TORONTO, ON – TheNewswire - FEBRUARY 4, 2022 - Star Royalties Ltd. (the “Company” or “Star Royalties”) (TSXV:STRR) (OTC:STRFF) is pleased to highlight an announcement by Gold Mountain Mining Corp. (“Gold Mountain”) (TSX: GMTN, OTCQB: GMTNF, FRA: 5XFA), dated February 3, 2022, regarding first ore shipment at its Elk Gold Mine (“Elk Gold”) located in BC, Canada. Star Royalties owns a 2% net smelter return royalty on Elk Gold.

First Ore Shipment Highlights

• Gold Mountain has completed its first delivery of ore to New Gold Inc.’s (“New Gold”) (TSX, NYSE American: NGD) New Afton processing plant located 133 km from Elk Gold. 

• The ore was mined from Elk Gold’s 1300 vein located at the footwall of historic Pit 2, which was last mined from 2012 to 2014 at an average gold grade of 16.7 g/t. 

• Gold Mountain’s ore purchase agreement (“OPA”) with New Gold allows Gold Mountain to both operate and scale mine operations without the need for an on-site mill. As a result, Gold Mountain avoids unnecessary annual carbon emissions of 11,500 tonnes, annual power consumption of 10.2 megawatt hours, and annual water consumption of over 14 million litres. 

• Under the OPA, Gold Mountain will deliver to New Gold 70,000 tonnes of high-grade ore per annum in years 1-3 and then up to 350,000 tonnes per annum in years 4-11. The metal payable split from the OPA is 89% to Gold Mountain and 11% to New Gold. The OPA allows Gold Mountain to be paid on a monthly basis for all ore delivered. 

Alex Pernin, Chief Executive Officer of Star Royalties, commented: "We congratulate Gold Mountain on their well-deserved revenue generation. Our Elk Gold royalty represents cash flow in a tier-one jurisdiction from a high-margin gold mine operated by a driven and highly capable team. We believe Elk Gold’s exploration and production expansion upside provide excellent wealth creation potential for our investment portfolio, and we look forward to the results of Gold Mountain’s ongoing Phase 3 drill program.”

For the full Gold Mountain news release, please visit gold-mountain.ca.

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 ABOUT STAR ROYALTIES LTD.

Star Royalties Ltd. is a precious metals and green royalty and streaming investment company. The Company created the world’s first carbon negative gold royalty platform and offers investors gold exposure with an increasingly negative carbon footprint. The Company’s objective is to provide wealth creation through accretive transaction structuring and asset life extension with superior alignment to both counterparties and shareholders.

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