Mr. David Cole reports

EMX ROYALTY ANNOUNCES THIRD QUARTER 2023 RESULTS

EMX Royalty Corp. has released results for the quarter ended Sept. 30, 2023 (Q3 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.

Highlights for Q3 2023

Financial updates for the three months ended Sept. 30, 2023

• Revenue and other income for the three months ended Sept. 30, 2023 (Q3 2023), was $12,925,000 (2022 -- $7,206,000). Adjusted revenue and other income1 of $14,526,000 (2022 -- $9,319,000) included $1,601,000 (2022 -- $2,113,000) in revenue for the company's share of royalty revenue from the Caserones mine (effective) royalty interest in Chile.
• Net income for the three months ended Sept. 30, 2023, was $2,443,000 (2022 -- loss of $12,878,000).
• Cash provided by operating activities for the three months ended Sept. 30, 2023, was $7,527,000 (2022 -- $846,000). Adjusted cash provided by operating activities for the three months ended Sept. 30, 2023, was $9,268,000 (2022 -- $2,719,000).
• As at Sept. 30, 2023, EMX had cash of $21,587,000 (Dec. 31, 2022 -- $15,508,000), investments, long-term investments, and loans receivable valued at $12,739,000 (Dec. 31, 2022 -- $14,561,000) and loans payable of $41,927,000 (Dec. 31, 2022 -- $40,489,000).

Corporate updates

Execution of updated Timok royalty agreement

EMX executed an amended and restated royalty agreement on Sept. 1, 2023, for its Timok royalty property with Zijin (Europe) International Mining Company Ltd., a wholly owned subsidiary of Zijin Mining Group Ltd. (Zijin). EMX and Zijin have agreed that the Timok royalty will consist of a 0.3625-per-cent net smelter return (NSR) royalty that is uncapped and cannot be repurchased or reduced. The royalty covers Zijin's Brestovac exploration permit area (including the Cukaru Peki mining licences), as well as portions of Zijin's Jasikovo-Durlan Potak exploration licence north of the currently active Bor Mine licence (see EMX news release dated Sept. 5, 2023). Cukaru Peki represents one of the premier copper and gold discoveries in the world in the past 10 years and is a top tier royalty asset for EMX.

Subsequent to the execution of the amended and restated royalty agreement, EMX received $6,676,000 in royalty proceeds from its Timok royalty property with Zijin which included $1.59-million from 2021, $3.2-million from 2022, and $1.89-million up to June 30, 2023 (see EMX news release dated Sept. 12, 2023). From that point forward EMX will continue to receive quarterly production royalty payments on a continuing basis.

Execution of acquisition agreement for new royalties with Franco-Nevada

EMX executed a binding term sheet with Franco-Nevada Corp. for the joint acquisition of newly created precious metals and copper royalties sourced by EMX (see EMX news release dated Aug. 1, 2023). 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 (i.e. 50/50). The initial term 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. The agreement allows EMX to direct a large amount of capital toward the royalty generation aspect of its business model, and Franco-Nevada to participate in exploration stage royalty financing opportunities identified by EMX.

Royalty acquisition and royalty generation updates

During Q3 2023, the company's royalty business was active in North America, South America, Europe, Turkey, Australia and Morocco. The company spent $4,769,000 (2022 -- $5,269,000) on royalty acquisition and generation costs and recovered $1.14-million (2022 -- $3,247,000) from partners. Royalty acquisition and 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 $1,409,000 in option, advance royalty and other preproduction payments related to existing partnered projects as a result of royalty generation activities. The company also completed seven new property agreements across the portfolio, including two in Canada, two in Norway, two in Sweden and one in Australia, while continuing to replace partnered properties with new royalty generation projects.

Highlights from Q3 2023 include the following:

• EMX earned approximately $1,955,000 in royalty revenue from the Gediktepe mine as production continued from the oxide gold deposit. Partner Lidya Madencilik Anayi ve Ticaret A.S. (Lidya) also notified EMX that it has completed an internal feasibility study for development of the underlying polymetallic sulfide deposit. A decision regarding financing and construction for the sulfide project is pending.
• The Caserones (effective) royalty distribution for Q3 totalled approximately $1,741,000. Lundin Mining Corp. (Lundin), in connection with its acquisition of 51 per cent of the issued and outstanding equity of SCM Minera Lumina Copper Chile SpA (see Lundin news release dated July 13, 2023), 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. Lundin also provided Caserones H1 production and H2 production guidance.
• Leeville revenue earned by EMX totalled approximately $773,000 from royalty production that totalled 403 ounces of gold. Q3 2023 marked another strong quarter of Leeville royalty production along with robust gold prices.
• EMX recognized $568,000 in royalty revenue from the Balya property in Q3 2023 which included $212,000 from Q2 production and $356,000 from Q3 production subsequently received. Production began to ramp up again in Q2 2023 with 99,185 tonnes of mineralized material produced from Balya North. Production continued to accelerate in Q3 2023, with 161,133 tonnes of mineralized material produced according to calculations provided by Esan at the end of Q3.
• EMX received $134,000 from Gold Bar South for royalty revenue earned in Q1 2023 and Q2 2023, and earned royalty revenue of $59,000 from Q3 2023 production, which was subsequently received.
• AbraSilver Resource Corp. reported final results from the phase III drill program at the Diablillos silver-gold royalty property. Phase III drill holes will be incorporated into an updated mineral resource estimate to be included in the Diablillos PFS scheduled for completion in H2 of 2023. As part of its continuing PFS work, AbraSilver also reported on positive results from metallurgical optimization test work conducted for the Oculto deposit.
• Arizona Sonoran Copper continued to report infill drilling results from the Parks-Sayler porphyry copper royalty property. Subsequent to quarter-end, Arizona Sonoran announced updated mineral resource estimates for the Parks-Sayler deposit, which is partially covered by an EMX royalty, as well as other deposits that constitute its Cactus project.
• Exploration drilling by South32 at the Hermosa project's Peake prospect returned mineralized intercepts covered by EMX's Hardshell royalty property that 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 silver (true width not reported).
• EMX's United States royalty generation portfolio progressed with 13 partner-financed work programs consisting of five drill programs, the expansion of properties through the staking of new claims and the permitting of key projects in preparation for three additional drill programs to be conducted in Q4 2023 and early 2024. EMX has 39 projects in partnership in the Western U.S. and received various option, AAR, and management fee payments during the quarter.
• Scout Discoveries Corp. (a private Idaho company) and EMX closed on an amended transaction, originally announced in Q1 2023 (see EMX news release dated March 8, 2023) for the sale of EMX's Erickson Ridge, South Orogrande, Lehman Butte and Jackknife precious and base metal projects to Scout.
• In Canada, EMX executed two new agreements to partner the Jean Lake property to Canada Nickel Company, and the Ear Falls property to Beyond Lithium. EMX and its partners conducted summer field programs to continue advancing the properties in the portfolio. EMX received $104,000 in cash payments during the quarter from partnered projects.
• In Chile, Pampa Metals announced assay results from its initial three-hole drill program totalling 1,957 metres at the Buena Vista target on the Block 4 property. Anomalous copper, molybdenum and precious metals were intercepted, indicative of shallow levels of a porphyry system. Elsewhere within the portfolio, EMX was notified by Pampa Metals that it was abandoning the Arrieros, Redondo-Veronica, Cerro Blanco, Cerro Buena Aries and Block 3 properties, resulting in EMX gaining 100-per-cent control of each property. These properties are now available for partnership.
• In Northern Europe the company continued to develop and advance its portfolio of projects, with summer field programs continuing on numerous properties in Q3 2023. EMX has 37 projects in partnership with other companies in Northern Europe. New partnerships were established for the Bamble and Flat battery metals projects in Norway (Londo Nickel PLC) and the Njuggtraskliden and Mjovattnet battery metals projects in Sweden (Kendrick Resources PLC).
• The company optioned the Copperhole Creek project in Queensland, Australia, to Lumira Energy Ltd., a private Australian company. The agreement provides EMX with a 2.5-per-cent NSR royalty interest, cash and equity payments, work commitments, and other considerations. In conjunction with the transaction, Lumira Energy intends to establish a public listing on the Australian Securities Exchange (ASX) by mid-year 2024.
• Also in Q3 2023 in Australia, partner companies executed drill programs comprising over 5,000 metres on three EMX royalty properties (Yarrol, Mt. Steadman and Koonenberry) and field programs continued to advance the Queensland gold and Copperhole Creek projects.
• Royalty generation programs continued in the Balkans and in Morocco in Q3 2023, where multiple exploration licence applications have been filed by the company. Surface sampling programs commenced on several new exploration licences awarded to EMX in Morocco targeting a variety of styles of mineralization. EMX also continued to assess projects and opportunities in the Balkans.

Investment updates

As at Sept. 30, 2023, the company had marketable securities of $6.83-million (Dec. 31, 2022 -- $9,966,000), and $5,313,000 (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 the company's cash-flowing royalties, including Leeville and Gold Bar South in Nevada, Gediktepe and Balya in Turkey, and Timok in Serbia, and the company's 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 the company's 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, developmen, and production success.

Marketing consulting services

The company is also pleased to announce that it has entered into an agreement with LFG Equities Corp., an independent contractor with a business address at 402-9140 Leslie St., Richmond Hill, Ont., L4B 0A9. Commencing on Sept. 10, 2023, for an initial term of six months, under the terms of the agreement, LFG will provide marketing consulting services to the company to communicate to the financial community information about EMX by way of newsletters and be paid $50,000 (U.S.) plus applicable taxes.

Qualified persons

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 technical disclosure herein on North America, Latin America and Strategic Investments. Eric P. Jensen, CPG, a qualified person as defined by NI 43-101 and employee of the company, has reviewed, verified and approved the technical disclosure provided herein 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. The company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol EMX, and also trade on the Frankfurt exchange under the symbol 6E9.

We seek Safe Harbor.