ELEC.V · 2022-06-13 12:00:00

Electric Royalties to Acquire 0.5% Gross Revenue Royalty ON Zonia Copper Project IN Arizona

Mergers & Acquisitions Royalties & Streams

ELECTRIC ROYALTIES TO ACQUIRE 0.5%

GROSS REVENUE ROYALTY ON ZONIA

COPPER PROJECT IN ARIZONA

VANCOUVER, BC

June 13, 2022

/CNW/ - Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF)

("Electric Royalties" or the "Company") is pleased to announce the signing of a binding letter

agreement with World Copper Ltd. (TSXV: WCU) (OTCQB: WCUFF) (FRA: 7LY0) ("World

Copper") to acquire a 0.5% gross revenue royalty ("GRR") on the wholly owned Zonia Copper Oxide

Project in

Arizona

, US (the "Zonia Project" or "Zonia") in exchange for

C$1,550,000

cash and

2,000,000 common shares of the Company (the "Transaction"). The Company will also have the

right , for a period of 15 months after closing of the Transaction, to acquire a further 0.5% GRR on

the Zonia Project for

C$3,000,000

cash consideration. In addition, the Company will have an option,

to acquire a 1% GRR on the Zonia Norte deposit, adjacent to the Zonia Project, for

C$3,000,000

cash, at any time during a period of 24 months from the date that World Copper publishes an initial

technical report in respect of the Zonia Norte deposit which is prepared in accordance with National

Instrument 43-101 and which contains an estimate of Inferred Mineral Resources.

The 2,000,000 common shares will be subject to voluntary escrow which provides that the common

shares will be subject to a hold period of 6 months. The Transaction noted herein is subject to

completion of due diligence, approval of the TSX Venture Exchange and other customary conditions.

Brendan Yurik

, CEO of Electric Royalties commented,

"As a royalty company, we seek to

acquire development assets that that have a clear path to production. The Zonia Copper Oxide

Project is a near-term copper oxide development project in an attractive mining jurisdiction,

Arizona

with a clear path to production.

"Zonia has had an extensive amount of drilling and a significant resource estimate of over 500 million

pounds of copper with potential for further resource growth. At recent and forecast long-term copper

prices, the Zonia Project has robust economics, a compelling case to bring it to production, and a

team experienced in project delivery. As the project sits entirely on private patented land in

Arizona

there is potential for a permitting and start of operations timeline of under four years. Due to the

extensive amount of work already carried out on the project, World Copper's management estimates

that

C$5 million

is sufficient to advance the project to feasibility stage within the next two years. As

the world transitions toward a net-zero economy, the clean energy technologies enabling this shift

will be metal intensive. Copper demand is projected to exceed supply by five to eight million metric

tons by the end of the decade

. We're very excited to partner with World Copper's management

team and believe that Zonia is well positioned to meet this demand."

Zonia Project Royalty Acquisition Highlights

Located in a part of

Arizona

with many existing copper mines, past producers and active

exploration projects. The project can be easily reached by the existing road network, the

majority of which is paved highway. There is existing power on the property and some buildings

remain from previous production between 1966 and 1975.

Mineral Resource estimate

completed by Tetra Tech Inc. includes:

Measured and Indicated Resources of 76.8 million short tons grading 0.33% copper (Cu)

containing 510 million pounds (lb) of copper (0.2% Cu cut-off grade).

Inferred Resources of 27.2 million short tons grading 0.28% Cu, containing 154.6 million

pounds of copper (0.2% Cu cut-off grade).

Preliminary Economic Assessment

("PEA") announced in 2018, using a base case with a Cu

price of

US$2.00

/lb designed pit shell and a cut-off grade of 0.17% total Cu. At a Cu price of

US$3.00

/lb, Zonia's forecast economics are:

After-tax net present value at an 8% discount and Internal rate of Return of

US$177 million

and 29%, respectively, with a 2.89-year payback of initial capital.

Initial capital of

US$198 million

Cumulative Net Cash Flow After Taxes of

US$331 million

Low life-of-mine strip ratio of 0.6:1.

The PEA pit has been pre-stripped from former production.

World Copper plans to prepare for prefeasibility-level studies to further advance the project

toward production. This includes a program of infill drilling with goals to upgrade Inferred

Resources, convert Measured and Indicated Resources to Mineral Reserves and potentially

expand the deposit to the northeast. The program also includes geotechnical and condemnation

drilling.

World Copper plans to drill a new, separate deposit target with copper porphyry-style

mineralization, Zonia Norte, near the main resource. No drilling has been done to date.

The PEA is considered preliminary in nature, contains numerous assumptions and includes Inferred

Mineral Resources that are considered too speculative, geologically, to have the economic

considerations applied that would enable them to be classified as Mineral Reserves. There is no

certainty that the results of the PEA (or any update thereto) will be realized. No Mineral Reserves

have been estimated for Zonia. Mineral Resources are not Mineral Reserves and do not have

demonstrated economic viability. Inferred Mineral Resources are that part of the Mineral Resource

for which quantity and grade, or quality are estimated based on limited geologic evidence and

sampling, which is sufficient to imply but not verify grade or quality continuity. Inferred Mineral

Resources may not be converted to Mineral Reserves. It is reasonably expected, though not

guaranteed, that most Inferred Mineral Resources could be upgraded to Indicated Mineral

Resources with continued exploration. Mineral Resources are captured within an optimized pit shell

and meet the test of reasonable prospects for economic extraction.

Zonia Project Overview

Figure 1: Location map of Zonia Project. Source: World Copper Ltd. (CNW

Group/Electric Royalties Ltd.)

History

The Zonia Copper Oxide Project in central

Arizona

has been held under private ownership for almost

100 years and has undergone extensive historical exploration, metallurgical studies and mine

development planning. Much of the mineralized area was pre-stripped during previous open-pit

mining operations in 1966, at which time, 17 million tons were mined with 7 million tons stacked on

heap leach pads, producing cement copper until 1975. The property has been drill-tested with

almost 700 drill holes (60,000 metres (m)). This high-density drilling covers 30% of the property and

defines the current resource estimate, reducing technical risk on the deposit. Mineralization is mostly

open to the northeast, providing considerable opportunity to grow the resource.

Geology

The Zonia deposit is a highly oxidized, supergene enriched, porphyry deposit, located at surface.

Oxidation of the original chalcopyrite mineralization and younger secondary supergene chalcocite has

been pervasive and deep, extending down over

250 m

in the central part of the deposit. The original

pyrite-chalcopyrite sulphide mineralization underwent oxidation and remobilization which resulted in

development of chalcocite-rich lenses. This supergene mineralization was subsequently oxidized and

partly remobilized due to uplift, erosion, and lowering of the water table, resulting in a large deposit

of in-situ and transported copper oxide mineralization. Oxide copper deposits such as Zonia are

particularly suitable to low-cost heap leaching extraction methods, and also offer the potential to

generate pure copper cathode on site, without the need for costly transportation of concentrate to

smelters.

Figure 2: Core from drill hole RRC09-27 grading 11.12% copper over 8.5 feet (2.6 m). Supergene

chalcocite, copper pitch oxide rim, chrysocolla, malachite. Source: World Copper Ltd. (CNW

Group/Electric Royalties Ltd.)

Mining and Processing

The Zonia project would employ open pit mining with a conventional copper acid heap leach system.

The mineralized material would be crushed in a three-stage crushing circuit to a nominal P80 size of

25 millimetres (mm). The crushed material would be agglomerated with acid containing solutions

using either raffinate or fresh sulphuric acid, and then be delivered to the heap via conveyors then

stacked in 10-m lifts with a radial stacker. The heap is designed to contain up to 10 lifts for a

maximum height of

100 m

, each with an interlift liner.

The SX circuit consists of two extraction stages and one stripping stage using a conventional

mixer/settler arrangement. The electrowinning (EW) circuit consists of two parallel banks of 50 poly-

cement cells with

1 m

cathodes. The plated copper cathodes are stripped using a mechanized

stripping system after being washed. Copper cathodes are then sampled and bundled for shipment.

Good copper extractions were achieved from the majority of the metallurgical samples at Zonia, and

range from 59% to 81% in a 91-day locked cycle column leach test (excluding the high sulphide and

low grade samples). The copper extraction from the master composite sample, with a nominal P80

size of 25 mm, was 77.8%. The overall copper extraction based on the total copper assay (% TCu)

for the deposit is estimated to be between 71% and 75%. For pit optimization, copper recovery has

been assigned based on mineral type with copper oxide minerals at 73%, secondary copper

sulphides at 70% and primary copper sulphides at 0%.

Exploration

There is ample opportunity to increase the mine life through successful exploration. There is a

compelling target to the northeast of the deposit location. The Zonia Norte target is defined by

surface rock sampling and forms a copper-molybdenum anomaly approximately

1,500 m

2,500 m

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 (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 19 royalties, including one royalty that currently

generates 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.

_______________________

https://www.mckinsey.com/industries/metals-and-mining/our-insights/the-raw-materials-challenge-how-the-metals-and-mining-sector-will-be-at-the-core-of-enabling-the-energy-transition

2 Technical report titled "ZONIA COPPER PROJECT, NI 43-101 Technical Report, Yavapai County, Arizona USA", effective November 30, 2015 and dated October, 2017 ("Amended Technical Report"),

prepared by Tetra Tech and posted under Cardero Resource Corp.'s profile at www.sedar.com.

3 Preliminary Economic Assessment NI 43-101 technical report titled "ZONIA COPPER PROJECT, NI 43-101 Technical Report, Yavapai County, Arizona USA", effective March 22, 2018 and dated April 17,

2018, prepared by Global Resource Engineering Ltd. and posted under Cardero Resource Corp.'s profile at www.sedar.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