Altius Reports Q2 Royalty Revenue of $17.9M and Increases Guidance, Release of Fiscal Q2 Financial Results December 12, 2017

ST. JOHN’S, Newfoundland and Labrador–(BUSINESS WIRE)–Altius Minerals Corporation (“Altius” or the “Corporation”) (TSX: ALS)
reports that it will release financial results for its second quarter
ended October 31, 2017 on Tuesday, December 12, after the close of
market.

Altius expects to report attributable royalty revenue1 of
approximately $17.9 million for the second quarter, which is up 19% from
Q1 and 81% over the prior year corresponding period.

In light of the strong first half performance, with $33 million in
attributable royalty revenue, Altius is increasing its 12-month guidance
to between $67 and $72 million compared to the original guidance this
year of $55 million. However, as a result of the previously announced
change in the fiscal year end to December 31, this year will be an
8-month period with new guidance to be issued in January for the newly
coinciding 2018 fiscal and calendar year.

Base metal royalty revenue increased by 18% and 75% on a quarter over
quarter and prior year quarterly basis respectively. The 777 royalty and
Chapada copper stream both benefitted from continuing improvement in
base metal prices. The 777 mine experienced a paste backfill maintenance
issue that slowed production during the quarter but that has since been
rectified with production expected to return to normal by year end.
Chapada copper production was higher than plan owing to better grades
and throughput and the mine operator has reported positive results with
respect to ongoing plant investments designed to improve metal
recoveries while also continuing to consider the feasibility of further
expanding the operation.

Potash revenue was relatively consistent on a quarter over quarter basis
(-4%) but up strongly (116%) relative to the prior year corresponding
period. Most of this benefit is the result of increasing production
volumes at Rocanville, and to a lesser extent at Esterhazy, as the
operator continues to preferentially ramp up production at its lower
cost, recently expanded mines. Potash prices also continued to improve
modestly during the current year, after bottoming in 2016, while global
potash demand in 2017 is now widely expected to reach a new all-time
annual record.

Immediately subsequent to the quarter end, Altius acquired additional
mineral land areas and related royalty interests at Rocanville from
McChip Resources Inc. for a total of $8 million in up-front and future
payments. These lands cover newly developed production areas within the
mine that support its recently commissioned nameplate capacity expansion
from 2.5 to 6.5 million tonnes per year.

Metallurgical coal revenue was down on both a quarter over quarter
(-23%) and prior year quarterly basis (-46%) due to lower production
volumes at Cardinal River and the timing of sales relative to the
volatile pricing environment that has characterized the commodity over
the past year.

Thermal coal revenue was up 8.2% compared to the prior quarter and 33%
compared to the fiscal second quarter of last year mainly on the
strength of higher royalty paying production volumes at Sheerness and
Genesee.

During the quarter, the Corporation increased its ownership interest in
Labrador Iron Ore Royalty Corporation (LIF) and now holds approximately
5% of the issued and outstanding shares. LIF is mandated as a passive
flow-through vehicle for royalties and equity income related to its 7%
royalty and 15.1% equity position in the Iron Ore Company of Canada
operations in Labrador, Canada. Altius acquired the shares in the belief
that the market value of LIF was less than that of its royalty and other
interests in IOC making the purchase a cost effective, albeit indirect,
way to add production stage iron ore to its diversified royalty
portfolio. LIF received, and distributed, significantly higher royalty
and equity based cash flows during the year on the strength of higher
realized prices for its premium quality pellets and concentrates and
also from improved production volumes and sales. Our share of LIF
distributions amounted to $3.0 million during the quarter.

Champion Iron Ore successfully closed a series of project financing
initiatives, totalling $300 million, related to the start-up of its
Bloom Lake iron ore mine in Quebec during the quarter. Altius holds a
$10 million, 8% debenture that is convertible at its option into
Champion common shares at $1 per share or, if not repaid by the second
anniversary, into a 0.21% gross overriding royalty in the Bloom Lake
project. Champion is working to bring Bloom Lake into production during
the first half of 2018 and it intends to produce 7.4 million tonnes per
year of high grade and premium quality iron ore concentrate during a
21-year mine life. http://www.championiron.com/champion-iron/2017/champion-iron-announces-completion-of-bloom-lake-mine-feasibility-study/

In late October the U.S. Environmental Protection Agency (EPA) issued a
draft underground injection control (UIC) permit for Excelsior Mining
Corp.'s Gunnison copper project, which remains subject to a 30-day
public comment period. The UIC permit is the last of the three key
permits required to enter into production; earlier this year, the
Arizona Department of Environmental Quality issued an amended aquifer
protection permit for the Johnson camp mine and an aquifer protection
permit for the Gunnison copper project. Altius holds a 1.0% gross
revenue royalty related to Gunnison and an option to increase its
interest to 1.5% following a construction decision, as well as a first
right to additional royalty and stream financings. http://www.excelsiormining.com/index.php/projects

Subsequent to quarter-end, Alderon Iron Ore issued an updated
Preliminary Economic Assessment for its Kami iron ore project in
Labrador, Canada. http://www.alderonironore.com/index.php/news/2017/417-.
Altius holds a 3% gross sales royalty on the Kami project and
approximately 25% of Alderon’s common shares. The updated PEA showed
robust economics for the project, particularly in light of a structural
improvement in the market premiums paid for high-grade and low-impurity
concentrates of the type that Kami is modelled to produce.

During the quarter, the Corporation announced the acquisition of a 1.35%
gross sales royalty and an option on a further 0.5% GSR on Wolfden
Resources Corporation’s recently acquired Pickett Mountain base metals
project in Maine, USA for US$6 million. The royalty is partially secured
with ancillary timber rights attached to the property and is convertible
at our election under certain circumstances into a similar royalty on
Wolfden’s Orvan Brook project or Wolfden common equity. Concurrent with
the royalty financing, the Corporation has also subscribed for
14,200,000 equity units at C$0.25 per unit, which includes a half
warrant exercisable at C$0.35 for 5 years. Pickett Mountain features
very high grade zinc-lead-copper-silver mineralization in historic drill
holes and Wolfden intends to carry out an aggressive work program to
validate the historic results, prepare a NI 43-101 compliant resource
estimate and explore for additional mineralization. http://www.wolfdenresources.com/files/News-Nov16-2017.pdf

A conference call will be held on Wednesday, December 13, 2017, starting
at 9:00 a.m. EST to further discuss the second quarter and first half
performance. To participate in the conference call, use the following
dial-in numbers and conference ID, or join the webcast on-line as
detailed below.

The call will be webcast and archived on the Corporation’s website for a
limited time.

1 Attributable royalty revenue is a non‐IFRS measure and does
not have any standardized meaning prescribed under IFRS. For a detailed
description and examples of the reconciliation of this measure, please
see the Corporation’s MD&A disclosures for prior quarterly and annual
reporting periods, which are available at http://altiusminerals.com/financial‐statements.

About Altius
Altius’ directly and indirectly held
diversified royalties and streams generate revenue from 15 operating
mines. These are located in Canada and Brazil and produce copper, zinc,
nickel, cobalt, iron ore, potash and thermal (electrical) and
metallurgical coal. The portfolio also includes numerous pre-development
stage royalties covering a wide spectrum of mineral commodities and
jurisdictions. It also holds a large portfolio of exploration stage
projects which it has generated for deal making with industry partners
that results in newly created royalties and equity and minority
interests.

Altius has 43,187,291 common shares issued and outstanding that are
listed on Canada’s Toronto Stock Exchange. It is a member of both the
S&P/TSX Small Cap and S&P/TSX Global Mining Indices.

Forward-Looking Information

This news release contains forward‐looking information. The
statements are based on reasonable assumptions and expectations of
management and Altius provides no assurance that actual events will meet
management's expectations. In certain cases, forward‐looking information
may be identified by such terms as "anticipates", "believes", "could",
"estimates", "expects", "may", "shall", "will", or "would". Although
Altius believes the expectations expressed in such forward‐looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may
differ materially from those projected. Mining exploration and
development is an inherently risky business. In addition, factors that
could cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect decisions to
pursue mineral exploration on the relevant property and the ultimate
exercise of option rights, which may include changes in market
conditions, changes in metal prices, general economic and political
conditions, environmental risks, and community and non-governmental
actions. Such factors will also affect whether Altius will ultimately
receive the benefits anticipated pursuant to relevant agreements. This
list is not exhaustive of the factors that may affect any of the
forward‐looking statements. These and other factors should be considered
carefully and readers should not place undue reliance on forward-looking
information. Altius does not undertake to update any forward-looking
information contained herein except in accordance with securities
regulation.

Contacts

Altius Minerals Corporation
Chad Wells or Flora Wood,
1-877-576-2209