Mr. Bernard Tan reports

RE ROYALTIES ENTERS INTO USD $3.2 MILLION LOAN AND ROYALTY AGREEMENT WITH CLEANLIGHT FOR SOLAR BATTERY STORAGE SYSTEMS IN LATIN AMERICA

RE Royalties Ltd. has entered into a $3.2-million (U.S.) loan and royalty acquisition agreement with Butler Corp. SpA (doing business as Cleanlight), a high-growth Chilean technology company and manufacturer of mobile solar-battery systems including solar lighting towers and solar-hybrid battery generators (SolBox). All amounts are in United States dollars unless otherwise stated.

The loan will be drawn in two tranches, with a term of two years and an interest rate of 12 per cent per annum. As part of the transaction, the company acquired a 10-year royalty calculated based on 5 per cent of gross revenues commencing on closing, which reduces to 3 per cent after certain revenue milestones are met.

The loan facility will provide working capital and finance Cleanlight's expansion into other countries in Latin America.

Cleanlight was founded in 2019 in response to customer needs in the mining sector for off-grid lighting and communications towers without the cost, emissions and maintenance challenges of diesel-powered options. Cleanlight's solar towers are priced competitively to diesel options, passing significant fuel and maintenance cost savings on to the customer in addition to environmental benefits. Cleanlight has generated approximately $4-million in annual revenue, with over 550 solar towers sold, and has a rental fleet of over 150 units. Cleanlight to date has sold over 850 SolBox units to home owners and businesses through distribution agreements with large box stores in Latin America.

"This investment provides RE Royalties with the opportunity to provide essential growth capital to a high-growth company in an underserved financial market. We are excited to enter the South American market and look forward to working with the Cleanlight team to help its customers save money and reach their net-zero goals," said Bernard Tan, chief executive officer of RE Royalties.

"Partnering with RE Royalties will allow Cleanlight to scale up operations, grow sales and expand market presence in the mining sector, which is desperately seeking sustainable solutions," said Jordan Butler, chief executive officer of Cleanlight. "Cleanlight offers commercial, consumer and industrial customers a reliable and easy transition to renewable energy solutions to meet their needs in real time."

About RE Royalties Ltd.

RE Royalties acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions 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, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico and Chile. 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.

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