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Algemeen advies 01/04/2019 17:26
Vancouver, British Columbia: Metalla Royalty & Streaming Ltd. (“Metalla” or the “Company”) (TSXV:
MTA) (OTCQX: MTAFF) (FRANKFURT: X9CP) is pleased to announce that the Company has entered into a purchase and sale agreement (the “Royalty Purchase Agreement") to acquire a portfolio of 18 royalties
(the “Royalty Portfolio”) from Alamos Gold Inc. (NYSE:AGI)(TSX:AGI) and its affiliates (collectively “Alamos”) for total consideration of US$8.6 million, (CAD$11.5 million) payable in common shares of the Company (“Common Shares”). Certain royalties in the Royalty Portfolio are subject to rights of first
refusal, consents, and future options at agreed to prices.

• Increased Size and Scale: Acquisition of sixteen (16) royalties and two (2) options to acquire additional royalties expanding Metalla’s portfolio up to forty-three (43) royalties and streams upon
• Advanced-Stage Development Portfolio to Add Significant Future Cash Flow: Addition of five advanced development royalties enhancing Metalla’s pipeline and future cash flow profile;
• Strong Counterparties: Royalty counterparties include Agnico Eagle Mines Limited (“Agnico”), SSR Mining Inc. (“SSR”), Kirkland Lake Gold Ltd, Waterton Global Resource Management,
Buenaventura, Mineral Alamos Inc. (“Minera Alamos”), Monarch Gold Corporation (“Monarch”), and others;
• New Strategic Shareholder: Alamos is one of the premier intermediate gold producers in North
America with a market cap of CAD$2.7 billion;
• Long-Term Optionality: Twelve (12) royalties on exploration-stage properties;
• Safe Jurisdictions: Eight (8) royalties in Canada, six (6) royalties in Peru, three (3) royalties in Mexico and one (1) in Chile.

• El Realito NSR Royalty (Sonora, Mexico) – a 2% NSR royalty on the El Realito property owned and operated by Agnico located adjacent to its operating La India mine;
• Wasamac NSR Royalty (Rouyn-Noranda, Quebec) – a 1.5% NSR royalty on the Wasamac Mine currently under development by Monarch Gold located 15km west of Rouyn-Noranda in Quebec;
• La Fortuna NSR Royalty (Durango, Mexico) – an option to purchase a 1% NSR royalty on the La Fortuna Mine currently under development by Minera Alamos located in Durango State, Mexico;
• Beaufor Mine NSR Royalty (Val d’Or, Quebec) - a 1% NSR royalty on the producing Beaufor Mine operated by Monarch Gold, located 20km northeast of Val d’Or, Quebec;
• San Luis NSR Royalty (Central, Peru) – a 1% NSR royalty on the San Luis property owned by SSR and is located in the Ancash Department, central Peru.
"This transaction marks a major step in growth for Metalla,” commented Metalla’s President & CEO Brett Heath. “Today’s accretive transaction with Alamos significantly enhances Metalla’s existing portfolio and
will drive production growth, cash flow, NAV, and increase our precious metals optionality. We want to welcome Alamos as a strategic shareholder and believe their endorsement continues to prove our strategy
of being the go-to royalty company for third-party holders. With 43 royalties now in our portfolio, we believe Metalla is well positioned for an exciting future."
El Realito Property (2% NSR royalty)
El Realito is a satellite deposit located adjacent to Agnico’s operating La India mine in Sonora, Mexico. The mine was put into production in 2014 and produced over 100Koz of gold in 2018 at an AISC of US$685/Oz.
Agnico declared its first reserve estimate at El Realito of 84Koz of gold and 418Koz of silver in February 2019 in addition to a resource of 112Koz of gold and 642Koz of silver reported April 2018. As of December 31, 2018, Agnico completed 15,879 metres of drilling in 2018 on El Realito and expects to drill an additional 10,000 metres for further mine-site exploration and 2,000 metres of infill drilling at El Realito and other nearby targets in 2019.
Agnico can buyback 1% of the royalty for US$4 million at any time and holds a 60-day right of first refusal on the full 2% royalty. See Agnico’s press release dated February 14, 2019, and press release dated April
26, 2018.

Wasamac Property (1.5% NSR royalty)
The Wasamac mine located in Rouyn-Noranda Quebec is a past-producing mine currently under development by Monarch. In December of 2018, Monarch Gold released a feasibility study outlining an underground operation that will produce an average of 142Koz of gold over an 11-year mine life at an
AISC of US$630/Oz. The mine is estimated to generate an after-tax NPV at a 5% discount rate of CAD$311 million and generate an 18.5% IRR. Monarch Gold anticipates process plant commissioning will commence in the second quarter of 2022 and will ramp up to full mine production by the fourth quarter of 2022.
Monarch currently has a reserve estimate of 1.77Moz grading 2.56g/t gold within a measured and indicated resource of 2.59Moz grading 2.70 g/t gold.
Monarch has the right to buy back 0.5% of the NSR for a one-time payment of CAD$7.5 million at any time. See Monarch’s press release, and the technical report titled “Feasibility Study of the Wasamac Project” prepared by RPA with an effective date of December 3, 2018.

La Fortuna Property (1% NSR royalty)
La Fortuna is high-grade mine currently being moved toward a production decision by Minera Alamos. In a Preliminary Economic Assessment released in August 2018, Minera Alamos published a study that
envisions an open pit milling operation that will produce an average of 50Koz of gold-equivalent ounces over a 5-year mine life at an AISC of US$440/Oz. The study estimates an after-tax NPV at a 7.5% discount rate of US$69.8M, IRR of 93% and an 11-month payback. Minera Alamos currently has a measured and
indicated resource estimate at La Fortuna of 3.5Mt grading 2.78g/t gold, 16.51g/t silver and 0.22% copper.
Metalla secured an option to purchase the 1% NSR royalty from Alamos Gold for US$0.6 million for a period of two years. See Minera Alamos’ press release, and the technical report prepared by CSA Global Consultants and titled “Mineral Resource Update and Preliminary Economic Assessment of the La Fortuna
Gold Project, Durango State, Mexico” with an effective date of December 12, 2018.

Beaufor Property (1% NSR royalty)
Beaufor is an operating underground gold mine in Val-d’Or, Quebec operated by Monarch. Since 1933, Beaufor produced more than 1.16 Moz at a historical grade of 7.5g/t gold. Production activities have been
extended to April 2019 with the goal to increase the high-grade resource via drilling. Beaufor currently has a reserve of 30.6Koz of gold grading 6.83g/t within an M&I resource of 85.4Koz of gold grading 7.67g/t.
For more information, please see Monarch’s press release, and the technical report titled “NI 43-101 Technical Report on the Mineral Resource and the Mineral Reserve Estimates of the Beaufor Mine” prepared InnovExplo Inc. with an effective date of September 30, 2017.

San Luis Property (1% NSR royalty)
San Luis is owned and operated by SSR and located in the Ancash Department in central Peru. A feasibility study on the San Luis project was completed in the second quarter of 2010, outlining a 3.5-year underground mine plan focused on the high-grade, silver-gold Ayelén vein. The project has a mineral
reserves of 7.2 million ounces of silver at an average grade of 447.2 g/t and 0.29 million ounces of gold at a grade of 18.06 g/t as at December 31, 2016, and indicated mineral resources of 9.0 million ounces of
silver at an average grade of 578.1 g/t and 0.35 million ounces of gold at a grade of 22.40 g/t. Inferred mineral resources of 0.2 million ounces of silver at an average grade of 270.1 g/t.
For more information, please see Feasibility Study published on June 4, 2010, and Resource Estimate published on January 9, 2009 (Effective as at December 31, 2016).

Asset Operator Country Stage Terms
El Realito Agnico Eagle Sonora, Mexico Development 2% NSR1
La Fortuna Minera Alamos Durango, Mexico Development Option - 1% NSR
Wasamac Monarch Gold Rouyn-Noranda, Quebec Development 1.5% NSR2
Beaufor Mine Monarch Gold Val d'Or, Quebec Production/Dev 1% NSR3
San Luis SSR Mining Peru Development 1% NSR
Big Island Copper Reef Mining Flin Flon, Manitoba Exploration 2% NSR
Biricu Guerrero Ventures Guerrero, Mexico Exploration 2% NSR
Boulevard Independence Gold Yukon, Ontario Exploration 1% NSR
Camflo Northwest Monarch Gold Val d'Or, Quebec Exploration 1% NSR
Edwards Mine Waterton Wawa, Ontario Exploration 1.25% NSR
Goodfish Kirana War Eagle Mining Kirkland Lake, Ontario Exploration 1% NSR
Kirkland-Hudson Kirkland Lake Gold Kirkland Lake, Ontario Exploration 2% NSR
Pucarana Buenaventura Peru Exploration Option -1.8% NSR
Capricho Pucara Resources Peru Exploration 1% NSR
Lourdes Pucara Resources Peru Exploration 1% NSR
Santo Tomas Pucara Resources Peru Exploration 1% NSR
Guadalupe/Pararin Pucara Resources Peru Exploration 1% NSR
Choquelimipie Vilacollo Chile Exploration 1%-5%
1 Subject to a 60-day right of first refusal period, 1% can be repurchased for US$4 million
2 0.5% can be repurchased for CAD$7.5 million
3 Production expected to halt in Q219
As consideration for the Royalty Portfolio, Metalla will issue a total of 8,239,698 Common Shares priced
at CAD$1.30 per share for a total of US$8 million. The price of the Common Shares is based on a ten (10)
day volume weighted average price of the Common Shares traded on the TSX Venture Exchange (the
“Exchange”). Metalla has secured an option, exercisable by the Company on completion of diligence, to
complete the acquisition of the La Fortuna royalty for a period of two years for an additional US$0.6
- 5 -
After the completion of the transaction, Alamos will hold approximately 6.3% of the issued and
outstanding common shares of Metalla. It is expected that Metalla will have a total of approximately 131.5
million shares issued and outstanding following the closing of the transaction. The Common Shares issued
to Alamos will be subject to a statutory four-month and one day hold period from the date of their
issuance and will be subject to restrictions on transfer on sales greater than 1.0% of Metalla shares.

Haywood Securities Inc. acted as financial advisor, and Gowling WLG (Canada) LLP acted as legal counsel for Metalla in connection with the transaction.

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