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

All amounts in Canadian dollars unless otherwise stated.

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: [email protected]
www.reroyalties.com

SolarBank Corporation
Genny Nugent
T: (416) 494-9559
E: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been approved or disapproved by any regulatory authority nor has any such authority passed upon the accuracy or adequacy of the short form base shelf prospectus or the prospectus supplement. The offer and sale of the securities has not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to United States persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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.

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