Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. COMPLETES ACQUISITION OF MR. LUBE + TIRES FRANCHISOR BUSINESS

Diversified Royalty Corp., through its newly formed subsidiary, Mr. Lube Canada Ltd., has completed the previously announced acquisition of the Mr. Lube + Tires franchisor business in Canada from Mr. Lube Canada LP and Mr. Lube Canada GP Inc. for a gross purchase price of $235-million, subject to customary closing and postclosing adjustments.

The $235-million gross purchase price plus estimated transaction costs of $2.0-million was financed by: (i) $36.6-million from Diversified Royalty's cash on hand; (ii) $38.5 million from Diversified Royalty's existing undrawn acquisition facility capacity; (iii) $212.5-million drawn from a new senior credit facility obtained by the purchaser (resulting in a net increase in senior debt of $127.6-million after the application of $84.9-million of the loan proceeds to paydown existing debt); (iv) $13.7-million in Diversified Royalty shares issued at a price of $3.98 per share on a private placement basis (3,440,953 Diversified Royalty shares) to various equity holders of the vendors (which shares are subject to a statutory four-month hold period); and (v) $20.6-million of rolled equity into the purchaser issued to management of Mr. Lube + Tires resulting in a retained interest in the purchaser of approximately 4 per cent. The vendors also provided the purchaser with an $11.6-million non-interest-bearing loan to finance the GST related to the acquisition, of which $9.2-million is payable by the purchaser on the earlier of six months following closing of the acquisition and the receipt by the purchaser of a GST refund in respect of the acquisition, and $2.4-million, representing an indemnity holdback, is payable by the purchaser one-year post closing.

Further details with respect to the acquisition are set out in Diversified Royalty's news release dated May 14, 2026, and Diversified Royalty's other filings under its profile on SEDAR+.

The undertakings of Mr. Lube Canada LP previously delivered to the securities commissions and other securities regulatory authorities in each of the provinces of Canada, the terms of which are summarized in Diversified Royalty's annual information form for the year ended Dec. 31, 2025, were terminated in connection with the closing of the acquisition. Accordingly, the financial statements and management's discussion and analysis of Mr. Lube Canada LP for the three months ended March 31, 2026, represent the last financial period in respect of which separate financial statements and management's discussion and analysis will be filed in respect of Mr. Lube Canada LP under Diversified Royalty's profile on SEDAR+.

About Diversified Royalty Corp.

Diversified Royalty is a multiroyalty corporation, engaged in the business of acquiring top-line royalties from well-managed multilocation businesses and franchisors in North America. Diversified Royalty's objective is to acquire predictable, growing royalty streams from a diverse group of multilocation businesses and franchisors. Diversified Royalty, through its subsidiary, Mr. Lube Canada Ltd., also operates the Mr. Lube + Tires franchisor business in Canada. Mr. Lube + Tires is the leading Canadian automotive service chain specializing in fast, drive-in drive-through, no-appointment-needed vehicle maintenance.

Diversified Royalty currently owns the Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, BarBurrito, Cheba Hut and AIR MILES trademarks, which Diversified Royalty licenses to its royalty partners. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes operates casual steakhouse restaurants primarily in Western Canadian communities. Nurse Next Door is a home care provider with locations across Canada and the United States, as well as in Australia. Oxford Learning Centres is one of Canada's leading franchisee supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive janitorial, building cleaning and office cleaning services primarily in the United States. BarBurrito is the largest quick-service Mexican restaurant food chain in Canada. Cheba Hut is a fast casual toasted sub sandwich franchise with locations in the United States. AIR MILES is a Canadian loyalty program.

Diversified Royalty's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of both purchased royalties and the Mr. Lube + Tires franchisor business. Diversified Royalty intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows.

We seek Safe Harbor.