Vancouver, British Columbia – February 22, 2022 - Gold Royalty Corp. (“Gold Royalty” or the “Company”) (NYSE American: GROY) is pleased to announce that it has entered into an agreement (the "Agreement") to acquire an existing 0.75% net smelter return (“NSR”) royalty (the “Royalty”) on a portion of the Côté Gold Project, located in Ontario, Canada and owned by IAMGOLD Corporation ("IAMGOLD"), as the operator, and Sumitomo Metal Mining Co., Ltd., for total consideration of US$15.875 million.

David Garofalo, Chairman and CEO of Gold Royalty, commented: “Together with our royalty on Canadian Malartic’s Odyssey Project, Gold Royalty will own royalties on what is expected to be two of Canada’s largest and longest-life gold mines. With first cash flow expected in 2023, the acquisition of the royalty on the Côté Gold Project will further enhance our sector-leading growth profile, and expand our portfolio to include 28 producing and developing royalties anchored in Tier one jurisdictions.”

“This transaction represents the fifth major acquisition undertaken by Gold Royalty since our IPO last year, representing an unprecedented pace of growth and resulting in a diverse and well-balanced portfolio of 192 high-quality precious metal royalty assets. This enhanced scale drives increased trading liquidity, lower cost of capital and, ultimately, higher valuations”, added Mr. Garofalo.

The Acquisition

Pursuant to the Agreement, Gold Royalty will acquire the Royalty for total consideration of US$15.875 million, comprised of: (i) US$15.0 million in cash; and (ii) the balance through the issuance of common shares of Gold Royalty based on the 20-day volume weighted average price of such shares on the NYSE American as of the business day immediately preceding closing. The transaction is subject to customary conditions and is expected to complete in early-March 2022.

The Côté Gold Project

The Côté Gold Project is located in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario, Canada, approximately 125 km southwest of Timmins and 175 km northwest of Sudbury.

IAMGOLD completed an updated feasibility study on the project in 2021, as set out in a technical report titled " Technical Report on the Côté Gold Project, Ontario, Canada" with an effective date of November 26, 2021 (the "Côté Technical Report"). The report describes a 36,000 tpd open pit operation with estimated average annual production of 489,000 oz Au over the first 5 years of operation, and average annual production of 367,000 oz Au at an AISC of US$802/oz over the 18-year mine life.

In July 2020, IAMGOLD announced a construction decision at the Côté Gold Project. On January 12, 2022, IAMGOLD disclosed that construction is well underway (detailed engineering at 92.2%, overall project is 43.4% complete), with commercial production expected in the second half of 2023.

The Côté Gold Project open pit is being mined in four phases, with the approximate ultimate open pit outline shown in the figure below:
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