Financial statements
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RE ROYALTIES LTD. CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (Expressed in Canadian Dollars) (Unaudited)
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NOTICE TO READER In accordance with National Instrument 51-102 subsection 4.3 (3), management of the Company advises that the Company's auditors have not performed a review of these interim financial statements.
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RE Royalties Ltd. - – Condensed Consolidated Interim Statements of Financial Position (Unaudited – Expressed in Canadian Dollars) June 30, December 31, Note 2026 2025 ASSETS Non-current assets Secured loans and royalty interests 5 $ 11,180,597 13,577,204$ Property, plant and equipment 6 2,811,011 2,929,866 Intangible assets 7 615,077 649,350 Deferred transaction costs 133,685 131,305 Derivative financial asset and marketable securities 8 54,611 113,334 Right-of-use asset – 6,462 14,794,981 17,407,521 Current assets Secured loans and royalty interests 5 11,066,556 9,050,041 Amounts receivable and prepaid expenses 9 1,716,523 909,766 Interest reserve account 10 1,459,195 1,461,185 Income taxes recoverable 57,734 55,900 Cash and cash equivalents, including restricted cash 4 1,836,243 2,745,954 16,136,251 14,222,846 TOTAL ASSETS 30,931,232$ 31,630,367$ Deficiency Share capital 12 30,455,182$ 30,455,182$ Reserves 12(b) 3,252,847 2,962,926 Accumulated deficit (40,589,924) (39,282,404) Deficiency attributable to owners of the Company (6,881,895) (5,864,296) Non-controlling interests 1,997,428 1,756,525 Total Deficiency (4,884,467) (4,107,771) LIABILITIES Non-current liabilities Green bonds 10 24,102,185 23,766,890 Decommissioning liabilities 11 268,245 264,521 24,370,430 24,031,411 Current liabilities Green bonds 10 10,748,942 10,830,677 Lease liability – 6,511 Cash-settled share-based payment liability 5,999 2,740 Distribution payable 12(c) – 435,220 Advance received against royalty buyout 18(c) 300,000 – Trade payables and accrued liabilities 390,328 431,579 11,445,269 11,706,727 Total liabilities 35,815,699 35,738,138 TOTAL EQUITY AND LIABILITIES 30,931,232$ 31,630,367$ Nature of operations (note 1) Events after the reporting period (note 9 and 18) The accompanying notes are an integral part of these condensed consolidated interim financial statements /s/ Bernard Tan /s/ Rene Carrier Bernard Tan Rene Carrier Director Director These condensed consolidated interim financial statements are approved for issuance by the Audit and Risk Committee of the Company's Board of Directors on August 31, 2026 and are signed on the Company's behalf by the following: Page 2
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RE Royalties Ltd. Condensed Consolidated Interim Statements of Net Income (Loss) and Comprehensive Income (Loss) (Unaudited – Expressed in Canadian Dollars, except for weighted average number of common shares) Three months ended June 30, Six months ended June 30, Note 2026 2025 2026 2025 Revenue and income Royalty revenue 640,511$ 441,894$ 875,250$ 622,379$ Finance income 801,232 1,048,254 1,488,074 2,417,325 Energy revenue 443,281 394,463 444,066 572,806 1,885,024 1,884,611 2,807,390 3,612,510 Cost of sales Operating expenses – BESS and solar Amortization and depreciation (76,564) (156,021) (153,128) (312,042) Other operating expenses (121,305) (193,173) (239,574) (277,548) Depletion of royalty interests 5 (89,324) (201,824) (178,602) (288,893) (287,193) (551,018) (571,304) (878,483) Gross profit 1,597,831 1,333,593 2,236,086 2,734,027 Loss on revaluation of derivative financial asset/marketable securities (42,778) (5,000) (58,723) (5,000) Gain on revaluation of other financial asset at FVTPL 19,210 22,304 31,472 34,705 Gross profit, changes in fair value of financial assets 1,574,263 1,350,897 2,208,835 2,763,732 Expenses - Salaries and benefits 309,196 335,930 642,355 650,933 Administration 74,884 128,208 143,944 291,602 Marketing and stakeholder communication 121,350 109,017 221,465 162,188 Audit and audit related 97,646 225,538 292,937 315,400 Consulting – financing – 20,000 – 20,000 Consulting – other 145,452 69,918 204,903 112,308 Regulatory and transfer agency 14,034 17,373 29,819 66,168 Office lease and information technology 22,761 31,171 31,966 44,577 Legal 23,386 24,481 36,553 30,441 Donation – 25,000 25,000 Equity-settled share-based payments 12(b) 75,422 9,861 186,195 19,723 Change in fair value of cash-settled share-based payments 12(b) (747) (49) 3,259 122 Depreciation of right-of-use asset 1,592 4,869 6,462 9,739 (884,976) (1,001,317) (1,799,858) (1,748,201) Other items Finance expenses 909,528 1,181,075 1,813,474 2,289,410 Foreign exchange loss (gain) 160,423 (311,371) 245,092 (308,942) Recovery of expected credit loss 9 (615,945) – (641,196) – (454,006) (869,704) (1,417,370) (1,980,468) Net income (loss) before income tax 235,281$ (520,124)$ (1,008,393)$ (964,937)$ Income tax expense Current income tax expense 22,658 43,570 44,726 77,955 (22,658) (43,570) (44,726) (77,955) Net income (loss) after income tax 212,623$ (563,694)$ (1,053,119)$ (1,042,892)$ Other comprehensive income (loss) Items that may be subsequently reclassified to net income Foreign exchange translation difference 107,381 (646,837) 168,966 (644,884) Total other comprehensive income (loss) 107,381 (646,837) 168,966 (644,884) Total comprehensive income (loss) 320,004$ (1,210,531)$ (884,153)$ (1,687,776)$ Net income (loss) after income tax attributable to: Owners of the Company 87,930 (713,345) (1,307,520) (1,349,304) Non-controlling interests 124,693 149,651 254,401 306,412 212,623 (563,694) (1,053,119) (1,042,892) Total comprehensive income (loss) attributable to: Owners of the Company 155,652 (1,253,029) (1,203,794) (1,887,096) Non-controlling interests 164,352 42,498 319,641 199,320 320,004 (1,210,531) (884,153) (1,687,776) 14 0.00$ (0.02)$ (0.03)$ (0.03)$ Weighted average number of common shares outstanding 14 43,521,967 43,296,927 43,521,967 43,532,804 The accompanying notes are an integral part of these condensed consolidated interim financial statements Basic and diluted income (loss) per share attributable to shareholders of the Company Page 3
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RE Royalties Ltd. Condensed Consolidated Interim Statements of Changes in Equity (Deficiency) (Unaudited – Expressed in Canadian Dollars, except for number of shares) Reserves Note Number of shares Amount Equity- settled share- based payments Share purchase warrants Other reserve Foreign currency translation reserve Accumulated deficit Total equity (deficiency) attributable to shareholders of the Company Non- controlling interests Total equity (deficiency) Balance at January 1, 2025 43,376,804 30,418,381$ 1,774,540$ 648,913$ 87,000$ 943,437$ (28,672,711)$ 5,199,560$ 1,799,501$ 6,999,061$ Net (loss) income for the period – – – – – – (1,349,304) (1,349,304) 306,412 (1,042,892) Other comprehensive loss for the period – – – – – (537,792) – (537,792) (107,092) (644,884) Total comprehensive (loss) income for the period – – – – – (537,792) (1,349,304) (1,887,096) 199,320 (1,687,776) Distribution to shareholders 12(c) – – – – – – (867,536) (867,536) – (867,536) Equity-settled share-based payments 12(b) – – 19,723 – – – – 19,723 – 19,723 Distribution to non-controlling interests - OCEP – – – – – – – – (53,303) (53,303) Balance at June 30, 2025 43,376,804 30,418,381 1,794,263 648,913 87,000 405,645 (30,889,551) 2,464,651 1,945,518 4,410,169 Balance at January 1, 2026 43,521,967 30,455,182$ 1,768,047$ 648,913$ 87,000$ 458,966$ (39,282,404)$ (5,864,296)$ 1,756,525$ (4,107,771)$ Net (loss) income for the period – – – – – – (1,307,520) (1,307,520) 254,401 (1,053,119) Other comprehensive income for the period – – – – – 103,726 – 103,726 65,240 168,966 Total comprehensive (loss) income for the period – – – – – 103,726 (1,307,520) (1,203,794) 319,641 (884,153) Equity-settled share-based payments 12(b) – – 186,195 – – – – 186,195 – 186,195 Distribution to non-controlling interests - OCEP – – – – – – – – (78,738) (78,738) Balance at June 30, 2026 43,521,967 30,455,182$ 1,954,242$ 648,913$ 87,000$ 562,692$ (40,589,924)$ (6,881,895)$ 1,997,428$ (4,884,467)$ The accompanying notes are an integral part of these condensed consolidated interim financial statements Share capital Page 4
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RE Royalties Ltd. Condensed Consolidated Interim Statements of Cash Flows (Unaudited – Expressed in Canadian Dollars) Six months ended June 30, Note 2026 2025 Operating activities Net loss (1,053,119)$ (1,042,892)$ Adjustments for: Depreciation, depletion, and amortization 338,192 610,674 Finance income for the period, in excess of interest received (213,521) – Interest received in excess of finance income for the period – 156,081 Gain on revaluation of financial asset at FVTPL (31,472) (34,705) Loss on revaluation of derivative financial asset/marketable securities 58,723 5,000 Finance expenses 1,813,474 2,289,410 Equity-settled share-based payments 186,195 19,723 Change in fair value of cash-settled share-based payments 3,259 122 Recovery of expected credit loss (641,196) – Unrealized foreign exchange loss (gain) 249,560 (735,990) Changes in working capital items: Amounts receivable and prepaid expenses (165,556) (110,567) Income taxes recoverable (1,834) 17,396 Interest reserve account 10,467 (315,592) Income tax payable – 6,744 Trade payables and accrued liabilities (41,251) (760,190) Cash generated by operating activities 511,921 105,214 Investing activities Acquisition of royalty interests and secured loans 5 (1,104,160) (11,430,193) Proceeds from repayment of secured loan 1,685,008 4,102,870 Advance received against royalty buyout 300,000 – Deferred transaction costs, net of recoveries (2,380) 2,992 Cash provided by (used in) investing activities 878,468 (7,324,331) Financing activities Repayment of Series 1 Green Bonds (364,000) – Cash distribution to shareholders 12(c) (435,220) (867,536) Distributions to non-controlling interests – OCEP (78,738) (53,303) Interest on Green Bonds paid (1,441,141) (1,747,423) Other finance expenses paid (7,352) (100,000) Lease payments (6,557) (12,793) Cash used in financing activities (2,333,008) (2,781,055) Decrease in cash and cash equivalents (942,619) (10,000,172) Effects of exchange rate fluctuations on cash held 32,908 (5,291) Cash and cash equivalents, opening balance 2,745,954 16,547,940 Cash and cash equivalents, closing balance 1,836,243$ 6,542,477$ Supplemental cash flow information (note 4) The accompanying notes are an integral part of these condensed consolidated interim financial statements Page 5
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) 1 . NATURE OF OPERATIONS 2 . MATERIAL ACCOUNTING POLICY INFORMATION (a) Statement of compliance SPOBOC, a wholly-owned subsidiary, was incorporated provincially under the Ontario Business Corporations Act on August 20, 2021. SPOBOC's principal activity is primarily global adjustment and ancillary services revenue from Battery Energy Storage Systems in Ontario. SPOSOC, a wholly-owned subsidiary, was incorporated provincially under the Ontario Business Corporations Act on August 18, 2022. SPOBOC's principal activity is primarily solar power generation from Rooftop Solar Systems in Ontario. These Financial Statements are prepared on the basis that the Company will continue as a going concern which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. During the six months ended June 30, 2026, the Company recorded a net loss of $1,053,119 (for the three months ended June 30, 2025: $1,042,892). At June 30, 2026, the Company's shareholders' equity was negative $6.9 million (December 31, 2025 - $5.9 million), and the Company had working capital of $4.7 million (December 31, 2025 -$2.5 million). There can be no assurances that the Company will be successful in obtaining additional financing when required. If the Company is unable to raise the necessary equity and/or debt capital and generate sufficient revenue and income, the Company may, at some point, consider curtailing its operations, or liquidating certain of its assets. As such, there is a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern. RE Royalties Ltd. (“RER” or the “Company”) is a public company whose common shares are listed on the TSX Venture Exchange (“TSXV”), under the trading symbol “RE” and on the OTCQB under the trading symbol “RROYF”. In September 2025, the Company obtained a listing of its common shares on the Frankfurt Stock Exchange under the trading symbol "Y2V". The Company was incorporated on November 2, 2016 under the laws of the Province of British Columbia, Canada. The address of the Company’s corporate office is 14th Floor, 1040 West Georgia Street, Vancouver, BC, V6E 4H1. The Company is primarily engaged in the acquisition of revenue-based royalties from renewable energy generation facilities and other clean energy technologies by providing a non-dilutive royalty financing solution to privately-held and publicly- traded renewable energy generation and development companies and clean energy technology companies. These condensed consolidated interim financial statements (the “Financial Statements”) are comprised of RER and its subsidiaries (note 2(c)) (together referred to as the “Company” or the “Group”) and are prepared for the three and six months ended June 30, 2026 and 2025. RE Royalties Ltd. is the ultimate legal parent entity in the Company. These Financial Statements have been prepared on a going concern basis in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”). These Financial Statements do not include all of the information and footnotes required by IFRS Accounting Standards (“IFRS”) for complete financial statements for year-end reporting purposes. On November 1, 2024, the Company acquired the shares of Switch Power Ontario Battery Operations Corp. ("SPOBOC") and Switch Power Ontario Solar Operations Corp. ("SPOSOC") in full and final settlement of the outstanding debt. Consequently, the Company now owns and operates a portfolio of Battery Energy Storage Systems ("BESS") and rooftop solar projects. SPOBOC's principal activity is energy storage as a service, providing behind-the-meter solutions to industrial and real estate clients to realize global adjustment savings, and to provide grid resiliency and ancillary services through medium- to long- term Energy Service Agreements. SPOSOC's principal activity is primarily solar power generation from rooftop solar systems in Ontario. Page 6
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) (b) Restatement of prior year’s comparatives Note Property, plant and equipment Intangible assets Cost, as previously reported 2,455,859$ 3,623,000$ Reallocation due to revision to purchase price allocation SPOBOC 3(a) 1,377,000 (1,377,000) SPOSOC 3(b) (273,734) 273,734 As restated, cost 3,559,125 2,519,734 Amortization, as previously reported 24,709 79,304 Revision to amortization and depreciation due to the reallocation above 23,787 (23,787) 48,496 55,517 As restated, net carrying value as at December 31, 2024 3,510,629$ 2,464,217$ Note Property, plant and equipment Intangible assets Cost, as previously reported 2,455,859$ 3,623,000$ Reallocation due to revision to purchase price allocation SPOBOC 3(a) 1,377,000 (1,377,000) SPOSOC 3(b) (273,734) 273,734 As restated, cost 3,559,125 2,519,734 Accumulated amortization, as previously reported 98,837 317,218 Revision to amortization and depreciation due to the reallocation above 76,853 (76,853) 175,690 240,365 As restated, net carrying value as at June 30, 2025: 3,383,435$ 2,279,369$ These Financial Statements have been prepared on a going concern basis in accordance with IAS 34, Interim Financial Reporting (“IAS 34”), as issued by the International Accounting Standards Board (“IASB”). These Financial Statements do not include all of the information and footnotes required by IFRS Accounting Standards (“IFRS”) for complete financial statements for year-end reporting purposes. These Financial Statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2025. Accounting policies applied herein are the same as those applied in the Company’s annual financial statements. Results for the current reporting period are not necessarily indicative of future results. The Company earns royalty revenue from several renewable power generation sources, which exhibit seasonal behaviors individually but tend to counterbalance each other in a well-diversified portfolio. For instance, wind power generation is stronger in winter than in summer. The opposite is true for solar power generation. At November 1, 2024, the Company provisionally completed the purchase price allocation upon acquisition of SPOBOC (note 3(a)) and SPOSOC (note 3(b)). Subsequent to the finalization of the Company's consolidated financial statements for the year ended December 31, 2024, the Company hired an independent appraiser to ascertain the value of equipment to finalize the purchase price allocation as of the acquisition date, and restated its consolidated statement of financial position as at December 31, 2024 to reflect the revised purchase price allocation. The effects of the restatement on the individual line items within the Company’s consolidated statement of financial position as at December 31, 2024: The effects of the restatement on the individual line items within the Company’s consolidated statement of financial position as at June 30, 2025: Page 7
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) (c) Basis of presentation and consolidation RE Royalties USA Inc. Delaware, USA Acquisition of royalties in renewable projects 100.00% FP OCEP Invest LLC Delaware, USA Holds the OCEP Loan 96.68% Delaware, USA Holds the Delta Loan 98.00% Switch Power Ontario Battery Operates a portfolio of Battery Energy Storage Operations Corp. Ontario, Canada Systems (BESS) 100.00% Solar power generation from rooftop solar Ontario, Canada Systems 100.00% (d) Significant accounting estimates and judgements 3 . BUSINESS COMBINATIONS (a) Switch Power Ontario Battery Operations Corp. (SPOBOC) Economic interest Operations Corp. FP Puerto Rico Invest, LLC Switch Power Ontario Solar There was no change in the use of estimates and judgments during the current period as compared to those described in Note 2 in the Company’s consolidated financial statements for the year ended December 31, 2025. In preparing these Financial Statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expense. Actual results may differ from these estimates. These Financial Statements have been prepared on a historical cost basis except for the loan to Aeolis Wind Power Corporation (note 5) which is recorded at fair value. In addition, these Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information. These Financial Statements include the financial statements of the Company and its following subsidiaries: Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if, and only if, the Company has power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights, to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns. Intra-group balances and transactions, including any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the Financial Statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Company’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. Non-controlling interests are measured initially at their proportionate share of the acquiree’s identifiable net assets at the date of acquisition. Entity Place of business Entity type The Company's acquisition of SPOBOC, pursuant the Switch Loan settlement, in November 2024 was accounted for as a business combination using the acquisition method where the acquired assets and liabilities assumed are recorded at their estimated fair values, which are measured in accordance with the Company’s accounting policies. Details of the business combination are as follows: Page 8
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Consideration (full and final settlement of the Switch Power Loan) 3,797,127$ As originally Adjustments reported note 3(c) As revised Recognised amounts of identifiable net assets: Property, plant and equipment – Battery 1,561,080$ 1,377,000$ 2,938,080$ Intangible assets – contracts with clients 3,177,000 (1,377,000) 1,800,000 Amounts receivable and prepaid expenses 768,759 – 768,759 Trade payables (473,889) – (473,889) Loan payable (385,117) – (385,117) Government grant payable (170,350) – (170,350) Deferred government grants (570,000) – (570,000) Decommissioning liabilities (110,356) – (110,356) Net identifiable assets and liabilities 3,797,127$ –$ 3,797,127$ (b) Switch Power Ontario Solar Operations Corp. (SPOSOC) Consideration (full and final settlement of the Switch Solar Loan) 1,197,862$ As originally Adjustments reported note 3(c) As revised Recognised amounts of identifiable net assets: Property, plant and equipment – Solar 894,779$ (273,734)$ 621,045$ Intangible assets – contract with client 446,000 273,734 719,734 Amounts receivable 44,926 – 44,926 Trade payables (12,172) – (12,172) Decommissioning liabilities (175,671) – (175,671) Net identifiable assets and liabilities 1,197,862$ –$ 1,197,862$ (c) Finalization of purchase price allocation 4 . CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED CASH June 30, December 31, Note 2026 2025 Components of cash and cash equivalents and restricted cash: Cash held in business accounts Denominated in Canadian Dollars 836,400$ 2,454,446$ Denominated in US Dollars 999,843 291,508 Total 1,836,243$ 2,745,954$ In the Company's Consolidated Financial Statements for the year ended December 31, 2024, the fair value estimate of equipment of SPOBOC and SPOSOC was provisionally completed, whereas the fair value estimate of all other assets and liabilities was finalized. Subsequent to the issuance of the Company's consolidated financial statements for the year ended December 31, 2024, the Company hired an independent appraiser to ascertain the value of equipment to finalize the purchase price allocation as of the acquisition date, and restated its consolidated statement of financial position as at December 31, 2024 to reflect the revised purchase price allocation (note 2(b)). The Company's acquisition of SPOSOC, pursuant the Switch Solar Loan settlement, in November 2024 has been accounted for as a business combination using the acquisition method where the acquired assets and liabilities assumed are recorded at their estimated fair values, which are measured in accordance with the Company’s accounting policies. Details of the business combination are as follows: Page 9
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Cash and cash equivalents and restricted cash subject to restrictions on use by the Company: Cash held as collateral against a letter of credit –$ 1,575,000$ Net proceeds from the Green Bonds pending deployment (i) 1,836,243 1,170,954 1,836,243$ 2,745,954$ 5 . SECURED LOANS AND ROYALTY INTERESTS June 30, December 31, Note 2026 2025 Secured Loans – Amortized Cost OCEP 5,204,840$ 5,731,166$ Delta 3,515,918 3,515,918 CleanLight 3,328,692 3,328,692 Clean Communities 18(b) 1,303,444 1,556,655 Abraxas 1,377,808 1,338,958 Alpin Sun Sol Aurora 294,033 577,198 Clear Blue Technologies 284,982 358,544 Solar High Yields 3,162,248 3,051,820 Revolve consolidated 18(b) 2,370,162 2,676,806 20,842,127 22,135,757 Allowance for lifetime expected losses due to credit impairment (stage 3 ECL) (8,164,623) (8,121,136) Total secured loans at amortized cost, net of allowance(s) for expected credit losses 12,677,504 14,014,621 Secured Loans – FVTPL Aeolis Wind Power Corporation 15(e) 855,582 824,115 Royalty Interests Northland Power Inc. 949,021 1,014,471 OntarioCo 200,255 208,753 Scotian Windfields 18(c) 983,165 1,031,123 Revolve CBS Mexico 56,664 60,823 Revolve Cancun 58,941 63,138 AlbertaCo 684,567 724,847 Clean Communities 126,250 129,806 Revolve Windriver 236,835 240,479 Revolve Rooftop Solar 22,375 23,235 Abraxas 33,591 33,591 Solar High Yields 117,642 117,642 Clear Blue Technologies 1 1 Solaris Energy 18(a) 5,244,760 4,140,600 8,714,067 7,788,509 Total 22,247,153$ 22,627,245$ Non-current portion 11,180,597$ 13,577,204$ Current portion 11,066,556 9,050,041 Total 22,247,153$ 22,627,245$ Secured Loans measured at amortized cost are presented net of their allowance for expected credit losses within the consolidated statements of financial position. (i) Net proceeds from the Green Bonds offering to be utilized to finance renewable energy projects and clean energy technology in accordance with the Company's Green Bond Framework. Page 10
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Reconciliation of lifetime expected credit losses (stage-3) and loss upon derecognition relating to secured loans For the six months ended June 30, 2026 Beginning Credit losses Write-off Revaluation Ending Note balance for the period during the period difference balance OCEP 1,276,526$ –$ –$ 43,487$ 1,320,013$ Delta 3,515,918 – – – 3,515,918 CleanLight 3,329,221 – – (529) 3,328,692 Total 8,121,665$ –$ –$ 42,958$ 8,164,623$ For the six months ended June 30, 2025 Beginning Credit losses Write-off Revaluation Ending Note balance for the period during the period difference balance FuseForward Solutions 3,551,279$ –$ –$ –$ 3,551,279$ OCEP 923,348 – – (49,771) 873,577 Delta 1,362,654 – – (73,436) 1,289,218 CleanLight 1,901,221 – – (102,429) 1,798,792 Total 7,738,502$ –$ –$ (225,636)$ 7,512,866$ Secured Loans measured at amortized cost are presented net of their allowance for expected credit losses within the consolidated statements of financial position. The continuity schedules for secured loans at amortized cost are as follows: Page 11
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) 6 . PROPERTY, PLANT AND EQUIPMENT Equipment Solar Battery Total Cost As at January 1, 2026 621,045$ 2,938,080$ 3,559,125$ Additions – – – Balance at June 30, 2026 621,045$ 2,938,080$ 3,559,125$ Accumulated Depreciation and Impairment As at January 1, 2026 32,705$ 596,554$ 629,259$ Depreciation 15,924 102,931 118,855 Balance at June 30, 2026 48,629$ 699,485$ 748,114$ Carrying value As at June 30, 2026 572,416$ 2,238,595$ 2,811,011$ The continuity schedules for royalty interests are as follows: Page 12
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Note Solar Battery Total Cost As at January 1, 2025 – Restated 2(b) 621,045$ 2,938,080$ 3,559,125$ Additions – – – Balance at June 30, 2025 3 621,045$ 2,938,080$ 3,559,125$ Accumulated Depreciation and Impairment As at January 1, 2025 – Restated 2(b) 4,672$ 43,824$ 48,496$ Depreciation – Restated 2(b) 13,466 113,728 127,194 Balance at June 30, 2025 18,138$ 157,552$ 175,690$ Carrying value As at June 30, 2025 2(b) 602,907$ 2,780,528$ 3,383,435$ 7 . INTANGIBLE ASSETS Solar Battery Total Cost As at January 1, 2026 719,734$ 1,800,000$ 2,519,734$ Additions – – – Balance at June 30, 2026 719,734$ 1,800,000$ 2,519,734$ Accumulated Amortization and Impairment As at January 1, 2026 70,384$ 1,800,000$ 1,870,384$ Amortization 34,273 – 34,273 Balance at June 30, 2026 104,657$ 1,800,000$ 1,904,657$ Carrying value As at June 30, 2026 615,077$ –$ 615,077$ Note Solar Battery Total Cost As at January 1, 2025 – Restated 2(b) 719,734$ 1,800,000$ 2,519,734$ Additions – – – Balance at June 30, 2025 719,734$ 1,800,000$ 2,519,734$ Accumulated Amortization and Impairment As at January 1, 2025 2(b) 10,055$ 45,462$ 55,517$ Amortization – Restated 2(b) 28,982 155,866 184,848 Balance at June 30, 2025 39,037$ 201,328$ 240,365$ Carrying value As at June 30, 2025 2(b) 680,697$ 1,598,672$ 2,279,369$ Page 13
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) 8 . DERIVATIVE FINANCIAL ASSET AND MARKETABLE SECURITIES Six months ended Year ended Continuity of derivative financial asset and marketable securities June 30, December 31, 2026 2025 Beginning Balance 113,334$ 1$ Initial recognition of the Clear Blue Units (i) – 176,111 Loss on revaluation of derivative financial asset (58,723) (62,778) Ending Balance (ii) 54,611$ 113,334$ 9 . AMOUNTS RECEIVABLE AND PREPAID EXPENSES – CURRENT June 30, December 31, 2026 2025 Accrued revenue receivable - royalty revenue 1,314,132$ 966,101$ Accrued revenue receivable - energy revenue 302,396 180,752 Prepaid expenses 114,758 113,476 Interest and transation cost recoverable pursuant to Revolve LOI – 338,835 Other amounts receivable 115,078 81,638 1,846,364 1,680,802 Expected lifetime credit losses - stage 3 (129,841) (771,036) Total 1,716,523$ 909,766$ 10 . GREEN BONDS Series Interest rate CAD USD Series-2 6% p.a. 5,166 4,000 Series-3 9% p.a. 16,423 1,242 Series-4 9% p.a. 6,529 340 28,118 5,582 August 2029 (i) Each canadian dollar denominated Green Bond has principal amount of $1,000 per Green Bond, and each US dollar denominated Green Bond has principal amount of US$1,000 per Green Bond. Maturity (i) At initial recognition, the fair value of the Clear Blue shares was determined using the market price of the shares as of the grant date and the fair value of the Clear Blue warrants was determined using the Black-Scholes Option Valuation model and the following assumptions: risk-free interest rate of 2.58%; expected annual volatility of 166%; exercise price of $0.30; market price of $0.08; and time to expiry of 2 years. (iii) The Green Bonds were issued under a trust indenture (the "Indenture") dated August 10, 2020 with Western Pacific Trust Company, as trustee, and subsequent supplements to the Indenture. Total outstanding at June 30, 2026 (ii) At June 30, 2026, the fair value of the Clear Blue shares was determined using the market price of the shares and the fair value of the Clear Blue warrants was determined using the Black-Scholes Option Valuation model and the following assumptions: risk-free interest rate of 2.43%; expected annual volatility of 166%; exercise price of $0.30; market price of $0.035; and time to expiry of 0.81 years. At December 31, 2025, the Company recorded an expected credit loss of $641,195 against the amount receivable from NOMAD with respect to accrued royalty revenue. The Company reversed the loss during the six months ended June 30, 2026, as it fully recovered the overdue amounts receivable from NOMAD after the end of the reporting period in July 2026. December 2026 January 2028 In August 2020, the Company announced the inaugural offering of its 5-year green bonds ("Green Bonds"), and has issued four series of Green Bonds. The following Green Bonds were outstanding at June 30, 2026: (ii) The Green Bonds are senior obligations of the Company, secured against the Company's portfolio of royalty and loan investments, and BESS and solar operating projects. No. of bonds denominated in: Page 14
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Six months ended Year ended June 30, December 31, Senior Secured Green Bonds 2026 2025 Beginning balance 34,597,567$ 44,085,035$ Repayment of Series-1 Green Bonds (364,000) (9,802,000) Amortization of financing costs 356,880 876,918 Foreign exchange translation difference 260,680 (562,386) Ending balance 34,851,127$ 34,597,567$ Non-current portion 24,102,185 23,766,890 Current portion 10,748,942 10,830,677 Ending balance (i) 34,851,127$ 34,597,567$ Carrying amount of the Green Bond liability by series: Series-1 6% Green Bonds –$ 362,128$ Series-2 6% Green Bonds 10,748,942 10,468,549 Series-3 9% Green Bonds 17,576,563 17,333,303 Series-4 9% Green Bonds 6,525,622 6,433,587 Ending balance 34,851,127$ 34,597,567$ June 30, December 31, 2026 2025 Interest reserve account 1,459,195$ 1,461,185$ 11 . DECOMMISSIONING LIABILITIES June 30, December 31, 2026 2025 Beginning balance 264,521$ 294,659$ Accretion and remeasurement 3,724 (30,138) Ending balance 268,245$ 264,521$ 12 . SHARE CAPITAL AND RESERVES (a) Share capital (i) Includes USD-denominated Green Bonds for an aggregate principal sum of US$5,242,000 ($7,540,617) (note 15(c)) Pursuant to the Green Bonds indenture, the Company is required to maintain, with the Bond Trustee, a deposit equivalent to interest payments for six months. The balance of the interest reserve account is as follows: Decommissioning liabilities represent the present value of future cash outflows required to dismantle BESS and solar assets and restore the sites per legal and regulatory requirements. The amount recognized as a provision is the best estimate of the expenditures required to settle the provision. The reclamation provision related to the BESS and Solar assets has been recorded using a discount rate of 3.23% and an inflation factor of 2% (December 31, 2025: discount rate of 3.85% and an inflation factor of 2%). As at June 30, 2026, the undiscounted estimated reclamation costs of SPOBOC and SPOSOC are approximately $127,275 (December 31, 2025: $127,275) and $209,755 (December 31, 2025: $209,755), respectively. The aggregate carrying amount of the obligation is: The authorized share capital of the Company was comprised of an unlimited number of common shares without par value (the “Common Shares”). All issued shares are fully paid. Interest reserve account Page 15
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) (b) Reserves June 30, June 30, 2026 2025 Share-based payment reserve 1,954,242$ 1,768,047$ Share warrants reserve 648,913 648,913 Other reserves 87,000 87,000 Foreign currency translation reserve 562,692 458,966 Total reserves 3,252,847$ 2,962,926$ Share-based payment expense Six months ended June 30, 2026 2025 Expense arising from equity-settled share-based payment transactions Share purchase options 114,455$ –$ Restricted Share Units ("RSUs") 71,740 19,723 186,195 19,723 Changes in the fair value of cash-settled share-based awards 3,259 122 Total 189,454$ 19,845$ Six months ended Six months ended June 30, 2026 June 30, 2025 Weighted Weighted Number of average Number of average Options exercise price Options exercise price Outstanding Options – beginning balance 2,030,000 1.00$ 2,030,000 1.00$ Granted during the period 1,195,000 0.30$ – –$ Expired (2,030,000) 1.00$ – –$ Outstanding Options – ending balance 1,195,000 0.30$ 2,030,000 1.00$ Options Exercisable – ending balance 398,333 0.30$ 1,502,000 1.13$ June 30, 2026 December 31, 2025 Weighted Weighted average average Number of remaining Number of remaining Exercise price Options contractual life (years) Options contractual life (years) $ 1.32 – – 1,070,000 0.13 $ 0.65 – – 960,000 0.33 $ 0.30 1,195,000 2.80 – – 1,195,000 2.80 2,030,000 0.22 Remaining contractual life of the Company’s common share purchase options: The equity-settled share-based payment expenses represent amortization of the fair value of the Company's share purchase options and RSUs over their respective vesting term. The authorized share capital of the Company was comprised of an unlimited number of common shares without par value (the “Common Shares”). All issued shares are fully paid. Continuity of share purchase options: Page 16
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Deferred share units and restricted share units Six months ended Six months ended June 30, 2026 June 30, 2025 DSUs RSUs DSUs RSUs Outstanding at the beginning of the period 153,334 – 180,501 157,000 Granted during the period (i) – 800,000 – – Outstanding at the end of the period 153,334 800,000 180,501 157,000 Units vested – ending balance 153,334 – 180,501 – Share purchase warrant reserve Expiry Exercise January 1, Warrants Warrants Warrants June 30, date price 2026 issued exercised expired 2026 0.50$ 297,780 – – – 297,780 0.50$ 130,550 – – – 130,550 0.50$ 45,500 – – – 45,500 473,830 – – – 473,830 Expiry Exercise January 1, Warrants Warrants Warrants June 30, date price 2025 issued exercised expired 2025 January 30, 2026 (i) 0.75$ 239,493 – – – 239,493 February 3, 2026 (i) 0.75$ 319,853 – – – 319,853 February 28, 2026 (i) 0.75$ 91,420 – – – 91,420 March 1, 2026 (i) 0.75$ 159,740 – – – 159,740 0.75$ 13,860 – – – 13,860 0.50$ 297,780 – – – 297,780 0.50$ 130,550 – – – 130,550 0.50$ 45,500 – – – 45,500 1,298,196 – – – 1,298,196 (c) Distribution to shareholders The continuity of the Company’s share purchase warrants for the six months ended June 30, 2025 is as follows: March 31, 2026 (i) Sunday, August 29, 2027 December 10, 2027 (ii) No dividend was declared during the six months ended June 30, 2026. During six months ended 2025, the Company's declared the following cash distributions to its shareholders: (i) These represent the warrants issued to the underwriters for the Series-3 Public offering and Series-3 Private placement of Series-3 Green Bonds (note 10), and their weighted average fair value as of the date of issuance was $0.2296 per warrant, which fair value was determined using the Black-Scholes Option Valuation model and the following assumptions: weighted average risk-free interest rate of 3.45% ; expected volatility of 55%; exercise price of $0.75; underlying weighted average market price of $0.76 per share; and time to expiry of 3 years. (ii) These represent the warrants issued to the underwriters for the Series-4 Private placement of Series-4 Green Bonds (note 10), and their weighted average fair value as of the date of issuance was $0.1007 per warrant, which fair value was determined using the Black-Scholes Option Valuation model and the following assumptions: weighted average risk-free interest rate of 3.01% ; expected volatility of 53.29%; exercise price of $0.5; underlying weighted average market price of $0.47 per share; and time to expiry of 3 years. Sunday, August 29, 2027 November 13, 2027 (ii) December 10, 2027 (ii) The continuity of the Company’s share purchase warrants for the six months ended June 30, 2026 is as follows: Continuity of DSUs and RSUs: (i) The grant date fair value for these RSUs was $0.29 per unit. November 13, 2027 (ii) Page 17
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Per share Total Six months ended June 30, 2025 0.01$ 433,768$ 0.01 433,768 867,536$ 13 . RELATED PARTY TRANSACTIONS Remuneration for services rendered Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Short-term employment benefits (i) 74,227$ 128,982$ 163,309$ 256,900$ Equity-settled share-based compensation 22,400 1,507 64,100 3,015 Cash-settled share-based compensation (747) (49) 3,259 122 Total 95,880$ 130,440$ 230,668$ 260,037$ (i) Includes executive salaries and directors’ fees relating to the Company's key management personnel. 14 . BASIC AND DILUTED INCOME (LOSS) PER SHARE ATTRIBUT ABLE TO SHAREHOLDERS OF THE COMPANY 15 . FINANCIAL RISK MANAGEMENT (a) Credit Risk Key management personnel (“KMP”) are those persons, including its directors and executive officers, that have the authority and responsibility for planning, directing and controlling the activities of the Company. Transactions with KMP were as follows: No dividend was declared during the six months ended June 30, 2026. During six months ended 2025, the Company's declared the following cash distributions to its shareholders: Amount In December 2025, the Company's Board of Directors declared a cash distribution for the total amount of $435,220 to its shareholders, which distribution was paid in January 2026. Declaration date Record date Payment date The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders by the weighted average number of common shares that were outstanding during the period. Diluted loss per share does not adjust loss attributable to common shareholders or the weighted average number of common shares outstanding when the effect is anti-dilutive. For purposes of the calculation of diluted loss per share for the six months ended June 30, 2026 and June 30, 2025, the share purchase options, DSUs, RSUs, and warrants were excluded from the calculation of diluted loss per share as they were anti-dilutive. Credit risk is the risk of potential loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations. The Company’s credit risk is primarily attributable to its secured loans (note 5) and other financial assets, including cash and cash equivalents and restricted cash and amounts receivable. The Company limits the exposure to credit risk for cash and cash equivalents and restricted cash by only investing it with high-credit quality financial institutions in business and saving accounts, which are available on demand by the Company. The Company limits the exposure to credit risk with respect to secured loans through securing the Company's right therein against the underlying renewable energy assets or against the borrowers' ownership interest in the underlying renewable energy assets. January 8, 2025 January 29, 2025 February 19, 2025 April 9, 2025 April 30, 2025 May 21, 2025 The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes, inclusive of documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the way in which such exposure is managed is provided as follows: Page 18
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Category Performing Doubtful In default Write off ECL Stage Gross Carrying Value Allowance for Credit Loss Net Carrying Value Secured loans Cleanlight 3 3,328,692$ $ (3,328,692) $ – OCEP 3 5,204,840 (1,320,013) 3,884,827 Delta 3 3,515,918 (3,515,918) – 12,049,450 (8,164,623) 3,884,827 Amounts receivable Cleanlight 3 129,841 (129,841) – 129,841 (129,841) – 12,179,291 (8,294,464) 3,884,827 1 8,792,677 – 8,792,677 Total $ 20,971,968 $ (8,294,464) $ 12,677,504 Secured loans, under Stage 3 as mentioned above (i) Description Basis for recognizing expected credit losses The group's current credit risk grading framework comprises the following categories: The Company limits the exposure to credit risk for cash and cash equivalents and restricted cash by only investing it with high-credit quality financial institutions in business and saving accounts, which are available on demand by the Company. The Company limits the exposure to credit risk with respect to secured loans through securing the Company's right therein against the underlying renewable energy assets or against the borrowers' ownership interest in the underlying renewable energy assets. Amount is written off The table below presents the Company’s financial assets measured at amortized cost, the stages they are in for ECL measurement and the balance of the ECL as at June 30, 2026. The gross carrying value of the financial asset best represents the maximum exposure to credit risk at the reporting date: June 30, 2026 (i) Considering a negligible probability of default, as well as collateral available to the Company, no ECL provision has been recorded for the secured loans classified under stage 1. The table below presents the Company’s financial assets measured at amortized cost, the stages they are in for ECL measurement and the balance of the ECL as at December 31, 2025. The gross carrying value of the financial asset best represents the maximum exposure to credit risk at the reporting date: There is evidence indicating that the debtor is in severe financial difficulty and the group has no realistic prospect of recovery The counterparty has a low risk of default and does not have any past due amounts Stage 1 - 12-month ECL There has been a significant increase in credit risk Stage 2 - Lifetime ECL - not credit impaired There is evidence indicating the asset is credit impaired Stage 3 - Lifetime ECL - credit impaired Page 19
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) ECL Stage Gross Carrying Value Allowance for Credit Loss Net Carrying Value Secured loans Cleanlight 3 3,328,692$ $ (3,328,692) $ – OCEP 3 5,731,166 (1,276,526) 4,454,640 Delta 3 3,515,918 (3,515,918) – 12,575,776 (8,121,136) 4,454,640 Amounts receivable NOMAD 3 641,195 (641,195) – Cleanlight 3 129,841 (129,841) – 771,036 (771,036) – 13,346,812 (8,892,172) 4,454,640 1 9,559,981 – 9,559,981 Total $ 22,906,793 $ (8,892,172) $ 14,014,621 (b) Liquidity Risk As of June 30, 2026 Carrying Less than Between Between Amount Total 12 months 1 - 3 years 4 - 5 years Green Bonds (ii) Principal sum 34,851,127$ 36,041,091$ 10,843,600$ 25,197,491$ –$ Interest payments 4,925,624 2,593,973 2,331,651 – 34,851,127 40,966,715 13,437,573 27,529,142 – Trade payables and accrued liabilities 390,328 390,328 390,328 – – 35,241,455$ 41,357,043$ 13,827,901$ 27,529,142$ –$ (i) The amounts are gross and undiscounted, and include contractual interest payments. December 31, 2025 (ii) Contractual cash flows relating to the US Dollar-denominated Green Bonds are converted into the reporting currency Contractual Cash Flows (i) The table below presents the Company’s financial assets measured at amortized cost, the stages they are in for ECL measurement and the balance of the ECL as at December 31, 2025. The gross carrying value of the financial asset best represents the maximum exposure to credit risk at the reporting date: Liquidity risk is the risk that the Company will not be able to meet its financial obligations when they become due. The Company ensures, as far as reasonably possible, it will have sufficient capital in order to meet short to medium term business requirements, after taking into account cash flows from operations and the Company’s holdings of cash. The Company’s cash is currently invested in business accounts. The Company’s financial liabilities and other liabilities are comprised of the following: based on the exchange rate as of the reporting date. Secured loans, under Stage 3 as mentioned (i) Considering a negligible probability of default, as well as collateral available to the Company, no ECL provision has been recorded for the secured loans classified under stage 1. Page 20
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) (c) Foreign exchange risk June 30, 2026 December 31, 2025 US Canadian US Canadian Note Dollars Dollars Dollars Dollars Cash 4 704,412 999,843$ 212,361 291,508$ Secured loans 5 2,736,950 3,884,827 3,245,166 4,454,640 3,441,362 4,884,670 3,457,527 4,746,148 Green Bonds 10 (5,582,000) (7,923,091) (5,582,000) (7,662,411) Net exposure, including foreign operations (2,140,638) (3,038,421)$ (2,124,473) (2,916,263) Less: Cash and Secured loans held in foreign operations (3,392,075) (4,814,711) (3,422,143) (4,697,576) Net exposure, excluding foreign operaitons (5,532,713)$ (7,853,132)$ (5,546,616)$ (7,613,839)$ Exchange rate as of the reporting date (Canadian Dollar per US Dollar) $ 1.4194 $ 1.3727 Six months ended June 30, 2026 2025 $1.3877 $1.4099 Sensitivity a 1% increase in the value of the U.S. dollar relative to the Canadian dollar (79,000)$ (76,000)$ 48,000$ 47,000$ (d) Interest rate risk income/loss with a 1% increase in the value of the U.S. dollar relative to Exchange loss that would have been recorded in net income/loss with Exchange income that would have been recorded in other comprehensive the Canadian dollar The Company is exposed to foreign currency risk in respect of its US Dollar-denominated monetary assets and liabilities as summarized below: All other investments in financial assets and borrowings through financial liabilities of the Company are subject to fixed interest rates and are carried at amortized cost in these Financial Statements, and are therefore not subject to interest rate risk. The Company does not have any hedging arrangement with respect to its net exposure to foreign currency risks. The exchange differences arising on translation of foreign operations are recognised in other comprehensive difference. The Company is subject to interest rate fair value risk with respect to the secured loan to Aeolis, which is carried at fair value (note 15(e)). An increase of 25 basis points in discount rates will result in a decrease of approximately $10,000 in the fair value of the secured loan to Aeolis. Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. The Company is subject to interest rate cash flow risk with respect to its investments in cash and cash equivalents and restricted cash. The Company’s policy is to invest cash at fixed rates of interest and cash reserves are to be maintained in cash in order to maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates and when cash and cash equivalents mature impact interest income earned. Average exchange rate Page 21
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) (e) Fair Value • • • Total Quoted prices in active markets for identical assets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 ASSETS Secured loans - FVTPL 855,582$ –$ –$ 855,582$ Derivative financial asset and marketable securities 54,611$ 48,611$ 6,000$ –$ LIABILITIES Cash-settled share-based payment liability 5,999$ 5,999$ –$ –$ Total 916,192$ 54,610$ 6,000$ 855,582$ Total Quoted prices in active markets for identical assets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 ASSETS Secured loans - FVTPL 824,115$ –$ –$ 824,115$ Derivative financial asset and marketable securities 113,334$ 83,334$ 30,000$ –$ LIABILITIES Cash-settled share-based payment liability 2,740$ 2,740$ –$ –$ Total 940,189$ 86,074$ 30,000$ 824,115$ The following table sets forth the Company's financial assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same – to estimate the price at which an orderly transaction to sell an asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability). As of December 31, 2025 As of June 30, 2026 Level 3 inputs are unobservable (supported by little or no market activity). Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. All other investments in financial assets and borrowings through financial liabilities of the Company are subject to fixed interest rates and are carried at amortized cost in these Financial Statements, and are therefore not subject to interest rate risk. Page 22
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) Aeolis Loan (f) Capital Management 16 . SEGMENT INFORMATION RER (i) SPOBOC SPOSOC Total Segment revenue and income (no internal revenue is generated) Royalty revenue 875,250$ –$ –$ 875,250$ Finance income 1,486,261 786 1,027 1,488,074 Energy revenue – 330,801 113,265 444,066 2,361,511 331,587 114,292 2,807,390 Segment cost of sales Amortization and depreciation – (102,931) (50,197) (153,128) Other operating expenses – (216,286) (23,288) (239,574) Depletion of royalty interests (178,602) – – (178,602) (178,602) (319,217) (73,485) (571,304) Segment gross (loss) profit 2,182,909$ 12,370$ 40,807$ 2,236,086$ Segment net (loss) profit (1,100,169)$ 8,910$ 38,140$ (1,053,119)$ At the end of the current reporting period, the Company was required to maintain a debt to equity ratio of 3:1 under certain covenants in the Green Bonds indenture (note (10)), respectively. Prior to May 28, 2026, the Green Bond indenture also required the Company to maintain, subject to a cure period, a minimum debt coverage ratio ("Debt Coverage Ratio") as determined pursuant to the Indenture by dividing its quarterly earnings, before certain items such as interest, taxes, depreciation, amortization, and extraordinary items, by total interest expenses for a fiscal quarter. On May 28, 2026, an extraordinary resolution was approved in the special meeting of bondholders to amend the Indenture thereby removing the Interest Coverage Ratio covenant and increasing the principal payable, at the option of the bondholders, by the Company to 102% of principal value to the bondholders in the event of a change of control of the Company. During the six months ended June 30, 2026, the Company operated in the following three reportable segments: (i) RER segment in the table above includes all other activities of the Company besides SPOBOC and SPOSOC. There were no transfers between the levels of the fair value hierarchy during the reporting period. The Company's policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain future development of the business. The capital structure of the Company consists of the following: a) equity, comprising share capital, net of reserves and accumulated deficit; and b) debt, comprising the Green Bonds. There has been no change in management's approach since December 31, 2025. The Aeolis Loan is classified as a financial asset at fair value through profit and loss (note 5). At June 30, 2026, the fair value of the Aeolis Loan was determined by discounting future cash flows using annual discount rates in the range of 6.37% - 7.84% (December 31, 2025: 6.40% - 7.93%) applicable to the term of each cash flow and average annual long term inflation rate of 3% (December 31, 2025: 3%). At the end of the reporting period, the fair value measurement of the Aeolis Loan (note 5) has been categorized within level 3 of the fair value hierarchy. The Company has assessed the fair value of the instrument based on a valuation technique using unobservable discounted future cash flows. Significant inputs used in the valuation of the Aeolis Loan that are not observable market data were the credit spread and other elements constituting the discount rates and inflation rates used; these inputs require judgement. An increase in average future annual inflation rate used in valuation of the Aeolis Loan from 3.0% to 3.1% would increase its fair value by approximately $2,000. Page 23
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) RER SPOBOC SPOSOC Total Total segment assets 26,992,053$ 2,623,415$ 1,315,764$ 30,931,232$ Total segment Liabilities 35,452,666$ 188,571$ 174,462$ 35,815,699$ RER (i) SPOBOC SPOSOC Total Segment revenue and income (no internal revenue is generated) Royalty revenue 622,379$ –$ –$ 622,379$ Finance income 2,415,208 1,482 635 2,417,325 Energy revenue – 463,943 108,863 572,806 3,037,587 465,425 109,498 3,612,510 Segment cost of sales Amortization and depreciation – (269,594) (42,448) (312,042) Other operating expenses – (261,592) (15,956) (277,548) Depletion of royalty interests (288,893) – – (288,893) (288,893) (531,186) (58,404) (878,483) Segment gross (loss) profit 2,748,694$ (65,761)$ 51,094$ 2,734,027$ Segment net (loss) profit (924,851)$ (128,716)$ 10,675$ (1,042,892)$ RER SPOBOC SPOSOC Total Total segment assets 27,594,316$ 2,649,206$ 1,386,845$ 31,630,367$ Total segment Liabilities 35,363,283$ 186,182$ 188,673$ 35,738,138$ June 30, December 31, 2026 2025 North America Canada 6,757,415$ 7,079,929$ United States 5,244,760 4,140,600 Mexico 137,980 147,196 Total 12,140,155$ 11,367,725$ The geographical breakdown of the Company’s non-current assets, other than financial assets, is as follows: At December 31, 2025, total assets and liabilities of the Company's reportable segments were as follows: At June 30, 2026, total assets and liabilities of the Company's reportable segments were as follows: (i) RER segment in the table above includes all other activities of the Company besides SPOBOC and SPOSOC. The Company’s earns its revenue and income from various projects primarily in North America. During the six months ended June 30, 2025, the Company operated in the following three reportable segments: Page 24
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RE Royalties Ltd. Notes to the Condensed Consolidated Interim Financial Statements For the three and six months ended June 30, 2026 and 2025 (Unaudited – Expressed in Canadian Dollars, unless otherwise stated) 17 . COMMITMENT 18 . EVENTS AFTER THE REPORTING PERIOD (a) The payment of third tranche of Investment in Solaris Energy’s Portfolio (b) Repayment of secured loans receivable (note 5) (c) Partial royalty buyback by Scotian Windfields The principal activity of SPOBOC is global adjustment and ancillary services revenue from Battery Energy Storage Systems in Ontario. Peak Power Inc. provides software maintenance services, predicting the co-incident peaks related to Global Adjustment abatement in Ontario, in order for the Company to continue providing energy as outlined in the agreements with clients. The term of each software maintenance service agreement aligns with respective energy service agreement’s term detailed herein, and consists of an annual fixed fee of $92,300 and an additional variable fee based on the energy discharged each month (note 3). On August 5, 2026, the Company announced that a further investment of US$1 million ($1.4 million) was completed toward the purchase of royalties on a portfolio of Solaris Energy distributed generation solar projects located throughout the United States. After the end of the reporting period and before these Financial Statements were approved for issuance, the Company received full repayments of the Revolve Consolidated loan ($2.4 million) and the secured loan receivable from Clean Communities ($1.3 million). Effective July 1, 2026, the Royalty Agreement between the Company and Scotian Windfields was amended, whereby the royalty rate was reduced from 8% to 6.8% following a partial buyback of the royalty interest for total consideration of $300,000, which amount was received in June 2026. Page 25