Star Royalties Acquires a 2.5% Royalty on Diesel Displacement Technology Company, MOBISMART

JANUARY 27, 2022 – TheNewswire – TORONTO, ON – Star Royalties Ltd. (the “Society” Where “Star royalties”) (TSXV:STRR) (OTC: STRFF), through its all-green subsidiary, Green Star Royalties Ltd. (“Green Star Royalties“), is pleased to announce the signing of a definitive Royalty Purchase Agreement and Gross Revenue Royalty Agreement with MOBISMART Mobile Off-Grid Power & Storage Inc. (“MOBISMART”) to acquire a 2.5% gross revenue royalty (the “Royalties”) on all current and future gross income and any potential business disposal income generated by MOBISMART for a total consideration of CA$300,000 in cash.

Investment Highlights

  • Company operating in Canada: MOBISMART is a privately-owned operating company headquartered in Toronto, Canada that specializes in mobile solar power generation systems with integrated battery storage.

  • Reduces reliance on diesel for net zero goals: MOBISMART’s integrated product offering includes mobile solar trailers and containers with state-of-the-art power electronics and remote monitoring. MOBISMART meets a wide range of power generation requirements while reducing the need for traditional diesel power generation and its associated CO emissions.

  • Versatile Product Application: The MOBISMART product line can be deployed virtually anywhere, including construction sites, disaster relief situations, military operations, mining camps, as well as telecommunications towers and 5G infrastructure in urban, rural and remote areas.

  • Innovative power solutions: Other high growth areas include integrated power solutions for solar conversion of refrigerated vehicle fleets, fast charging stations for electronic fleets and vertical axis wind turbines.

  • Key relationships: MOBISMART benefits from working relationships with industry leaders such as Siemens AG, Mitsubishi Heavy Industries Ltd., Sono Motors GmbH, Victron Energy BV and Schneider Electric SE.

Alex Pernin, Managing Director of Star Royalties, said, “We are proud to support a greener future by investing in a high-growth local technology company, MOBISMART. Their products reduce or offset CO2 emissions in environmentally sensitive areas by displacing diesel consumption, which alone represents a global market of C$70 billion. In addition, their innovative business model is well positioned for the sectors high growth companies such as integrated power solutions, solar conversion of refrigeration vehicles and e-fleet fast charging stations. The $1 million royalty buyout provision reflects this growth potential. This green investment represents short-term cash flow from a leading jurisdiction, and we expect MOBISMART to grow rapidly into a leading off-grid power technology company in various sectors and industries.

Terms of trade

  • Green Star Royalties has agreed to acquire the royalty from MOBISMART on its current and future gross revenue and any potential business disposition revenue for a total consideration of C$300,000 in cash.

  • The Royalty has a duration of 15 years and Green Star Royalties has granted MOBISMART an initial payment holiday on the Royalty, where the first payment of the Royalty, calculated from the closing date, will take place no later than January 2023.

  • Green Star Royalties has also granted MOBISMART a royalty buyout clause, under which MOBISMART, at its sole election and in the event of a public event, will have the right to buy back the royalty in full for 10 million Canadian dollars in cash, or partially prorated. MOBISMART, at its sole election and only after five years have elapsed since the completion of its potential public event, shall have the additional right to redeem any portion of the royalty not already redeemed at its public event, on the same pro at pro rata.

MOBISMART

Founded in 2013 in Toronto, Canada, MOBISMART is an innovator of advanced, mobile and portable solar power generation systems that can be easily deployed at construction and natural disaster sites and other urban, rural and remote locations. requiring off-grid power. MOBISMART’s various power generation and battery storage solutions, including trailer-mounted and containerized systems provide a range of energy needs, work to reduce dependency on CO2-transmitting diesel generation, fills the void of compromised power sources on the grid and supports critical needs 24/7.

MOBISMART manufactures its systems in North America, relying on ISO 9001 certified facilities in Ontario and Quebec. This local control over manufacturing allows for better quality optimization and rapid delivery of the solution, removing any potential supply chain and quality related issues associated with offshore manufacturing. MOBISMART The roots of renewable energy run deep as the company’s founders are second generation solar entrepreneurs – the Efston family pioneered the integration of solar energy systems over 50 years ago. For more information, visit mobismart.ca.

MOBISMART: Product range

Mobile solar power generation systems with integrated battery storage

MOBISUN SPARK Single axle MOBISUN FLARE Double axle
4 panel solar power generator 8 panel solar power generator

Junior mining networkPortable solar power generation systems with integrated battery storage

MOBIPOWER containerized solar power generator
and battery storage (sizes range from 10ft to 40ft)

Source: MOBISMART

CONTACT INFORMATION

For more information, please visit our website at www.starroyalties.com or contact:

Alex Pernin, geo. Dmitry Kushnir, CFA

Chairman and Chief Executive Officer and Director Head of Investor Relations

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+1 647 801 3549
+1 647 287 3846

ABOUT STAR ROYALTIES LTD.

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

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain statements in this press release may constitute “forward-looking statements,” including those regarding the Company’s strategies and business plans. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this press release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends”, “should”, “could”, “may” and similar terminology is intended to identify such forward-looking statements. Forward-looking statements are made based on certain assumptions and other important factors which, if incorrect, could cause Star Royalties’ actual results, performance or achievements to be materially different from future results, performance or achievements. expressed or implied by these statements. Forward-looking statements should not be construed as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results, performance or achievements to differ materially from these forward-looking statements, including, without limitation, changes in MOBISMART’s business plans and strategies, MOBISMART’s ability to continue its operations and expand its operations, market conditions, demand, supply and pricing of components of electricity generation and storage units, the best use of available cash, the inherent risks to off-grid electricity generation and storage companies, differences between actual and estimated revenues, regulatory restrictions, activities of governmental authorities (including changes in taxation), currency fluctuations, global social and economic climate, natural disasters and global pandemics, including COVID-19, dilution and competition. These and other risks could cause actual results and events to vary materially. Accordingly, readers should exercise caution when relying on forward-looking statements, and the Company undertakes no obligation to revise them publicly to reflect subsequent events or circumstances, except as required by law.

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