Karlawinda

Elemental acquired a 2% NSR royalty on the Karlawinda Gold Project in February 2021.

The Karlawinda Gold Project is located in the Pilbara region of Western Australia, 70km by road south-east of the town of Newman and close to key infrastructure and mining support services. Karlawinda is an advanced gold project which includes the Bibra Deposit and numerous significant exploration targets including the Francopan Prospect. Capricorn acquired the project in February 2016, and have made rapid progress since then.

In April 2020, Capricorn announced an updated Mineral Reserve Estimate for the Bibra Deposit comprising 43.5 Mt @ 0.9 grams per tonne of gold for 1.2 million ounces of gold, a 35% increase from the previously announced Reserve of 892,000 ounces. The pit design yields a 12-year mine life, with a stripping ratio of 3.6:1.

Construction at Karlawinda is well underway, with plant commissioning expected to commence in the March 2021 quarter and first gold production to follow in the June 2021 quarter. Capricorn is targeting annual gold production at Karlawinda of 110,000 – 125,000 oz. Increased crushing capacity has been achieved in the final design process by up scaling and modifying equipment selection and associated infrastructure.

On November 18, 2020, Capricorn announced that the fabricated ball mill was en route to site; the mobilization of the earth moving contractor; the completion of grade control drilling for 4 million tonnes of production, equivalent to the first year’s mill feed; and, the successful first blast of waste rock in the Stage 1 open pit.

For more information on Karlawinda, please visit http://capmetals.com.au/

• Unless otherwise noted, the disclosure contained on this website of a scientific or technical nature for the Karlawinda mine is based a technical report prepared for Elemental Royalties pursuant to NI 43-101 entitled “NI 43-101 Technical Report – Karlawinda Gold Project” dated June 23, 2021, and effective December 21, 2020, and Capricorn Metals’ ASX announcement dated April 17, 2020, titled “Gold Reserves Increase 35% to 1.2 Million Ounces”.

• Ore Reserves are a subset of Mineral Resources. Ore Reserves are calculated using a gold price of A$1600/ounce. Ore Reserves are calculated using a cut-off grade between 0.3g/t and 0.4g/t Au. Mineral Resources are calculated using a gold price of A$2000/ounce. Mineral Resources are calculated using a cut-off grade between 0.3g/t and 0.4g/t Au.

• Information contained on this website with respect to each of the royalties has been prepared in accordance with the exemption set forth in section 9.2 of NI 43-101. Richard Evans, FAusIMM, is Senior Vice President, Technical for the Company and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure.

• Certain Resource and Reserve estimates covering properties related to certain mining assets in this website have been prepared in reliance upon the JORC Code. Estimates based on JORC Code are recognized under NI 43-101 in certain circumstances. In each case, the Mineral Resources and Mineral Reserves included in this website are based on estimates previously disclosed by the relevant property owner or operator, without reference to the underlying data used to calculate the estimates. Accordingly, the Company is not able to reconcile the Resource and Reserve estimates prepared in reliance on JORC Code with that of CIM definitions. The Company previously sought confirmation from its Qualified Person who is experienced in the preparation of Resource and Reserve estimates using CIM and JORC Code, of the extent to which an estimate prepared under JORC Code would differ from that prepared under CIM definitions. The Company was advised that, while the CIM definitions are not identical to those of JORC Code, the Resource and Reserve definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar Reserve and Resource estimates.