CVW Sustainable Royalties Announces $50 Million Strategic Investment by Fairfax and Upsize of Previously Announced Private Placement Financing to a Maximum of $50 Million for $100 Million in Total Financing

Press Release

February 10, 2026

CALGARY, ALBERTA – CVW Sustainable Royalties Inc. (TSXV: CVW) (FSE: TMD) (“CVW Royalties” or the “Company“) is pleased to announce that Fairfax Financial Holdings Limited, through certain of its subsidiaries (“Fairfax“), will make a strategic investment for $50.0 million (“Fairfax Strategic Investment“) into the Company. In addition, and as a result of strong investor demand, the Company has increased the size of its previously announced brokered private placement from $25.0 million to $50.0 million (“Upsized Offering“).

This will provide the Company with $100.0 million in total gross proceeds to deploy in its royalty investment strategy and provides a strong endorsement of this strategy from Fairfax as well as other investors. The Company will continue to focus its efforts on originating and executing additional royalty transactions, by performing comprehensive due diligence on potential investment opportunities, and structuring royalty transactions in a manner which we believe will be accretive to shareholders. The Company has built meaningful relationships with key stakeholders including company management teams, sustainability-focused investors including venture capital and private equity firms, and investment banks which has led to a significant opportunity pipeline. As we advance several of these opportunities, the capital provided through the Fairfax Strategic Investment and the Upsized Offering will be instrumental to execute on further transactions. The Company remains committed to building a diversified royalty platform which delivers strong returns to shareholders through exposure to commodities and commodity-like products produced in a sustainable manner.

Strategic Investment by Fairfax

The strategic participation from Fairfax, provides critical capital at an inflection point for the Company and reflects confidence in the Company’s sustainability-focused royalty investment strategy, disciplined capital allocation approach, and growing pipeline of royalty opportunities. Fairfax has a global network of business partners which is expected to provide a meaningful advantage to the Company as it acquires royalties on a global scale. The need for sustainability-focused technologies has only strengthened, and the Company is confident in the value of its strategic partnership with Fairfax.

Darren Morcombe, Chairman of CVW Royalties, commented: “Fairfax is among the most respected long-term investors globally, and we believe their decision to invest alongside us is a strong validation of CVW Royalties’ strategy and leadership team. This investment materially strengthens the Company’s balance sheet and provides the flexibility needed to thoughtfully grow its royalty portfolio. I am excited about what we can build with their support as CVW Royalties enters its next phase of growth.”

In connection with Fairfax’s participation, the Company intends to issue a combination of common share units (the “Fairfax Voting Units“) and non-voting common share units (the “Fairfax Non-Voting Units“) to Fairfax, which is expected to be structured as follows:

Tranche 1 – 54,600,712 Fairfax Voting Units purchased by Fairfax at a price of $0.78 per Fairfax Voting Unit for gross proceeds of approximately $42,588,555. Each Fairfax Voting Unit shall consist of one common share of the Company (a “Common Share“) and one warrant exercisable to purchase a non-voting common share (a “Non-Voting Common Share“) at a price of $0.95 per Non-Voting Common Share for a period of two years from closing (the “Non-Voting Common Share Warrants“).
Tranche 2 – 9,501,852 Fairfax Non-Voting Units at a price of $0.78 per Fairfax Non-Voting Unit for gross proceeds of approximately $7,411,445. Each Fairfax Non-Voting Unit shall consist of one Non-Voting Common Share and one Non-Voting Common Share Warrant.

The Non-Voting Common Shares will be convertible into Common Shares by Fairfax, subject to a beneficial ownership restriction if such exercise would result in Fairfax and its affiliates owning greater than 19.9% of the Company’s Common Shares on a non-diluted basis. The Non-Voting Common Share Warrants are subject to an acceleration provision which provides that, at any time following the 6-month anniversary of the Upsized Closing Date (as defined below), and from time to time thereafter, if the VWAP of the Common Shares exceeds $1.20 for 30 consecutive trading days at any time, the Company may, within 20 days following such occurrence but without having been required to act upon the first or subsequent occurrence thereof, deliver a notice to the holders thereof accelerating the expiry date of the Non-Voting Common Share Warrants to a date that is 30 calendar days after the date of such notice.

Upsized Private Placement

Further to the press release dated February 4, 2026, in connection with the previously announced $25.0 million brokered private placement with Stifel Nicolaus Canada Inc., as lead agent and co-bookrunner (the “Brokered Offering“), and due to strong investor demand, the Company has decided to upsize the Brokered Offering to total gross proceeds of up to $50.0 million in aggregate through the issuance of up to 64,102,564 units (the “Brokered Units“) at $0.78 per Brokered Unit. Each Brokered Unit shall consist of one Common Share and one Common Share purchase warrant (each, a “Brokered Warrant“). Each Brokered Warrant shall be exercisable to purchase an additional Common Share at a price of $0.95 per Brokered Warrant for a period of two years from the Upsized Closing Date. At any time following the 6-month anniversary of the Upsized Closing Date, and from time to time thereafter, if the VWAP of the Common Shares exceeds $1.20 for 30 consecutive trading days at any time, the Company may, within 20 days following such occurrence but without having been required to act upon the first occurrence thereof, deliver a notice to the holders thereof accelerating the expiry date of the Brokered Warrants to a date that is 30 calendar days after the date of such notice.

Akshay Dubey, CEO of CVW Royalties, said: “We are incredibly encouraged by the strong investor demand we have seen as part of our capital raising efforts leading to an increase in our raise. The positive feedback on our strategy and current portfolio which includes our Creating Value from Waste™ technology, Northstar Clean Technologies and recently announced investment in Relocalize further underlines the attractiveness of these assets as well as the significant opportunity we see to create a leading royalty platform with a differentiated strategy focused on sustainability. By raising additional capital today, the Company now has significant capacity to execute on royalty transactions consistent with our goal to deliver attractive risk adjusted returns to our shareholders. Importantly, we believe this capital will allow us to provide funding certainty to our potential counterparties and allow us to pursue larger scale transactions which unlocks additional attractive opportunities.”

The Company intends to use the net proceeds from the Fairfax Strategic Investment and the Upsized Offering to fund future royalty transactions, diligence and closing expenses related thereto, and general corporate purposes.

Shareholder Approval and Regulatory Matters

The Company intends to call a special meeting of shareholders (the “Special Meeting”) to seek approval to amend its articles of incorporation to create the Non-Voting Common Shares. Further details regarding the proposed amendment and the Special Meeting will be provided in due course.

All securities issued pursuant to the Upsized Offering and the Fairfax Strategic Investment will be subject to a four-month and one-day statutory hold period from the respective closing dates in accordance with Canadian securities laws.

The Upsized Offering is still expected to close on or about February 26, 2026, or such other date as may be agreed to by the Company and the Agents (the “Upsized Closing Date“). The Fairfax Strategic Investment is expected to close shortly after the Special Meeting and on or about April 7, 2026. The Fairfax Strategic Investment and the Upsized Offering are subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange, and, in the case of the Fairfax Strategic Investment, both shareholder approval and closing of the Upsized Offering for minimum aggregate gross proceeds of $50 million. All amounts included herein are in Canadian dollars.

The securities being offered pursuant to the Upsized Offering have not been, nor will they be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Common Shares in any state in which such offer, solicitation or sale would be unlawful. “United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.

About CVW Sustainable Royalties

CVW Sustainable Royalties invests in sustainability-focused technologies and operations providing returns linked to commodities and commodity-like products. CVW Sustainable Royalties is building a portfolio of royalty-based cash flow streams by partnering with clean technology innovators in the commodity space. CVW Sustainable Royalties’ current portfolio includes its proprietary technology, Creating Value from Waste™ (“CVW™“), which is designed to recover bitumen, solvents, critical minerals, and water from oil sands froth treatment tailings with significant environmental benefits, an interest in two future Northstar Clean Technologies facilities which reprocess waste shingles to produce liquid asphalt, aggregate, fiber and limestone, as well as a royalty interest in Relocalize micro-factories which produce packaged ice and cold packs in a more sustainable manner.

CVW Sustainable Royalties trades on the TSX Venture Exchange under the symbol “CVW”, on the OTCQX under “CVWFF”, and on the Frankfurt Stock Exchange under the symbol “TMD”.

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