Mont Royal Resources Limited press release

Updated Preliminary Economic Analysis Confirms Ashram as a Major Long-Life North American Rare Earths Development Project

2026-06-09

TSXV - TSX Venture Exchange · Australia · Technical Studies

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.

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 tonnesof 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 yearssupported by a resource base that remains capable of further expansion, with 93% of the resource schedule in theIndicated category.

Base case utilises only 25% of the current global resource, highlighting significant long-term expansion optionality

Initial nameplate mill throughput of ~1.8Mtpasupporting a long-life open pit operation with a low strip ratio of 0.4:1

Robust project economics:

Post-tax NPV8%(real) of CAD$2.03B

Post-tax IRR (real) of 22.0% and post-taxpayback of 3.9 yearsfrom commencement of production

Life of Mine (LOM) revenue of ~CAD$24.6Band 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$342Mof 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.

The Economic Summary and metrics for the project are shown below in Table 1 and Table 2.

TABLE 1: Updated PEA - Economic Summary

TABLE 2: Operating cost profile

PROJECT OVERVIEW AND HISTORY

The Ashram Project is located on Mont Royal Resources' 100%-owned Eldor Property in Nunavik, northern Québec, approximately 130km south of Kuujjuaq, and covers 11,475ha across 244 contiguous Exclusive Exploration Rights (EERs) as shown in Figure 1.

[](https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_001full.jpg)

Figure 1: Ashram REE and Fluorspar Project location

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_001full.jpg

The Project hosts the Eldor Carbonatite Complex, including the Ashram Rare Earth and Fluorspar Deposit, with additional potential for niobium, tantalum and phosphate mineralisation.

Following the merger between Commerce Resources and Mont Royal Resources in October 2025, the combined group consolidated ownership and strategic direction for the Project.

Commerce Resources Corporation holds a 100% interest in all EERs, which are in good standing until May 2027. Importantly, the Ashram Deposit is not subject to the limited third-party royalties applicable to a small number of original claims. The Property is fully permitted for exploration, with no known material environmental, legal or access constraints.

The Project is accessible via Kuujjuaq, which serves as the primary logistics hub with regular air services from Montréal and seasonal marine supply access. A permanent on-site exploration facility, Camp Valcourt, supports year-round operations and accommodates up to 35 personnel.

The Project benefits from several strategic infrastructure advantages, including:

access to established logistics corridors;

proximity to potential port infrastructure;

access to low-cost renewable hydroelectric power in Québec (Saguenay site);

a supportive mining jurisdiction; and

access to established industrial infrastructure in Saguenay.

Since acquiring the Property in 2007, Commerce has completed extensive drilling, geophysical surveys, trenching and surface exploration programs.

The Ashram REE Deposit was discovered in 2009, with subsequent drilling confirming a large-scale, continuous mineralised system extending from surface to depth.

This work supported the establishment of NI 43-101 compliant Mineral Resource Estimates, which have since positioned Ashram as one of the largest undeveloped rare earth deposits in North America.

GEOLOGICAL SETTING

Ashram is hosted within the Eldor Carbonatite Complex, a large intrusive carbonatite system located within the Paleoproterozoic New Québec Orogen.

Rare earth mineralisation is dominated by monazite, with subordinate bastnäsite, parisite and xenotime. The relatively simple and commercially favourable mineral assemblage is considered advantageous for metallurgical recovery and downstream processing.

The deposit includes several mineralised zones, including:

A-Zone;

B-Zone;

Breccia Zone; and

BD-Zone.

These zones vary in texture and grade, with the A-Zone hosting the highest and most continuous REE grades. Niobium and tantalum mineralisation occurs elsewhere in the complex, mainly hosted in pyrochlore-group minerals within carbonatite and phoscorite units.

The relatively simple mineral assemblage is considered commercially favourable and comparable to other major carbonatite-hosted REE systems globally, including Mountain Pass (USA), Niobec (Québec) and Palabora (South Africa).

MINERAL RESOURCE ESTIMATE

The updated PEA uses the updated JORC MRE for the Ashram Deposit released on October 1, 2025 (Table 3). The Ashram MRE integrates drilling data collected between 2008 and 2022 and was completed using industry-standard geological modelling and geostatistical methods.

A total database of 213 drill holes, six surface channels, and nearly 33,000 samples underpin the estimate, with mineralisation defined within three REE-bearing domains (A-Zone, B-Zone, and Breccia Classic). The drill hole collars are shown below in Figure 2.

[](https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_002full.jpg)

Figure 2:Carbonatite Complex Geology of the Ashram Project.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_002full.jpg

Ordinary kriging was applied within a detailed 3D block model constrained by a conceptual open-pit shell developed to demonstrate reasonable prospects for eventual economic extraction.

The estimate is classified in accordance with CIM standards, defining Indicated and Inferred Resources based on drill spacing, geological confidence, and grade continuity; no Measured Resources are defined at this stage. The confidence categories assigned under the CIM Definition Standards were reconciled to the confidence categories under the JORC Code, as disclosed in the Company's Prospectus released to ASX on 1 October 2025.

Interpreted zones are shown below in the cross-section in Figure 3 with Figure 4 showing the block model coloured by resource classification within the resource shell.

[](https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_003full.jpg)

Figure 3:Geological model cross-section of the Ashram Deposit, highlighting carbonatite lithological domains considered in the MRE.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_003full.jpg

[](https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_004full.jpg)

Figure 4: Cross-section showing Indicated and Inferred classifications within the block model.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_004full.jpg

[](https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_005full.jpg)

Figure 5:Cross-section showing the TREO % distribution.

To view an enhanced version of this graphic, please visit: https://images.newsfilecorp.com/files/12033/300685_95e7c890d431a8a5_005full.jpg

Using a base case, net metal return (NMR) cut-off of CAD$287/t, the MRE defines 73.2 Mt of Indicated Resources grading 1.89% Total Rare Earth Oxides (TREO) and 131.1 Mt of Inferred Resources grading 1.91% TREO. The resource exhibits a favourable rare-earth distribution, with NdPr accounting for approximately 21% of TREO and meaningful contributions from the critical heavy rare earths Tb and Dy with Figure 5 showing TREO distribution.

Mineralisation remains open laterally and at depth, and the estimated pit shell outlines a large, continuous deposit with a conceptual strip ratio across the entire MRE of approximately 2.7:1.

Table 3: 2025 Ashram Project Mineral Resource Estimate

| Cut-off NMR | CAD $287 / tonne | | | | Category | Unit | Indicated | Inferred | | Tonnes | Mt | 73.2 | 131.1 | | Total TREO | % | 1.89 | 1.91 | | Nd+Pr Oxide/TREO | 21.2 | 21.4 | | | Dy+Tb Oxide/TREO | 0.7 | 0.5 | | | La2O3 | ppm | 4,829 | 4,969 | | Ce2O3 | 8,753 | 8,933 | | | Pr2O3 | 907 | 927 | | | Nd2O3 | 3,112 | 3,162 | | | Sm2O3 | 412 | 385 | | | Eu2O3 | 98 | 87 | | | Gd2O3 | 223 | 195 | | | Tb2O3 | 24 | 19 | | | Dy2O3 | 102 | 73 | | | Ho2O3 | 14 | 10 | | | Er2O3 | 31 | 21 | | | Tm2O3 | 3 | 2 | | | Yb2O3 | 18 | 13 | | | Lu2O3 | 2 | 2 | | | Y2O3 | 419 | 280 | | | Fluorspar (CaF2) | % | 6.6 | 4.0 |

(a)TREO is sum of lanthanides (as oxides) + yttrium oxide (b) NdPr distribution calculated as (Nd2O3+ Pr2O3) / TREO x 100 (c) CaF2calculated from fluorine assay using factor of 2.055 (F to CaF2). Assumes all fluorine is contained within the mineral fluorite ("fluorspar") (d) Cut-off expressed as NMR ($)/t only considers payable elements La-Nd-Pr-Tb-Dy (e) DyTb distribution calculated as (Dy2O3 + Tb2O3) / TREO x 100 (f) Prices shown are in CAD (g) Differences may occur in totals due to rounding

The MRE confirms Ashram as a large, well-defined rare earth deposit with strong grade continuity and favourable metallurgical characteristics. The BD-Zone, also an REE-bearing unit, was excluded from the estimate pending further metallurgical evaluation and therefore represents additional resource upside.

Overall, the MRE provides a solid basis for advanced technical studies and future resource definition through continued drilling.

DEVELOPMENT PATHWAY

The updated PEA contemplates a mine and concentrator operation located at Ashram, with production of an intermediate mixed rare earth concentrate ("MREC") product for downstream processing.

The Project development strategy incorporates:

on-site concentration;

multi-modal logistics transportation;

hydrometallurgical processing in Saguenay;

production of saleable mixed rare earth products; and

future optionality for additional downstream processing initiatives.

The Company believes this approach:

materially improves execution certainty;

reduces development complexity;

enhances scalability;

supports financing pathways; and

aligns with broader Québecois and Canadian critical minerals strategies.

MINING

The Ashram Project mine design and mine plan are based on a conventional open-pit, truck-and-shovel operation using drill-and-blast mining on 10m benches, operated by an owner fleet on a continuous 7-day, 12-hour shift basis.

While the Mineral Resource supports a theoretical 169-year mine life at 4,900tpd, a 30-year life-of-mine (LOM) was adopted for the PEA as it captures most of the Project's value. Based on technical and economic parameters and metal selling prices, the Net Metal Return (NMR) cut-off for the Project was calculated at CAD$88/t.

A trade-off study assessing the impact of higher cut-off values on Project economics and concentrator feed quality resulted in the selection of an elevated cut-off strategy being adopted and an NMR cut-off of CAD$217/t was ultimately selected for the PEA.

The resulting open pit design for the 30-year mine life includes 53 Mt of mill feed at a strip ratio of 0.4:1. Access to mineralisation beneath the shallow centre pond will require the construction of dewatering dykes and controlled pond dewatering. Mine design, scheduling and cost estimation were completed using MinePlan 3D software, supported by geological, topographical and material property data.

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