Mr. Kevin MacLean reports

STAR ROYALTIES HIGHLIGHTS PRELIMINARY ECONOMIC ASSESSMENT AT SABRE GOLD'S COPPERSTONE GOLD MINE

Star Royalties Ltd. has highlighted the results of a preliminary economic assessment (PEA) on the Copperstone gold mine, announced by Sabre Gold Mines Corp. on June 20, 2023.

All amounts are in U.S. dollars, unless otherwise indicated.

PEA highlights:

• Robust posttax economics result in a base case ($1,800/ounce gold) after-tax internal rate of return of 50.3 per cent, low initial capital of $36-million and benefit from significant tax assets as well as recently reduced royalty encumbrance;
• PEA supports a high-grade gold underground mining operation with an average annual production of 40,765 ounces gold over a 5.5-year mine life with an all-in sustaining cost of $1,290/oz gold;
• Sabre Gold will continue to have discussions with potential providers of initial construction capital while earthworks are expected to commence as soon as a formal construction decision is made;
• PEA mine plan prioritizes high-grade portions of the resource in early years to result in a payback period of less than two years, while generating nearly $90-million in after-tax cumulative undiscounted cash flow.

Kevin MacLean, chief investment officer of Star Royalties, commented: "We are pleased to see the results of Copperstone's PEA. While the project's timing has been behind our expectations, we are encouraged by recent developments. This includes a non-core asset sale for $7-million, debt reduction and the buyback of a 3-per-cent royalty on the property. The fully permitted project's robust IRR even at the base case scenario of $1,800/oz gold demonstrates the rationale of our investment into this project. To maintain these robust project economics, Star Royalties and Sabre Gold have agreed to forego the third $6-million tranche of Star Royalties' stream investment as originally contemplated, with a corresponding one-third decrease in its originally proposed gold entitlement under the stream. This will provide Sabre Gold greater flexibility to include other forms of financing in its construction capital. We look forward to seeing a concrete pathway to bring this promising asset to production."

Capital and operating costs

Under the PEA, the initial capital cost of Copperstone is $36.3-million, to be incurred over a 14-month period postfinancing, and includes construction and ramp-up to full production. Sustaining capital over the life of mine is estimated at $52.1-million, with over 60 per cent spent in operating years 1 to 3 for the underground mine development and tailings management facilities.

About Star Royalties Ltd.

Star Royalties is a precious metals and carbon credit royalty and streaming company. The company innovated the world's first carbon credit royalties in forestry and regenerative agriculture through its majority-owned, pure-green joint venture, Green Star Royalties Ltd., and offers investors exposure to precious metals and carbon credit prices. The company's objective is to provide wealth creation by originating accretive transactions with superior alignment to both counterparties and shareholders.

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