Vancouver, British Columbia, February 28, 2020 - Ely Gold Royalties Inc. (TSX-V: ELY, OTCQB: ELYGF, FRA: A2JSL0) (“Ely Gold” or the “Company”) announces that it has elected to accelerate the expiry date of a total of 2,655,000 outstanding common share purchase warrants as described below (the “Warrants”) originally issued by Ely Gold as part of its private placement of units (the “Private Placement”) which closed in two tranches on December 31, 2018 and January 17, 2019 (refer to press releases dated December 6, 2018, January 2, 2019, and January 18, 2019). Each Warrant entitles the holder to purchase one additional common share of Ely Gold (a “Warrant Share”).

In connection with the Private Placement, the Company issued: (i) 13,000,000 Warrants exercisable at a price of $0.22 per Warrant Share with expiry dates of either December 31, 2023 or January 17, 2024 to certain subscribers; and 510,000 Warrants exercisable at a price of $0.135 per Warrant Share with expiry dates of either December 31, 2020 or January 17, 2021 to two finders. To date, 10,855,000 of these Warrants have been exercised, leaving a balance outstanding of 2,655,000 Warrants.

Pursuant to terms of the Warrants, Ely Gold can elect to accelerate the expiry dates of the Warrants at any time, following the customary hold period and prior to the expiry of the Warrants, if the daily volume weighted average trading price of Ely Gold’s common shares on the TSX Venture Exchange is greater than $0.60 for more than 20 consecutive trading days, by giving notice (an “Acceleration Notice”) to the Warrant holders by issuing a press release within three (3) trading days of such an occurrence specifying that the Warrants will expire on the 30th day following and the giving of such Acceleration Notice.

Effective at the market close on February 28, 2020, Ely Gold’s volume weighted average trading price for each of the preceding 20 consecutive trading days has exceeded $0.60. The expiry date of the outstanding Warrants is being accelerated to 4:30 p.m. (Vancouver time) on Monday, March 30, 2020 (the “Accelerated Expiry Time”). Any Warrants remaining unexercised after the Accelerated Expiry Time will be cancelled and will thereafter be of no force or effect.

In addition to issuing an Acceleration Notice by way of this press release, Ely Gold will mail notice of the acceleration that address of the holders of the outstanding Warrants to the holder’s address shown on the applicable Warrant certificates.

Should all the Warrants outstanding be exercised, Ely Gold will receive proceeds of approximately $541,600.00 and will have approximately 115,917,885 common shares issued and outstanding. Warrant exercise funds received will be used for project generative activities and for general working capital purposes.

About Ely Gold Royalties Inc. Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 36 Deeded Royalties and 22 properties optioned to third parties. Ely Gold’s royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company’s option properties are expected to produce royalties, if exercised. The royalty and option portfolios are currently generating significant revenue. Ely Gold is well positioned with its current portfolio of over 20 available properties to generate additional operating revenue through option and sale agreements. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base. All portfolio properties are sold or optioned on a 100% basis, while the Company retains royalty interests. Management believes that due to the Company’s ability to generate third-party royalty agreements, its successful strategy of organically creating royalties, its equity portfolio and its current low valuation, Ely Gold offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term mineral royalties.

On Behalf of the Board of Directors
Signed “Trey Wasser”
Trey Wasser, President & CEO

Ely Gold Royalties Acquires Key Nevada Royalty Portfolio

February 28, 2020

Package Includes Five Important Royalties and Leases on
Known Mineral Deposits at the Goldstrike and Marigold Mines

Vancouver, British Columbia, February 28, 2020 -Ely Gold Royalties Inc. (TSX-V: ELY, OTCQB: ELYGF, FRA: A2JSL0) (“Ely Gold” or the “Company”) is pleased to announce that it has entered into an agreement (the “Agreement”) with VEK Associates, a privately held Nevada corporation (“VEK” or “VEK Associates”) whereby Ely Gold will acquire 100% of the outstanding shares of VEK for cash consideration of US$5,000,000, plus 2,005,164 Ely Gold share purchase warrants, each exercisable over a 24-month term to purchase one Ely Gold common share at an exercise price of CAD$0.62 per share (the “Warrants”). The acquisition is expected to complete by May 1, 2020 and remains subject to certain closing requirements and approvals including TSX-V approval.

The Agreement
Pursuant to the Agreement, Ely Gold will purchase 100% of the outstanding shares of VEK Associates, making VEK a wholly-owned subsidiary of Ely Gold. VEK currently has 13,734 outstanding shares; each of VEK’s shareholders, all of whom are arm’s length to Ely Gold, will receive cash consideration of US$364.06 and 146 Warrants per VEK share. VEK’s principal assets are made up of the five royalty properties and leases, together with VEK’s database, all as described in greater detail below.

VEK Associates
VEK was formed in 1982 by the US Geological Survey geologist, Ralph J. Roberts. Mr. Roberts is credited with the discovery of the Carlin and Battle Mountain Gold Belts, which today comprise the richest gold-mining region in Nevada and one of the richest in the world. Roberts and two well-known associates, Victor E. Kral and William Andrus, joined forces to form VEK/Andrus Associates, a Nevada general partnership (“VEK/Andrus”) over 35 years ago. While the VEK/Andrus team staked a number of properties over the years, today VEK/Andrus holds five properties, all of which are currently leased (the “Leases”). Four of the Leases are with Nevada Gold Mines JV (Barrick 61.5%/Newmont 31.5%) and the other Lease is with SSR Mining Inc. VEK owns 50% of VEK/Andrus, the remaining 50% being owned by the heirs of William Andrus. All of the Leases, discussed in greater detail below, pay advance minimum royalty payments and carry a 3.0% net smelter returns royalty with no buydowns.

REN Property- currently leased to Nevada Gold Mines
The REN Property consists of 86 contiguous unpatented lode mining claims covering 7.4 square kilometres of the Northern Carlin Trend. REN is centered along the northern Carlin Trend and has gold mining operations surrounding the property. The Goldstrike and Meikle Mines are within two kilometers of the southern boundary of the property, the Bootstrap/South Arturo and the Dee mines wrap around the REN Property to the west and north. The REN Property is contiguous to the Banshee Mine within the Goldstrike Complex. At the Meikle, Goldstrike and Deep Post deposits, the Post fault is recognized as a potential control fault for high-grade gold mineralization within the northern Carlin Trend. Mineralization hosted on adjacent and/or nearby projects is not necessarily indicative of the mineralization hosted on the Company’s properties. The Post Fault, on the REN Property, has not been explored for 1.4 kilometers starting at the southern end of the property. With its orientation on the Post Fault, REN has the potential to host a mineralized deposit within the Devonian-age Popovich limestone along the footwall of the Post Fault.

Marigold Property- currently leased to SSR Mining
The Marigold Property consists of 205 unpatented lode mining claims covering 7.8 square kilometres within the SSR Mining operation on the Battle Mountain-Eureka trend. SSR Mining has three resources outlined within VEK/Andrus claims at Marigold. The areas are 8N, 8D and 8 South Extension. In a 43-101 technical report on the Marigold Mine, dated effective December 31, 2017 and released July 31, 2018, SSR Mining highlighted drill results in the following areas within their current mine expansion exploration:
•8D & 8N (aka H1): Drill hole MR6045 intersected 164.6 meters grading 1.67 g/t gold.
•8 South Extension: Drill hole MR6034 intersected 91.4 meters grading 2.48 g/t gold.

A qualified person has not completed sufficient work to be able to verify SSR Mining’s drill data.

Lone Tree Property- currently leased to Nevada Gold Mines
The Lone Tree Property consists of 38 unpatented lode mining claims covering 3.2 square kilometres along the Battle Mountain-Eureka trend in sections 13,14,23 and 24 Township 34N and 36N, Range 42E in Humboldt County, Nevada. This property was generated by VEKA by plotting gravity trends extending northerly from the Lone Tree gold deposit. The trends have identified horst in the subsurface alluvium. The potential for additional discoveries between Lone Tree and Chimney Creek is excellent on these VEKA claims.

Pinson Property- currently leased to Nevada Gold Mines
The Pinson Property consists of 53 unpatented lode mining claims covering 4.4 square kilometres along the Osgood Mountain trend in sections 4, 8 and 16, Township 37N, Range 42E, in Humboldt County, Nevada. This property was generated by VEKA using geologic mapping along structures from the existing Pinson and Mag deposits. Surface mapping revealed hydrothermally altered limestone host rocks that could be projected into the VEKA claims.

Carlin Trend Property- currently leased to Nevada Gold Mines
The Carlin trend Property consists of 84 unpatented lode mining claims covering 7.0 square kilometres along the Carlin Trend in sections 1, 2, 3, 10, 11, 12, 20, 21, 28 ,34 and 35 Township 35N and 36N, Range 49E and 50 in Eureka County, Nevada. These claims were staked in the early days of the Carlin discovery and are scattered along the Carlin Trend. They represent many targets identified by Roberts and the VEKA team and have seen very little modern exploration.

VEK Associates Data
In addition to the 50% interest in VEK/Andrus, Ely Gold will be purchasing the entire database generated by Ralph Roberts and the VEK/Andrus team.

VEK/Andrus Advance Royalty Payments
The 2019 advance royalty payments provided in the Leases to VEK/Andrus were as follows:
Property Payments
(in US$; 50% to VEK Associates 2019)
REN US$458,712
Marigold $313,178
Lone Tree $15,000
Pinson $21,780
Carlin Trend $43,560
Total US$852,730

All of the Leases with the exception of Lone Tree, have inflation adjustment clauses associated with the payments, and all the Leases carry a 3.0% net smelter returns royalty (50% to VEK Associates).

Jerry Baughman, President of Nevada Select commented, The REN Property is located on one of the most prolific gold belts in the world and with its close proximity to infrastructure and a strong operating partner in Nevada Gold Mines, provides an excellent royalty value to Ely Gold. Combining Ely Gold’s existing extensive geological data base and knowledge with the VEK data base will create an incredible asset for property identification and development. Ely Gold’s Management Team is very excited about this property package, its royalty generation capability and future potential.

Trey Wasser, President & CEO of Ely Gold stated, “While our Fenelon Royalty continues to expand and excite the market, this royalty package has the potential to be of equal or more value to our rapidly growing royalty portfolio and to increase long-term shareholder value.”.

Qualified Person
Stephen Kenwood, P. Geo, is a director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.