Completion of Gold Royalties sale delivering 2.4x Gross Return on Investment

Favourable Restructuring of Debt Facility

Trident Royalties Plc (AIM: TRR), the diversified mining royalty company, is pleased to announce the completion of the agreement with Franco-Nevada Corporation (TSX, NYSE: FNV) (“Franco-Nevada”), first announced on 9 December 2022, relating to the sale of several pre-production gold royalties (the “Royalties”); the sale will generate cash proceeds of up to US$15.55 million (the “Transaction”)*. The Transaction has delivered to Trident a significant return on its initial investment, while balancing the gold exposure within its portfolio and further strengthening the Company’s balance sheet for subsequent acquisitions.

Following completion of the Transaction, Trident has restructured its existing $40m debt facility with Macquarie Bank Limited, including:

• 2% reduction in coupon (dependant on maintaining leverage ratio), reducing debt service costs by up to US$800,000 per year.
  • Extension of the loan term by one year, to December 2025.
  • Deferral of scheduled quarterly payments until June 2024.
• In lieu of a cash restructuring fee, the Company has agreed to an extension of the term of the warrants held by Macquarie by 12 months.

HIGHLIGHTS

• Completion of the sale of pre-production gold royalties over Rebecca**, Spring Hill***, and three other projects acquired as a portfolio from Talga Resources**** to Franco-Nevada in exchange for cash proceeds of up to US$15.55 million.
  • Note that a non-material royalty was removed from the Transaction by mutual agreement with Franco-Nevada, reducing the upfront consideration from the previously announced US$15.8 million to US$15.55 million*.
• The Royalties were acquired by Trident for approximately US$6.25 million*****, representing a gross return on invested capital of over 140% in approximately two years.
• US$14.3 million of the consideration has now been paid by Franco-Nevada, with US$1.25 million to be paid upon first production from the Rebecca Gold Project******.
• Trident now holds estimated pro forma cash of approximately US$35 million*******, placing the Company in a strong position to pursue new opportunities and capitalise on current weakness in traditional debt and equity markets, particularly in non-precious metals commodities.

Adam Davidson, Chief Executive Officer of Trident commented:

“The disposal of these gold royalties has delivered an impressive gross return of +140% on invested capital in two years, creating significant value for shareholders. The receipt of the proceeds and restructuring of our debt, creates an even stronger platform for future growth and value creation. We are encouraged by the recent performance of our paying royalties, with record quarterly receipts of US$3.5 million delivered in Q4 2022, and with approximately $35 million ready to be deployed on additional opportunities, Trident is in a strong position to expand its portfolio further with value accretive and strategically attractive opportunities in 2023.”

References

*Source: Trident Royalties announcement dated 9 December 2022

(https://polaris.brighterir.com/public/trident/news/rns/story/w31243x )

**Source: Trident Royalties announcement dated 29 October 2020

(https://polaris.brighterir.com/public/trident/news/rns/story/rdz64pw)

***Source: Trident Royalties announcement dated 17 November 2020

(https://polaris.brighterir.com/public/trident/news/rns/story/x5op59r)

****Source: Trident Royalties announcement dated 30 March 2021

(https://polaris.brighterir.com/public/trident/news/rns/story/xeqjp2x)

*****Source: Reserve Bank of Australia foreign exchange rates used for AUD royalty acquisitions, with dates for completion being 30 March 2021, 17 November 2020, and 29 October 2020

******Long-stop date of 31 December 2028 for commercial production at the Rebecca Gold Project, with US$1.25 million paid upon first royalty receipt by Franco-Nevada and commencement of commercial production at Rebecca.

*******Being the pro forma cash balance of US$21.8 million from announcement dated 30 January 2023, plus the upfront Transaction proceeds paid by Franco-Nevada of US$14.3 million (prior to fees and expenses associated with the Transaction).