Mont Royal Resources — Interim / Quarterly Report 2021

Jul 26, 2021

ASX ANNOUNCEMENT ASX : MRZ | 27-07-2021

MONT ROYAL RESOURCES QUARTERLY REPORT 30 JUNE 2021

Mont Royal Resources Limited (ASX:MRZ) (“Mont Royal” or the “Company”) is pleased to provide an update on the Company’s activities for the quarter ending 30 June 2021 (“Quarter”, “Reporting Period”).

During the Quarter, the Company released its interpretation results of the heliborne magnetic survey and completed its property scale till survey program at the Wapatik Gold-Copper Property (the “Project”), located in James Bay area, Quebec, one of the most active mineral exploration region in Canada.

Highlights

• Interpretation results from high-resolution heliborne survey on Wapatik Gold-Copper Property

• High fidelity maps critical to successful till survey completion

• Property-Scale till survey completed with no delay or logistical Issues

• Awaiting assay results from laboratory In Val D’or, Quebec

CORPORATE DIRECTORY

Gary Lawler Non-Executive Chairman Peter Ruse Executive Director

Michael O’Keeffe

Non-Executive Direc

Executive Director

Mont Royal Executive Director, Peter Ruse, commented: “ The June 2021 Quarter was a busy period, with the Company taking advantage of the summer field season via the completion of the property-scale till survey at the Wapatik Project. We are strongly encouraged by the district scale interpretation of 60km of Greenstone connecting Azimut's 100% owned Elmer property to the Wapatik property, as Mont Royal earns into via the option agreement. We look forward to delivering the assay results that are currently in the lab following the completion of the till survey in June 2021.”

Interpretation results

As previously released, during the Reporting Period a very high-resolution magnetic survey was successfully completed across the entire 115sq/km in continuous tenure at the Project without incident. The data subsequently underwent detailed interpretation by the technical team at Azimut, with results from the interpretation were delivered during the Quarter.

The Company is confident that this maiden high-resolution magnetic survey and lithostructural Interpretation on Wapatik will contribute to a better geological understanding to highlight prospective areas for the ongoing fieldwork program.

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The study area is marked by Archean rocks that have undergone multiple phases of deformation. Shear zones define an important East-West corridor on Wapatik that apparently contains felsic and mafic assemblages. Potential orogenic gold mineralization may be associated with a transpression episode and the associated dextral shears.

The shear-bounded E-W corridor mentioned above is to be preferentially investigated as well as the edges of interpreted intrusions.

Note: Transpression is caused by oblique convergence of rock masses and is characterised by strikeslip deformation and vertical thickening in the crust, with transpression observed at regional scales along plate boundaries and more locally as restraining bends in strike-slip fault zones. Transpressional regimes are widespread in orogenic belts and give rise to complex strain patterns (1) This new higher fidelity lithostructural map will now serve to plan the upcoming follow-up field activities.

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Figure 1 – Wapatik interpreted structures on Magnetic Vertical Gradient

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Figure 2 – Watapik Interpreted structures on Satellite image

Property Scale Till Survey completed

During the Quarter, the Company was pleased to announce the till survey team mobilised to site and commenced the till survey at Wapatik located in the James Bay region of Quebec, Canada. The approach was to sample the till at roughly regular spacing, along lines perpendicular to the general glacial direction approximately 4-5km’s apart; the survey covered the entire property. The survey took approximately 1-2 weeks, and was completed without any major delays or logistical Issues. Samples from the till survey were dispatched to nearby laboratories in Val D’or, Quebec for analysis and interpretation.

A total of 155 till samples were taken, allowing adequate coverage of the Wapatik Property, with numerous outcrops observed during the work program. The rough geological mapping available shows felsic bands favorable to gold mineralisation, with these bands targeted by the planning of till crossings at their glacial downstream. The processing of samples will begin in the first week of August 2021 for the observation of gold grains and the analysis of fine fractions will be completed by September 2021.

Upon receipt of the assay results, a further focused prospecting phase of fieldwork with the technical team supplied by Azimut as the operator of the project will take place to follow-up on the most favourable sectors. Mont Royal remain excited to deploy Azimut’s team to carry out this program, which will be a key step in our maiden drill program design.

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Figure 3 – The updated Wapatik geology map with interpreted lineaments and structures

60km of continuous Greenstone belt

Late in the June 2021 Quarter, Azimut released to the market (29 June 2021) their new interpretation of continuous and favourable structures for gold mineralisation that have been identified on both Elmer and Wapatik properties. Covering approximately 60 kilometres (Elmer 35km, Wapatik 25km), the favourable geological strike of the greenstone belt hosting the Patwon gold discovery (Azimut 100% owned) has been supported by the combined fieldwork exploration program on two the whollyowned properties.

Next Exploration Steps

Numerous outcrops have been observed during the till sampling phase, however the Project remains largely underexplored despite a favourable context for shear-related gold mineralisation. The prospecting phase will be directed first along favourable structures located on strike with the Patwon gold discovery on the Elmer Property. The till results will be used to optimise the prospecting phase which is planned to start in September 2021, with this phase expected to take approximately 10 days. The high-resolution magnetic survey and the newly interpreted lithostructural map will also be used to determine and rank the target areas.

Financial position and outlook

The Company remains well funded with $2.47m in cash at the end of the Quarter, with Mont Royal continuing to maintain strict cost controls with no large general and administrative (G&A) expenses.

A summary of the expenditure incurred on exploration activities, payments to related parties and tenements held are set out in the annexure to the Appendix 5B. No development or production activities were undertaken during the Quarter.

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The aggregate amount of payments to related parties and their associates, as disclosed in item 6.1 of the Appendix 5B pertain to payments of executive and non-executive directors' fees.

A comparison of the use of funds as set out in the Prospectus and the actual use of funds is set out in the annexure to this announcement.

For further information please refer to the Appendix 5B.

Mont Royal continues to search for additional opportunities in the resources sector which demonstrate capacity to add long term shareholder value.

This announcement was approved for release by the Board.

ENDS.

For and on Behalf of the Board

Shaun Menezes | Company Secretary

Wapatik Gold-Copper Project

The Wapatik Gold Copper Property consists of 220 claims totalling 115sq/km in continuous tenure, and is located in the James Bay-Eeyou Istchee region in the lower Eastmain Greenstone belt, part of the La Grande Sub-province of the Archean Superior Province, which has been subject to significant exploration activity. The region is host to the Éléonore gold mine (Newmont Corporation NEM.US) and recent Patwon discovery/Elmer property (Azimut Exploration AZM.TSX) ("Azimut"). Azimut consolidated the tenure following the Patwon discovery located 13km west of Wapatik.

Competent Person’s Statement

The information in this report that relates to exploration results was released to the market on 24 May 2021, 9 June and 29 June 2021. The Company is not aware of any new information or data that materially affects the information included in the relevant announcements.

About Mont Royal Resources

Mont Royal Resources Limited (ASX:MRZ) is an Australian company incorporated for the purpose of pursuing various mining opportunities in the resources sector, with the aim of building shareholder value by acquiring, exploring, evaluating and exploiting mineral resource project opportunities. The Company has entered into a binding JV option agreement with Azimut Exploration Inc. (TSXV: AZM), to earn-in up to 70% of the Wapatik Gold-Copper Project, located in James Bay area, a tier 1 mining jurisdiction of Quebec, Canada.

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.

For further information regarding Mont Royal Resources Limited, please visit the ASX platform (ASX:MRZ) or the Company’s website www.montroyalres.com

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Annexure

A comparison of the proposed use of funds set out in the Company's prospectus dated 5 March 2019 against the actual use of funds to date is set out below:

Description	Prospectus disclosure	Prospectus disclosure	Actual Expenditure	Commentary
	Year 1	Year 2
Exploration – Edjudina Project	1,000,000	1,500,000	464,796	A.
Exploration – Yule River Project	25,000	475,000	-	B.
Exploration – Wapatik Gold- Copper Project	-	-	314,828	C.
Directors’ fees	200,000	200,000	420,570
General administration fees and workingcapital	235,000	235,000	595,014
Future acquisition costs	465,000	515,000	265,703	D.
Estimated expenses of the Public Offer	500,000	-	537,000
Total	2,425,000	2,925,000	2,597,911

Commentary:

Actual Expenditure represents the period from the Company's listing on the ASX in May 2019 to May 2021.

A. Actual expenditure on the Edjudina Project is lower than planned expenditure as the results from air core drilling program and subsequent desktop reviews were not sufficiently positive to warrant further expenditure.

B. As stated in the September 2019 Quarterly Activities Report, the Mont Royal board resolved to relinquish the option to acquire the Yule River Project from Centrepeak Resources Group.

C. As announced in September 2020, the Company entered into an Agreement with Azimut, to earnin up to 70% of the Wapatik Gold-Copper Project, located in James Bay area, a tier 1 mining jurisdiction of Quebec, Canada. As part of this Agreement, the Company has remitted funds to Azimut who are managing the exploration program.

D. The Company has not incurred significant expenditure in this area to date but has incurred funds on considering opportunities since the decision was taken not to continue exploration on Edjudina.