Elemental Royalty Notes First Production at Chapi
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Elemental Royalty Corporation | www.elementalroyalty.com
ELEMENTAL ROYALTY NOTES FIRST PRODUCTION AT CHAPI
March 2, 2026 – Denver, Colorado: Elemental Royalty Corporation (“Elemental” or “the Company”)
(TSX-V: ELE, NASDAQ: ELE ) notes the announcement by Quilla Resources I nc. (“Quilla”) on the
successful production of first copper cathode from the Chapi Copper Project (“Chapi”) in southern Peru.
Elemental holds a 2.0% Net Smelter Return (“NSR”) royalty on the project.
Highlights
• First production of copper cathode at the Chapi Copper Project following Quilla’s acquisition
in December 2024
• Ramp-up underway toward plant nameplate capacity of approximately 10,000 tonnes per
annum of copper cathode
• Elemental expects first royalty payment from Chapi in Q1 2026
Chief Executive Officer and Director of Elemental Royalty, David M. Cole, commented : “Quilla has
made phenomenal progress at Chapi with first copper cathode produced, and ramp -up underway toward
nameplate capacity. This rapid progression through key de -risking milestones underscores the project’s
meaningful value and significant upside potential.”
Details
Quilla has announced f irst production of copper cathode at Chapi following the acquisition of the
brownfield asset in December 2024 . Quilla undertook a comprehensive technical review, engineering
evaluation, and operational planning before commencing refurbishment at the mine and solvent
extraction and electrowinning (SX -EW) plant facilities. The restart was achieved within the originally
stated schedule and budget, reflecting management’s strong execution, operational discipline, and
reaffirming Elemental’s confidence in Quilla, and in-country subsidiary Minera Pampa de Cobre S.A.C.,
as operators.
Following the successful commissioning of the SX -EW the plant, Quilla have stated their intention to
progressively increase operating rates toward an initial 10,000 tonnes of copper cathodes per year ,
while completing remaining capital projects and site optimization initiatives to support stable, long -
term operations.
Elemental Royalty on Chapi
Acquired in January 2025, the royalty comprises a 2% NSR on minerals produced from the
approximately 26,000-hectare property, as well as a 2% NSR royalty on any minerals produced from
properties acquired by Quilla within a two-kilometer area of interest (“AOI”). In addition, the agreement
includes an additional 2% NSR royalty from any minerals that are produced from outside the Property
Royalty area, but that are processed at the Chapi Solvent Extraction Electro-Winning (“SX-EW”) plant.
Background on the Chapi Mine
The Chapi Mine is located in southern Peru’s Moquegua and Arequipa Departments at an elevation of
approximately 2,750 meters, and has ready access approximately 50 kilometers south -southeast from
the city of Arequipa. Historical, small -scale copper production, which is poorly documen ted, occurred
intermittently from the 1930s through the early 1980s. Subsequently, between 2006 and 2012 the
Chapi Mine produced approximately 5,000 to 8,500 tonnes per annum, initially of copper sulphates
from open-pit and underground mining and heap leac hing, and later copper cathodes from open -pit
mining, heap leaching, and SX -EW (solvent extraction -electrowinning) processing. The grades mined
during 2006-2012 were reported as 0.59% – 1.04% copper. The operations were halted in 2012 due
to declining copp er prices and operational challenges that were mainly related to insufficient ore
control on materials delivered to the leach pads.
The historical Chapi Mine is comprised of two principal open pits, underground workings, a crushing
and agglomeration circuit, heap leach pads, a solvent extraction plant, an electrowinning copper
cathode plant, and related infrastructure including mine camp, office facilities, water supply, and power.
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Elemental Royalty Corporation | www.elementalroyalty.com
Since 2012, Chapi has been under care and maintenance with the principal permits for mining
operations remaining in place under a temporary suspension.
For further information contact:
David M. Cole
CEO and Director
For more information, please contact:
David M. Cole Tara Vivian-Neal
CEO
Investor Relations
www.elementalroyalty.com
Phone: +1 (604) 688-6390
TSX.V: ELE | NASDAQ: ELE | ISIN: CA28620K1066 | CUSIP: 28620K
About Elemental Royalty Corporation.
Elemental Royalty is a new mid -tier, gold -focused streaming and royalty company with a globally
diversified portfolio of 18 producing assets and more than 200 royalties, anchored by cornerstone assets
and operated by world-class mining partners. Formed through the merger of Elemental Altus and EMX,
the Company combines Elemental Altus’s track record of accretive royalty acquis itions with EMX’s
strengths in royalty generation and disciplined growth. This complementary strategy delivers both
immediate cash flow and long -term value creation, supported by a best -in-class asset base, diversified
production, and sector-leading management expertise.
Elemental Royalty trades on the TSX Venture Exchange and on NASDAQ under the ticker symbol “ELE”.
Cautionary note regarding forward-looking statements and financial outlook
This news release contains certain “forward looking statements” and certain “forward -looking
information” as defined under applicable United States and Canadian securities laws. Forward -looking
statements and information can generally be identified by the use of forward -looking terminology such
as “may”, “will”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or
similar terminology (including negative and grammatical variations thereof).
Forward-looking statements and information include, but are not limited to, statements regarding future
royalties and future consideration payments or issuances of shares, or other statements that are not
statements of fact. Forward-looking statements and information are based on forecasts of future results,
estimates of amounts not yet determinable and assumptions that, while believed by management to be
reasonable, are inherently subject to significant business, economic and competitive uncertainties and
contingencies.
Forward-looking statements and information are subject to various known and unknown risks and
uncertainties, many of which are beyond the ability of Elemental to control or predict, that may cause
Elemental’s actual results, performance or achievements to be materially different from those expressed
or implied thereby, and are developed based on assumptions about such risks, uncertainties and other
factors set out herein, including but not limited to: the im pact of general business and economic
conditions, the absence of control over the mining operations from which Elemental will receive
royalties, risks related to international operations, government relations and environmental regulation,
the inherent risks involved in the exploration and development of mineral properties; the uncertainties
involved in interpreting exploration data; the potential for delays in exploration or development
activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration,
development or mining results will not be consistent with Elemental’s expectations; accidents,
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Elemental Royalty Corporation | www.elementalroyalty.com
equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions
in operations; fluctuating metal prices; unanticipated costs and expenses; uncertainties relating to the
availability and costs of financing needed in the future; the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses, commodity price fluctuations; currency
fluctuations; regulatory restrictions, including environmental regulatory restrictions; liabi lity,
competition, loss of key employees and other related risks and uncertainties. For a discussion of
important factors which could cause actual results to differ from forward -looking statements, refer to
the annual information form of Elemental for the year ended December 31, 2024. Elemental undertakes
no obligation to update forward -looking statements and information except as required by applicable
law. Such forward -looking statements and information represent management’s best judgment based
on information currently available. No forward-looking statement or information can be guaranteed, and
actual future results may vary materially. Accordingly, readers are advised not to place undue reliance
on forward-looking statements or information.
Neither the TSX-V, its Regulation Service Provider (as that term is defined in the policies of the TSX -
V) or the Nasdaq Stock Market LLC accepts responsibility for the adequacy or accuracy of this press
release.