Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. ANNOUNCES CLOSING OF $57.5 MILLION BOUGHT DEAL PUBLIC OFFERING OF COMMON SHARES WITH FULL EXERCISE OF OVER-ALLOTMENT OPTION

Diversified Royalty Corp. has closed its previously announced bought deal public offering of 12,339,500 common shares from treasury of the corporation, including 1,609,500 common shares issued pursuant to the full exercise of the overallotment option, at a price of $4.66 per common share for total gross proceeds of approximately $57.5-million. The offering is fully described in the corporation's prospectus supplement dated June 29, 2026, to the corporation's short form base shelf prospectus dated July 22, 2025, copies of each of which are available under Diversified Royalty's profile on SEDAR+.

The offering was conducted by a syndicate of underwriters led by CIBC Capital Markets and ATB Cormark Capital Markets, as joint bookrunners, along with Raymond James and Bank of Nova Scotia as co-lead underwriters with the joint bookrunners, and also included Canaccord Genuity Corp., Desjardins Capital Markets, BMO Capital Markets, National Bank of Canada Capital Markets, RBC Capital Markets and iA Private Wealth.

As described in the prospectus supplement, Diversified Royalty intends to use the net proceeds of the offering to fully repay the outstanding amounts under Diversified Royalty's acquisition facility drawn in connection with Diversified Royalty's recent acquisition of the Mr. Lube + Tires franchisor business, and for working capital and general corporate purposes.

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 and drive-through, no-appointment-needed vehicle maintenance.

Diversified Royalty also owns the Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, BarBurrito, Cheba Hut and AIR MILES trademarks. 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 was 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 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.