Fulcrum Metals PLC - Signs non-binding US$20 million royalty agreement

Fulcrum signs non-binding US$20 million royalty financing term sheet and enters into £200,000 strategic investment with Chancery Royalty

Fulcrum Metals plc (AIM: FMET), a company pioneering the use of innovative cyanide-free technologies developed by Extrakt Process Solutions to recover precious and critical metals from mine waste and support site regeneration, is pleased to announce that it has entered into a non-binding US$20 million royalty financing term sheet and signed a £200,000 equity subscription with Chancery Royalty Ltd. ("Chancery Royalty"), in relation to the Company's Teck-Hughes tailings project in Kirkland Lake, Ontario.

Highlights:

·        US$20 million non-binding royalty financing term sheet signed with Chancery Royalty

·        Proposed 5% NSR over Teck-Hughes gold production provides a potential non-dilutive route to production funding

·        Fulcrum would retain the right to repurchase 2% of the royalty for US$10 million

·        £200,000 subscription for new ordinary shares in Fulcrum by Chancery at 8.5p per share

·        Potential framework for future royalty opportunities beyond the Company’s Teck-Hughes tailings project

·        Definitive agreements subject to successful pilot-scale testing and customary conditions

The proposed royalty financing has been structured as a potential source of non-dilutive project development capital to support advancing Fulcrum's wholly owned Teck-Hughes Project towards commercial production, subject to successful pilot-scale testing, technical studies, permitting and definitive documentation.

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

“We see  Chancery as an ambitious and growth-oriented royalty company and welcome them as a shareholder and a potential long-term funding partner. The proposed royalty financing provides a framework to advance Teck-Hughes from pilot-scale validation towards commercial production. Importantly it also represents third party validation of both our technology-led strategy and the long-term value we see across our mine waste recovery platform.

Fulcrum is creating a scalable mine waste recovery platform, underpinned by the planned deployment of a standalone pilot facility and through exclusive rights to Extrakt's cyanide-free technology across the Timmins and Kirkland Lake mining districts. Teck-Hughes, with its initial conceptual production profile of approximately 12,000 ounces of gold per annum, represents the first step in executing that broader strategy.

As we evaluate potential sites for pilot plant deployment, we believe the combination of our platform approach and growing relationship with Chancery could provide a strong foundation to unlock a wider pipeline of mine waste opportunities to create long-term value together.”

Jeremy Gray, Chief Executive Officer of Chancery Royalty, commented:

“Chancery is focused on partnering with companies that offer both near-term production potential and long-term growth opportunities, and we believe Fulcrum is strategically positioned to deliver both. Its innovative cyanide-free approach to metal recovery, commitment to environmental remediation and broader platform strategy provide a differentiated platform for sustainable growth.

We are pleased to become shareholders in Fulcrum and look forward to supporting the advancement of Teck-Hughes towards commercial production. More broadly, we believe this relationship has the potential to create long-term value for both companies as Fulcrum expands its mine waste recovery platform and Chancery builds a portfolio of quality royalty assets.”