Mont Royal Resources Ltd.: Updated Preliminary Economic Analysis Confirms Ashram as a Major Long-Life North American Rare Earths Development Project

Press Release

June 08, 2026

Robust Updated PEA Highlights Ashram’s Potential to Become a Strategically Important Long-term Supplier of Rare Earths into Western Critical Minerals Supply Chains

Cautionary Statement

The Preliminary Economic Assessment (PEA) is a preliminary technical and economic study of the potential viability of the Ashram Rare Earths & Fluorspar Project. It is based on low-level technical and economic assessments that are not sufficient to support the estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the PEA will be realised. Further exploration, technical, and economic studies are required before the Company will be in a position to estimate any Ore Reserves or to provide assurance of an economic development case. The PEA has been completed to a level of accuracy of ± 50%.

Forward-Looking Statements
The PEA is based on the material assumptions outlined in this announcement. These include assumptions about the availability of funding. While Mont Royal considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the PEA will be achieved.

To achieve the range of outcomes indicated in the PEA, funding in the order of CAD$1.23 billion (initial capital, excluding access road, including 30% contingency) will likely be required. Investors should note that there is no certainty that Mont Royal will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of Mont Royal’s existing shares. It is also possible that Mont Royal could pursue other value realisation strategies such as a sale, partial sale, or joint venture of the Project. If it does, this could materially reduce Mont Royal’s proportionate ownership of the Project.

There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of the PEA.

Of the approximately 53 Mt of mill feed underpinning the 30-year production target, approximately 93% is sourced from Indicated Mineral Resources and approximately 7% is sourced from Inferred Mineral Resources.

There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised.

The Inferred Mineral Resources do not feature as a significant proportion early in the mine plan. The mine plan is sequenced such that Indicated Mineral Resources predominate in the early years of production, with Inferred Mineral Resources weighted towards the later stages of the mine life. The Company is satisfied that the respective proportions of Inferred Mineral Resources are not the determining factors in project viability.

HIGHLIGHTS¹

• Updated Preliminary Economic Assessment (“PEA”) confirms the Ashram Rare Earths Project (“Ashram” or the “Project”) in Québec, Canada, as a large-scale, long-life North American rare earth development.
• Large-scale production profile:
  • Average annual production of ~17,466 tonnes of saleable Rare Earth Oxide (REO)
  • Average annual production of ~4,035 tonnes of Nd₂O₃ & Pr₂O₃ (NdPr)
    • ~100 tonnes of Dy₂O₃ & Tb₂O₃ (DyTb)
    • ~ 230 tonnes of Y₂O₃ (Y)
  • Initial mine life of 30 years supported by a resource base that remains capable of further expansion, with 93% of the resource schedule in the Indicated category.
  • Base case utilises only 25% of the current global resource, highlighting significant long-term expansion optionality
  • Initial nameplate mill throughput of ~1.8Mtpa supporting a long-life open pit operation with a low strip ratio of 0.4:1
• Robust project economics:
  • Post-tax NPV_8% (real) of CAD$2.03B
  • Post-tax IRR (real) of 22.0% and post-tax payback of 3.9 years from commencement of production
  • Life of Mine (LOM) revenue of ~CAD$24.6B and a life-of-mine EBITDA margin of ~62.7%
  • Initial CAPEX of ~CAD$1.23B, including 30% contingency, with access infrastructure costs assumed under a contracted/shared logistics model and reflected in operating expenditure
  • The project is anticipated to benefit from ~CAD$342M of refundable Clean Technology Manufacturing Investment Tax Credits (CTM ITC) incorporated into post-tax cash flows
• Competitive cost position:
  • C1 cash cost of approximately CAD$17.99/kg saleable REO
  • AISC of approximately CAD$18.58/kg saleable REO
  • Cost profile supported by low strip ratio, favourable mineralogy, production of a high-grade rare earth concentrate and an integrated hydrometallurgical refining strategy
• Strategic project positioning:
  • Ashram is one of the largest monazite-dominant rare earth deposits in North America
  • The Project offers exposure to a high-value magnet rare earth basket led by NdPr with additional Dy and Tb content, and potential future fluorspar value upside
  • Integrated development concept incorporates on-site concentration at Ashram and downstream hydrometallurgical refining in Saguenay, Québec
  • Located in Québec, one of the world’s leading mining jurisdictions
  • Ashram is well positioned to support Western government and industry initiatives aimed at establishing secure critical minerals supply chains outside China
• Additional value upside:
  • Potential inclusion of a dedicated fluorspar recovery circuit in future studies
  • Broader district exploration upside across additional targets within the Eldor carbonatite complex, including satellite targets such as Mallard
  • Potential future inclusion of higher-value zones, including the BD Zone, subject to further test work and study
  • Downstream and strategic partnership opportunities
  • Opportunity to optimise road access costs. A regional shared infrastructure strategy is being evaluated as a means of reducing access road costs through potential collaboration with other mining projects, government agencies, and First Nations.
• Next steps:
  • Progression toward a Pre-Feasibility Study (PFS), targeted to commence in H2 CY2026
  • Ongoing metallurgical optimisation, engineering refinement, and workstreams to further de-risk the flowsheet and development pathway
  • Advancement of environmental baseline, permitting and stakeholder engagement programs across both the Ashram and Saguenay development footprint
  • Continued engagement regarding offtake, downstream and strategic partnership opportunities

Mont Royal’s Managing Director, Mr. Nicholas Holthouse, said:

“The updated PEA marks a major step forward for the Ashram Project, confirming a large-scale, long-life development with strong underlying economics and a clear pathway to advancement. The study has highlighted Ashram’s combination of scale, favourable mineralogy and competitive cost profile, supporting its potential to become a meaningful long-term supplier of rare earth products into Western supply chains. Importantly, we see further upside beyond the base case, including opportunities in fluorspar, resource expansion and downstream partnerships and collaboration.

This is a project that can have a meaningful and long-lived impact on the development of rare earth industries and technologies within Quebec, Canada, North America and Europe.

Our focus now is continuing to work with First Nations and Government agencies on developing infrastructures strategies and on progressing the project into pre-feasibility, advancing permitting and continuing engagement with strategic and offtake partners.”

PRELIMINARY ECONOMIC ASSESSMENT OVERVIEW

Montreal, Quebec–(Newsfile Corp. – June 8, 2026) – Mont Royal Resources Limited (ASX: MRZ) (TSXV: MRZL) (“Mont Royal” or the “Company”) is pleased to present an updated Preliminary Economic Assessment (“PEA”) for its 100%-owned Ashram Rare Earths and Fluorspar Project located in Nunavik, Québec, Canada.

The PEA was completed by Altris Engineering (“Altris”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) in collaboration with the following specialist firms:

• Altris Engineering
• BBA Inc. (BBA)
• PLR Resources Inc. (PLR)
• DRA Americas Inc. (DRA)
• L3 Process Development (L3)
• ASDR Canada Inc.
• TALA Geotec
• Norda Stelo Inc.

The updated study incorporates significant optimisation work completed since prior economic studies, including:

• revised mining and processing assumptions;
• optimisation of transportation and logistics pathways;
• incorporation of a proposed hydrometallurgical processing facility in Saguenay, Québec;
• updated infrastructure assumptions; and
• revised engineering and metallurgical inputs.

The PEA highlights the potential for Ashram to become a major long-term supplier of rare earth products into Western and allied critical mineral supply chains.

Ashram is one of the largest monazite-hosted rare earth deposits in North America and contains a favourable distribution of magnet rare earth elements, including neodymium and praseodymium (“NdPr”), which are critical components used in EVs, permanent magnets, wind turbines, robotics, semi-conductors, aerospace technologies and defence applications.

See the full MR

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