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Elemental Royalties Announces Record Revenue and Operating Cash Flow in Q3 2021 Results Vancouver , British Columbia -- ( Newsfile Corp. - November 16 , 2021 ) - Elemental Royalties Corp. ( TSXV : ELE ) ( OTCQX : ELEMF ) ( " Elemental " or " the Company " ) is pleased to announce its operating and financial results for the three and nine months ended September 30 , 2021. For complete details please refer to the Financial Statements and associated Management Discussion and Analysis for the three and nine months ended September 30 , 2021 , available on SEDAR ( www.sedar.com ) or the Company's website ( www.elementalroyalties.com ) . Frederick Bell , CEO of Elemental commented : " Elemental generated record quarterly revenue following maiden production from our operating partner at the Karlawinda gold mine . With the achievement of steady state operations at the end of the quarter , Karlawinda promises to be a cornerstone of Elemental's portfolio for many years to come . Alongside continuing strong operating performance at Wahgnion , Elemental is nowrepaid for the 2018 acquisition of the 2.25 % NSR royalty on Austral Gold's Amancaya gold mine in Chile , making it the second royalty after Kwale to be fully repaid . " We are also excited to see operator funded exploration efforts start to unearth the value across our portfolio with the announcement from Endeavour of a major multi - year exploration programme at Wahgnion . Exploration success has the potential to deliver material value for shareholders alongside continuing organic revenue growth highlighted by the royalty at the Mercedes mine starting to contribute from July 2022. This combination of growing revenue , continuing discoveries at no cost and royalty acquisition opportunities position the Company with the best platform for growth it has had . " Asset Highlights • Capricorn Metals ( " Capricorn " ) achieved steady - state operations with production of 24,329 gold ounces , with an above budget 92.6 % recovery , generating first royalty revenue to Elemental of over A $ 1 million from sales of 21,921 ounces of gold in Q3 2021 . • Endeavour announced a discovery target of 1.5 to 2.0 million ounces of Indicated Resources at Wahgnion over the next five years with $ 5 million spent in Q3 , consisting of 31,500 meters of drilling with a continued focus on the extension and expansion of the Nogbele mineralization . • Wahgnion produced 34koz gold ounces in Q3 and is positioned to achieve the lower end of FY- 2021 production guidance of 140,000 - 155,000 gold ounces at an AISC of $ 940 - 990 per ounce , for the post acquisition period commencing on 10 February 2021 . • At Amancaya , challenges in the quarter let to a total of 208 attributable GEOs sold in Q3 , providing Elemental with US $ 0.4 million revenue . Production was lower than forecast due to staff turnover within the underground mining contractor and availability of the underground fleet . An action plan is being implemented by Austral Gold Corp ( " Austral " ) to improve productivity at the mine and strengthen the underground fleet . • Mercedes produced 9,722 gold ounces in Q3 . A substantial development program is underway to increase access to multiple ore bodies , with gold production on track to achieve 30,000 to 35,000 ounces for the period post - acquisition on April 7 , 2021 to December 31 , 2021 . Financial Highlights • Record quarterly revenue of US $ 1.9 million for Q3 2021 and US $ 4.3 million for the nine months ended September 30 , 2021 generated from five royalties , including maiden revenue from Karlawinda received in the quarter .