Mr. Bernard Tan reports

RE ROYALTIES ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS AND KEY BUSINESS HIGHLIGHTS

RE Royalties Ltd. has released the financial results for the second quarter ended June 30, 2023. For further information on these results, please see the company's condensed consolidated interim financial statements and management's discussion and analysis for Q2 2023, filed on SEDAR+.

Key business and financial highlights for Q2 2023 include:

• 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 LLC sold the Jackson Center solar project phase 1 and 2, and subsequently repaid the outstanding loan and repurchased the royalty for $1.15-million (U.S.). This gain has been recorded as a component of revenue and income for Q2 2023.
• Quarterly revenue and income, including the share of income from the company's investment in OCEP, for the three months ended June 30, 2023, were $3,437,000, an increase of $2.25-million or 189 per cent over the similar period in the prior year.
• Year-to-date revenue and income, including the share of income from the company's investment in OCEP, for the six months ended June 30, 2023, were $5,262,000, an increase of $3,418,000 or 185 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 OCEP, for the three months ended June 30, 2023, was $3,349,000, an increase of $2,213,000 or 195 per cent over the similar period in the prior year.
• Year-to-date gross profit, including changes in fair value of financial assets and share of income in OCEP, for the six months ended June 30, 2023, was $5,139,000, an increase of $3,466,000 or 207 per cent over the similar period in the prior year.
• Quarterly earnings before interest, taxes, depreciation and amortization for the three months ended June 30, 2023, were $2,156,000, an increase of $1,384,000 or 179 per cent over the similar period in the prior year.
• Year-to-date earnings before interest, taxes, depreciation and amortization for the six months ended June 30, 2023, were $3,502,000, an increase of $2,742,000 or 361 per cent over the similar period in the prior year.
• Quarterly net income after income tax for Q2 2023 was $1,123,000, an increase of $897,000 or 398 per cent over the similar period in the prior year.
• Year-to-date net income after income tax for the six months ended June 30, 2023, was $1,681,000, an increase of $2,005,000 over the similar period in the prior year.
• Cash and cash equivalents were $17,716,000, including restricted cash.

Subsequent to the end of Q2 2023:

• In August, 2023, the company entered into a loan agreement and a royalty agreement with Butler Corporation SpA (CleanLight), a Chilean technology company and manufacturer of mobile solar battery systems, including solar lighting towers and solar hybrid battery generators. The company provided a $3.0-million (U.S.) secured loan to finance CleanLight's expansion into other countries in Latin America. The CleanLight loan has a two-year term and bears interest of 12 per cent per annum. The company also acquired a gross revenue royalty of 5 per cent for a period of 10 years, which will reduce to 3 per cent after certain revenue milestones are met, for $200,000 (U.S.).

"We are pleased to continue delivering this trajectory of revenue growth and profitability for our shareholders and investors for the sixth consecutive quarter. We are also happy to see the progress made by our portfolio clients in achieving key milestones in their growth journey. Our investment portfolio continues to generate stable, recurring and resilient cash flows, and with the cash on hand and opportunities currently under due diligence, we expect to continue this path of growth over the coming quarters," said Bernard Tan, chief executive officer.

Conference call on Tuesday, Aug. 29, 2023

Management will be hosting a second quarter conference call and live webcast to discuss its second quarter results. After opening remarks by management, there will be a question-and-answer session open to analysts and investors. Questions can be submitted in advance to Melanee Henderson, investment relations (melaneehenderson@reroyalties.com).

You can register for the webcast.

Date:  Tuesday, Aug. 29, 2023

Time:  1 p.m. PT (4 p.m. ET)

Meeting ID:  237 450 118 56

Passcode:  9PfoT3

Call-in (audio only):  778-725-6875

Phone conference ID:  308 021 590 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, 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.

We seek Safe Harbor.