Mr. Alex Pernin reports

STAR ROYALTIES EXECUTES CONVERSION OF ELK GOLD ROYALTY

Star Royalties Ltd. has signed a previously announced agreement with Nhwelmen Construction Limited Partnership (NCLP), whereby Elk Gold Mining Corp., a subsidiary of Gold Mountain Mining Corp., will repurchase the company's 2-per-cent net smelter return (NSR) royalty on the Elk gold mine in exchange for an option to acquire a 5-per-cent equity ownership of Gold Mountain following the court-approved resolution of Gold Mountain's receivership process.

Transaction highlights:

• Royalty conversion: The company's 2-per-cent NSR royalty on Elk Gold was extinguished in favour of an option to acquire 5 per cent of the total issued and outstanding shares of Gold Mountain. The company has the right to exercise this option for a total consideration of $500,000 in the form of two tranche payments each in the amount of $250,000 following closing of the transaction and satisfaction of certain conditions precedent, expected to occur in the second quarter of 2026. Pursuant to the definitive agreement under the transaction, the company will retain anti-dilution and tag-along rights for a period following closing of the transaction.
• Alignment with new ownership: The restructuring creates full alignment between the company, NCLP and NCLP's owner, the Nlaka'pamux Nation Tribal Council (NNTC), with respect to long-term value maximization of Elk Gold.
• Wealth creation potential and preproduction optionality: Elk Gold's near-term catalysts include the completion of a revised resource statement and an updated mine plan, exploration programs, and the announcement of a development partner and external financing.

Alex Pernin, chief executive officer of Star Royalties, commented: "We are pleased to have entered into the conversion of our Elk Gold royalty into an equity stake in Gold Mountain. This restructuring allows us to capitalize on the reorganization of Elk Gold and to maintain optionality in its potential, recognizing that the attributes that garnered the company's original interest in Elk Gold remain unchanged, including its location, grade profile, regional endowment and near-term cash flow potential. The equity position in Gold Mountain also gives the company exposure to an expanded area of 21,187 hectares, representing a meaningful increase over the land package that was covered by the royalty. We look forward to receiving updates from Gold Mountain over the coming months, including preparing an updated mineral resource estimate, reviewing potential processing methods and finalizing a new mine plan."

Todd Vogt, chairman of Gold Mountain Mining, stated: "We welcome Star Royalties as an equity partner at this pivotal time in the restructuring and stabilization of the re-envisioned Elk gold project. Star's technical expertise, industry experience and long-term commitment make them an invaluable partner." Mr. Vogt added, "As the new owners, we have complete confidence in the underlying high-grade resource and share a single, unified vision to unlock the asset's full economic potential."

About Star Royalties Ltd.

Star Royalties is a precious metals and carbon credit royalty and streaming company. The company's objective is to provide wealth creation by originating accretive transactions with superior alignment to both counterparties and shareholders. The company offers investors exposure to precious metals and carbon credit prices as well as cleantech and other decarbonization projects through its pure-green joint venture, Green Star Royalties Ltd.

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