Drilling Update From The Hardshell Royalty Property

VANCOUVER - EMX Royalty Corporation (EMX) reported on drilling at the Hardshell royalty property at a new exploration target, named the Peake prospect, which is part of South32 Limited's Hermosa project in southeast Arizona. Hermosa also includes the feasibility stage Taylor lead-zinc-silver deposit situated directly north of EMX's royalty claim block. EMX retains a 2% net smelter return (NSR) royalty on Hardshell that is not capped nor subject to buy down.

Drill results from Peake, which is partially covered by the Hardshell royalty, include copper-enriched skarn type mineralized intercepts of 76.5 meters (1,308.2-1,384.7 m) averaging 1.52% copper, 0.2% zinc, 0.4% lead, and 25 g/t silver in hole HDS-552, as well as 73.8 meters (1,386.8-1,460.6 m) averaging 1.06% copper, 0.5% zinc, 0.7% lead, and 67 g/t silver in HDS-661. In addition, intercepts more typical of Taylor carbonate replacement deposit ("CRD") style mineralization include 9.8 meters (966.2-976.0 m) averaging 0.69% copper, 12.2% zinc, 8.2% lead, and 77 g/t silver in HDS-353. South32's geological model indicates the potential for Peake to host a structurally and lithologically controlled mineralized skarn system that connects to the Taylor CRD mineralization.

The Hardshell royalty was organically generated by the subsidiary Bronco Creek Exploration Inc. (BCE). BCE recognized the alteration and mineralization zoning patterns within the district, and staked prospective open ground. Hardshell was optioned in 2015 for a 2% NSR retained royalty interest. The Hermosa project, including Hardshell, was subsequently acquired by South32 in 2018. South32 has steadily advanced Hermosa, which now includes the step-out exploration drilling that has delineated Peake. The Peake mineralization covered by the Hardshell royalty highlights the discovery optionality within EMX's royalty portfolio.

South32's drilling at Hardshell has focused on the copper-rich skarn mineralization at the Peake prospect, but has also intersected potential extensions of the Taylor CRD system. Peake consists of copper-lead-zinc-silver mineralization delineated as a 1,200 meter by 550 meter, west-northwest trending zone of variable thickness at depths of 1,300 to 1,500 meters. South32 is following up on the Peake drill results as part of its Hermosa exploration programs, and has directed US$13 million to its exploration programs at Hermosa in the nine months.