Royalties

ABOUT
McEwen Royalties

McEwen holds royalty interests that provide additional exposure to value generated by strategic assets and businesses in which the Company has an interest.

These include existing Net Smelter Return (NSR) royalties on properties located in the state of Nevada, USA; the San Juan and Santa Cruz provinces in Argentina; the Yukon province of Canada, and a potential royalty on revenues from Paragon Advanced Labs Inc. (Paragon).

McEwen
ROYALTIES

CURRENT

1.25% NSR on Los Azules property, San Juan, Argentina (owned by McEwen Copper)
1.25% NSR on Elder Creek property, Nevada, USA (owned by McEwen Copper)
2.0% NSR on 20 exploration licenses in the district of San Jose and Cerro Negro mines, Santa Cruz, Argentina (owned by Minera Santa Cruz JV)
0.5% NSR on part of Limo Butte property, Nevada, USA (owned by NevGold Corp)
1.0-2.0% NSR on Cedar Wash property, Nevada, USA (owned by NevGold Corp)
0.89% capped NSR on Jason property, Yukon, Canada (owned by Fireweed Metals)

POTENTIAL

3% on laboratory gross revenues from third-party clients of Paragon Advanced Labs (Paragon)

Further we discuss the royalties on the Los Azules copper property and on revenues from Paragon.

LOS AZULES – 1.25% NSR ROYALTY

McEwen owns a 1.25% NSR royalty on McEwen Copper’s Los Azules copper project, in addition to its 46.3% equity interest in McEwen Copper.

The 2025 Feasibility Study outlines a 21-year mine life at Los Azules, with a 22-year operating period. Average annual production is approx. 204,800 tonnes copper cathode during the first five years. With a C1 cash cost of $1.71/lb copper, Los Azules stands in the second lowest quartile of global copper production costs.

The project also has the potential for a further 33-year operating period under the PEA-level Nuton case. Together, the initial operating period and the potential Nuton extension could provide 55 years of operations. The Nuton case is preliminary in nature and is not supported by Mineral Reserves.

Based on the 2025 Feasibility Study, the initial-case royalty is estimated at base case $4.35/lb copper. The potential royalty from the Nuton extension is estimated at $4.80/lb copper. Both amounts represent nominal, undiscounted pre-tax royalty cash flow.

Los Azules ROYALTY ECONOMICS

Nominal Undiscounted Pre-Tax Royalty Cash Flow

Initial 22-year operating period
At base case $4.35/lb Cu $389.5M

Potential 33-year Nuton extension
At base case $4.80/lb Cu $633.5M

Combined projected royalty cash flow
At $6.50/lb Cu ~$1.4B

LOS AZULES ROYALTY SENSITIVITY TO COPPER PRICE

The value of McEwen’s Los Azules royalty increases with the copper price. The sensitivity chart below illustrates projected nominal, undiscounted pre-tax royalty cash flow for the initial 22-year operating period and the potential 33-year Nuton extension across a range of copper prices.

At $6.50/lb copper McEwen’s royalty is projected to generate approx. $584M from the initial case and approx. $860M from the potential Nuton extension, for a combined undiscounted pre-tax royalty cash flow of approx. $1.4B.

Related Information: Los Azules Project | 2025 Feasibility Study | Q2 2026 Results

ABOUT PARAGON

McEwen is the largest shareholder of Paragon, with a 27.3% interest in the publicly listed company.

Paragon provides geochemical laboratory services to mining clients across North America and is deploying PhotonAssay™ technology, a rapid, accurate and non-destructive assay method for gold, silver and base metals. Compared with traditional fire assay, it offers faster turnaround and environmental and safety advantages.

McEwen believes PhotonAssay™ is poised to become an industry standard for precious and base metal assaying, supporting faster data-driven exploration decisions.

PARAGON MOU –
3% GROSS REVENUE ROYALTY OPPORTUNITY

In July 2026, McEwen entered into a Memorandum of Understanding (MOU) with Paragon to develop advanced laboratory services, including PhotonAssay™ technology, initially at the Gold Bar Mine Complex in Nevada.

The MOU also considers establishing future PhotonAssay™ laboratory services at the Fox Complex in Timmins and El Gallo in Mexico.

Under the MOU, Paragon would grant McEwen a 3% royalty on gross revenues generated by the laboratories from third-party clients.

The royalty opportunity complements McEwen’s strategic equity investment in Paragon and the contemplated deployment of advanced assay technology across McEwen’s operating portfolio.

Related Information: Paragon Strategic Investment | Q2 2026 Results