Mr. Sean Morrison reports

DIVERSIFIED ROYALTY CORP. ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL PUBLIC OFFERING OF COMMON SHARES TO $47 MILLION

Due to strong demand, Diversified Royalty Corp. has entered into a revised agreement with a syndicate of investment dealers led by CIBC Capital Markets to increase the size of the previously announced bought deal treasury offering. Under the revised agreement, the underwriters have agreed to purchase 17.67 million common shares from the treasury of the corporation at a price of $2.66 per common share for total gross proceeds of approximately $47-million.

In addition, the corporation has granted the underwriters an option to purchase up to an additional 2,650,500 common shares from the treasury of the corporation at the offering price for additional gross proceeds of up to approximately $7-million for market stabilization purposes and to cover overallotments, if any. The overallotment option is exercisable, in whole or in part, by the underwriters at any time up to 30 days following the closing of the offering.

The net proceeds of the offering will be used to partially repay outstanding amounts under Diversified Royalty's acquisition facility following Diversified Royalty's acquisition, on Oct. 4, 2023, of trademarks and certain other intellectual property used by BarBurrito Restaurants Inc. in Canada in its business of franchising, licensing and operating quick-service Mexican restaurants.

The offering will be made by way of a prospectus supplement to the corporation's existing short form base shelf prospectus dated June 19, 2023. The prospectus supplement will be filed with the securities commissions in all provinces and territories of Canada, except Quebec. The offering documents will contain important detailed information about the securities being offered. Copies of the underwriting agreement and the offering documents will be available by visiting the corporation's profile on SEDAR+.

The closing of the offering is expected to occur on or about Feb. 23, 2024, and is subject to regulatory approval, including that of the Toronto Stock Exchange.

About Diversified Royalty Corp.

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

Diversified Royalty currently owns the Mr. Lube + Tires, Air Miles, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires 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 a home care provider with locations across Canada and the United States, as well as in Australia. Oxford Learning Centres is one of Canada's leading franchisee 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. BarBurrito is the largest quick-service Mexican restaurant food chain in Canada.

Diversified Royalty's objective is to increase cash flow per share by making accretive royalty purchases and through the growth of purchased royalties. Diversified Royalty 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.