Gold Royalty Corp. (NYSE American: GROY) is pleased to announce the filing of its operating and financial results for the three months and nine months ended September 30, 2023.

David Garofalo, Chairman and CEO of Gold Royalty, commented: “I am very encouraged by our team’s progress in Q3 2023, having achieved a 48% increase in quarterly Total Revenue and Land Agreement Proceeds* in addition to a 50% decrease in quarterly Cash Operating Expenses* year over year. Our business is currently on track to deliver on our 2023 guidance and poised to break into positive free cash flow in 2024. The recently announced acquisitions of the Cozamin royalty and the SOQUEM royalty portfolio supplement what we believe is one of the strongest organic growth pipelines in the sector. Odyssey, Côté and REN have had positive advancements during the quarter with initial production from Côté expected by its operator in early 2024.”

Highlights for the three and nine months ended September 30, 2023, include:

• Continued decrease in Cash Operating Expenses* for the quarter as a result of the Company’s efforts to reduce costs. Cash Operating Expenses* in the quarter decreased by 50% to $1.6 million from $3.3 million in the comparative period. For the same period total expenses decreased to $2.2 million from $3.7 million.
• Total Revenue and Land Agreement Proceeds* for the quarter increased by 48% to $1.4 million, from $0.9 million in the comparative period. Revenue, under IFRS, was essentially unchanged at $0.8 million in the current quarter. Full year Total Revenue and Land Agreement Proceeds* guidance of $5.5 million to $6.5 million is maintained.
• Adjusted Net Loss Per Share* for the third quarter of 2023 improved to $0.01 per share from $0.03 per share in the comparative period. For the same period net loss per share improved to $0.01 per share from $0.03 per share.
• Cash used in operating activities before movements in working capital improved by 67% to $0.9 million in the third quarter of 2023 from $2.7 million in the comparative period due to higher Total Revenue and Land Agreement Proceeds* and lower Cash Operating Expenses*.
• On August 30, 2023, the Company completed an acquisition of a 1.0% net smelter return royalty on portions of the producing Cozamin copper-silver mine in Mexico operated by Capstone Copper Corp. for a cash consideration of $7.5 million from Endeavour Silver Corp. and its subsidiary.
• On November 2, 2023 the Company announced that it has entered into an agreement to acquire a portfolio of royalties located in Québec from SOQUEM (Société Québécoise d’exploration minière), a subsidiary of Investissement Québec, for C$1 million in common shares of the Company.
• The Company generated 2 new royalties through its Royalty Generator Model and has now created 39 new royalties through this model since 2021.

The following table sets forth selected financial information for the three and nine months ended September 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 nine months ended September 30, 2023, copies of which are available under the Company’s profile at www.sedarplus.ca 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 Revenue 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 cash 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 October 25, 2023, Agnico Eagle Mines Limited issued a news release reporting strong quarterly gold production and provided an update on the Odyssey Project. It disclosed that production via the ramp at the Odyssey South deposit increased through the quarter reaching 3,300 tonnes per day in September, approaching the planned mining rate of 3,500 tpd for 2024. Agnico Eagle stated that the internal zones continue to provide upside in tonnage and grade at Odyssey South and exploration drilling in the quarter focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west.
• Côté Gold Project (0.75% NSR royalty over the southern portion of the project): In a news release dated October 23, 2023 IAMGOLD Corporation disclosed that, as of September 30, 2023, the Côté Gold Project was estimated to be approximately 92% complete and first production is expected to commence in early 2024. It further disclosed that mining activities have built the current ore stockpile to 3.7 million tonnes of material, on track to the target build-up of 5.0 million tonnes by the end of the year.
• Ren Project (1.5% NSR royalty and 3.5% NPI): On September 12, 2023, Barrick Gold Corporation issued a news release that included an update on the embedded growth projects driving value and an expected rise in production. It disclosed that at Carlin, Ren was highlighted as a continued driver of growth with expected increases in resources and a pre-feasibility study targeted for 2026.
• Granite Creek Mine Project (10.0% NPI): In a news release dated October 11, 2023, i-80 Gold Corp provided a development and exploration update on the Granite Creek operation. At Granite Creek, i-80 disclosed that it achieved 592 tons per day of mineralized material production as the operation continues to ramp-up. It stated that mining is focused on the extraction of high-grade gold mineralization in the Ogee Zone while development progresses towards the South Pacific Zone and that the SPZ is host to high-grade gold mineralization located immediately north of the underground mine workings and is expected to become the mine’s main horizon beginning in 2024.
• Cozamin Mine (1.0% NSR over a portion of the mine): In a news release dated November 3, 2023, Capstone reported its third quarter 2023 results including an update on operations at Cozamin. 2023 YTD copper production of 17.8 kt Cu was reported with recoveries and grades consistent with the same period last year. It disclosed that planned exploration work at Cozamin is focused on infill drilling which is expected to support an updated mineral resource estimate in 2024.

Royalty Generation Model Update

The Company’s Royalty Generator Model had a productive third quarter with two new royalties added in. The Company has now generated 39 royalties since the acquisition of Ely Gold Royalties Inc. in 2021 through this model. Details of the new royalties generated during the quarter are as follows:

• The Rays property was sold to Barrick with Gold Royalty retaining a 2.0% NSR royalty over the property.
• The Butte Highlands property was sold to Butte Highlands JV with Gold Royalty retaining a 2.0% NSR royalty over the property.

The Company currently has 31 properties subject to land agreements and 7 properties under lease generating land agreement proceeds. The model continues to incur low operating costs with under $80,000 spent on mineral interests maintenance expense during the third quarter 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.