Altius Reports Q1 2019 Royalty Revenue of $21.8M and Adjusted EBITDA of $17.4M

ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius Minerals Corporation (“Altius” or the “Corporation”) reports
attributable royalty revenue^{(Note 1)} of $21.8 million ($0.51
per share) for the quarter ended March 31, 2019, a quarterly record
which is up 38% compared to Q1 2018 royalty revenue of $15.8 million and
up 24% compared to Q4 2018 revenues of $17.6 million. Total Q1 2019
revenue of $21.9 million includes a small contribution from our Project
Generation division.

Adjusted EBITDA^{(Note 1)} of $17.4 million ($0.41 per share)
for the three months is also a record, and compares to $12.7 million
($0.29 per share) in Q1 2018 and $13.4 million ($0.31 per share) in Q4
2018. General and administrative expenses in the first quarter were $2.8
million compared to $1.9 million in the comparable quarter last year,
with most of the increase relating to the new renewable energy royalty
subsidiary. Excluding corporate development and one-time structuring
expenditures, ongoing G&A expenditures for the new division are expected
to be roughly US$1 million annually. Q1 2019 net earnings per share were
$0.15 compared to $0.06 in Q1 2018 and a loss of $0.29 per share in Q4
2018, which included non-cash impairment charges of $0.28 per share. Q1
2019 earnings include a foreign exchange loss of $629,000 and a $345,000
loss on revaluation of derivatives (share purchase warrants), along with
$1.2 million from the equity accounting for Altius’s share of losses in
Adventus Zinc Corporation (“Adventus”) and Alderon Iron Ore Corp.

Royalty revenue highlights are as follows:

• Base metal revenue of $7.6 million in Q1 2019 was up 6% from Q1 2018
  revenue of $7.2 million, but with the proportions from Chapada and 777
  differing significantly, as Chapada revenue was $5.4 million in the
  quarter. Despite lower prices year over year, Chapada sales volume
  more than offset the price decrease, with Chapada’s strong Q4 2018
  production impacting royalty revenue in the first quarter this year.
  While 777 copper volumes were up year over year, lower prices and
  continuing lower zinc production resulted in lower overall revenues.
  Voisey’s Bay revenue of $297,000 in Q1 2019 is relatively consistent
  with the quarterly revenue recorded in Q3 and Q4 last year.
• Potash royalty revenue of $4.8 million is up 105% from Q1 2018,
  although the comparison partly reflects a higher ownership level
  following an acquisition that closed in late March 2018. Q1 2019
  revenue is up 29% from Q4 2018 revenue of $3.7 million, with
  improvements in both price and attributable royalty production volume.
• Indirect iron ore royalty revenue from an approximate 6.3% ownership
  of Labradaor Iron Ore Royalty Corporation (“LIORC”) was $4.2 million,
  compared to $1.1 million in the comparable period of 2018
  (strike-impacted) and $2.1 million in Q4 2018. The ownership position
  in Q1 increased by approximately 540,000 shares over Q4 2018, but the
  main factor driving the increase was a return to the historical
  passive corporate mandate and practice of paying a higher percentage
  of free cash flow as dividends.
• Met coal royalty revenue of $1.2 million was up 93% year over year,
  reflecting significantly higher production volumes.

The following tables summarize the financial results for the quarter
ended March 31, 2019.

Note

1. Attributable revenue and adjusted EBITDA are intended to provide
   additional information only and do not have any standardized meaning
   prescribed under IFRS and should not be considered in isolation or as
   a substitute for measures of performance prepared in accordance with
   IFRS. Other companies may calculate these measures differently. The
   attributable revenue and adjusted EBITDA per share metrics divide the
   respective values by the weighted average number of shares outstanding
   during the period. For a reconciliation of these measures to various
   IFRS measures, please see the Corporation’s MD&A which is available at http:/altiusminerals.com/financial-statements.

Additional information on the Corporation’s results of operations and
developments in its Project Generation division are included in the
Corporation’s MD&A and Financial Statements which were filed on SEDAR
today and are also available on the Corporation’s website at www.altiusminerals.com.

Outlook, Liquidity and Dividend Declaration

Cash at March 31, 2019 was $21.3 million. During the quarter, the
Corporation drew down $25.2 million on its revolving credit facility,
which was mainly used for investing purposes. The Corporation repaid $5
million in accordance with the quarterly amortization schedule of its
term debt, ending the quarter with total debt of $135 million.
Subsequent to quarter end, the Corpration repaid an additional $11
million on its revolving credit facility. Sales of equities net of
reinvestment from the Project Generation junior equities portfolio in
the first quarter generated an additional $7.5 million.

Altius used $23.7 million to acquire investments, with $12.7 million
going to the LIORC position increase and approximately $991,000 for
additional lithium royalty investments. In January 2019, Altius
announced the acquisition from Resouce Capital Fund of a 2% net smelter
return royalty on the Curipamba copper-gold-zinc project, the flagship
project of Adventus in Ecuador. The purchase consideration was US$10
million, paid in cash. Adventus released an overview of a preliminary
economic assessment for the El Domo deposit, which is part of the
Curipamba project, that indicated robust results. It has also announced
an equity financing, which is being led by Nobis Group, an Ecuador based
conglomerate, that includes participation by several other of Adventus’s
strategic shareholders (see Adventus press releases dated May 2 and May
6, 2019).

In February 2019, Altius announced the acquisition of Great Bay
Renewables for $6,153,000 (US$5 million net of cash assumed), a U.S.
based company focussed on the acquisition and management of renewable
energy royalties. We also announced the subsequent investment of
$9,840,000 (US$7.5 million) into the first renewable energy royalty
transaction with Tri Global Energy LLC (“TGE”), a leading wind developer
based in Texas. In exchange for its investment in TGE, which could total
up to US$30 million, Altius will be entitled to 3% gross revenue
royalties on a portfolio of renewable wind energy projects under
development by TGE. This represents the first step in a planned
strategic transition to renewable energy royalty revenue as thermal coal
royalty revenue is phased out over the next 10 years.

As announced April 17, 2019, Altius now expects full year royalty
revenue of $77-$81 million, compared to the $67-$72 million original
guidance. This compares with full year revenue in 2018 of $67 milion.
This revision considered the strong first quarter results, increased
ownership of LIORC and an improved dividend ratio payout outlook, as
well as increased base metal and iron ore prices relative to the
beginning of the year.

The Corporation also advises that its board of directors has elected to
increase its regular quarterly cash dividend to five cents per common
share payable to all shareholders of record at the close of business on
June 6, 2019. The dividend is expected to be paid on or about June 20,
2019. The declaration, timing and payment of future dividends will
largely depend on the Corporation’s financial results as well as other
factors. Dividends paid by Altius on its common shares are eligible
dividends for Canadian income tax purposes unless otherwise stated.

Ben Lewis, Altius CFO commented, “We are experiencing strong growth
across our royalty portfolio. This growth is coming increasingly from
organic drivers as commodity prices that have improved from the 2016
cyclical bottom are directly translating into higher unit revenues,
while also motivating several of our royalty counterparties to increase
production volumes and invest in new mines, expansions and extensions.
This shift is allowing us to make a cyclical adjustment to our capital
allocation prioritization towards more aggressive debt repayment as well
as the increased regular dividend that the Altius board approved today
in recognition of the underlying strength of our diversified portfolio
of long-life royalties.”

Q1 2019 Financial Results Conference Call and Webcast Information:

A conference call will be held on Wednesday, May 8, 2019, starting at
9:00 a.m. ET to further discuss the quarter and guidance for 2018. To
participate in the conference call, use the following dial-in numbers,
or join the webcast on-line as detailed below.

The call will be webcast and archived on the Corporation’s website for a
limited time.

About Altius

Altius directly and indirectly holds diversified royalties and
streams which generate revenue from 15 operating mines. These producing
royalties are located in Canada and Brazil and provide exposure to
copper, zinc, nickel, cobalt, iron ore, potash, thermal (electrical) and
metallurgical coal. The portfolio also includes development stage
royalties in copper and renewable energy and numerous predevelopment
stage royalties covering a wide spectrum of mineral commodities and
jurisdictions. Altius also holds a portfolio of junior equities that
were generated from vending exploration projects to industry partners in
exchange for minority equity interests and new royalties. Altius has
42,861,796 common shares issued and outstanding that are listed on
Canada’s Toronto Stock Exchange. It is a member of both the S&P/TSX
Small Cap and S&P/TSX Global Mining Indices.

Contacts

For further information, please contact Ben Lewis or Flora Wood at
1.877.576.2209 or flora@altiusminerals.com.