March 2026 Quarterly Activities Report
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:
- The BD-Zone shows relatively high distributions of the high-value magnet rare
earth elements, Neodymium and Praseodymium (NdPr), and Terbium and Dysprosium (TbDy).
- 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.
- 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.
Mont Royal Resources Ltd Level 8, 2 Bligh Street E: [email protected] ACN: 625 237 658 Sydney NSW 2000 www.montroyalres.com
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% CaF₂ 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
- 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 metresa. 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.
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 industry 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 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 transition 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, 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 intermediate 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 engineering, 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 Ashram 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 and 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.
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 $2.6M grant Due Diligence process.
For and on behalf of the Board
ENDS Joel Ives | Company Secretary
For Further Information:
Nicholas Holthouse Peter Ruse Nicholas Read
Managing Director Corporate Development Investor and Media Relations [email protected] [email protected] [email protected]
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Use of Funds
In accordance with Listing Rule 5.3.4, and as the March 2026 quarter was in a period covered by a ‘Use of Funds’ statement in the Prospectus, the table below compares the Company’s actual expenditure to 31 March 2026 in comparison with the estimated expenditure outlined in the ‘Use of Funds’ statement:
| Use of Funds under Prospectus | Expenditure | Actual expenditure to date 31-Mar-26 A$ | |
|---|---|---|---|
| allocated under | |||
| Prospectus | |||
| (2-year period) | |||
| A$ | |||
| Costs of the Offers | 1,216,644 | 1,497,403 | |
| Finalisation of Preliminary Economic Assessment | 1,000,000 | 498,549 | |
| Environmental Baseline Studies | 3,000,000 | - | |
| Prefeasibility Studies | 2,500,000 | - | |
| Northern Lights exploration | 250,000 | 71,527 | |
| General administration1 | 2,033,356 | 1,457,933 | |
| Total | 10,000,000 | 3,525,321 |
1 This excludes the corporate advisory fee payments to Yelverton Capital Pty Ltd of $426k and Wallabi Group Pty Ltd of $433k as disclosed in the Prospectus. These fees were deemed to be paid out of existing funds prior to the IPO raise.
The company notes that general administration costs were high due to pay down of creditors and transaction costs and expects these to significantly reduce in subsequent quarters.
Annexure – Mining Tenement Information
The Company owns of 75% of Northern Lights Minerals Pty Limited (“NLM”) which holds a substantial land package across the Upper Eastmain Greenstone belt in Quebec, Canada.
The following tenements are held at 31 March 2026:
| Project | Location | Tenement/Title | |
| Number | |||
| Northern Lights | Quebec, Canada | 2556889-894 2556900-912 2556915 2556918-925 2556926 2556928-933 2556934-935 2556936-946 2556947 2556948-953 2556954-956 2556957-958 2556959-971 2556974-984 2556990 2556991-999 2557000 2558307-322 2558323-325 2706113 2784482-485 2802682 2557011-012 2557016-020 2557025-038 2557040-061 2557064-086 2557088-100 2557102-164 2557174-175 2557183-185 2557188-189 2627133 | |
| Eastmain Leran | Quebec, Canada | 28001 – 28020 28133 32570 – 32577 47480 – 47482 | |
| Eastmain-Leran (North) Staked Claims | Quebec, Canada | 2366180 – 308 2366403 – 504 2366511 – 512 |
2367332 – 339 2486140 – 145 2513157 – 400 2515373 2520337 – 338 2530140 - 150
The Company confirms that the following mineral claims were acquired via the merger with Commerce during the quarter:
| Project | Location | Tenement/Title Number | |||
| Eldor Claims | Quebec Canada | 1007657 1007658 1007659 1007660 1007661 1007883 1007889 1007890 2087740 2087741 2087742 2087743 2087744 2087745 2087746 2087747 2087748 2087749 2087750 2087751 2087752 2087753 2087754 2087755 2087756 2087757 2087758 2087759 2087760 2087761 2087762 2087763 2087764 2087765 2087766 2087767 2087768 2087769 2087770 2087771 2087772 2087773 2087774 2087775 2087776 2087777 2087778 2087779 2087780 2087781 2087782 2087783 2087784 2087785 2087786 2087787 2087788 2087789 2087790 2087791 2087792 2087793 2087794 2087795 2087796 2087797 2087798 2087799 2087800 2087801 2087802 2087803 2087804 2087805 2087806 2087807 2087808 2087809 2087810 2087811 2087812 2087813 2087814 2087815 2087816 2087818 2087819 2087820 2087821 2087822 2087823 2111141 2111142 2111143 2111144 2111145 2111146 2111147 2111148 2111149 2111150 2111151 2111152 2111153 2111154 2111155 2111156 2111157 2111158 2111159 2111160 2111161 2111162 2111163 2111164 2111165 2111166 2118755 2118761 2118767 2118768 2118769 2118775 2118776 2118777 2118780 2118781 2118782 2118783 2118784 2118785 2118786 2118787 2118788 2118789 2118790 2118791 2118792 2118793 2118794 2123093 2123094 2123095 2123096 2123097 2123098 2123099 2123100 2123101 2123102 2123103 2123104 2123105 2123106 2142201 2142202 2142203 2142204 2142205 2142206 2142207 2142208 2142209 2142210 2142211 2142212 2142213 2142214 2142215 2142216 2142222 2142223 2142224 2142230 2142231 2142232 2142233 2142234 2142235 2142236 2142242 2142243 2142244 2142245 2142246 2145636 2145637 2145638 2145639 2145640 2145649 2145650 2145651 2145652 2145653 2145654 2145655 2145656 2145657 2145658 2145662 2145663 2145664 2145665 2145666 2145667 2145668 2145669 2145670 2145671 2145674 2145675 2145676 2145677 2145678 2145679 2145680 2145681 2145682 2145684 2145685 2145686 2145687 2145688 2145689 2145691 2145692 2145698 2145699 2145700 2145705 2145706 2145707 2145712 2145713 2145714 2145715 2145716 2145722 2145723 2145724 2145725 2179343 |
About Mont Royal Resources
Mont Royal Resources Limited (ASX: MRZ,TSXV:MRZL) is a critical minerals development and exploration company with projects in Quebec, Canada. The Company is dedicated to advancing its 100%-owned Ashram Rare Earth and Fluorspar Deposit in Québec, Canada – one of the largest monazite-dominant carbonatite-hosted Rare Earth Elements deposits in North America. In addition, the Company owns 75% of Northern Lights Minerals 536km2 tenement package located in the Upper Eastmain Greenstone belt. The projects are located in the emerging James Bay area, a Tier-1 mining jurisdiction of Quebec, and are prospective for lithium, precious (Gold, Silver) and base metals mineralisation (Copper, Nickel).
For further information regarding Mont Royal Resources Limited, please visit the ASX platform (ASX: MRZ) or the Mont Royal’s website www.montroyalres.com
Qualified/Competent Person
The technical and scientific information in this news release has been reviewed by Marie- Pier Boivin, M.Sc, P.Geo, a consultant of the Company, and a registered permit holder with the Order des Géologues du Québec, and Qualified Person as defined by National Instrument 43-101. Ms. Boivin has sufficient experience, which is relevant to the style of mineralization, type of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as described by the JORC Code, 2012. Ms. Boivin consents to the inclusion in this news release of the matters based on this information in the form and context in which it appears.
Compliance statement
The Exploration Results for the Ashram Project were first reported in the Company’s prospectus dated 30 September 2025 and released to ASX on 1 October 2025 (Prospectus). The Company confirms that it is not aware of any new information or data that materially affects the information relating to the exploration results included in the Prospectus.
Important Notices & Disclaimers
Forward Looking Statements This announcement contains certain “forward looking statements” within the meaning of Australian securities laws and “forward looking information” within the meaning of Canadian securities laws (collectively referred to as “forward looking statements”). All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward looking statements. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these events, activities or developments from coming to fruition include: actual results of current and future exploration activities; that Mont Royal may not be able to fully finance any additional exploration on the Ashram Project; that even if Mont Royal is able raise capital, costs for exploration activities may increase such that Mont Royal may not have sufficient funds to pay for such exploration or processing activities; the timing and content of the proposed drill program and any future work programs may not be completed as