Electric Royalties to Acquire 1% NSR on Cancet Lithium Project in All-Shares Transaction

Electric Royalties Ltd. (TSXV: ELEC) ("Electric Royalties" or the "Company") is pleased to announce the signing of two royalty purchase and sale agreements to acquire, in the aggregate, a 1% Net Smelter Royalty (the "1% NSR") on licenses comprising core strategic tenure at the Cancet Lithium Project situated in Quebec, Canada (the "Cancet Project" or "Cancet"), such transactions being with arm's-length parties.

"We are pleased to add the Cancet lithium royalty to our portfolio of high-impact hardrock lithium royalties on projects securely located in Eastern Canada .  MetalsTech Limited, the Australian-listed developer of the Cancet Project, has had significant corporate success advancing the asset including a recent royalty financing with the privately-held Lithium Royalty Corp., and a recent announcement to spin out their portfolio of lithium assets (which includes the Cancet Project) into a new company, Winsome Resources Limited. MetalsTech has also appointed Canaccord Genuity ( Australia ) as lead manager for up to an A$18 million financing as relates to the proposed spin-out transaction of their lithium assets.

The Cancet Project is favourably located in the heart of Plan Nord, an area in which the Quebec government is fostering resource development, including the next generation of battery metal deposits.  Cancet is located adjacent to the Taiga Highway and would have access to abundant hydropower which could provide clean power for any eventual mining operation. Initial work suggests that the mineralization at Cancet compares very favorably with other deposits in the region. At Electric Royalties, we expect the project to advance toward a resource with additional drilling over the next several years.

In addition, the contribution of the Cancet lithium royalty under an all-share basis to our portfolio reflects the growing strategic value of our listed-equity and demonstrates our capacity to build Electric Royalties into North America's premier battery metals royalty company with ongoing transactional velocity," noted Brendan Yurik CEO of Electric Royalties.

Terms

Electric Royalties is acquiring the 1% NSR on the Cancet Project for a total consideration of 3,000,000 common shares ("Acquisition Consideration") of the Company. The Acquisition Consideration will be subject to a voluntary escrow lock-up agreement, which provides that 50% of the common shares will be subject to a hold period of 4 months, 25% for 8 months and the remaining 25% for 12 months.

The transactions noted herein are subject to completion of due diligence, approval of the TSX Venture Exchange and other customary conditions.

Cancet Lithium Project Overview

The Cancet Project is an exploration stage project 100% owned by MetalsTech Limited (ASX: MTC).  The project is located in northern Quebec approximately 250 km east of James Bay , in the administrative region known as Nord-du-Québec.  The broader project covers approximately 12,746 hectares, is beneficially located on an all-season highway and is in close proximity to low-cost hydroelectric power.

In 2017, a two-phase drill program totaling 5,216 metres in 59 holes was completed on the property.  Spodumene-bearing pegmatite was traced continuously along strike for approximately 1.1 km. The mineralization, as well as host pegmatite, is interpreted to be shallow dipping; however, drill testing of the down dip continuity is limited.  The discovery of additional pegmatite outcrop and a spodumene-bearing boulder attests to the on-strike exploration potential at Cancet.

David Gaunt , P.Geo., a Qualified Person who is not independent of Electric Royalties, has reviewed and approved the technical information in this release.

About Electric Royalties Ltd .

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities including lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc, copper and iron 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 feed the electric revolution.

Electric Royalties has a growing portfolio of 16 royalties and is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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 and these other companies and within the meaning of Canadian securities laws. 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 or results or those of these other companies and may include statements regarding the Company's 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 or those of these other companies.

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 other companies 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 any of these other companies to implement its 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 and those of these other companies, or equivalent public filings 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 .

SOURCE Electric Royalties Ltd.

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