Category: Canada

Good evening, let’s start with today’s top stories:

Pro-Palestinian activists who have pitched their tents on the McGill University campus scored a legal victory on Wednesday when a Quebec judge rejected a request for an injunction to stop their protest. Justice Chantal Masse ruled that the students who wanted protesters to relocate failed to demonstrate that their access to the school was being blocked or that they would be unable to write their final exams.

On the West Coast, pro-Palestinian protesters have set up camp at a second university in British Columbia, with tents going up on a field at the University of Victoria.

Meanwhile, in the United States, duelling groups of protesters clashed overnight at the University of California, Los Angeles hours after police had burst into a building occupied by protesters at Columbia University.

TD investors concerned about U.S. regulatory probe after bank sets aside US$450-million for penalties

Toronto-Dominion Bank investors are concerned with the lack of details about a probe by U.S. regulators after the lender disclosed that it is setting aside US$450-million to cover penalties.

TD is booking the provision as it awaits further penalties from investigations by other U.S. regulatory and law enforcement agencies that scuttled the bank’s takeover of Tennessee-based First Horizon Corp. last spring.

The bank said that it is unable to estimate the full extent of the penalties at this time. Some analysts have estimated that the monetary penalties could range as high as US$2-billion. Analysts and shareholders are warning the issue could strike a blow to the bank’s outlook.

From the Secret Canada series: Critics question Ontario watchdog’s decision to keep health care worker shortage data confidential

Health care stakeholders and an expert on privacy are criticizing a recent ruling that allows the government of Ontario to keep details of the province’s shortages of nurses, personal support workers and doctors confidential.

Alec Fadel, an adjudicator at the Office of the Information and Privacy Commissioner of Ontario, acknowledged that there is “compelling public interest” in disclosing the figures. But the bid by journalists at Global News to obtain human-resources data from the Ministry of Health through a freedom of information request was turned down. Critics say Fadel relied too heavily on the government’s claim that making those figures public would be harmful to its relations with health professionals or private staffing agencies.

B.C. government reveals costs of hosting FIFA World Cup matches has doubled

The cost for British Columbia and Vancouver to put on seven FIFA World Cup games in 2026 has more than doubled and could reach even higher, eclipsing the latest tally Toronto is expected to pay for holding six matches.

The total cost is now expected to be between $483-million and $581-million, compared with the last figure the province released, $230-million in January, 2023. Even Tuesday’s lower figure eclipses the most recent forecast for Toronto to hold its six games: $380-million.

Critics on city council have said Toronto’s commitment has been hard to justify in the face of a housing crisis and annual deficits that led to a recent 9.5 per-cent property tax hike, the largest increase in the past two decades.

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ALSO ON OUR RADAR

Financial services: Echelon Wealth Partners faces action by Canada’s industry regulator over U.S. trading.

Politics: House of Commons Speaker Greg Fergus is rebuffing Conservative calls to resign after he kicked Opposition Leader Pierre Poilievre out of Question Period.

Crime: Police begin a search of a Saskatoon landfill for Mackenzie Lee Trottier, who was 22 when she was last seen in December 2020.

Earnings: Loblaw Cos. Ltd. reported a 9.8-per-cent increase in profit in its first quarter and raised its quarterly dividend paid to shareholders by 15 per cent, as shoppers continue to visit its grocery stores more often.

U.S. central bank: The Federal Reserve says interest rates will stay at a two-decade high until inflation further cools.

Travel: Egypt’s ancient and lively City of the Dead confronts bulldozers in modernization campaign.

How we eat: Kitchens and gardens go together. Read more about the joys of growing your own food, plus a recipe to try out.

Listen to The Decibel: Distance running, once a relatively niche sport, has exploded in popularity and is drawing in a whole new generation of runners.

MARKET WATCH

North American stock markets slide as investors take cover before U.S. Federal Reserve decision

North American stock markets closed mixed on Wednesday after the Federal Reserve left its key interest rate unchanged, as expected, and indicated that while its next move will likely be a rate cut, continued progress on inflation is not assured. Canada’s main stock index eked out a gain Wednesday even as energy stocks fell.

The Dow Jones Industrial Average rose 87.37 points to 37,903.29, the S&P 500 lost 17.3 points to 5,018.39 and the Nasdaq Composite dropped 52.34 points to 15,605.48. The Toronto Stock Exchange’s S&P/TSX composite index ended up 14.01 points at 21,728.55, with the index closing well below its session high.

The Canadian dollar traded for 72.68 cents US compared with 72.75 cents US on Tuesday.

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TALKING POINTS

In difficult times for humanity, animals can unite us

“Beyond the domestic, we see what we are doing to the animals that have gone about their lives roaming the Earth for eons before we came along and messed it up. Now they’re clinging to shrinking ice floes, ingesting plastic, dying in wars. They have done nothing to us. And look what we are doing to them.” – Marsha Lederman

Maple Leafs fans are linked by a long, prideful streak of masochism

“Being a Leafs fan is knowing they won’t win, and pretending to believe anyway. It’s a lie you tell yourself because it makes you unhappy. But unhappy the way your dad taught you, and the way you will teach your kids.” – Cathal Kelly

B.C.’s hard lesson on hard drugs

“B.C. is making the right moves to grapple with the issues. The easy, but wrong, decision would be to abandon the policy so soon after the widely supported change was instituted. Like many policies, it is a work in progress. A better balance is needed between public safety and helping those in the grip of addiction.” – Editorial board

LIVING BETTER

Three tequilas to enjoy on Cinco de Mayo

Cinco de Mayo celebrations are coming up this weekend, adding to the growing thirst for tequila in this country. As consumption of other alcoholic beverages slows, tequila continues to gain fans. Christopher Waters recommends three tequilas for May 5 festivities and beyond.

Plus: Nine wines to kickstart warm weather entertaining

TODAY’S LONG READ

Snubbed: Saint-Pierre and Miquelon’s residents feel far removed from the Paris Olympics festivities

Every part of France is joining in the festivities for the 2024 Paris Olympics, including far-flung territories. But one corner of the country is feeling a bit left out: Saint-Pierre and Miquelon, an archipelago with a population of around 6,000 located off the coast of Newfoundland and Labrador. As The Globe’s Europe correspondent Paul Waldie writes, the place has been a bit of an afterthought for centuries, tossed back and forth between England and France before finally ending up as French territory in 1816 almost by default. Being left off the route for the Olympic torch relay has irked some locals. Read more here.

Evening Update is written by Sierra Bein. If you’d like to receive this newsletter by e-mail every weekday evening, go here to sign up. If you have any feedback, send us a note.

A growing number of women’s groups, regulators and corporate performance governance experts are raising flags after the release of a recent S&P Global report signalling an “alarming turning point” for women’s leadership parity in American companies.

Women accounted for 11.8 per cent of C-suite roles in 2023, according to the report, down from 12.2 per cent the previous year. This number is significant, considering women’s representation in leadership positions had been on the incline over the years.

This sudden drop marks a reversal in progress toward a decades-old goal to ensure more women gain executive positions in North American corporations.

The Canadian situation looks equally disappointing. According to Statistics Canada, only five per cent of Toronto Stock Exchange issuers retained a female CEO in 2022 — a number that remains static since the first year of data collection. In Canada, there are more CEOs named Michael than women.

Women have been striving to land a C-suite (such as CEO) corner office while gaining a seat at the corporate table for decades. For those women who do, many have become increasingly disaffected by the patriarchal hierarchy and biases that await them.

In response, women have been seeking alternate leadership models: a C-hub rather than a C-suite, where “C” represents collaboration based on clarity of purpose and coordinated channels of communication, rather than “chief” in charge.

One step forward, two back

As women inch toward the goal of achieving 30 per cent of leadership positions — the target designed to break the proverbial “glass ceiling” — the gap to equity has been widening in some places.

This predictable equity regression, studied for decades, is known as the “glass cliff.” It involves women being intentionally put into precarious leadership positions that often result in their failure. Studies have shown that only when an organization is in crisis are women more likely than men to be placed in leadership roles.

Phenomena like the glass cliff reflect the corporate two-step pattern of gender equity — any gains that are made are quickly followed by losses. Nancy Coldham, one of the co-authors of this article, is currently conducting her doctoral studies on the topic.

Gender parity makes good business sense

Improving gender diversity on boards and in organizations results in improved financial performance. Organizations experience the greatest benefits of diversity when they have between 40 and 60 per cent female representation.

However, the Globe and Mail’s 2023 Report on Business study noted that “at the rate we’re going, we won’t reach parity for another four decades.”

As Ivey Business School professor Alison Konrad states: “I’ve uncovered over 100 large, longitudinal peer-reviewed panel studies of the relationship between board gender diversity and firm performance, and the beneficial findings are strong and clear.”

Read more:
Gender diversity on corporate boards can improve organizational performance

Research from the non-profit Catalyst, the Boston Consulting Group, Gartner research firm and Harvard University all point to the significant corporate performance benefits of gender parity.

According to the World Economic Forum, the cost to the global economy of failure to achieve gender parity is a staggering $12 trillion. That’s a bottom-line impact that cannot be ignored.

According to the United Nations’ Sustainable Development Goals, women’s leadership at executive levels matters to all. Yet decades of struggling for leadership equity remains elusive.

Skirting the equity impact

Boards that are gender diverse have improved decision-making and corporate governance. Women in leadership foster more engaged and productive corporate management teams. Yet corporations here in Canada and globally continue to skirt the proof of diversity impact.

Research from Rotman’s Institute for Gender and the Economy and a recent Bloomberg Report found a reversal is underway; retaining women’s corporate leadership has failed.

The sudden loss of representation in the C-suite is “particularly disappointing,” to Sarah Cottle, head of data and insights at S&P Global Market Intelligence. She notes it’s “not just a loss in momentum but a loss in seats.”

Deloitte drops the gauntlet in its most recent Women in the Boardroom report: “With women still underrepresented on company boards globally, why aren’t organizations and investors doing more to realize the benefits that diverse boards bring?”

Invisible biases and barriers

The corporate landscape is littered with women CEOs who accepted precarious leadership positions: Indra Nooyi at Pepsi, Mary Barra at General Motors, Marissa Mayer at Yahoo, Ellen Pao at Reddit, Carly Fiorina at Hewlett-Packard and many more.

The departure of HSBC Canada CEO Linda Seymour marked the end of a brief period in history where women led large Canadian banks.

These women fit the description of what is known as Tall Poppy Syndrome, where individuals are undermined or penalized for their success by those around them. Women are more likely to be victims of Tall Poppy Syndrome than men are.

Men are more likely to gain promotions over women, impinging on their advancements before they even begin. Multiple invisible biases and barriers impede women in the workplace before they attempt to lead; the negative outcomes only serve to confirm the more overt biases. Biases must be intentionally revealed and excised for real change to occur.

Achieving gender parity

Perhaps the best solution to the decline in the C-suite, is women declining the C-suite. Women are rejecting patriarchal norms of rigidity, burnout, harassment, limited opportunity and unfair pay in what has been termed the “Great Breakup.”

Women are more likely than men to leave their corporate jobs when their needs are not being met at work. In rejecting the C-suite model, women are calling for more power-balanced, equitable models of leadership that involve collaboration rather than domination — a model in which, as
Gloria Steinem famously states, “we are linked, not ranked.”

Likewise, in co-author Jennifer Walinga’s research on women entrepreneurs, women shared how leaving their corporate jobs to be an entrepreneur fulfilled their desires for a new universe where post-heroic, non-hierarchical leadership models can be enacted.

RBC may have unveiled another possible solution to failed leadership parity that they call the “great wealth transfer” — a “seismic change” that is seeing wealth ownership transfer from men to women. In fact, it is estimated that, by 2028, women in Canada will control $4 trillion in assets — almost double the $2.2 trillion they control today.

With women projected to wield significantly more economic influence in the coming years, there is a potential for them to reshape leadership dynamics and drive positive change.

In confronting failed leadership parity targets, and the failure to benefit from diversity, solutions may be found in women’s vision for more sustainable leadership models, growing wealth and economic clout in the future, and surging political impact as voters at the ballot box.

 Haivision Systems Inc. (“Haivision”) (TSX: HAI), a leading global provider of mission-critical, real-time video networking and visual collaboration solutions, is proud to announce its 20th anniversary – a significant milestone that highlights the company’s leadership and innovation in mission-critical, live video solutions. 

Since its founding in Montreal in 2004, Haivision has been at the forefront of live video technology, providing cutting-edge solutions that empower the Fortune 500, government and defense organizations, and media and entertainment companies to drive remote connectivity, awareness, better decisions, and faster responses with real-time mission-critical video.  

 Over the past two decades, Haivision has revolutionized the way video is used for mission-critical applications, with a focus on security, reliability, performance, and quality. The company is proud to serve an impressive list of customers and major events including Microsoft, META, Salesforce, NYSE, RBC, Olympics, FIFA World Cup, NHL, Fox Sports, NASCAR, MLB, U.S. Department of Defense, SpaceX, and NASA. 

 Key highlights in Haivision’s 20-year history include:  

·         Eight strategic acquisitions (four in the U.S., two in Spain, one in Germany and one in France) 

·         360 employees in Montreal and across the Americas, EMEA, and APAC 

·         $140 million in revenue in fiscal year 2023 

·         22.1% CAGR (compound annual growth rate) since its founding 

·         17 years of positive Adjusted EBITDA 

·         A debut on the Toronto Stock Exchange (TSX: HAI) in December 2020 

Haivision’s journey has been marked by numerous achievements, including the development of the award-winning Makito video encoder series, the invention of the SRT video transport protocol which has become the most widely adopted protocol in the industry, and four Emmy® Award wins for technology and engineering innovation. These milestones reflect Haivision’s dedication to excellence and its role as a trusted provider of mission-critical video solutions. 

“Twenty years ago, we set out to change the real-time, low-latency, live video networking landscape,” said Mirko Wicha, Founder and CEO of Haivision. “Today, we celebrate not just the success of Haivision, but also our customers, partners, and dedicated employees that have been integral to our journey. We are incredibly proud of the impact we’ve had on the industry and are excited for the future as we continue to push the boundaries of what’s possible in ultra-low latency live video.” 

The Haivision team will celebrate its 20th anniversary at company events and major tradeshows throughout the year. For more information about Haivision, please visit: https://www.haivision.com/. 

MONTREAL—Haivision Systems Inc. is marking its 20th anniversary by detailing sme of the accomplishments and developments that have helped the company become a leading global provider of real-time video networking and visual collaboration solutions. 

Major achievements since its founding in 2004 include the development of the award-winning Makito video encoder series, the invention of the SRT video transport protocol which has become the most widely adopted protocol in the industry, and four Emmy Award wins for technology and engineering innovation, the company said. 

“Twenty years ago, we set out to change the real-time, low-latency, live video networking landscape,” said Mirko Wicha, founder and CEO of Haivision. “Today, we celebrate not just the success of Haivision, but also our customers, partners, and dedicated employees that have been integral to our journey. We are incredibly proud of the impact we’ve had on the industry and are excited for the future as we continue to push the boundaries of what’s possible in ultra-low latency live video.”

Since its founding in Montreal in 2004, Haivision has grown into a provider of live video technologies for Fortune 500 companies, government and defense organizations, and media and entertainment companies. The company reported that it currently serves an impressive list of customers and major events including Microsoft, META, Salesforce, NYSE, RBC, Olympics, FIFA World Cup, NHL, Fox Sports, NASCAR, MLB, U.S. Department of Defense, SpaceX, and NASA.

Other key highlights in Haivision’s 20-year history include:

• Eight strategic acquisitions (four in the U.S., two in Spain, one in Germany and one in France)
• 360 employees in Montreal and across the Americas, EMEA, and APAC
• $140 million in revenue in fiscal year 2023
• 22.1% CAGR (compound annual growth rate) since its founding
• 17 years of positive Adjusted EBITDA
• A debut on the Toronto Stock Exchange (TSX: HAI) in December 2020

The Haivision team will celebrate its 20th anniversary at company events and major tradeshows throughout the year. For more information visit: https://www.haivision.com/.

VANCOUVER, BC / ACCESSWIRE / May 1, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (“Electric Royalties” or the “Company”) is pleased to announce the closing of the previously announced transaction (the “Transaction”) to acquire a portfolio of 18 royalty agreements and 32 lithium properties in Ontario, Canada (the “Ontario Lithium Projects” or the “OLP”). Pursuant to the Asset Purchase Agreement between the Company and 1544230 Ontario Inc., MK Exploration Services Inc. and Gravel Ridge Resources Ltd. (together, the “Vendors”) dated April 8, 2024, the Company has issued 2,250,000 common shares of the Company to the Vendors and made a net cash payment of C$1,689,000 (which reflects a total cash consideration of C$1,875,000, less C$75,000 down payment provided to the Vendors in November 2023 and C$111,000 held in escrow representing cash payments and the value of shares received by the Vendors after January 1, 2024 pursuant to certain mineral property interests in the OLP).

Brendan Yurik, CEO of Electric Royalties, commented: “Northwestern Ontario is known for its lithium potential; thus we are very pleased to complete the acquisition of these prospective lithium royalties and optioned properties in that region. We have strategically selected these royalties and projects from an initial 126 projects, based on our assessment of their prospective geology and greater proximity to prospects with reported lithium resources and exploration activity.

“Current lithium market conditions have allowed us to acquire this portfolio at a relatively low cost, while doubling the size of our overall royalty portfolio. The acquisition represents a significant opportunity for Electric Royalties to grow in an accretive manner, as forecasts suggest lithium prices will rebound in the longer term.”

Overview of the Ontario Lithium Projects (OLP)

The OLP portfolio consists of 18 royalties (Table 1) and 32 lithium properties (Table 2) located in the province of Ontario, Canada. 31 of the 32 properties are currently being explored by third parties pursuant to option agreements and, to the extent that the applicable option payments (yielding the Company up to $2.2 million) are made over the next two and a half years and the options are exercised, each of the properties would revert into royalty interests for Electric Royalties. Electric Royalties would retain its ownership interest in any properties that are not ultimately transferred to an optionee and would have the right to re-option, sell, or relinquish such properties.

The properties cover prospective land on the same geological trends of, and surrounding, major lithium discoveries in Ontario. Six of 24 developed lithium prospects in Ontario with reported reserves or resources are located in the vicinity of these properties1. Several of these properties are adjacent to Green Technology Metals’ Seymour Lake Lithium Project (on which Electric Royalties holds a 1.5% net smelter royalty interest) that hosts the Aubry deposits (see Figure 1). The Seymour Lake Lithium Project is road-accessible year-round and is envisioned as a central processing facility with the potential to add production from other deposits in the area. Green Technology Metals is currently pursuing a vertically integrated strategy with multiple mine and processing hubs supplying a central lithium conversion facility that would be built in Thunder Bay, Ontario2.

Table 1: OLP Royalties

Table 2: OLP Properties

Figure 1: Map showing claim groups comprising the OLP in the Seymour Lake area

Currently, Canada hosts the sixth-highest lithium reserves of any country, yet 2022 production totaled an estimated 500 tonnes – an amount dwarfed by global lithium powerhouses such as Chile and Australia3. The hard-rock lithium deposits in Canada are hosted in pegmatites containing a lithium-bearing mineral known as spodumene. Lithium hosted in spodumene provides producers with greater flexibility as it can be processed into either lithium hydroxide (mainly used in high-density electric vehicle (EV) batteries) or lithium carbonate4. It also offers faster processing times and is higher quality than lithium extracted from brine as spodumene typically contains higher lithium content4. Spodumene-bearing pegmatites are often hosted in metavolcanic or metasedimentary rocks adjacent to granitic intrusions5. Many of the world’s largest hard-rock lithium occurrences are found in Archean or Paleoproterozoic orogens – geological environments underlying approximately two-thirds of Ontario6.

One of the most advanced and high-grade lithium projects in Ontario is Frontier Lithium’s (“Frontier”) PAK and Spark deposits on which a positive pre-feasibility study was recently announced7. PAK contains one of North America’s highest-grade lithium resources and is one of the largest known deposits of its subtype in North America8. Further, Frontier has recently received a grant from the Ontario government to advance its understanding of the processing of lithium into battery metal products. Electric Royalties’ OLP acquisition includes two large unexplored, optioned claim groupings located less than 10 kilometres from the Frontier projects and adjacent to terrane hosting geologically favourable two-mica granitic rocks (see Figure 2).

Figure 2: Map showing claim groups comprising the OLP, and Frontier Lithium’s Spark and PAK deposits

One of the most exciting new lithium exploration stories in Ontario is the emerging Root Bay project being advanced by Green Technology Metals. Drilling programs completed in the last year and a half resulted in the announcement of a 9.4 million-tonne (Mt) indicated resource grading 1.3% lithium oxide (Li2O) for Root Bay and a 4.5 Mt inferred resource grading 1.01% Li2O for the associated McCombe deposit, at a 0.2% Li2O cut-off, reported under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (or “the JORC Code”)9. The OLP includes numerous claims in this area, staked prior to the Root Bay discovery. Many of these claims are on or near to the subprovince terrane boundary, host numerous tourmaline occurrences and are on or near the Root Bay pluton10 – all of which are key exploration indicators of lithium-bearing pegmatites. One such claim in the OLP, the McCombe North Property, was optioned to Bastion Minerals and is located less than 2 kilometres from the Root Bay deposit11. Another claim group in the OLP, the Harrison Road Property located a few kilometres to the south of Root Bay, was sampled by the Ontario Geological Survey (OGS)12, and returned anomalous lithium values in lake sediments; hence, it is considered to be prospective (see Figure 3).

Figure 3: Map showing OLP claim extents in the Root Bay area

Rock Tech Lithium’s Georgia Lake Project is also one of the more advanced integrated lithium development projects in Ontario. Rock Tech Lithium is, reportedly, pursuing a vertically integrated strategy which not only includes development of the Georgia Lake deposit, but also the construction of a lithium processing plant. The plan is to build a facility that is capable of processing material from various sources and is adaptable to the region’s growing lithium industry13. There is tremendous exploration potential in the Georgia Lake area as it has been described as the largest concentration of rare-element mineralization in the Superior Province of Ontario14. Other companies have reported interesting results from work in the Georgia Lake district. Tearlach Resources recently announced the results of channel sampling which ranged from 1.56% Li2O over 3 meters to 4.04% Li2O over 0.7 meters in channel samples on their property15.

The OLP includes the largest land position in the Georgia Lake lithium district (see Figure 4). One of the properties, the Arrel Lithium Property, is 20 kilometres east of the Rock Tech pegmatites, and not only is underlain by a muscovite-bearing peraluminous granite but is also in contact with metasediments which make excellent hosts for pegmatites.

Figure 4: Map showing claim groups comprising the OLP in the vicinity of the Georgia Lake projects

Lithium Development in Ontario

Ontario is a province with a deep-rooted mining tradition, abundant clean hydroelectric and nuclear power, and a skilled mining workforce. The permitting environment in Ontario is rigorous, fair, and process-based, and both the federal and provincial governments are supportive of battery metal projects as shown in their recent investments and initiatives16,17.

Access to sustainable power, abundant water, and skilled personnel makes mine development and permitting easier, and it is one of the compelling reasons for Electric Royalties’ interest in the OLP acquisition. The properties cover a collective area of over 1 million acres and are adjacent to some of the most prominent lithium exploration and development plays in North America.

Lithium Outlook

The shift to clean energy systems is forecast to drive a significant increase in the demand for battery metals, and this is particularly true in the case of lithium. Lithium is a key component in current and anticipated battery chemistries. According to the International Energy Agency (IEA)’s Sustainable Development Scenario (SDS), clean energy technologies will ultimately account for 90% of the demand for lithium, which could result in a 40-fold increase in demand by 204018.

New sources of lithium will need to be developed and, equally important, new processing facilities will need to be built to meet long-term demand. Finding new lithium deposits in proximity to where the metal is processed into products suitable for battery production is imperative to secure supply chains. Complex supply chains and foreign sources of supply increase the risk of exposure to physical disruption and trade restrictions, while increasing the carbon footprint of the process.

Completion of Drawdown under Convertible Credit Facility

Further to the Company’s news release on April 9, 2024, it has completed the C$2,500,000 drawdown (the “Drawdown”) under its C$10,000,000 amended and restated convertible credit facility with Gleason & Sons LLC (the “Lender”) dated February 16, 2024 (the “Credit Facility”) for working capital and to fund the cash payment of the Transaction and associated Transaction costs.

Loans drawn under the Credit Facility bear interest (“Interest”) at a floating rate (United States Secured Overnight Financing Rate as published by the New York Federal Reserve (“SOFR”) + 7%), with a maximum interest rate of 12.5%, with Interest payments capitalized into the principal amount and due at the maturity date (the “Maturity Date”) of January 12, 2028. Prior to the Maturity Date, on at least 10 days’ prior written notice to the Company and subject to all required TSX Venture Exchange approvals having been obtained, the Lender has the right to convert all or any portion of the outstanding principal amount of the Credit Facility and accrued and unpaid interest into the Company’s common shares. Any outstanding principal amount with respect to a drawdown under the Credit Facility will be converted at a conversion price equal to the greater of: (i) C$0.50; (ii) a 100% premium above the 30-day volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange at the time of such drawdown; and (iii) the minimum price acceptable to the TSX Venture Exchange, per common share of the Company, subject to adjustment as provided in the convertible note evidencing such drawdown. Any accrued and unpaid interest may be converted at conversion price equal to the Market Price (as defined under the TSX Venture Exchange’s Policy 1.1) at the time of settlement.

The Conversion Price for the Drawdown is C$0.50, and as a result a total 5,000,000 common shares of the Company are issuable on conversion thereof. The Drawdown is subject to final TSX Venture Exchange approval.

The Credit Facility is a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Credit Facility is exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company’s common shares are not listed on a specified market. The Company received disinterested shareholder approval of the Credit Facility at the Company’s special meeting of shareholders held on March 19, 2024 in accordance with MI 61-101.

David Gaunt, P.Geo., a qualified person who is not independent of Electric Royalties, has reviewed and approved the technical information in this release.

1 https://mndm.maps.arcgis.com/apps/webappviewer/index.html?id=66ee0efe4d3c4816963737dbdb890708

2 Green Technology Metals news release dated October 9, 2023

3 https://www.cbc.ca/news/climate/lithium-in-the-world-1.6841339

4 https://elements.visualcapitalist.com/visualizing-the-worlds-largest-lithium-producers/

5 USGS Mineral-Deposit Model for Lithium-Cesium- Tantalum Pegmatites; Scientific Investigations Report 2010-5070-O; By Dwight C. Bradley, Andrew D. McCauley, and Lisa M. Stillings

6 https://www.ontario.ca/page/about-ontario

7 NI 43-101 Technical Report Pre-Feasibility Study for the PAK Project, effective date May 31, 2023, filed under Frontier Lithium’s profile at sedarplus.ca

8 Frontier Lithium news release dated September 25, 2023

9 Green Technology Metals Limited news release titled “SIGNIFICANT RESOURCE AND CONFIDENCE LEVEL INCREASE AT ROOT, GLOBAL RESOURCE INVENTORY NOW AT 24.5MT” dated October 17, 2023, Appendix A: JORC Code 2012, Table 1. The Mineral Resources are reported using open-pit mining constraints. The open-pit Mineral Resource is only the portion of the resource that is constrained within a US$4,000/t SC6 optimised shell and above a 0.2% Li2O cut-off grade. The optimised open pit shell was generated using: $4/t mining cost, $15.19/t processing costs, mining loss of 5% with no mining dilution, 55 degree pit slope angles, 75% product recovery. The September 2023 Mineral Resource Estimate is reported above 0.2% Li2O cut-off. The cut-off is based on lowest potential grade at which a saleable product might be extracted using a conventional DMS and / or flotation plant and employing a TOMRA Xray sorter (or equivalent) on the plant feed. A number of pegmatites outcrop at surface thus the mineral resource is likely to be extracted using a conventional drill and blast, haul and dump mining fleet.

10 OGS Open File Report 6099; F.W. Breaks, J.B. Selway and A.G. Tindle; 2003

11 https://www.bastionminerals.com/projects/canadian-lithium-project/

12 https://www.geologyontario.mndm.gov.on.ca/mndmfiles/pub/data/records/LakeGeochemON.html

13 https://www.rocktechlithium.com/news/rock-tech-and-the-bmi-group-red-rock-indian-band-partner-to-analyse-lithium-processing-site

14 Breaks, F.W., Selway, J.B. and Tindle, A.G. 2008. The Georgia Lake rare-element pegmatite field and related S-type, peraluminous granites, Quetico Subprovince, north-central Ontario; Ontario Geological Survey, Open File Report 6199, 176p

15 https://www.accesswire.com/viewarticle.aspx?id=810467&token=82fito391y0i58fbeufi

16 https://www.newswire.ca/news-releases/frontier-lithium-receives-funding-from-government-of-ontario-for-lithium-processing-research-842905858.html

17 https://www.canada.ca/en/natural-resources-canada/news/2023/11/government-of-canada-launches-15-billion-critical-minerals-infrastructure-fund.html

18 https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions

About Electric Royalties Ltd.

Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.

Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.

Electric Royalties has a growing portfolio of 40 royalties across the world and 32 lithium properties in Ontario, Canada. The Company is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.

For further information, please contact:

Brendan Yurik

CEO, Electric Royalties Ltd.

Phone: (604) 364‐3540

Email: Brendan.yurik@electricroyalties.com

https://www.electricroyalties.com/

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward-Looking Information and Other Company Information

This news release includes forward-looking information and forward-looking statements (collectively, “forward-looking information”) with respect to the Company within the meaning of Canadian securities laws. This news release includes information regarding other companies and projects owned by such other companies, based on previously disclosed public information disclosed by those companies and the Company is not responsible for the accuracy of that information, and that all information provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information and Other Company Information.Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company’s future outlook and anticipated events and may include statements regarding the financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities of the Company and the properties in which it holds interests.

While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or these properties to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the mining industry generally, recent market volatility, income tax and regulatory matters; the ability of the Company or the owners of these properties to implement their business strategies including expansion plans; the optioned properties remaining under option; the optionees making option payments as and when due under the relevant option agreements; the lithium properties not being successfully explored and developed; competition; currency and interest rate fluctuations, and the other risks.

The reader is referred to the Company’s most recent filings on SEDAR+ as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company’s profile page at sedarplus.ca and at otcmarkets.com.

SOURCE: Electric Royalties Ltd.

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