Mr. Tim Gallagher reports

ROYALTIES INC. INVESTEE COMPANY MUSIC ROYALTIES INC. PAYS MILESTONE 80TH MONTHLY DIVIDEND

Royalties Inc. had a $2.5-million investment in Music Royalties Inc. (MRI), generating $181,800 in dividends per year. Royalties has received over $400,000 in MRI dividends since 2022. MRI just announced a milestone payment of its 80th dividend representing a cumulative 20.2 cents per share in dividends and over $16-million paid to shareholders since 2019. The 3.6 cents per share in distributions per year is a 7.2-per-cent after-tax yield.

MRI's yield is 3.5 times the S&P/TSX 60 dividend yield of 2 per cent and seven times the S&P 500 dividend yield of 1 per cent, which is currently at an all-time low due to the artificial intelligence stock-driven rally.

The attached table is a ranking of MRI's most played songs in which it has a financial interest.

About Royalties Inc.

• Royalties owns a 100-per-cent interest, subject to a 1.5-per-cent NSR (net smelter returns) owned as a separate asset, on the Bilbao silver-zinc-lead project located in the state of Zacatecas, Mexico.
• Royalties owns 88 per cent of the outstanding shares of Minera Portree de Zacatecas S.A. de C.V (MPZ), which holds a court confirmed claim (twice) to a 2-per-cent royalty established in 2002 on five mining concessions called the Portree claims, a portion of which is on the Mala Noche footwall zone, the main source of production at the Cozamin mine where Capstone Copper Corp. has been mining since 2010. It attempted to assign this royalty to themselves without the knowledge, consent or proper payment to MPZ, the rightful owner since 2002.
• Royalties has a 5-per-cent stake in Music Royalties Inc. (MRI), which has paid out over $16-million in 80 monthly dividends since 2019 from 31 cash-flowing catalogues with 7,000 songs for a 7.2-per-cent annual after-tax yield.

We seek Safe Harbor.