Mont Royal Resources — Capital/Financing Update 2019

Jul 9, 2019

ASX ANNOUNCEMENT ASX : MRZ | 10-07-2019

MAIDEN DRILL PROGRAM COMMENCING AT THE

EDJUDINA PROJECT, WA

Highlights

• Final approvals obtained from Department of Mines, Industry Regulation and Safety (DMIRS)

• Drill contractors engaged; program due to start late July

• Highest priority geophysical targets to be tested by an initial 102hole air core program

Following completion of the sub-audio magnetics (SAM) survey in June, and the identification of several high-priority targets, Mont Royal Resources Limited (“ Mont Royal ” or the “ Company ”)( ASX:MRZ ) is pleased to announce the Company’s maiden drill program is due to be begin in the last week of July.

Having received government approval from DMIRS, approximately 6,000m of air core drilling has been designed to test a series of structural targets that have the potential to host lode-style gold mineralisation. The MRZ board has recently approved this drill program, and Kalgoorlie drill contractor Raglan Drilling has been engaged to complete the work program.

Non-Executive Chairman

Non-Executive Director

Mont Royal Executive Director Peter Ruse said “ the recent strength of the AUD$2,000/oz gold price makes this an exciting time for the Company to commence its maiden drill program at Edjudina. Mont Royal is set to test multiple robust drill targets in this initial 6,000 metre air core program, that to date, has had very limited modern exploration.”

Drilling

The maiden AC drill program is proposed to begin in the last week of July, with initial assay results expected to be returned before the end of August. Drilling has been designed to test areas of structural complexity, with specific attention given to the regionally significant Pinjin Fault Corridor. Drilling will also be designed to follow-up historic gold intersections of 1m@1.45g/t Au from 58m (ROPW275), 1m@0.25g/t Au from 43m (ROPW245) and 8m@0.11g/t Au from 26m (ROPW183).

The southern half of tenement E39/1992 has been largely overlooked by previous explorers due to a perceived deepening of transported overburden. As a result, the area has never been subject to any modern exploration, inclusive of drilling.

Interpretation of the SAM survey has confirmed the continuation of the Pinjin Fault Corridor within this area of no drill coverage, with several targets identified and proposed to be tested. The Pinjin Fault Corridor is the interpreted host structure at Deep South and Safari Bore Deposits, located approximately 17km to the north of the 100% owned Edjudina Project.

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Figure 1: Interpretive geology with targets highlighted in red (EQMMR anomaly) and pink (TFEM anomaly).

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Figure 2: Results of the Sub-Audio Magnetics (SAM) survey shown above. EQMMR displayed with identified targets highlighted in red and pink (TFEM anomaly).

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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 3: Location of the Edjudina Project

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Table 1: Historic gold intersections from the Edjudina Project

Hole_ID	Northing	Easting	Hole Depth	mFrom	mTo	Intersection
ROPW183	6709458	460888	36	26	34	8m@0.11g/t Au
ROPW245	6709758	460838	44	43	44	1m@0.25g/t Au
ROPW275	6710157	460638	63	56	62	6m@0.47g/tAu
“	“	“	including	58	59	1m@1.45g/t Au

N.B. Co-ordinate system of MGA94 Zone 51

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. 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