Elemental Altus Royalties Corp V.ELE

Karlawinda Royalty Transitioning to Steady State Operations

[Betteryear2]

VANCOUVER, BC, Sept. 3, 2021 /CNW/ - Elemental Royalties Corp. ("Elemental" or "the Company") (TSXV: ELE) (OTCQX: ELEMF), a diversified gold royalty company focused on quality, accretive and revenue-generating acquisitions across established and emerging mining regions, is pleased to note the announcement by Capricorn Metals Limited ("Capricorn") (ASX: CMM) that the Karlawinda Gold Project is transitioning to steady state operations.

"Only two months from first gold pour, Karlawinda's annualised August production rate of approximately 115,000 ounces is an excellent achievement and highlights the quality of the project and management team at Capricorn" Frederick Bell, CEO of Elemental commented. "With an expected increase in throughput processing rates from September and ongoing progress towards steady state operations, these early production figures are very encouraging."

Karlawinda August Operating Results

• Operation generating strong positive cashflow and in good position to achieve goal of steady state operations by end of September
• Estimated 9,800 ounces gold production in August, equivalent to an annualised run rate of 115,400 ounces in only the second month since first gold pour
• This annualised rate is equivalent to royalty revenue of approximately US$4.0 million for Elemental at an US$1,800/oz gold price
• Achieved with a mill availability of 94.8% and in spite of a number of shutdowns for commissioning and rectification activities
• Annualised throughput rate of 4.2 million tonnes per annum using exclusively hard laterite feed in line with targeted range
• Addition of soft oxide ore expected in September should contribute to increased throughput with a long term targeted range of 4.5 – 5 Mtpa from the oxide and fresh rock blend
• Milled grade in line with expectations and gold recovery of 93.5% through the CIL circuit has been above expectations, allowing a coarse grind to be utilised which assists throughput
• Early reconciliation indicates that mining is achieving grade control ounces