Star Royalties Reports Audited Financial Results for 2024

(TheNewswire)

April 30, 2025, TORONTO, ON – TheNewswire - Star Royalties Ltd. (“ Star Royalties ”, or the “ Company ”) (TSXV: STRR, OTCQX:STRFF) today reported its financial results for the year endedDecember 31, 2024, as well as provided an update on its mining royaltyportfolio and its Green Star Royalties Ltd. (“ Green Star ”) joint venture. Allamounts are in U.S. dollars, unless otherwise indicated.

2024 Financial and CorporateHighlights

• Outlook for the Company’s mining royalty portfoliohas improved considerably, both due to asset de-risking and thesteadily rising gold price, currently exceeding US$3,200/oz.

• The Copperstone Gold Mine ( Copperstone ”) wasacquired by Minera Alamos Inc. (“ Minera Alamos ”) (TSXV: MAI, OTCQX: MAIFF) ,resulting in an accelerated pathway to production in 2026, withmultiple development and construction catalysts expected over the next12 months.

• Upcoming initiatives at Gold Mountain Mining Corp.( Gold Mountain ”) (TSX: GMTN, OTCQB: GMTNF, FRA:5XFA) include resumption of mining activitiesand resource expansion drilling in the Bullion Zone, as well as anupdated National Instrument 43-101 compliant mineral resource estimateand a Preliminary Economic Assessment ( PEA ”), anticipatedfor the second half of 2025.

• 2024 revenues were 14% lower than in the prior year,due to continued operational challenges at the Elk Gold Project( Elk ”)while Keysbrook continued to deliver consistent operatingresults.

• Green Star acquired a portfolio of U.S. forest carbonoffset royalties from NativState LLC ( NativState ”) andreceived its first carbon offset delivery, with monetization ofoffsets underway.

• Worsening carbon market conditions and a deterioratingCarbonNOW risk/return profile resulted in thedecision to terminate future capital commitments to the carbon farmingprogram.

Summary of Annual FinancialResults

For complete details, please refer to the AuditedConsolidated Financial Statements and associated Management Discussionand Analysis for the year ended December 31, 2024, available on SEDAR+at sedarplus.c a or on theCompany’s website at starroyalties.com .

Alex Pernin, Chief Executive Officer of Star Royalties, commented:“2024 was a mixed year for Star Royalties. Our mining royaltyportfolio continued to de-risk in a record-breaking gold priceenvironment. With Minera Alamos acquiring Sabre Gold, Copperstone nowhas a concrete pathway to production in 2026. We also expect severalupcoming de-risking events, including construction updates atCopperstone, a return to normal operations at Elk, and continued solidperformance from Keysbrook. At the same time, our Green Star jointventure has been impacted by turbulence and uncertainty in carbonmarkets, and we are disappointed at having had to terminate fundingfor the CarbonNOW program, which was decided upon with the sole goalof minimizing risk while preserving capital and shareholder value. Weremain fully committed and longer-term bullish on Green Star and itsdecarbonization investment mandate, which includes cleantechopportunities and continues to be supported by its significant jointventure partners.”

“We look forward to providing our shareholders with tangible updatesover the course of 2025 as we progress towards generating meaningfulfree cash flow for Star Royalties next year. We note that bothCopperstone’s de-risking and materially higher gold priceenvironment have not been reflected in our share price, and we believethis valuation gap should close as all our key mining royalty assetsadvance towards generating revenue in 2026.”

Significant Portfolio Updates

Mining Royalty Portfolio Updates

Keysbrook Mine

Star Royalties owns a 2% minerals royalty on theKeysbrook Mine, an open pit mineral sands (leucoxene, zircon) minelocated 70 km south of Perth, WA, Australia, and in operation sincelate 2015. 2024 operating results at Keysbrook were in-line withexpectations, with full-year 2024 royalty income of $783,585 beinglargely unchanged from $785,254 recorded in 2023.

Copperstone Gold Mine

On October 28, 2024, Sabre Gold Mines Corp.(“ Sabre Gold ”) announced that it had entered into a definitiveagreement to be acquired by Minera Alamos. Following the closing ofthe transaction on February 6, 2025, the Company’s holding of13,842,4136 shares of Sabre Gold were converted into 9,592,792 sharesof Minera Alamos. The Company's 4% gold stream pursuant to the goldstreaming agreement on Copperstone remained unchanged following theclose of the transaction.

On February 6, 2025, Minera Alamos announced thatCopperstone became its priority development project and that they hadinitiated engineering efforts aimed at fast-tracking Copperstone’sdevelopment, engaged with lenders regarding finance facilities andexpanded their technical team. Copperstone’s permits are currentlyin place for the restart of mining operations and Minera Alamosanticipates production to commence in mid-2026.

On March 12, 2025, Minera Alamos re-issuedCopperstone’s PEA. The PEA demonstrated potentially robust post-taxeconomics which benefitted from pre-existing infrastructure on surfaceand underground, as well as significant tax assets and a recentlyreduced royalty encumbrance on the project. The PEA supports theconstruction and development of a high-grade gold underground miningoperation at Copperstone producing an average of 40,765 payable ouncesof gold per year over its initial approximate six-year mine life. ThePEA does not address or incorporate ongoing work and trade-off studiescurrently being evaluated by Minera Alamos.

Elk Gold Mine

Gold Mountain announced on December 10, 2024, that itclosed a non-brokered private placement of flow-through common sharesfor gross proceeds of C$1,210,000. On March 17, 2025, Gold Mountainprovided an operational update for the quarter ended January 31, 2025.During this period, it continued to face operational challenges at Elkand reported mining a total of 10,055 tonnes of ore from the SiwashNorth Pit with an average delivered ore grade of 1.23 g/t gold.Full-year 2024 royalty income from Elk was $27,656 compared to$155,245 in the 2023 period. At year-end 2024, an impairmentassessment was conducted in accordance with International AccountingStandard 36 to determine the recoverable amount of the Elk royaltyinterest. In assessing the carrying value of the Elk royalty based onrecent market information available, the Company recognized animpairment loss of $2.0 million for the year ended December 31, 2024.A reassessment of the recoverable amount of the Elk royalty will beundertaken upon future changes in circumstances, such as the filing ofan updated Technical Report.

Gold Mountain indicated that it continues to preparefor additional diamond-drill exploration, including progressing theresource certainty of the Siwash North Pit through infill drilling.They continue to advance exploration, environmental and technical workwith a focus on expanding the mine permit. Subsequent to its reportingperiod, Gold Mountain staffed an internal geological and engineeringteam to support exploration and development activities, as well ashired additional crews at Elk to continue mining activities andcommenced resource expansion drilling in the Bullion Zone, locateddirectly north of the currently active Siwash Pit. It also initiatedpreliminary activities to generate an updated National Instrument43-101 compliant mineral resource estimate and an updated PEA,anticipated for the second half of 2025.

Green Star JointVenture (45.9% interest)

Green Star continues to operate as a joint venturebetween Star Royalties, Agnico Eagle Mines Limited (“ Agnico Eagle ”)(NYSE, TSX: AEM), Cenovus Energy Inc. (“ Cenovus ”) (NYSE,TSX: CVE), and certain members of Star Royalties’ and Green Star’smanagement teams and Boards of Directors (collectively,“ Management ”). The Company retains ownership of approximately 45.9% ofGreen Star’s common shares, Agnico Eagle and Cenovus each ownapproximately 25.9% of the common shares and the remaining 2.3% isowned by Management.

Carbon Markets Update and Green Star Strategy

Over the past several quarters, North American voluntary andcompliance carbon markets have experienced considerable headwinds,resulting in broad weakness across both carbon credit pricing anddemand. Recent developments negatively impacting carbon marketsinclude the U.S. removal from the Paris Agreement, executive ordersagainst certain states’ climate policies, significant economic andgeopolitical uncertainty related to potential tariffs, as well asshifting trends in carbon credit marketing practices, withdirect-to-developer transactions progressively becoming more commonover traditional intermediary transactions. In addition to reducedcarbon pricing and demand, these carbon market uncertainties haveresulted in a recent insolvency announcement by a sizeable carboncredit offtaker, as well as the postponement of certain industryconferences.

In the voluntary carbon markets, nature-based solutions carbon offsetsexperienced a 10% price decrease overall during the first quarter of2025. Total carbon offset issuances in Q1 2025 declined by 20%year-over-year to 61.2 million, the lowest Q1 volume since 2020,primarily due to a significant (33.5%) decrease in forestry issuances.Nature-based removal offsets comprised 2.9% of total issuances butrepresented 12.1% of total retirements, reflecting continued corporatepreference for removals.

There have been several meaningful offtake announcements and climatecommitments by major corporations in the recent months. However,overall worsening market conditions have had an adverse impact on therisk/return profile of several of Green Star’s assets, requiring areassessment of their economic feasibility relative to Green Star’sinternal rate of return requirements. As a result of Green Star’smanagement review and necessary adherence to prudent capitalallocation and risk management practices, Green Star decided toterminate future capital commitments to the CarbonNOW ® carbon farming program. Additional details andrationale for the decision are described in the Regenerative Agriculture Carbon FarmingProgram section below and in the Company’s press release“Star Royalties Provides Updates on Green Star Royalties Portfolioand Corporate Strategy”, dated April 28, 2025.

The decision to terminate Green Star’s involvement inthe CarbonNOW program was unanimously supported by the Company’sjoint-venture partners, with a reaffirmed resolve to allocate GreenStar’s remaining capital to high-quality, de-risked, cash-flowingroyalties on decarbonization projects and to grow Green Star prudentlyinto a long-term decarbonization investmentfirm, with a continued strict focus on robust cleantech and premiumcarbon credit opportunities in top-tier jurisdictions.

Green Star continues to represent an important source of future valuecreation for Star Royalties and Management believes the joint ventureis well positioned for an eventual turn in sentiment, with continuedsupport from its major partners. In addition, the Company continues tobelieve the royalty model can be an excellent fit for the carbonmarkets and decarbonization sectors.

Regenerative Agriculture Carbon Farming Program

Green Star’s regenerative agriculture investment inthe CarbonNOW® farming program was a partnership with LocusAgricultural Solutions® (“Locus”) that incentivized the adoptionof regenerative agriculture practices by North American farmers on upto 1.32 million acres of farmland. Green Star had a 30% gross revenueroyalty on the carbon program as of December 31, 2024.

Subsequent to the reporting period, in April 2025,following multiple months of program and carbon sequestration rateanalysis and extensive consideration, Green Star and its joint venturepartners reached an agreement to terminate future capital commitmentsto the CarbonNOW program due to a deteriorating return profile and aconclusion that both known and unknown risks had become unacceptablyelevated and the program could not be sufficiently restructured towarrant additional investment. The determination to terminate futurefunding was based on various program-level complexities andunderperformances as compared to the original investment case, certainrevisions and inherent program inflexibility relating to the VerraRegistry’s methodology quantification, as well as a weakenedfinancial outlook of the program, partly driven by CarbonNOW’sofftaker for the program’s first 500,000 carbon offsets, Catona Carbon Solutions, LLC, filing for Chapter 11 bankruptcy protection on March 30,2025.

Following termination of the program, Green Star has nofurther funding obligations nor investment interest in CarbonNOW.Termination of Green Star’s CarbonNOW program resulted in anattributable equity loss of $25.3 million to Star Royalties for the2024 period, however, Star Royalties’ attributable portion ofcapital committed to the program since inception was $4.9 million.

NativState Improved Forest Management Carbon OffsetPortfolio

In the second quarter of 2024, Green Star acquiredseveral gross revenue royalties from NativState on a carbonoffset-issuing portfolio of Improved Forest Management(“ IFM ”) projects in the southeastern United States. NativStateis an Arkansas-based forest carbon project developer focused onaggregating small-to-medium forest landowners into IFM projects beingdeveloped under the American Carbon Registry (“ ACR ”). Theseroyalties are expected to deliver voluntarycarbon offsets to Green Star over a 20-year period, with the firstapproximately 120,000 carbon offsets received from the NativStateinvestment in 2024.

During the fourth quarter of 2024, Green Star continuedto engage with multiple brokers and intermediaries within thevoluntary carbon markets, including major banks and commodity traders,to monetize already-issued avoidance and removal offsets from ProjectACR 783. To date, a large portion of the removal offsets in GreenStar’s inventory have been sold, along with a small portion of theavoidance offsets. Efforts to monetize the remainder of avoidanceoffsets are ongoing, with Green Star’s carbon offsets currentlyparticipating in several active bids via intermediaries. Green Star isalso exploring other monetization strategies, such as long-termofftakes with corporate partners, as well as participating in directsales through NativState.

In addition to Project ACR 783, Green Star’sinvestment financed the conservation of approximately 60,000 acres offorestland to be enrolled by NativState and registered as ACRprojects. The first two of these additional projects are Project ACR912 and Project ACR 913, which are currently being prepared forvalidation and verification under ACR’s methodology Improved ForestManagement (IFM) on Non-Federal U.S. Forestlands version 2.1. Thislatest version of the methodology is more rigorous, resulting in amore precise and conservative carbon crediting baseline, reduced riskof over-crediting by the project, and increased confidence in theintegrity of the carbon offsets. Additional information on ProjectsACR 783, ACR 912 and ACR 913 can be found on the Company’s websiteat NativState - StarRoyalties .

MOBISMART

Green Star’s 2.5% gross revenue royalty on MOBISMART,a private operating company that specializes in mobile solar powergeneration systems with integrated battery storage and dieseldisplacement capabilities, has generated royalty income for Green Starsince the beginning of 2023. MOBISMART continues to advance itscommercialization initiatives focused on the U.S. telecommunications,renewable energy and defense sector and, in 2025, anticipates strongrevenue growth to stem from its wind, telecommunications andconstruction sectors.

Elizabeth Metis Settlement Forest

Green Star owns a 40.5% gross revenue royalty on thesale of carbon credits from forested lands located in Elizabeth MetisSettlement (the “ EMS ForestProject ”) in Alberta. Forest carbon baselineinventory measurement activities at EMS Forest Project are expected tobe completed by Anew Climate LLC (“ Anew ”) and localIndigenous representatives towards the end of 2025. The Government ofAlberta is currently in the process of developing the AlbertaTechnology Innovation and Emissions Reduction Regulation(“ TIER ”) Improved Forest Management Protocol. Publicconsultations on the draft protocol are expected to take place during the second half of 2025, with the finalprotocol expected by the end of 2025. Similarly, ACR is alsoundertaking a review of its Improved Forest Management (IFM) onCanadian Forestlands methodology, with an expectation to release theupdated protocol by the end of 2025. EMS Forest Project can bedeveloped either under TIER or ACR, with Anew to determine the mosteconomically viable pathway to be pursued once the forest carboninventory measurement is completed. First issuance of carbon creditsfrom EMS Forest Project is forecasted by Anew for later in2027.

Lac Seul First Nation Forest Carbon Project

Green Star owns a 16% gross revenue royalty on Big Tree CarbonInc.’s (TSXV: BIGT) carbon credit revenue share from the Lac SeulFirst Nation Forest Carbon Project (“ LSFN Forest Project ”). Due to the lack of visibility intoCanada’s Greenhouse Gas Offset Credit System and the lack ofnear-term milestones at LSFN Forest Project, Green Star does not see aviable path forward toward carbon credit generation from thisinvestment at this time. Green Star will provide future updates onLSFN Forest Project if an actionable development plan becomesavailable.

CONTACT INFORMATION

For more information, please visit our website at starroyalties.com orcontact:

About Star Royalties Ltd.

Star Royalties Ltd. is a precious metals and carbon credit royalty andstreaming company. The Company’s objective is to provide wealthcreation by originating accretive transactions with superior alignmentto both counterparties and shareholders. The Company offers investorsexposure to precious metals and carbon credit prices, as well ascleantech and other decarbonization projects through its pure-greenjoint venture, Green Star Royalties Ltd.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute“forward-looking statements”, including those regarding theRoyalties transaction, future market conditions for metals, mineralsand carbon offset credits, future capital raising opportunities andcommitments, timing with respect to the carbon offset issuances underthe NativState projects, demand and growth of the MOBISMART products,timing of the updated ACR protocols with respect to IFM projects. andthe future business growth and cash flow of the Company and GreenStar. Forward-looking statements are statements that address ordiscuss activities, events or developments that the Company or GreenStar expects or anticipates may occur in the future. When used in thisnews release, words such as “estimates”, “expects”,“plans”, “anticipates”, “will”, “believes”,“intends” “should”, “could”, “may” and other similarterminology are intended to identify such forward-looking statements.Forward-looking statements are made based upon certain assumptions andother important factors that, if untrue, could cause the actualresults, performances or achievements of Star Royalties and Green Starto be materially different from future results, performances orachievements expressed or implied by such statements. Forward-looking statements should not be read asa guarantee of future performance or results and will not necessarilybe an accurate indication of whether or not such results will beachieved.

A number of factors could cause actual results,performances or achievements to differ materially from suchforward-looking statements, including, without limitation, changes inbusiness plans and strategies, market and capital finance conditions,ongoing market disruptions caused by the Ukraine and Russian conflict,metal and mineral commodity price volatility, discrepancies betweenactual and estimated production and test results, mineral reserves andresources and metallurgical recoveries, mining operation anddevelopment risks relating to the parties which produce the metals andminerals Star Royalties will purchase or from which it will receiveroyalty payments, carbon pricing and carbon tax legislation andregulations, risks inherent to the development of the ESG-relatedinvestments and the creation, marketability and sale of carbon offsetcredits by the parties, the potential value of mandatory and voluntarycarbon markets and carbon offset credits, including carbon offsets,the carbon credits to be provided by NativState, risks related to theIFM projects, changes in legislation and policies including affectsrelated to the ACR, risks inherent to royalty companies, title andpermitting matters, operation and development risks relating to theparties which develop, market and sell the carbon offset credits fromwhich Green Star will receive royalty payments, changes in crop yieldsand resulting financial margins regulatory restrictions, activities bygovernmental authorities (including changes in taxation), currencyfluctuations, the global, federal and provincial social and economicclimate in particular with respect to addressing and reducing globalwarming, natural disasters and global pandemics, economic andgeopolitical uncertainty related to tariffs dilution, risk inherent toany capital financing transactions, risks inherent to a possible GreenStar go-public transaction, the nature of the governance rightsbetween Star Royalties, Cenovus Energy Inc. and Agnico Eagle MinesLtd. in the operation and management of Green Star and competition,the ability to raise any additional funds into Green Star. Theserisks, as well as others, could cause actual results and events tovary significantly. Accordingly, readers should exercise caution inrelying upon forward-looking statements and the Company undertakes noobligation to publicly revise them to reflect subsequent events orcircumstances, except as required by law.

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