News

Evolve Royalties Ltd. (“Evolve” or the “Company”) (CSE: EVR; OTCQX: EVRYF) is pleased to announce that it has entered into a binding letter of intent with a private royalty holder (“Royalty Holder”) setting out the key terms and conditions pursuant to which Evolve will acquire from the Royalty Holder a 0.5% net smelter returns royalty (the “Sunnyside Royalty”) on production from claims comprising the Sunnyside Project operated by Barksdale Resources Corp. (“Barksdale”) in Arizona, United States, for a total consideration of $2.25 million, payable in a mix of cash and common shares of the Company. The transaction is subject to customary closing conditions, including due diligence, execution of a definitive agreement and receipt of all required approvals, and is expected to close in the second quarter of 2026.

The Sunnyside Royalty represents an opportunity for Evolve to acquire copper exploration optionality at modest cost in an established North American mining jurisdiction. The Sunnyside Project is located in Santa Cruz County, Arizona, immediately adjacent to South32 Limited’s Hermosa Project, where construction of the Taylor zinc-lead-silver deposit is underway. The Sunnyside Royalty covers ground that hosts multiple sources of geological potential, including the Triple C target currently being drilled by the operator, Barksdale, as well as exploration potential extensions onto Sunnyside ground of mineralization from South32’s neighbouring Taylor and Peake deposits, as described in Barksdale’s public disclosure. Mineralization hosted on adjacent properties is not necessarily indicative of mineralization hosted on the Sunnyside Project.

“The Sunnyside Royalty fits squarely within Evolve’s strategy of acquiring high-quality royalties on copper assets in tier-one jurisdictions. What makes Sunnyside particularly attractive is the multiplicity of geological targets on the royalty ground; from the near surface high-grade copper mineralization the operator is currently drilling at the Triple C target, to the potential for extensions of South32’s neighbouring Taylor and Peake deposits onto Sunnyside. As Barksdale continues to drill and expand its understanding of these targets, Evolve will participate in that upside and exploration success through its royalty.” said Joseph de la Plante, President & CEO of Evolve.

TRANSACTION DETAILS

Under the terms of the letter of intent, Evolve proposes to acquire the Sunnyside Royalty for a total consideration of $2.25 million, to be paid in two instalments, the first of which will be $0.5 million in cash and common shares having an aggregate value of $0.75 million payable on closing, and the second of which will be $0.5 million in cash and common shares having an aggregate value of $0.5 million payable in the first quarter of 2027. The number of common shares to be issued to the Royalty Holder will be established based on U.S. dollar equivalent of the volume weighted average price of the common shares in Canadian dollars on the Canadian Securities Exchange for the five consecutive trading days immediately preceding the date on which the definitive agreement is entered into. The issuance of common shares pursuant to the transaction remains subject to approval of the Canadian Securities Exchange.

SUNNYSIDE PROJECT HIGHLIGHTS

• Located in the Santa Cruz County, Arizona, approximately 80 kilometres southeast of Tucson, in an established North American mining jurisdiction.
• Immediately adjacent to South32 Limited’s 100%-owned Hermosa mine, comprising the Taylor zinc-lead-silver deposit (currently in construction), the Clark zinc-manganese-silver deposit, and the Peake copper-lead-zinc-silver exploration target. According to public disclosure by Barksdale, drill results from Sunnyside indicate that Taylor mineralization potentially extends onto Sunnyside ground, and South32 has reported that the Peake deposit may form part of the broader Taylor system, providing additional sources of potential deeper, higher-grade copper mineralization on the royalty ground.
• Barksdale is currently advancing a Phase II drill program at Sunnyside focused on the Triple C target, located within the broader Chalcocite Zone. In its news release dated May 4, 2026, Barksdale reported assay results from the first four holes of its 2026 reverse circulation drill program, including two reported drill intercepts of 0.93% copper over 60.96 metres and 0.90% copper over 60.96 metres, as well as a higher-grade interval of 2.75% copper and 73.5 g/t silver over 3.05 metres in hole SUN26-001R.^[1]
• According to the operator, copper isotope work has confirmed that the near surface chalcocite mineralization intercepted in drilling at the Chalcocite Zone is hypogene in origin, consistent with a primary porphyry copper system rather than a secondary supergene enrichment blanket.

THIRD-PARTY TECHNICAL DISCLOSURE

The scientific and technical information relating to the Sunnyside Project contained in this news release has been derived from publicly available disclosure of Barksdale Resources Corp. The Company has not independently verified such information.

QUALIFIED PERSON

The scientific and technical content of this news release has been reviewed and approved by Vincent Cardin-Tremblay, P.Geo., Chief Operating Officer of the Company, who is a “qualified person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

CONTACT INFORMATION

For more information about Evolve, please visit www.evolveroyalties.com or contact us:

Joseph de la Plante, President & CEO
[email protected]
+1 514 546 1070

ABOUT EVOLVE

Evolve Royalties Ltd. is a royalty and streaming company focused on acquiring high-quality royalties in base and critical metals that support electrification and the global energy transition. The Company’s strategy is to build a diversified portfolio of long-life cash-flowing royalties while maintaining exposure to long-term commodity upside. The Company’s common shares are listed and posted for trading on the Canadian Securities Exchange under the symbol “CSE: EVR” and on the OTCQX Best Market under the symbol “OTCQX: EVRYF”. For more information please visit: www.evolveroyalties.com or the Company’s profile on SEDAR+ at www.sedarplus.ca.

Evolve Royalties Ltd.
550 Burrard Street, Suite 2900
Vancouver, British Columbia V6C 0A3
www.evolveroyalties.com

FORWARD-LOOKING STATEMENTS

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws, which may include, but are not limited to, the completion of the Sunnyside Royalty acquisition, as well as other statements with respect to future events or future performance. All statements in this news release, other than statements of historical fact, that address events or developments that Evolve expects to occur, are forward-looking statements. Forward-looking statements are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Certain forward-looking statements may also constitute “financial outlook” within the meaning of applicable securities laws.

Forward-looking statements, including financial outlook, are based on Evolve’s assumptions and information available as of the date of this news release. Although Evolve 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 may differ materially from those in forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: completion of the Sunnyside Royalty acquisition on the terms and timeline currently contemplated, including the satisfaction or waiver of closing conditions and the receipt of all required approvals; the impact of general business and economic conditions; the absence of control over mining operations from which Evolve will receive royalty payments and risks related to those mining operations, including risks related to international operations, government and environmental regulation (including changes in laws, regulations, taxation and permitting regimes, and potential restrictions on the repatriation of funds), delays in mine construction and operations and achievement of expansion milestones, actual results of mining and current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined; accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties or interruptions in operations; risks relating to the calculation, timing and receipt of royalty payments and the performance by counterparties of their obligations under the Sunnyside Royalty; problems inherent to the marketability of copper, lithium, tin and other metals; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; industry conditions, including fluctuations in the price of the primary commodities mined at such operations, fluctuations in foreign exchange rates and fluctuations in interest rates; government entities interpreting existing tax legislation or enacting new tax legislation in a way which adversely affects Evolve; changes in accounting policies, impact of inflation, global liquidity and credit availability, stock market volatility; regulatory restrictions; liability, competition, loss of key employees, political risks, access to capital, and other related risks and uncertainties, including those discussed in the section entitled “Risk Factors” of the Company’s management’s discussion and analysis for the year ended December 31, 2025 as well as other materials available on the Company’s profile on SEDAR+ at www.sedarplus.ca.

Forward-looking statements and financial outlook in this news release are qualified by the foregoing cautionary statements and are made only as of the date hereof. Evolve expressly disclaims any obligation to update or revise any forward-looking statements or financial outlook or the assumptions or factors underlying them, whether as a result of new information, future events or otherwise, other than as required by applicable law. Readers are cautioned not to place undue reliance on forward-looking statements and financial outlook.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.