Ely Gold Royalties Options Rodeo Creek Property to Premier Gold

November 14, 2018

Vancouver, British Columbia, November 14, 2018 -Ely Gold Royalties Inc. (“Ely Gold” or the “Company”)(TSX-V:ELY, OTCQB:ELYGF) is pleased to announce that, through its wholly owned subsidiary, Nevada Select Royalty, Inc., (“Nevada Select”) it has entered into an Option Agreement (the “Agreement”) with Au-Reka Gold Corporation, a Delaware corporation and a wholly-owned subsidiary of Premier Gold Mines Limited (TSX:PG, OTC:PIRGF) (collectively “Premier”) whereby Ely Gold will option to Premier, a 100% interest in the Rodeo Creek Claims (the “Property”) located in Elko County, Nevada. Within the terms of the Agreement, Ely Gold will retain a 2.0% net smelter royalty (“NSR”) on the Claims outlined in the Agreement.

The Agreement between Premier and Ely Gold was finalized on November 12, 2018, (the “Effective Date”).

Ely Gold is a growing royalty company with over 77 projects, primarily in Nevada and the Western United States. The Company’s portfolio currently consists of 27 deeded royalties and 24 properties optioned to third parties, all of which are being explored or developed by partners, the Company also has 26 properties for sale. Ely Gold’s partners include major mining companies, mid-tier producers and junior exploration companies.

The Rodeo Creek Claims

The Property consists of 31 unpatented mining claims acquired by Ely Gold in September 2018, through staking (see Figure #1). The Property is contiguous to the currently producing South Arturo Mine land package. South Arturo is a joint-venture between Premier and Barrick Gold Corporation, referred to as the Barrick/Dee JV. South Arturo and the Rodeo Creek Claims are part of the historic Dee mining claims approximately 25 miles northwest of the town of Carlin. They are within the Bootstrap mining district at the northern area of the Carlin Trend. The Bootstrap mining district includes the Tara, Bootstrap, Capstone, Dee and Storm gold mines. Prior to staking by Ely Gold, the Property had title issues which may have restricted the ability of other companies to purchase the Property. The Agreement also includes Nevada Select’s proprietary database for the Property.

Trey Wasser, Ely Gold’s President and CEO commented, “we are pleased to assist Premier in the consolidation of their South Arturo property. Ely Gold’s successful royalty business model has allowed it to assist a number of mining companies in the consolidation of fragmented claim packages critical to future exploration and development. In the case of South Arturo, Ely Gold was able to assist in consolidating the claim package due to its unique knowledge of the historic claims and the previous land owners.

Jerry Baughman, President of Nevada Select added, “Rodeo Creek is strategically located and is on trend with several producing gold mines within Nevada’s Carlin Trend. This is exactly the kind of high-quality project and exploration partner that can maximize the chances for discovery, creating value for Ely Gold shareholders”.

The Transaction

The Asset Purchase Agreement allows for Nevada Select to transfer, by mineral deed, its 100% interest in the Property, and the data base for cash payments of US$506,572 payable as follows:

  • US$50,000 cash and reimbursement of 2019 claim fees in the amount of $6,572 relating to the Property on the Effective Date;
  • US$50,000 cash on the six-month anniversary of the Effective Date;
  • US$50,000 cash on the one-year anniversary of the Effective Date;
  • US$50,000 cash on the second anniversary of the Effective Date;
  • US$50,000 cash on the third anniversary of the Effective Date;
  • US$125,000 cash on the fourth anniversary of the Effective Date; and
  • US$125,000 cash on the fifth anniversary of the Effective Date.

After completion of the above cash payments and the transfer of the Property, Premier will grant to Ely Gold a 2% NSR on the Property.

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.

Ely Gold Royalties Inc. is a Vancouver based, emerging royalty company with development assets focused in Nevada and the Western US. Its current portfolio includes 27 Deeded Royalties and 24 properties optioned to third parties. All 51 of these properties are being explored by third parties. Ely Gold’s royalty portfolio includes producing royalties, royalties on fully permitted mines, mines under construction and development projects that are being permitted for mine construction. The Company is actively purchasing existing third-party royalties for its portfolio and all the Company’s Option Properties will 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 26 available properties to generate additional operating revenue through option and sale transactions. 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 net smelter royalty interests. Management believes that due to the Company’s ability to generate option and royalty transactions, 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, exploration in Nevada and low-cost access to long-term mineral royalties.

On Behalf of the Board of Directors

Signed “Trey Wasser”

Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
[email protected]

Joanne Jobin, Investor Relations Officer
[email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding the Company's contemplated acquisition or sale of royalties and Properties, and any stated plans for further near-term exploration and development of the its Properties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the risk of accidents and other risks associated with mineral exploration, development and extraction operations, the risk that its partners will encounter unanticipated geological factors, or the possibility that they may not be able to secure permitting and other governmental clearances, necessary to carry out their stated plans for the Properties, the Company's inability to secure the required TSXV acceptance required for any Transaction, and the risk of political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.