Altius Reports Settlement with Vale on Voisey’s Bay Royalty Dispute

ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius Minerals Corporation (“Altius”) today announces that it and Royal
Gold Inc. (“Royal Gold”) have entered into an agreement with Vale Canada
Limited and certain of its subsidiaries (collectively, the “Parties”) to
comprehensively settle litigation related to calculation of the royalty
in respect of all concentrates produced from the Voisey’s Bay mine in
Newfoundland and Labrador, Canada.

The Voisey’s Bay 3% net smelter return royalty is directly owned by the
Labrador Nickel Royalty Limited Partnership (“LNRLP”), of which Altius
is a 10% owner. The remaining 90% interest in LNRLP is owned by a
subsidiary of Royal Gold.

The Parties agreed to a new method for calculating the royalty in
respect of concentrates processed prospectively at Vale’s Long Harbour
Processing Plant (“LHPP”), which will be effective for all Voisey’s Bay
mine production after April 1, 2018. The specific terms of the
settlement are confidential, but Altius expects the 3% royalty rate will
apply to approximately 50% of the gross metal value in the concentrates
at existing nickel, copper and cobalt prices, after accounting for
acceptable processing and marketing related charges and metal
recoveries. As those metal prices rise or fall, the percentage of gross
metal value in the concentrates applicable to the royalty would
correspondingly increase or decrease.

Brian Dalton, Altius President and CEO commented, “We are pleased to
have reached this settlement which results in the continuation of
royalty payments and provides clarity on how these will be calculated
throughout the future of operations at the world class Voisey’s Bay
nickel-copper-cobalt mine. The new calculation methodology maintains the
estimated future value of the royalty within a range that is consistent
with estimates and assumptions we would have made before the
dispute issues emerged.”

LHPP is designed to produce 50,000 tonnes of finished nickel annually
once it ramps up to full production. On June 11, 2018, Vale announced it
will commence a $1.7 billion development of an underground mine and
associated facilities, which is expected to extend the Voisey’s Bay mine
life until 2034. Vale expects the underground mine to begin production
in 2021 and to ramp up over four years, while the current open pit
mining in the Ovoid deposit is expected to continue until 2022. Vale
estimates Voisey’s Bay mineral reserves at 32.4 million tonnes with a
nickel grade of 2.13%, a copper grade of 0.96%, and a cobalt grade of
0.13% as of December 31, 2017.

About Altius

Altius directly and indirectly holds diversified royalties and
streams which generate revenue from 15 operating mines. These are in
Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore,
potash and thermal (electrical) and metallurgical coal. The portfolio
also includes numerous pre-development stage royalties covering a wide
spectrum of mineral commodities and jurisdictions. It also holds a large
portfolio of exploration stage projects which it has generated for deal
making with industry partners that results in newly created royalties
and equity and minority interests.

Altius has 43,099,526 shares issued and outstanding at August 31,
2018 and is a member of both the S&P/TSX Small Cap and S&P/TSX Global
Mining Indices.

Contacts

Altius Minerals Corporation
Flora Wood / Chad Wells,
1-877-576-2209