Royalties Inc. Reports Yearend Results for 2025

Toronto, Ontario–(Newsfile Corp. – March 20, 2026) – Royalties Inc. (CSE: RI) (OTCID: ROYIF) (or “the Company“) reports its results for the year ended December 31, 2025.

This news release should be read in conjunction with the Company’s audited financial statements and the associated management’s discussion and analysis (MD&A) for the year ended December 31, 2025 which are available on the Company’s website at www.royaltiesinc.com or under the Company’s profile on SEDAR+ at www.SEDARplus.ca.

Key Milestone in 2025 – Success on Capstone Copper Lawsuit for 2% NSR on Cozamin Mine

Royalties Inc. made significant progress advancing the strategies on its 3 strategic investments:

1) won the lawsuit and the appeal in the State of Zacatecas against Capstone Gold S.A. de C.V. to recognize a 2% NSR, which is a cash flowing royalty on the Portree claims, part of the Cozamin Mine; the Federal and final appeal is expected to be resolved in the next few months in the Company’s favour as the Federal Prosecutor recommended denying Capstone’s Amparo. The Company estimates it is owed over US$10 million in royalties on production since 2019 before interest and damages, plus the estimated value of the royalty of US$25 million.

2) the breakout in the silver price, has exponentially increased the potential value of the Bilbao silver-zinc-lead property in Zacatecas, according to the updated economic model prepared by SLR Consulting. Accordingly, the Company is working on a plan to expand the resource with a new drill campaign and spin off the asset.

3) the Company increased ownership in Music Royalties Inc. (“MRI”) by $1,525,000 to $2,525,000, which will provide dividends of $181,800 in 2026.

Results of Operations

In 2025, the Company generated record revenue of $143,881 (+32%), consisting of $117,600 in dividend income from its increased investment in MRI and $26,278 in other royalty income. Operating expenses totaled $316,945 (+28%), due to the OTC US listing, legal expenses and increased marketing commensurate with the success in the lawsuit against Capstone Copper, leading to an operating loss of $173,064 versus $139,130 in the prior year. A non-cash foreign exchange gain of $134,776 on a US$2 million denominated contingent liability of a Mexico subsidiary resulted in a net loss of $38,288 for the year, compared with a net loss of $392,292 in 2024.

Ownership of Royalties on Capstone’s Cozamin Mine Confirmed by Zacatecas Appeals Court

Royalties Inc.’s 88% subsidiary Minera Portree de Zacatecas (“MPZ”) achieved a significant legal victory in Mexico on June 16, 2025 when it obtained a favourable court judgment confirming its entitlement to a 2% net smelter royalty (“NSR”) on five concessions (“Portree claims”) at Capstone Copper’s (“Capstone”) Cozamin Mine. Capstone appealed and on November 4, 2025, the Civil Chamber of the Superior Tribunal of Justice of Zacatecas upheld MPZ’s entitlement to royalties established in a January 11, 2002 mining contract and rejected the appeals filed by defendants Raúl González Anaya and Capstone Gold S.A. de C.V. – the Appellate Court concluded that the defendants had improperly transferred the royalties without authorization. Following the official rejection of the Federal Appeal, the next step is the calculation and the collection of the amount owed from the royalties on past production on the Portree claims since 2019. The accuracy of this amount will only be determined with the co-operation of Capstone, which has not been forthcoming. However, based on Capstone’s public disclosures including its 43-101 reports and royalties paid in its audited financial statements, it is possible to estimate a figure of US$10 million for the amount owing before interest and damages.

Capstone initially reported that mining started within the Portree claim in the fourth quarter of 2019 which equates to 7 years of production. The Company estimates that Portree represents up to 30% of the Mala Noche Footwall Zone (“MNFZ”) based on the assumption of the proportion of the surface linear strike of 1.5 km of the MNFZ, the area which has represented almost all of the production at the Cozamin Mine since 2017, according to Capstone.

In 2025, Capstone paid US$4.9 million in royalties on US$300 million of net revenues (US$2 million Q4 due to increased copper and silver prices) to two royalty holders. Royalties of US$1.35 million were paid to Gold Royalty Corporation (“GROY”) in respect of a 1% NSR on 2 claims only 300 meters and down strike from the Portree claim on the MNFZ. Royalties of US$3.5 million were paid to Grupo Minera Bacis S.A. de C.V. (“Bacis”), the former owner of the Cozamin Mine, under the terms of a December 2003 agreement where a 3% NSR is paid on production from the property covered by the agreement. Accordingly, the 2% NSR equates to approximately US$1.5 million per year on the production since 2019 for a total estimated US$10 million amount owing to MPZ.

In addition, the actual value of the 2% NSR or royalties includes the future production under the current mine plan to 2030 plus the depth potential and any resource mined on the remaining 90% of the area covered by the five Portree claims which is yet to be exploited, but is possibly being drilled. This area includes the historical high grade Parroquia copper mine in the southwest of current mine operations with an estimated 2 million tonnes historical resource. MPZ hired a local geological expert who reviewed Capstone’s public 2019-2020 drill results on the Portree claim and estimated the value of the 2% NSR royalties at US$25 million, long before the rise in copper and record silver prices, hence, the value of the royalties claim against Capstone has significantly increased.

About Royalties Inc.

• Royalties Inc. owns a 100% interest, subject to a 1.5% NSR owned as a separate asset, on the Bilbao silver-zinc-lead project located in the State of Zacatecas, Mexico.
• Royalties Inc. owns 88% of the outstanding shares of Minera Portree de Zacatecas, S.A. de C.V (“MPZ”) which holds a court confirmed claim (twice) to a 2% net smelter royalty established in 2002 on five mining concessions called the ‘Portree claims’, a portion of which is on the Mala Noche Footwall Zone, the main source of production at the Cozamin mine where Capstone Copper Corp. (“Capstone”) has been mining since 2010. Capstone attempted to assign this royalty to themselves without the knowledge, consent or proper payment to MPZ, the longstanding and rightful owner since 2002.
• Royalties Inc. has a 5% stake in Music Royalties Inc. (“MRI”), which has paid out over $15 million in 74 monthly dividends since 2019 from 31 cash-flowing catalogs with 7,000 songs with a 7.2% annual yield.

Neither the CSE, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of those terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to: sufficient capital and financing required in order to fulfill the Company’s business plans and strategy may not be obtained as expected; that the Company will not be able to pay future dividends; and other risks related to the Company as disclosed in the documents filed on the Company’s profile at SEDAR+ at www.SEDARplus.ca. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements contained in this press release and they are expressly qualified in their entirety by this cautionary statement. The forward-looking statements herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements whether as a result of new information, future events or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law.