Mr. Darren Driscoll reports

ALARIS ROYALTY CORP. RELEASES FIRST QUARTER FINANCIAL RESULTS

Alaris Royalty Corp. has released its results for the three months ended March 31, 2012.

The Corporation's revenue from partner companies increased 23% to $6.93 million compared to $5.64 million in the prior year period. The increase was due to the addition of two new private company partners in the last half of 2011: Killick Aerospace Limited Partnership ("Killick") in July 2011 and Quetico, LLC ("Quetico") in December 2011. The Corporation also completed a follow on contribution into KMH Limited Partnership ("KMH") in October 2011.

For the three months ended March 31, 2012, the Corporation recorded earnings of $3.96 million and EBITDA of $5.64 million compared to earnings of $2.93 million and EBITDA of $4.51 million in the prior year. The 35% increase to earnings and the 25% increase in EBITDA in the current period is predominantly due to having a full quarter of revenues from Killick and Quetico as well as the increased distributions from KMH.

"Our first quarter was again as expected given the contractual and predictable nature of our revenues from our partners. As well, our recent increase of our credit facility from $30 million to $50 million gives us additional capacity as we continue to evaluate new opportunities in Canada and the United States" said Darren Driscoll, CFO, Alaris Royalty Corp.

Outlook

Alaris' agreements with its partner companies (its "Private Company Partners") provide for estimated revenues to Alaris of approximately $27.8 million for 2012. Revenues from our Private Company Partners for the three months ended June 30, 2012 are expected to be $6.9 million. The Corporation has $45.5 million remaining on its $50 million credit facility for use in future transactions. General and administrative expenses are currently estimated to be $3.2 million for 2012, inclusive of all public company costs. Cash requirements after earnings are expected to remain at minimal levels.

The Consolidated Statement of Financial Position, Statement of Comprehensive Income, and Statement of Cash Flows are attached to this news release. Alaris' financial statements and MD&A are available on SEDAR at www.sedar.com and on our website at www.alarisroyalty.com.

                                                       
Condensed consolidated statement of comprehensive income (unaudited)        
For the three months ended March 31                                         
                                                                            


                                                                            
                                                2012                   2011 

Revenues                                                                    
Royalties and distributions    $           6,931,784  $           5,635,319 
Interest and other                           106,534                      - 
                              ----------------------------------------------
Total Revenue                              7,038,317              5,635,319 
                              ----------------------------------------------
                                                                            
Salaries and benefits                        232,810                223,337 
Corporate and office                         307,157                277,140 
Legal and accounting fees                    185,327                113,049 
Non-cash stock-based                                                        
 compensation                                349,488                513,065 
Depreciation and amortization                 26,539                 47,171 
                              ----------------------------------------------
Subtotal                                   1,101,321              1,173,762 
                              ----------------------------------------------
Earnings from operations                   5,936,996              4,461,557 
Finance cost                                 116,178                419,400 
Unrealized foreign exchange                                                 
 loss                                        325,988                      - 
                              ----------------------------------------------
Earnings before taxes                      5,494,830              4,042,157 
Deferred income tax expense                1,400,958              1,116,653 
Current income tax expense                   137,232                      - 
                              ----------------------------------------------
Earnings                       $           3,956,640  $           2,925,504 
                              ----------------------------------------------
                                                                            
Other comprehensive income                                                  
Net change in fair value of                                                 
 Preferred LP units                                -              1,736,546 
Tax impact of change in fair                                                
 value                                             -               (217,068)
Foreign currency translation                                                
 differences                                (209,616)                     - 
                              ----------------------------------------------
Other comprehensive income for                                              
 the period, net of income tax              (209,616)             1,519,478 
                              ----------------------------------------------
Total comprehensive income for                                              
 the period                    $           3,747,024  $           4,444,982 
                              ----------------------------------------------
                                                                            
Earnings per share                                                          
Basic earnings per share       $                0.20  $                0.17 
                              ----------------------------------------------
Fully diluted earnings per                                                  
 share                         $                0.20  $                0.17 
                              ----------------------------------------------

We seek Safe Harbor.