Mr. Dan O'Flaherty reports

VERSAMET ROYALTIES ACQUIRES CORNERSTONE CANADIAN GOLD STREAM ON ESKAY CREEK

Versamet Royalties Corp. has entered into a definitive agreement with fund entities managed by Orion Resource Partners LP and funds entities managed by affiliates of Blackstone Inc., to acquire an existing 3.52-per-cent gold stream in respect of gold production from the Eskay Creek gold-silver project in British Columbia, Canada, owned by Skeena Resources Ltd.

All amounts are in U.S. dollars unless otherwise indicated.

Dan O'Flaherty, chief executive officer of Versamet, commented: "This acquisition marks a significant step change in Versamet's scale, adding a large, uncapped gold stream on what is expected to become one of the highest-grade, lowest-cost open-pit precious metals mines globally, located in a premier Canadian jurisdiction. The addition of this robust gold stream is expected to materially increase our attributable production to over 30,000 gold equivalent ounces (GEOs) annually when Eskay reaches full capacity.

"As our largest acquisition to date, this transaction further enhances the quality and durability of our portfolio while maintaining exposure to meaningful exploration and expansion upside and is consistent with our focus on executing disciplined, accretive growth to drive long-term value for our shareholders."

Transaction highlights and strategic rationale:

• Robust 3.52-per-cent life-of-mine gold stream provides significant exposure to a large, high-quality gold mine located in the prolific Golden Triangle region in British Columbia, Canada:
  • Eskay is set to become a high-grade, low-cost gold and silver mine, expected to produce an average of over 300,000 ounces of gold per year in its first five years of operation.
  • The gold stream is uncapped with no stepdowns or buydown provisions, providing Versamet with full exposure to future potential mine-life extensions from both open-pit and underground operations, as well as exploration upside along strike and at depth.
• Accretive addition of meaningful gold ounces to growth outlook starting in 2027:
  • Construction is 49 per cent complete as of Feb. 28, 2026, with first production expected in Q2 2027.
  • The gold stream is expected to contribute an average of over 10,000 gold ounces per year to Versamet in the first five years of operation.
• Positioned for premium valuation with increased portfolio exposure to both Canada and gold:
  • Meaningful rerate potential with attributable GEOs from Canada expected to increase to approximately 50 per cent in 2028 with contributions from some of Canada's newest and largest gold mines, including Eskay, Greenstone and Blackwater.

Transaction details:

• Upfront consideration: $360-million in total consideration, comprising $340-million payable in cash and $20-million in Versamet common shares;
• Gold stream: under the gold stream, Versamet is entitled to receive 3.52 per cent of the payable gold production for the life of the mine, provided that the mine successfully achieves certain completion tests on or before Sept. 30, 2027; the gold stream is uncapped and has no stepdowns or buydown provisions and includes an area of interest;
• Production profile: Eskay is expected to produce an average of over 300,000 ounces of gold per year in its first five years and an average of approximately 230,000 ounces of gold per year over its initial 12-year life;
• Delivery payments: for gold ounces delivered to the gold stream, Versamet will make continuing cash payments equal to 10 per cent of the spot gold price at the time of delivery.
• Other terms:
  • Gold stream percentage: if the completion tests are not satisfied by Sept. 30, 2027, the stream percentage shall increase to 3.57 per cent, 3.62 per cent and 3.67 per cent if completion is achieved in the first, second or third calendar quarters following Sept. 30, 2027, respectively, and a further additional 0.13 per cent per quarter for the remaining calendar quarters until satisfaction of the completion tests;
  • Minimum delivery provision: if a cumulative total of 2.61 million ounces of payable gold applicable to the gold stream has not been produced by April 1, 2040, Versamet is entitled to a one-time delivery of gold equal to the difference between cumulative gold ounces delivered to the gold stream at the time and 2.61 million ounces;
  • Security: the gold stream is secured over the Eskay Creek project assets;
• Expected closing: closing of the transaction is subject to customary closing conditions, including receipt of all regulatory and third party approvals, along with certain other closing conditions, including the closing of Skeena's $750-million senior secured note offering (see Skeena's news release dated March 31, 2026); closing is expected to occur in the first half of April, 2026.

Eskay Creek overview

Eskay is Skeena's flagship gold-silver development project in the Golden Triangle of northwestern British Columbia. It is a restart of a past-producing mine that operated from 1994 to 2008, producing approximately 3.3 million ounces of gold and 160 million ounces of silver, and was historically one of the world's highest-grade precious metals mines at 45 grams per tonne gold and 2,224 grams per tonne silver.

Construction of the project is 49 per cent complete as of Feb. 28, 2026. In February, 2026, Skeena received its environmental management act permit, which marked the completion of the permitting process for Eskay and represents the final regulatory approval required to advance the project into commercial development, with mining operations targeted to restart in Q2 2027.

In late 2025, Skeena commenced work on an updated National Instrument 43-101 technical report for Eskay with the objective of the study to assess opportunities to improve the production profile beyond the first five years of operations and extend the overall mine life. Skeena expects to release the results of the study in late 2026.

2023 definitive feasibility study highlights:

• Proven and probable mineral reserves for open-pit mining of 39.8 million tonnes containing 3.3 million ounces gold and 88 million ounces of silver;
• Years 1 to 5: average annual production of 455,000 GEOs at 5.5 g/t gold equivalent grade;
• Years 1 to 10: average annual production of 370,000 GEOs at 4.2 g/t gold equivalent grade;
• Life-of-mine production of 2.8 million ounces of gold and over 81 million ounces of silver;
• Life-of-mine all-in sustaining cost of $684 per GEO sold.

Transaction financing

Versamet will finance the $340-million cash consideration through an amended and restated credit facility, which includes an increase of the existing revolving facility from $200-million to $250-million, maturing in March, 2029, and a new term facility in the amount of $150-million, maturing in March, 2028, for a combined total of $400-million, from Bank of Montreal and National Bank of Canada. The amended credit facility provides for a $100-million accordion on the revolving facility once the term facility has been repaid in full.

The term facility is repayable in quarterly instalments commencing on June 30, 2026, with a final bullet repayment of $40-million at maturity on March 31, 2028. Upon closing of the transaction, the company will have $235-million drawn on the revolving credit facility and $150-million drawn on the term loan.

Pricing on the amended credit facility is based on a sliding scale, with margins ranging from 2.25 per cent to 3.75 per cent over adjusted SOFR (secured overnight financing rate), depending on the company's leverage ratio. Other material terms of the amended credit facility are substantially consistent with the terms of the company's existing credit facility.

Versamet postclosing

After closing of the transaction, Versamet will have a total of seven paying royalties and streams with another three royalties and streams expected to begin production by the end of 2027. The company continues to expect 2026 attributable GEOs of 20,000 to 23,000 with approximately 85 per cent of revenues derived from gold and silver. At current metal prices, the company's portfolio is expected to generate substantial cash flows, enabling the company to rapidly deleverage while continuing to pursue additional accretive acquisition opportunities.

About Versamet Royalties Corp.

Versamet is an emerging mid-tier precious metals royalty and streaming company focused on creating long-term per share value for its shareholders through the acquisition of high-quality assets. Versamet's common shares trade on the Nasdaq Stock Market and the Toronto Stock Exchange under the symbol VMET.

Qualified person

The scientific and technical information contained in this news release has been reviewed and approved by Diego Airo, PEng, executive vice-president, project evaluation, for Versamet and a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Airo is a qualified person as defined in NI 43-101, Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.