Lithium Royalty (LIRC) Investor Update summary

Transaction Overview

• Announced sale of a 0.5% gross overriding revenue royalty on Tres Quebradas Lithium Brine project in Argentina for $28 million cash to Triple Flag Precious Metals, retaining a 0.9% royalty on the project.

• Transaction is expected to close in Q1 2025, increasing pro forma cash balance to $34.4 million USD.

• No cash tax payments are anticipated from the transaction, with after-tax proceeds expected to match the transaction value.

• Proceeds will be used for share repurchases, potentially via a Substantial Issuer Bid, and to pursue new royalty acquisitions.

• Transaction values the asset at a premium to current share price and provides a significant capital injection to a debt-free balance sheet.

Strategic Rationale and Capital Allocation

• Strengthens balance sheet at a cyclical low in the lithium market, enabling pursuit of attractive new opportunities.

• Share buybacks estimated to deliver over 20% internal rate of return at current share price.

• Transaction reduces single asset exposure from 22% to 16% of NAV, supporting portfolio rebalancing and risk management.

• Royalty model remains scalable and low cost, with additional cash-generating assets expected in 2025.

• The transaction validates the strategy as a leading lithium royalty company and enhances ability to make accretive acquisitions.

Portfolio and Market Positioning

• Highlights value of remaining 34-35 royalties, with a focus on high-grade, low-cost, long-life assets across 7 countries.

• Portfolio diversified across top mining jurisdictions, with 55% NAV in OECD countries and 47% in Canada and Australia.

• Maintains flexibility to grow in core geographies: Australia, Brazil, Canada, and Argentina.

• Pipeline for new royalty acquisitions remains robust, with a bias toward near-term producing assets.

• Open to acquiring royalties from both established and emerging operators, prioritizing asset quality and duration.