May 25, 2023, TORONTO, ON – Star Royalties Ltd. (“Star Royalties”, or the “Company”) (TSXV: STRR, OTCQX: STRFF) is pleased to report its financial results for the quarter ended March 31, 2023. All amounts are in U.S. dollars, unless otherwise indicated.

Q1 2023 Corporate and Portfolio Highlights

• Quarterly revenues of $271,429, representing a 12% decline over the prior-year quarter due to lower mineral sands sales at Keysbrook.
• Quarterly net income of $69,539 was positively impacted by a $606,880 recognition of equity income from the Green Star Royalties Ltd. joint venture (“Green Star”).
• Increased quarterly revenue from the Elk Gold mine of $54,959 related to continued improvements in mined gold grades.
• Green Star’s flagship regenerative agriculture carbon farming program continued to see steady farmer enrollment and is in the process of listing under the Verra Registry.
• MOBISMART Mobile Off-Grid Power & Storage Inc. (“MOBISMART”) became the first cash flowing royalty for Green Star.

Alex Pernin, Chief Executive Officer of Star Royalties, commented: “During the first quarter of 2023, Keysbrook performed in line with internal expectations, while Elk Gold’s continued mined grade improvements resulted in higher royalty payments. Our majority-owned subsidiary, Green Star, is pleased to report that MOBISMART became its first cash flowing royalty as MOBISMART continues to execute on its cleantech sales pipeline across multiple industries. Green Star’s flagship regenerative agriculture program is undergoing listing under the Verra Registry, which should lead to several catalysts throughout this year. In addition, Green Star continues to evaluate capital raising opportunities to transact on its significantly expanded portfolio of carbon opportunities. Our team is working diligently and we believe 2023 will be a transformative year of unlocking value for our shareholders.”

Summary of Q1 2023 Financial Results

For complete details, please refer to the Condensed Interim Consolidated Financial Statements and associated Management Discussion and Analysis for the three months ended March 31, 2023, available on SEDAR at sedar.comor on the Company’s website at starroyalties.com.

Significant Portfolio Updates

Keysbrook Mine

Star Royalties owns a 2% minerals royalty on the Keysbrook Mine, an open pit mineral sands (leucoxene, zircon) mine located 70 km south of Perth, WA, Australia, and in operation since late 2015. Since Star Royalties acquired the royalty in late 2020, the Keysbrook Mine has delivered operating results ahead of the Company’s internal expectations. In the first quarter of 2023, royalty revenues from Keysbrook were $216,470, which was 30% lowercompared to the prior-year quarter due to lower mineral sands sales, but was in line with internal Q1 2023 expectations.

Elk Gold Mine

Gold Mountain Mining Corp. (“Gold Mountain”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA) continued ore mining operations and deliveries to New Gold Inc. (TSX, NYSE American: NGD) and has demonstrated continued grade profile improvements through the end of the current quarter. For the period ending March 31, 2023, Elk Gold benefited from continued month-over-month improvements in mined gold grades, with the highest grades to date reported in the month of March. Improved grades have been partially offset by lower ore throughput during the period, associated mostly with weather-related challenges. As a result of improving mined grades, which exceeded the last reported average mined grade of 5.5 g/t Au (in the quarter ending January 31, 2023), the quarterly royalty payment from the Elk Gold mine increased to $54,959. After the end of the first quarter, Gold Mountain entered into a C$3.3 million silver royalty on the Elk Gold mine and completed its final C$3 million property payment related to its original purchase of the Elk Gold mine. These respective developments provide a third-party validation of the Company’s value accretion since having acquired the royalty in September 2021 and enhance Gold Mountain’s financial position. Gold Mountain expects to release an updated Preliminary Economic Assessment (“PEA”) and a mineral resource update in the fourth quarter of 2023. The Company’s management conducted a site visit to the Elk Gold mine in April and received an update on its underground expansion potential. Gold Mountain has begun discussions with the British Columbia Government and early engagement with surrounding Indigenous communities to proactively manage any permitting or community requirements. Gold Mountain anticipates providing a more detailed project update as part of the revised PEA.

Green Star Joint Venture (61.9% interest)

During the first quarter of 2023, Green Star continued to review and expand its investment pipeline of premium, North American, nature-based environmental solutions. These opportunities include potential investments in regenerative agriculture, improved forest management, livestock enteric methane reduction, biochar, and other category types. Green Star also continues to evaluate capital raising opportunities through a combination of private and public markets to begin transacting on its advanced-stage pipeline.

In addition, in early 2023, Green Star became a member of the International Emissions Trading Association (“IETA”), a leading industry association focused on market-based climate solutions. IETA represents approximately 500 Canadian and international companies over multiple sectors on the design and implementation of carbon pricing and climate finance mechanisms. In April, Rina Cerrato, Green Star’s Chief Commercial Officer, was appointed as Co-Chair of IETA’s working group on Voluntary Carbon Markets (“VCM”). The working group reinforces IETA’s guiding principles on trust, integrity, connectivity and ambition to implement change and provides thought leadership and advocacy in the continued evolution of the VCM.

Regenerative Agriculture Carbon Farming Program

Green Star’s flagship regenerative agriculture CarbonNOW® farming program is a partnership with Anew Climate LLC (“Anew”) and Locus Agricultural Solutions® (“Locus AG”). The program’s farmer enrollment is now progressing beyond its original 320,000-acre scope and the program is currently undergoing listing by Anew under the Verra Registry. CarbonNOW is being developed under the grouped project “Anew Agri-Carbon Project” under Verra’s Methodology for Improved Agricultural Land Management, v1.0 (VM0042). Following the listing phase, the project will undergo a public consultation period of 30 days, followed by validation and verification audits conducted by a third-party Verra-approved validation and verification body. Once these audits are finalized, the project will be registered and its associated carbon credits will be issued.

Soil sampling on enrolled acres is underway, with soil carbon measurements expected over the next several months. At the program’s full scope of 1.32 million acres of U.S. farmland, Green Star continues to expect to generate cash flow equivalent to well over 400,000 attributable carbon credits per year.

MOBISMART

In early 2022, Green Star acquired a 2.5% gross revenue royalty on MOBISMART, a private operating company that specializes in mobile solar power and fuel cell generation systems with integrated battery storage and diesel displacement capabilities. As previously reported, MOBISMART recently transitioned from research and development to commercialization, and in the first quarter of 2023, became Green Star’s first cash flowing asset, with a quarterly royalty payment of $3,131.

During the quarter, MOBISMART signed a multi-unit order to deliver trailerized solar units to a leading provider of LIDAR systems in North America. MOBISMART’s products were selected due to their ability to provide dependable power in remote locations while both eliminating their client’s reliance on diesel generators and improving project returns. In addition, pilot unit installations are underway with NAV CANADA, where MOBISMART aims to use its solar solutions combined with fuel cells to provide 100% guaranteed backup power at civil air navigation system sites maintained by NAV CANADA nationwide.

In the telecommunications segment, MOBISMART has commenced a pilot program with a large U.S. telecommunications provider to displace diesel as a primary power source as well as fuel cell technology to displace their battery backup power systems. This program is starting with major markets in Los Angeles and Dallas and is expected to continue to roll out across the United States.

Elizabeth Metis Settlement Forest

In January 2022, Green Star expanded its original gross revenue royalty on the sale of carbon credits from forested lands located in Elizabeth Metis Settlement (the “EMS Forest Project”) from 13.5% to 40.5%. The EMS Forest Project represents one of four Improved Forestry Management (“IFM”) projects being developed by Anew across 255,000 acres of Metis Settlement lands in Alberta. The project’s carbon credits are anticipated to be issued either under the IFM protocol of Canada’s Greenhouse Gas Offset Credit System (federal offset system), or the Technology Innovation and Emissions Reduction Regulation (Alberta offset system). Both compliance-grade IFM protocols are currently under development. Environment and Climate Change Canada anticipates that a draft of the federal protocol will be released for public comments during the second quarter of 2023, with the final version to follow in the fall of this year. As the federal and provincial IFM protocols near finalization, the project stakeholders will choose the respective protocol that will maximize carbon credit value and other benefits for the EMS Forest Project.

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