Royalties acquires 1.05 million Music Royalties shares

Mr. Tim Gallagher reports ROYALTIES INC. ACQUIRES AN ADDITIONAL $525,000 IN SHARES OF MUSIC ROYALTIES INC. Royalties Inc. has entered into an acquisition agreement for the purchase of an additional 1.05 million common shares of Music Royalties Inc. (MRI) at a price of 50 cents per share with a value of $525,000 from two private investors in exchange for the issuance of 8,750,000 shares in Royalties. MRI is a Toronto-based private company that acquires passive music royalties on iconic songs from rightsholders (artists, producers and songwriters), with a portfolio of 31 cash-flowing music royalties. MRI pays a monthly dividend generating a 7.2-per-cent annual yield and has paid out over $12-million in 67 dividend payments since 2019. The company will now hold 5.05 million shares in MRI at a cost of $2,525,000, generating $181,800 in annual dividend income, which, combined with the income from the company's other royalties, will fully cover corporate overhead costs. All securities issued pursuant to this acquisition will have a legend with a hold period of four months and one day from the date of issuance. About Royalties Inc. Royalties owns a 100-per-cent interest, subject to a 1.5-per-cent net smelter return (NSR) royalty 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 an asserted claim backed by a court-approved judgment on June 16, 2025, to a 2-per-cent net smelter return royalty established in 2002 on five mining concessions called the Portree claims, a portion of which is on the Mala Noche footwall zone (under the tailings pond), the main source of production at the Cozamin mine where Capstone Copper Corp. has been mining since 2010. Capstone assigned this royalty to itself without the knowledge or proper payment to MPZ, the long-standing and rightful owner, in August, 2019. MPZ filed civil and criminal lawsuits in Zacatecas in 2021 to invalidate the contract to transfer ownership, which has now been officially supported by the court. Despite MPZ's legal victory, Capstone appealed the decision to the Supreme Court of the State of Zacatecas. Royalties has a 3.9-per-cent stake in MRI, which has acquired 31 cash-flowing catalogues and paid out over $12-million in dividends since 2019 from 7,000 songs, generating a 7.2-per-cent annual yield. We seek Safe Harbor.