Electric Royalties Increases Convertible Credit Facility to C$5 Million on Improved Terms and Appoints Stefan Gleason as Board Observer

Electric Royalties Increases Convertible Credit Facility to C$5 Million on Improved Terms and Appoints Stefan Gleason as Board Observer

Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to announce, further to its November 15, 2022 and January 19, 2023 press releases, that it has entered into an agreement with Gleason & Sons LLC (the "Lender") to increase the Company's existing convertible credit facility from C$2,000,000 to C$5,000,000 (the "Loan Amendment"). Gleason & Sons LLC is controlled by Stefan Gleason, a significant shareholder of Electric Royalties

The Lender has also agreed to modify the interest rate to a lower, floating rate (Secured Overnight Financing Rate (or "SOFR") + 7%), with a maximum interest rate of 12.5%, as compared to the original rate of 15%, and to remove the early repayment fee. All other terms remain the same.

The Company has elected to draw down C$500,000 under the convertible credit facility (the "Drawdown") to fund the acquisition of the Kenbridge nickel royalty announced on March 6, 2023.

The Loan Amendment and the Drawdown are subject to the approval of the TSX Venture Exchange and other customary closing conditions.

Appointment of Board Observer

Mr. Gleason has been appointed as a Board Observer effective immediately. In this role, he will be invited to attend and participate in board meetings, and be granted access to all information provided to the board, but he will not have any voting rights.

Mr. Gleason is President and majority owner of Money Metals Exchange LLC, one of the largest precious metals dealers and depositories in North America. He is also Managing Director of Gleason & Sons LLC, a Charlotte-based family limited liability company which holds and manages debt, equity, and real estate investments. A graduate of the University of Florida, he is a seasoned business leader, investor and political strategist, with frequent appearances on U.S. television networks such as CNN, FoxNews, Fox Business and CNBC. Mr. Gleason is also a regular columnist for Seeking Alpha and Investing.com and has been published by the Wall Street Journal, Newsweek, Mining.com and TheStreet, among other publications.

Brendan Yurik, CEO of Electric Royalties, commented: "We thank our largest shareholder Stefan for his continued support of Electric Royalties, and extend a warm welcome to him as a Board Observer. This facility is very friendly towards the company in a number of ways, highlighted by its 3-year term, no structuring fee or setup fee, no early repayment fee, no fees payable on undrawn capital, and no interest payments throughout the entire term of the loan (interest is capitalized into the loan and due at the end of the term), a relatively low SOFR + 7% interest rate, and the loan advances being convertible into shares of Electric Royalties at the greater of 100% of the 30-day VWAP at the time of each advance or C$0.50 per share, at the election of the Lender."

Mr. Gleason commented: "I am honored to join the board of Electric Royalties as an observer, and I'm eager to work alongside this talented leadership team. I look forward to contributing my expertise and collaborating with the board to help guide the company towards continued success. Gleason & Sons is pleased to provide this flexible credit facility to Electric Royalties in support of its ongoing efforts to acquire accretive royalties on attractive battery metal projects in North America and other stable jurisdictions."

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.

Electric Royalties has a growing portfolio of 21 royalties, including two royalties that currently generate revenue. The Company is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.

For further information, please contact:

Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: Brendan.yurik@electricroyalties.com
www.electricroyalties.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward-Looking Information and Other Company Information

This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company within the meaning of Canadian securities laws. This news release includes information regarding other companies and projects owned by such other companies in which the Company holds a royalty interest, based on previously disclosed public information disclosed by those companies and the Company is not responsible for the accuracy of that information, and that all information provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information and Other Company Information. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events and may include statements regarding the financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities of the Company and the projects in which it holds royalty interests.

While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or these projects to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the mining industry generally, the Covid-19 pandemic, recent market volatility, income tax and regulatory matters; the ability of the Company or the owners of these projects to implement their business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.

The reader is referred to the Company's most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com and at otcmarkets.com.

SOURCE: Electric Royalties Ltd.



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