Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. ANNOUNCES COMPLETION OF BMO ACQUISITION OF AIR MILES REWARD PROGRAM BUSINESS AND JUNE 2023 CASH DIVIDEND

On June 1, 2023, the Bank of Montreal issued a news release confirming BMO completed its previously announced acquisition of the Air Miles reward program business from LoyaltyOne Co. In addition, the company's board of directors has approved a cash dividend of two cents per common share for the period of June 1, 2023, to June 30, 2023, which is equal to 24 cents per common share on an annualized basis. The dividend will be paid on June 30, 2023, to shareholders of record as of the close of business on June 15, 2023.

BMO completes acquisition of Air Miles reward program business

According to the BMO news release, BMO completed the Air Miles acquisition on June 1, 2023. The BMO news release described the Air Miles acquisition as a made-in-Canada opportunity to reinvigorate one of Canada's most celebrated loyalty programs for all Canadians collecting Air Miles reward miles, as well as partners across the country. The BMO news release also noted that, in the coming months, Air Miles plans to introduce a wide range of new program enhancements including:

• An improved travel booking platform featuring richer offers, more ways to book travel and new ways for collectors to earn miles;
• A new and innovative way for collectors to earn bonus miles in connection with eligible purchases through receipt scanning, rolling out first for collectors in Atlantic Canada with other regions to follow;
• New opportunities to earn and redeem miles with top Canadian brands in categories including fashion, travel, grocery, meal delivery, home goods and technology;
• Leveraging Air Miles' industry-leading insights and technology to bring more value to the collector and partner experience.

The company's wholly owned subsidiary AM Royalties Limited Partnership (AM LP) owns the Canadian Air Miles trademarks and certain related Canadian intellectual property rights. Prior to the Air Miles acquisition, AM LP licensed the Air Miles rights to LoyaltyOne Co. for use in the Air Miles reward program business in Canada in accordance with the terms of two licence agreements. In connection with the Air Miles acquisition, the Air Miles licences were assigned to, and assumed by, an affiliate of BMO, and remain in full force and effect. BMO has confirmed to the company that the remaining uncollected Q1 2023 royalty income of approximately $800,000 will be paid to AM LP in the near term.

About Diversified Royalty Corp.

The company is a multiroyalty corporation, engaged in the business of acquiring top-line royalties from well-managed multilocation businesses and franchisors in North America. Its objective is to acquire predictable, growing royalty streams from a diverse group of multilocation businesses and franchisors.

It currently owns the Mr. Lube, Air Miles, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres and Stratus Building Solutions trademarks. Mr. Lube is the leading quick lube service business in Canada, with locations across Canada. Air Miles is Canada's largest coalition loyalty program. Sutton is among the leading residential real estate brokerage franchisor businesses in Canada. Mr. Mikes operates casual steakhouse restaurants primarily in Western Canadian communities. Nurse Next Door is one of North America's fastest growing home care providers with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is one of Canada's leading franchised supplemental education services. Stratus Building Solutions is a leading commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning and office cleaning services primarily in the United States.

The company's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. It intends to continue to pay a predictable and stable monthly dividend to shareholders and increase the dividend over time, in each case as cash flow per share allows.

We seek Safe Harbor.