Mr. Bernard Tan reports

RE ROYALTIES PROVIDES CORPORATE UPDATE AND DECLARES DIVIDEND

RE Royalties Ltd. has provided an update on the company's near-term investment opportunities, current investments with existing clients, Series 1 green bonds, appointment of Alexa Blain to the board of directors, listing on the Frankfurt Stock Exchange and dividend policy.

Near-term opportunities

The company has entered into approximately $50-million in letters of intent to invest in a number of high-quality near-term opportunities across solar, wind, energy storage and distributed generation projects. These opportunities are in the United States, the Maldives and Canada with existing and new clients. The company is advancing due diligence on these opportunities, which will support the company's goal of increasing its asset base and scaling recurring revenues through diversified, high-quality renewable energy investment assets.

Peter Leighton, chief operating officer of RE Royalties, commented: "These near-term opportunities reflect the strength of demand for flexible, innovative capital in the renewable energy sector, especially given the current policy environment in the United States. We have significant interest from participating in key business development conferences in 2025. We are focused on disciplined capital deployment, strong risk management and increasing accretive long-term value for our shareholders."

Current investment portfolio

The company is also pleased to announce that it has extended its current secured loan investment of $3-million with a wholly owned subsidiary of Powerbank Corp. The company and Powerbank agreed to extend the term of the loan agreement by one year, and, concurrently, increased the interest rate on the loan to 12 per cent per annum and the existing royalty rate to 0.80 per cent. If the loan is repaid within six months, the royalty rate will be decreased to 0.65 per cent.

Bernard Tan, chief executive officer of RE Royalties, commented: "This extension demonstrates the successful long-term partnership between the company and Powerbank, by providing support for Powerbank's growing portfolio of solar and battery storage projects. The extension underscores the value of royalty-based capital for renewable energy developers and operators seeking long-term stability and scalability."

Repayment of Series 1 green bonds

During the fourth quarter, the company has substantially repaid its maturing Series 1 green bonds of approximately $10-million, with the final tranche of $300,000 due for repayment in first quarter 2026.

This milestone marks five years since the launch of RE Royalties' innovative green bond program, an initiative designed to mobilize private capital toward renewable energy and energy efficiency projects.

The company's Green Bond Framework received a dark green rating, the highest possible level, from S&P Global Ratings shades of green, reflecting the quality and climate-aligned impact of the projects financed through the program.

"We would like to thank our green bond investors for supporting our inaugural issuance of our green bonds. During this term, we financed and refinanced renewable and sustainable energy projects that are anticipated to reduce or offset greenhouse gas emissions and assist in mitigating the impact of climate change," commented Mr. Tan.

Appointment of Ms. Blain to the board of directors

The company is pleased to announce the appointment of Ms. Blain to the board of directors after the company's annual general meeting of shareholders on Dec. 8, 2025, replacing Paul Larkin, who did not stand for re-election at the AGM.

Ms. Blain is co-founder and managing partner of Deetken Impact, where she leads finance, operations and new business initiatives. Deetken Impact is a Canadian impact asset manager with decades of experience delivering strong, stable returns through investments in climate finance, women's empowerment and impact enterprises in Latin America and the Caribbean. Prior to Deetken Impact, Ms. Blain was an executive with African Alliance, a pan-African financial service group,, and an associate with the Canada Pension Plan Investment Board and the Macquarie Group in Toronto. Ms. Blain currently serves as a director on UBC Investment Management's board of directors and was also recognized as one of Vancouver's top 40 under 40 by Business in Vancouver magazine. Ms. Blain is a CFA charterholder and a chartered business valuator, and holds an MA in financial economics from the University of Toronto.

"On behalf of the board and shareholders, we are pleased to welcome Ms. Alexa Blain to the board. As a dedicated long-term shareholder of the company with extensive global experience in climate finance, her experience will be invaluable as we focus on growing our portfolio," commented Marchand Snyman, chairman of the board.

"Furthermore, we also extend our sincere gratitude to Mr. Paul Larkin for his contributions to the company, having served on the board since 2019. Paul was instrumental in the company's public listing, and his experience in the renewable energy sector and knowledge of capital markets were important in guiding the company's growth."

Listing on the Frankfurt Stock Exchange

The company is pleased to announce that its common shares have commenced trading on the Frankfurt Stock Exchange under the symbol Y2V. The FSE is one of the world's leading trading venues, recognized for its international investor base and deep capital markets. This cross-listing significantly expands RE Royalties' reach to European and global investors, and complements its primary listing on the TSX Venture Exchange.

"Our Frankfurt listing marks an important step in broadening our global presence. Europe is at the forefront of renewable energy investment, and this listing enhances our visibility among a wider international investor base. This listing will enhance trading liquidity for the company's shares, provide broader access to European and international investors, and strengthen global awareness of RE Royalties' role in financing renewable energy projects," commented Mr. Tan.

Declaration of dividend

The company also announces that the board of directors of the company has declared a cash distribution of one cent per issued and outstanding common share. The distribution is payable on Jan. 21, 2026, to shareholders of record on Dec. 31, 2025. The distribution is designated by the company to be a dividend for the purpose of the Income Tax Act (Canada) and any similar provincial or territorial legislation.

The board approved a change in the company's dividend policy from a quarterly declaration to an annual declaration. This pro-active decision is designed to enhance the company's financial flexibility to capitalize on the growing number of high-quality renewable energy opportunities in its investment pipeline. This focused capital allocation is expected to deliver stronger long-term outcomes for both the company and its shareholders.

The company remains intensely focused on unlocking growth in the renewable energy sector and continuing to leverage its proven royalty model to support developers and operators, build long-term recurring revenues, and deliver measurable environmental and social impact.

The declaration, timing, amount and payment of future dividends remain subject to the discretion and approval of the board of directors, based on factors including capital allocation, financial position, profitability, cash flow, debt covenant compliance, legal requirements and other factors considered relevant. As such, no assurances can be made that any future dividends will be declared and/or paid.

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, hydro, battery storage, energy efficiency and renewable natural gas projects in North America, South America and Asia. 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.