Star Royalties — Investor Presentation (July 2022)
38 slides from Star Royalties's investor presentation, July 2022
Slide 1: Originating Royalties in Precious Metals and Carbon Credits in North America
Originating Royalties in Precious Metals and Carbon Credits in North America July 2022
Slide 2: Cautionary Notes
Cautionary Notes This corporate presentation includes market and industry data and forecasts 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 is a Precious Metals and Carbon Credit 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$48M invested in 8 r
Slide 4: Green Star Royalties Investment Rationale
Green Star Royalties Investment Rationale Pure Green Vehicle to Deploy Growing Sustainable Capital: ▪ Exceptional scalability potential demonstrated through 4x expansion of regenerative agriculture program ▪ Green business model validated via 35% private placement by Agnico Eagle ▪ Leverage tremendo
Slide 5: Rapidly Growing Portfolio of Carbon Credit Royalties
Rapidly Growing Portfolio of Carbon Credit Royalties ▪ Originator of premium CC projects in both compliance and voluntary carbon markets ▪ Existing royalty portfolio of nature-based projects to generate ~570,000 CC/year ▪ Prioritize North American investments with cash-flow visibility ▪ Exceptional
Slide 6: Agnico Eagle Strategic Investment to Expedite Growth
Agnico Eagle Strategic Investment to Expedite Growth ▪ Agnico Eagle acquired 35% of Green Star for C$14.1M ▪ Co-investment potential to accelerate larger green pipeline projects ▪ Transaction assigned ~C$40.4M initial value to Green Star prior to quadrupling of flagship regenerative agriculture prog
Slide 7: Flagship Regenerative Ag Project Expanded Fourfold
Flagship Regenerative Ag Project Expanded Fourfold 1 Originating Carbon Offset Credits Project to generate revenues equivalent to over 560k carbon offset credits to Green Star 2 Demonstrating Significant Scalability Initial 320k-acre project expanded to 1.32M acres on strong enrollment demand. 1B ac
Slide 8: Existing Portfolio and Current Opportunities
Existing Portfolio and Current Opportunities ▪ Strategic investment, co-investments with Agnico Eagle to accelerate pipeline, access to larger green projects ▪ Competitive advantage through collaboration with Bluesource, North America’s leading carbon offset developer Investment Investment (C$M) Loc
Slide 9: Company Overview
> = i ’ pA STAR Company Overview erat (ame ROYALTIES LTD.
Slide 10: North American Focus with Cash Flow Visibility
North American Focus with Cash Flow Visibility BAYAN UNDUR EMS FOREST Copper-Silver Carbon Sequestration 2% NSR Royalty 40.5% GR Royalty Exploration Development BAAVHAI UUL ELK GOLD Lithium Gold-Silver MOBISMART 1.5% GR Royalty 2% NSR Royalty Exploration Renewable Tech Production 2.5% GR Royalty Ope
Slide 11: Growing and Cash-Flowing Asset Portfolio
Growing and Cash-Flowing Asset Portfolio Estimated Revenues1 (US$M) Asset NAV2 by Commodity 25 3% 20 28% 15 10 5 69% 0 2022E 2023E 2024E 2025E Copperstone Elk Gold Keysbrook Regen Ag MOBISMART EMS Forest LSFN Forest Precious Metals Green Other Attributable Gold Equivalent Ounces3 Attributable Carbon
Slide 12: Experienced Management of Capital Allocators
Experienced Management of Capital Allocators Disciplined Team: 100+ Years of Industry Experience 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 13: 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 14: ESG is Core to Founding Principles
ESG is Core to Founding Principles Environmental ▪ Green Star: mandate to invest in pure-green initiatives with no mining assets ▪ CC: regenerative agriculture and forest conservation projects; scalable business with near-term cash flow ▪ Investment policy: no hydrocarbons Social ▪ Indigenous commun
Slide 15: Investment Snapshot
Investment Snapshot TSX-V: STRR; OTCQX: STRFF Capitalization Ownership Almadex Minerals Ltd., Management and Board, Share Price (July 4, 2022) C$0.52 2.3% 7.7% 52-Week High/Low C$0.75 – C$0.42 Market Capitalization C$38M Cash / Debt (March 31, 2022) US$2.9M / Nil Institutional Investors, Book Value
Slide 16: Differentiated Royalties Investment Proposition
Differentiated Royalties Investment Proposition Investment Rationale Summary: ▪ Execute on pipeline of precious metals ▪ Flagship Regen Ag program expansion opportunities demonstrates growing critical mass ▪ Elk Gold production ramp-up and continued ▪ Strategic investment by Agnico Eagle accelerates
Slide 17: Appendix
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Slide 18: CarbonNOW Carbon Farming Program
CarbonNOW® Carbon Farming Program Partnership between Green Star, Bluesource and Locus AG: ▪ Rapid interest from U.S. farmers based on key differentiators: ▪ Upfront payments and guaranteed minimums ▪ Performance bonuses that accrue for larger long-term payouts ▪ Premium carbon credits and secure bu
Slide 19: Regenerative Agriculture Project: ~560,000 CC/year
Regenerative Agriculture Project: ~560,000 CC/year Regenerative Agriculture Project ▪ Regenerative agriculture aims to promote topsoil health regeneration and to rebuild soil organic matter while improving water management, reducing or eliminating nitrogen-based fertilizers, increasing biodiversity,
Slide 20: EMS Forest Carbon Offset Project: ~9,000 CC/year
EMS Forest Carbon Offset Project: ~9,000 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 21: LSFN Forest Carbon Offset Project: ~2,500 CC/year
LSFN Forest Carbon Offset Project: ~2,500 CC/year ▪ Government of Canada mandated minimum standards for carbon Lac Seul First Nation Forest pricing across Canada and implemented federal program applied to greenhouse gas (“GHG”)-emitting industrial facilities in several provinces, including Ontario ▪
Slide 22: MOBISMART Royalty: High-Growth Renewable Tech
MOBISMART Royalty: High-Growth Renewable Tech MOBISMART ▪ Private, operating company headquartered in Toronto, Canada, specializing in mobile, easily-deployable, off-grid power generation and storage and containerized solutions ▪ Integrated product offering includes mobile trailers (solar and/or win
Slide 23: Elk Gold Royalty Highlights
Elk Gold Royalty Highlights Investment Rationale 1 Cash-Flowing Asset Operations commenced late in 2021; First revenues received in February 2022 2 Tier 1 Jurisdiction British Columbia, Canada 3 Value Accretion and Asset Diversification Accretive on NAV and per-share metrics before considering upsid
Slide 24: 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 25: 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 26: 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 and commercial
Slide 27: 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 (H1 2023E 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 produce
Slide 28: Keysbrook Royalty: Cash Flow in Australia
Keysbrook Royalty: Cash Flow 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, Aust
Slide 29: 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 30: 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 Star valuation premiums (1.5-2.0x NAV expected) ▪ +144 Canadian ESG funds available in 2021, +41 since 2020 ▪ C$334M
Slide 31: Improving the ESG Scorecard Process
Improving the ESG Scorecard Process Carbon Negative Footprint Allows for Quantifiable ESG Scorecard Improvements Sample Corporate ESG Scorecard TSX.V: STRR 30 OTCQX: STRFF
Slide 32: Targets: Paris Agreement
Targets: Paris Agreement ▪ Signed in 2016 by 196 nations to reduce 2030 Emissions Gaps (CAT projections and resulting emissions GHG emissions gaps in meeting the 1.5°C Paris Agreement target) ▪ Objective: limit global temperature increase to below 2°C above pre-industrial levels; secondary aggressiv
Slide 33: Markets: Compliance
Markets: Compliance Compliance (Mandatory) Map of international, national or regional compliance carbon pricing initiatives ▪ Created and regulated by international, national or regional carbon reduction regimes; goal of mandating emitters to account for and achieve legal compliance with GHG emissio
Slide 34: Markets: Compliance
Markets: Compliance ▪ Global compliance carbon offset prices (driven IHS Markit Global Carbon Index (global weighted average by EU ETS) currently at all-time highs carbon credit price in US$/tCO2e) ▪ Consensus forecasts see significantly higher carbon offset pricing (in both compliance and voluntary
Slide 35: 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 a voluntary basis with no compliance requirements ▪ Significant expected increas
Slide 36: 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 37: 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) Measured 169 10.3 10.9 56 Indicated 4,190 5.4 11.0 750 M&I 4,359 5.6 11.0 806 Inferred 1,497 5.3 14.4 262 TSX.V: STRR 36 OTCQX: STRFF
Slide 38: Alex Pernin, P.Geo. Dmitry Kushnir, CFA
| Alex Pernin, P.Geo. Dmitry Kushnir, CFA Chief Executive Officer & Director Head of Investor Relations M. +1 647 801 3549 M. +1 647 287 3846 apernin@starroyalties.com dkushnir@starroyalties.com 37