Announcement PDF MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN: 625 237 658 Annual Financial Report For The Year Ended 30 June 2023 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CORPORATE DIRECTORY BOARD OF DIRECTORS Gary Lawler (Non-Executive Chairman) Peter Ruse (Executive Director) Ronnie Beevor (Non-Executive Director) COMPANY SECRETARY Shaun Menezes REGISTERED OFFICE AND PRINCIPAL BUSINESS OFFICE Level 8, 2 Bligh Street Sydney NSW 2000 Telephone: (+61 2) 8651 7800 SHARE REGISTRY Automic Registry Services Level 5 191 St Georges Terrace Perth WA 6000 Investor Enquiries: 1300 288 664 AUDITOR BDO Audit (WA) Pty Ltd Level 9, Mia Yellagonga Tower 2 5 Spring Street, Perth, WA Telephone: (+61 8) 6382 4600 STOCK EXCHANGE ASX Limited (Australian Securities Exchange) ASX Code: MRZ MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONTENTS Page Directors' Report 2 Auditor's Independence Declaration 12 Consolidated Statement of Profit or Loss and Other Comprehensive Income 13 Consolidated Statement of Financial Position 14 Consolidated Statement of Changes in Equity 15 Consolidated Statement of Cash Flows 16 Notes to the Consolidated Financial Statements 17 Directors' Declaration 31 Independent Auditor’s Report 32 ASX Additional Information 36 Corporate Governance Statement 38 1 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Your directors present their report on the consolidated group for the year ended 30 June 2023. Directors The names, qualifications and experience of the directors in office at any time during, or since the end of, the year are as follows. Directors have been in office since the start of the year to the date of this report unless otherwise stated. Gary Lawler (Non-Executive Chairman) BA, LLB, LLM(Hons), ASIA, Master of Laws (Applied Laws)(Wills & Estates) Mr Lawler is a career lawyer having practiced for over 40 years primarily as a corporate/ mergers and acquisitions lawyer. During his years of practice, Mr Lawler has been a partner in several large Sydney based law firms and is currently a Senior Adviser at Ashurst Australia. Mr Lawler brings a wealth of legal and business experience to the Board. Other current directorships: Champion Iron Limited(ASX/TSX). Former directorships (last 3 years): None. Peter Ruse (Executive Director) BCom, GradCertAppFin Mr Ruse is a finance professional with over 12 years of extensive experience in Equity Funds Management and Private/Institutional Wealth Management specialising in Mining/Minerals and Industrial related sectors. Mr Ruse has extensive private and public equity market experience as a former Executive Director/Portfolio Manager of ALR Investments Pty Limited, a Western Australian family office investment company. Other current directorships: Gunsynd PLC (AIM-LSE), Parabellum Resources Limited. Former directorships (last 3 years): None. Ronnie Beevor (Non-Executive Director) B.A. (Hons)(appointed 25 March 2023) Mr Beevor has over 40 years’ experience in investment banking and mining. He was Head of Investment Banking at Rothchild Australia between 1997 and 2002, and since has been Chair or a Non-Executive Director of a range of mining companies, both in Australia and internationally. Mr Beevor’s extensive career as a company director includes serving on the boards of Riversdale Resources, which proved up the substantial Grassy Mountain metallurgical coal deposit in Alberta, Canada and was taken over by Hancock Prospecting for A$800M in 2019, and Talison Lithium which acquired the Greenbushes lithium mine in WA and was taken over by Tianqi Lithium for C$900M in 2013. Mr Beevor holds an Honours degree in Philosophy, Politics and Economics from Oxford University, and qualified as a chartered accountant in London. Other current directorships: Felix Gold Limited, Bannerman Energy Limited Former directorships (last 3 years): None. Michael O’Keeffe (Non-Executive Director) BAppSc (resigned 25 March 2023) Mr O’Keeffe is a metallurgist and currently the Executive Chairman of Champion Iron Limited. His vast knowledge of the mining industry and its issues and his extensive experience managing large companies have given him an impressive track record of achievements. Mr O’Keeffe was previously Executive Chairman of Riversdale Mining Limited (2004-2011), Managing Director of Glencore Australia Limited (1995-2004) and Mount Isa Mines (1975-1994). Company Secretary Shaun Menezes BCom, LLB Mr Menezes is an accounting and finance professional with over 20 years experience. He has worked in the capacity of Company Secretary and Chief Financial Officer of a number of ASX and SGX listed companies, held a senior management role within an ASX 200 listed company and was an executive director at a leading international accounting firm. He is a member of the Governance Institute of Australia and the Chartered Accountants Australia and New Zealand. 2 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Directors Meetings The following table sets out the number of meetings of the Company’s directors held during the year ended 30 June 2023 attended by each director: Number Number Eligible to Attend Attended Gary Lawler 6 6 Peter Ruse 6 6 Ronnie Beevor 2 2 Michael O’Keeffe 4 4 Principal Activities The principal activity of the consolidated group during the year was the farm-in to and exploration of the Wapatik Gold-Copper Project in Quebec, Canada, the exploration on Northern Lights Minerals Pty Ltd in the Upper Eastmain Greenstone Belt in Quebec, Canada. Review of Operations The consolidated loss of the consolidated group for the year amounted to $820,331 (2022: $2,052,159). Mont Royal Resources (ASX:MRZ) is building a significant position in an underexplored greenstone belt in the James Bay area of Quebec, Canada, with the Company’s Northern Lights and Wapatik projects, both strategically located in the lower and upper regions of the belt (Figure 1). Figure 1: Project Locations Northern Lights: The Northern Lights Project is situated in the Upper Eastmain Greenstone belt, James Bay Region, Quebec. The Projects include, Northern Lights Assets (75% Owned), Eastmain Lèran Project (Option to own 75%), Dios Assets (JV to Earn in 70%) across a total land package of 536 km2. Copper Gold Drilling Program During the second half of the Financial Year, The Company completed a diamond drilling program of 5 planned holes targeting (refer ASX Announcement 23rd March 2023) potential copper & gold extensions to historical exploration in the 1950’s and 1970’s. The program consisted of approximately 1,000m of drilling and was completed ahead of the scheduled time frame. No safety incidents nor mechanical issues were faced during the exploration program. Bohier Project & Eastmain Léran – Lithium Exploration and Prospecting program Additional to the current drilling program, the Company commenced a critical metals exploration program to identify lithium pegmatites on the Bohier and Eastmain-Léran projects. 3 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Figure 2: The upper Eastmain Greenstone Belt with Northern Lights Tenure, Eastmain Léran (Focus Graphite) and Dios optioned tenure The Bohier mafic volcanics are part of the similar package that hosts Benz Mining’s Ruby Hill pegmatite. Additional pegmatites dykes were found less than a kilometre west of the Bohier Project (Refer ASX:BNZ ASX Release – 27 October 2022) and the dyke swarm could potentially extend onto the Bohier property. This program is aimed at detailed mapping, logging, sampling of outcropping Wahemen granite. Results will be analysed to determine whether their chemical composition is compatible with lithium caesium tantalum (LCT) systems. Summer 2023 surface exploration program The Lithium prospecting program at Bohier and Eastmain Leran commenced in May. The Company was able to successfully complete its LIDAR survey ahead of this event and approximately 4 days of fieldwork before wildfire evacuation orders were received from the Quebec authorities. The program successfully recommenced in the second half of the calendar year and will include prospecting, rock sampling, and geological mapping, using the excellent data that was delivered from the property-scale LiDAR and orthophoto survey. The objective of the surface program at Bohier (Figure 3) is to evaluate the dolent mafic volcanics, the same geological package that hosts Benz Mining’s Ruby Hill pegmatite, and the adjacent Bohier metasedimentary rocks. The geological mapping and rock sampling will be used to delineate drill targets and commence an immediate drilling program to follow up observations and data from the field. Figure 3: Geological map overlaid with results from Lidar survey analysis at Bohier Project 4 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Wapatik Project: Wapatik is a 25-kilometre-long project comprising a single block of 220 claims (115 km2) in an area with excellent infrastructure, including road access and power lines. It covers a largely underexplored part of the Lower Eastmain greenstone belt of Archean age. Phase 2 Diamond Drilling: In the first half of the Financial Year, the Company completed the phase 2 drilling program at the Wapatik Project. The results demonstrated that Wapatik is in nickel-copper mineralised system hosted within the ultramafic intrusion, justifying the additional drilling program the Company undertook. Phase 2 drilling returned the following results: [released 20/10/2022] WAP22-009: 1.16% Ni, 3.85% Cu over 0.8 m (from 152.0 m to 152.8 m) WAP22-007: 0.29% Ni, 0.25% Cu over 18.0 m (from 129.0 m to 147 WAP22-010: 0.27% Ni, 0.41% Cu over 15.75 m (from 60.0 m to 75.75 m) WAP22-008: 0.33% Ni, 0.35% Cu over 1.1 m (from 116.9 m to 118.0 m), and 0.34% Ni, 0.43% Cu over 1.71 m (from 129.54 m to 131.25 m) Phase 3 Diamond Drilling: During the Financial Year, the Company commenced and completed a drilling program (1,100 metres, 5 holes) to further evaluate the nickel-copper potential of the ultramafic body discovered in 2021 on the Property (see press releases of October 3 and October 19, 2022). Phase 3 drilling returned the following encouraging results: [released 26/04/2023] WAP22-013: 0.15% Ni, 0.66% Cu, 0.012% Co, 7.18 g/t Ag over 3.3 m (from 72.0 m to 75.3 m) WAP22-014: 0.20% Ni, 0.13% Cu, 0.017% Co, 0.78 g/t Ag over 21.5m (from 125.5m -147.0 m) o including 0.40 % Ni, 0.47% Cu, 0.025% Co, 2,46 g/t Ag over 2.0m o 0.52% Ni, 0.70% Cu, 0.020% Co, 3.27 g/t Ag over 8.0 m (from 169.0 m to 177.0 m) o including 1.34% Ni, 1.21% Cu, 0.050% Co, 4.76 g/t Ag over 1.1 m WAP22-015: 0.22% Ni, 0.20% Cu, 0.018% Co, 0.97 g/t Ag over 7.5 m (from 47.0 m to 54.5 m) Nickel-copper mineralisation, encountered in 12 of the 15 holes, was delineated over a 750-metre strike length. The system remains entirely open at depth and on strike, and consists of two main horizons: a basal horizon along or close to the contact with metasediments or paragneiss and a middle horizon within the ultramafic intrusion. Figure 4: Completed and planned holes from phase 1-3 drilling programs Source: Azimut Exploration Second Nickel-Copper-Bearing Intrusion at Wapatik A focused prospecting program was completed in the Autumn/Fall 2022 at Wapatik which led to the discovery of a second new nickel-copper-bearing surface discovery 2 kilometers north of where the Company has been actively drilling. This field result is encouraging, further demonstrating the nickel-copper potential of the area, at a larger scale in the James Bay region. Follow-up on this second intrusion will consist of an electromagnetic survey to detect the presence of conductors that could be related to massive sulphides. Maiden Lithium Prospection Program Technical committee meetings between Mont Royal and Azimut Exploration discussed and approved a program to commence lithium exploration at the Wapatik Project. The Wapatik Project overlays several pegmatite dykes visible from the air in a geological environment. The project is situated 18 km north of the Allkem’s James Bay Li project (Mineral Resource Estimate of 40.3Mt at 1.4% Li2O and Ore Reserve of 37.2Mt at 1.3% Li2O.; ref. Allkem Website). 5 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Corporate: Focus Graphite Inc. Second Milestone Payment During the Financial Year Mont Royal announced that it had completed the second milestone payment to Focus Graphite Inc. Northern Lights Minerals Pty Ltd (“NLM”) holds rights to acquire a package of the Acquisition Assets pursuant to an existing agreement (Focus Agreement) in place with Focus Graphite Inc. (TSXV:FMS) (Focus Assets). Operating and Financial Risks The Group’s activities have inherent risk and the Board is unable to provide certainty of the expected results of activities, or that any or all of the likely activities will be achieved. The material business risks faced by the Group that could influence the Group’s future prospects, and how the Group manages these risks, are detailed below: Operational risks The Company may be affected by various operational factors. In the event that any of these potential risks eventuate, the Company’s operational and financial performance may be adversely affected. No assurances can be given that the Company will achieve commercial viability through the successful exploration and/or mining of its tenement interests. Until the Company is able to realise value from its projects, it is likely to incur ongoing operating losses. The tenements are at various stages of exploration, and potential investors should understand that mineral exploration and development are speculative and high-risk undertakings that may be impeded by circumstances and factors beyond the control of the Company. There can be no assurance that exploration of the Tenements, or any other exploration properties that may be acquired in the future, will result in the discovery of an economic mineral resource. Even if an apparently viable deposit is identified, there is no guarantee that it can be economically exploited. There is no assurance that exploration or project studies by the Company will result in the definition of an economically viable mineral deposit. In the event the Company successfully delineates economic deposits on any Tenement, it will need to apply for a mining lease to undertake development and mining on the relevant Tenement. There is no guarantee that the Company will be granted a mining lease if one is applied for and if a mining lease is granted, it will also be subject to conditions which must be met. Further capital requirements The Company’s projects may require additional funding in order to progress activities. There can be no assurance that additional capital or other types of financing will be available if needed to further exploration or possible development activities and operations or that, if available, the terms of such financing will be favourable to the Company. The Company’s activities are subject to Government regulations and approvals The Company is subject to certain Government regulations and approvals. Any material adverse change in government policies or legislation in Quebec, Canada that affect mining, processing, development and mineral exploration activities, export activities, income tax laws, royalty regulations, government subsidiaries and environmental issues may affect the viability and profitability of any planned exploration or possible development of the Company’s portfolio of projects. Global conditions General economic conditions, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s exploration activities, as well as on its ability to fund those activities. General economic conditions, laws relating to taxation, new legislation, trade barriers, movements in interest and inflation rates, currency exchange controls and rates, national and international political circumstances (including outbreaks in international hostilities, wars, terrorist acts, sabotage, subversive activities, security operations, labour unrest, civil disorder, and states of emergency), natural disasters (including fires, earthquakes and floods), and quarantine restrictions, epidemics and pandemics, may have an adverse effect on the Company’s operations and financial performance, including the Company’s exploration, as well as on its ability to fund those activities. General economic conditions may also affect the value of the Company and its market valuation regardless of its actual performance. Significant Changes in the State of Affairs There were no significant changes in the consolidated group’s state of affairs occurred during the year. Events Subsequent to the End of the Reporting Period On 15 August 2023, the Company completed a capital raising of $2.209 million (before costs) by the issue of 13,812,267 ordinary shares at $0.16 each. Under the terms of the lead broker mandate, the Company agreed to issue 3,000,000 options exercisable at $0.35 expiring 3 years from date of issue to the lead manager, subject to shareholder approval. 6 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the entity's operations, the results of those operations, or the entity's state of affairs in future financial years. Likely Developments and Expected Results of Operations Likely developments in the operations of the consolidated group and the expected results of those operations in future years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the consolidated group. Environmental Regulation The consolidated group is subject to environmental regulations under the laws of the countries in which it undertakes exploration activities and ensures that it complies with all applicable regulations when carrying out exploration works. Dividends No dividends were paid or declared since the start of the year. Options The Company has the following options on issue as at the date of the Directors’ Report. Expiry Date 29 October 2024 25 November 2024 25 March 2026 Total Exercise price $0.35 $0.35 $0.30 Number of Securities 2023 4,750,000 5,000,000 1,500,000 11,250,000 2022 4,750,000 5,000,000 9,750,000 Option holders do not have any right, by virtue of the options, to participate in any share issue of the Company or any related body corporate. Directors’ Interests in Shares and Options of the Company As at the date of this report, the directors’ interest in shares and options of the Company were: Number of Ordinary Shares Gary Lawler Peter Ruse Ronnie Beevor Number of Options over Ordinary Shares 2,000,000 2,050,340 500,000 1,500,000 1,500,000 1,500,000 Corporate Governance In recognising the need for the highest standards of corporate behaviour and accountability, the directors of the Company support and have substantially adhered to the best practice recommendations set by the ASX Corporate Governance Council. The Company’s corporate governance statement is contained in the annual report. Indemnification of Officers The Company has, during or since the end of the year, in respect of any person who is or has been an officer of the Company or a related body corporate: indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings; or paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend legal proceedings. Premiums paid are not disclosed because disclosure is prohibited by the insurance contract. Indemnification of Auditors To the extent permitted by law, the parent entity has agreed to indemnify the auditors, BDO Audit (WA) Pty Ltd, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify BDO Audit (WA) Pty Ltd during or since year-end. 7 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Proceedings on Behalf of Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 12. Non-Audit Services There were no fees paid or payable to BDO Audit (WA) Pty Ltd for non-audit services during the year ended 30 June 2023. Fees paid or payable to BDO Canada LLP, which is a network firm of BDO Audit (WA) Pty Ltd for non-audit services during the year ended 30 June 2023 was $61,135. 8 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) This report outlines the remuneration arrangements in place for directors and executives of the Company. Remuneration Policy The remuneration policy of the Company has been designed in order to ensure that the Company is able to attract and retain executives and Directors who will create value for shareholders, having regard to the amount considered to be commensurate for an entity of the Company’s size and level of activity as well as the relevant directors’ time, commitment and responsibility. The Board’s policy for determining the nature and amount of remuneration for board members and other senior executives of the Group is as follows: The remuneration policy setting out the terms and conditions of any executive director was developed by the Board. All senior executives will be subject to an annual performance evaluation against an established set of performance targets which are aligned to overall business goals and the Company’s requirement of the position. Performance pay components of executives’ packages are dependent on the outcome of the evaluation. Remuneration packages for executive directors and other senior executives include an appropriate balance of fixed remuneration and performance-based remuneration. Fixed remuneration takes into account the Company’s obligations at law and labour market conditions, and is relative to the scale of the Company’s business. Non-executive directors are remunerated by way of cash fees, superannuation contributions and non-cash benefits in lieu of fees (such as salary sacrifice into superannuation or equity). Levels of fixed remuneration for non-executive directors reflect the time commitment and responsibilities of the role. Remuneration and other terms of employment for the executive director and other senior executives have been formalised in service agreements as follows: The Company has entered into an executive service agreement with executive director, Mr Peter Ruse. The terms of the service agreement are set out as follows: - Commencement date: 26 March 2018 - Term: no fixed - Fixed remuneration: $150,000 per annum - Termination for cause: no notice period - Termination without cause: three month notice period The Company has entered into an agreement with non-executive chairman, Mr Gary Lawler. The terms of the agreement are set out as follows: - Commencement date: 15 October 2018 - Term: no fixed - Fixed remuneration: $75,000 per annum plus superannuation - Termination for cause: no notice period - Termination without cause: no notice period The Company has entered into an agreement with non-executive director, Mr Ronnie Beevor. The terms of the agreement are set out as follows: - Commencement date: 25 March 2023 - Term: no fixed - Fixed remuneration: $55,000 per annum plus superannuation - Termination for cause: no notice period - Termination without cause: no notice period Remuneration of non-executive directors is determined by the Board within the maximum amount approved by shareholders from time to time which current stands at $400,000 per annum. The Board undertakes an annual review of its performance and may exercise discretion in relation to approving incentives, bonuses and options. All remuneration paid to directors and executives is valued at the cost to the Company and expensed. 9 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) Performance-based remuneration The Company currently has options on issue to Directors set out elsewhere in this report. Key management personnel compensation Details of the nature and amount of emolument paid for each director and executive of Mont Royal Resources Limited for the year ended 30 June 2023 and 2022 are set out below: Primary Benefits Post Employment Share Other Based Benefits TOTAL Options Based Payments Salary Cash Non- Super- Retirement & Fees Bonus Monetary annuation Benefits $ $ $ $ $ G Lawler 75,000 - - 7,875 - - - 82,875 P Ruse 150,000 - - - - - - 150,000 - R Beevor1 14,805 - - 1,555 - 46,843 - 63,202 74 M O’Keeffe2 44,463 - - 1,485 - - - 45,947 - Total 284,268 - - 10,914 - 46,843 - 342,025 14 G Lawler 66,250 - - 6,625 - 342,234 - 415,109 82 M O’Keeffe 50,189 - - 5,019 - 342,234 - 397,443 86 P Ruse 132,500 - - - - 342,234 - 474,734 72 Total 248,939 1 Appointed 25 March 2023 2 Resigned 25 March 2023 - - 11,644 - 1,026,702 - 1,287,286 80 Directors Options $ $ $ % 2023 - 2022 Remuneration Options During the year ended 30 June 2023, 1,500,000 options were issued as part of director remuneration (30 June 2022: 4,500,000). During the year ended 30 June 2023 no remuneration options were forfeited, expired or exercised by the directors. During the year ended 30 June 2022, 3,700,000 remuneration options were exercised by the directors and a further 300,000 remuneration options expired. Shareholdings by Directors 2023 G Lawler P Ruse R Beevor M O’Keeffe Total 1 2 Balance 01/07/22 or on appointment (No. of Shares) 2,000,000 2,050,340 100,0001 5,150,000 9,300,340 Received Remuneration No. of Options Exercised (No. of Shares) - Appointed 25 March 2023 Resigned 25 March 2023 10 - Net Other Change Balance 30/06/23 (No. of Shares) (No. of Shares) 400,000 (5,150,000)2 (4,750,000) 2,000,000 2,050,340 500,000 4,550,340 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) Options Holdings by Directors 2023 Balance 01/07/22 Granted as Remuneration No. of Options No. of Options (No. Options) (No. Options) Acquired Exercised - - G Lawler P Ruse R Beevor M O’Keeffe 1,500,000 1,500,000 1,500,000 1,500,0001 - Net Change Other (No. Options) Balance 30/06/23 Balance 30/06/23 (No. Options) (No. Options) (Vested and exercisable) (1,500,000) 1,500,000 1,500,000 1,500,000 - 1,500,000 1,500,000 500,000 - 4,500,000 3,500,000 2 4,500,000 1,500,000 Total Appointed 25 March 2023. Granted on appointment. 2 Resigned 25 March 2023 - - (1,500,000) 1 The options issued to R Beevor during the year vest in three tranches: - 500,000 options on grant; - 500,000 options after 12 months of service; - 500,000 options after 24 months of service; The following table lists the inputs to the models used for the valuation of the options issued during the year: Director Number of options Fair value at measurement date (cents) Dividend yield (%) Expected volatility (%) Risk free rate (%) Expected life of option Share price (cents) Exercise price (cents) Model used Value of options 1,500,000 $0.067 Nil 90% 2.21% 3 $0.155 $0.30 Black – Scholes $100,541 End of remuneration report (audited). Signed in accordance with a resolution of the Directors. On behalf of the Directors Peter Ruse Executive Director 25 September 2023 11 Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth WA 6000 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY JACKSON WHEELER TO THE DIRECTORS OF MONT ROYAL RESOURCES LIMITED As lead auditor of Mont Royal Resources Limited for the year ended 30 June 2023, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Mont Royal Resources Limited and the entities it controlled during the period. Jackson Wheeler Director BDO Audit (WA) Pty Ltd Perth 25 September 2023 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023 Note Interest revenue Expenses Corporate Share-based payments expense Foreign exchange gain/(loss) 3 13 Loss before tax Income tax expense Loss for the year 4 Other comprehensive income Exchange difference on translation of foreign controlled entities Total comprehensive loss for the year attributabl