Portola Royalty Corporation (TSX-V: PZ) offers quasi-equity capital that can provide an excellent solution for capital needs beyond secured lending.

2. ForwardLooking
Statements
This presentation contains forward-
looking statements, within the
meaning of applicable securities
legislation, concerning Portola
Royalty’s business and affairs.
These statements are identifiable by
their use of verbs such as “expect”, as
well as by the use of future or
conditional tenses. These forwardlooking statements are based on
current expectations, and are
naturally subject to uncertainty and
changes in circumstances that may
cause actual results to differ materially.
Readers are cautioned not to place
undue reliance on such forwardlooking statements. Portola Royalty
Corporation assumes no obligation to
revise or update these forward-looking
statements to reflect the occurrence
of unanticipated future events, except
as may be required under applicable
securities laws.

3. 1 Royalty capital for
private companies with
$2+ million EBITDA
2 $10 to $30 million
transaction size
3 No amortization
no term

4. Royalty
Capital for
Private
Companies
~15%
Pre-tax cost of capital
3

5. Debt
Royalty
Capital
Creates
Value
Debt
Debt
Sub Debt
Royalty
Capital
Preferred
Equity
Equity
Equity
Equity
1
2
3

6. Royalty
Capital is
Designed
for
Flexibility

Royalty payment is adjusted
up or down






No principal payments
No term
No kickers
Tax efficient
3
No control requirements
Owners keep 100% equity

7. Why Use
Royalty
Capital?



Avoid issuing new debt
Avoid selling equity
Fund a shadow sale of
your company
3

8. 
Fund a
Shadow
Sale of Your
Company
True sale: $4mm EBITDA
business attracts a 6x
multiple - $24mm

Shadow sale: $24mm of
royalty capital costs
$3.6mm (15%) per year


Business EBT $400K
Owner keeps 100% of
3
equity

9. 
We Are
Seeking
Royalty
Investments
$10 to $30mm transaction
size

History of at least $2mm in
EBITDA


Reasonable debt level

Committed, experienced
management in place
Good long term industry
fundamentals
3

10. Attractive
royalty
capital for
private
companies
No
amortization
no term
$10 to $30
million
transaction
size