Luca Mining Corp press release

Royalties Inc. Escalates Criminal Investigation by Formally Demanding Production Evidence at the Cozamin Mine

2026-08-20

TSXV - TSX Venture Exchange · Gold · Zinc · Copper · Silver · Lead · Canada · Legal Matters

Canada NewsWire

TORONTO, Aug. 20, 2026/CNW/ -- Royalties Inc.'s (CSE: RI) (OTCID: ROYIF) or "the Company") 88% owned subsidiary, Minera Portree de Zacatecas, S.A. de C.V. (MPZ) filed a criminallawsuit against Raul Gonzalez in 2022 for the possible criminalliability in the "sale of property belonging to another" ("vente de cosa ajena") ie attempting to transfer the ownership of a 2% royalty on the Portree claims to Capstone Copper Corp.'s (Capstone) (TSX: CS) Cozamin copper-silver mine. https://capstonecopper.com/operations/cozamin/. As previous requests and court ordered site visits have been blocked by Capstone, MPZ's lawyers recently escalated this criminallawsuit by filing a request for detailed evidence of historical production including underground mine maps, 3D block models, metallurgical balances, grades, concentrate weighing reports and payment data, invoices, etc on each of the five Portree claims at the Cozamin mine. The formal request was filed at the Public Prosecutor's Office of the State of Zacatecas in the Specialized Unit for the Investigation of the Crimeof Fraudre Case file CUI: 9367-UEI-FRAU-2022, against Raúl González Anaya for allegedfraudulentadministration and specific fraudto the detriment of MPZ.

The submission demands that the Public Prosecutor compel Capstone Gold, S.A. de C.V.— the Mexican operating subsidiary of Capstone Copper Corp to produce fourteen categories of confidential underground mine documents, and separately compels Metagri, S.A. de C.V.(the Mexico City-based concentrate trading intermediary) to produce all payment records, pro forma settlements, bills of lading, and wire transfer receipts for concentrate sold from the five Portree mining concessions.

WHAT IS BEING DEMANDED — THE 14 DOCUMENT CATEGORIES

The formally filed submission demands production of the following documents, under threat of financial penalties pursuant to Article 104(I) of the National Code of CriminalProcedure:

| No. | DOCUMENT DEMANDED FROM CAPSTONE GOLD | STRATEGIC SIGNIFICANCE | | 2.1 | San Roberto Shaft plan — topography, levels, headings (Scale 1:1,000) | _Establishes underground mine infrastructure layout relative to Portree 1 boundary_ | | 2.2–2.6 | Current mine execution plans for all 5 Portree concessions (Portree I, Unificación el Cobre, Jimena, Parroquia Dos, Parroquia Tres) — with precise UTM coordinates and perimeter bearings | _Definitively maps underground mine workings against each concession surface boundary — the extralimitación evidence_ | | 2.7 | Deep Reserve plans for FWZ, San José, Calicanto, San Rafael Calicanto, and Eureka Ramps — with tonnage (cut & fill) and Cu/Ag/Zn/Pb grades | _Quantifies the ore reserves and extracted tonnage within each Portree concession — the royalty base calculation_ | | 2.8 | Weekly long-hole drilling control plans for all weeks worked in the 5 concessions | _Documents the drilling program concession- by-concession — critical for extralimitación and production allocation_ | | 2.9 | Cut & Fill control plans for all 5 concessions | _Cut-and-fill production control records — the primary source for production-by- concession allocation_ | | 2.10 | Metallurgical balances: head grades, concentrate grades, tailings grades, recovery percentages | _Establishes the exact NSR royalty base by concession — fundamental to royalty quantum calculation_ | | 2.11 | Concentrate weighing reports by concession | _Physical concentrate volumes by concession — directly maps to NSR royalty calculation_ | | 2.12 | Public Prosecutor physical inspection visit inside the mine with topography expert and Portree representative | _In-person verification of whether underground workings cross concession boundaries — the extralimitación investigation in action_ | | 2.13 | 3D block model showing stope location and volume within the 5 concessions | _Visual and mathematical proof of where ore was extracted relative to Portree concession boundaries_ | | 2.14 | Metal grades by stope and level for metallic production calculation | _Enables calculation of cumulative metals extracted per concession — the quantum of the royalty claim_ |

THE METAGRI DEMAND — TRACING EVERY DOLLAR OF CONCENTRATE SALES

Separately, the submission demands that Metagri, S.A. de C.V. in Mexico City — the concentrate trading intermediary identified as the entity that received and settled concentrate payments from Capstone Gold — produce all pro forma payment statements, bills of lading, invoices, and payment records for concentrate originating from the five Portree concessions. Metagri's records represent the complete financial chain from mine to smelter settlement — precisely the documentation needed to calculate the NSR royalty base on which Portree's 2% royalty accrues.

ESTIMATED ROYALTY CLAIM — US$50 MILLION

| COMPONENT | ESTIMATED AMOUNT | | Unpaid royalties 2019–2026 (principal only) | ~US$11–15 million | | Moratory interest under Mexican commercial law | ~US$3–5 million | | González defendants — period 2011–2017 (Unificación el Cobre) | ~US$2–3 million | | Forward royalty stream value to 2030 (NPV at 8%) | ~US$15–25 million | | Unexplored Portree/Parroquia area resource value (2-5M t @ 2% royalty) | ~US$10–20 million | | Legal costs 2022–2026 | ~US$1–2 million | | TOTAL ESTIMATED CLAIM | US$50 MILLION |

| | Note: Royalty amounts are estimated based on Capstone Copper's audited financial statements (2019–2025), Capstone's publicly disclosed quarterly royalty payments, and Royalties Inc.'s production allocation analysis. Precise amounts will be determined from Capstone's own production records and Metagri's payment data, which are now formally demanded under criminal investigation proceedings. |

COZAMIN MINE SALE PROCESS

Capstone Copper has retained Scotiabank Global Banking and Marketsto conduct a sale process for the Cozamin Mine, which has been publicly reported as valued at approximately US$400 million. Portree has formally notified Scotiabank GBM of its registered royalty obligation and the two court judgments. Portree notes that any purchaser of the Cozamin concessions will take them subject to Portree's 2% NSR royalty — a real burden running with the land, registered at the RPM and confirmed by two courts — together with all accumulated arrears and interest since 2019.

About Royalties Inc.

Royalties Inc. owns a 100% interest, subject to a 1.5% NSR owned as a separate asset, on the Bilbao silver-zinc-lead project located in the State of Zacatecas, Mexico. Royalties Inc. owns 88% of the outstanding shares of Minera Portree de Zacatecas, S.A. de C.V ("MPZ") which holds a court confirmed claim (twice) to a 2% royalty established in 2002 on five mining concessions called the 'Portree claims', a portion of which is on the Mala Noche Footwall Zone, the main source of production at the Cozamin mine where Capstone Copper Corp. ("Capstone") has been mining since 2010. It attempted to assign this royalty to themselves without the knowledge, consent or proper payment to MPZ, the rightful owner since 2002. Royalties Inc. has a 5% stake in Music Royalties Inc. ("MRI"), which has paid out over $16 million in 79 monthly dividends since 2019 from 31 cash-flowing catalogs with 7,000 songs for a 7.2% annual after tax yield.

Forfurtherinformationcontact Royalties Inc. at www.royaltiesinc.com

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Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of those terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to: sufficient capital and financing required in order to fulfill the Company's business plans and strategy may not be obtained as expected; that the Company will not be able to pay future dividends; and other risks related to the Company as disclosed in the documents filed on the Company's profile atSEDAR+ at www.SEDARplus.ca.Accordingly, readers are cautioned not to place undue reliance on forward-looking statements contained in this press release and they are expressly qualified in their entirety by this cautionary statement. The forward-looking statements herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date.The Company does not undertake any obligation to update publicly or revise any such forward-looking statements whether as a result of new information, future events or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law.

SOURCE Royalties Inc.

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