Mont Royal Resources — Capital/Financing Update 2019

Aug 22, 2019

ASX ANNOUNCEMENT

ASX : MRZ | 23-08-2019

MONT ROYAL RESOURCES

Maiden Drill Program Completed and Yule River Project Update

Highlights

• 74 aircore holes completed at the Edjudina Project, WA

• Drilling intersects strong shearing and stringer quartz veining coincident with the location of the Pinjin Fault

• Yule River project update

Mont Royal Resources Limited (“ Mont Royal ” or the “ Company ”) ( ASX:MRZ ) is pleased to announce the successful completion of the Company’s maiden drill program at the Edjudina Gold Project in Western Australia.

Mont Royal Resources Limited’s Executive Director Peter Ruse commented:

“All high-priority targets identified from the sub-audio magnetics survey have been tested, with the highly prospective Pinjin Fault being the focus of the drilling to date. The Mont Royal Board looks forward to receiving the first-pass assay results and updating the market accordingly.”

EDJUDINA PROJECT

Aircore Drilling Program – Phase 1

Following the completion of the geophysical survey in July this year, 6 high-priority targets were identified for further investigation, to be tested by a first-pass aircore (“ AC ”) program. Ranking of these targets was based on proximity to the Pinjin Fault Corridor, intersection of interpreted structures with geological contacts, and zones of broad de-magnetisation within the host lithology.

Executive Director

Michael O’Keeffe

A total of 74 AC holes for 4,168m was completed with intersected geology consisting of felsic volcaniclastics (± chlorite ± sericite ± pyrite), chlorite schist, shale (± pyrite) and ultramafic (± talc ± chlorite). All lithologies had associated quartz veining throughout, however a greater intensity of veining was observed proximal to the interpreted position of the Pinjin Fault.

Completed metres was less than the planned metreage due to difficult ground conditions effecting penetration rates. The poor daily metreage rates were largely a result of cemented ferruginous layers and indurated gravel horizons within the transported overburden. The resistant layers, often separated by water laden clays resulted in the drilling method alternating between AC hammer and AC blade resulting in both lost time and increased costs per metre.

All composite samples have been received at the laboratory in Perth with initial results to be returned in the coming weeks.

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Figure 1: AC Drilling at the Edjudina Gold Project, WA

Aircore Drilling Program – Phase 2

Following the return of all Phase 1 assay results, a complete review of both assay and geological data will be completed to refine the local and regional geological and structural models. Multi-element geochemistry will also be used to better understand the alteration and fluid pathway systems and how they interact with geological and structural complexities. Results will be used to plan Phase 2 drilling.

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Figure 2: Aerial view of drilling operations

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Figure 3: Location of completed drillholes

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Edjudina Geology

The geology of the Edjudina Project consists of supracrustal sequences, comprising metamorphosed sedimentary and volcanic rocks in greenstone belts of lower greenschist to mid-upper amphibolite facies adjacent to regional granitoid and migmatitic gneisses. The area is almost entirely covered by transported material consisting of colluvium, subordinate laterite, alluvium, dunes and playas lake clays. The greenstone and granitoids are dominated by north–north westerly trending folds, and parallel fault zones that commonly mark apparent truncations of the lithostatigraphy.

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Figure 4: Location of the Edjudina Project

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Yule River Project

After conducting thorough due diligence on the Yule River project in Western Australia, the Mont Royal board has decided to relinquish the option to acquire the project from Centrepeak Resources Group (CRG). Mont Royal maintains an excellent working relationship with CRG via the ongoing exploration program of the 100% owned Edjudina Gold Project in Western Australia.

The Company will reallocate funds that were going to be used for the Yule River project as set out in its Prospectus dated 5 March 2019 for working capital and potential future acquisition costs (including costs required for the identification of new projects and acquisitions).

ENDS.

For and on Behalf of the Board

Shaun Menezes | Company Secretary

Competent Person’s Statement

The information in this announcement which relates to exploration results for the Edjudina Gold Project was first released by the Company to ASX in its prospectus dated 5 March 2019, released on 3 May 2019. Further exploration results relating to a geophysical survey at Edjudina were announced on 30 May 2019. The Company confirms that it is not aware of any new information or data that materially affects the information included in the prospectus.

About Mont Royal Resources

Mont Royal Resources Limited is an Australian company incorporated for the purpose of pursuing various mining opportunities in the resources sector designed to add shareholder value by acquiring, exploring, evaluating and exploiting mineral resource project opportunities. Since incorporation, the Company has acquired a 100% interest in four exploration licences in Western Australia comprising the Edjudina Project which is considered to be prospective for Archaean lode style gold deposits. The tenements comprising the Edjudina Project are held in the name of the Company's wholly owned subsidiary, Mont Royal Exploration Australia Pty Ltd. The Company also has an exclusive option to acquire an additional exploration licence comprising the Yule River Project which is prospective for Archaean mesothermal lode style gold deposits. For further information regarding Mont Royal Resources Limited please visit the ASX platform ( ASX:MRZ ) or the Company’s website www.montroyalres.com