Lithium Royalty Corp. Announces Second Quarter 2025 Results

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• LRC repurchased C$4 million worth of shares at a weighted average price of C$5.62 in the quarter, retiring ~9% of the free float
• Lower shipments and a 36% year-over-year drop in spodumene prices negatively impacted revenue
• Ganfeng’s Mariana project advanced commissioning during the second quarter, with first revenue to LRC expected in 2H25
• Portfolio company Atlas Lithium released a definitive feasibility study (DFS) on its Das Neves project, outlining strong economics supported by a favorable all-in sustaining costs (AISC) of $595 per tonne inclusive of the 3.0% LRC royalty
• Portfolio company Core Lithium released its restart study for the Finniss project, highlighting reduced cash costs and engaged Morgan Stanley Australia to advise on the restart process
• Zijin Mining’s Tres Quebradas project expects production in 2H25
• LRC finished the quarter with $28 million in cash, no debt, and a strong pipeline of opportunities
• Lithium prices are up 52% from the lows in late June, as reported by Shanghai Metals Market (SMM)

(in thousands of U.S. dollars unless otherwise noted)

TORONTO — Lithium Royalty Corp. (TSX: LIRC) (“LRC” or the “Company”) announces second quarter 2025 results.

“While the sector continued to face challenging conditions in the second quarter, LRC strategically acquired additional shares of LRC. Lithium prices weakened throughout the quarter into June, but we are encouraged by the recent rally up 52%, driven by continued robust demand, production cuts, and better visibility on trade dynamics. Despite the lithium market’s volatility, the LRC portfolio continues to advance and mature, with Ganfeng’s Mariana project expected to produce in 2H25, Zijin Mining’s Tres Quebradas project progressing to near-term production, and Atlas announcing its maiden resource report and DFS with a favourable cost position and low remaining capital expenditures. Additionally, Core Lithium released its restart study for the Finniss project, outlining a reduction in projected cash costs. Notwithstanding depressed lithium prices in Q2, key assets in the LRC portfolio continue to move forward, setting LRC up to deliver substantial organic growth in the years ahead,” said Ernie Ortiz, President and CEO of LRC.

LRC is reporting 14 Lithium Carbonate Equivalent tonnes (LCEts) or 170 Spodumene Concentrate Equivalent tonnes (SCEts) in the quarter¹, compared to 63 LCEts or 740 SCEts in the prior quarter. LCEts were lower in the quarter due to depressed lithium prices, shipment delays, and certain assets being on care and maintenance compared to prior periods. Since the lows at the end of June, lithium prices have rebounded 52% supporting stronger pricing, incentivizing counterparties to accelerate deliveries and increase volumes to market.

Royalty revenue was $127 for the three months ended June 30, 2025, a decrease of $1,422 as compared to $1,549 in the same period of 2024. The decrease in revenue is primarily attributable to the suspension of production at the Finniss and Mt Cattlin projects, which were a source of revenue in the same period in 2024. Timing of shipments also negatively impacted revenue in the quarter, which is expected to reverse in the balance of the year. Spodumene prices declined by 36% compared to the same period last year, as reported by SMM.

At June 30, 2025, LRC held $28.0 million of cash and had no debt. On July 10, 2025, LRC renewed its existing normal course issuer bid (NCIB) allowing the Company to purchase up to 1.2 million common shares through July 9, 2026.

The Mariana project was inaugurated in February 2025. The power lines have been connected. The project has excellent pumping rates, which should support an attractive low cost position. LRC expects inaugural royalty revenue from the asset to occur in 2H25 as production ramps up. Ganfeng expects the asset to reach nameplate capacity in 2026, subject to market dynamics

LRC holds a net 0.45% NSR royalty on the Mariana project.

Construction at Phase 1 (20,000tpa LCE) of the project is complete and Zijin expects to start production in 2H25, subject to market dynamics. Zijin is evaluating improvements to the processing and design of the plant to improve operations for Phase 2 (30,000tpa LCE) operations. LRC holds a net 0.90% GOR royalty on the Tres Quebradas project.

On August 4, Atlas Lithium

the completion of the DFS for its Das Neves project in Brazil. The study estimates attractive returns with an estimated 11 month payback, which is underpinned by low operating costs of $489 per tonne and total AISC of $595 per tonne, inclusive of LRC’s 3% gross overriding revenue (GOR) royalty. The project’s mineral resource estimate in the DFS stands at 8.5Mt at 1.2% Li

O at a 0.3% cut-off grade, and supports an initial 7-year mine life

. Atlas stated in its quarterly filing that expansion of life of mine is expected as additional mining pits are granted environmental permits in the future and Atlas conducts further exploratory drilling in those areas. The DFS confirms that the deposit remains open along strike and depth. The paid-for modular DMS plant has been delivered to a secure location in Minas Gerais, Brazil and Atlas expects the plant to support annual nameplate production of approximately 146,000 tonnes per annum of spodumene concentrate in Phase 1. The Das Neves project is a low-cost, near-term production asset with significant long-term expansion potential. Atlas Lithium has secured $40 million in pre-payment financing commitments to assist with the finalization of the plant.

Core Lithium has

a restart study repositioning the Finniss project as a globally competitive spodumene operation. The study outlines a 20-year mine life with annual production of 205,000 tonnes of 6% spodumene concentrate equivalent (SC6), at unit operating costs of A$690–$785 (US$450-$510) per tonne (FOB, SC6 equivalent). In addition, Core reduced pre-production capital expenditure by 29% to A$175–$200 (US$115-$130) million and holds all required permits, with critical infrastructure in place from the previous operation. Core Lithium has hired Morgan Stanley Australia as their corporate advisor to assist in financing the restart process. LRC holds a 2.5% GOR royalty on the Finniss project.

On July 29, Power Metals announced the successful completion of final metallurgical test work at its Case Lake project in Ontario, confirming the production of technical-grade cesium chemicals. SGS Canada achieved 97% cesium extraction from pollucite concentrate, producing cesium formate (99.8% purity) and cesium chloride (99.6% purity), meeting industry specifications for oil and gas, energy storage, and medical applications. These results follow a series of successful processing steps, including ore sorting, leaching, crystallization, and recrystallization. Case Lake is now positioned as a leading global cesium project with near-term production capacity. Combined with the recent maiden MRE confirming 13,000 tonnes of inferred resource at 2.4% Cs₂O at a 0.1% cut off grade from the West Joe Dyke, the project continues to demonstrate low processing complexity and commercial viability

. The company also outlined an 11,000-15,000 tonnes exploration target solely from the West Joe Dyke. Power Metals expects to begin cesium production at the Case Lake project in mid-2026. LRC holds a 2.0% GOR royalty on all minerals extracted and sold from the Case Lake project.

In July, Sayona Mining released the final results from its 2024 drilling campaign at the Moblan lithium project in Québec. The campaign included 116 new drill holes totaling 38,953 meters, contributing to a broader program of 76,202 meters across 281 holes. The updated geological model now incorporates over 33,000 validated assays, supporting the conversion of mineralization from inferred resource to measured and indicated resource categories. Drilling confirmed strong continuity of spodumene-bearing pegmatites across all major zones—Main, South, Inter, and Moleon—including sub-horizontal dykes extending over 2.3 kilometers. These results will inform an updated mineral resource estimate, which Sayona expects to release in the near term. LRC holds a 2.5% GOR royalty on the Moblan project.

Sinova Global has recently commenced drilling and blasting in anticipation of the commencement of production of silica quartz at the Horse Creek mine. Initial production is anticipated to be minimal as Sinova Global aims to optimize and calibrate the mine. LRC holds a GOR royalty on the Horse Creek project, assessed at 8.0% on revenues less than $45 million and 4.0% on revenues greater than $45 million.

Palkovsky Group is developing the Valjevo critical minerals project in Serbia. During the quarter, the Palkovsky Group signed a memorandum of understanding with a major Middle Eastern industrial group for up to $50 million of equity investment and $500 million or more of project finance. Palkovsky Group also has advanced partnership discussions with a major global purchaser of borax and established a master services agreement with Worley, one of the world’s largest engineering consultancies. In addition to their global partnerships, the Palkovsky Group is continuing to focus on developing relationships with all local stakeholders of the project as they advance through development. LRC holds a sliding scale royalty on lithium and borate products from the Valjevo project.

• 2H25 – Inaugural royalty revenue from Ganfeng Lithium’s Mariana lithium project
• 2H25 – Expected production commencement from Zijin’s Tres Quebradas project
• 2H25 – Progression of Core Lithium restart process for Finniss lithium project restart led by Morgan Stanley Australia
• 2H25 – Atlas Lithium $40 million expected pre-payment funding
• 2H26 – Power Metals Case Lake cesium project to begin production
• 2026 – Sigma Lithium’s phase 2 production start

The lithium market is in a rebalancing phase as strong demand growth begins to absorb a high, but moderate, pace of supply expansion. Demand in the second quarter of 2025 was driven by continued momentum in electric vehicle (EV) sales and a strong start to the year for energy storage systems (ESS). BloombergNEF forecasts a 25% increase in global EV sales in 2025 compared to 2024⁵.

In Q2, Chinese EV sales grew 31% year-over-year (y/y), supported by continued model introductions and increasingly affordable offerings. In the first half of 2025, Chinese EV sales rose 36% y/y. Demonstrating ongoing enthusiasm for EVs in China, Xiaomi unveiled its first electric SUV—the YU7—and reportedly received 289,000 non-cancellable orders within the first hour of launch. Historically, the first half of the year accounts for roughly one-third of annual Chinese EV sales, and 2025 exited the first half of the year on strong footing.

In Europe, battery electric vehicle (BEV) sales also started the year strong: year-to-date (YTD) through June sales rose 35% in the UK and Germany, 27% in Italy, and 84% in Spain. On a weighted average basis, these countries saw BEV sales rise approximately 42% in 1H25. Growth has been supported by OEM promotions, broader model availability, and more affordable price points. Looking ahead, Germany announced a fiscal program beginning July 2025 that supports EV adoption through special depreciation and tax relief measures. In parallel, the UK government will reintroduce direct consumer subsidies for EVs through a new £650 million scheme, offering up to £3,750 in discounts on eligible vehicles, alongside funding for additional public chargers. France and Italy have similarly announced further supportive initiatives for EV sales with France offering €370 million and Italy approving €600 million with the programs starting in September 2025.

In the United States, EV sales rose by mid-single digits in 1H25. Volatility may emerge in 2H25 following the scheduled expiry of the $7,500 EV tax credit on September 30, 2025. BloombergNEF estimates the U.S. accounts for ~7% of global EV sales, with China representing nearly two-thirds and Europe about one-fifth.

Energy storage systems, which account for roughly 20% of global lithium demand, continue to expand rapidly. Tesla reported a 48% y/y increase in energy storage deployments in 1H25 with most shipments occurring in Q1 ahead of anticipated Q2 tariffs. ICCSino, a leading industry research and consulting company in China, projects global ESS shipments to grow 54% in 2025, highlighting resilience in the sector despite macroeconomic uncertainty. Fastmarkets forecasts a 25% CAGR for ESS deployments from 2024–2034, with installations expected to exceed 1.6 TWh by 2035.

Additional demand tailwinds are emerging from new and underappreciated sources not yet fully incorporated into major demand forecasts. These include robotics, drones, electric vertical take-off and landing vehicles (eVTOLs), electric marine shipping, and military applications. Declining battery costs and advances in battery chemistry are driving broader adoption beyond traditional sectors into emerging applications.

Spodumene prices declined 14% quarter-over-quarter to $714 per tonne in Q2 (CIF China, per SMM) and were down 36% y/y. Benchmark Minerals estimates that roughly 50% of global projects were uneconomic at June 2025 prices of $600–$650 per tonne. SMM data shows that as of August 14, 2025, prices stood at $937 per tonne . According to international media reports, China’s leadership has recently acknowledged the effects of overcapacity in key industrial sectors, including lithium, where heightened competition has contributed to significant price declines. The phenomenon, referred to domestically as “nejuan” or “involution,” reflects an unsustainable cycle of internal competition and margin compression. One of the largest lepidolite mines in China halted operations on August 9^th following the expiry of its mining license, a development expected to tighten the lithium supply-demand balance in the near term. There are several more mines in China that are in the process of applying to certify their lithium resources by September 30, 2025. News agencies and industry consultants believe this could constrain supply further if the applications are delayed or not granted.

Benchmark Minerals forecasts lithium demand to grow 20% and lithium supply to grow 15% in 2025, which should reduce the current market surplus. Moderating supply additions, driven by weaker pricing, are expected to improve market balance and operating conditions over time.

The technical and scientific information contained in this news release was reviewed and approved in accordance with NI 43-101 by Don Hains, P.Geo. of the Hains Engineering Company Limited, a “qualified person” as defined in NI 43-101.

The Consolidated Financial Statements and Management’s Discussion & Analysis are available on our website and SEDAR+.

Date: August 15, 2025
Time: 11:00 AM EST
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Webcast: https://events.q4inc.com/attendee/229955412About Lithium Royalty Corp. LRC is a lithium-focused royalty company organized in Canada, which has established a globally diversified portfolio of 35 revenue royalties on mineral properties that are related to the electrification and decarbonization of the global economy. The Company’s royalty portfolio is focused on the battery supply chain for the transportation and energy storage industries and is underpinned by mineral properties that produce or are expected to produce lithium, critical minerals, and other energy transition materials.

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