All amounts in Canadian dollars unless otherwise stated.

VANCOUVER, BC / ACCESSWIRE / November 21, 2024 / RE Royalties Ltd. (TSXV:RE)(OTCQX:RROYF) ("RE Royalties" or the "Company"), a global leader in renewable energy royalty-based financing, has entered into an agreement with Abraxas Power Maldinvest Ltd. (the "Borrower"), a UAE-incorporated wholly-owned subsidiary of Abraxas Power Corp. ("Abraxas"), an Ontario-based energy transition developer, focused on decarbonizing hard-to-abate sectors, to provide up to a CAD $10 Million secured loan (the "Loan") to support the construction of solar projects in the Maldives.

The Loan will have multiple tranches. The first tranche of CAD $1.4 Million closed on November 18, 2024, and will be used for the construction of two rooftop solar projects (the "Projects") with a combined generation capacity of 0.77 MW_DC. Subsequent tranches will be used for the construction of additional solar projects in the Maldives and will only be advanced if certain conditions are met, such as the completion of satisfactory due diligence and approval by the Company's board of directors.

The Projects are located at a hospital in Malé, the capital of the Maldives, and an island resort, approximately 50km north of Malé. They will generate revenue from power purchase agreements ("PPAs") for a term of up to 15 years with the co-located businesses. Currently, both businesses rely primarily on electricity produced by diesel generators. The rooftop solar installations will reduce energy expenses and significantly reduce the negative environmental impacts associated with burning diesel fuel.

The Loan will have an 18-month term and an interest rate of 13% per annum on advanced funds, compounded monthly. The Company will receive a fee of CAD $200,000 at closing to cover legal and due diligence expenses. The Company will receive a gross revenue royalty of 2.0% on the Projects for the term of the PPAs.

Bernard Tan, CEO of RE Royalties, stated: "This transaction allows RE Royalties to establish a foothold in a new jurisdiction with a clear pathway to deploy more capital. We are thrilled to be working with the management of Abraxas again, and we look forward to collaborating with them in the future to further grow their portfolio of renewable energy projects."

J. Colter Eadie, CEO of Abraxas, commented: "This investment has been a significant catalyst for initiating the energy transition in the Maldives, aligning with Abraxas' broader mandate from the Government of Maldives to decarbonize under its Nationally Determined Contributions (NDC) commitment. The RE Royalties investment facilitates the development of a distributed generation portfolio in the Maldives, focusing on decarbonizing critical economic sectors like healthcare and tourism. Tourism accounts for 28% of the country's GDP and generates 60% of all foreign exchange income. The Maldives' ability to achieve its sustainability goals within the tourism industry will be vital for its ongoing success as one of the world's premier destinations. Abraxas has identified a pipeline of over 100 MW of potential fossil fuel capacity that can be replaced with clean and renewable energy at some of the world's largest hotel brands."

Loan Settlement with Switch Power

The Company is also pleased to announce the settlement of outstanding loans with Switch Power Battery Operating company ("SPOBOC") and with Switch Power Solar Operating Company ("SPOSOC"). Under the terms of the settlement the Company will retain the shares of SPOBOC and SPOSOC in full and final satisfaction of the outstanding debt. Effective November 1, 2024, SPOBOC became a wholly owned subsidiary of the Company with the result that the Company will operate the nine operating battery storage projects owned by SPOBOC totalling 5.3MW / 12.3 MWh. Similarly, SPOSOC also became a wholly owned subsidiary of the Company, and the Company will operate the single operating 428 kWdc rooftop solar project owned by SPOSOC.

On Behalf of the Board of Directors,

Bernard Tan
CEO

About RE Royalties Ltd.

RE Royalties Ltd. 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, battery storage, energy efficiency and renewable natural gas projects in Canada, United States, Mexico, and Chile. The Company's business objectives are to provide shareholders with a strong growing yield, robust capital protection, high rate of growth through re-investment and a sustainable investment focus.

About Abraxas Power Corp.

Abraxas Power is a pioneering energy transition developer focused on decarbonizing hard-to-abate sectors and creating value by solving the current and future challenges of the energy transition. Abraxas Power's broad mandate allows it to see opportunities across technologies and geographies to transform the global energy industry. Our team has extensive experience in leading, financing, and solving the challenges associated with energy transition, and a proven track record of delivering complex, large-scale development projects across various disciplines, including renewable power and storage, hydrogen and ammonia production, industrial and precious metals, large-scale project construction, and operations at scale. The team possesses strong project finance and capital markets experience and has a history of creating value for shareholders, stakeholders, and the communities they live in. Abraxas has signed strategic partnerships with various global strategics and technology providers.

Abraxas has secured over US$9 billion in capital projects through competitive government awards over the past year in furtherance of the energy transition, including its marquis Exploits Valley Renewable Energy Corporation project in Newfoundland, Canada.

For further information, please contact:

Investor and Media Contact:

RE Royalties Ltd.
Talia Beckett, VP of Communications and Sustainability
T: (778) 374‐2000
E: taliabeckett@reroyalties.com
www.reroyalties.com

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Forward Looking Statements
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company and within the meaning of Canadian securities laws. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities including financing. The reader is referred to the Company's most recent filings on SEDAR as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at www.sedar.com.

SOURCE: RE Royalties Ltd.