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, miningfriendly 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.

The Pinos mining district dates back to the 17th century. It was one of two bonanza gold districts discovered by the Spanish. Towards the end of the 19th century, Cornish miners revived the district and continued mining throughout the Dorada or “Golden” era. Zacatecana Mining Company and Pachuca Mining Company then took over the project and operated in the district between 1920 and 1940.

Historical records indicate over 800,000 ounces of gold have been produced from the Pinos district with average grades of 30 to 50 grams per tonne gold from 33 shafts located throughout the district. Candelaria currently has Indicated resource of 175,697 tonnes at a grade of 4.7 grams per tonne of gold equivalent estimated to contain 26,358 ounces of gold equivalent and the Inferred resource a further 529,267 tonnes at a grade of 4.6 grams per tonne gold equivalent estimated to contain 56,146 ounces of gold equivalent. The 2018 Preliminary Economic Assessment (“PEA”) plans for average yearly production of ~12,700 ounces gold equivalent for a life of mine of seven years with potential for growth, at both depth and along strike, and it’s estimated that 80% of the district has yet to be explored.

The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and, as such, there is no certainty that the PEA results will be realized. The information on our website derived from the PEA is subject to certain assumptions, qualifications and procedures described therein, and reference should be made to the full text of the PEA. The PEA is of a certain point-intime and the Company is not able to determine if any material information subsequent to the date of the PEA exists. Reference should also be made to the public disclosures on SEDAR by Candelaria.

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.sedar.com.

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.