Category: Project Generators

Vancouver, British Columbia–(Newsfile Corp. – August 12, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX”) is pleased to report results for the three and six months ended June 30, 2024 (in U.S. dollars unless otherwise noted).

In Q2 2024, EMX continued on a strong uptrend in revenue due to robust royalty production and strong metal prices. Strong performance during the quarter was marked from Timok, Gediktepe, and Leeville. EMX continued to invest capital generating and acquiring royalties around the world while our partners invested significant capital to expand operations at existing mines, advance towards the development of new mines, and explore for new opportunities.

Summary of Financial Highlights for the Quarter Ended June 30, 2024 and 2023:¹

		Three months ended June 30,						Six months ended June 30,
(In thousands of dollars)		2024			2023			2024			2023
Statement of Loss
Revenue and other income	$	6,005		$	3,408		$	12,245		$	6,150
General and administrative costs		(1,694	)		(1,576	)		(3,842	)		(3,298	)
Royalty generation and project evaluation costs, net		(2,907	)		(2,200	)		(5,841	)		(5,022	)
Net loss	$	(4,022	)	$	(4,722	)	$	(6,249	)	$	(8,448	)
Statement of Cash Flows
Cash flows from operating activities	$	(514	)	$	(1,002	)	$	513		$	(4,335	)
Non-IFRS Financial Measures1
Adjusted revenue and other income	$	8,758		$	6,614		$	17,051		$	11,582
Adjusted royalty revenue	$	7,836		$	5,265		$	15,493		$	9,208
GEOs sold		3,352			2,662			7,047			4,750
Adjusted cash flows from operating activities	$	1,341		$	1,452		$	4,002		$	(983	)
Adjusted EBITDA	$	4,639		$	2,848		$	7,862		$	3,222

Strong Revenue Growth Adjusted revenue and other income1 increased by 32% compared to Q2 2023•Adjusted royalty revenue1 increased by 49% compared to Q2 2023	Development of Flagship Assets Significant investment by Zijin Mining Group at Timok through continued development of upper and lower zonesLundin Mining increased its ownership percentage in Caserones to 70%
Record Quarterly Revenue from Flagship Asset Timok generated royalty revenue of $1,586,000 in Q2 2024 for a second consecutive quarter of record production from the upper zone	Consistent and Steady Cash Flows Fifth consecutive quarter with positive adjusted cash flows from operating activities1

Outlook

The Company is maintaining its 2024 guidance of GEOs sales of 11,000 to 14,000, adjusted royalty revenue of $22,000,000 to $27,500,000 and option and other property income of $2,000,000 to $3,000,000. The Company is currently on pace to achieve the upper end of its annual guidance for GEOs sold and adjusted royalty revenue, while aiming for the lower end of our option and other property income guidance.

The Company is excited about the prospect for continued growth in the portfolio for 2024 and the coming years. The driver for near and long term growth in cash flow will come from the large deposits of Caserones in Chile and Timok in Serbia. At Caserones, Lundin has initiated an exploration program which is intended to expand mineral resources and mineral reserves while at the same time looking to increase throughput at the plant. At Timok, Zijin Mining Group Co. continues to increase its production rates in the upper zone copper-gold deposit while developing the lower zone, which we believe will be one of the more important block cave development projects in the world.

In terms of other production royalty assets, the Company expects Gediktepe, Leeville, and Gold Bar South to mirror what occurred in 2023. In Türkiye, Gediktepe continues to perform well and is ahead of its production forecast for 2024 (as of the end of Q2) and production rates and grades at Balya North ramped up again in Q2. We are also excited about the advancement of Diablillos in Argentina by AbraSilver Resource Corp. where the company continues to expand the mineral resource.

The Company will continue to evaluate and work to acquire mineral rights and royalties in 2024. The Company expects it will invest similar amounts as in 2023 towards the royalty generation business. As in previous years, producing royalties will continue to be supplemented by option, advance royalty, and other pre-production payments from partnered projects across the global asset portfolio. Efforts and programs are underway to optimize and control costs as the Company continues to grow. EMX believes it is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development, and production success.

As part of the Company’s effort to continue to strengthen its balance sheet, subsequent to the end of the period, the Company has closed the refinancing of its outstanding debt with Sprott Private Resource Lending II of $34,660,000, with a new $35,000,000 credit agreement with Franco-Nevada Corporation (“Franco”), previously announced on June 20, 2024. This refinancing extends the maturity date of the Company’s debt facility from December 31, 2024 to July 1, 2029.

Second Quarter Results for 2024

In Q2 2024, the Company recognized $8,758,000 and $7,836,000 in adjusted revenue and other income¹ and adjusted royalty revenue¹, respectively, which represented a 32% and 49% increase, respectively, compared to Q2 2023. The significant increase is due to the commencement of royalty payments in Q3 2023 from the Timok royalty property, as well as a 54% increase in royalty revenue from Gediktepe and a 79% increase in royalty revenue from Leeville when compared to Q2 2023.

The following table is a summary of GEOs¹ sold and adjusted royalty revenue¹ for the three months ended June 30, 2024 and 2023:

	2024						2023
	GEOs Sold			Revenue (in thousands)			GEOs Sold			Revenue (in thousands)
Caserones	1,178		$	2,753			1,621		$	3,206
Timok	678			1,586			–			–
Gediktepe	772			1,806			594			1,175
Leeville	508			1,187			336			664
Balya	133			311			5			9
Gold Bar South	71			167			68			134
Advanced royalty payments	11			26			39			77
Adjusted royalty revenue	3,352		$	7,836			2,662		$	5,265

Included in the quarterly revenue for Caserones was a true up of $493,000 (Q2 2023 – $1,153,000) due to a higher than expected revenue in the prior quarter. The true up in the current period was mainly driven by higher than anticipated copper and molybdenum sales in Q1 2024.

The following table is a summary of GEOs¹ sold and adjusted royalty revenue¹ for the six months ended June 30, 2024 and 2023:

	2024						2023
	GEOs Sold			Revenue (in thousands)			GEOs Sold			Revenue (in thousands)
Caserones	2,168		$	4,806			2,800		$	5,432
Timok	1,290			2,853			–			–
Gediktepe	2,216			4,796			1,084			2,101
Leeville	925			2,051			618			1,198
Balya	228			508			86			162
Gold Bar South	108			242			68			134
Advanced royalty payments	113			237			94			181
Adjusted royalty revenue	7,047		$	15,493			4,750		$	9,208

Net royalty generation and project evaluation costs increased from $2,200,000 in Q2 2023 to $2,907,000 in Q2 2024. Royalty generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. The increase in net royalty generation and project evaluation costs was predominately attributable to the timing of the 2024 and 2023 annual share-based compensation grants. The 2024 annual grant occurred in Q2 2024 while the 2023 grant occurred in Q3 2023. This timing difference generated a $472,000 increase in costs when compared to Q2 2023. The remaining increase can be attributed to an increase in property costs in Fennoscandia and South America, a decrease in recoveries in Fennoscandia and an increase in overall costs in Eastern Europe and Morocco.

These cost increases were offset by a $203,000 decrease in net expenditures in the USA. The decrease was primarily related to drilling costs that were incurred in 2023, through a former subsidiary of the Company, Scout Drilling LLC., in exchange for future royalty opportunities.

Not inclusive of the net royalty generation and project evaluation cost, EMX earned $555,000 in royalty generation revenue in Q2 2024 (Q2 2023 – $1,088,000).

Second Quarter Corporate Updates

Appointment of Two New Members to the Board of Directors

In Q2 2024, the Company announced the appointment of Dawson Brisco and Chris Wright to the Board of Directors.

Credit Agreement with Franco-Nevada Corporation

In June 2024, the Company announced that it had entered into a $35,000,000 credit agreement with Franco-Nevada Corporation with a maturity date of July 1, 2029. Once received, the Company will use the proceeds of the loan to repay the outstanding balance of the Sprott Credit Facility and for general working capital purposes. Subsequent to the end of the period, the Company closed its credit agreement with Franco.

Inaugural Sustainability Report

The Company is also pleased to announce the publication of its inaugural Sustainability Report for 2023. This report marks a milestone in the Company’s journey with respect to its sustainable and ethical business practices and sets a foundational baseline for the Company’s Environmental, Social and Governance (ESG) efforts moving forward. The report provides information on the Company’s key ESG initiatives, reviews performance metrics, identifies improvement areas, and sets future targets.

Commencement of Normal Course Issuer Bid

During the three months ended June 30, 2024 (“Q2 2024”) the Company purchased 106,276 common shares at a cost of $206,000 which were returned to treasury pursuant to the Company’s Normal Course Issuer Bid. Subsequent the period end, the Company repurchased 167,199 shares for a total cost of $305,000.

Cyber Event Update

In April 2024, the Company became aware that one of the Company’s subsidiaries in Türkiye was the subject of a cyber event resulting in a potential loss of up to $2,326,000. The Company has launched a full investigation of the event which remains ongoing and is pursuing recovery of its funds through all legally available means as appropriate, in order to mitigate the loss amount to the fullest extent possible. A criminal complaint has been filed with the public prosecutor’s office in Türkiye which is the first step to recovery whether it be through a criminal or civil process, or both. EMX is also working with its attorneys in Mexico and is currently preparing a civil complaint in the jurisdiction in which the funds were received and withdrawn. An extensive investigation by a reputable third party security firm yielded that there was no intrusion into EMX systems nor its network in its findings. EMX continues to vigorously pursue all remedies available to it in pursuit of recovery all or a part of the funds.

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 on North America and Latin America, except for Caserones. Consulting Chief Mining Engineer Mark S. Ramirez, SME Registered Member #04039495, a Qualified Person as defined by NI 43-101 and consultant to the Company, has reviewed, verified and approved the above technical disclosure with respect to the Caserones Mine. Eric P. Jensen, CPG, a Qualified Person as defined by NI 43-101 and employee of the Company, has reviewed, verified, and approved the above technical disclosure on Europe, Türkiye and Australia.

Shareholder Information – The Company’s filings for the year are available on SEDAR+ at www.sedarplus.ca, on the U.S. Securities and Exchange Commission’s EDGAR website at www.sec.gov, and on EMX’s website at www.EMXroyalty.com. Financial results were prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board.

About EMX – EMX is a precious, and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.

For further information contact:

David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com

Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Statements

This news release may contain “forward looking information” or “forward looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding the future price of copper, gold and other metals, the estimation of mineral reserves and resources, realization of mineral reserve estimates, the timing and amount of estimated future production, the Company’s growth strategy and expectations regarding the guidance for 2024 and future outlook, including revenue and GEO estimates, refinancing outstanding debt and the timing thereof, the acquisition of additional royalty interests and partnerships, the purchase of securities pursuant to the Company’s NCIB or other statements that are not statements of fact. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects,” “anticipates,” “believes,” “plans,” “projects,” “estimates,” “assumes,” “intends,” “strategy,” “goals,” “objectives,” “potential,” “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements are based on a number of material assumptions, including those listed below, which could prove to be significantly incorrect, including disruption to production at any of the mineral properties in which the Company has a royalty, or other interest; estimated capital costs, operating costs, production and economic returns; estimated metal pricing (including the estimates from the CIBC Global Mining Group’s Consensus Commodity Price Forecasts published on January 2, 2024), metallurgy, mineability, marketability and operating and capital costs, together with other assumptions underlying the Company’s resource and reserve estimates; the expected ability of any of the properties in which the Company holds a royalty, or other interest to develop adequate infrastructure at a reasonable cost; assumptions that all necessary permits and governmental approvals will remain in effect or be obtained as required to operate, develop or explore the various properties in which the Company holds an interest; and the activities on any on the properties in which the Company holds a royalty, or other interest will not be adversely disrupted or impeded by development, operating or regulatory risks or any other government actions.

Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, failure to maintain or receive necessary approvals, changes in business plans and strategies, market conditions, share price, best use of available cash, copper, gold and other commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operational and development risks relating to the parties which produce the gold or other commodity the Company will purchase, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global economic climate, dilution, share price volatility and competition.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the impact of general business and economic conditions, the absence of control over mining operations from which the Company will receive royalties from, and risks related to those mining operations, including risks related to international operations, government and environmental regulation, actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, risks in the marketability of minerals, fluctuations in the price of gold and other commodities, fluctuation in foreign exchange rates and interest rates, stock market volatility, as well as those factors discussed in the Company’s MD&A for the quarter ended June 30, 2024, and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained or incorporated by reference, except in accordance with applicable securities laws.

Future-Oriented Financial Information

This news release may contain future-oriented financial information (“FOFI”) within the meaning of Canadian securities legislation, about prospective results of operations, financial position, GEOs and anticipated royalty payments based on assumptions about future economic conditions and courses of action, which FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and has been prepared based on a number of assumptions including the assumptions discussed under the headings above entitled “2024 Guidance”, “Outlook” and “Forward-Looking Statements” and assumptions with respect to the future metal prices, the estimation of mineral reserves and resources, realization of mineral reserve estimates and the timing and amount of estimated future production. Management does not have, or may not have had at the relevant date, or other financial assumptions which may have been used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects are not, or may not have been at the relevant date of the FOFI, objectively determinable.

Importantly, the FOFI contained in this news release are, or may be, based upon certain additional assumptions that management believes to be reasonable based on the information currently available to management, including, but not limited to, assumptions about: (i) the future pricing of metals, (ii) the future market demand and trends within the jurisdictions in which the Company or the mining operators operate, and (iii) the operating cost and effect on the production of the Company’s royalty partners. The FOFI or financial outlook contained in this news release do not purport to present the Company’s financial condition in accordance with IFRS, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in any such document, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as at the applicable date. However, because this information is highly subjective and subject to numerous risks including the risks discussed under the heading above entitled “Forward-Looking Statements” and under the heading “Risk Factors” in the Company’s public disclosures, FOFI or financial outlook within this news release should not be relied on as necessarily indicative of future results.

Non-IFRS Financial Measures

The Company has included certain non-IFRS financial measures in this press release, as discussed below. EMX believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. These non-IFRS financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to its composition, excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio, fraction, percentage or similar representation. A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, fraction, percentage or similar representation, (b) has a non-IFRS financial measure as one or more of its components, and (c) is not disclosed in the financial statements.

The following table outlines the non-IFRS financial measures, their definitions, the most directly comparable IFRS measures and why the Company use these measures.

Non-IFRS financial measure		Definition		Most directly comparable IFRS measure		Why we use the measure and why it is useful to investors
Adjusted revenue and other income		Defined as revenue and other income including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones.		Revenue and other income		The Company believes these measures more accurately depict the Company’s revenue related to operations as the adjustment is to account for revenue from a material asset
Adjusted royalty revenue		Defined as royalty revenue including the Company’s share of royalty revenue related to the Company’s effective royalty on Caserones.		Royalty revenue
Adjusted cash flows from operating activities		Defined as cash flows from operating activities plus the cash distributions related to the Company’s effective royalty on Caserones.		Cash flows from operating activities		The Company believes this measure more accurately depicts the Company’s cash flows from operations as the adjustment is to account for cash flows from a material asset.
Gold equivalent ounces (GEOs)		GEOs is a non-IFRS measure that is based on royalty interests and calculated on a quarterly basis by dividing adjusted royalty revenue by the average gold price during such quarter. The gold price is determined based on the LBMA PM fix. For periods longer than one quarter, GEOs are summed for each quarter in the period.		Royalty revenue		The Company uses this measure internally to evaluate our underlying operating performance across the royalty portfolio for the reporting periods presented and to assist with the planning and forecasting of future operating results.
Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA		EBITDA represents net earnings or loss for the period before income tax expense or recovery, depreciation and amortization, finance costs. Adjusted EBITDA adds all revenue from the Caserones Royalty less any equity income from the equity investment in the Caserones Royalty. Additionally, it removes the effects of items that do not reflect our underlying operating performance and are not necessarily indicative of future operating results. These may include: share based payments expense; unrealized and realized gains and losses on investments; write-downs of assets; impairments or reversals of impairments; foreign exchange gains or losses; and other non-cash or non-recurring expenses or recoveries.		Earnings or loss before income tax		The Company believes EBITDA and adjusted EBITDA are widely used by investors and analysts as useful indicators of our operating performance, our ability to invest in capital expenditures, our ability to incur and service debt and also as a valuation metric.

Reconciliation of Adjusted Revenue and Other Income and Adjusted Royalty Revenue:

During the three months ended June 30, 2024 and 2023, the Company had the following sources of revenue and other income:

(In thousands of dollars)		Three months ended June 30,						Six months ended June 30,
		2024			2023			2024			2023
Royalty revenue	$	5,083		$	2,059		$	10,687		$	3,776
Option and other property income		492			1,011			680			1,700
Interest income		430			338			878			674
Total revenue and other income	$	6,005		$	3,408		$	12,245		$	6,150

The following is the reconciliation of adjusted revenue and other income and adjusted royalty revenue:

		Three months ended June 30,						Six months ended June 30,
(In thousands of dollars)		2024			2023			2024			2023
Revenue and other income	$	6,005		$	3,408		$	12,245		$	6,150
SLM California royalty revenue	$	6,442		$	7,685		$	11,247		$	13,584
The Company’s ownership %		42.7			40.0			42.7			40.0
The Company’s share of royalty revenue	$	2,753		$	3,206		$	4,806		$	5,432
Adjusted revenue and other income	$	8,758		$	6,614		$	17,051		$	11,582
Royalty Revenue	$	5,083		$	2,059		$	10,687		$	3,776
The Company’s share of royalty revenue		2,753			3,206			4,806			5,432
Adjusted royalty revenue	$	7,836		$	5,265		$	15,493		$	9,208

Reconciliation of GEOs:

		Three months ended June 30,						Six months ended June 30,
(In thousands of dollars)		2024			2023			2024			2023
Adjusted Royalty Revenue	$	7,836		$	5,265		$	15,493		$	9,208
Average gold price per ounce	$	2,338		$	1,978		$	2,198		$	1,939
Total GEOs		3,352			2,662			7,047			4,750

Reconciliation of Adjusted Cash Flows from Operating Activities:

		Three months ended June 30,						Six months ended June 30,
(In thousands of dollars)		2024			2023			2024			2023
Cash provided by operating activities	$	(514	)	$	(1,002	)	$	513		$	(4,335	)
Caserones royalty distributions		1,855			2,454			3,489			3,352
Adjusted cash flows from operating activities	$	1,341		$	1,452		$	4,002		$	(983	)

Reconciliation of EBITDA and Adjusted EBITDA:

		Three months ended June 30,						Six months ended June 30,
(In thousands of dollars)		2024			2023			2024			2023
Income (loss) before income taxes	$	(3,430	)	$	(3,095	)	$	(5,665	)	$	(6,740	)
Finance expense		1,080			1,270			2,145			2,511
Depletion, depreciation, and direct royalty taxes		1,369			790			3,788			1,642
EBITDA	$	(981	)	$	(1,035	)	$	268		$	(2,587	)
Attributable revenue from Caserones royalty		2,753			3,206			4,806			5,432
Equity income from investment in Caserones royalty		(1,411	)		(1,340	)		(2,208	)		(2,255	)
Share-based payments		1,354			132			1,543			225
Loss (gain) on revaluation of investments		(1,142	)		1,383			(1,226	)		709
Loss (gain) on sale of marketable securities		1,535			17			1,946			459
Foreign exchange loss (gain)		139			797			255			965
Gain on revaluation of derivative liabilities		66			(188	)		107			398
Loss on revaluation of receivables		–			(124	)		–			(124	)
Other losses		2,326			–			2,326			–
Impairment		–			–			45			–
Adjusted EBITDA	$	4,639		$	2,848		$	7,862		$	3,222

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¹ Refer to the “Non-IFRS financial measures” section below or on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure. These financial measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
² Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure.
³ Refer to the “Non-IFRS financial measures” section below and on page 29 of the Q2 2024 MD&A for more information on each non-IFRS financial measure.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219519

Vancouver, British Columbia–(Newsfile Corp. – August 8, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce the execution of an exploration and option agreement for its Sulitjelma Project in Norway to Alpha Future Funds S.C.S, a private Luxembourg based company (“Alpha”). The agreement provides EMX with a cash payment and work commitments during a one-year option period, and upon exercise of the option, EMX will receive additional deferred option payments, advance royalty payments, milestone payments and a 2% NSR royalty.

The Sulitjelma project is a past producer of copper-rich polymetallic mineralization from a cluster of volcanogenic massive sulfide (“VMS”) style deposits in the greater Sulitjelma district of north-central Norway. Alpha is a well-capitalized investment fund with its own technical team that seeks to revitalize the Sulitjelma district through additional investment and exploration. Alpha is also reviewing other EMX projects throughout the region for additional acquisition opportunities.

Commercial Terms Overview. EMX will receive US$50,000 upon execution of the agreement, and Alpha can acquire a 100% interest in the project by satisfying specified work commitments by the end of the first anniversary of the agreement. Upon exercising the option Alpha will:

• Make additional cash payments to EMX as deferred option payments.
• Spend a cumulative of $4,000,000 on the project by the 5^th anniversary of the agreement.
• Pay annual advance royalty payments commencing after the deferred option payments are complete.
• Grant EMX an uncapped 2% NSR royalty on the project.
• Deliver certain milestone payments tied to anniversary dates and the commencement of commercial production.

Overviews of the project. The Sulitjelma polymetallic project in Norway is located in the early Paleozoic VMS belt in north-central Norway, which saw numerous districts and mines in operation from the 1600’s through the 1990’s.

Sulitjelma District, Central Norway: The Sulitjelma VMS district was discovered in 1858 and was mined continuously from 1891-1991. The Sulitjelma mines were some of the last operating base metal mines in Norway and one of its most significant historic mining areas. VMS style mineralization occurs along a trend that extends for over 20 kilometers and is developed along multiple stratigraphic horizons and structurally repeated sections. The district produced over 25 million tonnes averaging 1.84% copper, 0.86% zinc, 10 grams per tonne silver and 0.25 grams per tonne gold¹. Significant historical resources were left unmined at the time of closure in the early 1990’s.

The district has seen very little work since the mines closed. Reinterpretation of airborne geophysical surveys, including a Versatile Time Domain Electromagnetics (VTEM) survey collected in 2014, highlighted multiple conductive anomalies along the main trend of mineralization that have not yet been drill tested, and EMX geologists have found outcropping expressions of VMS style mineralization, also along trend, that have not been developed or drill tested.

Over the past few years EMX has compiled and digitized the available historical data to create 3D models of the historical mine workings on the property. EMX also conducted extensive soil sampling campaigns and identified drill targets for the next phase of exploration. These targets include projections of mineralization down dip and along strike of the historic mine workings as well as newly identified electromagnetic (“EM”) anomalies. Additionally, EMX recognized that the VMS horizon appears to be repeated in fold limbs to the west of the original property position, which has since been expanded.

This transaction is another example of the execution of EMX’s business model in providing turn-key and drill ready exploration projects to its partner companies in exchange for royalty interests.

More information on the Projects can be found at www.EMXroyalty.com.

Nearby Mines and Deposits. The mines and deposits discussed in this news release provide context for EMX’s projects, which occur in similar geologic settings, but this is not necessarily indicative that the Company’s projects host similar tonnages or grades of mineralization.

Dr. Eric P. Jensen, CPG, a Qualified Person as defined by National Instrument 43-101 and employee of the Company, has reviewed, verified and approved the disclosure of the technical information contained in this news release.

About EMX – EMX is a precious, and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.

For further information contact:

David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com

Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Statements

This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding perceived merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital expenditures, timelines, strategic plans, market prices for precious and base metal, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to unavailability of financing, failure to identify commercially viable mineral reserves, fluctuations in the market valuation for commodities, difficulties in obtaining required approvals for the development of a mineral project, increased regulatory compliance costs, expectations of project funding by joint venture partners and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended March 31, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.

Figure 1. Location map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1508/219173_497e9a07947df961_002full.jpg

Figure 2. Mines and Trends of Mineralization

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/1508/219173_497e9a07947df961_003full.jpg

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¹Historical production data from the Geological Survey of Norway (NGU) Ore Database, Deposit Area 1841-024, updated Dec 18, 2017.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219173

Casa Grande, AZ and Toronto, ON, July 16, 2024 – Arizona Sonoran Copper Company Inc. (TSX:ASCU) (“ASCU” or the “Company”), releases its updated Mineral Resource Estimate (“MRE”) for the Cactus brownfield copper project, located 45 miles south of Phoenix, Arizona (see FIGURES 1-3). The updated and expanded MRE is inclusive of a seven-month drilling program targeting the MainSpring property, which was completed in April 2024. The Cactus Project is wholly owned and located on private land in Arizona with direct road and rail access, infrastructure onsite, is at an advanced permitting stage, and has permitted access to onsite water wells. Highlights and key changes from the updated MRE are listed below.

Highlights:

• Updated total Cactus Project Mineral Resource Estimate (“MRE”) including Primary Mineral Resources:
  • Measured and Indicated (“M&I”) 632.6 million short tons @ 0.58% Total Copper (“CuT”) for 7.3 billion pounds (“lbs”) of copper
  • Inferred 474.0 million short tons @ 0.41% CuT for 3.8 billion lbs of copper
• Key Changes:
  • Confirms Parks/Salyer and MainSpring as one deposit, renamed to “Parks/Salyer”
    • Parks/Salyer mineral resource contains 339.0 million short tons @ 0.71% CuT for 4.8 billion lbs of copper in the M&I category and 299.3 million short tons @ 0.43% CuT for 2.6 billion lbs of copper in the Inferred category
  • Parks/Salyer amenable as an open pit within the pending Preliminary Economic Assessment
    • New Parks/Salyer mineral resource dimensions are 6,400 feet (“ft”)(1,950 meters (“m”) by 3,000 ft (915 m) to a maximum depth of 2,350 ft (716 m) below surface
  • 1,904% increase to the Measured Category with inclusion of initial Measured mineral resources at Parks/Salyer, 26% increase to the total M&I and a 60% increase in total Inferred resource, with no change to cut-off grade criteria or underlying price and cost assumptions
    • 42% increase of M&I mineral resources at Parks/Salyer attributed to success of measured infill drilling program, reporting of open pit resources, and reporting based on total copper pounds
    • Parks/Salyer infill drilling (56,907 ft | 17,345 m) converted 55.9 M short tons @ 1.03% CuT for 1.2 billion lbs of copper reported to the measured category
    • 60% increase to the Inferred mineral resources attributed to expansion of Parks/Salyer mineral resource onto the MainSpring property and reporting based on total copper pounds
    • 7-month drilling program at MainSpring (49,193 ft | 14,994 m) delivered 244.9 M short tons @ 0.39% CuT for 1.9 Billion lbs of copper reported to the Inferred mineral resource

Table 1 below reports the July 11, 2024, Cactus Project MRE, containing the combined Parks/Salyer, Cactus West, Cactus East, and Stockpile mineral resource areas. Each mineral resource area is broken out individually in Table 4. Mineral resources defined within this July 11, 2024, the Cactus Project MRE will be used to form the basis of the ASCU Preliminary Economic Assessment (“PEA”), on track for release in early Q3 2024.

TABLE 1: Cactus Project MRE, Contained Copper Separated into Total Copper and Soluble Copper

Material Type	Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Measured
Total Leachable	55,200	0.94	0.79	1,032,200	873,800
Total Primary	12,300	0.51	0.05	124,400	13,400
Total Measured	67,500	0.86	0.66	1,156,500	887,200
Indicated
Total Leachable	414,800	0.60	0.53	4,965,000	4,365,700
Total Primary	150,400	0.39	0.04	1,173,300	126,000
Total Indicated	565,200	0.54	0.40	6,138,200	4,491,700
M&I
Total Leachable	470,000	0.64	0.56	5.997,200	5,239,500
Total Primary	162,700	0.40	0.04	1,297,600	139,400
Total M&I	632,600	0.58	0.43	7,294,800	5,378,900
Inferred
Total Leachable	299,600	0.43	0.38	2,572,400	2,262,800
Total Primary	174,500	0.36	0.04	1,267,500	124,700
Total Inferred	474,000	0.41	0.25	3,839,900	2,387,500

NOTES:
1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons.
2. Stockpile resource estimates have an effective date of 1st March, 2022, Cactus mineral resource estimates have an effective date of 29th April, 2022, Parks/Salyer-MainSpring mineral resource estimates have an effective date of 11th July, 2024. All mineral resources use a copper price of US$3.75/lb.
3. Technical and economic parameters defining mineral resource pit shells: mining cost US$2.43/t; G&A US$0.55/t, 10% dilution, and 44°-46° pit slope angle.
4. Technical and economic parameters defining underground mineral resource: mining cost US$27.62/t, G&A US$0.55/t, and 5% dilution. Underground mineral resources are only reported for material located outside of the open pit mineral resource shells. Designation as open pit or underground mineral resources are not confirmatory of the mining method that may be employed at the mine design stage.
5. Technical and economic parameters defining processing: Oxide heap leach (HL) processing cost of US$2.24/t assuming 86.3% recoveries, enriched HL processing cost of US$2.13/t assuming 90.5% recoveries, sulphide mill processing cost of US$8.50/t assuming 92% recoveries. HL selling cost of US$0.27/lb; Mill selling cost of US$0.62/lb.
6. Royalties of 3.18% and 2.5% apply to the ASCU properties and state land respectively. No royalties apply to the MainSpring property.
7. Variable cut-off grades were reported depending on material type, potential mining method, potential processing method, and applicable royalties. For ASCU properties – Oxide open pit or underground material = 0.099% or 0.549% TSol respectively; enriched open pit or underground material = 0.092% or 0.522% TSol respectively; primary open pit or underground material = 0.226% or 0.691% CuT respectively.For state land property – Oxide open pit or underground material = 0.098 % or 0.545% TSol respectively; enriched open pit or underground material = 0.092% or 0.518% TSol respectively; primary openpit or underground material = 0.225% or 0.686% CuT respectively.For MainSpring properties – Oxide openpit or underground material = 0.096% or 0.532% TSol respectively; enriched open pit or underground material = 0.089% or 0.505% TSol respectively; primary open pit or underground material = 0.219% or 0.669% CuT respectively. Stockpile cutoff = 0.095% TSol.
8. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, sociopolitical, marketing, or other relevant factors.
9. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there is insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource; it is uncertain if further exploration will result in upgrading them to an indicated or measured classification.
10. Totals may not add up due to rounding.

George Ogilvie, Arizona Sonoran Copper Company President and CEO commented, “The new Parks/Salyer deposit, inclusive of MainSpring could be transformational for the Company as we foresee the opportunity to right size a larger operation and rescope Parks/Salyer to an open pit mine. The pending result would lead to reduced mining execution risks and lowered operating costs which could manifest themselves in improved Project economics.  The key difference in the larger mineral resource used for the pending PEA, relates to the MainSpring property acquisition and subsequent inferred drilling program identifying the continuation of near surface mineralization south of Parks/Salyer.”

Doug Bowden, Arizona Sonoran Copper Company VP Exploration stated, “Our Cactus Project is a successful copper porphyry growth story resulting from an aggressive exploration program. Our mineral resource journey began with our initial PEA in 2021, and continuously expanded outward from the Cactus Pit area to include Parks/Salyer and most recently MainSpring within the 5.5 km mine trend. The Parks/Salyer discovery includes significant quantities of high-grade (+1.00% CuT) copper, similar to the grades in Cactus East (as shown in FIGURES  2 and 3). Through systematic step out and infill drilling following our first mineral resource in 2021 to today’s update, our Cactus Project MRE indicates an increase to the M&I by an impressive 353%, from 1.61 Billion lbs to 7.29 Billion lbs of copper, while the inferred mineral resources increased 94%, from 1.98 Billion lbs to 3.84 Billion lbs. Lastly, these mineral resource areas have responded favorably and impressively to infill drilling with a consistently high conversion rate into higher resource classifications and will look forward to future infill programs as we move through the technical studies.”

Cactus Mineral Resources Estimate
The Parks/Salyer mineral resources as shown in FIGURE 3, inclusive of MainSpring, indicate 339.0 M short tons @ 0.71% CuT in the M&I category and 299.2 M short tons @ 0.43% CuT in the Inferred Category. Notably, Parks/Salyer is mostly contained within an optimized resource open pit shell indicating the rescoped potential of open pit mining of the deposit with the inclusion of shallower mineralization located on the MainSpring property. Parks/Salyer mineral resources were calculated with a cutoff date of March 31, 2024. There are no material changes to the Cactus East, West and Stockpile deposits as reported within the FEB 21, 2024 PFS.

For the purposes of the MRE, Cactus East reports as open pit mineral resources in compliance with Reasonable Prospects for Eventual Economic Extraction (“RPEEE”). For the purposes of the pending PEA, Cactus East is expected to be exploited as an underground operation.

Table 2 below reports a direct like–for-like comparison of the updated July 11, 2024, MRE, to the MRE comprising the Prefeasibility Study (“PFS”) MRE and illustrates a significant change to the Measured (+1,900%) and Inferred (+60%) categories, as it relates to successful expansion and infill programs at Parks/Salyer, including the MainSpring Property. The Table below calculates a combination of the Soluble Copper grades and Total Copper grades based on the leachable (oxides and enriched) zones, and the primary sulphides, respectively, going forward, mineral resources will calculate both the contained Total Copper and Soluble Copper inventory. Table 2 uses the same notes and assumptions as Table 1.

Table 2: The Cactus Project Mineral Resource Estimate, as of July 11, 2024, as Compared to August 31, 2023

	PREVIOUS MINERAL RESOURCE (As of August 31, 2023)			UPDATED MINERAL RESOURCE (As of July 11, 2024)			VARIANCE
Material Type	Tons kt	Grade Cu%¹	Contained Cu k lbs	Tons kt	Grade Cu%¹	Contained Cu k lbs	Cu Content %
Leachable	9,100	0.23¹	41,900	55,200	0.79¹	873,800	1,985%
Primary	1,300	0.32	8,000	12,300	0.51	124,400	1,455%
Total Measured	10,400	0.24	49,800	67,500	0.74	998,200	1,904%
Leachable	348,500	0.63¹	4,387,200	414,800	0.53¹	4,365,700	0%
Primary	86,800	0.43	737,000	150,400	0.39	1,173,300	59%
Total Indicated	435,300	0.59	5,124,200	565,200	0.49	5,539,000	8%
Leachable	357,600	0.62¹	4,429,000	470,000	0.56¹	5,239,500	18%
Primary	88,000	0.42	745,000	162,700	0.40	1,297,600	74%
Total M&I	445,700	0.58	5,174,000	632,600	0.52	6,537,100	26%
Leachable	107,700	0.61¹	1,307,900	299,600	0.38¹	2,262,800	73%
Primary	126,200	0.36	900,000	174,500	0.36	1,267,500	41%
Total Inferred	233,800	0.47	2,207,900	474,000	0.37	3,530,300	60%

NOTES: refer to TABLE 1
1 Grade shown is Soluble Copper (Cu TSol)

Drilling programs
The updated Cactus Project MRE is supported by a systematic drilling program targeting MainSpring, the near surface southern extension of the Parks/Salyer deposit, and infill to measured drilling at Parks/Salyer, within the 5.5 kilometre (“km”) (~3.5 mile (“mi”)) mine trend. Mineral resources were classified using data of 125 ft (38 m) drill spacing for Measured, 250 ft (76 m) drill spacing for Indicated and 500 ft (~152 m) drill spacing for Inferred. The in-ground mineral resources were calculated using 435 total drillholes including 161 new holes drilled into the Cactus West and East deposits since 2019 and 159 new holes drilled into the Parks/Salyer deposits since 2020. The Stockpile mineral resource was calculated using 514 new holes drilled into the stockpile on a regular grid since 2021. The isolated MainSpring mineral resource estimate containing 244.9 M short tons @ 0.39% CuT, is shown in TABLE 3 below, while each deposit is broken out separately within TABLE 4.

TABLE 3: MainSpring Property Resource contained within New Parks/Salyer Mineral Resource

Material Type	Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Inferred
Total Leachable	200,100	0.39	0.34	1,562,700	1,370,300
Total Primary	44,800	0.38	0.04	344,000	33,100
Total Inferred	244,900	0.39	0.29	1,906,700	1,403,500

NOTES: refer to TABLE 1

TABLE 4: Cactus Project Mineral Resources by Resource Area

Material Type		Tons kt	Grade CuT %	Grade Cu Tsol %	Contained Total Cu (k lbs)	Contained Cu Tsol (k lbs)
Measured
Leachable	Parks Salyer O/P	45,000	1.09	0.92	981,200	828,700
	Parks Salyer U/G	5	1.30	0.92	100	100
	Cactus O/P	10,200	0.25	0.22	50,800	45,000
	Cactus U/G	n/a
	Stockpile	n/a
Total Leachable		55,200	0.93	0.79	1,032,100	873,800
Primary	Parks Salyer O/P	10,900	0.53	0.06	115,500	12,200
	Parks Salyer U/G	40	0.77	0.07	700	100
	Cactus O/P	1,300	0.32	0.04	8,200	1,100
	Cactus U/G	n/a
	Stockpile	n/a
Total Primary		12,300	0.51	0.05	124,400	13,400
Total Measured		67,500	0.86	0.66	1,156,500	887,200
Indicated
Leachable	Parks Salyer O/P	201,300	0.75	0.66	3,027,000	2,671,100
	Parks Salyer U/G	1,100	0.96	0.85	21,400	18,900
	Cactus O/P	131,000	0.55	0.49	1,446,100	1,277,000
	Cactus U/G	10,200	1.04	0.89	213,100	181,100
	Stockpile	71,100	0.18	0.15	257,400	217,600
Total Leachable		414,800	0.60	0.53	4,965,000	4,365,700
Primary	Parks Salyer O/P	80,400	0.42	0.04	680,600	69,200
	Parks Salyer U/G	100	0.77	0.12	1,200	200
	Cactus O/P	68,300	0.34	0.03	465,800	45,100
	Cactus U/G	1,600	0.81	0.36	25,700	11,500
	Stockpile	n/a
Total Primary		150,400	0.39	0.04	1,173,300	126,000
Total Indicated		565,200	0.54	0.40	6,138,200	4,491,700
Measured & Indicated
Leachable	Parks Salyer O/P	246,300	0.81	0.71	4,008,200	3,499,800
	Parks Salyer U/G	1,100	0.98	0.86	21,500	19,000
	Cactus O/P	141,200	0.53	0.47	1,496,900	1,322,000
	Cactus U/G	10,200	1.04	0.89	213,100	181,100
	Stockpile	71,100	0.18	0.15	257,400	217,600
Total Leachable		470,000	0.64	0.56	5,997,200	5,239,500
Primary	Parks Salyer O/P	91,300	0.44	0.04	796,100	81,400
	Parks Salyer U/G	100	0.95	0.15	1,900	300
	Cactus O/P	69,600	0.34	0.03	474,000	46,200
	Cactus U/G	1,600	0.80	0.36	25,700	11,500
	Stockpile	n/a
Total Primary		162,700	0.40	0.04	1,297,600	139,400
Total M&I		632,600	0.58	0.43	7,294,800	5,378,900
Inferred
Leachable	Parks Salyer O/P	234,500	0.42	0.38	1,990,200	1,767,500
	Parks Salyer U/G	9,600	0.84	0.76	161,200	146,300
	Cactus O/P	50,400	0.34	0.28	344,600	286,900
	Cactus U/G	3,900	0.94	0.77	72,800	59,100
	Stockpile	1,200	0.15	0.13	3,600	3,000
Total Leachable		299,600	0.43	0.38	2,572,400	2,262,800
Primary	Parks Salyer O/P	54,100	0.39	0.04	427,300	41,000
	Parks Salyer U/G	1,000	0.82	0.26	16,700	5,300
	Cactus O/P	117,800	0.34	0.03	798,700	68,300
	Cactus U/G	1,500	0.82	0.33	24,900	10,200
	Stockpile	n/a
Total Primary		174,500	0.36	0.04	1,267,600	124,800
Total Inferred		474,000	0.41	0.25	3,839,900	2,387,500

NOTES: refer to TABLE 1

Cactus Project Mineral Resource Modelling
The geological modelling, statistical analysis, and resource estimation in respect of the Cactus Project MRE were prepared by the ASCU resource team and by Allan Schappert – CPG #11758, who is a qualified person as defined by National Instrument 43-101– Standards of Disclosure for Mineral Projects (“NI 43-101”).

The Cactus Project MRE updates are based upon updated drilling data and interpretations. The Cactus Mineral Resource model was developed in Vulcan. Drilling data is supported by industry standard quality assurance and quality control programs, with quality control sampling comprising preparation blanks, certified reference materials, and field and pulp duplicate analyses. Review of the QA/QC data indicates it is of a quality suitable for use in resource estimation.

The mineralized domains are consistent with domaining for porphyry copper systems. Mineralized domains represent combinations of rock type and copper mineral zonation associated with secondary copper enrichment weathering processes. The main mineral zones are leached, oxide, enriched, and primary. Mineral zones are determined by logging and the assay attributes of sequential copper analyses.

Physical density measurements have been undertaken across the deposits, both historically by ASARCO, and more recently by ASCU. Density measurements on inground deposits use the wet / dry weight method and comprise 3,372 samples for Cactus and 143 samples for Parks/Salyer. Due to the unconsolidated nature of the stockpile material, physical bulk density measurements were attained by weight and volume calculations. Four test holes were excavated from which the material removed was dried and weight and the volume of each hole calculated.

Copper grades were estimated using Ordinary Kriging, using 20 ft (6.1 m) composites and top cutting determined by log normal probability plots on a per domain basis. Grade estimates were validated using visual and statistical methods including statistical distribution comparisons, visual comparison against the drilling data on sections, swath plots comparing block grades trends against de-clustered composites, and by smoothing checks using change of support. The effective date of the Cactus Project MRE is July 11, 2024. The Cactus Project MRE will form the basis of a PEA technical report prepared in accordance with NI 43-101, and prepared by M3 Engineering, which will be filed on SEDAR+ under the Company’s issuer profile within 45 days of this news release and will also be available at such time on the Company’s website. The PFS will be superseded in all respects once the Company has publicly disclosed the PEA.

Quality Assurance / Quality Control
Drilling completed on the project between 2020 and 2024 was supervised by on-site ASCU personnel who prepared core samples for assay and implemented a full QA/QC program using blanks, standards, and duplicates to monitor analytical accuracy and precision. The samples were sealed on site and shipped to Skyline Laboratories in Tucson AZ for analysis. Skyline’s quality control system complies with global certifications for Quality ISO9001:2008.

Scientific and technical information contained in this news release have been reviewed and verified by Allan Schappert – CPG #11758, who is a qualified person as defined by NI 43-101.

Links from the Press Release
Figures: https://arizonasonoran.com/projects/cactus-mine-project/press-release-images/
February 21, 2024: https://arizonasonoran.com/news-releases/arizona-sonoran-announces-a-positive-pre-feasibility-study-for-the-cactus-mine-project-with-a-us-509m-post-tax-npv-and-55-kstpa/

Neither the TSX nor the regulating authority has approved or disproved the information contained in this news release.

About Arizona Sonoran Copper Company (www.arizonasonoran.com | www.cactusmine.com)
ASCU’s objective is to become a mid-tier copper producer with low operating costs and to develop the Cactus Project that could generate robust returns for investors and provide a long term sustainable and responsible operation for the community and all stakeholders. The Company’s principal asset is a 100% interest in the brownfield Cactus Project (former ASARCO, Sacaton mine) which is situated on private land in an infrastructure-rich area of Arizona. The Company is led by an executive management team and Board which have a long-standing track record of successful project delivery in North America complemented by global capital markets expertise.

For more information:

Alison Dwoskin, Director, Investor Relations
647-233-4348
adwoskin@arizonasonoran.com

George Ogilvie, President, CEO and Director
416-723-0458
gogilvie@arizonasonoran.com

Forward-Looking Statements
This news release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. All information, other than historical fact, are forward-looking information. Generally, statements containing forward-looking information or statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. Forward looking information includes, but is not limited to, the Company’s future operations, future exploration and development activities or other development plans, the potential of the Cactus Project (including the Parks/Salyer deposit), timing of economic studies and mineral resource estimates including the filing of the technical report in respect of the Cactus Project MRE, the results (if any) of further exploration work to define and or upgrade mineral resources and reserves at the Company’s properties; the anticipated exploration, drilling, development, construction and other activities of ASCU and the result of such activities; the mineral resources and mineral reserves estimates of the Cactus Project including the Cactus Project MRE (and the assumptions underlying such estimates); the ability of exploration work (including drilling) to accurately predict mineralization; the ability of management to understand the geology and potential of the Cactus Project; the completion and timing for the filing of the technical report in respect of the Cactus Project MRE; the timing and ability of the Company to produce a preliminary economic assessment (if at all); the scope of any future technical reports and studies conducted by ASCU; the ability to realize upon mineralization in a manner that is economic; the impact of bringing the Parks/Salyer deposit including the MainSpring property into the mine plan; , and corporate and technical objectives. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of ASCU to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties that could affect the outcome include, among others: future prices and the supply of metals; risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; the results of drilling; the ability to access capital on terms acceptable to the Company necessary to incur the expenditures required to retain and advance the properties; changes in exploration, development or mining plans due to exploration results and changing budget priorities of the Company or its joint venture partners; environmental liabilities (known and unknown); general business, economic, competitive, political and social uncertainties; results of exploration programs or further exploration work; the ability to continue exploration and development of the ASCU properties; changes in any of the assumptions underlying the Cactus Project MRE; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; or delays in obtaining governmental approvals, projected cash operating costs, failure to obtain any required consents, permits or approvals; and the additional risks described in ASCU’s most recently filed Annual Information Form, annual and interim management’s discussion and analysis, copies of which are available on SEDAR+ (www.sedarplus.ca) under ASCU’s issuer profile.

Although ASCU has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The Company considers its assumptions to be reasonable based on information currently available but cautions the reader that their assumptions regarding future events, many of which may be beyond the control of the Company, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affects the Company and its operations. Accordingly, readers should not place undue reliance on forward-looking information and are urged to carefully consider the foregoing factors as well as other uncertainties and risks outlined in the Company’s public disclosure record. Forward-looking statements contained herein are made as of the date of this news release and ASCU disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

V

ancouver, British Columbia–(Newsfile Corp. – June 20, 2024) – EMX Royalty Corporation (NYSE American: EMX) (TSXV: EMX) (FSE: 6E9) (the “Company” or “EMX“) is pleased to announce it has entered into a credit agreement (the “Credit Agreement“) with a wholly-owned subsidiary (the “Lender“) of Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV) (“Franco-Nevada“) to borrow $35 million (the “Loan“). The Company will use the proceeds of the Loan to repay the $34.66 million outstanding balance of the loan owed to Sprott Private Resource Lending II (Collector), LP (“Sprott“) and for general working capital purposes. The Company anticipates that the funding of the Loan will take place in July 2024.

The Company is pleased to further develop its working relationship with Franco-Nevada. In addition to the Loan arrangement, EMX and Franco-Nevada have jointly syndicated royalty purchases (e.g., Caserones) and are actively engaged in a joint venture seeking new royalty financing opportunities. Franco-Nevada is also a key EMX shareholder.

Credit Agreement – The Loan is structured as a $35 million senior secured term loan facility which matures on July 1, 2029. Interest is payable monthly at a rate equal to the three-month SOFR (i.e., Secured Overnight Financing Rate) plus the applicable margin based on the ratio of the Company’s net debt to adjusted EBITDA (see table below), adjusted quarterly.

Ratio of Net Debt / Adjusted EBITDA:	Applicable Interest Rate (per annum):
< 1.00:1	Term SOFR plus 300 basis points
>= 1.00:1 and <1.50:1	Term SOFR plus 325 basis points
>= 1.50:1 and <2.00:1	Term SOFR plus 350 basis points
>= 2.00:1 and <3.00:1	Term SOFR plus 375 basis points
>= 3.00:1	Term SOFR plus 425 basis points

On closing, the Company will pay a commitment fee equal to 1% of the principal amount of the Loan. During each year, up to $10 million of the Loan may be voluntarily prepaid without penalty, on a cumulative basis.

The Loan will be secured by a general security agreement over the assets of EMX and share pledges by certain of EMX’s subsidiaries, with the Lender retaining the ability, at any time, to designate certain material subsidiaries of the Company to be guarantors of the Loan and provide similar security. Certain covenants under the Credit Agreement, including restrictions on incurring indebtedness and encumbrances, shall apply to the Company and its subsidiaries. Closing and the advance of the Loan are subject to customary conditions precedent, including the delivery of the above-noted security.

All amounts referred to herein are to United States dollars.

About EMX – EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol “EMX”. Please see www.EMXroyalty.com for more information.

About Franco-Nevada – Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol “FNV” on both the Toronto and New York stock exchanges.

For further information contact:

David M. Cole
President and CEO
Phone: (303) 973-8585
Dave@EMXroyalty.com

Isabel Belger
Investor Relations
Phone: +49 178 4909039
IBelger@EMXroyalty.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Forward-Looking Statements

This news release may contain “forward-looking statements” that reflect the Company’s current expectations and projections about its future results. These forward-looking statements may include statements regarding the expected timing for the closing of the Loan, the satisfaction of the conditions of closing of the Loan and the expected use of proceeds from the Loan, or other statements that are not statements of fact. When used in this news release, words such as “estimate,” “intend,” “expect,” “anticipate,” “will”, “believe”, “potential” and similar expressions are intended to identify forward-looking statements, which, by their very nature, are not guarantees of the Company’s future operational or financial performance, and are subject to risks and uncertainties and other factors that could cause the Company’s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and factors may include, but are not limited to the Company being unable to satisfy the conditions of closing of the Loan or being unable comply with the covenants under the Credit Agreement, including the repayment of any amounts owing under the Loan, and other factors.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release or as of the date otherwise specifically indicated herein. Due to risks and uncertainties, including the risks and uncertainties identified in this news release, and other risk factors and forward-looking statements listed in the Company’s MD&A for the quarter ended March 31, 2024 (the “MD&A”), and the most recently filed Annual Information Form (“AIF”) for the year ended December 31, 2023, actual events may differ materially from current expectations. More information about the Company, including the MD&A, the AIF and financial statements of the Company, is available on SEDAR+ at www.sedarplus.ca and on the SEC’s EDGAR website at www.sec.gov.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/213593