Mr. Alex Pernin reports

STAR ROYALTIES ANNOUNCES STRATEGIC INVESTMENT BY CENOVUS ENERGY INTO GREEN STAR ROYALTIES

Star Royalties Ltd. has noted the closing of a strategic investment into Green Star Royalties Ltd. by Cenovus Energy Inc. for total consideration of $21.2-million. Following this strategic investment, Cenovus will own 25.9 per cent of the common shares of Green Star along with the right to invest alongside Green Star in high-integrity carbon projects.

Green Star now operates as a joint venture between Star Royalties, Agnico Eagle Mines Ltd., Cenovus, and certain members of Star Royalties' and Green Star's management teams and boards of directors.

The strategic investment adds another leading Canadian natural resources and environmental, social and governance (ESG) sector leader as a strategic shareholder of Green Star following Agnico Eagle's strategic investment in Green Star in May, 2022. Following the strategic investment, the company retains ownership of approximately 45.9 per cent of Green Star's common shares, Agnico Eagle and Cenovus each own approximately 25.9 per cent of the common shares, and the remaining 2.3 per cent is owned by management.

BMO Capital Markets and TD Securities Inc. are acting as financial advisers to Green Star. Green Star intends to undertake a brokered private placement (the follow-on offering) with management participation. Completion of the follow-on offering will be subject to, among other things, approval of the TSX Venture Exchange.

Investment highlights:

• Second cornerstone shareholder: Cenovus, a senior Canadian-based integrated energy company, becomes a key shareholder and cornerstone joint venture partner in Green Star.
• Support of business model: The strategic investment further supports Green Star's position as a leader in innovative carbon finance, recognizing Green Star's portfolio of North American nature-based carbon royalties, investment pipeline and carbon industry expertise.
• Expanded Green Star board and technical committee: Green Star's board of directors and technical committee will include two appointees from each of Star Royalties, Agnico Eagle and Cenovus.
• Pathway to grow Green Star: proceeds from the strategic investment and the proposed follow-on offering are expected to accelerate Green Star's ability to execute on its pipeline of advanced-stage opportunities with the potential to generate further value accretion.

Alex Pernin, chief executive officer of Star Royalties, commented: "We are honoured to have Cenovus become Green Star's second cornerstone joint venture partner. We welcome their participation and expertise as not only a highly reputable senior Canadian energy company, but also a sustainability leader in their industry. Green Star's carbon investment strategy continues to be based on quality, scalability, longevity and integrity, and with two leading natural resource companies as joint venture partners, we believe we are strongly positioned to be the quality leader and financing partner of choice in this growing sector.

"Green Star's objective is to originate high-quality North American carbon offset projects. We began our journey by innovating the first carbon offset royalties and are now progressing our regenerative agriculture and improved forest management investments towards first offset issuance and royalty cash flow. We look forward to deploying additional capital into our growing investment pipeline of projects spanning regenerative agriculture, improved forest management, reforestation, livestock enteric methane reduction, grasslands, biochar and other category types."

"Sustainability considerations help shape everything we do," said Rhona DelFrari, chief sustainability officer and executive vice-president, stakeholder engagement, at Cenovus. "This investment aligns with our focus on being a sustainability leader and provides new opportunities for business growth and development in this emerging sector. We look forward to participating at the board and technical committee levels to advance the strategic goals of the organization."

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 pure-green joint venture, Green Star, 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.

We seek Safe Harbor.