Diversified Royalty Corp. Announces Filing of Final Prospectus and Update on Litigation Involving John Bennett

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2014) -

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Filing of Final Prospectus

Diversified Royalty Corp. (TSX:DIV) (the "Corporation" or "DIV") is pleased to announce that it has filed and obtained a receipt for a final short form prospectus (the "Prospectus") in respect of its previously announced bought deal public offering of common shares of the Corporation. The Prospectus was filed in each of the Provinces of Canada, except Québec. A copy of the Prospectus is available on SEDAR at www.sedar.com.

As previously announced, the Corporation has entered into an agreement with a syndicate of investment dealers co-led by Cormark Securities Inc. and GMP Securities L.P. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase an aggregate of 12,500,000 common shares at a price of $2.40 per share for gross proceeds of $30,000,000 (the "Offering"). In addition, the Corporation has granted the Underwriters an option ("Over-Allotment Option") to purchase up to an additional 1,875,000 shares from the treasury at a price of $2.40 per share exercisable at any time up to 30 days following closing of the Offering, for market stabilization purposes and to cover over-allotments, if any. The Toronto Stock Exchange ("TSX") has conditionally approved the listing of up to an additional 14,375,000 common shares of the Corporation to be issued pursuant to the Offering and Over-Allotment Option. Listing is subject to the Corporation fulfilling all the requirements of the TSX on or before January 16, 2015. The closing of the Offering is expected to occur on or about November 12, 2014 and is subject to regulatory approval including that of the TSX.

Update on Litigation involving John Bennett

On October 30, 2014, the Supreme Court of Canada dismissed Mr. Bennett's application for leave to appeal an order of the British Columbia Court of Appeal ordering his extradition to the United States to stand trial for conspiracy to defraud and major fraud against the United States. The Corporation expects Mr. Bennett, currently under detention in Vancouver, to be transported in the very near future to Newark, New Jersey where he is to be tried before a jury in Federal District Court.