ELE

Corporate & Capital Allocation Updates

• Completed uplisting to the TSX from the TSXV, and gained inclusion in the S&P TSX Global Gold Index and Russell 2000; management expects near-term inclusion in MSCI Canadian Small Cap and GDXJ
• Implemented the company's main dividend in Q1 2026, has now paid two quarters of dividends, and added an optional share/gold dividend election for shareholders
• Secured approval for a normal course issuer bid (NCIB) for up to 5% of outstanding shares over 12 months, and has actively repurchased shares to take advantage of valuation dislocations during market volatility
• Renegotiated and upsized the corporate credit facility to $150 million USD with a $50 million USD accordion option, while reducing the cost of capital to improve financial flexibility
• Combined management teams from the Elemental and EMX merger, and expanded technical, financial, and legal teams to support accelerated growth
• Tether remains a 32% major supportive shareholder, with a representative on the board

Transaction & Acquisition Updates

• Closed four new acquisitions in H1 2026, including increasing the company's existing royalty position on Western Queen Royalty for ~$7 million USD
• Signed an agreement to acquire Wiesler Royalty (Vizsla transaction), which holds an uncapped 2-3.5% net smelter return (NSR) royalty on the high-quality Panuco silver development project in Mexico; all shareholder and court approvals are complete, and closing is pending Mexican Antitrust Commission approval expected in Q3 2026
• Added an increased royalty position and minority equity stake in the Chappie project in Peru post-quarter end; Chappie achieved initial production in H1 2026 with expansion plans to 30,000 tonnes per annum

Portfolio Asset Updates

• Material growth in the size and quality of cornerstone assets: average value of the top six assets increased from ~$40 million USD in mid-2025 to ~$170 million USD post the Vizsla transaction, with a 3x increase in total royalty count
• Karlawinda: on track to complete a mine expansion in Q3 2026 that will raise annual gold production from ~115,000-120,000 ounces to ~150,000 ounces; post-quarter end management reported a 30% increase in reserves and 48% increase in total resources
• Casarones (Chile): majority owner Lundin Mining has completed ~100 kilometers of exploration drilling over 18 months, with ongoing incremental operational improvements
• Timok: ongoing development of the lower production zone, with the new significant MG super-major discovery within the company's royalty area that has an initial resource outlined
• Bonacro: 4.5% NSR royalty, mine life has been extended post new Sijin investment, and remains a material ongoing contributor
• Leeville: high-quality asset with consistent long-term exploration success from operator Nevada Gold Mines
• The portfolio holds ~200 early-stage royalties with large embedded unpriced optionality from operator exploration investment
• Operators of the company's development projects are investing over $800 million USD total to advance projects to production, creating a de-risked future growth pipeline

• Full-year 2026 guidance for 21,000 gold equivalent ounces (GEOs) is maintained, with performance tracking toward the upper end of the range; the company passed the mid-year point ahead of the guidance midpoint
• Quarterly G&A run rate is expected to decline from $5.6 million USD in H1 2026 to the low $4 million to $4.5 million USD range in H2 2026, driven by completed corporate development initiatives and a 50% reduction in the number of combined corporate entities, cutting redundant costs
• Adjusted EBITDA margin is expected to increase from ~74% of revenue in H1 2026 to over 80% in 2027, as cost structure improvements take effect and top-line revenue grows
• Closing of the Wiesler/Vizsla acquisition transaction is guided for Q3 2026, pending antitrust approval

Elemental Royalty is broadly divided into two commodity-focused segments: gold/precious metals and copper. As of the end of Q2 2026, the portfolio is approximately 67% (two thirds) gold/precious metals focus and 33% (one third) copper focus. In Q2 2026, total company revenue reached $24 million USD, representing a 127% increase year-over-year. Adjusted EBITDA for the quarter was $17.4 million USD, up nearly 100% year-over-year. Record operating cash flow hit $15.5 million USD, with an 8% year-over-year increase that was muted by large one-time prior-year payments. Key cornerstone producing asset Karlawinda generated approximately $3 million USD in Q2 2026 revenue. Total H1 2026 revenue reached $48 million USD.

• Geopolitical risk for jurisdictions like Mexico is actively balanced against geological potential; current Mexican portfolio exposure is in line with peer major royalty companies, and overall portfolio diversification mitigates single-jurisdiction risk
• Deal execution risk for the Wiesler transaction: closing is contingent on Mexican Antitrust Commission approval, which has experienced minor delays
• Exposure to commodity price volatility: gold prices have traded below the 2026 guidance range, while copper prices have traded above guidance, benefiting the 33% copper portfolio exposure
• Overhead and integration risk from the EMX merger is being actively mitigated through corporate entity consolidation and cost reduction initiatives

Q: GEO calculation is based on what price basis, and how do current spot prices compare to guidance prices given the 1/3 copper exposure and recent copper price strength? / A: Reported GEOs are calculated by dividing total quarterly revenue by the average realized commodity price for the quarter. 2026 guidance was based on $1,450 gold and $3.55 per pound copper. Current spot gold is slightly below the guidance range, while copper prices are well above guidance, so the company is benefiting from higher copper prices that boost calculated GEOs.

Q: How has increased company size post-merger changed your M&A approach, particularly for deal size and equity investments alongside royalties? / A: The core M&A strategy remains consistent: management continues to evaluate opportunities across the full range of deal sizes, from $7 million add-on transactions for existing royalties to large corporate transactions like the Wiesler acquisition. Small equity stakes alongside royalties have been used historically when value is present, and that approach has not changed. The larger combined balance sheet allows the company to execute on more opportunities without syndicating as much deal flow as in the past, retaining more upside from generated opportunities.

Q: How has the company's approach to geopolitical risk changed post-merger, and how do you evaluate risk for assets like the Panuco project in Mexico? / A: The larger diversified portfolio reduces proportional risk from individual jurisdiction assets, so transactions like Panuco have lower overall risk for the combined company than they would have for Elemental or EMX pre-merger. Mexico exposure as a percentage of the portfolio is in line with other major peer royalty companies, and Mexico remains a top global jurisdiction for geological silver potential. The company always balances geopolitical risk against geological potential when evaluating opportunities, and this framework has not changed.

Q: With a strong balance sheet and active NCIB, would you issue meaningful amounts of equity for large acquisitions? / A: Management's top priority for all acquisitions is maintaining accretion to net asset value per share. The company prioritizes using existing cash and the credit facility first to fund transactions, taking advantage of low-cost leverage. Equity issuance will not be ruled out for the right large accretive opportunity, but it will only be pursued if it fits the per-share accretive growth model.