Metalla Royalty & Streaming Ltd. (TSX-V: MTA) (NYSE American: MTA) announces its operating and financial results for the three months ended March 31, 2023. For complete details of the condensed interim consolidated financial statements and accompanying management’s discussion and analysis for the three months ended March 31, 2023, please see the Company’s filings on SEDAR (www.sedar.com) or EDGAR (www.sec.gov). Shareholders are encouraged to visit the Company’s website at www.metallaroyalty.com.

Brett Heath, President, and CEO of Metalla, commented, “During the first quarter we received stronger than expected production from Wharf and El Realito along with several exciting portfolio updates. We are also very pleased with the continued support of Beedie Capital securing an amendment for an expanded and extended convertible loan facility. We look forward to the balance of 2023, attracting more high-quality third-party assets.” 

FINANCIAL HIGHLIGHTS

During the three months ended March 31, 2023, and the subsequent period up to the date of this news release, the Company:

• Acquired 1 stream and 5 royalties, to bring the total held as at the date of this press release to 85 precious metals assets, through the following transactions:
  1. Acquired an existing 2.5%-3.75% sliding scale Gross Proceeds royalty over gold, together with a 0.25%-3.0% Net Smelter Return royalty on all non-gold and silver metals on the majority of Barrick Gold Corporation’s world-class Lama project in Argentina, from an arm’s length seller for aggregate consideration of $7.5 million. The transaction closed on March 9, 2023, at which time the Company paid the $2.5 million in cash, and issued 466,827 common shares of the Company to the seller (valued at $5.3553 per share). The remaining $2.5 million, to be paid in cash or common shares, is payable within 90 days upon the earlier of a 2 Moz gold Mineral Reserve estimate on the royalty area or 36 months after the closing date;
  2. Acquired one silver stream and three royalties from Alamos Gold Corp. for $5.0 million in common shares of Metalla valued at $5.3228 per share, representing the 20-day Volume-Weighted Average Price of shares of Metalla traded on the NYSE prior to the announcement of the transaction. The transaction closed on February 23, 2023, at which time the Company issued 939,355 common shares of the Company to Alamos. The stream and royalties acquired in this transaction include:

• • • a 20% silver stream over the Esperanza project located in Morales, Mexico owned by Zacatecas Silver Corp.;
    • a 1.4% NSR royalty on the Fenn Gibb South project located in Timmins, Ontario owned by Mayfair Gold Corp.;
    • a 2.0% NSR royalty on the Ronda project located in Shining Tree, Ontario owned by Platinex Inc.; and
    • a 2.0% NSR royalty on the Northshore West property located in Thunder Bay, Ontario owned by New Path Resources Inc.
• For the three months ended March 31, 2023, received or accrued payments on 927 attributable Gold Equivalent Ounces at an average realized price of $1,836 and an average cash cost of $5 per attributable GEO (see Non-IFRS Financial Measures);
• For the three months ended March 31, 2023, recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.0 million, net loss of $1.4 million, and Adjusted EBITDA of $0.6 million (see Non-IFRS Financial Measures);
• For the three months ended March 31, 2023, generated operating cash margin of $1,831 per attributable GEO, from the Wharf, El Realito, La Encantada, the New Luika Gold Mine stream held by Silverback Ltd.  the Higginsville derivative royalty asset, and other royalty interests (see Non-IFRS Financial Measures);
• For the three months ended March 31, 2023, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $0.7 million (see Non-IFRS Financial Measures);
• On May 27, 2022, the Company announced that it had entered into a new equity distribution agreement with a syndicate of agents to establish an ATM equity program under which the Company may distribute up to $50.0 million (or the equivalent in Canadian Dollars) in common shares of the Company. From inception to the date of this press release, the Company distributed 1,078,079 common shares under the 2022 ATM Program at an average price of $5.20 per share for gross proceeds of $5.6 million;
• On May 11, 2023, the Company entered into a second supplemental loan agreement with Beedie Capital, expected to be effective March 31, 2023, once customary conditions are satisfied, to amend its loan facility by:

1. extending the maturity date to May 9, 2027;
2. increasing the loan facility by C$5.0 million from C$20.0 million to C$25.0 million, of which C$21.0 million will be undrawn after giving effect to the C$4.0 million conversion described below;

• increasing the interest rate from 8.0% to 10.0% per annum;

11. amending the conversion price of the fourth drawdown from C$11.16 per share to C$8.67 per share, being a 30% premium to the 30-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment;
12. amending the conversion price of C$4.0 million of the third drawdown from C$14.30 per share to C$7.33 per share, being the 5-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment, and converting the C$4.0 million into shares at the new conversion price.  The Company will issue Beedie 545,702 common shares of the Company for the conversion of the C$4.0 million once customary conditions are satisfied;
13. amending the conversion price of the remaining C$1.0 million of the Third Drawdown from C$14.30 per share to C$8.67 per share, being to the 30-day VWAP of the Company shares measured at market close on the day prior to announcement of the amendment; and

• All other terms of the loan facility remain unchanged.

• On March 30, 2023, the Company signed an amendment with the arm’s length seller of the Castle Mountain royalty to extend the maturity date of the $5.0 million loan from June 1, 2023, to April 1, 2024.  As part of the amendment, on March 31, 2023, the Company paid all accrued interest on the loan, and effective April 1, 2023, the interest rate increased to 12.0% per annum, and the principal and accrued interest will be repaid no later than April 1, 2024.

ASSET UPDATES

Below are updates during the three months ended March 31, 2023, and subsequent period to certain of the Company’s assets, based on information publicly filed by the applicable project owner:

La Encantada

On April 20, 2023, First Majestic Silver Corp. announced production of 89 ounces of gold in the first quarter of 2023 from La Encantada. Silver production for the mine totaled 0.84 Moz, and 2023 guidance is in the range of 2.9 – 3.2 Moz silver. First Majestic also completed 1,863 meters of drilling on the property with the use of two underground rigs. First Majestic will continue to advance mining at La Encantada towards the Ojuelas and Beca-Zone orebodies to extract higher-grade ores during the quarter to further improve overall production.

On March 31, 2023, First Majestic declared Probable Reserves of 13.6 Moz at 133 g/t silver, and total Measured and Indicated Resources of 31.6 Moz at 148 g/t silver at La Encantada with an effective date of December 31, 2022.

Metalla holds a 100% GVR royalty on gold produced at the La Encantada mine limited to 1.0 Koz annually.

El Realito

On April 27, 2023, Agnico Eagle Mines Ltd. reported that gold production from La India totaled 16,321 oz gold for the first quarter of 2023. Mine production levels for the first quarter were good with grades higher than target. Changes are underway to improve the leach kinetics of the heap leach pads at the mine. An investigation is ongoing for additional sulphide mineralization with a plan to drill 4,000 meters at the Chipriona target which is northwest and adjacent to El Realito royalty boundary.

Metalla holds a 2.0% NSR royalty on the El Realito deposit which is subject to a 1.0% buyback right for $4.0 million.

Wharf Royalty

On February 22, 2023, Coeur Mining Inc. reported fourth quarter production of 19.9 Koz gold at 0.65 g/t, in line with full year guidance for Wharf disclosed by Coeur on February 16, 2022. Coeur has guided 2023 production to be in the range of 85 – 95 Koz. Successful exploration and infill drilling during the year allowed for a 7% increase, net of depletion, at Wharf where Proven & Probable Reserves totaled 908 Koz gold at 0.027 oz/t (0.84 g/t). Additionally, a total of 293 Koz gold at 0.02 oz/t (0.62 g/t) of Measured & Indicated Resources, and Inferred Resources stand at 63 Koz gold at 0.02 oz/t (0.62 g/t), were declared at Wharf. Exploration efforts in 2023 will focus on geological modelling and planning for 2024.

Metalla holds a 1.0% GVR royalty on the Wharf mine.

New Luika Silver Stream

On April 24, 2023, Shanta Gold Limited reported that it produced 15.3 Koz of gold at its NLGM in Tanzania in the first quarter of 2023. On February 27, 2023, Shanta announced the extension of the mine life at NLGM through to Q1 2028 through the increase in Mineral Reserves at the mine. Total Proven & Probable Mineral Reserves at NLGM now stand at 394 Koz at 2.85 g/t gold, with Measured & Indicated Resources at 764 Koz at 2.78 g/t gold. In addition, a tailings retreatment project at NLGM contributed an additional 48 Koz of recoverable gold and extends the NLGM operating life to at least February 2031.

Metalla holds a 15% interest in Silverback, whose sole business is receipt and distribution of a 100% silver stream on NLGM at an ongoing cost of 10% of the spot silver price.

Wasamac

On April 27, 2023, Agnico reported that prior to the closing of the transaction to acquire Yamana Gold Corp.’s Canadian assets, Yamana completed 29 drill holes totalling 14,673 meters at Wasamac which yielded a significant intercept of 4.7 g/t gold over 54.1 meters.

On February 16, 2023, Agnico reported they are reviewing the technical aspects of the project with a focus on processing ore at the Canadian Malartic mill, which is expected to reduce the project footprint and capital cost. An internal evaluation of the project is expected in the fourth quarter of 2023 and Agnico expects the project has the potential to produce 200 Koz gold annually.

Metalla holds a 1.5% NSR royalty on the Wasamac project subject to a buy back of 0.5% for C$7.5 million.

Garrison

On April 11, 2023, Moneta Gold Inc. announced the results of assays from historical drill core at Garrison. The sampling confirmed the continuity and extension of gold mineralized zones not currently included in the latest Mineral Resource estimate. Significant results include 1.87 g/t over 18 meters and 1.58 g/t gold over 18.5 meters at Garrcon and 13.5 g/t gold over 3.2 meters and 4.79 g/t gold over 3.75 meters at Jonpol.

On September 7, 2022, Moneta announced positive results for a PEA for the Tower Gold Project envisioning a 19,200 tpd combined open pit and underground mining operation with strong economics. Average annual gold production over the first eleven years is expected to be 368 Koz gold with the majority of the ounces in the first five to six years sourced from the Garrison open pit.

Metalla holds a 2.0% NSR royalty on the Garrison project.

Amalgamated Kirkland Property

On April 27, 2023, Agnico reported infill drill results from the Amalgamated Kirkland deposit featuring highlights of 14.7 g/t gold over 5.3 meters and 13.0 g/t gold over 4.9 meters. The AK deposit remains open toward the west and vertically along the west fringe.

On February 16, 2023, Agnico reported it is evaluating the potential to source additional production from Amalgamated Kirkland to be processed at either Macassa or at the LaRonde complex. Agnico is evaluating the potential to produce between 20 Koz to 40 Koz of gold per year from the AK deposit commencing in 2024.

Metalla holds a 0.45% NSR royalty on the Amalgamated Kirkland property.

Endeavor

On March 28, 2023, Polymetals Resources Ltd. announced the execution of a share sale and purchase agreement in relation to the proposed acquisition of all of the issued share capital of Orana Minerals Pty Ltd., which is the sole shareholder of Cobar Metals Pty Ltd. Cobar Metals has in turn entered into an agreement to purchase the Endeavor lead, zinc and silver mine in Australia via the acquisition of three project companies, including Cobar Operations Pty Ltd.  Completion of Polymetals acquisition of Orana Minerals Pty Ltd. is subject to approval of Polymetals shareholders, with the meeting scheduled for May 12, 2023.  As part of Polymetals proposed acquisition of the Endeavor mine, the Company has entered into an agreement with the holder of the Endeavor mining tenements, Cobar Operations, by which the Company will convert its 100% silver stream in the Endeavor mine to a 4.0% NSR royalty on all lead, zinc and silver produced from those tenements, and the closing of that agreement is pending.

On April 17, 2023, Polymetals announced the results of six drill holes completed on Endeavor, highlighted by 19.5% zinc Equivalent over 81 meters and 14.6% ZnEq over 52 meters at the North lode. Polymetals announced it is focused on various aspects of the Endeavor mine with a view to recommencing operations. On April 25, 2023, Polymetals released additional results from drilling at the South Lode at Endeavor, highlights included 11.02% ZnEq over 71 meters.

Côté-Gosselin

On February 2, 2023, and February 16, 2023, IAMGOLD Corporation reported that it had completed 73% of the construction at the Côté Gold Project and drill results received for the 2022 drill program continue to highlight the resource expansion potential of the Gosselin deposit both to the south of the recently declared 5Moz Resource estimate and at depth. Significant intercepts include 1.99 g/t gold over 342.2 meters, 1.29 g/t gold over 313 meters, 1.5 g/t gold over 181 meters and 0.66 g/t gold over 388.5 meters. Additional technical studies are planned to complete metallurgical test work and mining and infrastructure studies to review alternatives to optimize the inclusion of Gosselin into future Côté life-of-mine plans.

Metalla holds a 1.35% NSR royalty that covers less than 10% of the Côté Reserves and Resources estimate and covers all of the 5 Moz gold Gosselin Resource estimate.

Fifteen Mile Stream

On April 27, 2023, St. Barbara Limited reported a revised permitting timeline for Fifteen Mile Stream which targets development in fiscal 2026. In addition, St. Barbara will investigate repurposing the Touquoy processing facility for use at Fifteen Mile Stream to lower capital and construction cost.

Metalla holds a 1.0% NSR royalty on the Fifteen Mile Stream project, and 3.0% NSR royalty on the Plenty and Seloam Brook deposits.

Fosterville

On April 27, 2023, Agnico reported that gold production from Fosterville for the first quarter of 2023 totalled 86 Koz gold. At the tail end of the quarter, drilling began at the lower end of the Lower Phoenix/Swan zone where drilling will also target the newly discovered Cardinal structure in the hanging wall of the Swan Zone. During 2023, Agnico plans to spend $20.8 million for 105,300 meters of drilling, and development of exploration drifts to replace Mineral Reserve depletion and to add Mineral Resources in the Lower Phoenix, Cygnet and Robbins Hills areas. Agnico will spend another $4.4 million for 11,300 meters of underground and surface exploration with the aim of discovering addition high-grade mineralization at Fosterville.

Metalla holds a 2.5% GVR royalty on the northern and southern extensions of the Fosterville mining license and other areas in the land package.

Lama

On May 3, 2023, Barrick reported that drilling continued during the first quarter of 2023 with one rig testing mineralization concepts at Penelope South and West targets. Total exploration, evaluation and project expenses for the whole Pascua-Lama project totaled $8 million for the first quarter of 2023.

Metalla holds a 2.5%-3.75% GP royalty on gold and a 0.25%-3.0% NSR royalty on all other metals (other than gold and silver) at Lama.

Castle Mountain

On May 3, 2023, Equinox Gold Corp. reported a surface exploration program of geological mapping and channel sampling commenced with the primary goal to sample previously identified mineralization exposed on surface such that data can be used in future Mineral Resource estimation. Sustaining capital expenditures during the quarter were primarily related to work on a water well. A total of $1.4 million was spent on Phase 2 permitting and optimization for the quarter.

On February 23, 2023, Equinox reported that in 2023 it plans to spend $8 million on Castle Mountain phase two optimization, engineering and permitting.

Metalla holds a 5.0% NSR royalty on the South Domes area of the Castle Mountain mine.

Santa Gertrudis

On February 16, 2023, Agnico provided a resource update on the Santa Gertrudis project near Hermosillo, Mexico where Agnico expects to spend $7.3 million for 10,000 meters of drilling in 2023. Measured & Indicated Resources at Santa Gertrudis totaled 516 Koz at 0.91 g/t gold and 2,106 Koz at 3.71 g/t silver. Inferred Resources totaled 1,464 Koz at 2.25 g/t gold and 7,548 Koz at 11.58 g/t silver.

Metalla holds a 2.0% NSR royalty on the Santa Gertrudis project.

Akasaba West

On April 27, 2023, Agnico announced that 670 kt of overburden was removed to date and construction and installation of surface infrastructure was ongoing to bring the Akasaba West project online for early 2024 where it is expected to contribute 12,000 ounces of gold per year to the Goldex operation.

Metalla holds a 2.0% NSR royalty on the Akasaba West project subject to a 210 Koz gold exemption.

Camflo

On April 27, 2023, Agnico reported there are three drill rigs currently investigating near-surface targets at Camflo. On February 16, 2023, Agnico reported the Canadian Malartic partnership has identified porphyry hosted gold mineralization that could potentially be mined via an open pit at the Camflo property and provide tonnage to the Canadian Malartic operation by the end of the decade. Additional studies are underway to fully evaluate the mineralization and additional potential in adjacent rock types. An aggressive drill program of $5 million with 22,000 meters is planned in 2023. The Camflo property covers the past producing Camflo mine which had historical production of approximately 1.6 Moz gold at 5.78 g/t.

Metalla holds a 1.0% NSR royalty on the Camflo mine, located ~1km northeast of the Canadian Malartic operation.

Plomosas

On March 20, 2023, GR Silver Mining announced an updated Mineral Resource estimate for the Plomosas project. At the Plomosas Mine area, total Indicated Resources are 31 Moz at 200 g/t silver equivalent and Inferred Resources are 17 Moz at 175 g/t AgEq. The San Juan-La Colorada Area has an Indicated Resource of 1 Moz at 204 g/t AgEq and an Inferred Resource of 16 Moz at 180 g/t AgEq.

Metalla holds a 2.0% NSR royalty on the Plomosas property subject to a buy back of 1.0% for $1.0 million.

Tower Mountain

On April 25, 2023, Thunder Gold Corp announced they intersected 941 g/t over 1.5 meters with visible gold in the core at the Thunder Gold property. Additional highlights include 0.77 g/t gold over 23 meters and 1.26 g/t gold over 17.5 meters.

Metalla holds a 2% NSR royalty on the Tower Mountain property.

Montclerg

Through press releases dated February 8, 2023, and January 18, 2023, GFG Resources Inc. reported high grade intervals at the Montclerg Gold Project located 48 km east of the Timmins Gold District. Significant intercepts include 8.46 g/t gold over 5 meters and 9.85 g/t gold over 16 meters.

Metalla holds a 1.0% NSR royalty on the Montclerg property.

Detour DNA

On February 16, 2023, Agnico reported the results from step out drilling approximately 2.4 km west of the Detour West pit where a significant drill hole intercepted 2.6 g/t gold over 35.3 meters and 13.7 g/t gold over 3.2 meters.

Metalla holds a 2.0% NSR royalty on the Detour DNA property which is approximately 7 km west of the Detour West reserve pit margin.

Green Springs

On December 9, 2022, Contact Gold Corp. announced it has entered into a $10 million earn-in with Centerra Gold on the Green Springs project. On April 5, 2023, Contact Gold reported a 4,500 meter drill program with a budget of $1.85 million will be conducted at Green Springs.

Metalla holds a 2.0% NSR royalty on the Green Springs project.

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 of the Ordre des Géologues du Québec and a director of Metalla. Mr. Beaudry is a QP as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

ABOUT METALLA

Metalla is a precious metals royalty and streaming company. Metalla provides shareholders with leveraged precious metal exposure through a diversified and growing portfolio of royalties and streams. 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.