Private & Confidential
under
Geothermal Royalty Opportunity
Fall 2026
Disclaimer
Forward-Looking Statements
This presentation may contain ‘forward-looking information’ and ‘forward-looking statements’ within the meaning of applicable Canadian and U.S. securities laws (collectively, “forward-looking statements”). Such forward-looking statements may be identified by words such as “anticipates,” “assumes,” “believes,” “can,” “could,” “estimates,” “expects,” “forecasts,” “guides,” “intends,” “is confident that”, “may,” “plans,” “seeks,” “projects,” “targets,” and “would,” and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management.
Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, the fact that the company currently has few assets other than cash and limited operations; the company has no operating history or revenues and is entirely dependent on financings to support its future operations; the company will need to raise money in the future, the terms of which may not be favorable and could be dilutive; the company may never pay dividends; the success of the business will be dependent on its ability to execute on its strategy, including identifying investors and clients, acquiring technology and intellectual property, executing royalty agreements and other factors. Under Royalty does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Every major natural resource industry eventually develops a royalty market because royalties become one of the most efficient ways to finance growth while creating long-duration cash flowing assets.
Next-generation geothermal is reaching that same point in its evolution.
Investment Thesis
Building the Financial Infrastructure for a Multi-trillion-dollar Geothermal Industry
Every major natural resource industry eventually develops a royalty market. We believe next-generation geothermal is reaching that same point in its evolution. Under Royalty introduces a differentiated financing model that provides aligned capital across both early-stage exploration and long-term project development.
- Next-generation geothermal is approaching a historic inflection point driven by AI, electrification, and energy security; becoming one of the fastest-growing and highly scalable infrastructure markets.
- Technology advances and declining development costs are expected to unlock a multi-trillion-dollar global market over the coming decades; with an estimated ~US$2.4 trillion investment required by 2050 to achieve growth forecasts.
- Equity funds technology. Debt funds operating projects. No institutional capital solution currently exists for the value-creation stage in between.
- Developers require flexible, non-dilutive capital to bridge resource validation, early commercialization, and multi-project expansion; this results in a unique risk profile limiting traditional renewable investor participation (i.e. wind and solar).
- Introduces the missing layer in the geothermal capital stack – early, patient and flexible capital.
- Introduces the royalty financing model proven in mining and oil & gas to deploy capital alongside early-stage equity, reducing upfront cost.
- Flexible royalty capital accelerates project development and enables developers to unlock their pipelines while preserving ownership.
- Creates long-duration royalty assets with an attractive risk-adjusted return potential.
- Under Royalty leadership has deep relationships with project and technology developers across the geothermal industry.
- Under Royalty is positioned as an industry partner for geothermal developers, providing access to capital at a critical time in project development that leads to long-term pipeline of future opportunities.
- Direct equity investments, project origination and land exploration further contributes to significant growth potential.
Market Opportunity
Next-Generation Geothermal Opportunity
A US$2+ Trillion Opportunity
Advances in drilling technology, exponential electricity demand growth, and the requirement of clean baseload power have pushed next-generation geothermal development, which could provide up to 15% of total global energy demand growth by 2050 (currently <1%), requiring a total investment of ~US$1 trillion by 2035 and ~US$2.4 trillion by 2050.
- Electricity Demand Growth: Global electricity demand is expected to be 80% - 115% higher in 2050 versus current levels (IEA World Energy Outlook 2025)
- Clean Energy / Fossil Fuel Switching: Increasing power demand coupled with focus on clean power generation and retiring fossil fuel sources further contributes to expected geothermal growth (clean power source)
- Hyperscaler Demand: Majority of new OECD demand driven by datacenters and an evolving procurement process. Next-generation geothermal provides reliable 24/7 power generation relative to alternative renewable energy sources
- Improving LCOE and Technology: Next-generation geothermal is reservoir-independent, improving applicability globally. Improving technology and LCOE expected to further accelerate adoption
**IEA Next-Generation Adoption (Medium Case). Source(s): International Energy Agency (IEA) – The Future of Geothermal Energy. IEA World Energy Outlook 2025
Investment Growth Opportunity & Critical Inflection Point
Momentum and Early Stage Create Generational Opportunity
Next-generation geothermal financing momentum is at an all-time high. However, the industry is at a critical inflection point, where equity has de-risked technology, but debt financing is not yet available. A hybrid financing approach is required to scale next-generation geothermal and unlock broad deployment.
Momentum is at an all-time high for next-generation geothermal. The majority of capital raised to date is in the form of equity, creating an opportunity to replace or supplement equity with royalty financing.
Equity capital has de-risked the technology, but debt capital is not yet readily available. Under Royalty will capitalize on this unique timing to generate attractive risk-adjusted returns.
*2026 YTD includes Fervo: US$421 million Project Finance, US$1.89 billion IPO and US$285 million overallotment; Sage US$97 million Series B; Zanskar US$115 million Series C; US$134 million Quaise Series B and Hepahe US$17.8mm Series A. Does not include potential XGS Energy IPO or CTR SPAC transaction. Source(s): IEA, Public Filings, Under Royalty, Revive Capital.
Why a Royalty Structure?
A Proven Financing Model That Aligns Developer Growth with Long-Term Investor Returns
Royalty financing has been refined over decades across mining and oil & gas because it efficiently bridges early-stage capital gaps while creating long-duration, production-linked cash flows. Under Royalty is introducing this proven model to next-generation geothermal at a pivotal stage in the industry's evolution.
- Long-Duration Production-Linked Cash Flows
- Attractive Risk-Adjusted Return Profile
- Embedded Upside Through Project Expansion
- Portfolio Diversification Across Assets & Developers
- Downside Protection Relative to Equity Ownership
- Low Operating Intensity & Capital Efficiency
- Inflation-Linked Revenue Characteristics
- Premium Valuation Potential as Royalty Portfolio Scales
- Flexible, Non-Dilutive Growth Capital
- Maintain Control
- Operational & Strategic Flexibility
- Cost of Capital & Tax Advantage
- Accelerated Growth & Pipeline Expansion
- Bridge the Gap of FOAK
A Proven Financial Structure in the Geothermal Industry
Under Royalty intends to bring proven resource royalty structures to next-generation geothermal projects. Royalty financing supports the early-stage capital gap with non-dilutive funding, effectively de-risking projects and accelerating deployment.
- Long-term Capital: Royalty structures remain an important component of project funding across mature sectors (oil & gas) and emerging sectors alike (mining). Geothermal royalty represents a long-term capital deployment opportunity.
- Scale of Opportunity: Under Royalty targets up to 20% of early stage project capital, representing a total opportunity set of over US$100 billion.
- Flexible Capital: Ability to deploy royalty capital throughout the project life (i.e. early stage, bridge financing, cost overruns, etc.) and can be structured around key regulatory and construction timelines.
- Benefit to Project Developers: Can replace equity or debt capital. Reduces project financing risk and expands equity IRRs.
An Attractive and Flexible Solution for Project Developers
By utilizing a royalty finance structure, the project developer reduces and delays the amount of equity capital required and unlocks a higher return on equity. Royalty financing is a flexible structure that can be deployed throughout the project life, to the benefit of both Under Royalty and project developers.
Source: CapitalIQ. Historical royalty capital deployment based on publicly disclosed capital expenditures from select North American royalty companies (excluding corporate mergers and acquisitions).
Applying the Goldstrike Model to Next-Generation Geothermal
Early Stage Royalty Investment Drives Future Pipeline and Value Creation
Franco-Nevada, a leader in resource royalties, generated a value multiplier effect on its initial Goldstrike royalty. Under Royalty is seeking to emulate this model on next-generation geothermal royalty investments.
Franco-Nevada’s first royalty was in 1986 on the Goldstrike mine in the Carlin Trend.
- 1986First royalty
Franco-Nevada's first royalty: ~US$2mm for 4% revenue on ~44,000oz of gold produced annually by Western States Mining.
- 1987Barrick acquires
Barrick Gold acquired Goldstrike; future deep-level exploration would follow.
- 1990s50mm oz orebody
Deep-level exploration resulted in a 50-million-ounce orebody — far beyond the resource known at the time of the initial royalty.
- 2006US$19.5mm / year
By 2006 the mine was producing US$19.5mm in annual royalty revenue and ~1.9mm oz of gold.
Under Royalty sees potential to emulate Franco-Nevada’s Goldstrike investment through early stage next-generation modular geothermal royalties.
● Under Royalty Capture Area · pilot support unlocks royalty on the entire project
- Initial royalty: Under Royalty will provide ~US$5-$10mm in capital to support a next-generation modular pilot project.
- Upside: Initial support of the pilot results in royalty across the entire project at no additional cost. Further upside potential through ROFRs to expand royalty on future phases.
- Scalability and Repeatability: Under Royalty views this as a repeatable opportunity across a portfolio of scalable next-generation geothermal projects.
Initial royalty: ~US$2mm for 4% revenue based on ~44,000oz of gold produced annually by Western States Mining.
Upside: Barrick Gold acquired Goldstrike in 1987 and future deep level exploration resulted in a 50mm oz orebody. By 2006, the mine was producing US$19.5mm in royalty revenue and ~1.9mm oz of gold.
Royalty Growth: Franco-Nevada has subsequently completed multiple royalties at Goldstrike. Its initial US$2mm investment led to the opportunity to unlock >US$1.5bn in royalty revenue.
Source: Franco-Nevada public disclosure.
Bullseye Investment – Market Access
Initial Investment of US$5-$10 Million Driving Towards 400 MW of Capacity
Under Royalty has submitted a non-binding commitment letter for a US$5-$10 million cost-sharing investment to support early-stage development of a first-of-a-kind EGS project in North America, which could drive future royalty participation on over 1 GW of next-gen geothermal capacity.
Royalty Finance →
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- Pilot Project: 2–4 MW pilot developed over the next 6–12 months to demonstrate the resource in place.
- Phase 1: 100 MW expansion at >US$550mm cost estimate.
- Future Phases: Additional expansion opportunities to bring total project capacity to 400 MW.
- Secured Royalty Pipeline: As part of the initial commitment, Under Royalty will receive the right to provide royalty financing for up to 20% (at its option) of future expansions — a ~US$250mm deployment opportunity.
- Relationship & Future Opportunities: The developer has identified additional next-generation geothermal projects representing more than 1 GW of total capacity.
- Under Royalty's Capital: Bridges the funding gap between pilot project requirements and available government grants.
- Project Scalability
- Top-tier Counterparty
- Low Jurisdictional Risk
- Accretive Returns
- Future Royalty Potential
Total Addressable Next-Generation Geothermal Market
Under Royalty Targeting ~6 GW of Royalty Exposure
The expected adoption and deployment of next-generation geothermal technology requires significant capital expenditures. Due to the current stage of development, Under Royalty has a unique opportunity to bridge the financing gap and secure both near and long term royalty opportunities on next-generation geothermal assets.
Red bars: Phase 1’s (2027–30) · charcoal: Scale-Up (2031–38). Hover a year for capex and funding detail.
Improving technology and declining costs are expected to accelerate geothermal deployment and predicted MW starts. As economics improve and the cost of capital declines, the percentage of total capex requiring royalty financing is also expected to fall — Under Royalty intends to mitigate this through early stage business development (land consolidation, project origination, ROFRs on future expansions, and direct technology investments).
Royalty Origination Pipeline
Under Royalty originates proprietary royalty opportunities by providing flexible early-stage growth capital to leading geothermal developers, creating long-term exposure to future project phases, expansions and platform growth.
- Establishes a royalty platform with a leading next-gen geothermal developer.
- 400 MW potential with deployment opportunity exceeding US$250 million.
- Diversified portfolio of commercial-stage developers with multiple royalty origination opportunities across several jurisdictions.
- Multi-GW potential, aggregate deployment potential exceeding US$1 billion.
- Strategic relationship with a global energy company pursuing scaled geothermal development(s).
- Multi-GW potential, deployment potential exceeding US$500 million.
- Leading global geothermal technology and project development company with associated technology partners.
- Multi-GW potential, deployment potential exceeding US$500 million.
- Early and targeted land leasing, licensing and acquisition to extend and protect the pipeline.
- Early to mid stage deployments setting up mid to long-term returns.
- Unique opportunity: next-generation geothermal technology company.
- Investment to support technology development and partner-led project origination.
Illustrative deployment schedule demonstrating the ability to scale a diversified royalty portfolio over time.
Built from the verified p.9 pipeline (annual Under Royalty capex and cumulative deployment).
Note: Current global geothermal capacity is estimated to be 15–16.3 GW (IEA).
Capital Raise & Deployment Strategy
Initial Capital Raise Supports Pipeline and Future Royalty Deployment
Under Royalty is seeking to raise ~US$200 million to support the next 36 month deployment of its geothermal royalty financing strategy, which includes direct royalty investments as well as opportunistic land acquisitions and technology investments supporting future royalty pipeline.
- Bullseye Deployment: Proceeds fund Under Royalty's first next-generation geothermal royalty investment, establishing a royalty platform on a 400 MW project.
- Operations / G&A: ~US$10 million to fund the next 2 years of G&A — recruit the core team, establish operations, and solidify and advance the pipeline.
- In-Hand Agreements: In advanced discussions with a number of geothermal counterparties; targeting US$100 million of deployment over the next 6–18 months, with potential to increase deployment by 1.5–3.0x.
- Float Capital: Supports earlier-stage discussions for capital deployment targeted in an 18–36 month timeframe.
- Market Access: Opportunistic capital deployment into technology, origination and partnerships, linked to improved terms or an increased royalty financing pipeline.
- Land JV: Targeted acquisition, leasing and licensing of attractive geothermal lands for future monetization via disposition or royalty vend-in.
- Operations: Capital to support growth and an additional (3rd) year of operations (professionals, legal, G&A).
Interested in learning more?
Request the Data RoomInvestment Thesis & Strategy
A Structural Investment Thesis Built on the Convergence of Royalty Finance and Next-generation Geothermal
Under Royalty is establishing the missing layer in the next-generation geothermal capital stack by introducing the proven royalty financing model to one of the fastest-growing infrastructure sectors in the world. This creates a unique opportunity to generate differentiated, risk-adjusted returns while building the royalty market for next-generation geothermal.
Investment Strategy & Portfolio Construction
A Disciplined Framework Designed to Maximize Risk-Adjusted Returns Through Selective Capital Deployment and Portfolio Diversification
Under Royalty deploys capital through a disciplined combination of royalty financing and selective strategic investments, creating a diversified portfolio of premium long-duration infrastructure assets positioned to benefit from decades of geothermal industry growth while maintaining attractive risk-adjusted return potential.
Target projects capable of supporting multiple phases of development and long-term production growth — we target at least 400 MW of capacity.
Partner with leading developers possessing proven technical capability, execution experience and strategic market relationships.
Diversify royalty exposure across applications, technologies, counterparties and jurisdictions.
Prioritize jurisdictions with strong regulatory support, stable legal frameworks and long-term energy policy alignment.
Target compelling risk-adjusted returns with disciplined downside protection — starting target portfolio IRR of 15%.
Use complementary equity, debt and hybrid investments to originate and expand future royalty opportunities unavailable in secondary markets.
Leadership Team
Extensive Expertise in Energy, Finance, Technology Development and Geothermal
Under Royalty combines deep geothermal expertise with decades of oil & gas, project finance, royalty, and commercial development experience. Our team's industry relationships, technical understanding, and disciplined investment approach enable us to identify high-quality opportunities and partner with developers at the earliest stages of value creation.
Paul Cairns
CEO
- Founder of Eavor Technologies Inc. ($1bn valuation: $600mm equity, €350mm FOAK project finance, €92mm EUIF grant).
- 20+ years of experience across energy and technology.
- Extensive understanding of the global geothermal market.
Amber Brown
CFO & CSO
- Previous President of Carbon Royalty Corp., a $100mm royalty company focused on decarbonization projects.
- Previous equity research analyst at National Bank.
- 15+ years of experience in energy finance and business development.
David Wilson
Director
- Current President & Chief Executive Officer at Kelt Exploration Ltd.
- 30+ years of experience in the oil & gas industry, involved in all aspects of exploration, development, and acquisitions of oil and gas properties.
Kent Gillings
Director
- Current Managing Director and Head of North American Natural Gas & Power Trading at Scotiabank.
- 20+ years of experience across power & energy markets, infrastructure, and technology-enabled platforms.
Dr. Malcolm Ross
Advisor
- Geothermal strategist, geoscientist, and “Geothermal Evangelist” who helps investors identify scalable subsurface energy opportunities across power, heating, cooling, and data center infrastructure.
- 30+ years of direct industry experience. New Energies Research and Technology Team at Shell.
To Be Announced
Advisor
- Prior experience in environmental impact investing for a global hyperscaler; deep relationships across industry.
- 15+ years of experience in consulting and investing across the environmental space.
To Be Announced
Advisor
- Extensive experience in fund development, management and capital deployment.
- 15+ years of experience in global deep tech, infrastructure, and geothermal development technologies.
+Appendix — For those newer to geothermal
What is Next-Gen Geothermal?
The Distinctive Energy Source Based on Energy Attributes, Economic Reliability and Government / Industry Support
Next-Gen Geothermal is a new class of geothermal energy that combines 2000 years of geothermal science with modern oil & gas drilling and fracking techniques to harness the Earth’s heat as a replenishable, reliable and flexible heat and/or power source.
| Attribute | Renewables | O&G | Conventional | Next-Gen |
|---|---|---|---|---|
| Energy Attributes | ||||
| Scalable | ✓ | ✓ | · | ✓ |
| Dispatchable | · | ✓ | ✓ | ✓ |
| Baseload | · | ✓ | ✓ | ✓ |
| Low Carbon | ✓ | · | ✓ | ✓ |
| Low Water | ✓ | · | · | ✓/✕ |
| No Waste | ✓ | · | ✓ | ✓ |
| Economic Reliability | ||||
| Versatile Application | · | ✓ | ✓ | ✓ |
| Domestic Production | ✓ | ✓/✕ | ✓ | ✓ |
| Revenue Stability | ✓/✕ | · | ✓ | ✓ |
| Fuel Price Stability | ✓ | · | ✓ | ✓ |
| Gov't / Industry Support | ||||
| Bi-Partisan Support | · | · | ✓ | ✓ |
| Tax Credits | ✓ | · | ✓ | ✓ |
| Proven Commercially | ✓ | ✓ | ✓ | ✓ |
| Transferability of Skills | · | ✓ | ✓ | ✓ |
Natural reservoir
Artificial fractured rock
Closed loop heat exchanger
Deep, very high temperature
Why Next-Gen Geothermal? Improving Economics and Global Scalability
Energy Market Share Growth Potential and Improving Economics are Delivering Elevated Valuations
Next-Generation Geothermal LCOE: the deck shows LCOE (US$/MWh) falling sharply from the 2025 baseline through the 2035 and 2050 low- and medium-cost cases, and next-gen geothermal comparing favourably against other low-emissions dispatchable technologies. v38 removed the numeric LCOE data labels — exact values will be wired in from the source model before this chart is animated.
Source(s): International Energy Agency (IEA) – The Future of Geothermal Energy. Carnegie Endowment for International Peace.