Mont Royal Resources (MRZ) Investor update summary

Project milestones and economic assessment

• Updated preliminary economic assessment (PEA) highlights a 30-year mine life, robust economics, and a globally significant rare earth and phosphate asset in Canada.

• The project is based on a large carbonatite deposit with 204 million tonnes at 1.9% TREO, with stage one utilizing only 25% of the resource.

• Stage one targets 17,500 tonnes per annum of TREO, including 4,000 tonnes of NdPr, 100 tonnes of DyTb, and 230 tonnes of yttrium, with strong demand from Western industries.

• Post-tax NPV8 is CAD 2.3 billion, IRR is 22%, and payback is 3.9 years; initial CapEx is CAD 1.2 billion with a 30% contingency.

• The project is scalable, with potential mine life up to 120 years and additional value from fluorspar and niobium by-products.

Government and stakeholder engagement

• Strong and growing support from provincial and federal governments, with recent meetings in Ottawa and positive feedback on the PEA.

• First Nations, particularly the Naskapi Nation, have endorsed infrastructure initiatives, a key step for government backing and road development.

• Government agencies like Investissement Québec, MRNF, and Société du Plan Nord are engaged in opening access to northern Québec.

• A CAD 2.6 million grant from NRCan is allocated for road studies, with expectations for government-led infrastructure funding.

Strategic positioning and market outlook

• The project aims to supply critical minerals to North American and European markets, focusing on non-China supply chains and pricing decks.

• Industry interest is high, with ongoing discussions with Western processors, magnet manufacturers, and OEMs in Europe and the U.S.

• The project’s robust metallurgy and low strip ratio support a sustainable, scalable operation attractive to downstream partners.

• Fluorspar by-product is positioned for local aluminum smelters and broader industrial uses, with potential to add 8-10% to project value.