EDM Signs Letter of Intent to Sell a Portion of Its Planned Annual Silver Production to Silver Crown Royalties

Halifax, Nova Scotia--(Newsfile Corp. - September 3, 2024) - EDM Resources Inc. (TSXV: EDM) ("EDM" or the "Company") is pleased to announce the signing of a Letter of Intent ("LOI") with Silver Crown Royalties ("SCRi") for the sale of its anticipated annual silver production at the Scotia Mine. The silver is expected to be produced as a by-product contained within the Scotia Mine's zinc concentrate.

"Since silver is expected to be produced as a by-product contained within the Scotia Mine's zinc concentrate, we have estimated approximately 7,000 ounces per year to be produced from the Scotia Mine and have therefore monetized that future production with a $1M silver royalty with Silver Crown Royalties," said Mr. Mark Haywood, President & CEO. "Silver Crown Royalties is listed on the Cboe Canada Inc. stock exchange as a newly established revenue-generating silver-only royalty company focused on silver as by-product credits," he added.

Under the terms of the LOI, the Scotia Mine will deliver 90%, but no less than 7,000 ounces of silver per annum for a period of ten years. The key terms of the agreement are outlined as follows:

• C$500,000 cash upon execution of the definitive agreement;

  
  

  
  

• C$500,000 worth of SCRi units upon execution of the definitive agreement. Each unit consisting of one common share of SCRi at a price of C$10.00 per Silver Crown Unit. Each unit consists of one Common Share and one-half of one Common Share purchase warrant. Each warrant is priced at C$16.00 each for a period of 36 months;

  
  

  
  

• SCRi is paid 90% of the payable silver produced at the Scotia Mine, but no less than the equivalent 7,000 ounces of silver annually for a minimum of 10 years, or up to 125% of the total capital investment by SCRi; and

  
  

  
  

• If EDM does not proceed with the LOI, then it may be subject to a cancellation fee of up to C$20,000.

  
  

The LOI was signed on 28th August 2024 and the transaction is subject to due diligence and the execution of a definitive agreement, with the closing expected within the next 6 weeks. SCRi shares are traded on the Cboe Canada Inc. stock exchange under the symbol SCRI.