Trident Royalties Regulatory News (TRR)

15 May 2023

Trident Royalties Plc

("Trident" or the "Company")

Acquisition of Near-Production Silver Royalty

Trident Royalties Plc (AIM: TRR, OTCQX: TDTRF), the diversified mining royalty company, is pleased to announce that it has entered into a binding sale and purchase agreement ("SPA") with Coeur Mining, Inc. ("Coeur", NYSE: CDE) to acquire royalties and a milestone payment (the "Royalty Assets", and the acquisition thereof, the "Transaction") over the La Preciosa Silver Project ("La Preciosa" or the "Project"), owned by Avino Silver & Gold Mines Ltd. ("Avino", TSX: ASM, NYSEAMERICAN: ASM), in Mexico.

The Royalty Assets comprise:

· 1.25% net smelter return royalty (the "NSR Royalty") covering the Gloria and Abundancia veins;

· 2.00% gross value return royalty (the "GVR Royalty") covering all other areas of La Preciosa; and

· US$8.75 million milestone payment (the "Milestone Payment"), payable within 12 months of first silver production at La Preciosa.

In consideration, Trident shall pay US$7 million in cash on closing, and a further US$1 million, in cash or shares at Trident's election, upon receipt of the Milestone Payment or other circumstances as set out in the SPA.

HIGHLIGHTS

Near term cash flow over an attractive asset & new commodity exposure

· La Preciosa is one of the largest undeveloped primary silver resources in Mexico, originally acquired by Coeur in 2013 for approximately C$350 million. In March 2022, Coeur sold the asset to Avino for cash, shares, and the Royalty Assets.

· Avino operates the Avino silver mine and mill 19km from La Preciosa, producing concentrates which are sold to Samsung C&T U.K. Ltd. Avino intends to begin processing stockpiled material from La Preciosa in late H2 2023 at its mill, before commencing production from fresh ore in 2024.1

· Avino intends to ramp annual silver production from La Preciosa to circa 3 million ounces ("Moz") by 2027, increasing to 3.5Moz in 2028.2 With a current total Mineral Resource estimate of 120Moz of silver and 224,000 ounces of gold3, La Preciosa is expected to be a long-life asset with further expansion potential.

· The Transaction introduces a new commodity to Trident's portfolio, which currently contains exposure to gold, lithium, copper, iron ore, and mineral sands. In addition to being a tangible store of value and an inflation hedge, with over 50% of silver use for industrial purposes, it is increasingly important due to its conductivity and corrosion resistance, making it a critical component of both solar panels and electric vehicles.

Adam Davidson, Chief Executive Officer of Trident commented:

"This transaction with Coeur again demonstrates our ability to add value for shareholders. The generation of cash earlier this year from the highly profitable disposal of several exploration stage gold royalties has enabled us to complete a speedy and efficient transaction that provides Coeur with a meaningful cash consideration while delivering an attractive return for our investors.

"The Trident portfolio is developing and maturing. La Preciosa is expected to start generating cash for Trident in the near-term, further adding to the rising cash profile that we see over the coming years. La Preciosa is a highly attractive, long-life asset. We are delighted to add silver to our portfolio, combining aspects of precious metals along with significant potential within electrification and transition materials."

La Preciosa Silver-Gold Project

The Project, an advanced stage development project located in the State of Durango in Mexico, is 100% owned and operated by Avino. Avino currently operates the Avino silver mine and mill 19km away from La Preciosa and has indicated it intends to leverage the infrastructure at Avino to begin producing silver from La Preciosa in H2 2023. 1

Figure 1. Map Highlighting the Distance from the Avino Mine to the La Preciosa Deposit (Avino Silver & Gold Mines Ltd., April 2023 Corporate Presentation)

Avino notes that La Preciosa is one of Mexico's largest undeveloped primary silver resources. The October 2021 Mineral Resource Estimate 3 comprises a Total Indicated Mineral Resource of 17Mt @ 176 g/t Ag & 0.34g/t Au, for 99Moz Ag and 189Koz Au; and an Inferred Resource of 4Mt @ 151 g/t Ag & 0.25g/t Au, for 21Moz Ag and 35Koz Au.

Avino is currently developing underground mining plans to initially mine the Gloria and Abundancia veins at La Preciosa. Additionally, Avino is engaging with local communities and advancing permitting to allow it to open a portal for the underground mine, which is expected to be completed in early 2024. Avino notes that it expects little economic impact in the short term from the recent changes to Mexican mining laws, with its concessions in good standing for the long term.4 In parallel to developing the underground mine, Avino has indicated it expects to begin processing existing surface stockpiles from La Preciosa in H2 2023.

Royalty Assets

Pursuant to the Transaction, Trident is acquiring two royalties and the associated Milestone Payment.

The NSR Royalty is a 1.25% net smelter returns royalty and covers the Gloria and Abundancia veins at La Preciosa as outlined in Figure 2 below.

Figure 2. Map of La Preciosa Project Showing Named Veins and Licence Areas Subject to the NSR Royalty, GVR Royalty and the Contingent New Reserve Discovery Payment

The NSR royalty is a perpetual royalty and does not include any buyback provisions for the operator. Additionally, the royalty entitles Trident a right of first refusal on any future additional royalties over the NSR Royalty coverage area.

The GVR Royalty is a 2.00% gross value returns royalty and covers the entirety of the La Preciosa Project, excluding areas covered by the NSR Royalty (see Figure 2). The GVR Royalty further covers any areas within a two-mile radius of La Preciosa. Additionally, the royalty entitles Trident a right of first refusal on any future additional royalties over the GVR Royalty coverage area and provides Avino with a right of first offer on any potential sale of the GVR Royalty.

The GVR Royalty also provides for a New Reserve Discovery Payment over certain areas of La Preciosa, entitling the royalty holder to receive US$0.25 / silver equivalent ("AgEq") ounce, adjusted for inflation, for any new reserves reported. Any New Reserve Discovery Payment would offset future royalty payments under the GVR Royalty, subject to a US$50 million cap.

The Milestone Payment comprises a US$8,750,000 payment due and payable within twelve months of first silver production from La Preciosa. The Milestone Payment may be paid, at Avino's election, up to 50% in Avino shares priced at a 20-day volume weighted average price two days before the issuance of the shares.

The Transaction

Pursuant to a legally binding sale and purchase agreement (the "Sale and Purchase Agreement"), Trident has paid US$7,000,000 in cash to Coeur.

Upon receipt of the Milestone Payment or other circumstances as set out in the SPA, Trident must pay a further US$1,000,000 (the "Contingent Payment") in cash or Trident shares to Coeur. Should Trident elect to settle the Contingent Payment with Trident shares, such shares will be issued at a 20-day volume weighted average price prior to the date of the Contingent Payment.

References

1: Source: Webcast - Fourth Quarter and Year End 2022 Financial Results Webcast and Call, March 29, 2023

(https://avino.com/site/assets/files/5422/avino20230329_archive.mp4)

2: Source: Avino Silver & Gold Mines Corporate Presentation, April 2023

( https://avino.com/investors/presentations/ )

3: Source: Resource Estimate Update for the Proposed Acquisition of the La Preciosa Property, Durango, Mexico, Effective Date October 27, 2021

( https://avino.com/site/assets/files/5327/la_preciosa_technical_report.pdf )

La Preciosa Property Mineral Resource Summary (Total, All Veins), Effective Date 27 October 2021

Notes: kt=thousands of tonnes, Cu=Silver, Au=gold, koz.= thousands of troy ounces, Moz millions of troy ounces

Mineral Resources are reported using CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014) and CIM Estimation

of Mineral Resources and Mineral Reserves Best Practice Guidelines (November 2019).

The QP for the estimate is Mr. Michael F O'Brien, P.Geo., Red Pennant Resources. Geoscience.

The Mineral Resources have an effective date of July 23, 2021.

Mineral Resources are reported using a silver equivalent (AgEq) cut-off of 120 g//t, using metal prices of Ag 19 US$/oz and Au 1750 US$/oz.

Totals may not sum due to rounding.

Areas of uncertainty that may materially impact the MREs include:

• Changes to long-term metal price assumptions;

• Changes in local interpretations of mineralization geometry, fault geometry and continuity of mineralized zones;

• Changes to metallurgical recovery assumptions;

• Changes to resource classification approach

• Variations in geotechnical, hydrogeological, and mining assumptions;

• Changes to environmental, permitting, and social license assumptions.

The Mineral Resource was estimated in October 2021 and restricted to continuous regions amenable to underground exploitation using costs derived from the nearby Avino Mine to provide reasonable prospects for eventual extraction.

4: Source: Webcast - First Quarter 2023 Results Webcast and Call, May 12, 2023

( https://avino.com/investors/quarterly-results-calls/ )

Competent Person's Statement

The technical information contained in this disclosure has been read and approved by Mr Nick O'Reilly (MSc, DIC, MAusIMM, MIMMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules - Note for Mining and Oil & Gas Companies. Mr O'Reilly is a Principal Consultant working for Mining Analyst Consulting Ltd which has been retained by Trident to provide technical support.

** Ends **

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About Trident

Trident is a growth-focused diversified mining royalty and streaming company, providing investors with exposure to a mix of base battery, precious, and bulk metals.

Key highlights of Trident's strategy include:

The acquisition and aggregation of individual royalties and streams is expected to deliver strong returns for shareholders as assets are acquired on terms reflective of single asset risk compared with the lower risk profile of a diversified, larger scale portfolio. Further value is expected to be delivered by the introduction of conservative levels of leverage through debt. Once scale has been achieved, strong cash generation is expected to support an attractive dividend policy, providing investors with a desirable mix of inflation protection, growth and income.

Forward-looking Statements

This news release contains forward‐looking information. The statements are based on reasonable assumptions and expectations of management and Trident provides no assurance that actual events will meet management's expectations. In certain cases, forward‐looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Although Trident believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Mining exploration and development is an inherently risky business. In addition, factors that could cause actual events to differ materially from the forward-looking information stated herein include any factors which affect decisions to pursue mineral exploration on the relevant property and the ultimate exercise of option rights, which may include changes in market conditions, changes in metal prices, general economic and political conditions, environmental risks, and community and non-governmental actions. Such factors will also affect whether Trident will ultimately receive the benefits anticipated pursuant to relevant agreements. This list is not exhaustive of the factors that may affect any of the forward‐looking statements. These and other factors should be considered carefully and readers should not place undue reliance on forward-looking information.

Third Party Information

As a royalty and streaming company, Trident often has limited, if any, access to non-public scientific and technical information in respect of the properties underlying its portfolio of royalties and investments, or such information is subject to confidentiality provisions. As such, in preparing this announcement, the Company often largely relies upon information provided by or the public disclosures of the owners and operators of the properties underlying its portfolio of royalties, as available at the date of this announcement.