Summit and Star Royalties Merge to Create Junior Mining Powerhouse

TORONTO, ON – March 16, 2026 – In a strategic move set to reshape the junior resource financing landscape, Summit Royalties Ltd. has announced it will acquire Star Royalties Ltd. in an all-share transaction valued at approximately C$51 million. The deal unites two complementary portfolios to create a single, scaled-up royalty and streaming company poised for significant growth.

Under the terms of the court-approved Plan of Arrangement, shareholders of Star Royalties will receive 0.360 of a Summit Royalties common share for each share they hold. Based on closing prices from March 13, 2026, this exchange ratio implies a value of C$0.60 per Star share, representing a 25% premium. Upon completion, existing Summit and Star shareholders will own approximately 72% and 28% of the combined entity, respectively.

Initial market reaction on March 16 was measured, with Summit's shares closing up 2.45% at C$1.71, while Star's shares dipped slightly by 1.04% to C$0.475, suggesting investors are processing the long-term strategic value of the combination.

Forging a New Contender in the Royalty Sector

The merger is being positioned by both companies as a transformative event, designed to create a more formidable player in a sector dominated by multi-billion-dollar giants. The strategic rationale hinges on achieving critical mass, which provides enhanced access to capital, greater trading liquidity, and a more attractive profile for institutional investors.

The combined company will boast a portfolio of 50 royalties and streams, diversifying its asset base across the stable mining jurisdictions of Canada, the USA, and Australia. With an expected pro forma market capitalization of approximately C$184 million, the new entity aims to bridge the gap between smaller junior players and established mid-tier companies. Management teams from both sides have identified approximately US$2 million in annual cost synergies through the elimination of redundant public company expenses and operational streamlining.

Drew Clark, President and CEO of Summit, highlighted the transformative nature of the acquisition. "We are very excited about the transformative combination of Summit and Star, which results in an expanded portfolio of cash-flowing assets underpinned by a peer-leading growth profile," he commented in the official release. "With this Transaction, Summit has scaled from zero to 50 assets in less than a year, and we are eager to continue building on this momentum."

Echoing this sentiment, Star's CEO, Alex Pernin, emphasized the potential for a significant market re-valuation. "Our combined business will be underpinned by improved scale, industry-leading revenue growth, meaningful portfolio diversification, enhanced trading liquidity and institutional investor appeal," he stated. "We look forward to our upcoming re-rating potential, especially given our attractive pro forma valuation metrics."

A Portfolio Built for Growth

The foundation of the combined company's ambitious growth projections is a portfolio of cornerstone assets that balance near-term cash flow with long-term development upside. The merger is projected to deliver an industry-leading compound annual growth rate (CAGR) of approximately 47% in Gold Equivalent Ounces (GEOs) over the next three years, with 2027 revenues forecast to exceed US$15 million.

Key assets driving this growth include:

• Copperstone (4% Gold Stream): Acquired through Star, this project in Arizona, USA, is a pivotal near-term catalyst. Operated by Minera Alamos Inc., the past-producing mine is expected to restart production in the first quarter of 2027. The 4% gold stream is set to provide a significant infusion of cash flow to the new company as it ramps up.

• Bomboré (50% Silver Stream): An existing Summit asset, this stream is on a large, producing gold mine in Burkina Faso operated by Orezone Gold Corporation. The mine, which recently commissioned a hard rock plant expansion, is set to increase its output, directly benefiting the silver stream held by the combined entity.

• Madsen (1% NSR Royalty): Located in the prolific Red Lake gold district of Ontario, this high-grade underground mine is operated by West Red Lake Gold Mines Ltd. and declared commercial production in January 2026. The 1% Net Smelter Return royalty provides exposure to a top-tier Canadian mining asset with a long history and significant resource potential.

• Onças de Pitangui (Production Royalty): This development project in Brazil, operated by Jaguar Mining Inc., is scheduled to begin development in 2026. Summit’s royalty structure—an $80/oz payment on the first 250,000 ounces sold, converting to a 1.5% NSR thereafter—offers strong upside as the mine enters production.

Consolidation as a Path to Relevance

This merger is emblematic of a wider trend within the precious metals royalty and streaming sector. In an industry where scale dictates the ability to compete for larger, more impactful deals and attract stable institutional investment, consolidation has become a key strategy for growth. By combining forces, Summit and Star are betting they can achieve a market valuation greater than the sum of their parts.

The increased scale and diversification are expected to lower the company's overall risk profile and cost of capital, enabling it to more effectively pursue future accretive acquisitions. For shareholders, the deal promises participation in a more robust and liquid investment vehicle that balances immediate revenue from producing assets with the significant growth potential of projects moving towards production.

Navigating the Path to Completion

The transaction is structured as a Plan of Arrangement and is subject to customary approvals, including those from the court and Star Royalties shareholders. A special meeting for Star shareholders is scheduled for the second quarter of 2026, where the deal will require approval from at least two-thirds of the votes cast.

The path to approval appears well-paved, as directors, officers, and key shareholders of Star, who collectively represent approximately 34% of the outstanding shares, have already entered into voting support agreements in favor of the merger. Subject to the satisfaction of all conditions, the transaction is expected to close in the second quarter of 2026, after which Star Royalties shares will be delisted from the TSXV and OTCQX.