Mont Royal Resources — Interim / Quarterly Report 2021

Apr 28, 2021

ASX ANNOUNCEMENT ASX : MRZ | 29-04-2021

MONT ROYAL RESOURCES QUARTERLY REPORT 31 MARCH 2021

Mont Royal Resources Limited ( ASX:MRZ ) (“ Mont Royal ”, the “ Company ”) is pleased to provide an update on the Company’s activities for the quarter ending 31 March 2021 (“Quarter”, “Reporting Period”).

During the Quarter, Mont Royal announced that the Company completed its first winter fieldwork program at the Wapatik Gold-Copper Property (“Project”), located in the James Bay area of Quebec, one of the most active mineral exploration region in Canada.

Highlights

• Novatem Inc. completed its high-resolution heliborne survey on Wapatik Gold-Copper Property.

• The survey provided high-quality magnetic data to complete a structural analysis.

• Mont Royal maintains a strong cash position of $2.73m as 31 March 2021.

CORPORATE DIRECTORY

Gary Lawler Non-Executive Chairman

Peter Ruse Executive Director

Michael O’Keeffe

Non-Executive Direc

Executive Director

Shaun Menezes

Mont Royal Executive Director, Peter Ruse, commented: “ The March Quarter was an important period with the completion of the winter exploration program at Wapatik, and Mont Royal is very pleased to have completed the winter fieldwork program via the high-resolution heliborne survey and commence the detailed interpretation program. We look forward to delivering the data shortly to discuss the valuable interpretation information learnt from the field program. Mont Royal is pleased to report that field work has been advancing on the Wapatik project notwithstanding the COVID-19 pandemic situation. The mining sector in Quebec has been an early leader in establishing strong measures to allow the continuation of work for mining and mineral exploration in the province.”

As announced 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 results from the survey exhibit an outstanding resolution of the magnetic anomalies on the property. The data is undergoing detailed interpretation by the technical team at Azimut and final results from the interpretation are expected in the very near term. 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.

The exploration program in 2021 consists of:

• A very high-resolution heliborne magnetic survey totalling 5,116 line-kilometre on 25-metre spaced lines, covering the entire Project, which is now complete;

• A structural study supported by the results of the magnetic survey and remote sensing data, which is nearly finished;

• Systematic till sampling survey to start as soon as field conditions allow; and

• Focused prospecting to assess target zones during the Canadian summer.

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Maiden Lithostructural Interpretation Progress

The lithostructural interpretation based on the high-resolution magnetic survey is well-advanced, with important lineaments identified to provide a better understanding of the structural character of the property. Shears are well defined throughout Wapatik, running from EW to ESE trending east. In the east of the Project, an important NW-SE corridor borders volcano sedimentary assemblage. Deformation is visible and may be attributed to ascent and horizontal displacement of large nearby plutonic masses.

A highly magnetic intrusive feature is observed along a NE-SW structural corridor where a change of direction of the fabric occurs. This corridor runs parallel to an important regional diabase dyke to the west, that may be injected into a pre-existing crustal structure. Interpretation work continues to complete a new higher-fidelity geology map that will serve the subsequent prioritisation of areas to prospect during the upcoming field program.

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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

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.

Financial position and outlook

The Company remains very well-funded with $2.73m in cash at the end of the Quarter, with Mont Royal maintaining 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.

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.

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Mont Royal continues to search for additional opportunities in the resources sector which could demonstrate capacity to add long term shareholder value. The directors believe that the Company’s strong cash reserves will facilitate Mont Royal to fund new opportunities in the resources sector.

ENDS.

For and on Behalf of the Board

Shaun Menezes | Company Secretary

Competent Person’s Statement

The information in this report that relates to exploration results is based on information compiled by Mr Toby Wellman, a Competent Person who is a Member of the Australian Institute of Mining and Metallurgy (“AusIMM”). Mr Wellman is a consultant to the Company. Mr Wellman has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a competent person as defined in the JORC Code 2012. Mr Wellman consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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	464,356	A.
Exploration – Yule River Project	25,000	475,000	-	B.
Exploration – Wapatik Gold-Copper Project	-	-	314,828	C.
Directors’ fees	200,000	200,000	403,428
General administration fees and workingcapital	235,000	235,000	557,387
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	2,542,702

Commentary:

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.