Evolve Royalties Announces Binding Letter of Intent to Acquire a Royalty on the Sunnyside Project
EVOLVE ROYALTIES ANNOUNCES BINDING LETTER OF INTENT TO ACQUIRE
A ROYALTY ON THE SUNNYSIDE PROJECT IN ARIZONA, USA
Adjacent to In-Construction Hermosa Mine
Evolve Royalties Ltd. (“ Evolve” or the “ Company”) (CSE: EVR; OTCQX: EVRYF) is pleased to
announce that it has entered into a binding letter of intent with a private royalty holder (“Royalty
Holder”) setting out the key terms and conditions pursuant to which Evolve will acquire from the
Royalty Holder a 0.5% net smelter returns royalty (the “Sunnyside Royalty”) on production from
claims comprising the Sunnyside Project operated by Barksdale Resources Corp. (“Barksdale”) in
Arizona, United States, for a total consideration of $2.25 million, payable in a mix of cash and
common shares of the Company. The transaction is subject to customary closing conditions,
including due diligence, execution of a definitive agreement and receipt of all required approvals,
and is expected to close in the second quarter of 2026.
The Sunnyside Royalty represents an opportunity for Evolve to acquire copper exploration
optionality at modest cost in an established North American mining jurisdiction. The Sunnyside
Project is located in Santa Cruz County, Arizona, immediately adjacent t o South32 Limited’s
Hermosa Project, where construction of the Taylor zinc -lead-silver deposit is underway. The
Sunnyside Royalty covers ground that hosts multiple sources of geological potential, including the
Triple C target currently being drilled by the operator, Barksdale, as well as exploration potential
extensions onto Sunnyside ground of mineralization from South32’s neighbouring Taylor and
Peake deposits, as described in Barksdale’s public disclosure . Mineralization hosted on adjacent
properties is not necessarily indicative of mineralization hosted on the Sunnyside Project.
“The Sunnyside Royalty fits squarely within Evolve’s strategy of acquiring high-quality royalties on
copper assets in tier -one jurisdictions. What makes Sunnyside particularly attractive is the
multiplicity of geological targets on the royalty ground; from the near surface high-grade copper
mineralization the operator is currently drilling at the Triple C target, to the potential for
extensions of South32’s neighbouring Taylor and Peake deposits onto Sunnyside. As Barksdale
continues to drill and expand its understanding of these targets, Evolve will participate in that
upside and exploration success through its royalty.” said Joseph de la Plante, President & CEO of
Evolve.
Vancouver, British Columbia – May 14, 2026
(All amounts in United States dollars unless otherwise noted)
TRANSACTION DETAILS
Under the terms of the letter of intent, Evolve proposes to acquire the Sunnyside Royalty for a
total consideration of $2.25 million, to be paid in two instalments, the first of which will be $0.5
million in cash and common shares having an aggregate value of $0.75 million payable on closing,
and the second of which will be $0.5 million in cash and common shares having an aggregate
value of $0.5 million payable in the first quarter of 2027. The number of common shares to be
issued to the Royalty Holder will be established based on U.S. dollar equivalent of the volume
weighted average price of the common shares in Canadian dollars on the Canadian Securities
Exchange for the five consecutive trading days immediately preceding the date on which the
definitive agreement is entered into. The issuance of common shares pursuant to the transaction
remains subject to approval of the Canadian Securities Exchange.
SUNNYSIDE PROJECT HIGHLIGHTS
• Located in the Santa Cruz County, Arizona, approximately 80 kilometres southeast of
Tucson, in an established North American mining jurisdiction.
• Immediately adjacent to South32 Limited’s 100% -owned Hermosa mine, comprising the
Taylor zinc-lead-silver deposit (currently in construction), the Clark zinc-manganese-silver
deposit, and the Peake copper -lead-zinc-silver exploration target. According to public
disclosure by Barksdale, drill results from Sunnyside indic ate that Taylor mineralization
potentially extends onto Sunnyside ground, and South32 has reported that the Peake
deposit may form part of the broader Taylor system, providing additional sour ces of
potential deeper, higher-grade copper mineralization on the royalty ground.
• Barksdale is currently advancing a Phase II drill program at Sunnyside focused on the Triple
C target, located within the broader Chalcocite Zone. In its news release dated May 4,
2026, Barksdale reported assay results from the first four holes of its 2026 reverse
circulation drill program, including two reported drill intercepts of 0.93% copper over
60.96 metres and 0.90% copper over 60.96 metres, as well as a higher -grade interval of
2.75% copper and 73.5 g/t silver over 3.05 metres in hole SUN26-001R.1
• According to the operator, copper isotope work has confirmed that the near surface
chalcocite mineralization intercepted in drilling at the Chalcocite Zone is hypogene in
origin, consistent with a primary porphyry copper system rather than a secondary
supergene enrichment blanket.
1 Source: Barksdale Resources Corp. news release dated May 4, 2026 titled: “Barksdale Intersects High Grade
Porphyry Copper Mineralization, Including Two Intervals of 0.93% Cu and 0.90% Cu over 60.96 Metres Respectively
on Flagship Sunnyside Project”.
THIRD-PARTY TECHNICAL DISCLOSURE
The scientific and technical information relating to the Sunnyside Project contained in this news
release has been derived from publicly available disclosure of Barksdale Resources Corp. The
Company has not independently verified such information.
QUALIFIED PERSON
The scientific and technical content of this news release has been reviewed and approved by
Vincent Cardin -Tremblay, P .Geo., Chief Operating Officer of the Company, who is a “qualified
person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
CONTACT INFORMATION
For more information about Evolve, please visit www.evolveroyalties.com or contact us:
Joseph de la Plante, President & CEO
+1 514 546 1070
ABOUT EVOLVE
Evolve Royalties Ltd. is a royalty and streaming company focused on acquiring high -quality
royalties in base and critical metals that support electrification and the global energy transition.
The Company’s strategy is to build a diversified portfolio of long-life cash-flowing royalties while
maintaining exposure to long-term commodity upside. The Company’s common shares are listed
and posted for trading on the Canadian Securities Exchange under the symbol “CSE: EVR” and on
the OTCQX Best Market under the sy mbol “OTCQX: EVRYF”. For more information please visit:
www.evolveroyalties.com or the Company’s profile on SEDAR+ at www.sedarplus.ca.
Evolve Royalties Ltd.
550 Burrard Street, Suite 2900
Vancouver, British Columbia V6C 0A3
www.evolveroyalties.com
FORWARD-LOOKING STATEMENTS
This news release contains “forward -looking information” and “forward -looking statements”
(collectively, “forward-looking statements”) within the meaning of applicable securities laws,
which may include, but are not limited to, the completion of the Sunnys ide Royalty acquisition,
as well as other statements with respect to future events or future performance. All statements
in this news release, other than statements of historical fact, that address events or developments
that Evolve expects to occur, are forward -looking statements. Forward -looking statements are
generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”,
“intends”, “estimates”, “projects”, “potential”, “scheduled” and similar expressions, or that events
or conditions “will”, “would”, “may”, “could” or “should” occur. Certain forward -looking
statements may also constitute “financial outlook” within the meaning of applicable securities
laws.
Forward-looking statements, including financial outlook, are based on Evolve’s assumptions and
information available as of the date of this news release. Although Evolve believes the
expectations expressed in such forward -looking statements are based on re asonable
assumptions, such statements are not guarantees of future performance and actual results may
differ materially from those in forward -looking statements. Forward -looking statements are
subject to known and unknown risks, uncertainties and other fac tors that may cause the actual
results to be materially different from those expressed or implied by such forward -looking
statements, including but not limited to: completion of the Sunnyside Royalty acquisition on the
terms and timeline currently contempl ated, including the satisfaction or waiver of closing
conditions and the receipt of all required approvals; the impact of general business and economic
conditions; the absence of control over mining operations from which Evolve will receive royalty
payments and risks related to those mining operations, including risks related to international
operations, government and environmental regulation (including changes in laws, regulations,
taxation and permitting regimes, and potential restrictions on the repatri ation of funds), delays
in mine construction and operations and achievement of expansion milestones, actual results of
mining and current exploration activities, conclusions of economic evaluations and changes in
project parameters as plans continue to be refined; accidents, equipment breakdowns, title
matters, labour disputes or other unanticipated difficulties or interruptions in operations; risks
relating to the calculation, timing and receipt of royalty payments and the performance by
counterparties of their obligations under the Sunnyside Royalty; problems inherent to the
marketability of copper, lithium, tin and other metals; the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses; industry conditio ns,
including fluctuations in the price of the primary commodities mined at such operations,
fluctuations in foreign exchange rates and fluctuations in interest rates; government entities
interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects
Evolve; changes in accounting policies, impact of inflation, global liquidity and credit availability,
stock market volatility; regulatory restrictions; liability, competition, loss of key employees,
political risks, acce ss to capital, and other related risks and uncertainties, including those
discussed in the section entitled “Risk Factors” of the Company’s management’s discussion and
analysis for the year ended December 31, 2025 as well as other materials available on th e
Company’s profile on SEDAR+ at www.sedarplus.ca.
Forward-looking statements and financial outlook in this news release are qualified by the
foregoing cautionary statements and are made only as of the date hereof. Evolve expressly
disclaims any obligation to update or revise any forward-looking statements or financial outlook
or the assumptions or factors underlying them, whether as a result of new information, future
events or otherwise, other than as required by applicable law. Readers are cautioned not to place
undue reliance on forward-looking statements and financial outlook.
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.