Star Royalties Highlights Copperstone Development Progress and Exploration Potential

Core Insights - Star Royalties Ltd. is optimistic about the development progress of Minera Alamos' Copperstone Gold Mine, highlighting significant cash flow generation potential that is not currently reflected in its share price [3][5] - An updated technical study is being prepared to support the restart of Copperstone, with expected approvals for the Mine Plan of Operations by the end of 2025 [1][5] Copperstone Exploration Potential - Minera Alamos has confirmed that gold and copper mineralization at Copperstone is hosted by a northeast-dipping fault zone, suggesting a larger vertical extent of mineralization than previously thought [4] - The current mine plan incorporates only half of the high-grade resource, indicating potential for resource expansion through upcoming exploration programs [3][5] Robust Copperstone Economics - The latest Preliminary Economic Assessment (PEA) estimates that Copperstone will generate over $297 million in after-tax net cash flow, with an after-tax NPV5% of $227 million and an after-tax IRR of 171% based on a gold price of $3,000/oz [5] - Minera Alamos is on track to receive final MPO approvals by year-end 2025, positioning Copperstone for a restart in 2026 [5] Fast-Track Restart Strategy - Engineering activities are being accelerated to optimize the mine restart and processing plant installation, with site development activities expected to begin in parallel with pending MPO amendments [5] - The refurbishment of existing processing equipment is anticipated to be largely complete by the end of 2025 [5] High-Grade Resource and Future Exploration - Copperstone hosts 300,000 oz of Measured and Indicated resources and 197,000 oz of Inferred resources, with exploration suggesting potential for deeper mineralization and extensions near the historic pit [5][6] - A Phase 1 drill program is set to begin in early 2026 to assess near-surface material and further delineate underground resources [7] Enhanced Stream Valuation - The company's 4% gold stream on Copperstone is projected to generate approximately $5.3 million in pre-tax cash flow during the first year of production and $24 million in life-of-mine pre-tax cash flow, assuming a gold price of $3,500/oz [5] Equity Ownership of Minera Alamos - Star Royalties owns approximately 7.8 million shares of Minera Alamos, valued at C$2.9 million, with expectations of positive catalysts in 2026 from production and operating cash flows from its Pan gold mine [5]