Jerritt Canyon Provides First Royalty Payment

VANCOUVER - Ely Gold Royalties Inc. has filed an independent Technical Report (NI 43-101 Technical Report on the Jerritt Canyon Mine, Elko County, Nevada) prepared by Behre Dolbear . The Company currently has two producing royalties on the Jerritt Canyon Mine and Facilities: Jerritt Canyon Net Smelter Returns Royalty (the “NSR Royalty”)

The closing of a 0.5% purchase of the NSR Royalty on Jerritt Canyon from Eric Sprott (Sprott) was announced on May 13, 2020. The NSR Royalty covers all current resources outlined in the Technical Report as well as the entire 119 square mile land package controlled by Jerritt Canyon Gold LLC (JCG). Ely Gold has received its first NSR Royalty payment from JCG in the amount of US$156,632.00. The payment included royalties earned from February 3, to March 31, 2020 Jerritt Canyon Per Ton Royalty.

Gold was first discovered at the Jerritt Canyon Mine in 1972, with the first gold poured in 1981. Between 1981 and 1999, mining was conducted via open pit. Underground operations began in 1993 with the opening of the SSX-Steer Complex and Smith mine. Since 2015, the Jerritt Canyon Mine has been operated by JCG, a private mid-tier North American gold producer. Its primary assets are the permitted and operating Jerritt Canyon processing plant and associated four gold mines located 50 miles north of Elko, Nevada. According to JCG LLC, since mining began at Jerritt Canyon, more than eight million ounces of gold have been produced. The mineral processing operation at Jerritt Canyon is designed to process highly refractory gold ores up to 4,000 tpd and the mill reported processing in excess of 1.1 million tons in 2017 and 1.2 million tons in 2018.

Gold mineralization at Jerritt Canyon occurs in both upper plate and lower plate stratigraphy. While approximately 30% of the 119 square mile land package has experienced first- pass exploration, most of the property outside the mined areas, has not been explored to date. Lower plate rocks are known to occur at Jerritt Canyon at surface, near-surface and under valley fill.