November 02, 2023, TORONTO, ON – Star Royalties Ltd. (“Star Royalties”, or the “Company”) (TSXV: STRR, OTCQX: STRFF) is pleased to announce the closing of a previously announced agreement with Sabre Gold Mines Corp. (“Sabre Gold”) (TSX: SGLD, OTCQB: SGLDF) to restructure the Company's existing gold stream on the fully-permitted Copperstone Gold Mine (“Copperstone”). As part of the restructuring, the gold stream was revised from 6.6% of gold produced with production-based step-downs to a flat 4% of gold produced for the duration of Copperstone’s life-of-mine (“LOM”) and additional consideration of C$4.55 million paid by Sabre Gold to Star Royalties in a combination of cash and shares. Under the terms of the streaming agreement, Star Royalties will continue to provide a cash payment to Sabre Gold equal to 25% of the spot gold price for each ounce of gold delivered.

Alex Pernin, Chief Executive Officer of Star Royalties, commented: “We are pleased to have created an improved structure for our Copperstone gold stream that should provide improved flexibility for Sabre Gold to secure financing and advance Copperstone to production. We continue to believe in the significant exploration and long-term production potential of Copperstone, and the revised streaming agreement provides Star Royalties with increased exposure to both, while converting a portion of its value into immediate and near-term cash and securities.”

Summary of Transaction Terms

• Stream revision: Star Royalties’ gold stream on Copperstone was revised from 6.6% of gold produced (with a step-down to 2.2% after 14,000 gold ounces have been delivered under the stream, and a further step-down to 0.8% after 18,133 gold ounces have been delivered) to 4% of gold produced LOM. The revised gold stream structure simplifies its overall terms and expected cash flow profile, and provides Star Royalties with enhanced exposure to existing resource conversion and future exploration upside at Copperstone.
• Cash and shares consideration: As additional consideration for agreeing to the revised gold stream, Star Royalties will receive from Sabre Gold C$4.55 million in a combination of cash and shares in three tranches. Payment of the second and third tranches will be timed so as to coincide with the payment by Victoria Gold Inc. (“Victoria Gold”) (TSX: VGCX) to Sabre Gold of its second and third purchase price installments for its purchase of Sabre Gold’s interest in the Brewery Creek Project and other certain mineral assets in the Yukon, which closed on September 14, 2023. The Company will receive:

• Improved balance sheet: Star Royalties maintains a meaningful interest in Copperstone’s future gold production while converting a portion of the original gold stream value into cash and cash equivalents, thereby enhancing the Company’s financial position.
• Enhanced project economics: The stream revision and royalty buyback are expected to improve Copperstone’s project economics, where the Company estimates an after-tax IRR of 58% at US$1,800/oz gold and cash costs of ~US$950/oz. The restructuring results in the fully-permitted Copperstone project having a more attractive 4.5% total royalty equivalent encumbrance which should enhance Sabre Gold’s ability to fund project construction.
• Improved long-term optionality: The revised stream will be maintained across Copperstone’s entire LOM, providing meaningfully higher resource conversion and exploration upside exposure to the Company.

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