Ms. Flora Wood reports

ALTIUS RENEWABLE ROYALTIES REPORTS Q2 2023 FINANCIAL RESULTS

Altius Renewable Royalties Corp. has released its financial results for the second quarter of 2023 with a conference call to follow Aug. 2, 2023, at 9 a.m. ET.

The corporation's 50-per-cent-owned Great Bay Renewables (GBR) joint venture recorded $2.0-million in royalty revenue for the quarter ended June 30, 2023, compared with $1.2-million in Q2 2022. Operating cash flows at GBR increased to $1.0-million in the second quarter of 2023 as compared with $300,000 in Q2, 2022. For the six months ended June 30, 2023, GBR recorded $4.0-million in royalty revenue compared with $2.4-million in the same period in 2022. Operating cash flows at GBR were $1.9-million for the six months ended June 30, 2023, as compared with $500,000 in the same period in 2022.

Altius Renewable reported a net loss of $100,000, proportionate revenue of $1.6-million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $700,000 for the quarter. This compares with a net loss of $500,000, proportionate revenue of $700,000 and adjusted EBITDA of $(100,000) in Q2 2022. Total proportionate revenue in Q2 2023 comprised $1.0-million in royalty revenue and $600,000 in interest income.

For the six months ended June 30, 2023, Altius Renewable reported a net loss of $200,000, proportionate revenue of $3.2-million and adjusted EBITDA of $1.2-million. This compares with a net loss of $700,000, proportionate revenue of $1.4-million and adjusted EBITDA of $(200,000) for the comparative period in 2022. Total proportionate revenue for the six-month period comprised $2.0-million in royalty revenue and $1.2-million in interest income.

GBR's operating royalty portfolio benefited from the additions of each of the Titan Solar, Young Wind, Appaloosa Run and Hansford County wind projects, which were either acquired or reached operational status in the second half of 2022. GBR continues to progress several new royalty investment opportunities spanning the full spectrum of development to production stage assets while the El Sauz project is currently in construction and expected to reach commercial operation in Q4 2023. Several additional royalty projects continue to be advanced toward construction start by several operators across a variety of United States power regions.

Seasonally lower merchant pricing in the current quarter and year to date partially offset the growth in the royalty portfolio. More recently, there has been an increase in merchant pricing due to warmer summer weather and increased power demand.

The corporation's current quarter and year-to-date results reflect the proportionate share of increased revenues at GBR offset by the proportionate share of increased costs including GBR's non-cash based share of loss of approximately $1.0-million associated with its Bluestar and Nova equity investments. Bluestar and Nova are recently formed development-stage renewable energy businesses.

At June 30, 2023, the corporation held cash of $41.1-million and has expected commitments for the remainder of 2023 of approximately $11.3-million for existing GBR investment agreements.

Commenting on the quarter, Frank Getman, chief executive officer of GBR, said: "Our royalty portfolio revenue and cash flow profile continue to benefit from the addition of operational stage royalties. While there remains robust renewables activity and tailwinds across the U.S. resulting from the IRA and the continued energy transition, ongoing interconnection delays and higher costs of both debt and equity capital creates a strong investment climate for alternative sources of capital such as GBR's royalty financing."

Brian Dalton, chief executive officer of Altius Renewable, added that: "GBR continues to gain portfolio scale and diversity at a pace that is exceeding the long-term goals we had set at the time of its IPO in 2021. With now more than 15 GW of development through operating stage royalty projects in the portfolio it is clear that awareness and acceptance of royalty-based funding is becoming a mainstream financing tool within the renewable energy sector. We remain poised to play an increased role in supporting the energy transition and to adding further diversity and scale to the portfolio on behalf of shareholders."

Conference call details

A conference call and webcast will be held on Wednesday, Aug. 2, 2023, at 9 a.m. ET to provide an update and to offer an open Q&A (question and answer) session for analysts and investors. Access details are as follows:

Date:  Wednesday, Aug. 2, 2023, at 9 a.m. ET

Event:  Altius Renewable Royalties Q2 2023 financial results, ID 07181885

Dial-in:  1-888-886-7786 or 1-416-764-8658

About Altius Renewable Royalties Corp.

Altius Renewable is a renewable energy royalty company whose business is to provide long-term, royalty level investment capital to renewable power developers, operators and originators. Altius Renewable has 33 renewable energy royalties representing approximately 1.9 gigawatts of renewable power on operating projects and an additional approximate six GW on projects in development phase, across several regional power pools in the United States. The corporation also expects future royalties from GBR's investments in Bluestar Energy Capital, Hodson Energy and Hexagon Energy, which increase the total development project pipeline to approximately 15 GW. The corporation combines industry expertise with innovative, partner-focused solutions to further the growth of the renewable energy sector as it fulfills its critical role in enabling the global energy transition.

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