Star Royalties — Investor Presentation (December 2021)
35 slides from Star Royalties's investor presentation, December 2021
Slide 1: Carbon Negative Gold
CARBON NEGATIVE GOLD N e g a t ive C O 2 Em i s s i on s p e r O u n c e December 2021
Slide 2: Cautionary Notes
Cautionary Notes This corporate presentation includes market and industry data and forecast that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that the information therein has been obtained from sources believed
Slide 3: Royalties with a Carbon Negative Footprint
Royalties with a Carbon Negative Footprint Star Royalties (“STRR”) is a precious metals and green royalty and streaming company ▪ World’s first carbon negative gold royalty platform and innovator of carbon credit1 (“CC”) royalties ▪ Focus on creating royalties and streams with ~US$26M invested in 6
Slide 4: Creation of Green Star Royalties
Creation of Green Star Royalties STRR has created a pure-green CC royalty subsidiary, Green Star Royalties (“GREEN”) to: ▪ Expand green strategy for expedited public offering ▪ Execute on growing pipeline of high-return opportunities ▪ Capitalize on bullish carbon pricing outlook ▪ Leverage rapid gr
Slide 5: STRR: Carbon Negative Gold
STRR: Carbon Negative Gold ▪ Carbon Negative Gold: gold exposure with negative carbon footprint ▪ Expanding net negative CO2 balance through capital allocation mandate ▪ Unique strategy improves investors’ ESG scorecards Corporate CO2 Profile (tonnes) 3,000 2,000 1,000 0 2021E 2022E 2023E 2024E 2025
Slide 6: Originating New Carbon Credits to Meet Rapidly Growing Demand
Originating New Carbon Credits to Meet Rapidly Growing Demand
Slide 7: Rapid Growth in Global ESG Fund Assets
Rapid Growth in Global ESG Fund Assets ▪ ESG fund assets to grow to ~US$53T by 2025E ESG: ETF Inflow Projections ▪ Limited investment opportunities creates potential for strong GREEN valuation premiums (1.5-2.0x NAV expected) ▪ +144 Canadian ESG funds available in 2021, +41 since 2020 ▪ C$334M in Ca
Slide 8: Improving the ESG Scorecard Process
Improving the ESG Scorecard Process Carbon negative footprint allows for quantifiable ESG scorecard improvements Sample Corporate ESG Scorecard1 TSX.V: STRR 7 OTCQX: STRFF
Slide 9: GREEN Royalty Model
GREEN Royalty Model Origination and Cash Flow Focus ▪ Pioneered first CC royalty in 2020 and advancing new green royalties ▪ Generation of ~5,500 CC per annum from 2 existing forest CC royalty projects ▪ Originate premium CC projects in both compliance and voluntary carbon markets ▪ Prioritize North
Slide 10: Existing Portfolio and Current Opportunities
Existing Portfolio and Current Opportunities ▪ GREEN progressing discussions with strategic capital partner to accelerate growth ▪ Collaborating with largest US environmental project developer to drive competitive advantage Investment Investment (C$M) Location Total CC Potential Type LSFN Forest Roy
Slide 11: Company Overview
> = i ’ pA STAR Company Overview starr (ame
Slide 12: Targeting Tier 1 Investment Jurisdictions
Targeting Tier 1 Investment Jurisdictions BAYAN UNDUR EMS FOREST Copper-Silver Carbon Sequestration 2% NSR Royalty 13.5% GR Royalty Exploration Development BAAVHAI UUL Lithium 1.5% GR Royalty Exploration ELK GOLD Gold-Silver 2% NSR Royalty Production LSFN FOREST KEYSBROOK COPPERSTONE Carbon Sequestr
Slide 13: Growing and Cash-Flowing Asset Portfolio
Growing and Cash-Flowing Asset Portfolio Estimated Revenues1 (US$M) 12 ▪ Expecting 80% CAGR in revenue growth 10 (2021E-2025E) 8 6 ▪ Free cash flowing portfolio in place 4 2 0 2021E 2022E 2023E 2024E 2025E Copperstone Elk Gold Keysbrook EMS Forest LSFN Forest Asset NAV2 by Jurisdiction Asset NAV2 by
Slide 14: Experienced Management of Capital Allocators
Experienced Management of Capital Allocators Proven Leadership Team with Multiple Industry Experts Tony Lesiak Kevin MacLean Executive Chairman Chief Investment Officer Tony Lesiak, Executive Chairman: Ranked analyst Alex Pernin, CEO: P.Geo., Barrick Gold capital allocation Kevin MacLean, CIO: P.Eng
Slide 15: Board of Directors Focused on Diversity, Governance
Board of Directors Focused on Diversity, Governance Majority Independent, with Strong Alignment to ESG Principles Kylie Dickson Tony Lesiak Belinda Labatte BBA, CPA, CA Executive Chairman MBA, CFA, ICD.D Independent Director Independent Director Alex Pernin CEO and Director Jay Layman Beatriz Orrant
Slide 16: ESG is Core to Founding Principles
ESG is Core to Founding Principles Environmental ▪ GREEN: mandate to invest in pure-green initiatives with no mining assets ▪ CC: 2 existing forest conservation projects; scalable business with near-term cash flow ▪ Investment policy: no hydrocarbons Social ▪ Indigenous Communities: committed to par
Slide 17: Investment Snapshot
Investment Snapshot TSX-V: STRR; OTCQX: STRFF Capitalization Ownership Almadex Minerals Management Share Price (November 30, 2021) C$0.61 Ltd., 2.3% and Board, 7.1% 52-Week Close High/Low C$0.64 – C$0.42 Market Capitalization C$44.4M Cash / Debt (September 30, 2021) US$4.3M / Nil Book Value (Septemb
Slide 18: Meaningful Rerating Potential
Meaningful Rerating Potential Near-Term Catalysts and Valuation ▪ Execute on pipeline of precious metals and green opportunities ▪ Elk Gold production ramp-up and exploration success ▪ Copperstone advancing towards production ▪ Current STRR valuation at deep discounts on key metrics ▪ Free upside to
Slide 19: Appendix
> i ’ pA STAR Rependiy sTReF stan
Slide 20: Elk Gold Royalty Highlights
Elk Gold Royalty Highlights Investment Rationale 1 Imminent Revenue Operations commenced, first revenue generation expected in Q4 2021 2 Tier 1 Jurisdiction British Columbia, Canada 3 Value Accretion and Asset Diversification Accretive on NAV and per-share metrics before considering upside 4 Long Li
Slide 21: Elk Gold Royalty: Wealth Creation in Canada
Elk Gold Royalty: Wealth Creation in Canada Gold Mountain Mining Corp. (TSXV: GMTN, OTCQB: GMTNF, FRA: F5XFA) Operators Ore trucked and processed at New Gold Inc.’s (TSX, NYSE American: NGD) New Afton processing plant under long-term ore purchase agreement Location British Columbia, Canada Stage Pro
Slide 22: Elk Gold Offers Meaningful Exploration Upside
Elk Gold Offers Meaningful Exploration Upside ▪ Extensive brownfield and greenfield exploration upside on royalty-covered land package ▪ Current resource envelope open in multiple directions ▪ Historically low finding costs of ~C$8/oz ▪ C$1M of exploration expenditure implies ~C$4.5M of payable gold
Slide 23: Copperstone Gold Stream Highlights
Copperstone Gold Stream Highlights Investment Rationale1,2 1 Tier 1 Jurisdiction Arizona, USA 2 Expertise at Sabre Gold Experienced underground mine developer 3 Lower Risk Restart Fully permitted with significant (+US$100M) infrastructure on site 4 Short Timeline to Production Restart expected in Q2
Slide 24: Copperstone Gold Stream: Near-Term US Cash Flow
Copperstone Gold Stream: Near-Term US Cash Flow Operator Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: AGAUF) Location Arizona, USA Stage Construction (2022E restart) Commodity Gold < 21,000 oz 21,001–27,200 oz > 27,200 oz Stream Terms1 9.9% 3.3% 1.2% of gold produced of gold produced of gold produced S
Slide 25: Keysbrook: Cash Flowing Royalty in Australia
Keysbrook: Cash Flowing Royalty in Australia Operator Keysbrook Leucoxene Pty Ltd Location Western Australia, Australia Stage Production Commodity Mineral Sands (Titanium, Zircon) Terms 2.0% Gross Revenue Royalty ▪ Open pit mineral sands mine located 70 km south of Processing Facilities Perth, WA, A
Slide 26: LSFN Forest Carbon Offset Pilot Project
LSFN Forest Carbon Offset Pilot Project: ~2,500 CC/yr Lac Seul First Nation Forest ▪ Government of Canada mandated minimum standards for carbon pricing across Canada and implemented federal program applied to greenhouse gas (“GHG”)-emitting industrial facilities in several provinces, including Ontar
Slide 27: EMS Forest Carbon Offset Project
EMS Forest Carbon Offset Project: ~3,000 CC/year Elizabeth Metis Settlement Forest ▪ Government of Canada mandated minimum standards for carbon pricing across Canada and implemented federal program applied to GHG-emitting industrial facilities in several provinces, including Ontario ▪ Reforestation
Slide 28: Exploration
Exploration Bayan Undur Baavhai Uul Operator Aranjin Resources Ltd. Operator Ion Energy Ltd. Location Mongolia Location Mongolia Stage Advanced Exploration Stage Early Exploration Commodity Copper, Silver Commodity Lithium (brine) 2% Net Smelter Return Royalty (with ROFR on any future Terms 1.5% Gro
Slide 29: Targets: Paris Agreement
Targets: Paris Agreement ▪ Signed in 2016 by 196 nations to reduce 2030 Emissions Gaps (CAT projections and resulting emissions GHG emissions gaps in meeting the 1.5°C Paris Agreement target) ▪ Objective: limit global temperature increase to below 2°C above pre-industrial levels; secondary aggressiv
Slide 30: Markets: Compliance
Markets: Compliance Compliance (Mandatory) Map of international, national or regional compliance carbon pricing initiatives ▪ Created and regulated by international, national or regional carbon reduction regimes; goal of mandating emitters to account for and achieve legal compliance with GHG emissio
Slide 31: Markets: Compliance
Markets: Compliance ▪ Global compliance carbon offset prices (driven IHS Markit Global Carbon Index (global weighted average by EU ETS) currently at all-time highs carbon credit price in US$/tCO2e) ▪ Consensus forecasts see significantly higher carbon offset pricing (in both compliance and voluntary
Slide 32: Markets: Voluntary
Markets: Voluntary Voluntary Global demand for voluntary carbon credits could increase ▪ Trading of carbon credits by corporations, institutions by 15x by 2030 and 100x by 2050 and individuals to offset GHG emissions on voluntarily basis with no compliance requirements ▪ Significant expected increas
Slide 33: Copperstone Technical Disclosure
Copperstone Technical Disclosure Mineral Resource Statement Mineral Reserve Statement Mineral Au Grade Contained Metal Mineral Au Grade Contained Metal Tonnes (kt) Tonnes (kt) Resources (g/t) (koz Au) Reserves (g/t) (koz Au) Measured 806 7.6 196 Proven 347 7.3 81 Indicated 502 6.8 110 Probable 455 6
Slide 34: Elk Gold Technical Disclosure
Elk Gold Technical Disclosure Mineral Resources Tonnes (kt) Au Grade (g/t Au) Ag Grade (g/t Ag) Contained Metal (koz AuEq) Open Pit-Constrained Measured 196 9.8 9.9 63 Indicated 2,835 5.0 9.2 468 M&I 3,031 5.3 9.3 531 Inferred 835 3.5 6.5 96 Underground-Constrained Measured 0 0.0 0.0 0 Indicated 313
Slide 35: Alex Pernin, P.Geo. Peter Bures
| Alex Pernin, P.Geo. Peter Bures Chief Executive Officer & Director Chief Business Development Officer M. +1 647 801 3549 M. +1 437 997 8088 apernin@starroyalties.com pbures@starroyalties.com 34
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