Metalla Royalty & Streaming Ltd. (NYSE American: MTA) (TSX-V: MTA) is pleased to announce it has entered into a purchase and sale agreement with Morgan Stanley Capital Group, Inc. (NYSE: MS) to acquire an existing 27.5% price participation royalty interest on Karora Resources Inc.’s (TSX: KRR) operating Higginsville Gold Operations for‎ total consideration of up to US$6.5 million in common shares of Metalla.

Brett Heath, President & CEO of Metalla commented, “This transaction provides shareholders exposure to immediate cash flow from a highly regarded emerging gold district Higginsville, being advanced by Karora Resources. Karora has gone through an impressive turnaround and is now one of the premier intermediate producers in Western Australia. Karora Resources is planning to deliver the first meaningful exploration program at Higginsville in well over a decade, and we see strong potential for further high-grade discoveries ^(1,2).”

TRANSACTION STRUCTURE

Metalla has agreed to acquire the Royalty from Morgan Stanley for a total purchase price of up to US$6.5 million. The Royalty is a 27.5% price participation royalty interest⁽⁷⁾ on the difference between the London pm fix gold price and A$1,340/oz gold price on the first 2,500 ounces per quarter for a cumulative total of 34,000 ounces of gold. Metalla will satisfy the consideration for the Royalty by issuing Metalla Shares representing up to US$6.5 million in value based on the fifteen (15) trading day volume-weighted average price on the NYSE American prior to closing, less any royalty payments received by Morgan Stanley prior to the closing date of the transaction. The transaction is subject to other customary closing conditions, including obtaining the requisite TSXV and NYSE American approvals, Foreign Investment Review Board approval from the Government of Australia. The transaction is expected to close in the fourth quarter of 2020.

HIGGINSVILLE GOLD OPERATIONS ⁽¹⁾⁽²⁾

Higginsville is a low-cost open pit gold operation in Higginsville, Western Australia, located less than 100 km south of the Kalgoorlie Super Pit. Higginsville has been in intermittent production since 1990, producing more than 1M oz of gold from the expansive 180,000 ha property package. The Royalty covers the core part of property with the majority of all the active operations and near-term development projects spanning 28,300 ha.

In the first half of 2020, Higginsville produced 14,907 ounces at 1.87 g/t for a cash cost of US$923/oz from its 1.4Mtpa processing plant⁽²⁾. Production at Higginsville is currently sourced from the Baloo, and Fairplay North open pits with mining at Hidden Secret and Mousehollow open pits to commence within the third quarter of 2020. Karora recently reissued its guidance for 2020 at Higginsville & Beta Hunt, where it anticipates producing a consolidated 90 – 95koz of gold with a long term 50:50 mill feed ratio between the two mines.

Karora is currently undergoing a A$10 million exploration and development drilling program during fiscal 2020 at Higginsville, focusing on extending mining activities at Baloo and Fairplay North through infill and extensional drilling⁽²⁾. Resource drilling at the permitted Pioneer deposit is ongoing to advance the project towards production and aid in increasing mill feed as the Higginsville pipeline of open pit projects continues to grow. High priority exploration targets in Higginsville include Aquarius, Hidden Secret, Mousehollow, Pioneer, Two Boys, Paleochannel extensions, and Barcelona. Karora expects to release an updated reserve & resource estimate in Q4 2020.⁽²⁾

ROYALTY MAP

The Royalty covers the majority of the Higginsville tenements, including Aquarius, Hidden Secret, Mousehollow, Pioneer, Two Boys, Jupiter, Challenge, Mitchell, Aphrodite, Fairplay North, Poseidon South, Graveyard, Trident, the Paleochannel extensions, and a significant exploration package. The Royalty does not cover the Baloo open pit.

HIGGINSVILLE HISTORICAL RESERVES & RESOURCES ^{(1)(2)(3)(4)(5)(6)}

QUALIFIED PERSON

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, geologist M.Sc., member of the Association of Professional Geoscientists of Ontario and the Ordre des Géologues du Québec and a consultant to Metalla. Mr. Beaudry is a Qualified Person as defined in National Instrument 43-101 Standards of disclosure for mineral projects.

ABOUT METALLA

Metalla was created for the purpose of providing shareholders with leveraged precious metal exposure by acquiring royalties and streams. Our goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. Our strong foundation of current and future cash-generating asset base, combined with an experienced team, gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle.