Lithium Royalty Corp. Provides 2023 Recap

(in countless U.S. dollars unless otherwise kept in mind)

TORONTO– Lithium Royalty Corp. (TSX: LIRC) (” LRC” or the “Company”) is happy to report on the effective conclusion of its inaugural year as a public business, following its going public in March 2023, with an upgrade on essential advancements in 2023 through into 2024.

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The royalty company design continues to supply an engaging direct exposure to the advancement of the lithium product markets and the fast-growing international electrical car and sustainable power markets. Interest in crucial lithium mineral properties continues to grow from tactical individuals in spite of the near-term volatility, highlighted by the robust M&A activity occurring in the market. LRC sees a robust environment for capital allowance with a view on developing sustainable long-lasting worth.

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“2023 was a record year for LRC marked by the biggest implementation of capital in the Company’s history. We included 8 brand-new royalties throughout 2023, consisting of 6 brand-new royalties because the March IPO. The existing LRC portfolio experienced strong natural development, with 4 jobs revealing first resource statements of international significance. In addition, the James Bay task run by Arcadium Lithium (previously Allkem) got ecological approval from Québec’s provincial authorities and Atlas Lithium revealed that it is totally funded for its Das Neves task in Brazil, which is targeting to begin production in 2024. Regardless of lower lithium costs, the LRC portfolio advanced significantly and is placed to take advantage of the ongoing development in the lithium sector,” mentioned LRC’s CEO, Ernie Ortiz.

While we are not pleased with the 48% decrease in the share cost considering that March 2023 IPO, it is in-line with significant lithium business, weak efficiency for public royalty business and a 73% decrease in lithium costs. Our acquisition activity continued at a record speed and we are releasing capital at exceptional returns. Our pipeline for brand-new royalties is robust, appraisals are appealing and return expectations well above average.

2024 is anticipated to be an inflection point for the Company as our tasks which got in industrial production in 2023 increase, and numerous others begin business production for the very first time.

Lithium Market

Internal and third-party price quotes recommend lithium need increased by roughly 27% in 2023, powered by ongoing development in electrical lorry (EV) sales which grew by roughly 35% on a worldwide basis. EV sales penetration (battery electrical and plug-in hybrids) was roughly 17%, up from 12% in 2022, in spite of greater rates of interest that affected price. Anticipating 2024, 3rd party price quotes are anticipating for EV sales to grow in between 20-25% year-on-year, which would relate to EV sales of 17-18 million systems internationally and represent around ~ 20% of international auto sales. According to projections, the ongoing increase of EVs in mix with growing energy storage battery setups ought to enable the lithium market to grow in excess of 20% in 2024 and will mark an essential turning point for the market, as 2024 is on track to be the very first year ever in which lithium need reaches (and surpasses) one million tonnes in LCE terms. We anticipate that ongoing end market development, enhancing battery stock levels, and higher customer option for EVs will be very important tailwinds for the sector in 2024.

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2023 Events

• 2 extra lithium tasks start spodumene concentrate deliveries;
• 8 extra royalties included 2023;
• 4 brand-new maiden resource statements within LRC’s royalty portfolio, consisting of essential statements for Winsome Resources’ Adina lithium job in Québec and Delta Lithium’s Yinnetharra job in Australia;
• Arcadium Lithium’s (previously Allkem) provincial approval on James Bay task, permitting the job to begin building; and
• Atlas Lithium revealed that its Phase 1 job is totally moneyed through collaborations with leading chemical converters.

Secret Mineral Resource Updates

Grid Metals Donner Lake Royalty: In July 2023, Grid Metals revealed a first mineral resource price quote for its Donner Lake job in Manitoba, Canada, consisting of 6.81 Mt of presumed resources with a Li₂O grade of 1.39%. LRC holds a 2.0% GOR royalty on the Donner Lake lithium task.

Arcadium Lithium James Bay Royalty: In August 2023, Arcadium Lithium (formerly Allkem Limited) reported a 173% boost in the James Bay mineral resource, which now stands at 110.2 Mt. LRC holds a 1.5% NSR royalty on part of the James Bay lithium job.

Delta Lithium Yinnetharra Royalty: In December 2023, Delta Lithium revealed a first mineral resource quote for the Yinnetharra job in Australia, consisting of 6.7 Mt of determined and suggested resources and 19.0 Mt of presumed resource, both with a Li₂O grade of 1.0%. LRC holds a 1.0% GOR royalty on the Yinnetharra lithium job.

Winsome Resources Adina Royalty: In December 2023, Winsome Resources revealed a first mineral resource price quote for the Adina job in Québec, Canada, consisting of 58.5 Mt of presumed resource, with a Li₂O grade of 1.12%. LRC holds a 4.0% GOR and 2% NSR royalty on the Adina lithium task.

Green Technology Metals Root Lake Royalty: Acting on its first mineral resource release at Root Lake from April 2023, Green Technology Metals upgraded its mineral resource price quote at Root to 14.6 Mt at 1.21%. This brings the worldwide resource in mix with Seymour to 24.5 Mt at 1.14%. LRC holds a 1.0% GOR royalty on each of the Root Lake and Seymour lithium tasks.

Sayona Mining Moblan Royalty: In April 2023, Sayona Mining revealed a significant resource growth at the Moblan lithium task in Québec, Canada, growing the resource to 49.9 Mt of determined and suggested mineral resource at 1.2% Li₂O with a 0.25% cut-off grade. LRC holds a 2.5% GOR royalty on the Moblan lithium job.

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Bradda Head Lithium Basin-Wikieup Royalty: In September 2023, Bradda Head revealed an upgraded mineral resource quote for its Basin job in Arizona, reaching 1.0 Mt of presumed LCE mineral resource. LRC holds a 2.0% GOR royalty on the Basin-Wikieup lithium job.

Development Updates on LRC Royalty Projects

Sigma Lithium Grota do Cirilo Royalty: LRC got the very first royalty payment from the Grota do Cirilo task in 2023. Production at this job increase rapidly and reached consistent state production throughout 2023 on a run rate basis. In October 2023, Sigma revealed that it had actually reached record peak production of 890 tonnes each day, comparable to annualized production of 320,000 tonnes. According to Sigma’s public disclosure, Sigma regularly delivered item on a regular monthly basis throughout the 4th quarter. LRC holds a 0.90% NSR royalty on the Grota do Cirilo lithium job.

Atlas Lithium Das Neves Royalty: In December 2023, Atlas Lithium revealed that it was totally moneyed to establish Phase 1 of its Das Neves task, which Atlas is targeting to produce 150,000 tpa of spodumence concentrate. Atlas Lithium raised USD$ 50 million in financing through collaborations with lithium converters Chengxin Lithium and Sichuan Yahua. Atlas has actually divulged that this capital infusion places the Das Neves task to begin production in 2024. Please click here to gain access to Atlas Lithium’s news release. LRC holds a 3.0% GOR royalty on the Das Neves lithium task.

Arcadium Lithium James Bay Royalty: In December 2023, Arcadium Lithium (formerly Allkem Limited) revealed that it was given its Certificate of Authorisation, which is the last action in the Environmental and Social Impact Review Committee (COMEX) in Québec that will permit the advancement of the James Bay lithium task. This crucial turning point permits Arcadium to start building and construction at the website. LRC holds a 1.5% NSR royalty on 23 claims of the James Bay lithium task, amounting to a location of roughly 1,195 ha.

Green Technology Metals Seymour Lake Royalty: In December 2023, Green Technology Metals got a mining lease for its Seymour Lake lithium task in Ontario. LRC holds a 1.0% GOR royalty on each of the Root Lake and Seymour lithium tasks.

Core Lithium Finniss Royalty: On January 5, 2024, Core Lithium revealed that it was momentarily suspending mining operations, while continuing to procedure stocked ore (which was around 280,000 tonnes at December 31, 2023) to produce spodumene concentrate. Throughout the last damp season in the Northern Territories, Core Lithium stopped production at the Grants task in late December 2022 and resumed in late March 2023 according to their public disclosure. Core Lithium will continue the mine research study for the BP33 task, with early deal with time out till market conditions enhance. Since September 30, 2023, Core Lithium held AUD$ 202.1 countless money and no financial obligation. LRC holds a 2.5% GOR royalty on the Finniss lithium job.

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Acquisition Activity in 2023

• Throughout 2023, LRC obtained 8 extra lithium royalties, on 6 brand-new lithium tasks, in Argentina, Brazil, Québec and Ontario, as follows:

Orion Resource Partners Litigation Update

LRC is pleased to reveal that the Ontario Superior Court of Justice has actually given an injunction in LRC’s claim versus Orion Resource Partners (” Orion”).

In August 2023, the Ontario court ruled in LRC’s favour, discovering that in January 2021 LRC participated in a binding and enforceable agreement to purchase an 85% interest in the Thacker Pass royalty from Orion for US$ 18.7 million overall factor to consider. LRC has actually because looked for an injunction avoiding Orion and its associated entities from moving the staying 40% interest in the Thacker Pass royalty held by Orion.

On January 3, 2024, the Ontario court gave an injunction limiting Orion, and any entity that uses that brand name in its company negotiations, and its staff members, representatives, officers, directors and any other individual acting upon their behalf or in combination with any of them, from any conduct, or triggering any conduct, that dissipates, transfers or overloads that 40% interest in the Thacker Pass royalty that would prevent the shipment up for the Thacker Pass royalty as a treatment to LRC, pending the last personality of the continuous lawsuits in between LRC and Orion.

The Ontario court has actually not yet chosen the proper treatments for the breach by Orion Resource Partners, which will be dealt with in a different court hearing yet to be arranged. Orion Resource Partners has actually started an appeal of the Ontario court’s August choice that discovered the binding and enforceable agreement. LRC does not acknowledge this lawsuits as a possession in its monetary declarations and anticipates that resolution of this matter might undergo more hold-ups. Orion Resource Partners has actually not asserted any claims versus LRC.

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Purchases of Shares by LRC and by Insiders

Throughout 2023, LRC re-purchased 154,500 shares under LRC’s typical course provider quote (NCIB), at an overall expense of $1.3 million. The present NCIB concludes on July 9, 2024.

In addition, experts bought 397,312 shares throughout 2023 (consisting of in the IPO), bringing the overall aggregate expert purchasing because IPO to around C$ 6.0 million.

Due to the existing lack of concealed product info concerning the Company, the board of directors of LRC has actually approved a short-lived waiver of the Company’s frequently set up blackout on trading by experts of LRC that would otherwise presently be in impact following the conclusion of the 4th quarter of 2023, based on ongoing compliance with all securities laws suitable to all experts participating in such trades. The short-lived waiver will end at the end of the day on January 19, 2024.

Essential Dates and Events

• January 17-19, 2024– LRC at 27^th Yearly CIBC Western Institutional Conference
• January 23-25, 2024– LRC at TD Cowen 15^th Yearly Global Mining Conference
• March 27, 2024– Q4 2023 outcomes launched
• March 28, 2024– Q4 2023 incomes call

Investor Information

Lithium Royalty Corp’s Investor Presentation is offered here

About Lithium Royalty Corp.

LRC is a lithium-focused royalty business with an internationally varied portfolio of 34 profits royalties on mineral homes all over the world that supply and are anticipated to provide basic materials to support the electrification of transport and decarbonization of the international economy. Our portfolio is concentrated on state-of-the-art and low-priced mineral tasks that are mostly found in Australia, Canada, South America and the United States. LRC is a signatory to the Principles for Responsible Investment; the combination of ESG elements and sustainable mining are factors to consider in our financial investment analysis and royalty acquisitions.

Forward Looking Statements

This news release consists of “positive details” and “positive declarations” within the significance of appropriate Canadian securities laws, which might consist of, however are not restricted to, declarations with regard to future occasions or future efficiency, management’s expectations concerning LRC’s development, outcomes of operations, approximated future incomes, efficiency assistance, bring worth of properties and requirements for extra capital, mineral resource and mineral reserve quotes, production price quotes, production expenses and earnings, future need for and costs of products, anticipated mining series, company potential customers and chances, the efficiency and strategies of 3rd party operators and the anticipated direct exposure for present and future evaluations and readily available solutions. In addition, declarations connecting to resources and reserves and mine life are positive declarations, as they include suggested evaluation, based upon particular quotes and presumptions, and no guarantee can be considered that the price quotes and presumptions are precise which such resources and reserves or mine life will be recognized. Typically, however not constantly, positive declarations can be determined by the usage of words such as “strategies”, “anticipates”, “is anticipated”, “spending plans”, “prospective for”, “arranged”, “price quotes”, “projections”, “anticipates”, “tasks”, “means”, “targets”, “objectives”, “expects” or “thinks” or variations (consisting of unfavorable variations) of such words and expressions or might be determined by declarations to the impact that particular actions “might”, “might”, “ought to”, “would”, “may” or “will” be taken, happen or be attained. Positive declarations include understood and unidentified threats, unpredictabilities and other elements, which might trigger the real outcomes, efficiency or accomplishments of LRC to be materially various from any future outcomes, efficiency or accomplishments revealed or suggested by the positive declarations. Positive details is based upon management’s beliefs and presumptions and on info presently offered to management. The positive declarations herein are made since the date of this news release just and LRC does not presume any responsibility to upgrade or modify them to show brand-new info, approximates or viewpoints, future occasions or outcomes or otherwise, other than as needed by relevant law.

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A variety of aspects might trigger real occasions or results to vary materially from any positive declaration, consisting of, without constraint: variations in the costs of the main products that drive royalty earnings (consisting of numerous lithium items); variations in the worth of the Canadian and Australian dollar and any other currency in which profits is created, relative to the U.S. dollar; modifications in nationwide and city government legislation, consisting of allowing and accrediting programs and tax policies and the enforcement thereof; the adoption of a worldwide minimum tax on corporations; regulative, political or financial advancements in any of the nations where homes in which LRC holds a royalty or other interest lie or through which they are held; threats connected to the operators of the homes in which LRC holds a royalty or other interest, consisting of modifications in the ownership and control of such operators; forfeiture or sale of mineral residential or commercial properties; impact of macroeconomic advancements; organization chances that appear to, or are pursued by LRC; lowered access to financial obligation and equity capital; lawsuits; title, license or license disagreements connected to interests on any of the homes in which LRC holds a royalty or other interest; whether the Company is identified to have “passive foreign investment firm” (“PFIC”) status as specified in Section 1297 of the United States Internal Revenue Code of 1986, as modified; extreme expense escalation in addition to advancement, allowing, facilities, running or technical problems on any of the residential or commercial properties in which LRC holds a royalty or other interest; real mineral material might vary from the resources and reserves consisted of in technical reports; rate and timing of production distinctions from resource price quotes, other technical reports and mine strategies; threats and risks related to business of advancement and mining on any of the homes in which LRC holds a royalty or other interest, consisting of, however not restricted to uncommon or unanticipated geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural catastrophes, terrorism, civil discontent or a break out of infectious illness; the effect of the COVID-19 (coronavirus) pandemic; and the combination of gotten possessions. The positive declarations included in this news release are based upon presumptions management thinks to be affordable, consisting of, without restriction: the continuous operation of the residential or commercial properties in which LRC holds a royalty or other interest by the owners or operators of such residential or commercial properties in a way constant with previous practice; the precision of public declarations and disclosures made by the owners or operators of such underlying residential or commercial properties; no product negative modification in the market rate of the products (consisting of numerous lithium items) that underlie the property portfolio; the Company’s continuous earnings and properties associating with decision of its PFIC status; no product modifications to existing tax treatment; the anticipated application of tax laws and guidelines by tax authorities; no unfavorable advancement in regard of any substantial residential or commercial property in which LRC holds a royalty or other interest; the precision of openly divulged expectations for the advancement of underlying homes that are not yet in production; combination of gotten properties; and the lack of any other aspects that might trigger actions, occasions or results to vary from those prepared for, approximated or meant. There can be no guarantee that positive declarations will show to be precise, as real outcomes and future occasions might vary materially from those prepared for in such declarations. Financiers are warned that positive declarations are not assurances of future efficiency. LRC can not guarantee financiers that real outcomes will follow these positive declarations. Appropriately, financiers need to not put unnecessary dependence on positive declarations due to the intrinsic unpredictability therein.

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For extra info with regard to threats, unpredictabilities and presumptions, please describe LRC’s latest Annual Information Form dated March 31, 2023 and submitted with the Canadian securities regulative authorities on www.sedarplus.comThese threats and unpredictabilities consist of, however are not restricted to, those explained under “Risk Factors” in the Annual Information Form, and in specific dangers summed up under the “Risks Related to Mining Operations” heading

Technical and Third-Party Information

LRC does not own, establish or mine the underlying homes on which it holds royalty interests. As a royalty holder, LRC has actually restricted, if any, access to residential or commercial properties consisted of in its property portfolio. As an outcome, LRC depends on the owners or operators of the homes and their certified individuals to supply details to LRC or on openly offered details to prepare disclosure referring to residential or commercial properties and operations on the residential or commercial properties on which LRC holds a royalty or other comparable interests. LRC normally has actually restricted or no capability to individually confirm such info. LRC does not think that such info is unreliable or insufficient in any product regard, there can be no guarantee that such third-party details is total or precise.

¹ Altius Minerals Corporation has an indirect 10% interest in the initial 1.0% Tres Quebradas lithium royalty through its 10% restricted collaboration interest in LRC LP I. LRC holds the other 90% minimal collaboration interest. The extra 0.5% GOR royalty gotten is held exclusively by LRC and Altius has no interest in this extra royalty.
² Gross Overriding Revenue (GOR) royalties are based upon the overall profits stream from the sale of production from a home with couple of, if any, reductions.
³ Net Smelter Return (NSR) royalties are based upon the worth of production or net profits gotten by the operator from the smelter or refinery that deals with the operator’s mineral production. These earnings are typically based on reductions or charges for transport, insurance coverage, smelting and refining expenses as set out in the royalty contract, however might likewise undergo other reductions or charges.

View source variation on businesswire.com: https://www.businesswire.com/news/home/20240108892681/en/

Contacts

Contact Information for Inquiries:

Jonida Zaganjori
Financier Relations
(647) 792-1100
jonida@lithiumroyaltycorp.com

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