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.

• Stage 1 covers only 25% of the 204 million tonne resource, with scalability to meet future demand.

• Project NPV (8% discount) is CAD 2.3 billion post-tax, with a 22% IRR and a 3.9-year payback period.

• All-in sustaining cost is CAD 18.50/kg against an average basket price of CAD 48/kg.

• Initial CapEx is CAD 1.2 billion, with road costs included as operating expenses.

Product and market positioning

• Annual production targets 17,500 tonnes of TREO, including 4,000 tonnes NdPr, 100 tonnes DyTb, and 230 tonnes yttrium.

• Yttrium is gaining importance, especially for the aerospace sector in Québec.

• Project is designed to be scalable and can serve multiple customers, with potential for 120-year mine life.

• Fluorspar and niobium are additional by-products, with high-grade fluorspar found nearby.

• Mixed rare earth carbonate is the main product, with potential to shift to concentrate if partnerships align.

Infrastructure and government engagement

• Strong provincial and growing federal government support, especially for infrastructure and capital needs.

• First Nations (Naskapi Nation) endorsement for road infrastructure is a major milestone, unlocking further government interest.

• Road development is expected to be government-funded, with a CAD 2.6 million grant for studies and alignment.

• Infrastructure improvements are key to project economics and stakeholder alignment.