LOYAL METALS LTD — Capital/Financing Update 2021

Jul 5, 2021

ASX RELEASE

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6 July 2021

Monger Gold Lists on the ASX with an Enterprise Value of $600K (before costs)

Highlights:

• Monger Gold will commence trading on the ASX at 12PM AEST under code MMG

• Follows highly successful $5m IPO which received approximately $10m in demand

• A total of 28,000,001 shares on issue with all investors investing at the same valuation of 20¢ per share (market capitalisation of $5.6M)

• The Company’s flagship Mt Monger North project sits in the prolific goldfields of WA, (50k SE of Kalgoorlie) with the immediate region producing in excess of 1.67m oz of gold

• Project is located nearby and adjacent to Silver Lake Resources’ (ASX:SLR) Daisy Milano complex

• Exploration work has already commenced at Mt Monger North which contains encouraging historical drill intercepts, including (refer prospectus dated 16/4/21):

  • 5m @ 7.17 g/t Au from 9m

  • 2m @ 7.93 g/t Au from 8m

  • 1m @ 20.7 g/t Au from 54m

  • 3m @ 17 g/t Au from 97m and ends in mineralisation

• Following data review and geological mapping, drilling is expected to commence at Monger North in Q3 2021

• Mr Mark Hill appointed as full time exploration manager

Monger Gold Limited (the Company ) is pleased to announce that it will formally list on the ASX at 12PM AEST on Tuesday 6 July 2021.

Although the Company received approximately $10M of interest during the offer period, the Company decided to only accept the minimum amount of $5M in order to maintain a tight capital structure, thereby providing shareholders with maximum leverage.

There are only 28,000,001 shares on issue in total, and all have been issued for 20¢ per share (aside from 3,000,001 escrowed shares issued to Torian Resources Ltd). There were no pre-IPO shares issued, nor were there any free shares issued to management or brokers. All shareholders have invested at the same valuation.

Commenting on the successful listing, Monger Gold Non-executive chairman Mr Peretz Schapiro said: “ Following months of hard work from many dedicated individuals, we are excited to finally list Monger Gold on the ASX.

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Office : 204-206 Balaclava P: (08) 6245 2490 Directors: Exploration Manager: Road, Caulfield North VIC E: info@mongergold.com.au Peretz Schapiro Mark Hill 3161 W: www.mongergold.com.au Andrew Graham Company Secretary: Romy Hersham Matthew Foy

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Our tight capital structure is one of our biggest advantages moving forward, and it is something that we will endeavour to preserve as much as possible in the months and years ahead. Ensuring that we maintain a relatively low level of shares on issue means that our share price can appreciate significantly should the Company experience any future positive developments.

We also welcome our new full time Exploration Manager, Mr Mark Hill to our team. Although Mark has only been with us for a short period of time, we have been tremendously impressed by his knowledge and experience and are confident that he is the right person to lead our company through this exciting phase of exploration as we seek to discover economically viable gold deposits.

Thank you for placing your trust in us and providing us with the opportunity to create value for you and grow your wealth. We hope that you continue to support us and that you are able to assist us in spreading the word.

We look forward to an exciting and hopefully bright future together.”

Background on Monger Gold and its flagship project

Monger Gold’s flagship Mt Monger North project sits approximately 50km southeast of Kalgoorlie in WA’s highly prolific goldfields. It is located nearby and adjacent to Silver Lake Resources’ (ASX:SLR) tenure, which hosts their flagship Daisy Milano complex. Total gold production in the region exceeds 1.67Moz.

The Company’s primary target at Mt Monger North sits along strike from Black Cat Syndicate’s (ASX:BC8) and formerly Silver Lake Resources’ (ASX:SLR) Wombola Dam open pit, which has produced 27,000 oz of gold. This prospect also has some highly encouraging historical gold intercepts, including:

• 5m @ 7.17 g/t Au from 9m

• 2m @ 7.93 g/t Au from 8m

• 1m @ 20.7 g/t Au from 54m

• 3m @ 17 g/t Au from 97m and ends in mineralisation

In order to avoid costly grass-roots exploration, the Company has been working on examining these historical results and building geological models around them. This period of analysis will ensure that all available data and resources are used to create the best exploration targets for an upcoming drilling campaign, giving the Company the greatest bang for its exploration buck, and increasing its chances of success.

Appointment of full time Exploration Manager

Monger Gold is pleased to announce that it secured the services of Mr Mark Hill, who has been engaged as its full time Exploration Manager. Mark has over 30 years of experience in mineral exploration and has spent many years working in the Kalgoorlie goldfields, specialising in WA Archaean gold geology. Further information on Mark's background and personal achievement can be found at http://mongergold.com.au/management/

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This announcement has been authorised for release by the Board of Monger Gold.

Peretz Schapiro, Non-Executive Chairman

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information either compiled or reviewed by Mr Andrew Graham who is a Director of Monger Gold Limited. Mr Graham is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Graham consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

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