Metalla To Acquire Royalty Portfolio From Alamos Gold; Pursuant To Which Metalla Will Acquire From Alamos One Silver Stream And Three Royalties For $5M Of Common Shares Of Metalla

NYSE AMERICAN: MTA

Unless otherwise specified, all references to dollars set forth herein shall mean United States dollars.

VANCOUVER, BC, Dec. 22, 2022 /PRNewswire/ - Metalla Royalty & Streaming Ltd. ("Metalla" or the "Company") (TSXV:MTA) (NYSE:MTA) is pleased to announce a royalty purchase agreement with Alamos Gold Corp ("Alamos") (NYSE:AGI) (TSX:AGI) dated December 22, 2022, pursuant to which Metalla will acquire from Alamos one silver stream and three royalties for $5 million of common shares of Metalla (the "Transaction").

TRANSACTION HIGHLIGHTS

• Medium Term Development: The portfolio adds a silver stream on the Esperanza Gold Project ("Esperanza") being advanced by Zacatecas Silver Corp. ("Zacatecas").
  
  
   
• Accretive Growth and Increased Size and Scale: The addition of four royalties and stream from Alamos will expand Metalla's portfolio to 85 royalties and streams, and enhances Metalla's industry leading development pipeline and exposure to silver.
  
  
   
• Counterparty Diversification: Counterparties include Zacatecas, Mayfair Gold Corp. ("Mayfair"), Platinex Inc. ("Platinex") and Newpath Resources Inc. ("Newpath").
  
  
   
• Adds New Major Shareholder: We are excited to partner with Alamos, one of the Canada's leading gold producers with a market cap of ~$3.8 billion, which will become a meaningful shareholder at approximately 1.86%.

Brett Heath, President and CEO of Metalla, commented, "We are pleased to partner with Alamos for the second time at Metalla. This transaction adds meaningful silver leverage to our portfolio while complementing our Canadian exploration portfolio in known mining camps and on proven geological trends. We want to thank Alamos for entrusting the Metalla team once again with the monetization of their royalty and streaming portfolio."

The aggregate consideration payable by Metalla for the purchase of the royalties will be satisfied by Metalla issuing at closing $5 million of common shares based on the 20-day volume-weighted average price of shares traded on the NYSE American LLC ("NYSE") prior to this announcement at a price of US$5.3228 (representing an aggregate of 939,355 common shares of Metalla). The Transaction is subject to customary closing conditions and exchange approvals and is expected to close in Q1 2023.

PORTFOLIO OVERVIEW

Asset	Operator	State	Stage	Terms
Esperanza	Zacatecas Silver	Morelos	Development	20% Ag Stream
Fenn Gibb South	Mayfair Gold	Ontario	Exploration	1.4% NSR
Ronda	Platinex	Ontario	Exploration	2% NSR
Northshore West	Newpath Resources	Ontario	Exploration	2% NSR

Esperanza (20.0% Silver Stream)1,2,6,7

Esperanza is an advanced stage, low-capital-intensity gold project in Morelos State, Mexico operated by Zacatecas (TSXV:ZAC). Esperanza was previously acquired from Alamos which progressed the project through advanced engineering, including metallurgical work, while focusing on stakeholder engagement through building community relations. Esperanza is an oxidized gold-silver skarn deposit expected to be mined via open pit and processed through heap leaching. The project has been envisioned as a 7.3 Mt/annum project producing an annual average of 111 Koz gold and 225 Koz silver. Zacatecas expects to deliver an updated Pre-Feasibility Study on Esperanza in early 2023. 

Significant drilling has occurred on the Esperanza project with more than 69,000 meters completed to date. Three zones of skarn mineralization exist within one kilometer of the deposit, the Northern Contact, NE Intrusive Contact and Colopotec prospects. Two holes at the Northern Contact have intercepted between 12 and 15 meters of Skarn mineralization, averaging 150 g/t silver. A high-grade feeder zone at the western flank of the intrusion is a target to be drilled in 2023. Additional targets exist on the 14,337 hectare land package including the Coatetelco, Mercury Mines and Alpuyeca targets.

Zacatecas Silver has committed to incur a minimum of $7.5 million over a three-year period directed to advancing the development of Esperanza and to obtain approval of an Environmental Impact Assessment Report.

Metalla will acquire the 20% silver stream on Esperanza subject to ongoing payments of 20% of silver spot price. The stream is subject to a maximum of 500 Koz silver delivery if commercial production occurs prior to 2029. Metalla will also acquire the right of first refusal on future royalty and stream financing for the Esperanza project.

Reserve & Resource Estimate – Esperanza
	Tonnes	Gold		Silver
	(000's)	(g/t)	(Koz)	(g/t)	(Koz)
Measured (Pit-Constrained)	4,194	1.01	137	6.1	827
Measured (Out-of-Pit)	10	1.89	1	14.5	5
Indicated (Pit-Constrained)	26,074	0.91	762	9.1	7,587
Indicated (Out-of-Pit)	260	1.57	13	10.9	91
M&I Total	30,538	0.93	913	8.7	8,510
Inferred (Pit-Constrained)	8,258	0.86	229	14.7	3,905
Inferred (Out-of-Pit)	479	1.77	27	11.8	182
Inferred Total	8,737	0.91	256	14.5	4,087

Fenn Gib South (1.4% NSR)3

The Fenn Gib South royalty covers five mineral claims on the southern concessions which cover the prolific Destor-Porcupine Fault, 3km south of Mayfair's (TSX:MFG) main ~3 Moz gold Fenn-Gibb property. Mayfair's phase one drill program on the Fenn Gib South property is comprised of a total of 3,468 meters drilled in eighteen holes. Assays are pending and a follow up drill program is planned for the upcoming winter.

Metalla will acquire a 1.4% NSR Royalty on five mineral claims (81 hectares) on the Fenn Gib South property.

Ronda (2.0% NSR)4

The Ronda royalty covers the past-producing Ronda mine at the Platinex's (CSE:PTX) Shining Tree exploration property near Shining Tree, Ontario. Ronda is along trend from IAMGOLD Corporation's Côté Gold Project and adjoins Aris Mining Corporation's which hosts a resource of 2.3 Moz of gold. Platinex has begun mapping of the project in order to begin an exploration drill program and identified multiple gold in till anomalies that warrant follow up. One-half of the royalty may be repurchased by Platinex for C$0.5 million.

Northshore West (2.0% NSR)5

The Northshore West property is comprised of 234 hectares in the western area of New Path Resources' (CSE:RDY) Northshore project. New Path Resources recently outlined a 240 Koz gold resource estimate at the Afric zone on the Northshore project claims. The Northshore West royalty is located west and adjacent to the resource.

QUALIFIED PERSON

The technical information contained in this news release has been reviewed and approved by Charles Beaudry, M.Sc., geologist and member of the Association of Professional Geoscientists of Ontario and the Ordre des Géologues du Québec and a consultant to Metalla. Mr. Beaudry is a Qualified Person as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43‑101").