EMX Royalty Corporation (TSX-V: EMX) (NYSE American: EMX) is pleased to announce the closing of a US$3.79 million strategic investment in Ensero Holdings, Inc. a privately-held Delaware corporation. Ensero Holdings, Inc. operates through its wholly-owned subsidiary Ensero Solutions, Inc. formerly known as Alexco Environmental Group which was previously the wholly-owned environmental services subsidiary of Alexco Resource Corp. Ensero has been a successful and steadily growing environmental consulting practice focused on mine reclamation and the implementation of innovative remediation technologies in the United States and Canada. EMX’s investment in Ensero provides for positive cash flow to the Company from dividend and other payments totaling US$8.54 million over seven years and a 7.5% equity position, as well as the basis for a strategic alliance to identify mineral properties for acquisition, reclamation and subsequent sale.

Commercial Terms Overview. A summary of the commercial terms of EMX’s strategic investment in Ensero includes (all dollar amounts in USD):

• EMX will receive $3.62 million in Ensero Preferred Shares, representing 65% of Ensero’s Preferred Shares, with a 6% annual dividend, paid in quarterly increments over a six-year term. The Preferred Share annual dividends will total $1.30 million to be paid to EMX in years one through six of the Agreement.
• Starting in year six, the Preferred Shares will be redeemed in eight equal, quarterly payments totaling twice the principal amount (i.e., $3.62 million). The Agreement categorizes the eight payments as:
  • A payment of a bonus dividend in year six equal to the original principle, payable in four equal installments, and
  • A redemption of the Preferred Shares in year seven, equal to the original principle, payable in four equal installments.

The Preferred Share bonus dividend and redemption will total $7.24 million to be paid to EMX in years six and seven of the Agreement.

• EMX will receive $171 thousand in Common Shares representing a 7.5% equity holding of Ensero. Anti-dilution provisions will apply for the first two years of the Agreement. EMX Royalty can “put” the Common Shares to Ensero starting in year ten of the Agreement at a mutually agreed valuation.

The Company’s $3.79 million investment in Ensero will result in total payments to EMX of $8.54 million over a seven-year period, with EMX maintaining a substantial equity holding in Ensero as Common Shares.

Strategic Alliance Overview. As an additional component of the Company’s strategic investment in Ensero, EMX and Ensero signed a Strategic Alliance Agreement (the “Strategic Alliance”). Under the Strategic Alliance, the Companies will cooperate in identifying and potentially acquiring mineral properties with exploration and development upside as well as environmental impairments, with the intention to reclaim and subsequently sell said properties utilizing Special Purpose Vehicles or other business arrangements. The Strategic Alliance between EMX and Ensero uniquely leverages a combination of EMX’s deep knowledge of historic mining districts in the U.S. and Canada with Ensero’s mine reclamation expertise to unlock the value of legacy mining properties.

About EMX.

EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies.

About Ensero.

Ensero resulted from Alexco Environmental Group’s executive management purchase of the AEG entity from parent company Alexco Resource Corp. Ensero is an environmental consulting and remediation business with specific expertise in environmental assessments, active/passive water treatment, microbiological testing, radiological services, and turnkey remediation services for the mining industry and other industrial sectors. Ensero employs over 90 professionals in six offices across North America.