Star Royalties Reports Audited Financial Results for 2020

(TheNewswire)

April 20, 2021 - TheNewswire - Toronto, ON - Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV:STRR) is pleased to report its financial results for the fourth quarter and year ended December 31, 2020.

Summary of Quarterly and Annual Results

For complete details, please refer to the Audited Consolidated Financial Statements and associated Management Discussion and Analysis for the year ended December 31, 2020, available on SEDAR at www.sedar.com or on the Company’s website at starroyalties.com.

Significant Portfolio Updates

Copperstone Gold Mine

On February 9, 2021, Arizona Gold Inc. (“Arizona Gold”) reported drilling results and provided an exploration update. The reverse circulation drilling results confirmed continuity of gold mineralization in the Footwall and Copperstone zones and demonstrated that these zones remain open and indicate further expansion of gold mineralized zones along strike and dip with future drilling. On March 10, 2021, Arizona Gold reported additional drilling highlights, including 1.8 m at 43.97 g/t gold in hole AZG-21-13-07.

On March 23, 2021, Arizona Gold provided a project update detailing progress toward commencing mine operations in late 2021.

Initial Public Offering and Other Financings

In February 2021, the Company completed its initial public offering (“IPO”) of 34,286,000 units of the Company at a price of C$0.70 per unit for gross proceeds of C$24,000,200. Each unit consists of one common share and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share at an exercise price of C$1.00 per common share until February 19, 2024.

In March 2021, the syndicate of underwriters for the Company’s IPO exercised a portion of the over-allotment option granted to them. As a result of the exercise, the Company issued an additional 3,769,500 common shares at a price of C$0.611 per common share and the Company issued an additional 5,142,900 warrants at a price of C$0.089 per warrant for combined gross proceeds of C$2,760,883.

In April 2021, the Company filed a final short form base-shelf prospectus which will allow flexibility for the Company to raise capital for the acquisition of additional royalty and stream interests when opportunities arise.

Alex Pernin, Chief Executive Officer of Star Royalties, commented: "2020 represented our first full year as a private company. During 2020, we established our team and differentiated business model, successfully raised over C$17 million, underwrote the Copperstone gold stream with Arizona Gold, with the first two of three tranche payments occurring in 2020 and the beginning of 2021, respectively, acquired the cash flowing Keysbrook royalty from Resource Capital Fund VI L.P. (RCF), and were one of the first pioneers in carbon sequestration royalties, in our first instance, on the Lac Seul First Nation forest. In early 2021, we transitioned to a public company with the completion of our upsized and oversubscribed IPO, where we raised an additional C$26.8 million. We expect several re-rating catalysts throughout this year as we deploy our IPO funds and progressively execute on both our precious metals and green pipelines, where we are currently reviewing an extensive pipeline of potential acquisitions."

 CONTACT INFORMATION

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

Alex Pernin, P.Geo.        Peter Bures

Chief Executive Officer and Director        Chief Business Development Officer

[email protected]        [email protected]
+1 647 801 3549        +1 437 997 8088

 ABOUT STAR ROYALTIES LTD.

Star Royalties Ltd. is a precious metals royalty and streaming investment company. The company’s objective is to provide wealth creation through accretive transaction structuring and asset life extension with superior alignment to both counterparties and shareholders. With a strategy to also invest in green opportunities, Star Royalties is one of the first pioneers of carbon credit royalties and is pursuing a pipeline of additional green investments.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this news release may constitute "forward-looking statements", including those regarding future market conditions for metals and minerals. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future which include but are not limited to statements relating to the further expansion of gold mineralized zones at Arizona Gold, the execution on opportunities within the Star Royalties pipeline, potential for re-rating catalysts, deployment of IPO funds, and the pursuit of a pipeline of additional green investments and precious metals investments. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performances or achievements of Star Royalties to be materially different from future results, performances or achievements expressed or implied by such statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results, performances or achievements to differ materially from such forward-looking statements, including, without limitation, changes in business plans and strategies, market conditions, share price, best use of available cash, the ability of the Company to identify and execute future acquisitions on acceptable terms or at all, risks inherent to royalty and streaming companies, title and permitting matters, metal and mineral commodity price volatility, discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries, mining operation and development risks relating to the parties which produce the metals and minerals Star Royalties will purchase or from which it will receive royalty payments, regulatory restrictions, activities by governmental authorities (including changes in taxation), currency fluctuations, the global social and economic climate, natural disasters and global pandemics, in particular COVID-19, dilution, and competition. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

CAUTIONARY NOTE REGARDING SCIENTIFIC AND TECHNICAL INFORMATION

The technical and scientific information contained in this press release in respect of the Copperstone Project, is based on the technical report entitled “NI 43-101 Technical Report, Preliminary Feasibility Study for the Copperstone Project, La Paz County, Arizona, USA” with an effective date of April 1, 2018 and report date of May 18, 2018 (the “Technical Report”), which technical report was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) for Kerr Mines Inc. (which changed its name to Arizona Gold on December 17, 2020), and filed under Arizona Gold’s SEDAR profile on May 22, 2018, and on additional publicly disclosed information relating to the

Copperstone Project after the date of the Technical Report.

The technical and scientific information contained in this news release has been reviewed and approved in accordance with NI 43-101 by Timothy Strong, MIMMM, a “qualified person” as defined in NI 43-101 and independent of the Company.

All amounts are in U.S. dollars unless otherwise indicated.

Not for distribution to U.S. news wire services or for dissemination in the United States.

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