Elemental Altus Completes Sale of Diba Gold Project in Mali to Allied Gold for Royalty & Milestone Payments

• Elemental Altus Royalties closes sale of Diba gold project in Mali to Allied Gold Corp for royalty, cash & milestone payments
• Uncapped 3% net smelter return royalty on first 226koz gold expected to generate material near term revenue
• Allied plans to fast-track Diba into production in H1 2024 to complement Sadiola mine production
• Diba hosts Indicated resource of 312koz gold with average grade of 1.24g/t and Inferred 362koz at 0.88g/t
• Additional exploration upside remains across 107km2 project area containing numerous prospects

About Elemental Altus Royalties

Elemental Altus Royalties Corp. (TSX-V: ELE, OTCQX: ELEMF) is a revenue generating precious metals royalty company focused on acquiring royalties on producing and near-production mines. The company has a diversified portfolio of 10 producing royalties and pre-production and discovery stage assets. Elemental Altus aims to build a global gold royalty company offering investors exposure to gold with reduced risk and a strong growth profile.

Elemental Altus has announced the closing of the sale of its Diba gold project in western Mali to Allied Gold Corporation (TSX:AAUC) for cash, an uncapped net smelter return royalty and milestone payments. Allied is a Canadian-based gold producer operating in Africa with a significant growth profile.

Allied intends to fast-track Diba into production in the first half of 2024, trucking typically soft oxide open pit ores 15km to its CIP processing plant at the nearby Sadiola gold mine. This is expected to complement Sadiola's production with an additional 230,000oz per year over 2024-2025.

The deal is highly strategic for Elemental Altus, providing an uncapped 3% NSR royalty on the first 226,000oz of gold production from Diba. This near-term revenue is forecast to be material for the company. The royalty will drop to 2% on any production above 226,000oz from Diba and the neighbouring Lakanfla exploration licence.

In addition, Elemental Altus has received US$1 million cash on closing and is entitled to further deferred production-based milestone payments of up to US$5 million from Allied.

Diba Gold Project Overview

The Diba project contains the Korali-Sud small scale mining licence and Lakanfla exploration licence covering 107km2 in western Mali, approximately 450km northwest of the capital Bamako.

The project is strategically located just 5km from the multi-million ounce Sadiola gold mine acquired by Allied Gold from AngloGold Ashanti and IAMGOLD. It is also 35km south of the former Yatela gold mine which produced over 2.3 million ounces.

Korali-Sud hosts the Diba gold deposit which contains a NI 43-101 compliant mineral resource estimate of:

• Indicated - 312,000oz at 1.24g/t gold, including 199,000oz at 1.52g/t in oxides
• Inferred - 362,000oz at 0.88g/t gold

Mineralisation occurs in stacked quartz lenses 20-40m thick within sedimentary packages dipping around 30 degrees to the east. Gold is finely disseminated with minor pyrite.

Extensive oxidation extends up to 70m depth, resulting in high-grade saprolite mineralisation within 50m of surface contained in a compact 700m x 700m area. This provides scope for simple open pit mining by Allied.

The Lakanfla licence hosts numerous active and historic artisanal gold workings surrounding the Kantela granodiorite intrusion. Mineralisation is hosted in breccia zones similar to Sadiola and Yatela. Lakanfla itself contains an existing resource and potential for karst-style targets.

Further Exploration Upside

In addition to the current resources, the Diba project retains excellent upside exploration potential within the 107km2 licence areas.

Numerous other prospects exist such as Diba NW which returned a drill intersection of 4.78g/t gold over 12m and Lakanfla Central with 1.23g/t over 127m. These provide opportunities for further expansion beyond the known resources.

Conclusion

The sale of Diba to Allied Gold marks a highly strategic transaction for Elemental Altus Royalties. It crystalizes the inherent value of Diba via an uncapped 3% royalty on the first 226koz of gold production expected in 2024.

This near term revenue stream is forecast to be material for Elemental Altus, complementing its portfolio of 10 existing producing royalties. The deferred milestone payments also provide the company with additional cash infusions if production thresholds are met.

Beyond the current defined resources, Diba and Lakanfla retain excellent upside potential for new discoveries. Allied's planned exploration programs aim to expand the resource base to further feed the Sadiola processing plant.

With Allied fast-tracking Diba into production next year, Elemental Altus investors can expect mounting royalty revenues from this high-grade, low cost oxide gold project in the near future.

The deal highlights the company's focus on acquiring uncapped royalties over producing and near-producing assets operated by established counterparties. It offers investors superior leveraged exposure to gold with reduced risk.