SCR Strathcona Resources Ltd

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES NEWS AGENCIES

Alaris Royalty Corp. ("Alaris" or the "Corporation") (TSX:AD) is pleased to
announce that it has entered into a new partnership agreement (the "Partnership
Agreement") with SCR Mines Technology Inc. ("SCR") effective May 23, 2013,
forming SCR Mining and Tunneling L.P. (the "Partnership"). The Corporation is
also pleased to announce it has received approval from its Board of Directors
(the "Board") to increase the monthly dividend by $0.01 to $0.115 from $0.105
(the "Dividend Increase"). On an annualized basis, the dividend will increase by
$0.12 to $1.38 per share from $1.26, representing a 9.5% increase. This is
Alaris' sixth consecutive dividend increase.


New Partner 

Pursuant to the Partnership Agreement, Alaris has contributed $40,000,000 to SCR
(the "SCR Contribution") in exchange for a pre-tax annual preferred distribution
of $6,400,000 (the "SCR Distribution") for the first full year after the SCR
Contribution, which represents an expected initial pre-tax return of 16%.
Commencing on January 1, 2016, the Distribution will be adjusted annually based
on the percentage change in gross revenue over the prior 24 month period, with a
collar of 6% governing the maximum amount the SCR Distribution can change (up or
down) in a given year. The SCR Contribution was funded with $31,000,000 of funds
drawn on the Corporation's previously undrawn $50,000,000 senior credit facility
(the "Facility") and $9,000,000 of cash on hand.  


"Alaris' partnership with SCR is a very important development for our company.
Aside from adding our 11th partner and the associated dividend increase, SCR
represents a strategic diversification in our revenue stream. Even though SCR
shares the important criteria of i) a long track record of steady free cashflow,
ii) low debt and capex levels, iii) an excellent and committed management team
and iv) long term growth prospects, it is very different than our other partners
in the economic drivers that impact SCR's business. We believe that receiving
revenues from companies with different economic sensitivities reduces the
overall risk of Alaris' revenue stream while continuing to focus on our strategy
of identifying preferred, collared distributions which represent a low
percentage of a partner's cash flow. We are very proud to be partnering with
Rick and Claude Seguin and the rest of the SCR team and look forward to the
continued growth in their business." said Steve King, President and CEO, Alaris.



"The Partnership will provide a significant opportunity for SCR to work with the
team at Alaris to expand its footprint across the many development projects in
Canada that are seeking a strong and experienced contracting company to deliver
on-time and on-budget," said Rick and Claude Seguin, the Co-Owners of SCR. "SCR
is looking forward to working with Alaris and developing a strong and beneficial
relationship, with not just with the Alaris team, but also Alaris' other partner
companies."


Dividend Increase

The SCR Distribution is expected to result in an increase to Alaris' net cash
from operating activities of approximately $0.18 per share (on an annualized
basis based on the currently issued and outstanding shares), of which, the
Corporation will be passing on $0.12 per share (on an annualized basis based on
the currently issued and outstanding shares) by way of the Dividend Increase.
The first dividend for which this Dividend Increase will apply is the dividend
expected to be paid on July 15, 2013 to shareholders of record on June 28, 2013.



At the new dividend level of $0.115 per share, management estimates Alaris'
current payout ratio to be approximately 84% versus 87% prior to the SCR
Contribution.  


An updated corporate presentation will be posted to Alaris' website at
www.alarisroyalty.com. 


About SCR 

SCR has operated in the Northern Ontario region for over 20 years and offers a
comprehensive suite of services, on a contract basis, to customers ranging from
large multi-national producers to newer development companies in the metals and
mining sector. The Company has the reputation, experience, technical strength
and infrastructure to undertake large and small scale turn-key projects in
construction, mining, electrical and mechanical services. SCR provides services
through the entire life cycle of a mine, from mine development through operation
to rehabilitation; including site preparation (clearing, drilling and blasting,
etc.), mining services (including shaft sinking, lateral and vertical
developments, and production mining), construction of mine infrastructure
(electrical distribution systems, switch rooms, transportation infrastructure,
fuel bays, ventilation systems, refuge systems etc.), and the provision of
ongoing and continuous maintenance support. SCR employs approximately 250
dedicated workers. More information about the Company can be found at
www.scrmines.com 


About Alaris

The Corporation provides alternative financing to a diversified group of private
businesses ("Private Company Partners") in exchange for royalties or
distributions from the Private Company Partners, with the principal objective of
generating stable and predictable cash flows for dividend payments to its
shareholders. Royalties or distributions to Alaris from the Private Company
Partners are structured as a percentage of a "top line" financial performance
measure such as gross margin, same clinic sales, gross revenues and same-store
sales and rank in priority to the owners' common equity position.


Non IFRS Measures

Payout Ratio: The term "payout ratio" is a financial measure used in this news
release that is not a standard measure under International Financial Reporting
Standards. The Corporation's method of calculating payout ratio may differ from
the methods used by other issuers. Therefore, the Corporation's payout ratio may
not be comparable to similar measures presented by other issuers. Payout ratio
means Alaris' annualized dividend payable per share (after giving effect to the
Dividend Increase) over the next twelve months divided by its expected net cash
from operating activities over the next 12 months. The payout ratio should only
be used in conjunction with the Corporation's annual audited and quarterly
reviewed financial statements, which are available on SEDAR at www.sedar.com.


Forward-Looking Statements

This news release contains forward-looking statements as defined under
applicable securities laws. Statements other than statements of historical fact
contained in this news release may be forward-looking statements under
applicable securities legislation, including, without limitation, management's
expectations, intentions and beliefs concerning: the return to Alaris on the SCR
Contribution, the SCR Distribution; the anticipated increase in net cash from
operating activities; the estimated payout ratio; the Dividend Increase and the
timing thereof; and the indebtedness under the Facility. Many of these
statements can be identified by looking for words such as "believe", "expects",
"will", "intends", "projects", "anticipates", "estimates", "continues" or
similar words or the negative thereof. To the extent any forward-looking
statements herein constitute a financial outlook, they were approved by
management as of the date hereof and have been included to provide an
understanding with respect to Alaris' financial performance and are subject to
the same risks and assumptions disclosed herein. There can be no assurance that
the plans, intentions or expectations upon which these forward looking
statements are based will occur. 


Statements containing forward-looking information by their nature involve
numerous assumptions and significant known and unknown facts and uncertainties
of both a general and a specific nature. Key assumptions include, but are not
limited to assumptions that: the Private Company Partners will continue to grow
and may require additional capital from Alaris in the future; the Canadian and
U.S. economies will grow moderately over the next 12 to 24 months; interest
rates will not rise in a material nature over the next 12 to 24 months; more
private companies will require access to alternative sources of capital; and the
Corporation will obtain required regulatory approvals on a timely basis. In
determining the Corporation's expectations for economic growth, management
primarily considers historical economic data provided by the Canadian and U.S.
governments and their agencies. 


The forward-looking statements contained herein are subject to numerous known
and unknown risks that may cause actual results to vary from those set forth in
the forward-looking statements, including, but not limited to risks associated
with: general economic conditions and changes in the financial markets; risks
associated with the Private Company Partners and their respective businesses; a
change in the ability of the Private Company Partners to continue to pay Alaris'
preferred distributions; failure to obtain required regulatory approvals on a
timely basis or at all; and changes in legislation on government regulations and
the interpretations thereof. In addition, the information set forth under the
heading "Risk Factors" in the Corporation's Annual Information Form dated March
13, 2013 (a complete copy of which can be found on SEDAR at www.sedar.com)
identifies additional factors that could affect the operating results and
performance of the Corporation and may cause the actual results of the
Corporation to differ materially from those anticipated in forward-looking
statements.


As forward-looking statements are subject to risks, uncertainties and
assumptions and should not be read as guarantees or assurances of future
performance. Accordingly, readers are cautioned not to place undue reliance on
any forward-looking information contained in this news release as a number of
factors could cause actual future results, conditions, actions or events to
differ materially from the targets, expectations, estimates or intentions
expressed in the forward-looking statements. Statements containing
forward-looking information reflect management's current beliefs and assumptions
based on information in its possession on the date of this news release.
Although management believes that the assumptions reflected in the
forward-looking statements contained herein are reasonable, there can be no
assurance that such expectations will prove to be correct. 


The forward-looking statements contained herein are expressly qualified in their
entirety by this cautionary statement. The forward-looking statements included
in this news release are made as of the date of this news release and Alaris
does not undertake or assume any obligation to update or revise such statements
to reflect new events or circumstances except as expressly required by
applicable securities legislation.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Alaris Royalty Corp.
Curtis Krawetz
Manager of Investor Relations, Analyst
(403) 221-7305
www.alarisroyalty.com

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