In November 2020, Empress completed the acquisition of a combined 1% NSR royalty on Candelaria Mining Corp.’s (“Candelaria”) Pinos gold and silver project in Mexico for an aggregate consideration of $1,954,950 (US$1,500,000) cash. The acquisition was a combination of a newly created 0.5% NSR royalty on the Pinos project from Candelaria for consideration of US$750,000 and the purchase of a 0.5% NSR royalty on the Pinos project from an existing royalty holder for consideration of an additional US$750,000. Empress’ royalties create a direct real property interest in the Pinos project, that shall continue in perpetuity and registered against title.

The Pinos project, 100% owned by Candelaria, is located in the high-grade historical gold and silver district of the Zacatecas mining belt in north-central Mexico, just 67 kilometers northwest of San Luis Potosi. Zacatecas state, the second largest gold producing district in the country after Sonora, is a stable, mining friendly state that includes Newmont Mining’s Peñasquito mine and Capstone Mining’s Cozamin mine. Pinos has excellent infrastructure with paved roads to the entry of the mine and electricity on-site. The Pinos project consists of 29 concessions comprising 3,816 hectares which is roughly 17 kilometers worth of veins containing gold and silver. The veins have been mined historically to a depth of only 180 meters, due to reaching the water table, but mineralization has been shown to continue at depth.

Pinos has all permits in-place for production and is currently being moved towards construction under its PEA and will begin construction of a 200 tonnes per day mining operation with a path to ramp-up to 400 tonnes per day within two years of initial production.

Further information on the Pinos project can be found in Candelaria’s “NI 43-101 Preliminary Economic Assessment Study for the Pinos Project Zacatecas Mexico” (the “Pinos Technical Report”) titled authored by Jose Antonio Olmedo, Geol. Eng., M.Sc. and David J. Salari, P. Eng., dated October 16, 2018 and effective September 13, 2018. The Pinos Technical Report was prepared in accordance with NI 43-101 and is available on Candelaria’s company profile at www.sedarplus.ca.

Candelaria, the owner and operator of the Pinos project, has announced its decision to advance the Project to development prior to the completion of a feasibility study.