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Electric Royalties Announces $3 Million Marketed Public Offering

Press Release

VANCOUVER, BRITISH COLUMBIA – May 3, 2022 – Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) (“Electric Royalties” or the “Company”) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of agents (the “Agents”) in connection with a marketed public offering up to 10,000,000 units of the Company (the “Units”) at a price of $0.30 per Unit for gross proceeds of up to $3 million (the “Offering”).

Each Unit will consist of one (1) common share in the capital of the Company (each a “Common Share”), and one (1) common share purchase warrant (each a “Warrant”). Each Warrant will be exercisable into one (1) Common Share (each a “Warrant Share”) at an exercise price of $0.45 per Warrant Share for a period of 36 months following the closing of the Offering.

The Company has also granted the Agents an option (the “Over-Allotment Option”), exercisable in whole or in part at any time until the date that is 30 days following the closing of the Offering, to sell up to an additional 15% of the number of Units sold pursuant to the Offering on the same terms as the Units sold under the Offering.

The Offering is expected to be conducted in each of the provinces of Canada (other than Quebec) by way of prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated February 28, 2022. The Prospectus Supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, except Quebec and will be offered in the United States on a private placement basis pursuant to one or more exemptions from the requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”),

The Company intends to use the net proceeds from the Offering for general corporate purposes, including funding potential future acquisitions of royalties and other interests, targeting commodities that enable the clean energy transition, such as lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper, as will be further described in the Prospectus Supplement.

The closing of the Offering is expected to occur on or about May 12, 2022 or such other date as may be mutually agreed to by the Company and the Agents, subject to satisfaction of customary closing conditions, including, but not limited, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange Inc. (the “TSXV”) and other necessary regulatory approvals.

A copy of the Base Shelf Prospectus is available under the Company’s profile on SEDAR at www.sedar.com. Once filed, the Prospectus Supplement in connection with the Offering will also be available on SEDAR.

This press release does not constitute an offer to sell or the solicitation of an offer to buy Units, nor will there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under securities laws of any such jurisdiction.

On Behalf of the Board of Directors,

Brendan Yurik

CEO

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.

Electric Royalties has a growing portfolio of 18 royalties, including one royalty that currently generates revenue. The Company is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades towards a decarbonized global economy.

For further information, please contact:
Brendan Yurik
Phone: (604) 364‐3540
Email: [email protected]
www.electricroyalties.com

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