Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB: SNTAF) a company focused on the production, development, and exploration of tin, tantalum and niobium, announces that it has entered into a letter of intent with Electric Royalties Ltd. (TSX-V: ELEC) (OTCQB: ELECF) with respect to the proposed grant to Electric Royalties of a gross revenue royalty on the Company’s Penouta tin-tantalum mine in Spain.

Pursuant to the LOI, it is proposed that Electric Royalties will acquire a 0.75 percent gross revenue royalty on the production of the Company’s Penouta mine in consideration for a cash payment of C$1.0 million and the issuance of 500,000 common shares in the capital of Electric Royalties to the Company. Electric Royalties will also have the option for a period of seven months from the closing date of the Proposed Transaction to acquire an additional 0.75 percent royalty at the Penouta mine in consideration for a further cash payment of C$1.25 million. The royalty rates will be reduced to 0.5 percent respectively once C$1.67 million in royalty revenues have been paid to Electric Royalties.

“With our recent record production of 80 tonnes of total concentrate from the Penouta mine in September, and our outlook for continued solid and stable production, we are pleased to announce this Proposed Transaction with Electric Royalties,” commented Jaime Perez Branger, CEO of Strategic Minerals. “The proposed proceeds will be used for further improvements at the mine to increase production and efficiency.”

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to feed the electric revolution.

Electric Royalties has a growing portfolio of 20 royalties, including one royalty that currently generates revenue. Electric Royalties is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.

About Strategic Minerals Europe Corp.

Strategic Minerals’ wholly-owned subsidiary, Strategic Minerals Spain, S.L. produces, identifies, explores, and develops mineral resource properties critical to the green economy, predominantly in Spain. SMS holds permits and a license for the Penouta Project, which allows the Company to produce and conduct exploration, and an investigation permit at the Alberta II Project, allowing it to conduct exploration work already underway. SMS is the largest producer of tin and tantalum in the European Union and has been recognized within the EU as an exemplary company of good practices in the circular economy. The Company is well-positioned as a major producer of sustainable and conflict-free tin, tantalum, and niobium. Strategic Minerals is a “reporting issuer” under applicable securities legislation in the provinces of British Columbia, Alberta, and Ontario.