Ely Gold Royalties (TSXV: ELY) (OTCQB: ELYGF) Options Tonopah West Project in Nevada to Blackrock Gold Corp.

Vancouver, British Columbia--(Newsfile Corp. - February 25, 2020) - Ely Gold Royalties Inc. (TSXV: ELY) (OTCQB: ELYGF) (FSE: A2JSL0) ("Ely Gold" or the "Company") is pleased to announce that it has signed a purchase option agreement with Blackrock Gold Corp (TSXV: BRC) ("Blackrock") for the Company's Tonopah West Project, located in Nevada, for total proceeds of US$3,000,000 (the "Option Agreement"), with Ely Gold retaining a 3% net smelter returns royalty. The Option Agreement is expected to close on or before April 1, 2020 and is subject to certain closing requirements* and approvals including TSX-V approval (the "Closing").

Jerry Baughman, President of Nevada Select commented, "Ely Gold's consolidation of four separate patented and unpatented claim groups in the Tonopah District represents the first time in history that this part of the district will be explored as a single project. This is exactly the kind of high-quality property we continue to generate and option to exceptional exploration partners. Blackrock intends to explore the high-quality target ready zones that have been identified at Tonopah West."

Tonopah West

The Tonopah West Project consists of 97 patented and 17 unpatented lode mining claims covering mineral rights on approximately 4.5 square kilometres (1,100 acres) located in Esmeralda and Nye Counties, Nevada. The project will now consolidate the historic West End, Victor, 76, Extension and a portion of the McNamara Mining Company holdings under a single ownership and will provide an opportunity for modern exploration on the western portion of this historic and storied district.

Ely Gold's wholly owned subsidiary, Nevada Select Royalty, Inc ("Nevada Select") currently controls 23 patented and 17 unpatented lode mining claims. As part of the Option Agreement, Nevada Select will complete the purchase of Cliff ZZ LLC's 75 patented claims which will then be included in the Option Agreement. (See Ely Gold press release dated February 3, 2020).

Tonopah is referred to as the "Queen of the Silver Camps" and has historically produced over 174 million ounces of silver and 1.8 million ounces of gold from approximately 7.5 million tons of high-grade silver-gold epithermal quartz veins (refer to: Ashley, R., USGS Bulletin 1852-H). The main mineralization hosts are volcanic rock of the Mizpah andesite and the West End Rhyolite. These host lithologies are present on the Tonopah West Project.

Trey Wasser, President & CEO of Ely Gold stated, "Ely Gold continues to successfully execute its business plan with this key property consolidation and sale of an important and historic Nevada mining district. The Tonopah West Project will now constitute a cornerstone asset in our Royalty Sale Portfolio".

The Option Agreement

Blackrock Gold Corp.'s wholly owned US subsidiary is acquiring the Tonopah West Project under an option to purchase agreement. The 4-year option has payments as follows:

• US$325,000 on Closing;
• US$325,000 on the 1^st Anniversary of Closing;
• US$650,000 on the 2^nd Anniversary of Closing;
• US$700,000 on the 3^rd Anniversary of Closing; and
• US$1,000,000 on the 4^th Anniversary of Closing (the "Final Payment").

After Blackrock makes the Final Payment, Nevada Select will retain a 3% net smelter returns royalty with no buydown and Blackrock will then pay Nevada Select an annual advance minimum royalty payment of US$50,000 commencing once the option is exercised. The Option Agreement also includes a one-mile area of interest. There are no work commitments associated with the Option Agreement or after the Final Payment.

* As a condition of Closing, Nevada Select will complete the acquisition of the Cliff ZZ land package consisting of 75 patented lode mining claims on or before March 28, 2020.

Qualified Person

Stephen Kenwood, P. Geo, is a 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 Vancouver-based, emerging royalty company with development assets focused in Nevada and Quebec. Its current portfolio includes 36 Deeded Royalties and 22 properties optioned to third parties. Ely Gold's royalty portfolio includes producing royalties, fully permitted mines and development projects that are at or near producing mines. The Company is actively seeking opportunities to purchase existing third-party royalties for its portfolio and all the Company's option properties are expected to produce royalties, if exercised. The royalty and option portfolios are currently generating significant revenue. Ely Gold is well positioned with its current portfolio of over 20 available properties to generate additional operating revenue through option and sale agreements. The Company has a proven track record of maximizing the value of its properties through claim consolidation and advancement using its extensive, proprietary data base. All portfolio properties are sold or optioned on a 100% basis, while the Company retains royalty interests. Management believes that due to the Company's ability to generate third-party royalty agreements, its successful strategy of organically creating royalties, its equity portfolio and its current low valuation, Ely Gold offers shareholders a low-risk leverage to the current price of gold and low-cost access to long-term mineral royalties.

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 statements regarding its current assets, including future mineral production prospects and revenue gains, and Company acquisitions of additional royalty interests. These matters are subject to certain risks and uncertainties. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. 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 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 risks of declining precious metals prices, failure of projects in which the Company has an interest may underperform current management forecasts, the Company may not be able to identify suitable new royalty acquisitions, and the political uncertainties and regulatory or legal disputes or changes in the jurisdictions where the Company carries on its business that might interfere with the Company's business and prospects. 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 (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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