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Sailfish Royalty Corp. (TSXV: FISH) (OTCQX: SROYF) is pleased to announce that that it has entered into a loan agreement with Mako Mining  dated August 27, 2021 (the "Loan Agreement"), pursuant to which the Company agreed to provide a US$8 million unsecured gold-linked term loan (the "Term Loan") to Mako.

The proceeds of the Term Loan will be used by Mako to refinance existing short-term debt, specifically, the repayment of all outstanding principal and accrued interest totaling approximately US$6.2 million owing to Nebari Resources Credit Fund I, LP ("Nebari") and approximately US$1.8 million of principal owing to funds managed by Wexford Capital LP ("Wexford").

As compensation for making the Term Loan available to Mako, Sailfish shall be entitled to certain cash compensation based on the prevailing price of gold (the "Lender Compensation"). Mako will make 24 monthly cash payments to Sailfish on account of the principal amount of the Term Loan and the Lender Compensation, which shall equal the cash equivalent of 205 ounces of gold multiplied by the preceding month's average gold price with a floor of US$1,750 and a ceiling of US$2,000 pursuant to the terms of the Loan Agreement. The Term Loan does not have any operational negative covenants or balance sheet covenants, and there are no restrictions on dividends and/or share repurchases.

Upon the occurrence of an event of default under the Loan Agreement, all outstanding amounts, including applicable premiums become immediately due and payable and interest on such amounts will accrue at a rate of 12% per annum, accruing daily and payable to the Company on demand.

The Company has sufficient cash on hand that it does not anticipate the advance of the Term Loan to have a material effect on the Company's business and affairs.

Cesar Gonzalez, Chief Executive Officer of Sailfish states that, "this gold-linked loan is a win-win for both companies. Sailfish receives an attractive yield with downside protection and upside potential that supports the Company's plans to begin paying a dividend; while Mako is able to refinance its existing short-term debt and pursue a more aggressive exploration budget, especially at Las Conchitas and surrounding targets where Sailfish has a 2% NSR."

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