15th Floor, 1040 West Georgia St

Vancouver, BC, Canada V6E 4H1

1.778.374.2000

info@reroyalties.com

TSX.V: RE

© 2020 RE Royalties Ltd.

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RE Royalties Acquires Royalties on 40 MW Wind Energy Generation Projects in Nova Scotia

RE ROYALTIES ACQUIRES ROYALTIES ON 40MW OPERATIONAL WIND PROJECTS IN NOVA SCOTIA AND COMPLETES CONVERTIBLE NOTE FINANCING

February 6, 2020 Vancouver, BC – RE Royalties Ltd. (TSX.V: RE) (“RE Royalties” or the “Company”) is pleased to announce that it has acquired a portfolio of 12 gross revenue royalties on 12 operational wind energy generation projects in Nova Scotia, Canada (“Nova Scotia Wind Projects”) from Scotian Windfields Inc. (“Scotian Windfields”) for $1.34 million. The Company also provided an interest-bearing senior secured loan to Scotian Windfields of $3.3 million dollars with a term of 3 years.


The Nova Scotia Wind Projects were developed from 2013 to 2017 and have been operating for between 3 and 6 years. The Nova Scotia Wind Projects have a generating capacity of 39.7 megawatts, and have 20-year power purchase agreements with fixed electricity purchase prices from Nova Scotia Power Incorporated (“NSPI”). The Nova Scotia Wind Projects generate approximately 130,000 megawatt hours of clean energy per year; capable of removing over 105,000 tonnes of CO2 equivalent (1) from the electricity grid.


Peter Leighton, COO of the Company, commented, “We are pleased to acquire this portfolio of royalties from Scotian Windfields and are excited to be part of Nova Scotia’s ongoing efforts to move away from carbon-based electricity to help them achieve their goal of having 40% renewable energy sources by 2020. This transaction demonstrates the strength of RE Royalties’ financing model in creating a win-win solution for our clients, shareholders and the environment.”


Joe Fitzharris, President of Scotia Windfields Inc. commented, “We are pleased to have RE Royalties help us secure our ownership in these important community projects. Our local shareholders will now have a better opportunity to realize return on their invested capital and securing our long term financial stability will allow us to continue exploring ways to support community development while reducing carbon intensity”.


The acquisition of the Nova Scotia Wind Projects increases RE Royalties portfolio from 63 royalties to 75 royalties on solar, wind and hydro projects in Canada, Europe and the United States.


Convertible Note Financing


The Company also issued a series of unsecured, convertible notes (“Convertible Note”) totaling $1.6 million to certain arm’s-length parties. The Convertible Note shall be convertible into common shares of the Company at a conversion price of $1.00 per share, with a term of 36 months from the date of issue, and bear an annual interest rate of 8% per annum. The Convertible Notes were distributed by Deetken Impact, a Canadian registered exempt market dealer and investment fund manager with a 10-year track record of delivering strong, stable returns to investors by supporting businesses that make a meaningful contribution to the Sustainable Development Goals. Together with its affiliate, Deetken Impact Sustainable Energy, Deetken Impact currently manages $100 million in impact assets. Deetken Impact is a signatory to the UN Global Compact and a certified B Corporation.


“Through our distribution of RE Royalties notes, we are expanding the set of impact investment opportunities for Canadian and global individual investors,” said Alexa Blain, Managing Partner of Deetken Impact. “The transaction is well aligned with our business goals of advancing climate action through investment and improving access to affordable, sustainable energy for all communities.”


About RE Royalties Ltd.


RE Royalties acquires revenue-based royalties from renewable energy generation facilities by providing a non-dilutive financing solution to privately-held and publicly-traded renewable energy generation and development companies. The Company currently owns 75 royalties on solar, wind and hydro projects in Canada, Europe and the United States. 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


On Behalf of the Board of Directors,

Bernard Tan

CEO


For further details on RE Royalties, please visit www.reroyalties.com or contact us at (778) 374‐2000 or send us an email at info@reroyalties.com.

(1) https://www.carbonzero.ca, Government of Canada 2017 National Inventory Report: Greenhouse Gas Sources and Sinks


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. Forward-looking information contained in this news release is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth opportunities.

While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the renewable energy industry generally, income tax and regulatory matters; the ability of the Company to implement its business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.


The reader is referred to the Company’s most recent filings on SEDAR 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.

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