ELYGF - Ely Gold Royalties Acquires Heavy Rare Earth El Campo Project California

Samples Return up to 8.60% Total Critical Rare Earth Oxides, Located 3.2 Miles from MP Material's Mountain Pass Mine

Vancouver, British Columbia--(Newsfile Corp. - February 12, 2021) - Ely Gold Royalties Inc. (TSXV: ELY), (OTCQX: ELYGF) ("Ely Gold" or the "Company") is pleased to report nine assayed samples of total rare earth oxides ("REO") at its El Campo Project ("El Campo") located in San Bernardino County, California. El Campo encompasses five contiguous unpatented mining claims that are surrounded by mining claims held by MP Materials which make up the Mountain Pass Mine Property ("Mountain Pass"). Mountain Pass is the only operating rare earth mine in the Western Hemisphere.. El Campo is located along strike and 3.2 miles southeast of Mountain Pass (see Figure #1). Ely Gold Acquired El Campo through staking.

Since acquiring El Campo, Ely Gold has collected and analyzed a total of nine bedrock samples which returned up to 8.60% total Rare Earth Oxides ("REO"), similar in grade to Mountain Pass ore. The REO mineralization is hosted by syenite and shokonite dikes. The mineralized zones sampled are carbonatite composed of calcite and or dolomite, barite and bastnasite and are up to 20 feet wide at surface.

El Campo's REO content is made up of heavy rare earth elements Nd, Pr, La, Ce & Sm. The elevated higher-value elements, Neodymium-Praseodymium ("NdPr") are important for producing permanent magnets used in electric vehicles and wind turbines while the Samarium ("Sm") is important for defense applications such as drones and cruise missles. All nine of the samples, which returned REO values of 4% or greater, are summarized in the table below:

El Campo Project Sampling Program Highlights

Trey Wasser, President and CEO commented; "We are excited with the impressive grades from our initial sampling that suggest the potential to outline a high-grade rare earth deposit at our El Campo Project. The proximity to the high-grade Mountain Pass Mine, North America's only operating rare earth mine, makes this a very exciting project. El Campo will be placed in our "properties available for sale" portfolio, The sale of El Campo will generate Ely Gold's first rare earth royalty."

Figure 1

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Qualified Person

Stephen Kenwood, P. Geo, is director of the Company and a Qualified Person as defined by NI 43-101. Mr. Kenwood has reviewed and approved the technical information in this press release.

About Ely Gold Royalties Inc.

Ely Gold Royalties Inc. is a Nevada focused gold royalty company. Its current portfolio includes royalties at Jerritt Canyon, Goldstrike and Marigold, three of Nevada's largest gold mines, as well as the Fenelon mine in Quebec, operated by Wallbridge Mining. The Company continues to actively seek opportunities to purchase producing or near-term producing royalties. Ely Gold also generates development royalties through property sales on projects that are located at or near producing mines. Management believes that due to the Company's ability to locate and purchase third-party royalties, its strategy of organically creating royalties and its gold focus, Ely Gold offers shareholders a favourable leverage to gold prices and low-cost access to long-term gold royalties in safe mining jurisdictions.

On Behalf of the Board of Directors
Signed "Trey Wasser"
Trey Wasser, President & CEO

For further information, please contact:

Trey Wasser, President & CEO
trey@elygoldinc.com
972-803-3087

Joanne Jobin, Investor Relations Officer
jjobin@elygoldinc.com
647-964-0292

FORWARD-LOOKING CAUTIONS: This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including, but not limited to, statements regarding completion of the Transaction. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include the Company's inability to control whether the buy-down right will ever be exercised, and whether the right of first refusal will ever be triggered, uncertainty as to whether any mining will occur on the property covered by the Probe Royalty such that the Company will receive any payment therefrom, and the general risks and uncertainties relating to the mineral exploration, development and production business. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effect.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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