Sailfish Royalty Highlights the Positive Results of Solidus Resources, LLC's Feasibility Study for the Spring Valley Gold Project

Rhea-AI Summary

Sailfish Royalty Corp. (SROYF) reports on Solidus Resources' feasibility study for the Spring Valley Gold Project. The study reveals an after-tax net present value (5%) of US$1.5 billion and an after-tax internal rate of return of 36%. Solidus expects a Record of Decision in Q2/2025 with construction starting in H2/2025.

Sailfish holds multiple royalty interests in Spring Valley, including:

• Up to 3% NSR on majority of proposed open pit acres (part of total 7% NSR above $700/oz Au)
• 1.5% NSR on a portion of the proposed open pit
• 0.5% NSR on another portion of the proposed open pit

The 3% NSR royalty excludes the first 500,000 ounces of gold recovered from commercial production.

Positive

• Project feasibility study shows strong economics with $1.5B NPV and 36% IRR
• Construction expected to commence in H2/2025
• Company holds multiple royalty positions in the project
• Project approval (Record of Decision) expected in Q2/2025

Negative

• 3% NSR royalty only applies after first 500,000 ounces of gold production
• Royalty payment threshold starts above $700/oz Au

News Market Reaction – SROYF

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In the trading session that priced this news, SROYF gained 5.50%, reflecting a notable positive market reaction.

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Tortola, British Virgin Islands--(Newsfile Corp. - February 19, 2025) - Sailfish Royalty Corp. (TSXV: FISH) (OTCQX: SROYF) (the "Company" or "Sailfish") is pleased to report that on February 18, 2025, Solidus Resources, LLC (the "Solidus") announced the results of their Spring Valley Gold Project ("Spring Valley") feasibility study.

Paolo Lostritto, CEO, stated, "We are excited to see Solidus announce key metrics from their 2025 feasibility study on Spring Valley. Solidus expects a Record of Decision in Q2/2025 with construction commencing in H2/2025. The feasibility study, as disclosed by Solidus, is highlighted by an after-tax net present value 5% of US$1.5 billion with an after-tax internal rate of return of 36%. Certain important key metrics of Spring Valley are highlighted in the Solidus' February 18, 2025 news release. We encourage Sailfish shareholders and potential shareholders to review the news release in detail. We expect our up-to 3% net smelter return royalty ("NSR") on Spring Valley to positively impact our cash flow once Spring Valley is in production and is therefore a material asset for Sailfish."

For complete information on the results reported by Solidus, please visit Solidus Resources, LLC Announces Positive Feasibility Study.

Sailfish holds the following Spring Valley royalty assets:

1. up to a 3% NSR¹ on a majority of the acres included in the proposed open pit at Spring Valley (royalty boundary in blue);
2. a 1.5% NSR on a portion of the proposed open pit at Spring Valley (royalty boundary in pink); and
3. a 0.5% NSR on a portion of the proposed open pit at Spring Valley (royalty boundary in yellow²).

(See Figure 1 on the next page)

Figure 1 - Sailfish Royalty Corp.'s various Spring Valley royalty holdings (boundaries are approximate).

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5699/241438_0ebd29c994fc98bd_001full.jpg

¹ For clarity, the up to 3% NSR owned by Sailfish is part of a total 7% NSR above $700/oz. Au. The sliding scale NSR royalty is not payable on the first 500,000 ounces of gold recovered from any commercial production.

² Excluding the areas included in the blue and pink boundaries.

About Sailfish

Sailfish is a precious metals royalty and streaming company. Within Sailfish's portfolio are three main assets in the Americas: a gold stream equivalent to a 3% NSR on the San Albino gold mine (~3.5 sq. km) and a 2% NSR on the rest of the area (~134.5 sq. km) surrounding San Albino in northern Nicaragua; an up to 3% NSR on the multi-million ounce Spring Valley gold project in Pershing County, Nevada; and a 100% interest in the Gavilanes Silver Project located in Durango State, Mexico (currently in the process of being converted into a 2% net smelter royalty).

Sailfish is listed on the TSX Venture Exchange under the symbol "FISH" and on the OTCQX under the symbol "SROYF". Please visit the Company's website at www.sailfishroyalty.com for additional information.

For further information: Paolo Lostritto, CEO, tel. 416-602-2645 or Akiba Leisman, Executive Chairman of the Board, tel. 917-558-5289.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary statement regarding forward-looking information

Certain disclosures in this release constitute "forward-looking information" within the meaning of Canadian securities legislation. Forward-Looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-Looking statements also include reference to events or conditions that will, would, may, could or should occur, including, without limitation, statements regarding: the expectation that Sailfish's NSR on Spring Valley will positively impact Sailfish's cash flow once Spring Valley is in production. In making the forward-looking statements in this news release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including, without limitation: that Sailfish's 3% NSR on Spring Valley will positively impact Sailfish's cash flow once Spring Valley is in production and that Spring Valley will go into production as expected by Solidus' management. However, the forward-looking statements in this news release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including without limitation: that Sailfish's NSR on Spring Valley will not positively impact Sailfish's cash flow as expected by Sailfish's management or at all and that Spring Valley will not go into production on the timeframe or on the terms as expected by Solidus' management or at all; and those applicable risks, uncertainties and factors set forth in the Company's disclosure record under the Company's profile on SEDAR at www.sedar.com.There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/241438

FAQ

What are the key financial metrics from the Spring Valley Gold Project feasibility study for SROYF?

The feasibility study shows an after-tax NPV (5%) of US$1.5 billion and an after-tax IRR of 36%.

When is construction expected to begin at Spring Valley for SROYF's royalty project?

Construction is expected to commence in the second half of 2025 (H2/2025).

What royalty interests does SROYF hold in the Spring Valley Gold Project?

SROYF holds up to 3% NSR on majority of the open pit, 1.5% NSR on a portion, and 0.5% NSR on another portion of the proposed open pit.

What are the conditions for SROYF's 3% NSR royalty at Spring Valley?

The 3% NSR royalty is part of a 7% total NSR above $700/oz Au and excludes the first 500,000 ounces of gold recovered from commercial production.

When is the Record of Decision expected for SROYF's Spring Valley Project?

The Record of Decision is expected in the second quarter of 2025 (Q2/2025).