Elemental Royalty Increases Chapi Project Royalty Through Quilla Investment Package

About this update from Elemental Royalty Corporation

Denver, Colorado--(Newsfile Corp. - July 15, 2026) - Elemental Royalty Corporation (NASDAQ: ELE) (TSX: ELE) (" Elemental " or the " Company ") is pleased to announce that it has entered into a strategic US$25 million investment package (the " Transaction ") with Quilla Resources Inc. (" Quilla ") and its subsidiary Minera Pampa de Cobre S.A.C. (" MPC ") to expand Elemental's royalty exposure to the producing Chapi Copper Project in Peru (" Chapi ") and support Quilla's next phase of growth. The Transaction includes the acquisition of both equity in Quilla, and an additional perpetual, uncapped 1.0% net smelter return (" NSR ") royalty over the Pampa Negra and Candelaria concessions, which are expected to be important contributors to Quilla's planned expansion of Chapi. Highlights Elemental Chief Executive Officer, David M. Cole, commented: "This transaction moves Chapi into a top ten royalty for Elemental by increasing our exposure to Quilla's Phase 2 expansion at Pampa Negra and Candelaria following the recent successful commissioning of the Chapi mine. The management team's proven track record of operating in Peru sets them up for continued growth, while Chapi is strategically located within the Southern Copper Belt alongside mines operated by Freeport-McMoRan, Buenaventura, Anglo American, and Southern Copper. We are very pleased to enhance our royalty on the project and simultaneously become a Quilla shareholder as they move toward listing on a public Exchange." Existing Chapi Royalty In February 2025, EMX Royalty Corporation (" EMX ") acquired a 2.0% NSR royalty on minerals produced from the approximately 26,000 hectare property ( "Property Royalty" ) owned by Quilla, as well as a 2.0% NSR royalty from any minerals that are produced from outside the Property Royalty area, but that are processed at the Chapi Mine processing facilities. The agreement also includes a two-kilometre area of interest (" AOI ") ( see Figure 1 ) around the Property Royalty area, and any property acquired by MPC within this AOI will also be subject to a 2.0% NSR royalty, stepping down to a 1.0% NSR royalty in July 2034.

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