Elemental Royalties Announces Shares for Debt Transaction

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

VANCOUVER, BC, August 4, 2020 /CNW/ - Elemental Royalties Corp. ("Elemental" or "the Company") (TSXV: ELE) announces that it has entered into a settlement agreement with Tembo Mining Capital Fund LP ("Tembo") that will result in the settlement of C$115,494 in debt (the "Debt") in exchange for the issuance by the Company of 65,996 common shares (the "Settlement Shares"). The Debt was incurred pursuant to a bridge loan made by, among others, Tembo to the Company (then Fengro Industries Corp.) in March 2019 (the "Facility").

The Settlement Shares will be issued at a deemed price of CAD$1.750015, being the market price at the time of the agreement, to settle a total debt of C$115,494 pursuant to the Facility. This Debt is comprised of the principal debt amount of C$100,000, an establishment fee of C$5,000 and interest of C$10,494, being all of the obligations owed by Elemental to Tembo under the terms of the Facility. The issuance of the Settlement Shares remains subject to the approval of the TSX Venture Exchange. When issued, the Settlement Shares will be subject to a statutory hold period expiring on the date that is four months and one day after their issue.

Outstanding obligations of CDN$3,128,218.60 owing to Tembo under a US$2 million convertible loan facility previously established by Elemental Royalties Limited (now a wholly owned subsidiary of the Company) were converted into common shares of the Company in connection with the closing of the recently completed reverse takeover transaction at a price of C$1.30 per common share resulting in the issuance of 2,406,322 common shares to Tembo. For further information on the convertible facility, please refer to the Filing Statement posted to Elemental's issuer profile on SEDAR at www.sedar.com.

About Elemental:

Elemental is a gold focused royalty company with a portfolio of five royalties over producing assets spanning Burkina Faso, Chile, Mexico, Kenya and Western Australia. The portfolio is heavily weighted towards precious metals and producing royalties, providing a diversified foundation of revenue from the outset, while minimising shareholder dilution.

Forward-Looking Statements

This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Elemental undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of Elemental, its securities, or financial or operating results (as applicable). Although Elemental believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Elemental's control. The forward-looking information contained in this press release are expressly qualified by this cautionary statement and are made as of the date hereof. Elemental disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this press release.

SOURCE Elemental Royalties Corp.

Copyright 2020 Canada NewsWire