Altius and Lithium Royalty Corp Combine Long-Life, High-Quality Royalty Portfolios
Electricity | Clean Steel | Potash | Copper | Gold | Lithium | Nickel | Cobalt
Legal Disclosures
In connection with the proposed transactions, Altius Minerals Corporation ("Altius Minerals") and Lithium Royalty Corp. ("Lithium Royalty") intend to file materials with Canadian securities regulators on SEDAR+. Lithium Royalty expects to file a management information circular (the "Lithium Royalty Circular") on SEDAR+ in connection with the solicitation of proxies to obtain Lithium Royalty shareholder approval of the proposed transaction.
This presentation is not a substitute for any other document that Altius Minerals or Lithium Royalty may file on SEDAR+ and/or send to their respective securityholders in connection with the proposed transaction. Investors and securityholders are urged to carefully read the Lithium Royalty circular and related documents.
This presentation is provided for informational purposes only.
ǐransaction Summary
Acquisition of LRC for $9.50/share for $520M
Proposed Transaction | Acquire 100% of equity shares (common + convertible) of Lithium Royalty Corporation ("LRC") in Plan of Arrangement | |||
Consideration | LRC holders can elect to receive $9.50 in cash or 0.24 Altius common shares for each LRC equity share held, up to a maximum of 100% cash (subject to proration to a maximum of 1/3 of the consideration in aggregate being paid in cash) or 100% shares (subject to proration to a maximum of 11.5M shares being issued). If no election is made, Shareholders to receive 1/3 in cash and 2/3 in shares. | |||
Approvals and Conditions | ||||
Bridge Financing | Subject to completion of definitive documentation, Altius has agreed to provide LRC with a secured bridge loan facility in an aggregate principal amount of up to US$20 million. The Bridge Loan is being provided for general working capital purposes | |||
Support | Voting support agreements representing 85% of the common and convertible shares of LRC have been entered into by Waratah, Riverstone and the directors and officers of Lithium Royalty Corporation | |||
Altius Existing Shareholding | Effective ~8% interest held through interests in Waratah LP structures | |||
Expected Timing | Q1 2026 |
Altius Shareholder Benefit Highlights
A long-term, counter-cyclical investment in a no-longer-nascent market
37 royalties (no streams) added to portfolio
Includes royalties on 4 mines that were successfully funded and commissioned during last incentivization cycle (3 completed in 2025) and that are currently ramping up and/or moving into expansion phases
11 additional mine royalties with completed economic studies (6 FS, 5 PEA) and 4 more with published resource estimates
Portfolio assets feature long to ultra-long implied resource lives - a fundamental long-term optionality consideration for Altius - with multi-phase expansions planned for
several key operations
The lithium market continues to mature with demand expected to exceed 1.5Mt LCE in 2025 with continued strong future growth drivers diversified across grid-based storage, transport, consumer products and other emerging battery market applications
Price optionality tailwinds developing as continuing strong demand growth catches up with, and is set to overtake, oversupply from previous cycle
LRC portfolio carefully constructed with exposure to projects that are advantageously positioned for development during next market phase of supply incentivization
Portfolio is well diversified by project type (brine and hard rock) and jurisdictionally weighted towards the Americas and Australia (>90% of estimated value)
Benefits to Lithium Royalty Corporation Shareholders
Broader Pro-Forma Upside Potential
Copper, potash, U.S. based electricity and high-purity iron ore each feature powerful structural demand growth and emerging supply deficit tailwinds - and are generally still trading below incentivization levels
Complementary average resource life and multi-cycle optionality
Exposure to Altius's deep portfolio of embedded growth optionality as supported by numerous signaled expansions and new developments by proven major operators (arguably the strongest 5 year % revenue growth profile amongst mid to large tier royalty companies)
Exposure to a unique and proven Project Generation business with a history of delivering periodic major wins at low cost and risk
Greater market scale and liquidity - implied proforma capitalization of >C$2 billion; Altius >$1.2 billion traded volume YTD
Strong balance sheet and available financial liquidity offering greater M&A based growth bandwidth as well as ability and conviction to opportunistically increase per share exposure to existing assets and growth through buybacks
Partnering with a shareholder aligned management with a track record of technical acumen, discipline, patience and long-term, per-share focused investment and growth
(>20% share price CAGR over initial 28-year history)
A Deal Nine Years in the Making...
Solidifying a Successful Partnership as Lithium Market Emerges from Nascency
Lithium Carbonate($US)$90,000/tonne
80,000
70,000
Altius strategic investor in Price peaking at >$80,000/tonne as demand surges, resulting in supply incentivization LRC Initial Public Offering60,000
50,000
40,000
30,000
founding of LRC with royalty purchase co-participation rights assigned in exchange for technical and structuring support Continued strong compounding demand growth brings market back to balance - with deficits forecast for next several years20,000
10,000
0
2016 2017
Source: Bloomberg
2018
2019
2020 2021 2022 2023
2024
2025
2026
Altius and LRC agree to combine to form a stronger combined business LRC highly active acquiring royalties with technical and structuring support from Altius; Altius exercises several royalty co-participation options Market temporarily oversupplied due to prior incentivization conditions and project builds - 4 LRC royalty mines commissionedBase & Battery Metals Segment Bolstered
As Market Deficit Conditions Emerge
Other
Gold 6%
11%
Potash
24%
ARR
18%
Pre-Transaction
Consensus1NAV
Base & Battery
Metals 19%
Iron Ore
22%
Other
Gold 4%
8%
Potash
18%
ARR
13%
Pro Forma
Consensus2NAV
Iron Ore
15%
Base & Battery
Metals 42%
TSX: ALS OTCQX: ATUSF
Altius Consensus NAV as of November 2025
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Pro-Forma Altius NAV based on Altius current Consensus NAV, Consensus Asset value of Lithium Royalty Corporation as of November 2025 and Goulamina at announced transaction value of
US$27M
ǐransaction provides meaningful revenue growth potential
$1,250/t SC6 Illustrative Price Basis
Expected Lithium Revenue1($C)
62
61
60
60
62
56
47
43
36
Revenue
Estimate Range
58
59
59
56
49
55
16
34
39
26
12
$70M
60
50
40
30
20
10
0
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
SC6 Price | $1,000 | $1,250 | $1,500 | $2,000 | $2,500 |
Transaction IRR Sensitivity Estimates | 7.4 - 8.2% | 9.8 - 10.9% | 12.0 - 13.2% | 16.1 - 17.5% | 19.8 - 21.7% |
Considerable further upside from both volume and price-based optionality realization potential
TSX: ALS OTCQX: ATUSF1. Revenue Estimates are internal projections based on management expectations. |9
Lithium Price Bottomed in June?
Market ǐightening as Grid Based Energy Storage Demand Surges
Lithium Carbonate($US) 6% Spodumene Con. ($US)$80,000/tonne $6,000/tonne
70,000
60,000
50,000
5,000
4,000
40,000 3,000
30,000
20,000
10,000
2,000
1,000
0
Jan 23 Mar 23 May 23
Source: Bloomberg
Jul 23
Sep 23
Nov 23
Jan 24 Mar 24 May 24 Jul 24 Sep 24 Nov 24 Jan 25 Mar 25 May 25
LCE SC6
Jul 25
Sep 25
0
Nov 25
"Another material demand upgrade coming from our regional team driven by a combination of raising ESS forecasts, along with commercial vehicles; we are now at 3.5Mt LCE in 2030 which is around the top end of consensus, 2) despite reinstating material supply from China / Africa / Australia, our forecast deficits have widened over the near term; this is likely to create a prolonged incentive price environment; and 3) we raise spodumene to $2,000/t by 4Q26 (vs ~$1,100/t spot) and carbonate to $18k/t (spot ~$13.5k/t)." - JP Morgan Equity Research December 17, 2025 (emphasis added)
TSX: ALS OTCQX: ATUSF
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