DIVERSIFIED ROYALTY CORP.  ConsolidatedStatements of Changes in Equity  (Expressed in Canadian dollars) Years ended December 31, 2014and 2013  The accompanying notes are an integral part of these  consolidated financial statements. Share  Contributed  Retained earnings  Total  2013  capital  surplus  (accumulated deficit)  equity  Balance, January 1,2013  $  96,969,879  $  8,414,394  $  (34,424,782)  $  70,959,491  Comprehensive income (loss) for theyear  -  -  (3,586,462)  (3,586,462)  Share-based compensation (note 12)  -  413,236  -  413,236  Share options exercised 185,781  (163,381)  -  22,400  Balance, December 31, 2013  $   97,155,660  $  8,664,249  $  (38,011,244)  $  67,808,665  Share  Contributed  Retained earnings  Total  2014  capital  surplus  (accumulated deficit)  equity  Balance, January 1, 2014  $  97,155,660  $  8,664,249  $  (38,011,244)  $  67,808,665  Reduction in stated capital (note 1 1)  (47,155,660)  -  47,155,660  -  Comprehensive income for theyear  -  -  7,422,238  7,422,238  Dividends paid for theyear  -  -  (2,152,685)  (2,152,685)  Share based compensation, share options (note 12)  -  219,614  -  219,614  Equity issued in privateplacement  and on acquisition ofFranworks  Rights (note 11)  29,382,030  -  -  29,382,030  Equity issued, bought deal, net of costs  and taxes(note 11)  32,937,932  -  -  32,937,932  Share options exercised 2,693,500  (674,200)  -  2,019,300  Balance, December 31, 2014  $115,013,462  $  8,209,663  $  14,413,969  $  137,637,094  3 