Orogen Royalties Announces Profitable Quarter and Strong Cashflow for Q2-2023

VANCOUVER, BC / ACCESSWIRE / August 28, 2023 / (TSXV:OGN)(OTCQX:OGNRF) Orogen Royalties Inc. ("Orogen" or the "Company") is pleased to report profitable financial results from its operations for the second quarter ended June 30, 2023.

Paddy Nicol, CEO of Orogen, commented: "We are happy to report another profitable quarter, supported by strong royalty revenue, a sustainable prospect generation business, and reduction in overhead and G&A expenses. This resulted in a 178% increase in cashflow from operations from the previous quarter which further strengthens the company's balance sheet. We look forward to continuing strong revenue performance in H2 with First Majestic increasing production at Ermitaño by 27%. During the quarter, we have continued to grow our mineral properties and royalty assets through prospect generation activities and acquisitions. An estimated 28,000 metres (approximately $18 million) of partner funded drilling and exploration activities are planned on Orogen's properties in 2023. Low-risk exposure to discovery is at the core of Orogen's business model and exemplified by AngloGold's recent disclosure of an exploration target of 6 to 8 million ounces of gold for the Merlin zone¹ at the Silicon-Merlin project, where the company holds a 1.0% NSR royalty."

Q2 2023 Highlights

All amounts are in Canadian dollars unless otherwise stated.

• Net Income from Operations: Net income was $131,616 for the three-month period ended June 30, 2023, compared to a net loss of $648,635 for the same period in 2022. This resulted in a net income of $763,829 or $0.004 per share year to date (2022 - net loss $222,554 or $0.001 per share).
• Royalty Revenue: Royalty revenue of $1,178,941 was earned during the current period with 435 attributable gold equivalent ounces ("GEOs") sold at average price of US$1,976 per ounce, up 25% compared to the same period in 2022 and down 10% compared to the previous quarter.
• G&A Expenses: General and administrative expenses of $956,030 were incurred in the current period, up 9% compared to the same period in 2022 and down 36% compared to the previous quarter.
• Cash flow: Cash flow of $455,289 was generated from operating activities in the current period. Cash flow generated from operating activities, excluding changes in non-cash working capital, was $682,776, up 165% compared to the same period in 2022 and up 178% from the previous quarter.
• Working Capital: The Company has working capital of $16,796,224 at June 30, 2023 compared to $12,083,375 at the beginning of the fiscal year, an increase of $4,712,849. The Company has no long-term debt.

For complete details of the Company's financial results, please refer to the condensed interim consolidated financial statements and MD&A for the six-month periods ended June 30, 2023, and 2022. The Company's filings are available on SEDAR at www.sedar.com and on Orogen's website at www.orogenroyalties.com. Please also see non-IFRS Measures at the end of this news release.