Company Announcements

24 October 2022

Trident Royalties Plc

("Trident" or the "Company")

Portfolio Update: Sonora Lithium Royalty

Trident Royalties Plc (AIM:TRR), the diversified mining royalty company, is pleased to note recent updates from Ganfeng Lithium Co, Ltd ("Ganfeng") regarding the Sonora Lithium Project ("Sonora" or the "Project") in Mexico.

HIGHLIGHTS

·    Ganfeng noted that the Project is under construction¹ and that it intends to further accelerate construction to "make it a leading project in the field of extraction of lithium from lithium clays."²

·    Ganfeng has highlighted a larger planned production profile relative to the previous Feasibility Study published by Bacanora Lithium³, with potential Stage 2 production increasing by 43% to 50,000 tonnes per annum of lithium hydroxide.¹

·   At the current lithium hydroxide spot price of circa US$80,000 per tonne, upon the Project coming into operation, royalty revenue attributable to Trident at Stage 1 production would be approximately US$24 million per annum, increasing to approximately US$60 million per annum in Stage 2.⁴

Adam Davidson, Chief Executive Officer of Trident commented:

"We are very pleased to note Ganfeng's progress at the Sonora Project. Like Thacker Pass - over which Trident holds a Gross Revenue Royalty - Sonora is a globally significant lithium asset which is anticipated to be the next North American lithium mine to enter production. With the potential to have both the Sonora and Thacker Pass royalties in the Trident portfolio, shareholders in Trident will have unique lithium exposure from global Tier 1 assets."

Transaction Overview

On 27 January 2022, Trident announced that Sonoroy Holdings Limited, its 50%-held joint venture with Marmottes Capital Limited, entered into a conditional agreement to acquire a 3.0% Gross Revenue Royalty (1.5% attributable to Trident) over the Sonora Lithium Project.⁵

References

1              Source: Ganfeng Lithium Q2 2022 presentation, dated September 2022

( http://www.ganfenglithium.com/ir_detail_en/id/2546.html )

2              Source: Ganfeng Lithium 2022 Interim Report

( https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0919/2022091900358.pdf )

3.             Source: Bacanora Lithium Project Overview

                ( https://bacanoralithium.com/sonora_lithium_project/default.aspx )

4.             20,000 tonnes LiOH at Stage 1 and 50,000 tonnes LiOH at Stage 2. 1.5% Gross Revenue Royalty attributable to Trident. LME Lithium Hydroxide CIF price at 21 October 2022.

5.             Source: Trident Royalties announcement dated 27 January 2022

                ( https://polaris.brighterir.com/public/trident/news/rns/story/x2kjzlx )

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About Trident

Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base battery, precious, and bulk metals.

Key highlights of Trident's strategy include:

The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.

Forward-looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

Third Party Information

As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.