Royalties Inc. press release

Royalties Inc. Reports the Zacatecas Attorney General Formally Serves Capstone Copper's Cozamin Mine with Criminal Document Demand for Production Evidence

2026-09-25

CSE - Canadian National Stock Exchange · Silver · Zinc · Lead · Copper · Canada · Legal Matters

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TORONTO, Sept. 25, 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" ("venta 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 mine. https://capstonecopper.com/operations/cozamin/. Raul Gonzalez has admitted and accepted these facts.

The Fiscalía General de Justicia del Estado de Zacatecas,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, formally served C. Ing. Abel González Vargas, the legal representative of Capstone Gold, S.A. de C.V.(the Cozamin mine), the Mexican operating subsidiary of Capstone Copper Corp to produce 14 categories of confidential underground mine documents, maps, the 3D block model and separately compels Metagri, S.A. de C.V.(the Mexico City office – and Manzanillo Port concentrate collector and 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. This order for production records explicitly warns that failure to comply or submission of false information will result in criminalenforcement measures under Article 104 of the National Code of CriminalProcedureare subject to penalty for non-compliance.

CRIMINALSANCTION FOR NON-COMPLIANCE

This was an official ACUSE(formal criminalservice document) dated September 7, 2026, received and signed by Capstone Gold's representative on September 10, 2026. It contains an explicit criminalwarning, signed by Lic. Andrea Viridiana Arellano Ruíz., that failure to comply with this requirement, or submission of false information, will result in enforcement measures under Article 104 of the National Code of CriminalProcedure.Article 104 provides for financial penalties (fines) and, in cases of persistent non-compliance, escalating criminalsanctions against responsible individuals — including Capstone Gold's named legal representative Abel González Vargas, who personally received and signed the document on September 10, 2026. The demand specifically investigates the offense of FRAUDAND/OR WHATEVER MAY RESULT— the phrase _"y/o el que resulte"_(and/or whatever may result) is a standard Mexican prosecutorial formula that explicitly leaves open the possibility of additional charges arising from the evidence produced. In the context of this case, this includes the potential charges of lack of authority (mining outside concession limits), venta de cosa ajena(sale of property belonging to another), and administración fraudulenta(fraudulentadministration).

About Royalties Inc.

Royalties Inc. owns a 100% interest, subject to a 1.5% NSR, owned as a separate asset, on the Bilbao project in Zacatecas. Royalties Inc. owns 88% 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. Royalties Inc. has a 5% stake in Music Royalties Inc. ("MRI"), which has paid out over $16 million in 80 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

| | TimGallagherConnorGallagherAndrew Robertson

CEO & Director Investor Relations Director | | | (416) 276-5440 (647) 921-2206 (416) 317-0137 |

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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 at SEDAR+ 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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