MAY 30, 2022, TORONTO, ON – Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV: STRR, OTCQX: STRFF) is pleased to report its financial results for the quarter ended March 31, 2022. All amounts are in U.S. dollars unless otherwise indicated.

Alex Pernin, Chief Executive Officer of Star Royalties, commented: “During the first quarter of 2022, Elk Gold Mine commenced production, while our Keysbrook royalty continued to outperform and exceed our cash flow expectations. We announced a strategic investment from Agnico Eagle, a gold mining giant and a global ESG leader, into our pure-green subsidiary, Green Star. This allowed us to immediately pursue a fourfold expansion of our flagship regenerative agriculture royalty in partnership with Bluesource, North America’s largest and most reputable carbon offset developer and marketer. We look forward to continuing the momentum into what should be a catalyst-full 2022.”

Q1 2022 Corporate and Financial Highlights

• Quarterly revenue increased 47% over the prior-year period
• Elk Gold Mine commenced ore production and delivery to New Gold’s New Afton processing plant
• Green Star expanded its existing carbon offset credit royalty on the Elizabeth Metis Settlement Forest
• Green Star acquired a royalty on diesel displacement company, MOBISMART
• Star Royalties announced a strategic investment by Agnico Eagle into Green Star

Summary of Q1 2022 Financial Results

For complete details, please refer to the Audited Consolidated Financial Statements and associated Management Discussion and Analysis for the year ended March 31, 2022, available on SEDAR at sedar.com or on the Company’s website at starroyalties.com.

Corporate Developments

On March 31, 2022, the Company announced a non-brokered private placement of 15,384,620 shares of its subsidiary Green Star Royalties Ltd. (“Green Star”), at a price of CAD$1.00 per Green Star class A share for total gross proceeds of CAD$15,384,620. The transaction closed on May 30, 2022, and Green Star is now owned 61.9% by the Company, 35% by Agnico Eagle Mines Limited (“Agnico Eagle”) (TSX, NYSE: AEM) and 3.1% by the Company’s management team and Board of Directors.

Significant Portfolio Updates

Elk Gold Project

On February 3, 2022, Gold Mountain Mining Corp. (“Gold Mountain”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA) announced that it had completed its first delivery of ore to New Gold Inc.’s (“New Gold”) (TSX, NYSE American: NGD) New Afton processing plant. Under its ore purchase agreement, Gold Mountain will deliver to New Gold 70,000 tonnes of high-grade ore per annum in years 1 to 3 and then up to 350,000 tonnes per annum in years 4 to 11. The metal payable split from the ore purchase agreement is 89% to Gold Mountain and 11% to New Gold.

On February 15, 2022, Gold Mountain announced the discovery of a new high-grade gold system in the Elusive Zone, located 5km southwest of the Siwash North mineral resource. The diamond drill intercepts, including hole SND21-051 with 2.07m grading 51.15 g/t Au, confirmed the presence of multiple high-grade zones.

On March 22, 2022, Gold Mountain announced that it had received payment for its first month of ore delivery to New Gold.

On April 21, 2022, Gold Mountain announced the closing of its bought deal public offering for aggregate gross proceeds of C$18.5 million.

Copperstone Gold Project

On April 28, 2022, Sabre Gold Mines Corp. (“Sabre Gold”) (TSX:SGLD, OTCQB: SGLDF) announced that Mike Maslowski had been appointed Vice President, Chief Operating Officer. Mr. Maslowki is a geological engineer with a career spanning more than 40 years of varied experience in resource exploration and management of mining operations in diverse parts of the world.

Sabre Gold also provided an update on the financing and status of its Copperstone project. Progress continues to advance on discussions with potential lenders. The plant layout and flowsheets with associated capital and operating cost estimates had been completed, while detailed engineering was estimated at 70% completion, and metallurgical testing was in final stages. All capital and operating expenses were reviewed by way of further detailed engineering and have been incorporated into an updated discounted cash flow model. The mine plan indicates annual production of approximately 40,000 to 45,000 ounces per annum with favourable economics, and includes future expected conversion of additional resources based on the open extent nature of both the Copperstone and Footwall zones.

Green Star Developments

Regenerative Agriculture Carbon Program

On April 11, 2022, Green Star announced a fourfold expansion of its agreement with Blue Source, LLC (“Bluesource”), to create premium, verified carbon offset credits that will reward the adoption of regenerative agriculture practices by North American farmers. Under the amended agreement, Green Star will be financing a regenerative agriculture carbon program for a total contribution of $20.6 million in cash. These funds will be available to growers through Locus Agricultural Solutions’ (“Locus AG”) CarbonNOW® program and Locus AG will be recruiting growers under this project until a total of 1,320,000 acres of farmland across the United Sates have been adopted into the program. Green Star expects to generate cash flow equivalent to over 200,000 attributable carbon offset credits in 2024, and increasing to over 400,000 attributable carbon offset credits per annum starting in 2025. Initial funding of $5 million is expected to commence in the second quarter of 2022, with the remaining $15,625,000 to be invested in 2023.

Green Star Focus and Outlook

Management is committed to funding sustainable environmental solutions for a carbon neutral economy and continues to view ESG-related investments as a highly scalable business model with attractive returns. The Company’s innovative green royalty model, numerous origination opportunities, and the superior potential returns, have led to the creation of its Green Star subsidiary in October 2021, with the sole purpose to accelerate the growth of its green portfolio.

A more rapid build-out of the green investment strategy through Green Star has allowed the Company to maximize its strong relationships and first-mover advantage in carbon offset credit and ESG-related investments. Since its creation, Green Star has actively expanded its royalty portfolio and increased market awareness through:

• Creation of a regenerative agriculture carbon program with Bluesource and Locus AG in December 2021;
• Threefold expansion of its existing carbon offset credit royalty on the Elizabeth Metis Settlement Forest in January 2022;
• Acquisition of a royalty on diesel displacement technology company, MOBISMART, in January 2022;
• Announcement of a strategic investment by Agnico Eagle in March 2022;
• Fourfold expansion of its flagship regenerative agriculture program in April 2022.

With the closing of the private placement, Green Star’s strategic relationship with Agnico Eagle and partnership with Bluesource uniquely position it to become a quality leader in creating premium carbon offset credits from North American nature-based carbon projects. Green Star will continue to originate projects with a fundamental focus on structural alignment with its stakeholders, as demonstrated by its existing First Nations, Indigenous, and farming community partners.

Star Royalties’ current vision is to continue using existing management and infrastructure to grow Green Star at a minimal cost as a private subsidiary and, subject to market conditions, unlock additional value when an appropriate public market valuation is achieved.