Empress Royalty Quarterly Update - Q2 2025

• Revenue increased 230% year-over-year in first half of 2025, reaching US$6.55 million in royalty and stream revenue
• Company generated positive operating cash flow of US$4.55 million for the six-month period
• Net income of US$1.58 million compared to US$0.99 million net loss in the same period last year
• Adjusted EBITDA of US$3.90 million for the six-month period
• Q2 2025 royalty and stream revenue was US$3.81 million with US$2.62 million total net revenue

Empress Royalty Corp. (TSXV: EMPR | OTCQX: EMPYF) is a global royalty and streaming creation company providing investors with a diversified portfolio of gold and silver investments. The company invests in mining companies with development and production stage projects that require additional capital through royalty and streaming agreements.

The company maintains strategic partnerships with Endeavour Financial and Terra Capital, which provide access to investment opportunities and mining finance expertise. These partnerships support the company's investment identification and structuring processes across global markets.

Revenue Growth and Financial Performance

Empress Royalty reported revenue growth of 230% year-over-year in the first half of 2025, with royalty and stream revenue reaching US$6.55 million compared to the previous year's equivalent period. The increase reflects higher production volumes from existing portfolio assets and contributions from newer investments that commenced commercial production during the reporting period.

The company transitioned from a net loss of US$0.99 million in H1 2024 to net income of US$1.58 million in H1 2025. This change represents a US$2.57 million improvement in net financial performance year-over-year. The shift coincides with increased revenue generation from the underlying asset portfolio.

CEO Alexandra Woodyer Sherron stated:

"Empress Royalty's revenue for the first half of 2025 increased by nearly 230%, and with positive operational cash flow, underscores the strength of our business model."

The company generated positive operating cash flow of US$4.55 million for the six-month period ended June 30, 2025. Adjusted EBITDA reached US$3.90 million for the six-month period.

Quarterly Performance and Operational Metrics

Second quarter 2025 results showed royalty and stream revenue of US$3.81 million and total net revenue of US$2.62 million. The quarterly figures indicate that approximately 58% of the six-month royalty and stream revenue was generated in Q2 2025, with the remainder occurring in Q1 2025.

The quarterly revenue contribution suggests production patterns at underlying operations, as royalty payments typically fluctuate based on mine production schedules and delivery timing. Revenue recognition for royalty companies depends on production reporting from operators and can vary between quarters.

Cash flow from royalty and streaming operations depends on production volumes, commodity prices, and contractual terms with underlying operators. The positive operating cash flow indicates that current portfolio assets are generating sufficient revenue to cover operational expenses. Net income calculations on a per-share basis were not provided in the financial release, with detailed metrics available in the company's filed financial statements.

Financial Position and Outlook

Empress Royalty achieved several financial milestones in the first half of 2025, including revenue growth, positive cash flow generation, and profitable operations. The company's transition to positive operating cash flow provides financial flexibility for ongoing operations and potential portfolio expansion.

Management indicated focus on "responsible growth and prudent investment" whilst "advancing new opportunities that broaden our portfolio and deliver long-term value for shareholders." The company's cash position and partnerships with financial institutions support continued evaluation of new royalty and streaming opportunities in the precious metals sector.

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