Star Royalties Provides Updates on Green Star Royalties and Corporate Strategy

(TheNewswire)

April 28, 2025 – TheNewswire - TORONTO, ON – Star Royalties Ltd. (“ Star Royalties ”,or the “ Company ”) (TSXV:STRR, OTCQX: STRFF) today provided an update on Green Star RoyaltiesLtd.’s (“ Green Star ”)royalty portfolio and its corporate strategy. NeitherTSX Venture Exchange nor its Regulation Services Provider acceptsresponsibility for the adequacy or accuracy of this release.

Carbon Markets Update

Over the past several quarters, North American voluntary andcompliance carbon markets have experienced considerable headwinds,resulting in broader 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 announcement by a key carbon credit offtakerexperiencing solvency issues, as well as the postponement of certainkey industry conferences.

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 these assets’ economic feasibility relative to GreenStar’s internal rate of return requirements. As a result of GreenStar’s management review and necessary adherence to prudent capitalallocation and risk management practices, Green Star has decided toterminate future capital commitments to the CarbonNOW ® carbon farming program.

The decision to terminate Green Star’s involvement inthe CarbonNOW program was unanimously supported by the Company’sjoint-venture partners, with a resolve to allocate Green Star’sremaining capital to high-quality, derisked, cash-flowing royalties ondecarbonization projects. Star Royalties and its joint-venturepartners reaffirm the intent and goal of growing Green Star prudentlyinto a long-term decarbonization investment firm, with a continuedstrict focus on robust cleantech and premium carbon creditopportunities in top jurisdictions.

Additional details on each project are available in the Green Star PortfolioUpdates section below.

Green Star Portfolio Updates

Regenerative Agriculture Carbon Farming Program

Following multiple months of thorough analysis andthoughtful consideration, Green Star and its joint-venture partnersreached an agreement to terminate future capital commitments to theCarbonNOW program due to a deteriorating return profile and aconclusion that both known and unknown risks had become unacceptablyelevated and that the program could not be sufficiently restructuredto warrant additional investment.

The determination to terminate future funding was basedon:

• Various program-level complexities andunderperformances as compared to the original investment case,including a slower acre enrollment schedule, previously unknownprogram deductions and other challenges in program management,increased risks in farmer program adherence, farmer attrition, carbonreversals and a reduced outlook on future carbon sequestrationpotential.

• Certain revisions and inherent inflexibility relatingto the Verra Registry’s methodology quantification, including highernon-offset-generating control acre requirements and soil samplingprocedural challenges.

• Weakened financial outlook of the program, partlydriven by CarbonNOW’s offtaker for the program’s first 500,000carbon offsets, Catona Carbon Solutions, LLC, having recently filedfor Chapter 11 bankruptcy protection on March 30.

Following termination of the program, Green Star has nofurther funding obligations nor investment interest inCarbonNOW.

NativState Improved Forest Management Portfolio

Green Star acquired several gross revenue royaltiesfrom NativState LLC (“ NativState ”) on a carbon offset-issuingportfolio of Improved Forest Management (“ IFM ”) projects inthe southeastern United States during the second quarter of 2024, andit remains actively engaged with multiple brokers and intermediarieswithin the voluntary carbon markets, including major banks andcommodity traders, to monetize already-issued avoidance and removaloffsets from Project ACR 783. To date, a large portion of the removaloffsets in Green Star’s inventory have been sold, along with a smallportion of the avoidance offsets. Efforts to monetize the remainder ofavoidance offsets are ongoing, with Green Star’s carbon offsetscurrently participating in several active bids via intermediaries.Green Star is also exploring other monetization strategies, such aslong-term offtakes with corporate partners, as well as participatingin direct sales through NativState.

NativState is an Arkansas-based forest carbon projectdeveloper focused on aggregating small-to-medium forest landownersinto IFM projects. 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 AmericanCarbon Registry (“ ACR ”) projects. The first two of theseadditional projects are Project ACR 912 and Project ACR 913. Both arecurrently being prepared for validation and verification under ACR’smethodology Improved Forest Management (IFM) on Non-Federal U.S.Forestlands version 2.1. This latest version of the methodology ismore rigorous and results in a more precise and conservative carboncrediting baseline, requiring projects to reassess and updatebaselines as necessary prior to each credit issuance. This improvedapproach also reduces the risk of over-crediting by the project andincreases confidence in the integrity of the carbon offsets. Inaddition to all projects cumulating to the 60,000 acres, ACR will beproviding guidance to NativState for transitioning Project ACR 783 toversion 2.1 of the methodology for all future issuances.

Project ACR 912 – Mixed BroadleafForests of the Ozark Highlands

Project ACR 912 represents approximately 9,100 acres ofsustainably managed forestland across the Arkansas Ozark Highlands.Green Star owns a 7% gross revenue royalty on this project, which isexpected to have its first carbon offset issuance at the end of2025.

Project ACR 912 uses a programmatic developmentapproach to IFM, allowing landowners with smaller tracts of land tocombine under one project. Through sustainable forest management, theproject will provide significant climate benefits through carbonsequestration from native forests in an ecoregion that is currentlyonly 4% protected.

Project ACR 913 – BottomlandForests of the Mississippi Delta and Piedmont

Project ACR 913 represents approximately 7,800 acres ofsustainably managed forestland across Eastern and SouthcentralArkansas. Green Star owns a 3% gross revenue royalty on this project,which is expected to have its first carbon offset issuance at the endof 2025.

Like Project ACR 912, Project ACR 913 enables smallerlandowners to join forces with others committed to maintaining forestCO 2 e stocks throughsustainable management, which contributes to climate conservationefforts through carbon sequestration of native forests. This projectfocuses on the deciduous forested wetlands of the Mississippi Deltaand Piedmont, where forests in this area serve a critical role inreducing the risk and severity of flooding to downstream communities.

Click Image To View Full Size

ACR 912: MixedBroadleaf Forests of the Ozark Highlands ACR 913 : BottomlandForests of the Mississippi Delta and Piedmont

MOBISMART

In early 2022, Green Star acquired a 2.5% gross revenueroyalty on MOBISMART, a private, operating company that specializes inmobile solar power generation systems with integrated battery storage.Its product offering includes mobile solar power trailers andcontainers with leading-edge power electronics and remote monitoring.As a result, MOBISMART’s products address a wide range of off-gridpower generation requirements while displacing diesel usage.

MOBISMART has been delivering quarterly royaltypayments to Green Star since the beginning of 2023 as it continues toadvance its commercialization initiatives focused on the U.S.telecommunications, renewable energy and defense sectors. In 2025,MOBISMART anticipates strong growth across the wind,telecommunications and construction sectors to continue to result inhigher demand for its products.

Elizabeth MetisSettlement Forest Carbon Project

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 duringthe second half of 2025, with the final protocol expected by the endof 2025. Similarly, ACR is also undertaking a review of its ImprovedForest Management (IFM) on Canadian Forestlands methodology, with anexpectation to release the updated protocol by the end of 2025. EMSForest Project can be developed either under TIER or ACR, with Anew todetermine the most economically viable pathway to be pursued once theforest carbon inventory measurement is completed. First issuance ofcarbon credits from EMS Forest Project is forecasted by Anew for laterin 2027.

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.

Star Royalties CorporateStrategy

Star Royalties was established as a precious metalsroyalty company with a target portfolio weight of 80% on preciousmetals and 20% on green (carbon credits, cleantech) or energytransition metals (lithium, copper and nickel).

Green Star (currently 46% owned by Star Royalties) was established inlate 2021 to provide shareholders with exposure to the rapidly growingcarbon markets and ESG thematic given the strong investor andshareholder support at the time. Since then, a significant portion ofStar Royalties’ management effort was focused on establishing theGreen Star joint venture through several significant corporatetransactions involving senior natural resources companies, all withthe aim of growing its green royalty portfolio. Today, Green Starremains sufficiently capitalized and its uncommitted capital isavailable to be deployed towards cash-flowing opportunities withcertainty of revenue to establish a meaningfully free cash flowing,diversified and de-risked portfolio.

Green Star continues to represent an important source of future valuecreation for Star Royalties. Management remains encouraged aboutfuture prospects for this business and believes the joint venture iswell 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 and it looks forward to innovatingnew structures to support the objectives of Green Star’s strategicshareholders.

While carbon markets are currently experiencing downward pressure ininvestment sentiment, the outlook for the Company’s mining royaltyportfolio has improved considerably, both due to asset de-risking andthe steadily rising gold price, currently exceeding US$3,300/oz.

The Copperstone Gold Project (“ Copperstone ”) is expected to generate meaningful cash flowswith its anticipated return to production in mid-2026. The Companynotes Minera Alamos Inc.’s ( TSXV: MAI, OTCQX: MAIFF) strong development track record, and Copperstone’s lowcapital intensity, permitting status, and strong project economics atcurrent gold prices. Near-term catalysts for Copperstone include theannouncement of a project lending package, rehabilitation andinstallation of larger mill equipment, and receipt of alldocumentation for production startup.

Separately, the Company looks forward to additional disclosure fromGold Mountain Mining Corp. (“ GoldMountain ”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA) on thego-forward development and operating plan for its Elk Gold Mine(“ Elk ”) (where the Companyowns a 2% NSR royalty), including funding plans and on its recentexploration program where preliminary results support additionalactivities. Gold Mountain recently noted that it looksforward to Elk resuming normal operations.

Alex Pernin, Chief Executive Officer of Star Royalties, commented:“While we remain fully committed and longer-term bullish on GreenStar and its investments, there is no doubt that the carbon marketsare navigating through a turbulent and uncertain environment. We aredisappointed at having to terminate funding for the CarbonNOW program,but this was ultimately the correct decision and was made with thesole goal of minimizing risk while preserving capital and shareholdervalue. Green Star’s decarbonization investment mandate, whichincludes cleantech opportunities, continues to be supported by itsjoint venture partners.

At the same time, we continue to be highly encouraged by thestrengthening gold price environment and recent developments andupcoming milestones across our mining royalty portfolio. Over the nextseveral quarters we expect a number of de-risking events, includingconstruction updates at Copperstone, a return to normal operations atElk, and continued solid performance from Keysbrook. We look forwardto providing our shareholders with project updates over the course of2025 as we progress towards generating meaningful free cash flow forStar Royalties next year. We maintain the strong view that ourportfolio is worth much more than our market capitalization and we expect that all of our key mining royalty assetswill be generating revenue in 2026. Achieving this should act as adifferentiator for us in the space and it remains our top priority toclose the valuation gap.”

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-lookingstatements should not be read as a guarantee of future performance orresults and will not necessarily be an accurate indication of whetheror not such results will be achieved.

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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