Gold Royalty Corp. (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months and six months ended June 30, 2023. The Company will be hosting an Investor Webcast to discuss these results and update on Friday, August 11 at 10:00 AM EDT. All amounts are expressed in U.S. dollars unless otherwise noted.

David Garofalo, Chairman and CEO of Gold Royalty, commented: “We have maintained our 2023 financial guidance and are encouraged by the expected near-term organic cash flow growth of our portfolio with assets such as Cote and Odyssey on the cusp of entering and ramping up production. Our team has continued to execute our growth strategy in a disciplined manner, having recently announced the agreement to acquire the Cozamin royalty while simultaneously achieving a 30% decrease in quarterly cash operating expenses year over year. We expect a strong second half of 2023 with increased production from Canadian Malartic, initial revenues from Cozamin, and Cote nearing completion of construction.”

Highlights for the three and six months ended June 30, 2023, include:

• Adjusted Net Loss Per Share* for the second quarter of 2023 was unchanged at $0.02 per share compared to the comparative period as lower Total Revenue and Land Agreement Proceeds in the second quarter 2023 were partially offset by an over 30% decrease in Cash Operating Expenses.
• Total Revenue and Land Agreement Proceeds* in the second quarter were lower than expected primarily due to resequencing of production at the Barnat Pit at Canadian Malartic. Full year Total Revenue and Land Agreement Proceeds* guidance of $5.5 million to $6.5 million is maintained as the shortfall in revenue from Canadian Malartic is expected to be substantially recovered in the second half of the year.
• On July 31, 2023, the Company announced it has entered into an agreement to acquire a 1% royalty on portions of the’ producing Cozamin copper-silver mine in Mexico operated by Capstone Copper Corp. Completion of the transaction is subject to customary closing conditions.
• The Company generated two new royalties through the royalty generator model and has now created 37 royalties through the royalty generator model since 2021.

The following table sets forth selected financial information for the three and six months ended June 30, 2023:

For further detailed information, please refer to the Company’s unaudited condensed interim consolidated financial statements and management’s discussion and analysis, for the three and six months ended June 30, 2023, copies of which are available under the Company’s profile at www.sedar.com and www.sec.gov.

Outlook

Management currently believes the Company is on track to meet its previously disclosed forecast of $5.5 million and $6.5 million in total revenues and land agreement proceeds in 2023 based on the production guidance published to date by the operators of the properties underlying the ‘Company’s interests, a forecasted gold price ranging from $1,700 to $2,000 per ounce and expected payments from land agreements. The Company expects to incur $7.0 to $8.0 million in recurring cash operating expenses in 2023 (forecasted operating expenses, excluding transaction-related and other non-recurring expenses) which remains unchanged as well. The Company currently expects that it will  generate positive net operating cash flow in 2024 (forecasted operating cash flow before movement in non-cash working capital adjusted for land agreement proceed credited against mineral properties) when select key growth projects are expected to ramp up in production, including the long-life cornerstone mines at Côté and Odyssey.

The foregoing projected outlook constitutes “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws and is intended to provide information about management’s current expectations for the Company’s 2023 fiscal year. Although considered reasonable as of the date hereof, such outlook and the underlying assumptions may prove to be inaccurate. Accordingly, actual results could differ materially from the Company’s expectations as set forth herein.

In preparing the above outlook, management assumed, among other things, that the operators of the projects underlying the Company’s royalties will meet expected production milestones and forecasts for the applicable period and that operators of land agreements will elect to make all expected payments over the period. See “Forward-Looking Statements”.

Portfolio Update

• Odyssey Project (3.0% NSR over the northern portion of the project): On June 20, 2023, Agnico Eagle Mines Limited provided an update on the Canadian Malartic Complex including the details of an updated internal study. The updated internal study outlined an improved production profile and opportunities to add production in years 2025 to 2028. Recent positive drill results in the Odyssey internal zones indicate the potential for further increases in production during the 2023-2028 transition period.
• Côté Gold Project (0.75% NSR royalty over the southern portion of the project): On May 11, 2023, IAMGOLD Corporation disclosed that, as of March 31, 2022, the Côté Gold Project was estimated to be approximately 80% complete. Additionally, on May 16, 2023, IAMGOLD disclosed a $400 million loan term financing deal with Oaktree Capital Management and outlined that construction of the large-scale, long life Côté Gold Project was on-track and on-budget to commence production in early 2024.
• Ren Project (1.5% NSR royalty and 3.5% NPI): On May 3, 2023, Barrick Gold Corporation reported their first quarter results and mentioned significant financial investments in equipment and development including portals at Ren that will boost productivity and mineralization development, alongside a new paste plant at Goldstrike. On August 8, 2023, Barrick reported their second quarter results and outlined that exploration had progressed at significant brownfields opportunities at Carlin. Barrick further outlined that drilling continues to confirm potential discoveries across the exploration pipeline in the Nevada Complex.
• Fenelon Gold Project (2.0% NSR royalty over the majority of the project): On June 26, 2023 Wallbridge Mining Company Limited delivered a positive Preliminary Economic Assessment for the Fenelon Gold Project. The PEA outlined a 12.3 year mine life with average annual gold production of 212,000 ounces. For further information regarding the PEA, please refer to Wallbridge’s news release dated June 26, 2023.
• Granite Creek Mine Project (10.0% NPI): On July 11, 2023, i-80 Gold Corp provided a comprehensive update on its operations including development and exploration activities at Granite Creek. i-80’s disclosed that its focus has shifted to the Ogee Zone at Granite Creek with positive grade reconciliation, increased mining rates and increasing production. i-80 is also accelerating infrastructure development to access the high-grade South Pacific Zone as Granite Creek progresses towards full commercial production.
• Whistler Gold-Copper Project (1.0% NSR): On May 30, 2023, U.S. GoldMining Inc. announced that following the successful completion of its initial public offering in April 2023 which raised gross proceeds of US$20 million, US GoldMining has approved its 2023 exploration program and budget for the Whistler gold-copper project. It further disclosed that Phase 1 of its inaugural exploration program has commenced with field crews undertaking rehabilitation work on the existing camp which will enable the commencement of core drilling, mine engineering and environmental baseline studies later in the 2023 summer field season.

Royalty Generation Model Update

The Company’s Royalty Generator Model had a productive quarter with two new royalties during the quarter. The Company has now generated 37 royalties since the acquisition of Ely Gold Royalties in 2021 through this model. Details of the new royalties generated during the quarter are as follows:

• The Quarter Horse property was sold to First Majestic with Gold Royalty retaining a 0.75% NSR royalty over the property.
• The Goldfield West property was sold to Centerra Gold Inc with Gold Royalty retaining a 2.0% NSR royalty over the property.

The Company currently has 31 properties for land agreements and 7 properties under lease and expects to generate $3.2 million in land agreement proceeds in 2023 assuming all land option agreements are exercised. The model continues to be a low-cost portion of the business with only $81,000 spent on mineral interests maintenance expense during the first half of 2023.

About Gold Royalty Corp.

Gold Royalty Corp. is a gold-focused royalty company offering creative financing solutions to the metals and mining industry. Its mission is to invest in high-quality, sustainable, and responsible mining operations to build a diversified portfolio of precious metals royalty and streaming interests that generate superior long-term returns for our shareholders. Gold Royalty’s diversified portfolio currently consists primarily of net smelter return royalties on gold properties located in the Americas.

Qualified Person

Alastair Still, P.Geo., Director of Technical Services of the Company, is a “qualified person” as such term is defined under Canadian National Instrument 43-101 and has reviewed and approved the technical information disclosed in this news release.