Lithium Royalty (LIRC) Corporate Presentation summary

Strategic positioning and market overview

• Positioned at the center of the global energy transition, focusing on decarbonization and electrification through critical minerals, especially lithium, which is essential for EVs and energy storage systems.

• Lithium demand is projected to grow 42x by 2040, driven by surging EV deployment and energy storage installations, with lithium remaining the unrivaled charge carrier for electrification.

• Major automakers and battery manufacturers are investing billions in EV and battery plant capacity, supporting robust long-term lithium demand.

• Lithium prices have experienced significant volatility but remain critical for supporting new project development and supply growth.

• Environmental, social, and governance (ESG) factors are integrated into investment and operational decisions, with a focus on sustainable resource extraction and community impact.

Portfolio, diversification, and business model

• Holds 35 royalties across 7 countries, with a C$375M market cap and C$777M net asset value as of July 2024; 8 royalties were added in 2023 and 1 in 2024.

• Portfolio is diversified by geography (58% NAV in OECD, 50% in Canada and Australia) and asset stage, with 17% in production and 33% in development.

• Focuses on high-grade, long-life, low-cost assets, with 60% of NAV from assets with >20 years life of mine.

• Royalty business model provides capital-light exposure, risk mitigation, and high margins, with optionality for asset expansion and commodity price upside.

• Royalty acquisitions target double-digit returns, leveraging proprietary deal flow and limited competition, with both primary and secondary royalty strategies.

Financial performance and valuation

• Q2 2024 royalty income was $1.55M, with gross profit margin of 86% and adjusted EBITDA of $138K; net income was $317K.

• Trades at 0.5x price to NAV, a significant discount to peers such as Franco-Nevada (2.2x) and Wheaton Precious Metals (2.2x).

• Maintains a cash balance of $9.1M and no debt, supporting future acquisitions and growth.

• Royalty revenue sensitivity analysis shows strong potential cash flow from key assets at various lithium price scenarios.

• Organic growth is demonstrated by significant resource and production increases at key royalty assets, such as Sigma Lithium's Grota do Cirilo.