Elemental Altus Royalties Corp. announced the acquisition of up to a 1.40% net smelter return royalty (?NSR?) from Aterian Plc (?Aterian?) over the HCK Lithium Project in the Republic of Rwanda (?R Rwanda?) currently under a Joint Venture agreement with Rio Tinto Mining and Exploration Ltd. (?Rio Tinto?). Highlights: New 1.25%-1.40% lithium NSR royalty acquired by Elemental Altus.

Royalty covers HCK Project in Rwanda operated and managed by Rio Tinto. Option to be granted second royalty on additional Musasa lithium permit in Rwanda. Historical work at the HCK project has identified 19 separate LCT (lithium- caesium-tantalum) pegmatite zones offering the prospective scale necessary to attract a major partner such as Rio Tinto.

The transaction was completed on a non-cash basis allowing Elemental Altus to maintain its cash balance. The company also supporting Aterian, who operates a number of the Company's royalties, strengthening its balance sheet by extinguishing debt. Transaction Summary.

In exchange for a non-cash consideration of PS200,000 via extinguishment of existing debt, Aterian has transferred no less than a 1.25% NSR, capped at USD 31.25 million over a larger area, or up to 1.4% NSR, capped at USD 35 million over a reduced area, to Elemental Altus Royalties. The amount of the transfer is dependent upon the royalty coverage (?Licence Base?) being either greater or less than 3,100 hectares. The Licence Base is defined as the total aggregate number of hectares of land under exploration permit covered by HCK (2,750 hectares currently granted and royalty issued to the Company) and the Musasa Project (permit pending approval).

Should the Licence Base exceed 3,100 hectares then the NSR will be apportioned 1.25% to Elemental Altus, whereby the Company will have two royalties granted on both the HCK and Musasa licences on substantially the same terms. Should the Licence Base not exceed 3,100 hectares then The NSR will be 1.40% covering just the HCK licence. The HCK Project. Kinunga Mining Limited (a JV between Aterian (70%) and HCK Mining Company Limited (30%), a private, non-related Rwandan registered entity) holds a 2,750-hectare exploration licence in southern Rwanda.

The licence is located approximately 65 km southwest of Kigali and 20 km northwest of Huye, within the Southern Province, straddling the Nyanza and Huye District boundaries. On August 1st 2023, Aterian signed a definitive Earn-In Investment and Joint Venture Agreement with Rio Tinto and Kinunga Mining Ltd. The Agreement is for the exploration and development of lithium and by-products and outlines an option for Rio Tinto to invest USD 7.5 million in two stages to earn up to a 75% interest.