RE Royalties Enters into Loan and Royalty Agreement with SolarBank Corporation for CAD $3.0 Million

All amounts in Canadian dollars unless otherwise stated.

VANCOUVER, BC / ACCESSWIRE / November 27, 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 Solar High Yield Projects #1 Ltd. (the "Borrower"), a wholly-owned subsidiary of SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN; FSE: GY2) ("SolarBank").

SolarBank is an independent renewable and clean energy project developer and owner, focusing on distributed and community solar projects in Canada and the United States. Under this agreement, RE Royalties will provide a secured loan of CAD $3.0 Million (the "Loan").

The Loan will be used for the continued development and construction of three 4.99 MW Battery Energy Storage System ("BESS") projects to be located in Ontario, Canada (the "Projects"). The Projects have long term contracts with the Ontario Independent Electricity System Operator under the E-LT1 program. The Loan will have a 12-month term at an interest rate of 11% per annum. As a condition of the Loan, a 0.40% royalty on the gross revenues generated for the life of the Projects estimated at 20 years has been granted to the Company. The royalty rate will be reduced to 0.25% if the Loan is repaid within the first six months.

The Projects are owned by two entities, 1000234763 Ontario Inc. and 1000234813 Ontario Inc. (collectively the "ProjectCos"). The Borrower has a 50% interest in the ProjectCos, with the remaining 50% held by a partnership formed by First Nations communities in Ontario. The Borrower also has varying ownership interests ranging from 24.95% to 100% in 52 operating solar projects in Ontario, with a total gross capacity of 19.9MW_DC. The Loan is secured by a first ranking security interest over all assets of the Borrower, except for its shares in the capital of the ProjectCos.

SolarBank's interest in the Borrower and ProjectCos was acquired as part of the acquisition of Solar Flow-Through Funds Ltd., a previous client of the Company, that closed in July 2024.

Bernard Tan, CEO of RE Royalties, stated: "We are excited to be working with the SolarBank management team again on this transaction. The SolarBank team has a long-proven track record in developing, building and operating renewable energy assets in North America. These BESS projects will help the province of Ontario support renewable electricity generation, build resiliency in the grid, and help lower emissions compared to conventional sources."

Matthew Wayrynen, Chair of SolarBank stated: "We are thrilled to continue our partnership with RE Royalties to secure this financing for our BESS projects in Ontario. Having worked with RE Royalties on previous projects, we value their expertise and shared commitment to sustainability. This financing is a key step toward a cleaner future and the further diversification of SolarBank's growing project portfolio."

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 SolarBank Corporation

SolarBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar, Battery Energy Storage System (BESS) and EV Charging projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of over one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built.

For further information, please contact:

Investor and Media Contacts:

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

SolarBank Corporation
Genny Nugent
T: (416) 494-9559
E: genny.nugent@solarbankcorp.com

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Forward Looking Statements
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SOURCE: RE Royalties Ltd.