Elemental Royalty Corp

Royalty Generation Updates

In Q1 2026, the Company's royalty generation business was active in North America, Europe, and Türkiye. The Company incurred $1.4 million in net royalty generation costs in Q1 2026 compared to $Nil in Q1 2025. These expenses include exploration related activities, technical services, project marketing, and legal costs, as well as third party due diligence for royalty acquisitions.

Subsequent to the acquisition of EMX in 2025, the Company’s royalty generation business focused on the early-stage acquisition and advancement of mineral properties with the objective of creating future royalty interests through partner-funded option and exploration agreements. The strategy centers on identifying prospective targets, enhancing project value through geological work, and structuring agreements that transfer development responsibility to qualified operators while retaining long-term royalty exposure.

In Q1 2026 the Company executed a definitive option and earn-in agreement with a subsidiary of BHP Group Limited covering select Serbian exploration licenses located in the Bor District of eastern Serbia, near the Company’s existing producing royalty at Timok. The agreement provides for staged consideration and partner-funded exploration while preserving future royalty interests.

For additional details on Elemental's royalty and royalty generation portfolio, including specifics on the royalty terms, refer to the Company's website, www.elementalroyalty.com.

Qualified Persons

Michael P. Sheehan, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure.