March 2026 Quarterly Activities Report
Level 8, 2 Bligh Street
Sydney NSW 2000
Mont Royal Resources Ltd
ACN: 625 237 658
www.montroyalres.com
ASX ANNOUNCEMENT
29 April 2026
March 2026 Quarterly Activities Report
UPDATED PEA FOR THE ASHRAM PROJECT ON TRACK FOR MAY RELEASE;
GEOLOGICAL REVIEW CONFIRMS STRONG POTENTIAL FOR RESOURCE
GROWTH; NON-BINDING MOU SIGNED WITH SAGUENAY PORT
HIGHLIGHTS
• Updated Preliminary Economic Assessment (PEA) for the Ashram Project nearing
completion, with expected release to market late May.
• Updated PEA incorporates revised assumptions for site access, logistics, process
throughput and location of the downstream hydrometallurgical processing facility,
which are expected to reduce capital and operating costs and reduce project risk.
• Internal geological review has identified strong potential for the BD-Zone to contribute
to growth of the overall Ashram Mineral Resource as a discrete sub-domain:
o The BD-Zone shows relatively high distributions of the high -value magnet rare
earth elements, Neodymium and Praseodymium (NdPr), and Terbium and
Dysprosium (TbDy).
o A significant portion of the BD-Zone mineralisation sits within the current MRE pit
design, but is currently designated as non -resource material, representing a
significant opportunity for resource growth.
o Scoping-level metallurgical test work program currently being planned to further
evaluate the potential of the BD-Zone.
• Non-binding MOU signed with the Saguenay Port Authority, offering a well-serviced
location for the Ashram Project’s proposed Hydrometallurgical facility, with ready access
to the Saguenay Port, rail and road and reticulated power, water and gas services.
• Conditional approval extended for C$2.6m in funding from the Critical Minerals
Infrastructure Fund to advance Mont Royal’s southern road access strategy.
• Highly experienced global rare earths executive , Mr. Constantine Karayannopoulos,
appointed to the Company’s newly established Advisory Board.
• Mont Royal remains well funded, with A$5.5m in cash at Quarter -end and proforma
balance of A$7.8m post receipt of exploration tax rebate due in May 2026.
Overview
The March 2026 Quarter has been a busy period for Mont Royal Resources, with multiple work
streams progressing for the delivery of an updated Preliminary Economic Assessment (PEA) for the
Company’s flagship Ashram Rare Earths & Fluorspar Project in Québec, Canada, which is scheduled
to be released in May 2026.
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Mont Royal’s Managing Director, Mr. Nick Holthouse, said:
“The March Quarter has been an exceptionally busy period for Mont Royal as we forge ahead with
a multi-pronged work program aimed at advancing our world-class Ashram Rare Earths & Fluorspar
Project towards development and unlocking the substantial inherent value of this large and highly
strategic critical minerals asset for our shareholders.
“The key focus for the Quarter has been on the updated PEA for Ashram, which is now in its final
stages. The update includes a comprehensive review of all the study work completed to date and
incorporates several key enhancements that are expected to reduce costs and minimise execution
risk. With expected release of the updated PEA to market in May.
“In parallel with the study work, we also undertook a geological review in collaboration with
Geological Consultants, which indicates potential for resource growth through the BD-Zone. The
BD-Zone was excluded from the Mineral Resource Estimate (MRE) on the basis of grade alone. With
REE minerals suitable for a flotation process, coarse grain size, and elevated ratios of PrNd and TbDy
REE elements there is potential for this zone to produce a commercially viable concentrate and add
to the Ashram projects value. We now plan to undertake metallurgical test work to further define
this opportunity.
“On the infrastructure front, we were very pleased to secure a non-binding MOU with the Saguenay
Port Authority during the Quarter, which we see as a highly suitable location for the Ashram Project’s
proposed hydrometallurgical processing facility. Saguenay Port ticks all the boxes in terms of
infrastructure, services and skilled workforce. We now look forward to progressing due diligence to
work towards a formal agreement.
“We are also continuing to investigate road options to link the mine and port, with our wholly owned
subsidiary, Commerce Resources, receiving an extension to conditional funding of up to C$2.6M
from Natural Resources Canada (NRCan) during the Quarter to advance our Southern Road Strategy.
“These ongoing work programs continue to be undertaken against the backdrop of a positive
macroeconomic environment, with recent policy developments and supply disruptions seeing
global rare earth prices remain well above 2025 averages.”
ASHRAM RARE EARTHS & FLUORSPAR PROJECT
Updated Preliminary Economic Assessment (PEA)
Throughout the March Quarter, Mont Royal continued to progress the updated PEA for the Ashram
Project.
The Ashram Project hosts a consolidated Mineral Resource Estimate (MRE) of:
• 73.2Mt @ 1.89% Total Rare Earth Oxide (TREO) and 6.6% Fluorspar (CaF₂) Indicated; and
• 131.1Mt @ 1.91% TREO & 4.0% CaF ₂ Inferred.
Altris Engineering are the Project integrators for the NI 43 -101 Report and responsible for
managing the associated work packages from the following consulting groups:
• BBA Consulting – Mining and Environmental
• DRA – Flotation plant design
• L3 – Hydromet plant design
• Norda Stelo – Tailings and water management
• Dahrouge Geological Consulting – Geology
• PLR – Geology
• Arcadis – Radiation management
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• Model Answer – Financial modelling
The revised PEA scope reflects updates to key project parameters including:
• Development of an all -season access road between the Ashram site and Schefferville.
• Rail logistics via the Tshiuetin Rail Transportation and Quebec North Shore and Labrador
(QNSL) railway network to Sept-Iles.
• Evaluation of road, rail or sea transportation options to the proposed Saguenay
hydrometallurgical Facility.
• Revised processing throughput assumptions and final product to a Mixed Rare Earth Oxide
product.
The PEA was approximately 80% complete at Quarter -end, with mining, geology and radiation
management work packages now finalised. The remaining work streams are progressing towards
completion in line with the targeted delivery timeline.
Geological Data Review
A recent geological review of the BD-Zone REE-mineralisation, which surrounds the modelled A-B
Zones and Breccia (Classic) domains of the current Ashram Mineral Resource (Figures 1 and 2), has
identified potential for the BD-Zone to contribute to Resource growth as a discrete sub -domain.
Previous drilling in the BD -Zone intersected mineralised widths ranging from 2.2 metres up to
214.7 metres a. While historically interpreted as having limited tonnage potential, review of the
updated geological model indicates that the BD-Zone is a far more extensive unit than previously
understood, particularly to the east and at depth, with recent drilling having intersected the BD-
Zone over significant widths (Figure 2).
Considering this, Mont Royal plans to initiate baseline metallurgical test work to better understand
the potential for the BD-Zone domain to contribute to advancing the development of the Ashram
Project.
aDrill intercepts reported herein represent downhole core lengths and are not necessarily true widths.
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Figure 1: Cross-section (looking North) of the Ashram Deposit, highlighting carbonatite lithological domains considered
in the 2024 Mineral Resource Estimate (see NI 43-101 Mineral Resource Estimate, dated July 4, 2024).
Figure 2: Ashram geological model section (looking North), highlighting the BD -Zone lithological domain enveloping
the 2024 MRE A- and B-Zone domains.
The BD-Zone mineralogy appears to be favourable, with the predominant REE-bearing minerals
present being the REE -fluorocarbonates bastnaesite, parisite, and synchysite. These minerals
commonly occur together and are typically well suited to standard indust ry flotation processes.
An initial mineralogy review indicates that the typical REE -fluorocarbonate mineral grain sizes
found in the BD -Zone are relatively coarse, typically ranging from approximately 50 to +200
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microns. Larger grain sizes can be an indicator of more favourable crushing and grinding
requirements and can have a better response to flotation processes.
Much of the BD -Zone mineralization sits within the current Mineral Resource Estimate (“MRE”)
conceptual pit constraint (Figure 2). However, the BD-Zone material was not included in the current
NI 43-101 MRE as it hosts less favourable rare earth oxide (“TREO”) grades than the higher-grade
and volumetrically dominant monazite -bastnaesite A- and B -Zone geological domains of the
Ashram Deposit (Figure 1).
TREOb grades in the BD-Zone average 0.78% (length-weighted, based on 3,907 samples), but this
grade distribution is bolstered by highly encouraging average NdPr (26.81%) and TbDy (10.43%)
distributionsc relative to TREO observed in drill core. As such, the potential inclusion of the BD -
Zone in future resource estimates presents a significant opportunity to improve the Project’s
economics, with added tonnage and a reduced strip ratio.
The Company is now actively planning a mineralogical and metallurgical test work program for the
BD-Zone. This work will include further mineralogy as well as crushing, grinding, and flotation
methods, with the overarching objective of obtaining a marketable concentrate at high recovery.
Although the initial review of the BD -Zone mineralogy indicates that the TREO deportment is
predominantly associated with REE-fluorocarbonate minerals, these observations are based on a
limited dataset. The Company intends to thoroughly consider all mineralisation characteristics as it
advances the metallurgical test work. Further details will be provided as the study advances.
bTREO is the sum of lanthanides (as oxides) + yttrium oxide.
cNdPr distribution is calculated as (Nd2O3 + Pr2O3) / TREO x 100. TbDy distribution calculated as (Tb2O3 + Dy2O3) / TREOx
100. All averages are length -weighted averages based on 3,907 core samples
MOU with the Saguenay Port Authority
During the quarter, Mont Royal Resources executed a Non -binding Memorandum of
Understanding (“MOU”) with the Saguenay Port Authority, located in Saguenay, Québec, Canada.
The MOU establishes a framework for cooperation relating to Mont Royal’s proposed industrial
project related to the processing and valorisation of rare earth concentrates from the Ashram
Project.
Under the Agreement, Mont Royal (through its wholly owned subsidiary Commerce Resources) is
considering locating a Hydrometallurgical facility within the Port Saguenay industrial zone, subject
to further technical, commercial and regulatory evaluations.
The Port of Saguenay has been identified as a key piece of infrastructure with the potential to
become a strategic export gateway for critical minerals produced in Northern Québec to global
markets. The importance of this corridor, and the role of the Port of Saguenay in facilitating critical
minerals exports, was recognised in Canada’s 2025 Federal Budget. The MOU is part of the broader
effort to develop a local and integrated value chain in Québec, aimed at maximizing the impact of
critical and strategic mineral resources from extraction through processing, while fostering
industrial innovation and regional competitiveness.
By strengthening logistics partnerships and leveraging strategic infrastructure such as the Port of
Saguenay, the initiative contributes to reinforcing Canada’s position in international critical minerals
markets, which are essential to the energy transiti on and clean technologies.
SPA owns land in its world -class industrial -port zone that could potentially be suitable for the
Ashram Project’s proposed Hydrometallurgical plant, subject to technical, environmental,
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regulatory, and operational assessments. Under the Agreement, SPA may, subject to availability
and approvals, consider making certain port facilities accessible for the potential transportation
and handling of Mont Royal’s rare earth concentrate and interm ediate rare earth products.
The MOU is on a non-exclusive basis and may be terminated by the earlier of either party in writing
or on December 31, 2026, if the parties have not yet entered into a formal agreement, unless both
Parties express their written consent to postpone such deadline to a later date.
Extension of Critical Minerals Infrastructure Fund Conditional Approval
During the Quarter, Mont Royal ’s 100%-owned subsidiary, Commerce Resources, received an
extension of the conditional approval first announced on February 6, 2025 for a revised road
strategy, with conditional funding of up to a total of C$2,606,977 from Natural Resources Canada’s
(NRCan) Critical Minerals Infrastructure Fund (CMIF ), to progress access road studies for the
Ashram Project. This extended conditional approval remains subject to completion of due
diligence and the execution of a formal agreement.
Under the proposed grant, Mont Royal (through its wholly owned subsidiary Commerce Resources)
is now progressing a Southern Road Access Study to link the Ashram Project with the town of
Schefferville (located 300km to the south). The funding package, pending final due diligence,
would assist with advancing engineerin g, environmental and key stakeholder consultation
packages.
The revised road access route is a key component of the Company’s new logistics strategy for
Ashram and will form an integral part of a new logistics solution that envisages the transportation
of a Mixed Rare Earth Concentrate (MREC) produced on site at As hram by road to the town of
Schefferville, where it would be placed on railcars and transported further south to the Port city of
Sept-Îles.
Transporting concentrate south to Schefferville and then onto Sept -Îles offers significant
advantages in reducing both CAPEX and technical risk along with increased operability by
avoiding ice-bound port concepts to the north.
From Sept-Îles, concentrate can then either be shipped or transported by road to the Port of
Saguenay where Mont Royal has recently entered into an agreement with the Port of Saguenay (see
above) and is considering locating a Hydrometallurgical facility within the Port Saguenay industrial
zone, subject to further technical, commercial and regulatory studies.
CORPORATE
Advisory Board
Mont Royal has appointed highly experienced global rare earths executive Mr. Constantine
Karayannopoulos to its newly established Advisory Board.
Mr. Karayannopoulos, BASc, MASc, P.Eng., is an experienced executive and professional engineer
with more than 30 years of senior leadership roles in the rare earth elements, critical minerals, and
advanced materials sectors. He has held senior executive an d board roles across mining,
processing and downstream materials businesses globally. He most recently served as President
and Chief Executive Officer of Neo Performance Materials Inc. (NEO) until his retirement in July
2023. As CEO of Neo, he oversaw the company’s global expansion and ultimately led the company
through its US$1.3 billion acquisition by Molycorp Inc. in 2012.
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In addition to his corporate roles, Mr. Karayannopoulos serves as a strategic advisor and board
member to several companies in the critical minerals and battery materials sectors.
The Company intends to appoint further members to the Advisory Board in the near term that will
complement Mr. Karayannopoulos’ skill set and, importantly, have a material presence in the
province of Quebec.
FINANCIAL POSITION
The Company held $ 5.5 million in cash and cash equivalents as at 31 March 2026.
The merged group is expecting an exploration tax rebate from Revenue Quebec of approximately
C$2.3 million for FY2025 due to Commerce Resources, which is expected to be received in May
2026, the Company will have a proforma balance of A$7.8m when incorporating the exploration
tax rebate.
A total of $429k of expenditure was incurred on exploration activities during the March 2026
Quarter. No development or production activities were undertaken during the March 2026
Quarter.
A total of A$272k was paid to related parties and their associates, as disclosed in item 6.1 of the
Appendix 5B pertaining to payments of executive, non-executive directors' fees and advisory fees.
FINANCIAL REPORTING
In accordance with the reporting schedule outlined in the Company’s December 2025 Quarterly
Report, the Group lodged its Annual Report for the financial year ending 31 October 2025 on 30
January 2026, its Half Year Accounts to 31 December 2025 on 6 March 2026 and its Q1 Interim
Financial Report to 31 January 2026 on 13 March 2026.
LOOKING FORWARD
Planned activities for the June quarter include :
• Close out and deliver the PEA Study to market in May.
• Consolidate proposed PFS study costs and timelines .
• Commence Fluorspar flotation test work programme .
• Commence BD zone metallurgical testwork.
• Progress discussions with industry around offtake and downstream collaboration .
• Finalise proposal for environmental baseline and permitting programme.
• Progress CMIF $2.6M grant Due Diligence process.
For and on behalf of the Board
ENDS
Joel Ives | Company Secretary
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For Further Information:
Nicholas Holthouse
Managing Director
Peter Ruse
Corporate Development
Nicholas Read
Investor and Media Relations
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.