Ely Gold Royalties Accelerates Expiry of Warrants

February 28, 2020

Vancouver, British Columbia, February 28, 2020 - Ely Gold Royalties Inc. (TSX-V: ELY, OTCQB: ELYGF, FRA: A2JSL0) (“Ely Gold” or the “Company”) announces that it has elected to accelerate the expiry date of a total of 2,655,000 outstanding common share purchase warrants as described below (the “Warrants”) originally issued by Ely Gold as part of its private placement of units (the “Private Placement”) which closed in two tranches on December 31, 2018 and January 17, 2019 (refer to press releases dated December 6, 2018, January 2, 2019, and January 18, 2019). Each Warrant entitles the holder to purchase one additional common share of Ely Gold (a “Warrant Share”).

In connection with the Private Placement, the Company issued: (i) 13,000,000 Warrants exercisable at a price of $0.22 per Warrant Share with expiry dates of either December 31, 2023 or January 17, 2024 to certain subscribers; and 510,000 Warrants exercisable at a price of $0.135 per Warrant Share with expiry dates of either December 31, 2020 or January 17, 2021 to two finders. To date, 10,855,000 of these Warrants have been exercised, leaving a balance outstanding of 2,655,000 Warrants.

Pursuant to terms of the Warrants, Ely Gold can elect to accelerate the expiry dates of the Warrants at any time, following the customary hold period and prior to the expiry of the Warrants, if the daily volume weighted average trading price of Ely Gold’s common shares on the TSX Venture Exchange is greater than $0.60 for more than 20 consecutive trading days, by giving notice (an “Acceleration Notice”) to the Warrant holders by issuing a press release within three (3) trading days of such an occurrence specifying that the Warrants will expire on the 30th day following and the giving of such Acceleration Notice.

Effective at the market close on February 28, 2020, Ely Gold’s volume weighted average trading price for each of the preceding 20 consecutive trading days has exceeded $0.60. The expiry date of the outstanding Warrants is being accelerated to 4:30 p.m. (Vancouver time) on Monday, March 30, 2020 (the “Accelerated Expiry Time”). Any Warrants remaining unexercised after the Accelerated Expiry Time will be cancelled and will thereafter be of no force or effect.

In addition to issuing an Acceleration Notice by way of this press release, Ely Gold will mail notice of the acceleration that address of the holders of the outstanding Warrants to the holder’s address shown on the applicable Warrant certificates.

Should all the Warrants outstanding be exercised, Ely Gold will receive proceeds of approximately $541,600.00 and will have approximately 115,917,885 common shares issued and outstanding. Warrant exercise funds received will be used for project generative activities and for general working capital purposes.

About Ely Gold Royalties Inc. Ely Gold Royalties Inc. is a Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 36 Deeded Royalties and 22 properties optioned to third parties. Ely Gold’s royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company’s option properties are expected to 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 20 available properties to generate additional operating revenue through option and sale agreements. 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 royalty interests. Management believes that due to the Company’s ability to generate third-party royalty agreements, 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 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]
972-803-3087

Joanne Jobin, Investor Relations Officer
[email protected]
647-964-0292

FORWARD-LOOKING CAUTIONS: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including statements regarding: (i) cancellation of unexercised Warrants; (ii) increase to the Company’s outstanding common shares; and (ii) use of warrant exercise proceeds. These matters are subject to certain risks and uncertainties. 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 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 risks of declining precious metals prices, failure of projects in which the Company has an interest may underperform current management forecasts, the Company may not be able to identify suitable new royalty acquisitions, and the 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 effect.

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.