Ms. Melanee Henderson reports

RE ROYALTIES ANNOUNCES 178% INCREASE IN QUARTERLY REVENUE - FIRST QUARTER 2023 FINANCIAL RESULTS

RE Royalties Ltd. has released the financial results for the first quarter ended March 31, 2023. For further information on these results please see the company's condensed consolidated interim financial statements and management discussion and analysis for Q1 2023, filed on SEDAR.

Key financial and business highlights of Q1 2023 include:

• Quarterly revenue and income, including the share of income from the company's investment in OCEP2 for the three months ended March 31, 2023, of $1,824,000, an increase of $1,169,000, or 178 per cent, over the similar period in the prior year;
• Quarterly gross profit, including changes in fair value of financial assets and share of income in OCEP2, of $1,790,000, an increase of $1,253,000, or 233 per cent, over the similar period in the prior year;
• Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) for Q1 2023 of $1,346,000, an increase of $1,358,000 over the similar period in the prior year;
• Quarterly net income after income tax of $558,000, an increase of $1,108,000 over the similar period in the prior year;
• Cash and cash equivalents of $17,862,000, including restricted cash;
• Completed the offering of its Series 3 green bonds and issued a total of 16,423 Canadian-dollar-denominated green bonds for aggregate gross proceeds of $16,423,000 and 1,242 U.S.-dollar-denominated green bonds for aggregate gross proceeds of $1,242,000 (U.S.); the Series 3 green bonds will have a maturity date of Jan. 30, 2028, and bear interest at a rate of 9 per cent per annum, payable quarterly;
• In February, 2023, the company acquired a gross revenue royalty on the 27 megawatts direct current (20 megawatts alternating current) Jackson Center solar project phase 2 from Teichos Energy LLC; the company provided a $1.8-million (U.S.) letter of credit on behalf of Teichos to meet its interconnection requirements.

Subsequent to the end of Q1 2023:

• In May, 2023, the company acquired a royalty on 100 megawatts of output from a wind project located in Alberta, Canada, for $940,000. The Alberta wind project is owned by a major independent power producer with a power purchase agreement with a large corporate offtaker. The company will receive average annual royalty payments of approximately $132,000 per year, payable monthly for a period of 12 years.
• Teichos Energy also sold the Jackson Center solar project phase 1 and phase 2 and subsequently repaid the outstanding loan and repurchased the royalty for $1.15-million (U.S.).

"Q1 2023 saw the highest quarterly revenues and income in our corporate history and represent the fifth consecutive quarter of delivering strong revenue and income and EBITDA growth. Despite weak capital market conditions over the past few quarters, our investment portfolio continue to generate stable, recurring and resilient cash flows. With the additional capital raised from our recently completed Series 3 green bonds and a robust backlog of royalty investment opportunities currently under due diligence, we expect to continue to build on our recent success over the coming quarters."

Conference call on Thursday, June 1, 2023

Management will be hosting a first quarter conference call and live webcast to discuss its first quarter results. You can register for the webcast on-line.

Date:   Thursday June 1, 2023

Time:   1 p.m. PT (4 p.m. ET)

Meeting ID:  232 167 896 137

Passcode:  R3kfDB

Call-in number (audio only):   778-725-6875

Phone conference ID:  866 975 615 followed by the number sign

About RE Royalties Ltd.

RE Royalties acquires revenue-based royalties from renewable energy facilities and technologies by providing a non-dilutive financing solution to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The company currently owns over 100 royalties on solar, wind, hydro, battery storage, energy efficiency and renewable natural gas projects in Canada, the United States and Mexico. The company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through reinvestment and a sustainable investment focus.

We seek Safe Harbor.