Bureau of Land Management Approves Expansion of
Coeur Mining’s Rochester and Packard Mines, Nevada

Vancouver, British Columbia – July 21, 2020 – Ely Gold Royalties Inc. (TSXV: ELY) (OTCQX: ELYGF) ("Ely Gold" or the "Company") is pleased to announce that it has entered into a binding letter agreement (the “Transaction”) with a private individual (“the Seller”) whereby Ely Gold, through its wholly-owned subsidiary Nevada Select Royalty, Inc. (“Nevada Select”), a Nevada corporation, will acquire 100% of all rights and interests to an additional one percent (1.00%) net smelter returns royalty (“NSR”) on the Lincoln Hill Property, located in Pershing County, Nevada (the “Lincoln Hill Royalty”), operated by Coeur Mining Inc. (“Coeur”) (NYSE: CDE). Closing of the Transaction is subject to certain conditions precedent, including approval of the Transaction by the TSX-Venture Exchange (the “Closing”). Closing is expected on or about September 1, 2020.

With this transaction, Ely Gold increases its Lincoln Hill Royalty to a two percent (2%) NSR. Lincoln Hill is considered one of Ely Gold’s most important assets (“Key Assets”). Coeur received Project Record of Decision for the Plan of Operations that includes the new 300 million-ton Stage VI leach pad at the Rochester Mine (“Rochester”). The Final Environmental Impact Statement analyzing the environmental effects of the proposed expansion of the Rochester and Packard Mines, was published in the Federal Register Feb. 24, 2020 (see Figure 1).

Trey Wasser, President and CEO of Ely Gold commented on the Transaction, “We are very pleased to add another 1% NSR on the Lincoln Hill Royalty to our royalty portfolio. Purchasing additional royalties on our Key Assets is a critical part of our near-term growth strategy at Ely Gold. With permitting completed on the leach pad expansion, the higher gold grade Lincoln Hill ore will be in very close proximity to the operations and should extend the life of mine at Rochester. We look forward to delivering more news as Coeur is now undertaking confirmation drilling at Lincoln Hill.”

Overview of Lincoln Hill
Lincoln Hill is adjacent to the Rochester open-pit, heap leach mine, providing significant operational synergies for Coeur (See Figure 2). The Lincoln Hill Royalty covers ninety-seven (97) unpatented claims and one (1) patented lode claim. Coeur purchased the Lincoln Hill Property, as part of a larger property package, from Alio Gold Inc., in October 2018. The purchase was announced in a press release dated October 16, 2018 (the “Coeur Press Release”).

The Lincoln Hill property package also includes 23 unpatented claims known as the Rosal Claims (“Rosal”), where Ely Gold currently holds a 1.5% NSR and is included with 22 other properties that make up Ely Gold’s Development Assets. Development Assets are simply defined as properties “at or near” producing mines increasing the chance for the royalty to be productive.

According to the Coeur Press Release, the acquisition offered, in part, the following synergies with Rochester:
•Lincoln Hill average gold resource grade is more than four-times higher than Rochester’s current grade;
•Lincoln Hill is expected to become a source of higher-grade, low-cost production capable of bolstering; future cash flow and further extending Rochester’s mine life; and
•Consistent with Coeur’s strategy of growing its production and cash flow with the addition of low- risk, high-quality and high-return asset.

The Transaction

Ely Gold will pay the Seller a total of $1,000,000 payable as follows:
•$500,000 at Closing
•$500,000 payable on January 10, 2021

The 2021 payment will accrue simple interest at 5% and be secured by the Lincoln Hill Royalty. In addition, Ely Gold will issue to the Seller 1,000,000 common stock purchase warrants. Each full warrant will allow the Seller to purchase one share of Ely Gold common stock at CAN$1.69 for two years from Closing.

Figure 1
https://www.blm.gov/press-release/blm-approves-expansion-coeur-rochester-and-packard-mine

Figure 2
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