Elemental Altus Expands Royalty Portfolio with Rio Tinto-Operated HCK Lithium Project Acquisition

• Elemental Altus acquires 1.25%-1.40% NSR lithium royalty on HCK Project in Rwanda operated by Rio Tinto
• Transaction strengthens Aterian's balance sheet by extinguishing debt in a non-cash deal
• HCK Project has identified 19 LCT pegmatite zones with prospective scale
• Elemental Altus appoints David Baker as new Corporate Secretary
• Company focused on acquiring uncapped royalties and streams on producing or near-production mines

About Elemental Altus Royalties Corp.

Elemental Altus Royalties Corp. (TSX-V: ELE, OTCQX: ELEMF) is an income-generating precious metals royalty company with a portfolio that includes 10 producing royalties and a pipeline of pre-production and discovery-stage assets. The company's strategy centers on acquiring uncapped royalties and streams over producing or near-production mines operated by established partners. Elemental Altus aims to build a leading global gold royalty company that provides investors with superior gold exposure alongside reduced risk and strong growth potential.

Acquisition of HCK Lithium Royalty

Elemental Altus has acquired a 1.25% to 1.40% NSR royalty from Aterian Plc on the HCK Lithium Project in Rwanda. The project is currently being advanced under a joint venture with global mining leader Rio Tinto.

Commenting on the acquisition, Frederick Bell, CEO of Elemental Altus, stated:

"We are excited to add another highly prospective exploration royalty to the portfolio which is being advanced by Rio Tinto. Historical work at the HCK project has identified 19 separate LCT (lithium-caesium-tantalum) pegmatite zones offering the prospective scale necessary to attract a major partner such as Rio Tinto. We look forward to following the developments at site as valuable data is collected on the lithium, tantalum, tin, and niobium prospects to understand the exploration potential and define drill targets.

The transaction was completed on a non-cash basis allowing Elemental Altus to maintain its cash balance. We are also supporting Aterian, who operates a number of the Company's royalties, strengthening its balance sheet by extinguishing debt."

Key aspects of the royalty acquisition include:

• Royalty rate of 1.25% if total permit area exceeds 3,100 hectares (including pending Musasa permit), capped at US$31.25 million
• Royalty rate of 1.40% if total permit area is less than 3,100 hectares (HCK permit only), capped at US$35 million
• Consideration of £200,000 paid via extinguishment of Aterian debt, preserving Elemental Altus' cash
• Strengthens major royalty partner Aterian's balance sheet

The addition of the HCK royalty expands Elemental Altus' royalty portfolio with a highly prospective exploration project backed by Rio Tinto. Historical work has identified 19 lithium-caesium-tantalum (LCT) pegmatite zones on the property, highlighting district-scale potential that attracted Rio Tinto's involvement. Upcoming exploration by the Rio Tinto joint venture will focus on assessing the lithium, tantalum, tin and niobium prospects to define drill targets.

The non-cash structure of the transaction allows Elemental Altus to acquire the royalty while maintaining a strong cash position. By extinguishing £200,000 of Aterian's debt, Elemental Altus also strengthens the balance sheet of a key royalty partner. This prudent approach to capital allocation enables the company to continue growing its royalty portfolio without diluting shareholders.

Investment Thesis

Elemental Altus presents a compelling opportunity for investors seeking exposure to precious metals and the rapidly growing battery metals space. The company's royalty model provides diversified commodity exposure while mitigating many of the operational risks associated with mining projects.

With 10 cash-flowing royalties and a deep pipeline of development and exploration stage assets, Elemental Altus offers investors a balance of current income and future growth potential. The company's focus on acquiring royalties over projects operated by experienced, well-capitalized mining companies reduces counterparty risk.

The HCK lithium royalty acquisition aligns with Elemental Altus' strategy of gaining exposure to high-quality exploration projects that have attracted major mining companies as partners. As the battery metals boom drives increased investment in lithium projects globally, Elemental Altus is well-positioned to capture value through additional royalties.

The company's precious metals portfolio remains the core of its asset base, providing investors with attractive exposure to gold and silver. Elemental Altus' emphasis on gold in particular allows the company to generate substantial cash flow and margins in the current strong price environment.

Importantly, Elemental Altus has maintained a strong balance sheet to pursue further royalty acquisitions. The non-cash nature of the HCK transaction demonstrates management's prudence in capital allocation. As the company looks to grow its portfolio, it has the financial flexibility to act on opportunities.

Conclusion

Elemental Altus Royalties offers investors a compelling mix of current income, commodity diversification, and long-term growth potential. With a portfolio anchored by gold and silver royalties, the company is generating strong cash flow in a robust precious metals market. At the same time, Elemental Altus is positioning itself in future-facing commodities like lithium, leveraging the expertise of major operators like Rio Tinto.

As the company continues to execute on its strategy of acquiring royalties and streams on high-quality assets, investors stand to benefit from organic growth in its existing portfolio alongside new additions. With an experienced management team, strong financial position, and clear growth trajectory, Elemental Altus is an attractive vehicle for gaining exposure to the upside in precious and battery metals.