Mr. Bernard Tan reports

RE ROYALTIES ANNOUNCES COMPLETION OF CAD $4.0 MILLION ACQUISITION LOAN AND ROYALTY AGREEMENT WITH REVOLVE RENEWABLE POWER

Further to RE Royalties Ltd.'s news release dated Oct. 4, 2023, Revolve Renewable Power Corp. has completed the acquisition of WindRiver Power Corp., a Canadian-based owner, operator and developer of wind and hydro projects in the provinces of British Columbia and Alberta.

The company provided a $4-million secured loan to support Revolve's acquisition of WindRiver. The loan has a term of 36 months and bears interest at the rate of 12 per cent per annum, compounded monthly and payable semi-annually. The company also received a structuring fee of 1 per cent on the loan value at closing and a gross revenue royalty of 0.5 per cent on the acquired operating projects during the term of the loan, growing to a gross revenue royalty of 1.0 per cent upon repayment of the loan for the remaining life of the power purchase agreements.

The acquisition includes a minority ownership (21 per cent) in two operational run-of-river hydro projects in British Columbia and a majority ownership (51 per cent) in an operational wind project in Alberta with a combined gross capacity of 23 megawatts (the operational projects). It also includes a majority ownership (70 per cent to 87.5 per cent) in two development-stage hydro projects in British Columbia with a combined gross capacity of 90 megawatts.

The operational projects receive revenue from power purchase agreements with a prominent provincial utility and a municipal entity for the hydro projects and the wind project, respectively. The operational projects have PPAs with remaining terms ranging from 32 to 35 years for the hydro projects and 11 years for the wind project.

Bernard Tan, chief executive officer of RE Royalties, stated: "We're pleased to continue our partnership with Revolve and look forward to working with them on their growing portfolio of renewable energy projects. This investment presents an excellent opportunity for our investors and highlights the sustained demand for our innovative financing solutions."

Steve Dalton, chief executive officer of Revolve, commented: "We're delighted to close the acquisition of WindRiver and would like to take the opportunity to thank the WindRiver team, RE Royalties team, shareholders and advisers for their work on the transaction over the last number of months. We look forward to building on the success of WindRiver and to continuing to expand our presence in the Canadian market."

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, run-of-river, 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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