RE Royalties to acquire royalty interest from Solaris

Mr. Peter Leighton reports RE ROYALTIES ANNOUNCES UP TO A USD $9.0 MILLION PORTFOLIO-LEVEL ROYALTY INVESTMENT WITH SOLARIS ENERGY INC. RE Royalties Ltd. has entered into a definitive agreement with Solaris Energy Inc. to invest up to $9.0-million (U.S.) to acquire a royalty interest in two portfolios of distributed generation solar projects located throughout the United States. The first portfolio consists of 15 projects including nine under construction with several nearing operation, and six in development, located across California, Maine, Delaware, New Hampshire and Colorado. The second portfolio comprises nine more projects, the final composition of which may evolve as the projects advance. The transaction represents the acquisition of a portfolio-level royalty on a diversified portfolio of DG solar assets and marks the exciting beginning of a new partnership between the two parties. The royalty purchase for portfolio 1 totals $4.8-million (U.S.) and will be financed through multiple advances as individual projects reach key development and construction milestones. At closing, the company will finance the first advance of $3.0-million (U.S.). The remaining $1.8-million (U.S.) is expected to be financed by second quarter 2026, subject to the satisfaction of applicable conditions. The royalty rate will be adjusted at each advance to target a preagreed minimum return based on a 25-year period. The royalty will continue past 25 years for the remaining life of the portfolio 1 projects. The royalty purchase for portfolio 2 is still subject to the completion of due diligence to the satisfaction of the company and other customary closing conditions, and is expected to occur later this year. Peter Leighton, chief operating officer of RE Royalties, commented: "This transaction reflects RE Royalties' continued focus on partnering with renewable energy developers and acquiring royalty interests on diversified, cash-generating clean energy assets and near-term operating projects. Distributed generation solar remains a compelling segment of the market, and we are delighted to support Solaris as they continue to expand their U.S. solar portfolio." "This equity infusion from RE Royalties puts Solaris Energy in a unique position to leverage our existing capital partnerships with our rapidly growing project pipeline to simplify solar project finance," said Solaris Energy chief executive officer Nick Perugini. "Sponsor equity is the most difficult capital to raise, and we're thrilled to join with the RE Royalties team to strengthen our relationships with internal sponsor equity, tax equity and lender partners to complete capitalization of our strong portfolios of distributed generation and solar plus storage projects." This investment represents an opportunity for RE Royalties to enter into a framework agreement to acquire a series of long-term royalties on projects being developed in the commercial and industrial DG space. Solaris is a renewable energy developer that has had success developing, financing, building and operating hundreds of solar projects, and currently has a large pipeline of potential projects with an estimated value of more than $400-million (U.S.). About Solaris Energy Inc. Solaris Energy is a United States-based solar developer and asset manager headquartered in Fort Collins, Colo. Founded in 2008, Solaris initially operated as a non-profit organization, The Atmosphere Conservancy, aimed at helping non-profits adopt solar energy solutions. In 2010, Solaris Energy was established and operates as a certified B corporation and public benefit corporation providing experienced, value-driven commercial and community solar and storage development, finance, and long-term asset management services across the United States. About RE Royalties Ltd. RE Royalties acquires revenue-based royalties over renewable energy facilities and technologies by providing non-dilutive financing solutions to privately held and publicly traded companies in the renewable energy sector. RE Royalties is the first to apply this proven business model to the renewable energy sector. The company currently owns over 100 royalties on solar, wind, hydro, battery storage, energy efficiency and renewable natural gas projects in North America, South America and Asia. The company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through reinvestment and a sustainable investment focus. We seek Safe Harbor.