Orogen Royalties Inc. provided an update on its royalty portfolio and forecast for the second half of 2023. Ermitaño Epithermal Gold-Silver Mine, Sonora: Orogen holds a 2% NSR royalty on First Majestic Silver Corp.'s Ermitaño mine with Proven and Probable reserves of 274,000 ounces of gold and 4.6 million ounces of silver, Measured and Indicated resources (inclusive of reserves) of 369,000 ounces of gold and 5.8 million ounces of silver, and Inferred resources of 269,000 ounces of gold and 7.7 million ounces of silver as of December 31, 2022. First Majestic recently announced second quarter production results of 20,073 ounces gold and 142,037 ounces silver from the Ermitaño deposit.

Record recovery rates were also achieved with the recent introduction of a dual-circuit and a new filter press. Gold and silver recoveries averaged 94% and 52%, respectively in the second quarter of 2023. First Majestic also forecasts production for the second half of 2023 to increase by 27% ranging 48,000 to 53,000 ounces gold and 700,000 to 800,000 ounces silver.

First Majestic also announced a 20,000-metre drill program to infill and upgrade the resources at Ermitaño. Select drill hole results from deep drilling at the Ermitaño splay returned true width intersections: 4.27 grams per tonne (g/t) gold and 127 g/t silver over 13.3 metres in drill hole EWUG-23-01; 5.98 g/t gold and 222 g/t silver over 15.55 metres in drill hole EWUG-23-02; 13.73 g/t gold and 150 g/t silver over 6.42 metres in drill hole EWUG23-03; and 8.1 g/t gold and 348 g/t silver over 3.34 metres in drill hole EW-23-327. Drilling to the east of Central Ermitaño returned assays and true width intersections including: 2.67 g/t gold and 54 g/t silver over 1.86 metres in drill hole EW-23-330 and 3.39 g/t gold and 56 g/t silver over 1.96 metres in drill hole EW-23-339. Multiple veins are currently being drilled within five kilometres of the processing plant with First Majestic reporting multiple secondary vein intersections within the hanging and footwall of the Ermitaño vein.

Silicon-Merlin Epithermal Gold Project, Nevada: Orogen holds a 1% NSR royalty on the Silicon-Merlin Project operated by AngloGold. As announced by Orogen on August 8, 2023, AngloGold announced an Exploration Target for the Merlin area of 6 to 8 million ounces gold, with an estimated grade-tonnage range of 230 to 250 million tonnes grading 0.8 to 1.0 g/t gold. An initial Inferred Mineral Resource estimate for Merlin and a Concept Study is expected during second half of 2023.

The Concept Study, integrating Central Silicon and Merlin, is expected to capture the synergies from the increased economies of scale of these two deposits, with the potential for large scale mining. Merlin is located south of the Silicon Deposit where resources of 3.4 million ounces gold Indicated, and 0.8 million ounces gold Inferred were published by AngloGold earlier this year. MPD South (Axe) Copper Gold Porphyry Target, British Columbia: Orogen holds a 2% NSR royalty subject to a 0.5% NSR buydown on Kodiak Copper Corp.'s MPD South property (formerly Axe).

MPD South is located within the greater MPD project and approximately 10 kilometres south on the same structural trend as Kodiak's Gate Zone discovery. Two rigs are currently testing the West, South and Adit targets with plans to test the 1516 zone later in 2023. To date, 5,000 metres of a 25,000 metres property wide program have been completed.

Encouraging initial results for the first three drill holes in the West Zone magnetic anomaly are as follows: AXE-23-001 intersected 0.28% copper, 0.28 g/t gold and 0.83 g/t silver over 158 metres within a broader interval of 0.18% copper, 0.20 g/t gold, and 0.61 g/t silver over 533 metres; AXE-23-002 intersected 0.21% copper, 0.30 g/t gold and 1.36 g/t silver over 203 metres within 0.15% copper, 0.16 g/t gold, and 0.80 g/t silver over 482 metres; and AXE-23-003 intersected 0.22% copper, 0.27 g/t gold, and 1.08 g/t silver over 51 metres within 0.13% copper, 0.20 g/t gold, and 0.61 g/t silver over 209 metres. Combined, these results have confirmed porphyry mineralization over a 300 by 300 metre surface area and to over 800 metres depth, extending well beyond historic drilling. The system is open in nearly all directions.

Drilling east beyond the magnetic anomaly in AXE-23-03 intersected a new, structurally controlled high-grade copper-gold-silver zone assaying 0.93% copper, 0.64 g/t gold, and 3.2 g/t silver over 16 metres and drilling to depth in hole AXE-23-02 intersected over 175 metres of mineralized breccia returning up to 0.29% copper, 0.22 g/t gold and 0.72 g/t silver at the bottom of the hole indicating continued depth potential. West Kenyan Royalty Package Orogenic Gold project: Orogen holds 3% net smelter royalties on the Rosterman, Sigalagala, and Bukura licenses operated by Shanta Gold and proximal to the Isulu-Bushiangala deposits (1.285 million ounces grading 10.6 g/t gold) in western Kenya. Shanta Gold is drilling up to 26,000 metres on the broader West Kenya project with an active drill target for Rosterman in 2023/2024, while both Sigalagala and Bukura are marked as active prospects.

Hank Copper-Gold Project, British Columbia: Orogen holds a 3% NSR royalty subject to a 1% buydown for USD 3 million and a USD 2.5 million payment on 17 square kilometres of land, including the Hank epithermal gold target and Williams copper-gold porphyry area, that comprise part of the 362 square kilometre HWY 37 copper-gold porphyry project in the Golden Triangle in British Columbia. The 345 square kilometre Ball Creek East claims also form part of the HWY 37 project and were optioned by Orogen to Kingfisher in March 2023. The integrated projects now provide for a greater understanding of the relationships between the Hank project and Ball Creek East claims and increase the opportunity for advancement of the overall area.

Drilling has commenced on the HWY 37 Project with plans for a 2,500 metre drill program focused on the Mary to Cliff porphyry to test a zone of undrilled copper rich stockwork, a covered geophysical target interpreted to be the offset extension of the Mary porphyry zone, and step out drilling on the historical Mary deposit. Cuprite Epithermal Gold Target, Nevada: Orogen created a 1.5% NSR royalty on the sale of the Cuprite gold project to Strikepoint Gold Inc. in January 2023. Strikepoint has since doubled the land package at Cuprite to 4,468 hectares and filed a NI 43-101 Technical Report.

Strikepoint has also initiated a permitting process with plans for drilling in the second half of 2023. Cuprite is thought to be geologically similar to the nearby Silicon gold deposit held by AngloGold Ashanti. StrikePoint will utilize similar geochemical, geophysical, and structural vectoring techniques that led to the Silicon gold discovery.