Star Royalties — Investor Presentation (July 2022)
25 slides from Star Royalties's investor presentation, July 2022
Slide 1: Originating Premium Nature-Based North American Carbon Credits
T S X . V: S T R R OTCQX: STRFF Originating Premium Nature-Based North American Carbon Credits Corporate Presentation July 2022 0
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: 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 Mines (NYSE, TSX :
Slide 4: Rapidly Growing Portfolio of Carbon Credit Royalties
Rapidly Growing Portfolio of Carbon Credit Royalties ▪ Originator of premium carbon credit1 (“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 visibi
Slide 5: 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 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$40.4M initial value to Green Star prior to quadrupling of flagship regenerative agriculture prog
Slide 7: North American Focus with Cash Flow Visibility
North American Focus with Cash Flow Visibility EMS FOREST Carbon Sequestration 40.5% GR Royalty Development Estimated Green Star Revenues (US$M)1 14 12 10 8 6 MOBISMART LSFN FOREST Renewable Tech 4 Carbon Sequestration 2.5% GR Royalty 16% GR Royalty Operating Development 2 0 2022E 2023E 2024E 2025E
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: 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 10: 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 9 OTCQX: STRFF
Slide 11: Experienced Management of Capital Allocators
Experienced Management of Capital Allocators Star Management to Operate Green Star While Private 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 12: 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 Social ▪ Indigenous communities: existing partnerships on royal
Slide 13: Investment Snapshot
Investment Snapshot TSX-V: STRR; OTCQX: STRFF Capitalization Ownership Almadex Minerals Ltd., Management and Board, Share Price (June 27, 2022) C$0.53 2.3% 7.7% 52-Week High/Low C$0.75 – C$0.42 Market Capitalization C$39M Cash / Debt (March 31, 2022) US$2.9M / Nil Institutional Investors, Book Value
Slide 14: A Differentiated Carbon Credit Royalties Investment
A Differentiated Carbon Credit Royalties Investment Investment Rationale Summary: ▪ Flagship Regen Ag program expansion demonstrates growing critical mass ▪ Strategic investment by Agnico Eagle accelerates growth trajectory and access to larger projects ▪ Focus on originating new carbon projects in
Slide 15: Asset Portfolio
Asset Portfolio 14
Slide 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: Alex Pernin, P.Geo. Dmitry Kushnir, CFA
| Alex Pernin, P.Geo. Dmitry Kushnir, CFA Chief Executive Officer & Director Vice President, Investor Relations M. +1 647 801 3549 M. +1 647 287 3846 apernin@starroyalties.com dkushnir@starroyalties.com 24