Star talks streaming property Copperstone restart

Executive Summary

• Star Royalties highlights Minera Alamos Inc.'s progress on the Copperstone gold mine, including an updated technical study and permitting milestones expected by year-end 2025, targeting a 2026 restart.
• The Copperstone project demonstrates robust economics with an estimated $297-million in after-tax net cash flow and a 171% IRR based on a $3,000/oz gold price, while Star Royalties' 4% gold stream is valued at $24-million in life-of-mine pretax cash flow.
• Minera Alamos has identified Copperstone as an Iron Oxide-Copper-Gold (IOCG) system, suggesting significant exploration potential for deeper mineralization and open-pit extensions, with a Phase 1 drill program scheduled for Q1 2026.

Key Details

• Permitting and Timeline: Minera Alamos expects approval of final amendments to the mine plan of operations (MPO) by year-end 2025, positioning Copperstone for a 2026 restart.
• Fast-Track Restart: Site development activities are being initiated in parallel with pending MPO amendments. Transfer and refurbishment of an existing 1,000-tonne-per-day (tpd) process plant is expected to be largely complete by year-end 2025.
• Updated Technical Study: An updated technical report is in progress, focusing on optimizing mine design, plant flexibility, and capital efficiency, with a target release in the first half of 2026.
• Resource Estimates: Copperstone hosts 300,000 oz of measured and indicated resources (1.2 million tonnes at 7.7 g/t Au) and 197,000 oz of inferred resources (0.97 Mt at 6.3 g/t Au), based on a $1,800/oz gold price.
• Exploration Potential: The deposit is interpreted as an IOCG system, implying potential for deep mineralization and shallow open-pit extensions. A Phase 1 drill program in Q1 2026 will focus on near-surface material beside the historic pit and at depth along strike.
• Stream Valuation: Star Royalties' 4% gold stream on Copperstone is estimated to generate ~$5.3-million in pretax cash flow in the first year of production and $24-million in life-of-mine pretax cash flow (assuming $3,500/oz gold).
• Equity Position: Star Royalties owns ~7.8 million shares of Minera Alamos, valued at $2.9-million.
• Geological Interpretation: Mineralization is hosted by a shallowly northeast-dipping fault zone (suspected thrust), contrasting with previous assumptions of an extensional listric normal fault, opening potential for vertical extension.

Notable Quotes

• "We are encouraged by the latest Copperstone development progress from Minera Alamos. The project's economics and our stream's valuation at today's robust gold prices continue to demonstrate significant cash flow generation potential for Star Royalties that is not reflected in our share price." — Alex Pernin, CEO, Star Royalties
• "The new interpretation of Copperstone's host geology provides a highly constructive pathway to meaningfully extending the life of mine well beyond what is currently contemplated in the PEA." — Alex Pernin, CEO, Star Royalties