Earnings release
Page 1
NEWS RELEASE Toronto, November 03, 2025 (in thousands of U.S. dollars unless otherwise noted) Lithium Royalty Corp. Announces Third Quarter 2025 Results • LRC records revenue growth of 86% year-on-year during the quarter • Lithium prices declined 6% y ear-on-year in the quarter , but spot market prices increased by 16% in October, compared to 3Q25 levels as lithium recovery gains momentum • LRC entering into a period of enhanced organic growth as existing projects ramp up and development projects enter construction : o Zijin’s Tres Quebradas project - LRC received first royalty payment following commencement of production o Ganfeng ’s Mariana project - LRC expects first royalty payment in the near term as commercial production continues to ramp o Sinova Global’s Horse Creek mine - started production in the quarter with shipments expected in the medium term • LRC acquired a 1.25% royalty on the Fox tungsten project owned by Happy Creek Minerals , increasing LRC’s royalty count to 36 and adding another critical mineral to the LRC portfolio • Pipeline is full and potential transaction activity above average levels • LRC acquired 4,400 common shares through its NCIB and ended the quarter with $27.5 million in cash (10% of market cap) and no debt Lithium Royalty Corp. (TSX: LIRC) (“LRC” or the “Company”) announces third quarter 2025 results. “Following the lithium price lows observed in June, the market has continued to strengthen on the back of sustained growth in demand . Energy storage growth has exceeded initial expectations, tightening market balance, while recent supply disruptions have further supported pricing. With the Tres Quebradas and Horse Creek projects commencing production during the quarter, LRC has now
Page 2
2 seen three asset start-ups in 2025, underscoring the strength of its counterparties advancing high- grade, low-cost projects. Royalty revenue from these new additions is expected to become more meaningful through 2026, supported by potential further price momentum. At current price trends, 4Q25 is on track to record the first increase in year- over-year price growth for the lithium industry since 1Q23,” said Ernie Ortiz, President and CEO of LRC. LRC is reporting 46 Lithium Carbonate Equivalent t onnes (LCEts) or 544 Spodumene Concentrate Equivalent tonnes (SCEts) in the quarter1, compared to 14 LCEts or 170 SCEts in the prior quarter. Financial Highlights Royalty revenue was $417 for the three months ended September 30, 2025, an increase of $193 as compared to $224 in the same period of 2024. The increase in revenue was primarily driven by favourable pricing and quotational adjustments that were headwinds in prior quarters. LRC recorded its first royalty payment from Zijin’s Tres Quebradas project in the quarter and expects payments from the project to ramp up gradually as operations continue to reach nameplate capacity. 1 LRC calculates LCEts and SCEts by dividing royalty revenue for each quarter by the average spot market price during the quarter for the relevant commodity, delivered in China. The average spot market prices per tonne for 99.5% lithium carbonate for the relevant quarters were; Q2 2025 – $9,024, Q3 2025 – $9,119. The average spot market prices per tonne for 6% spodumene concentrate, delivered to China for the relevant quarters were: Q2 2025 – $745, Q3 2025 – $766. Spot market prices were based on Benchmark Minerals data on Bloomberg. 3 months ended September 30, 6 months ended September 30, 2025 2024 Variance % 2025 2024 Variance % Royalty Revenue 417 224 193 86% 1,172 2,404 (1,232) (51%) Depletion (31) (94) 63 (67%) (171) (446) 275 (61%) Gross Profit 386 130 256 96% 1,001 1,958 (957) (49%) General and administrative expenses (1,572) (1,427) (145) (5,099) (4,671) (428) Net loss (921) (1,653) 619 (4,095) (2,381) (1,825) Income taxes recovery (47) (713) 647 (362) (592) 210 Finance (income) expense (228) 1 (229) (478) (95) (383) Depletion 31 94 (63) 171 446 (275) EBITDA (1,165) (2,271) 1,106 (4,764) (2,622) (2,142) Foreign exchange loss 10 5 5 - 42 (42) One time IPO share-based compensation (SBC) 42 104 (62) 166 644 (478) Impairment expense - 1,063 (1,063) 1,154 1,063 91 Other non-recurring income - - - (317) (750) 433 Adjusted EBITDA (1,113) (1,099) (14) (3,761) (1,623) (2,138)
Page 3
3 Spodumene prices rose 14% quarter-over-quarter to $813 per tonne (CIF China, per Shanghai Metals Market) but remained 6% lower year-over-year. At September 30, 2025, LRC held $27.5 million of cash and had no debt. On July 10, 2025, LRC renewed its existing normal course issuer bid (NCIB) , allowing the Company to purchase up to 1.2 million common shares through July 9, 2026. LRC acquired 4,400 shares under its NCIB during the quarter at an average price of C$5.90 per share. Portfolio Updates Zijin Mining Tres Quebradas Royalty: During the quarter, Zijin held a commissioning ceremony to mark first production from its Tres Quebradas project in Catamarca, Argentina2. The milestone marks Catamarca’s third lithium mine to enter production and underscores Argentina’s growing role in the global battery supply chain. The asset recorded one small shipment in the quarter with operations continuing to ramp up through year end 2025 and into 2026. The Tres Quebradas lithium project was acquired by Zijin in February 2022 for approximately C$960 million. Since then, Zijin has invested more than $600 million in capital expenditures to develop and fast-track the asset into production. Phase 1 contemplates 20,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE) production. Zijin has disclosed that its planned Phase 2 expansion is expected to add 40,000 tpa of LCE, bringing total annual production capacity for the project to an estimated 60,000 – 80,000 tpa once both phases are fully operational. LRC holds a net 0.9% GOR royalty on the Tres Quebradas project. Sigma Lithium Grota do Cirilo Royalty : During the quarter, Sigma Lithium released a corporate presentation outlining their strategy for H2 2025 and 20263. The key pillars are: 1) securing an offtake or prepayment agreement for Phase 2; 2) lowering costs at plant gate, through mining and processing optimizations; and 3) maintaining commercial strategy through partnerships to capture seasonality and improve working capital. Sigma also advanced construction of Plant 2, which will double nameplate capacity to 520,000 tonnes per year, keeping the project on track for 2026 2 Zijin Mining Group Co., Ltd. “Commissioning Ceremony Held at Tres Quebradas Lithium Project, Argentina.” Zijin Mining News Releases, September 16, 2025. https://www.zijinmining.com/news/news-detail-122311.htm 3 Sigma Lithium Corp. “Corporate Update and H2 2025–2026 Strategy.” Newsroom, August 14, 2025 2025. https://ir.sigmalithiumcorp.com/
Page 4
4 commissioning. In August, Sigma streamlined its leadership structure, consolidating key management roles. LRC holds a net 0.9% NSR royalty on the Grota do Cirilo project. Core Lithium Finniss Royalty: During the quarter, Core Lithium secured firm commitments to raise A$50 million from a two-tranche institutional placement4. The first tranche closed on September 4, and the second tranche closed on October 16. Core Lithium also subsequently launched a share purchase plan and raised an additional A$4.3 million. Core Lithium disclosed that the raise will accelerate the advancement of the Finniss lithium project towards a final investment decision (FID) through expediting BP33 operational readiness activities and strengthening Core Lithium’s balance sheet to support the ongoing strategic funding process. LRC visited the Finniss site in October 2025 and witnessed firsthand the fully -built DMS plant, solid transportation network in the Northern Territory, and the many deposits that could deliver additional mineral resource growth. Core Lithium has an ongoing process with Morgan Stanley Australia to evaluate a financing path to restart the mine. LRC holds a 2.5% GOR royalty on the Finniss project. Elevra Lithium (previously Sayona Mining ) Moblan Royalty: During the quarter, Sayona Mining completed its previously announced merger with Piedmont Lithium to form a new entity – Elevra Lithium. On August 25, Elevra announced a mineral resource expansion at the Moblan lithium project in Qu ébec5. The updated mineral resource estimate (MRE) comprises 108 million tonnes (Mt) of measured and indicated mineral resource grading 1.21% Li₂O, and 13Mt of inferred mineral resource grading 1.06% Li₂O, both at a 0.55% Li₂O cut-off grade. The updated MRE represents a 60% increase in contained lithium oxide within the measured and indicated categories since the previous August 2024 estimate, positioning Moblan as one of the largest hard rock lithium deposits in the Americas. LRC holds a 2.5% GOR royalty on the Moblan project. Delta Lithium Yinnetharra Royalty: During the quarter, Delta Lithium outlined its regional exploration progress, which identified six priority regional exploration targets through ground mapping and geochemical sampling 6. Delta has completed h eritage surveys and is prepared to resume drilling. The focus of the program will be on extending the high-grade Jameson Prospect and 4 Core Lithium Ltd. “Successful Completion of $50M Placement and SPP.” ASX Announcements, September 28, 2025. https://www.corelithium.com.au/investors/asx-announcements 5 Elevra Lithium Ltd. “Moblan Lithium Project Resource Expansion Following Merger Completion.” Corporate News, September 22, 2025. https://www.elevra.com/investors/asx-announcements/ 6 Delta Lithium Ltd. “Yinnetharra Project Update and Exploration Activities.” ASX Announcements, September 22, 2025. https://deltalithium.com.au/announcements
Page 5
5 its current MRE of 0.8Mt at 1.66% Li2O, at a 0.5% cut-off grade. The drill rig was mobilized and Delta Lithium commenced drilling in early October. LRC holds a 1.0% GOR royalty on the Yinnetharra project. Power Metals Case Lake Royalty : Following the release of its maiden cesium resource in June 2025, Power Metals advanced preparations for mining during the quarter. On September 18, Power Metals reported significant progress toward the development phase, including active permitting, basel ine studies, and technical planning , aimed at positioning Case Lake as a near -term cesium producer 7. Power Metals expanded its community engagement initiatives, commissioning Indigenous -owned contractors or environmental and drilling programs, and hosted a site visit by the Ontario Geological Survey. In July, Power Metals completed drilling and sampling programs to refine the geological model and identify additional spodumene and pollucite mineralization across the Henry and West Joe domes. These results reinforce Case Lake’s potential to become one of only four producing cesium mines globally. Discussions with potential strategic partners and offtake counterparties also advanced, further positioning Power Metals as an emerging North American supplier of critical minerals. LRC holds a 2.0% GOR r oyalty o n the Case Lake project. SMM reports that cesium carbonate prices are currently trading at $216,000 per tonne with prices increasing by 45% in the last month alone. Sinova Global Horse Creek Royalty : In September, Sinova Global commenced production at its Horse Creek quartz mine near Golden, British Columbia 8. The mine hosts reserves supporting a projected life of more than 60 years and has a nameplate production capacity of 300,000 tpa, with permits allowing output of up to 1.4 Mt annually. Initial commissioning activities are focused on calibrating operations and verifying product quality to meet Sinova’s high-purity specifications. Once quality verification is complete and financing is secured for Sinova’s downstream silicon metal facility in Tiptonville, Tennessee, production is expected to ramp up further. The Government of Canada added silicon metal to its critical minerals list in July 2024. Silicon m etal is widely used in chips, semiconductors, solar panels, and battery anodes. LRC holds a GOR royalty on the Horse Creek 7 Power Metals Corp. “Case Lake Project Development Update.” Company News Releases, September 18, 2025. https://powermetalscorp.com/news/2025/power-metals-provides-project-update-for-case-lake-cesium-project/ 8 Sinova Global Inc. “Commencement of Production at Horse Creek Mine.” Corporate Newsroom, accessed October 2025. https://sinovaglobal.com/news/.
Page 6
6 project, assessed at 8.0% on revenues less than $45 million and 4.0% on revenues greater than $45 million. Royalty Acquisition In August, LRC acquired a pre-existing 1.25% net smelter return (NSR) royalty on the Fox tungsten deposit in British Columbia, Canada that is owned and operated by Happy Creek Minerals. The Fox tungsten deposit has an existing resource of 1.15Mt at 1.23% tungsten trioxide (WO3) at a range of cut-off grades between 0.175% to 0.45%9. On September 11, Happy Creek announced that it started a 100-hole, 10,000 meter drilling campaign to further expand the resource10. The company believes the resource could be expanded significantly and has an exploration target to double the resource. Tungsten prices averaged approximately $485 per metric ton unit (MTU) earlier in the year, rising to about $650/MTU at present. The tungsten grades from the historical resource estimate rank among the highest of any producing operation in the Western world. Approximately, 85% of global production of t ungsten is currently sourced from China, Russia, and North Korea 11. Tungsten has various applications including semiconductors, robotics, defence, and electric vehicles and is classified as a critical mineral by the United States, Canada, and the European Union. The acquisition, completed for approximately $2 60,000, provides LRC with strategic exposure to another critical mineral and meaningful upside potential for a modest financial investment. LRC remains primarily focused on lithium but is selectively pursuing tactical opportunities in other critical minerals where it holds a competitive advantage and can secure attractive, non -competitive transactions with outsized return potential. Anticipated LRC Milestones 12 • 4Q25/1H26 – Inaugural royalty revenue from Ganfeng Lithium’s Mariana project • 4Q25/1H26 – Progression of Core Lithium restart process for Finniss project restart • 4Q25/1H26 – Atlas Lithium $40 million pre-payment funding for Das Neves project 9 Happy Creek Minerals, NI 43-101 Technical Report, April 9, 2018: https://www.happycreekminerals.com/projects/cariboo/fox -property 10 Happy Creek Minerals Ltd. (2025, September 11). Happy Creek Announces the Start of Drilling at the Fox Tungsten Project . Retrieved from https://www.happycreekminerals.com/news/happy-creek-announces-the-start-of-drilling-at-the-fox-tungsten-project 11 USGS, Mineral Commodity Summaries: Tungsten (January 2025); DiscoveryAlert (2025, September 14). Becoming the World’s Largest Conflict-Free Tungsten Provider: The Strategic Importance of Supply Diversification. 12 Projections are based on public statements by and discussions with project operators and are not independent projections by L RC.
Page 7
7 • 2H26 – Power Metals’ Case Lake cesium project to begin production • 2026 – Sigma Lithium Phase 2 production start at Grota do Cirilo project Lithium Market Global lithium demand remained strong during the quarter, supported by continued expansion in electric vehicle (EV) sales and faster -than-expected growth in the energy storage sector. China maintained robust double- digit EV growth, while Europe emerged as the fastest -growing region, driven by new mass -market vehicle launches and renewed government subsidies accelerating adoption across key markets. According to Rho Motion, global EV sales rose 26% year- over-year (y/y) in the first nine months of 2025, driven by Europe with a 32% increase, China up 24%, and North America up 18% . In Europe, new incentive programs announced in the UK, Germany, France, and Italy in the second half of 2025 are expected to support ongoing strength into 2026. Subsidy levels include up to €4,000 per vehicle in Germany, £3,750 in the UK, and €10,000 in Italy, alongside at least seven new EV models set to launch below the €25,000 price point next year. In China, EV penetration among passenger vehicles remained above 50% during the quarter, with notable acceleration in the commercial segment. This trend is particularly evident in electric trucks, where some battery manufacturers reported over 100% year -to-date growth. In North America, demand rose modestly in the quarter as OEM incentives and the phase -out of the $7,500 U.S. EV tax credit prompted a pull -forward of sales. Regional demand is expected to remain volatile but continues to represent a smaller share of global volumes compared to China and Europe. Energy storage systems (ESS) continue to scale rapidly and LRC estimates they are likely to account for approximately 30% of global lithium demand in 2025. Tesla reported a n 81% y/y increase in storage deployments in 3Q25 with shipments growing by 60% on a year -to-date basis. ICCSino estimated global ESS battery production grew by 64% y/y in the quarter and 78% year-to-date. Analysts expect the sector to expand a further 30–60% in 2026, underscoring its growing importance as a demand driver. Additional demand tailwinds are emerging from new and underappreciated sources not yet fully incorporated into major demand forecasts. These include robotics, drones, electric vertical take -off
Page 8
8 and landing vehicles (eVTOLs), electric marine shipping, and military applications. Robotics and automation are advancing rapidly as key enablers of the next technology cycle. China’s automation sector continues to expand, with industrial robot output up roughly 60% y/y to an annualized rate of approximately 900,000 units. Backed by Made in China 2025, the country now accounts for nearly half of global installations, supported by domestic producers supplying cost - effective systems that have accelerated industrial automation. These trends represent a structural shift toward technology -led productivity a nd a new domestic growth engine. Each full -size robot contains about 2 kilogram s of LCE - modest today but expected to rise as humanoid and service robots scale globally. Robotics could represent up to 10% of global lithium demand by 2030. Platforms such as Unitree’s H1 and H2 humanoids are advancing “physical AI,” while firms including Coco Robotics, Serve Robotics, and Zipline are deploying autonomous systems and drones across U.S. cities, extending lithium use beyond vehicles. During the quarter, EHang Holdings introduced the VT35, a pilotless eVTOL aircraft with a 200 - kilometre range and 120 kWh propulsion system, underscoring the electrification of aviation. Companies such as EHang, Joby, Archer, and Lilium are progressing toward commercial deployment, adding new layers of high-density lithium demand that complement growth from EVs and stationary storage. Recent developments such as Figure AI’s humanoid robots, now being trialed at BMW’s manufacturing facilities, highlight accelerating investment in AI -driven automation. This wave of electrified manufacturing reinforces lithium’s central role in powering the next industrial era. Spodumene prices rose 14% quarter-over-quarter to $813 per tonne (CIF China, per Shanghai Metals Market) but remained 6% lower year-over-year. As of October 31, 2025 prices stood at approximately $944 per tonne or 16% higher than the 3Q25 average. Strong downstream demand and temporary supply disruptions, including downtime at a major Chinese mine, tightened the short -term market balance and drove inventory drawdowns through September and October. With prices remaining below long -term incentive levels for many projects, supply growth is continuing to moderate. As a result, market conditions are expected to strengthen further into 2026,
Page 9
9 supported by resilient demand, ongoing supply discipline, and the accelerating buildout of energy storage and automation-driven technologies. Qualified Persons The technical and scientific information contained in this news release was reviewed and approved in accordance with NI 43 -101 by Don Hains, P.Geo. of the Hains Engineering Company Limited, a “qualified person” as defined in NI 43-101. Important Dates and Events Date Event November 04, 2025 LIRC Q3 2025 Results Call. Click here to register. November 20, 2025 Swiss Mining Institute November 20, 2025 Deutsche Bank 10th Annual Lithium Battery Supply Chain Conference December 02, 2025 27th Annual Scotiabank Mining Conference December 02, 2025 Citi 2025 Basic Materials Conference Shareholder Information The Consolidated Financial Statements and Management’s Discussion & Analysis are available on our website and SEDAR+. Q3 2025 Conference Call Details Date: November 04, 2025 Time: 9:00AM EST Registration Link : https://events.q4inc.com/attendee/929756202 About Lithium Royalty Corp. LRC is a lithium- focused royalty company organized in Canada, w hich has established a globally diversified portfolio of 3 6 revenue royalties on mineral properties that are related to the electrification and decarbonization of the global economy. The Company’s royalty portfolio is focused on the battery supply chain for the transportation and energy storage industries and is
Page 10
10 underpinned by mineral properties that produce or are expected to produce lithium, critical minerals, and other energy transition materials. Contact Information for Inquiries: Jonida Zaganjori Investor Relations (647) 792-1100 jonida@lithiumroyaltycorp.com
Page 11
Forward Looking Statements This press release contains “forward -looking information” and “forward -looking statements” within the meaning of applicable Canadian securities laws, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding LRC’s growth, results of operations, estimated future revenues, performance guidance, carrying value of assets and requirements for additional capital, mineral resource and mineral reserve estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities, the performance and plans of third party operators and the expected exposure for current and future assessments and available remedies. In addition, statements relating to resources and reserves and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such resources and reserves or mine lif e will be realized. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budgets”, “potential for”, “scheduled”, “estimates”, “forecasts”, “predicts”, “projects”, “intends”, “ta rgets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of LRC to be materially different from any future results, revenue, expenses, performance or achievements expressed or implied by the forward-looking statements. Forward- looking information is based on management’s beliefs and assumptions and on information currently available to management. The forward -looking statements herein ar e made as of the date of this press release only and LRC does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. A number of factors could cause actual events or results to differ materially from any forward -looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty revenue (including various lithium pro ducts); fluctuations in the value of the Canadian and Australian dollar and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which LRC holds a royalty or other interest are located or through which they are held; risks related to the operators of the properties in which LRC holds a royalty or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by LRC; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which LRC holds a royalty or other interest; whether or not the Company is determined to have “passive foreign investment company” (“PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which LRC holds a royalty or other interest; actual mineral content may differ from the resources and reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks associated with the solvency of operators of projects that LRC has royalties over; risks and hazards associated with the business of development and mining on any of the properties in which LRC holds a royalty or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave -ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which LRC holds a royalty or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities (including various lithium products) that underlie the asset portfolio; the Company’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; no adverse
Page 12
development in respect of any significant property in which LRC holds a royalty or other interest; the solvency of project operators; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in productio n; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward -looking statements are not guarantees of future performance. LRC cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward -looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to LRC’s most recent Annual Information Form dated March 19, 2025 and filed with the Canadian securities regulatory authorities on www.sedarplus.com. These risks and uncertainties include, but are not limited to, those described under “Risk Factors” in the Annual Information Form, and in particular risks summarized under the “Risks Related to Mining Operations” heading.
Page 13
Non-IFRS Measures This earnings release makes reference to certain non- IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, the non -IFRS measures should not be considered in isolation or as substitutes for analysis of the financial information reported under IFRS. EBITDA and Adjusted EBITDA EBITDA is a common metric used by investors and analysts to assist in their valuation of the Company. EBITDA is a non-IFRS financial measure, which excludes the following from net earnings: • income tax expense and recovery; • finance costs, netted against finance income; and • depletion, depreciation and amortization. In addition to EBITDA, we have determined that the following adjustments are necessary to arrive at Adjusted EBITDA, which we believe is a more accurate indicator of the Company’s ongoing operational performance: • impairment charges and reversals; • gain/loss on sale/disposition of assets/mineral interests; • foreign currency translation gains/losses; • increase/decrease in fair value of financial assets; • expenses related to one-time share-based compensation granted at IPO • other non-recurring income and charges. Management believes that EBITDA and Adjusted EBITDA are valuable indicators of our ability to generate liquidity by producing operating cash flow to fund working capital needs and fund acquisitions. These metrics are also frequently used by investors and analysts for valuation purposes, whereby the metrics are multiplied by a factor or “multiple” that is based on an observed or inferred relationship between Adjusted EBITDA and market values to determine the approximate total enterprise value of a company. LRC believes these measures assist investors, analysts and our shareholders to better understand our ability to generate liquidity from operating cash flow, as LRC believes that the excluded amounts are not indicative of the performance of our core business and do not necessarily reflect the underlying operating results for the periods presented. 1 Non-recurring gains include the gain on disposition of royalty interest and expenses incurred related to the substantial issuer bid in 2015. 3 months ended September 30, 6 months ended September 30, 2025 2024 Variance 2025 2024 Variance Net loss (921) (1,653) 619 (4,095) (2,381) (1,825) Income tax (recovery) expense (47) (713) 647 (362) (592) 210 Finance income (228) 1 (229) (478) (95) (383) Depletion 31 94 (63) 171 446 (275) EBITDA (1,165) (2,271) 1,106 (4,764) (2,622) (2,142) Foreign exchange loss (gain) 10 5 5 - 42 (42) One time IPO share-based compensation (SBC) 42 104 (62) 166 644 (478) Impairment expense - 1,063 (1,063) 1,154 1,063 91 Other non-recurring income - - - (317) (750) 433 Adjusted EBITDA (1,113) (1,099) (14) (3,761) (1,623) (2,138)