Preliminary Economic Assessment At The Copperstone Gold Mine

TORONTO - Star Royalties Ltd. reported on the Preliminary Economic Assessment (PEA) on the Copperstone Gold Mine. Robust post-tax economics result in a base case ($1,800/oz gold) after-tax IRR of 50.3%, low initial capital of $36 million and benefit from significant tax assets as well as recently reduced royalty encumbrance. The PEA supports a high-grade gold underground mining operation with an average annual production of 40,765 ounces gold over a 5.5-year mine life with an all-in sustaining cost of $1,290/oz gold. Sabre Gold will continue to have discussions with potential providers of initial construction capital while earthworks are expected to commence as soon as a formal construction decision is made. The PEA mine plan prioritizes high-grade portions of the resource in early years to result in a payback period of less than two years, while generating nearly $90 million in after-tax cumulative undiscounted cash flow.

Kevin MacLean, Chief Investment Officer, said, "We are pleased to see the results of Copperstone's PEA. While the project's timing has been behind our expectations, we are encouraged by recent developments. This includes a non-core asset sale for $7 million, debt reduction and the buyback of a 3% royalty on the property. The fully-permitted project's robust IRR even at the base case scenario of $1,800/oz gold demonstrates the rationale of our investment into this project. To maintain these robust project economics, Star Royalties and Sabre Gold have agreed to forego the third $6 million tranche of Star Royalties' stream investment as originally contemplated, with a corresponding 1/3 decrease in its originally proposed gold entitlement under the stream. This will provide Sabre Gold greater flexibility to include other forms of financing in its construction capital. We look forward to seeing a concrete pathway to bring this promising asset to production."