Star Royalties Highlights Completion of Acquisition of Sabre Gold by Minera Alamos

(TheNewswire)

February 7, 2025, TORONTO, ON – TheNewswire – Star Royalties Ltd. (“ StarRoyalties ”, or the “ Company ”) (TSXV: STRR, OTCQX: STRFF) is pleased tohighlight the completion of Minera Alamos Inc.’s (“ Minera Alamos ”) (TSXV: MAI, OTCQX:MAIFF) previously announced acquisition of Sabre Gold Mines Corp.(“ Sabre Gold ”) (TSX: SGLD,OTCQB: SGLDF). The acquisition provides a direct and acceleratedpathway to bring the Copperstone Gold Mine (“ Copperstone ”) into production inthe first half of 2026. The Company's existing gold streamingagreement on Copperstone remains a flat 4% of gold produced for theduration of Copperstone’s life-of-mine (“ LOM ”). Under the terms of thestreaming agreement, Star Royalties will provide a cash payment toMinera Alamos equal to 25% of the spot gold price for each ounce ofgold delivered. All amounts are in U.S. dollars, unless otherwiseindicated.

Transaction Highlights

• Accelerated timeline to production atCopperstone: With the acquisition of Sabre Goldnow complete, Copperstone has become a priority development projectfor Minera Alamos. Minera Alamos is in the process of expanding itsconstruction and operations team, and management plans for firstproduction in the first half of 2026.

• Proven mine builders and operators: Minera Alamos’ established track record ofpermitting, building, and operating gold mines will be a key driver toreturning Copperstone to production within established timelines andcost estimates. The management team has set several milestones for2025, including re-issuing a Preliminary Economic Assessment(“ PEA ”), installing process plant equipment, and rehabilitatingunderground infrastructure.

• Increased confidence in developmentcost estimates: Minera Alamos management expectsthat the use of already-owned process plant equipment and leveragingexisting infrastructure should offset inflationary pressures to thepre-production capital of approximately $36 million as contemplated inthe June 2023 PEA. Minera Alamos is reviewing transportation proposalsfor relocating the process plant equipment that is currently instorage in Quebec to Copperstone.

• Upcoming PEA to highlight projecteconomics and stream value at current gold prices: Minera Alamos indicated that it will be re-issuing the 2023Copperstone PEA, with previous operating assumptions and a gold pricesensitivity table that will reflect current gold price assumptions. Asper the current Copperstone’s PEA and assuming a gold price ofUS$2,800/oz, Star Royalties’ stream is expected to generateapproximately US$19.2 million in LOM pre-tax cash flow prior to anysuccessful mine-life extension from resource conversion andexploration upside.

• Equityownership of Sabre Gold converted at a premium with improveddiversification: The Company’s equity positionin Sabre Gold of 7,407,407 shares, has beenconverted into 5,133,333 shares of Minera Alamos. The equity ownershipconversion diversifies the Company’s exposure from a single-assetdeveloper in Sabre Gold to a portfolio of operating anddevelopment-stage projects in Minera Alamos.

• C$2.0 million in contingent paymentsconverted to Minera Alamos equity: TheCompany’s outstanding C$2.0 million payments owed by Sabre Gold havebeen converted into an additional 4,459,459 shares of Minera Alamos asa result of the share exchange process detailed in Sabre Gold’s newsrelease dated October 28, 2024.

Alex Pernin, Chief Executive Officer of Star Royalties, commented:“We congratulate Minera Alamos on their successful acquisition ofSabre Gold and we look forward to what should be a highly productiveand milestone-rich 2025 as Copperstone is brought forward toproduction. Achieving gold production in the coming quarters willgenerate significant value for our investment and for ourshareholders, especially in today’s record-high gold priceenvironment. In addition to Copperstone’s development plan, asMinera Alamos derisks its remaining portfolio and advances itspipeline, we continue to see meaningful re-rating potential for the9.6 million Minera Alamos shares we now own through this acquisition.This Minera Alamos equity improves the long-term liquidity andstrength of our balance sheet. Once again, the completion of thistransaction cements value for our Copperstone stream, but alsomeaningfully rerates and derisks our mining royalty portfolio as awhole. We believe it is an important step in closing the valuation gapimplied by our share price to the value of our underlying miningroyalty portfolio.”

2025 Development Outlook for Copperstone

In a recent update to shareholders, Mineral Alamoscommunicated a timeline of milestones for 2025, as it developsCopperstone for anticipated production in the first half of 2026.During the first half of 2025, Minera Alamos anticipates:

• Securing the remaining financing required to bringCopperstone into production

• Rehabilitating and installing process plant equipmentat Copperstone

• Submitting final permitting documents for the additionof leaching facilities to the existing processing infrastructure atsite

During the second half of 2025, Minera Alamosanticipates:

• Completing process plant installation at site

• Receiving all necessary documentation to beginoperations

Figure 1: Location of Copperstone and2023 PEA Summary

Source: Minera Alamos corporatepresentation, dated February 2025.

CONTACT INFORMATION

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

About Star Royalties Ltd.

Star Royalties Ltd. is a carbon credit and precious metals royalty andstreaming company. The Company innovated the world’s first carboncredit royalties in forestry and regenerative agriculture through itspure-green joint venture, Green Star Royalties Ltd., and offersinvestors exposure to carbon credit and precious metals prices. TheCompany’s objective is to provide wealth creation by originatingaccretive transactions with superior alignment to both counterpartiesand shareholders.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute"forward-looking statements", including those regardingfuture market conditions for metals and minerals, future valuation ofMinera Alamos, development and production of Copperstone, permittingand construction scheduling of Coppertone, future location ofCopperstone grinding and flotation equipment, expected future cashflow from the stream agreement, the Company’s position inCopperstone’s future gold production, the net cash position of theCompany, and future capital raising opportunities are statements thataddress or discuss activities, events or developments that the Companyexpects or anticipates may occur in the future. When used in this newsrelease, words such as "estimates", "expects","plans", "anticipates", "will","believes", "intends" "should","could", "may" and other similar terminology areintended to identify such forward-looking statements. Forward-lookingstatements are made based upon certain assumptions and other importantfactors that, if untrue, could cause the actual results, performancesor achievements of Star Royalties to be materially different fromfuture results, performances or achievements expressed or implied bysuch statements. Forward-looking statements should not be read as aguarantee of future performance or results and will not necessarily bean 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 between actual and estimated production and testresults, mineral reserves and resources and metallurgical recoveries,mining operation and development risks relating to the parties whichproduce the metals and minerals Star Royalties will purchase or fromwhich it will receive royalty payments, risks inherent to royaltycompanies, title and permitting matters, activities by governmentalauthorities, currency fluctuations, the global, federal and provincialsocial and economic climate in particular with respect to addressingand reducing global warming, natural disasters and global pandemics,dilution, risk inherent to any capital financing transactions. 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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