Nomad Royalty Company Acquires Cash Flowing Royalty on the Caserones Mine in Chile

MONTREAL, May 13, 2021 /CNW Telbec/ - Nomad Royalty Company Ltd. ("Nomad" or the "Company") (TSX: NSR) (OTCQX: NSRXF) is pleased to announce that it has entered into an agreement (the "Agreement") with Appian Capital Chile SpA, which is a subsidiary of the Appian Natural Resources Funds advised by Appian Capital Advisory LLP (the "Vendor"), to acquire an effective 0.28% net smelter return royalty (the "Royalty") on the producing Caserones mine located in the Atacama region of Chile (the "Caserones mine") for a cash consideration of US$23 million as well as the issuance of two million common share purchase warrants of the Company.

Transaction Highlights

• Acquisition of a royalty on a major mine operated by Minera Lumina Copper Chile, which is indirectly owned by JX Nippon Mining & Metals Corporation
• Addition of a new revenue stream from Chile, a tier 1 mining jurisdiction, to Nomad's portfolio
• New mine with long reserve life and significant exploration potential, located on a large land package of ~17,000 hectares with potential for future expansions
• Provides Nomad with measured exposure to copper, a key metal in supporting the world's green transition away from fossil fuels and towards electrification

Vincent Metcalfe, Chief Executive Officer of Nomad, commented on the transaction, "The Caserones Royalty provides Nomad with immediate cash flow over a very long mine life from Chile, a tier 1 mining jurisdiction. This transaction highlights Nomad's unique positioning within the royalty space in terms of its financial capacity to acquire high quality royalties and is consistent with Nomad's strategy of building a diversified portfolio of high quality cash flowing royalties and streams."

Joseph de la Plante, Chief Investment Officer of Nomad, further commented, "We are very pleased to announce this transaction with Appian. The acquisition of the Caserones Royalty provides Nomad with exposure to copper at a time when the demand for green and electrification linked commodities, in particular copper, is set to surge to record highs as the global economy transitions to zero emission technologies."

Caserones Royalty
The Royalty consists of an effective 0.28% net smelter return royalty on the tenements comprising the Caserones mine, located on a land package of ~17,000 hectares.

Caserones Mine Highlights
The Caserones mine is owned and operated by Minera Lumina Copper Chile, which is indirectly owned by JX Nippon Mining & Metals Corporation. The mine consists of an open pit mining operation, with a plant to produce copper and molybdenum concentrates from primary sulfides, and a solvent extraction and electro winning plant (SX-EW) to produce copper cathodes with oxide ore processing, mixed and secondary sulfides. The mine is located in the Atacama region of Chile and has over 5 years of operational history with a current estimated mine life of 19 years. The mine is located 15 km west of the international border with Argentina and 162 km southeast of the city of Copiapó (the capital of the Atacama region) at an elevation of approximately 4,000m above sea level.

In 2019, the Caserones mine produced 146kt Cu and 2,778t of Mo with expected life of mine average annual payable production of ~148kt Cu Eq. The mine benefits from a significant historical investment of US$4.2bn and well established infrastructure, and is expected to produce significant volumes of copper and molybdenum over the long term.

Transaction Details
As part of the transaction, Nomad will acquire shares representing a 30% ownership interest in Compania Minera Caserones ("CMC"), a private Chilean contractual mining company which holds the payment rights to 32.5% of a 2.88% net smelter return royalty on the Caserones mine. Upon closing, Nomad will become a registered shareholder of CMC and will be party to a shareholders agreement which provides for, among other things, distribution of all royalty payments net of Chilean income taxes ("Share Acquisition").

As consideration for the Share Acquisition, Nomad will pay a cash consideration of US$23 million (the "Cash Consideration") and deliver 2 million common share purchase warrants to the Vendor. Each warrant will entitle the holder thereof to purchase one common share of Purchaser at a price equal to US$1.085 per share for a period of 36 months following the date of the Agreement. Nomad expects to fund the Cash Consideration through its revolving credit facility. The transaction will have an economic effective date of May 1, 2021 which shall provide Nomad with 2/3 of the of the Q2 dividend payment from CMC (expected during Q3).

Subject to certain conditions, including the registration in Nomad's name of the shares of CMC being acquired by Nomad in the shareholders registry of the Custodian of Mines of Mines of Santiago, Chile, the closing of the Share Acquisition is expected in late May 2021.

QUALIFIED PERSON
Vincent Cardin-Tremblay, P. Geo., Vice President, Geology of Nomad Royalty is the "Qualified Person" as defined by NI 43-101 who has reviewed and approved the technical content of this news release.

ABOUT NOMAD
Nomad Royalty Company Ltd. is a gold & silver royalty company that purchases rights to a percentage of the gold or silver produced from a mine, for the life of the mine. Nomad owns a portfolio of 14 royalty, and stream, assets, of which 7 are on currently producing mines. Nomad plans to grow and diversify its low-cost production profile through the acquisition of additional producing and near-term producing gold & silver streams and royalties. For more information please visit: www.nomadroyalty.com.

Nomad Royalty Company Ltd.
500-1275 ave. des Canadiens-de-Montréal
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Forward-looking statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Nomad expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and 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. Although Nomad 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. Factors that could cause the actual results to differ materially from those in forward-looking statements include the impossibility to satisfy all conditions precedents for the closing of the Share Acquisition, the closing date of the Share Acquisition, the benefit that Nomad will obtain from the Share Acquisition, the impossibility to acquire royalties, streams and to fund precious metal streams, gold prices, Nomad's royalty and stream interests, access to skilled consultants, results of mining operations, exploration and development activities for properties with respect to which Nomad holds a royalty or stream, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government or court approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations, market prices, continued availability of capital and financing and general economic, market or business conditions. Nomad cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the forward looking statements contained herein should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Nomad believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Nomad undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.

SOURCE Nomad Royalty Company Ltd.