Mr. David Cole reports

EMX ROYALTY ANNOUNCES SECOND QUARTER 2023 RESULTS

EMX Royalty Corp. has released results for the quarter ended June 30, 2023. The company's filings for the quarter are available on SEDAR, on the United States Securities and Exchange Commission's website and on EMX's website. Financial results were prepared in accordance with international financial reporting standards, as issued by the International Accounting Standards Board. All dollar amounts in this news release are in United States dollars unless otherwise noted.

Highlights

Financial updates for the three months ended June 30, 2023:

• Revenue and other income for the three months ended June 30, 2023, was $3,408,000 compared with $7,034,000 for the three months ended June 30, 2022. Adjusted revenue and other income of $6,481,000 (Q2 2022 -- $9,465,000) included $3,073,000 (Q2 2022 -- $2,431,000) in revenue for the company's share of royalty revenue from the Caserones mine (effective) royalty interest in Chile. Revenue and other income and adjusted revenue and other income for Q2 2022 included the accrual of a $4-million milestone payment related to Gediktepe.
• Net loss for the three months ended June 30, 2023, was $4,722,000 (Q2 2022 -- $3,315,000).
• Cash used in operating activities for the three months ended June 30, 2023, was $1.16-million (Q2 2022 -- $4,152,000). Adjusted cash provided by operating activities for the three months ended June 30, 2023, was $1,294,000 (Q2 2022 -- adjusted cash used in operating activities of $3,254,000). Operating cash flows for Q2 2023 include an accelerated $2.5-million option payment by Aftermath Silver for the Berenguela property.
• As at June 30, 2023, EMX had cash of $9.98-million (Dec. 31, 2022 -- $15,508,000), investments, long-term investments and loans receivable valued at $14,346,000 (Dec. 31, 2022 -- $14,561,000), and loans payable of $41,428,000 (Dec. 31, 2022 -- $40,489,000).

Corporate updates

Timok dispute update

On Jan. 27, 2022, the company announced that it had suspended the filing of a notice of arbitration to Zijin Mining Group Ltd. regarding its royalty agreement covering the Timok project in Serbia, which includes the producing Cukaru Peki copper and gold mine. This suspension followed EMX's previous announcement of its intention to file the notice of arbitration to formally dispute the royalty rate as defined under the royalty agreement. Discussions with Zijin have since proved amicable and productive and continued through Q2 2023. Both companies are expecting to execute a modified royalty agreement in 2023.

Acquisition of additional royalty interest on Caserones

During Q2 2023, EMX acquired an additional 2.263-per-cent ownership in the underlying Caserones royalty holder, Sociedad Legal Minera California Una de la Sierra Pena Negra (SLM), for cash consideration of $3,517,000 pursuant to agreements with existing shareholders of SLM. The acquisition provides EMX with a further 0.044-per-cent (effective) net smelter royalty (NSR) interest in the Caserones property, increasing the company's NSR royalty interest to 0.7775 per cent.

Acquisition agreement for new royalties with Franco-Nevada

During Q2 2023, EMX executed a term sheet with Franco-Nevada Corp. for the joint acquisition of newly created precious metals and copper royalties sourced by EMX. Franco-Nevada will contribute 55 per cent (up to $5.5-million) and EMX will contribute 45 per cent (up to $4.5-million) toward the royalty acquisitions, with the resulting royalty interests equally split (50/50). The initial term of the agreement is for three years, or until the maximum contributions totalling $10-million from both companies have been met, and may be extended if mutually agreed by both companies.

Royalty and royalty generation updates

During Q2 2023, the company's royalty generation business was active in North America, South America, Europe, Turkey, Australia and Morocco. The company spent $4,255,000 (Q2 2022 -- $5,108,000) on royalty generation costs and recovered $1,811,000 (Q2 2022 -- $2,014,000) from partners. Royalty generation costs include exploration related activities, technical services, project marketing, land and legal costs, as well as third party due diligence for acquisitions. Included in revenue and other income was $807,000 in option, advance royalty and other preproduction payments related to existing partnered projects as a result of the royalty generating activities. During Q2 2023, the company also completed two new partnerships across the portfolio while continuing to replace partnered properties with new royalty generation projects.

Highlights from Q2 2023 include the following:

• EMX earned over $1,175,000 in royalty revenue from the Gediktepe mine. Mine operator Lidya advised EMX that Oxide zone gold production will increase during the summer months of 2023.
• The Caserones (effective) royalty distribution for Q1 was received in Q2 and totalled approximately $2,454,000. Lundin Mining completed the acquisition of 51 per cent of the issued and outstanding equity of MLCC, the Caserones mine operator, from JX Nippon (see Lundin news release dated June 13, 2023). In connection with the acquisition, Lundin filed a technical report on SEDAR, titled "NI 43-101 Technical Report on the Caserones Mining Operation, Atacama Region, Chile," that included current mineral resource and reserve estimates in accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects).
• Leeville payments to EMX totalled approximately $664,000 from royalty production that totalled 338 ounces of gold. Q2 marked another strong quarter of Leeville royalty production, along with robust gold prices.
• EMX earned and subsequently received in Q3 2023 Gold Bar South royalty revenue of $54,000 from Q1 production of 2,966 gold ounces and $80,000 from Q2 production of 3,984 gold ounces. The receipt of initial royalty revenue from Gold Bar South now establishes the operation as a paying royalty for EMX.
• Arizona Sonoran Copper released results of the Parks-Sayler infill drill program in preparation for a PFS (prefeasibility study) planned for 2024, which included enriched (secondary sulfide) copper intercepts from EMX's royalty property. Arizona Sonoran also provided an update on metallurgical programs being conducted in preparation for the PFS, which included recoveries of approximately 80 per cent after 160 days from Parks-Sayler enriched copper mineralization (secondary sulphide).
• Exploration drilling by South32 at the Hermosa property's Peake prospect returned mineralized intercepts covered by EMX's Hardshell royalty property included the best copper intercept to date of 139 metres averaging 1.88 per cent copper, 0.51 per cent lead, 0.34 per cent zinc and 52 grams per tonne (g/t) silver (true width not reported).
• In Canada, EMX programs advanced available properties in the portfolio as partners conducted summer field programs on EMX royalty properties. EMX received $45,000 in cash payments and nil in share equity payments during the quarter from partnered projects.
• EMX's Latin American royalty portfolio was advanced with work programs that included drilling and metallurgical test work conducted by AbraSilver at the Diablillos project's JAC zone silver-gold discovery. GR Silver Mining Ltd. reported on successful exploration stepout drilling at the San Marcial epithermal silver project. Aftermath Silver made an accelerated $2.5-million option payment to EMX for the Berenguela polymetallic CRD project.
• The company's United States royalty generation portfolio progressed with continuing partner-financed work programs, as well by the expansion of properties through the staking of new claims and permitting at key projects. EMX currently has 43 projects in partnership with other companies in the Western U.S.
• In northern Europe, the company continued to develop and advance its portfolio of projects, with summer field programs commencing on numerous properties in Q2. EMX has 37 projects in partnership with other companies in northern Europe and partner-financed drill programs were completed in Q2 by Mahvie Minerals AB, a private Swedish corporation, at the Mo-I-Rana royalty property in Norway, and by Bayrock Resources, a private Australian company, at EMX's Vuostok battery metals royalty property in Northern Sweden.
• Kendrick Resources PLC announced drill results from EMX's Espedalen royalty property in Norway, including an intercept of 11.60 metres averaging 2.85 per cent nickel, 1.04 per cent copper and 0.08 per cent cobalt from 52.4 metres depth in drill hole ESP23-08 (see Kendrick news release dated May 4, 2023). This hole was drilled at the Stormyra prospect on the Espedalen licence (true width not reported, but can be estimated at 70 to 80 per cent according to published cross sections). Kendrick plans to expand its exploration programs at Espedalen in the second half of 2023.
• The company optioned the Yarrol gold-copper (plus cobalt-molybdenum (Co-Mn)) project and the Mt. Steadman gold project to Many Peaks Gold (MPG) during Q2. The agreement provides EMX with cash payments, equity interests in MPG and work commitments during a 15-month option period. Upon exercise of the option, EMX will receive additional payments of cash and shares of MPG, along with annual advance royalty payments, royalty interests and other consideration.
• Royalty generation programs proceeded in the Balkans and in Morocco in Q2, where multiple exploration licence applications have been filed by the company. New target areas are being assessed for further acquisitions.

Investment updates

As at June 30, 2023, the company had marketable securities of $8,626,000 (Dec. 31, 2022 -- $9,966,000) and $4,688,000 (Dec. 31, 2022 -- $4,591,000) in private investments. The company will continue to generate cash flow by selling certain of its investments when appropriate.

Outlook

The 2023 year will continue to see revenue and other income coming from its cash flowing royalties, including Leeville and Gold Bar South in Nevada, Gediktepe and Balya in Turkey, potentially Timok in Serbia (pending conclusion of discussions with Zijin), and its effective royalty interest on Caserones in Chile. As in previous years, production royalties will continue to be complemented by option, advance royalty and other preproduction payments from partnered projects across the global asset portfolio.

The company will continue to strengthen its balance sheet over the course of the year by looking to retire portions of its long-term debt, continuing to evaluate equity markets and the continuing monetization of the company's marketable securities.

EMX is well positioned to identify and pursue new royalty and investment opportunities, while further filling a pipeline of royalty generation properties that provide opportunities for additional cash flow, as well as exploration, development and production success.

Qualified person

Michael P. Sheehan, CPG, a qualified person as defined by National Instrument 43-101 and employee of the company, has reviewed, verified and approved the above technical disclosure on North America and Latin America. Eric P. Jensen, CPG, a qualified person as defined by NI 43-101 and employee of the company, has reviewed, verified and approved the above technical disclosure on Europe, Turkey and Australia.

About EMX Royalty Corp.

EMX is a precious, base and battery metals royalty company. EMX's investors are provided with discovery, development and commodity price optionality, while limiting exposure to risks inherent to operating companies.

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