key Details

• Economic Model Update: SLR used 2014 PEA inputs adjusted to a December 2025 cost basis, reflecting escalated capital and operating costs (including higher structural steel prices).
• Silver Price Scenarios: Table of key economic metrics (NPV, IRR, payback) presented for multiple silver price levels; exact figures are shown in the accompanying graphic.
• Sensitivity Findings:
• Project economics are “very sensitive” to silver price fluctuations.
• Current market conditions suggest considerable upside if silver prices rise further.
• Recommendations from SLR:
• Validate project costs through a comprehensive PEA update.
• Re‑assess mineral resource estimates and mineable quantities under the new economic inputs.
• CEO Quote: “As expected, the breakout in the silver price has significantly improved the potential economics of the core deposit… this update confirms and totally restates the value and the optionality of Bilbao in this new era of silver prices.” – Tim Gallagher, CEO.
• Qualified Person: Gerry J. Gauthier, P. Eng., approved the technical information per NI 43‑101 standards.

Notable Quotes

“As expected, the breakout in the silver price has significantly improved the potential economics of the core deposit in the Bilbao project… this update confirms and totally restates the value and the optionality of Bilbao in this new era of silver prices.” – Tim Gallagher, CEO.