Q3 2024 Trading Update

Ecora Resources PLC (LSE/TSX: ECOR) issues the following trading update for the period 1 July to 30 September 2024.

Ecora is the leading royalty company focused on supporting the supply of industrial commodities essential to creating a sustainable future. The Group's portfolio combines volume growth in 2024 and 2025 from its currently producing royalty portfolio with an extensive pipeline of high-quality development projects that are expected to drive material medium term revenue growth.

Marc Bishop Lafleche, Chief Executive Officer of Ecora, commented:

"Following a solid performance in Q3, the Group reported US$5.2 million of portfolio contribution. Importantly, underground operations at Voisey's Bay are ramping up with total deliveries in H2 on schedule to at least double the number received in H1. The number of cobalt deliveries is anticipated to continue to increase throughout 2025 ahead of full steady state production being achieved during 2026. This will see Voisey's Bay become a cornerstone asset for the Group, offering leverage to a recovery in cobalt prices from current cyclical lows.

"There were several positive developments in our sector leading copper portfolio, including the updated Feasibility Study at Santo Domingo, which confirmed the project's robust economics and potential to operate within the lowest cost quartile of global copper mines."

Highlights:

• 15% increase in portfolio contribution for the nine months ended 30 September 2024 of US$56.8 million (2023: US$49.4 million)
• US$5.0 million of core portfolio contribution (ex-Kestrel) for Q3 2024 (Q3 2023: US$4.8 million; Q2 2024: US$5.5 million)
• In line with guidance, production at Kestrel was mainly outside of Ecora's private royalty area in Q3 2024, with mining expected to return to Ecora's royalty area in H1 2025
• Total portfolio contribution of US$5.2 million in Q3 2024 including Kestrel (Q3 2023: US$5.8 million; Q2 2024: US$31.8 million)
• Ramp up of underground mining activity at Voisey's Bay accelerated resulting in the Group receiving four cobalt deliveries (each delivery is 20 tonnes of which 70% is attributable to the Group) during the period at an average realised sales price of $11.4/lb

o The average realised sales price for Q3 2024 reflects the weighting to standard grade product. Deliveries in Q4 2024 are expected to be primarily alloy grade product

• Whitehaven Coal announced the approval of the Narrabri Stage 3 project in accordance with the Environment Protection and Biodiversity Conservation Act. Subject to no further appeals, the approval triggers Ecora's right to a total of US$5.0 million of staged contingent consideration[1]
• The operator of the Four Mile mine notified the Group that no royalty income will be due in H2 2024 as there have been no sales of product from the Group's royalty area - the Group is currently discussing with the operator the circumstances and timeline for sales restarting
• Net debt at 30 September 2024 of US$85.5 million (30 June 2024: US$86.0 million)

Portfolio updates:

• In September, Ecora completed the acquisition of a 0.85% Gross Revenue Royalty over the Phalaborwa rare earths project located in South Africa, operated by Rainbow Rare Earths ("Rainbow"), for a cash consideration of US$8.5 million

o In September, Rainbow announced a 15% increase in the Mineral Resource Estimate for Phalaborwa, taking the total resource tonnage to 35.0 Mt and increasing the project life by two years

• Capstone Copper released an updated Feasibility Study for the Santo Domingo project re-affirming the quality of the project as a low-cost operation with expected C1 cash costs of $0.33 per payable pound of copper over its 19-year mine life
• Largo Resources announced a 42% increase in production in Q3 2024 to 3,072 tonnes of V205, their highest quarterly production number in seven quarters - most of this is expected to be reported as sales subject to royalties in Q4 2024
• In July, BHP announced that it will temporarily suspend the construction of the West Musgrave project in October 2024, with the decision to be reviewed by February 2027
• Cyprium Metals closed a US$27.3 million offtake financing agreement with Glencore plc, with the proceeds in part funding early site works at the Nifty copper complex as well as Nifty mine restart feasibility studies. During the period, Cyprium also released an updated mine optimisation plan and is expected to release an updated Pre-Feasibility Study in Q4 2024
• Alta Copper announced an infill drilling campaign commencing in H1 2025 targeting high-grade mineralisation zones at Cañariaco Norte, accompanied by an exploration program in the nearby and highly prospective Cañariaco Sur and Quebrada Verde extensions (all of which are within Ecora's royalty area). Alta Copper's largest shareholder Fortescue Ltd. (34%) continued to support the project's development via a C$2.5 million private placement during the period

Outlook:

• Voisey's Bay underground production to continue to ramp-up towards steady state levels in 2026

o 8-12 deliveries expected in H2 2024 (H1 2024: 4), FY 2024 guidance of 12-16 deliveries remains unchanged

o 20-28 deliveries expected in 2025

o Life of mine average of 40 deliveries per annum expected when fully ramped up

• Mantos Blancos copper production expected to be higher in Q4 2024 following scheduled maintenance during Q3 2024
• Business development activities primarily focused on growing the Group's near-term income producing royalty portfolio
• Net debt expected to reduce meaningfully in the next 18 months at current commodity prices and operator production guidance, absent royalty acquisitions