Mr. David Cole reports

ELEMENTAL ROYALTY NOTES 32% INCREASE IN RESERVES AT KARLAWINDA WITH EXPANSION COMMISSIONING ON TRACK FOR Q3 2026

Elemental Royalty Corp. has noted the announcement by Capricorn Metals Ltd. of a 32-per-cent increase in mineral reserves at the Karlawinda gold project. Elemental holds an uncapped 2-per-cent net smelter return (NSR) royalty on Karlawinda.

Karlawinda is a cornerstone asset for Elemental, contributing $8.9-million (U.S.) in zero-cost revenue in 2025 prior to completion of the Karlawinda mine expansion project, which is in its final stages of commissioning.

Highlights:

• Significant increase in mineral reserves and mineral resources: Recent drilling at Karlawinda contributed to a 32-per-cent increase in the probable mineral reserve estimate to 76.4 million tonnes at 0.6 gram per tonne gold, containing 1.57 million ounces of gold.
• Additionally, the Karlawinda indicated mineral resource estimate increased by 30 per cent to 124.9 million tonnes at 0.6 gram per tonne gold, containing 2.38 million ounces of gold. Mineral resources are inclusive of mineral reserves.
• Continuing expansion: Capricorn's expansion of the Karlawinda processing plant is nearing completion, with commissioning and transition to full operations expected during the third quarter of 2026.
• Extended mine life: Capricorn reports that the increased mineral reserve supports an approximately 10-year mine life, based on expanded processing capacity of approximately 6.5 million tonnes per annum and anticipated annual gold production of approximately 150,000 ounces.
• Conservative gold-price assumptions: Capricorn used variable gold prices of $2,200 (Australian) to $2,600 (Australian) per ounce for the mineral reserve estimate and a gold price of $2,800 (Australian) per ounce for the mineral resource estimate.
• Increased value for Elemental: The reported mine-life extension and additional mineral resources increase Elemental's exposure to Karlawinda without additional capital contributions from the company.

Elemental chief executive officer David M. Cole commented: "We are pleased to note the substantial increase in mineral reserves reported by Capricorn, which further strengthens the long-term value of our 2-per-cent NSR royalty over Karlawinda. With Capricorn's plant expansion nearing completion and annual production expected to increase to approximately 150,000 ounces, Karlawinda is positioned to remain a cornerstone asset in our portfolio and an important contributor to Elemental's royalty revenue.

"Capricorn's management team has an excellent track record, and we look forward to following its progress towards commissioning."

About Karlawinda

Karlawinda is a producing, open-pit gold mine located approximately 65 kilometres southeast of Newman in the Pilbara region of Western Australia and operated by Capricorn. Production commenced in June, 2021, and Capricorn reports that the mine has produced approximately 564,000 ounces of gold since commissioning. Capricorn is currently completing an expansion designed to increase processing capacity to approximately 6.5 million tonnes per annum and annual gold production to approximately 150,000 ounces.

Recent drilling at Karlawinda, as reported by Capricorn in its announcement titled "Capricorn Gold Reserves Increase to 5.2 Million Ounces" dated July 27, 2026, contributed to an increase in the probable mineral reserve estimate from 1.19 million ounces to 1.57 million ounces of gold, representing an increase of 32 per cent. Capricorn reported that drilling targeted the conversion of inferred mineral resources to indicated mineral resources in areas downdip of the 2024 reserve pit design, enabling conversion of a portion of the mineral resources to probable mineral reserves. The updated mineral reserve estimate is based on 124.9 million tonnes at 0.6 gram per tonne gold, containing 2,382,000 ounces in the indicated category, and 35.1 million tonnes at 0.5 gram per tonne gold, containing 608,000 ounces in the inferred category. Mineral resources are inclusive of mineral reserves.

The updated probable mineral reserve estimate incorporates depletion of approximately 103,000 ounces of gold from mining during the nine months ended March 31, 2026. After accounting for this depletion, the probable mineral reserve increased from 1.19 million ounces to 1.57 million ounces of gold.

Technical disclosure and qualified person

The mineral resource and mineral reserve estimates disclosed in this news release were prepared and reported by Capricorn in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Elemental has not independently verified the underlying data supporting those estimates and is relying on Capricorn's public disclosure in its announcement titled "Capricorn Gold Reserves Increase to 5.2 Million Ounces" dated July 27, 2026, available on Capricorn's website and through the Australian Securities Exchange announcement platform. For purposes of disclosure under National Instrument 43-101, Standards of Disclosure for Mineral Projects, Elemental considers the JORC Code classifications of indicated mineral resources, inferred mineral resources and probable ore reserves to be substantively equivalent to the corresponding categories under the CIM (Canadian Institute of Mining, Metallurgy and Petroleum) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM council, as amended. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The scientific and technical information contained in this news release has been reviewed and approved by Michael Sheehan, an employee of the company and a qualified person as defined in NI 43-101.

About Elemental Royalty Corp.

Elemental is a new mid-tier, gold-focused streaming and royalty company with a globally diversified portfolio of 18 producing assets and more than 200 royalties, anchored by cornerstone assets and operated by world-class mining partners. Formed through the merger of Elemental Altus and EMX, the company combines Elemental Altus's record of accretive royalty acquisitions with EMX's strengths in royalty generation and disciplined growth. This complementary strategy delivers both immediate cash flow and long-term value creation, supported by a best-in-class asset base, diversified production and sector-leading management expertise.

Elemental trades on the Nasdaq Stock Market and on the Toronto Stock Exchange under the ticker symbol ELE.

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