Mr. Brett Heath reports

METALLA REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2023 AND PROVIDES ASSET UPDATES

Metalla Royalty and Streaming Ltd. has released its operating and financial results for the three and six months ended June 30, 2023. For complete details of the condensed interim consolidated financial statements and accompanying management's discussion and analysis for the three and six months ended June 30, 2023, please see the company's filings on SEDAR+ or EDGAR. Shareholders are encouraged to visit the company's website. (All dollar amounts are in U.S. dollars unless otherwise indicated, except for shares, per ounce and per-share amounts.)

Brett Heath, president and chief executive officer of Metalla, commented: "In the second quarter of 2023, we strengthened our balance sheet through the completion of the amendment to expand and extend our convertible loan facility with Beedie Capital and through the sale of the JR mineral claims for $5.0-million. Production from El Realito and La Encantada was stronger than expected during the quarter, and we look forward to the balance of 2023."

Financial highlights

During the six months ended June 30, 2023, and the subsequent period up to the date of this news release, the company:

• Acquired one stream and five royalties to bring the total held as at the date of this press release to 82 precious metal assets, through the following transactions:
  • Acquired an existing 2.5-per-cent to 3.75-per-cent sliding scale gross proceeds (GP) royalty over gold, together with a 0.25-per-cent to 3.0-per-cent net smelter return (NSR) royalty on all non-gold and silver metals on the majority of Barrick Gold Corp.'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 two-million-ounce-gold mineral reserve estimate on the royalty area or 36 months after the closing date;
  • Acquired one silver stream and three royalties from Alamos Gold Corp. for $5.0-million in common shares valued at $5.3228 per share, representing the 20-day volume-weighted average price (VWAP) of shares of Metalla traded on the New York Stock Exchange prior to the announcement of the transaction; the transaction closed on Feb. 23, 2023, at which time the company issued 939,355 common shares to Alamos; the stream and royalties acquired in this transaction include:
    • A 20-per-cent silver stream over the Esperanza project located in Morales, Mexico, owned by Zacatecas Silver Corp.;
    • A 1.4-per-cent NSR royalty on the Fenn Gibb South project located in Timmins, Ont., owned by Mayfair Gold Corp.;
    • A 2.0-per-cent NSR royalty on the Ronda project located in Shining Tree, Ont., owned by Platinex Inc.;
    • A 2.0-per-cent NSR royalty on the Northshore West property located in Thunder Bay, Ont., owned by New Path Resources Inc.
• Sold the JR mineral claims that make up the Pine Valley property, which is part of the Cortez complex in Nevada, to Nevada Gold Mines LLC (NGM), an entity formed by Barrick and Newmont Corp., for $5.0-million in cash; the company will retain a 3.0-per-cent NSR royalty on the property;
• Sold the Conmee mineral claims that make up the Tower Mountain property to Thunder Gold Corp. for four million common shares of Thunder Gold, valued at $100,000 upon closing; the company will retain a 2.0-per-cent NSR royalty on the property;
• Announced a special dividend payment on the common shares, in the amount of three Canadian cents per share, with a declaration date of July 10, 2023, a record date of Aug. 1, 2023, and a payment date of Sept. 15, 2023;
• For the three months ended June 30, 2023, received or accrued payments on 856 attributable gold equivalent ounces (GEOs) at an average realized price of $1,945 and an average cash cost of $8 per attributable GEO; for the six months ended June 30, 2023, received or accrued payments on 1,783 attributable GEOs at an average realized price of $1,888 and an average cash cost of $7 per attributable GEO;
• For the three months ended June 30, 2023, recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.0-million, net loss of $500,000, and adjusted earnings before interest, taxes, depreciation and amortization of negative $200,000; for the six months ended June 30, 2023, recognized revenue from royalty and stream interests, including fixed royalty payments, of $1.9-million, net loss of $1.8-million and adjusted EBITDA of $400,000;
• For the three months ended June 30, 2023, generated operating cash margin of $1,937 per attributable GEO, and for the six months ended June 30, 2023, generated operating cash margin of $1,881 per attributable GEO from the Wharf, El Realito, La Encantada, the New Luika gold mine (NLGM) stream held by Silverback Ltd., the Higginsville derivative royalty asset and other royalty interests;
• For the three months ended June 30, 2023, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $700,000, and for the six months ended June 30, 2023, recognized payments due or received (not included in revenue) from the Higginsville derivative royalty asset of $1.4-million;
• 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 at-the-market 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 1,328,078 common shares under the 2022 ATM program at an average price of $5.01 per share for gross proceeds of $6.6-million, of which 279,430 common shares were sold during the three months ended June 30, 2023, at an average price of $4.34 per share for gross proceeds of $1.2-million;
• On May 19, 2023, the company closed a second supplemental loan agreement to amend its loan facility by:
  • Extending the maturity date to May 9, 2027;
  • Increasing the loan facility by $5.0-million (Canadian) from $20.0-million (Canadian) to $25.0-million (Canadian), of which $21.0-million (Canadian) will be undrawn after giving effect to the $4.0-million (Canadian) conversion described below;
  • Increasing the interest rate from 8.0 per cent to 10.0 per cent per annum;
  • Amending the conversion price of the fourth drawdown from $11.16 (Canadian) per share to $8.67 (Canadian) per share, being a 30-per-cent premium to the 30-day VWAP of the company shares measured at market close on the day prior to announcement of the amendment;
  • Amending the conversion price of $4.0-million (Canadian) of the third drawdown from $14.30 (Canadian) per share to $7.33 (Canadian) per share, being the five-day VWAP of the company shares measured at market close on the day prior to announcement of the amendment, and converting the $4.0-million (Canadian) into shares at the new conversion price; upon closing, the company issued Beedie 545,702 common shares for the conversion of the $4.0-million (Canadian);
  • Amending the conversion price of the remaining $1.0-million (Canadian) of the third drawdown from $14.30 (Canadian) per share to $8.67 (Canadian) per share, being the 30-day VWAP of the company shares measured at market close on the day prior to announcement of the amendment;
  • 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 cent per annum, and the principal and accrued interest will be repaid no later than April 1, 2024; on July 7, 2023, the company paid all accrued interest on the loan at the time and made a principal repayment of $4.3-million.

Qualified person

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, geologist, MSc, member of the Association of Professional Geoscientists of Ontario and of the Ordre des Geologues du Quebec, 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 Royalty and Streaming Ltd.

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

We seek Safe Harbor.