Ely Gold Royalties Inc. (fka ELYGF)

[ThSeeker]

CAUTION in order: Vancouver, British Columbia--(Newsfile Corp. - October 30, 2019) - Ely Gold Royalties Inc. (TSXV: ELY) (OTCQB: ELYGF) ("Ely Gold" or the "Company") is issuing this press release to address concerns raised by the TSX Venture Exchange (the "Exchange") regarding certain promotional activities.

In July 2019, the Company engaged National Inflation Association of Fort Lee, New Jersey ("NIA"), and Maiella Investment Holdings LLC, (collectively, the "Consultant") to provide investor relations services, including the production and publication of investor bulletins on the Consultant's https://inflation.us website, distribution of investor bulletins to the Consultant's e-mail list, and promotional posts via the Consultant's blogs and social media accounts (collectively, the "Agreement"). The Agreement was not filed with or accepted by the Exchange. In consideration of the Agreement, the Company paid the Consultant a one-time cash fee of US$30,000 for a 6-month contract.

The Company is retracting fifteen NIA articles dated August 1, 2, 5,19 and 30, as well as October 1, 22, 23, 24, and 28 in their entirety. These publications contained overly promotional statements inconsistent with the principles of factual and balanced disclosure pursuant to Exchange Policy and share price targets, revenue and other financial forecasts that failed to comply with National Instrument 51-102. While the Company does believe certain underlying factual information and technical analyses in the Consultant's publications were accurate, the Company does not endorse the share price, revenue and other financial forecasts that have been published by the Consultant and regrets not having exercised greater control over the manner and means by which the Consultant provided its services.

In light of these concerns, the Company has terminated its Agreement with the Consultant effective October 28, 2019. In addition, the Company has requested that the Consultant take down the online publications listed above and not publish any additional information, regarding Ely Gold.

Company management remains positive about the Company's outlook, including; (1) its continued progress toward closing the $6.0 million convertible debt financing announced on October 17, 2019; (2) the favourable exploration results reported by Wallbridge Mining Company Limited in its October 21, 2019 news release; and (3) Gold Resource Corp.declaring commercial production at its Isabella Pearl Mine in its October 7, 2019 news release. Shareholders and other Company stakeholders are encouraged to look to the formal disclosure record under the Company's issuer profile at www.sedar.com and on the Company's website at www.elygoldinc.com for material information regarding the Company.
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I believe Ely to be a solid investment but expect it to go slower than NIA promoted it. Need the exit of NIA follower that is now expect to end and dust to settle till we see how it begins to move forward again. GLTY