Announcement PDF MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN: 625 237 658 Financial Report For the Half Year Ended 31 December 2023 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONTENTS Page Directors' Report 2 Auditor's Independence Declaration 5 Consolidated Statement of Profit or Loss and Other Comprehensive Income 6 Consolidated Statement of Financial Position 7 Consolidated Statement of Changes in Equity 8 Consolidated Statement of Cash Flows 9 Notes to the Consolidated Financial Statements 10 Directors' Declaration 15 Independent Auditor’s Review Report 16 1 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Your directors present their report on the consolidated group for the half year ended 31 December 2023. Directors The names, qualifications and experience of the directors in office at any time during, or since the end of, the period are as follows. Directors have been in office for the entire period unless otherwise stated. Gary Lawler (Non-Executive Chairman) Peter Ruse (Executive Director) Ronnie Beevor (Non-Executive Director) Principal Activities The principal activity of the consolidated group during the period was the farm-in and exploration of the Wapatik GoldCopper Project and the exploration on the Northern Lights Minerals projects in the Upper Eastmain Greenstone Belt in Quebec, Canada. Review of Operations The consolidated loss of the consolidated group for the financial period after providing for income tax amounted to $465,361 (2022: $405,769). Mont Royal Resources (ASX: MRZ) has built a significant position in an underexplored greenstone belt in the James Bay area of Quebec, Canada, with the Company’s Northern Lights and Wapatik Lithium Projects, both strategically located in the lower and upper regions of the belt (Figure 1). The projects are prospective for lithium, precious (gold, silver) and base metal mineralisation (copper, nickel). Figure 1: Project Locations Northern Lights Projects As a result of successful exploration programs, Mont Royal has established three distinct target areas across the Company’s Northern Lights tenements in Quebec: • The Bohier LCT-bearing pegmatite outcrops, including a 500-metre long exploration target; • High-grade discoveries within the Eastmain-Léran Wahemen Boulder field; and • The Eastmain-Léran Central Boulder discovery and 8km tantalum zone. The Bohier LCT-bearing pegmatite outcrops were identified through the Company’s first lithium prospecting phase in July/August 2023. Follow-up field work comprised a gravimetry survey undertaken in parallel with trenching and channel sampling at the Bohier Pegmatite. The gravimetry survey focused on the western end of the greenstone units, extending from the property’s west end to the north-east of the pegmatite outcrops. The trenching and channel sampling program was designed firstly to 2 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT define the thickness and lateral extents of the pegmatite and secondly to identify the source of any preliminary gravimetric anomalies identified. Gravimetric data identified a series of gravimetric lows (which is significant as pegmatites are less dense than surrounding greenstones). One of these gravimetric lows represents the direct continuation of the known pegmatite exposure at surface and extends 500m to the west. This anomaly extends over a small pegmatite outcrop with traces of spodumene (assays from surface sampling returned values of 75ppm Li), which indicates that the gravimetric low is related to the spodumene pegmatite – making it a priority focus for exploration. Five other anomalies were interpreted with lengths varying from 200m to 400m. Figure 2 – Gravimetric survey results showing the 500m target zone and the three known pegmaties. Source: IOS Geoscientique. High-grade results from the trenching and channel sampling program included 6.05m @ 1.78% Li2O, 7m @ 1.71% Li2O and 1m @ 1.97% Li2O. Planning is well advanced for an initial drilling program at Bohier commencing in H1 2024. At the Eastmain Léran Wahemen Boulder field, grab sampling at the Wahemen Boulder field returned results including 2.41%, 3.51% and 4.02% Li2O in an area approximately 1km northeast of a historical lithium occurrence (press release dated 4th September 2023). Observations from field work have confirmed the pegmatite boulders, up to 4m long, contain spodumene crystals up to 50cm long and beryl. The other boulders from the field are composed of local greenstones. The boulder field location and boulders’ composition strongly suggest that the source of these blocks is located northeast (i.e., up-ice), in a greenstone unit and no further than 1.2km away from where the contact between greenstone and granite has been found. Geological mapping and sampling along a series of closely spaced NW-SE traverses has since been completed. A review of IOS Services Géoscientfiques’ ARTGoldTM data from a 2017 till survey highlighted a few tantalum oxide dispersion trains. This new Tantalum-rich zone in the central section of the Eastmain-Léran Property was the focus of a prospecting program. A spodumene-bearing boulder was identified which returned an assay of 1.12% Li2O, opening up a new prospective area approximately 8km from the Wahemen Boulder field. 3 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT A 90km2 LiDAR survey was flown across the Tantalum-rich zones and boulder field area at the Eastmain Léran Project. LiDAR data will be interpreted in Q1 2024 to support planning for the 2024 mapping/prospecting season. Given the scarcity of outcrops and signs of a low gravimetric signature near the Wahemen Boulder field, an additional gravimetric survey is planned during the winter to further identify target(s) to be drilled as a secondary program in addition to the advanced exploration target at the Bohier Project. Wapatik Project During the reporting period, Mont Royal and its joint venture partner, Azimut Exploration, completed a lithium exploration program at the Wapatik Project. The Wapatik Project encompasses several pegmatite dykes visible from the air. The project is situated 18km north of the Allkem’s James Bay Lithium Project (Mineral Resource Estimate of 40.3Mt at 1.4% Li2O and Ore Reserve of 37.2Mt at 1.3% Li2O.; ref. Allkem Website). Till sampling was used to target priority areas with Tantalum and Caesium analysis. The western third of the property appears prospective, as well as several areas in its centre. Targeting will be further advanced using in-house remote sensing processing. Corporate Eastmain-Leran Project, Third Milestone Payment and completion of Project acquisition During the reporting period, Mont Royal completed the third and final milestone payment to Focus Graphite Inc. (TSXV: FMS) to acquire the Eastmain Léran Project in Quebec’s Upper Eastmain Greenstone Belt. Completion of the transaction occurred on 4 December 2023. The Board of Mont Royal satisfied the 4 December 2023 payment obligation on the following basis: • Cash Consideration: C$400,000 • Share consideration: 2,734,858 Fully Paid Ordinary shares in MRZ The share consideration, which represents C$400,000, was calculated on the basis of a deemed issue price $0.163 (10-day average closing price of MRZ) and an exchange rate AUD/CAD: 0.8973. Significant Changes in the State of Affairs There were no significant changes in the consolidated group’s state of affairs during the financial period. Events Subsequent to the End of the Reporting Period No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the consolidated group, the results of those operations, or the state of affairs of the consolidated group in future financial periods. Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included within this financial report. Signed in accordance with a resolution of the Directors. On behalf of the Directors Peter Ruse Executive Director 28 February 2024 4 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 for the review of Mont Royal Resources Limited for the half-year ended 31 December 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 review; and 2. No contraventions of any applicable code of professional conduct in relation to the review. 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 28 February 2024 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 HALF-YEAR ENDED 31 DECEMBER 2023 Note 31 December 2023 $ 31 December 2022 $ 16,583 9,528 (456,660) (25,284) (415,297) - Loss before tax Income tax expense Loss for the period (465,361) (465,361) (405,769) (405,769) Other comprehensive loss Items which may be re-classified to profit or loss Exchange differences on translation of foreign operations (220,364) (234,054) (685,725) (639,823) (457,364) (7,997) (465,361) (405,769) (405,769) (661,515) (24,210) (685,725) (619,463) (20,360) (639,823) Cents (0.58) Cents (0.60) Interest income Corporate Share-based payments expense 8 Total comprehensive loss for the period attributable to the members Loss for the period attributable to: Members of the parent entity Non-controlling interests Total comprehensive loss for the period attributable to: Members of the parent entity Non-controlling interests Basic and diluted loss per share (cents per share) 2 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. 6 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023 Note 31 December 2023 $ 30 June 2023 $ ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Prepayments TOTAL CURRENT ASSETS 3 4 1,888,782 1,829,111 17,590 3,735,483 2,259,958 1,238,134 28,431 3,526,523 NON-CURRENT ASSETS Exploration and evaluation expenditure TOTAL NON-CURRENT ASSETS 5 7,486,801 7,486,801 6,076,557 6,076,557 11,222,284 9,603,080 LIABILITIES CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES 397,257 397,257 611,894 611,894 TOTAL LIABILITIES 397,257 611,894 10,825,027 8,991,186 13,562,268 2,467,918 (5,779,929) 10,250,257 574,770 10,825,027 11,361,378 2,353,411 (5,322,583) 8,392,206 598,980 8,991,186 TOTAL ASSETS NET ASSETS EQUITY Issued capital Reserves Accumulated losses Total parent entity interest Non-controlling interest TOTAL EQUITY 6 7 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. 7 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2023 Note Consolidated Group Balance at 1 July 2023 Loss for the period Other comprehensive lloss Total comprehensive loss for the period Equity transactions: Issue of shares Capital raising costs Share-based payments Balance at 31 December 2023 Balance at 1 July 2022 Loss for the period Other comprehensive loss Total comprehensive loss for the period Equity transactions: Share-based payments Balance at 31 December 2022 6 6 8 Issued Capital $ Reserves Accumulated Losses $ $ Total $ Non-controlling interest $ Total $ 11,361,378 - 2,353,393 (204,151) (204,151) (5,322,565) (457,364) (457,364) 8,392,206 (457,364) (204,151) (661,515) 598,980 (7,997) (16,213) (24,210) 8,991,186 (465,361) (220,364) (685,725) 2,655,745 (454,855) 13,562,268 318,676 2,467,918 (5,779,929) 2,655,745 (454,855) 318,676 10,250,257 574,770 2,655,745 (454,855) 318,676 10,825,027 11,086,502 - 2,249,487 (213,694) (213,694) (4,508,689) (405,769) (405,769) 8,827,300 (405,769) (213,694) (619,463) 597,922 (20,360) (20,360) 9,425,222 (405,769) (234,054) (639,823) 274,876 11,361,378 2,035,793 (4,914,458) 274,876 8,482,713 577,562 274,876 9,060,275 The above consolidated statement of change in equity should be read in conjunction with the accompanying notes. 8 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2023 CASH FLOWS FROM OPERATING ACTIVITIES Interest received Payments to suppliers and employees Net cash used in operating activities 31 December 2023 31 December 2022 $ $ 16,583 (449,512) (432,929) 9,528 (481,754) (472,226) CASH FLOWS FROM INVESTING ACTIVITIES Government grants and tax incentives Payments for exploration and evaluation expenditure (capitalised) Net cash used in investing activities 17,059 (2,003,807) (1,986,748) 126,903 (1,301,838) (1,174,935) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Payments for share issue costs Net cash from financing activities 2,209,963 (161,462) 2,048,501 - Net increase/(decrease) in cash held (371,176) (1,647,161) Cash and cash equivalents at the beginning of the period 2,259,958 4,386,497 Cash and cash equivalents at the end of the period 1,888,782 2,739,336 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes. 9 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The interim consolidated financial report is a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001 and Accounting Standard AASB 134: Interim Financial Reporting. Compliance with AASB 134 ensures that the financial report and notes also comply with International Financial Reporting Standards IAS 34: Interim Financial Reporting. It is recommended that this consolidated interim financial report be read in conjunction with the annual financial report for the year ended 30 June 2023 and any public announcements made by Mont Royal Resources Limited and its controlled entities during the half-year in accordance with the continuous disclosure requirements arising under the Corporations Act 2001 and ASX Listing Rules. The interim consolidated financial report does not include full disclosures of the type normally included in annual financial reports. The interim consolidated financial report has been prepared on an accruals basis and is based on historical costs, cost is based on the fair value of the consideration given in exchange for assets. (b) Statement of compliance The interim financial statements were authorised for issue on 28 February 2024. The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS). (c) New accounting standards and interpretations The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Standards and Interpretations applicable to 31 December 2023 In the period ended 31 December 2023, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and, therefore, no material change is necessary to Group accounting policies. Accounting standards and interpretations issued but not yet effective Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Group for the reporting period ended 31 December 2023. The Directors have not early adopted any of these new or amended standards or interpretations. The Directors have not yet fully assessed the impact of these new or amended standards (to the extent relevant to the Group) and interpretations. 10 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2. LOSS PER SHARE The following reflects the income and data used in the calculations of basic and diluted earnings/(loss) per share: Loss per share (cents) 2023 $ (0.58) 2022 $ (0.60) Loss used in calculating basic and diluted loss per share 457,364 405,769 Weighted average number of ordinary shares used in calculating basic loss per share: # shares # shares 79,392,402 67,281,023 31 December 2023 $ 30 June 2023 $ 1,888,782 2,259,958 31 December 2023 $ 30 June 2023 $ 1,583,604 242,173 3,335 1,829,111 1,026,606 210,290 1,238 1,238,134 31 December 2023 $ 30 June 2023 $ 3. CASH AND CASH EQUIVALENTS Cash at bank and on hand 4. OTHER RECEIVABLES Tax credit and mining rights receivable GST/QST receivable Other Total 5. EXPLORATION AND EVALUATION EXPENDITURE Balance at the beginning of the period Exploration and evaluation expenditure incurred during the period Canadian exploration tax credit offset during the period Foreign currency translation movement Balance at the end of the period 6,076,557 2,304,122 (598,371) (295,507) 7,486,801 4,350,267 2,600,241 (1,065,745) 191,794 6,076,557 The value of the exploration tenements carried forward is dependent upon: (a) The continuance of the Consolidated Entity’s rights to tenure of the area of interest; (b) The results of future exploration; and The recoupment of costs through successful development and exploitation of the areas of interest or alternatively by their sale. 6. ISSUED CAPITAL (a) Issued Capital 31 December 2023 $ 13,562,268 Fully paid ordinary shares 11 30 June 2023 $ 11,361,378 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 6. ISSUED CAPITAL (continued) (b) Movement in ordinary share capital of the Company: Date Details 1/7/2022 1/12/2022 30/06/2023 Balance at beginning of period Acquisition instalment payment for Focus Graphite Balance at end of period 67,035,951 1,446,717 68,482,668 11,086,502 274,876 11,361,378 1/7/2023 15/8/2023 Balance at beginning of period Placement Cost of capital raising(1) Acquisition instalment payment for Focus Graphite (Note 8(b)) Balance at end of period 68,482,668 13,812,267 2,734,858 11,361,378 2,209,963 (454,854) 445,782 85,029,793 13,562,269 31 December 2023 $ 30 June 2023 2,525,246 2,206,570 (57,328) 146,841 4/12/2023 No. of shares $ (1) Includes value of broker options (Note 8(a)) 7. RESERVES (a) Share based payments and foreign currency translation reserve Share based payments reserve Foreign currency translation reserve $ (b) Nature and purpose of reserves Share based payments reserve The share based payments reserve is the value of equity benefits provided to directors, employees and consultants by the Company as part of their remuneration. Foreign currency translation reserve The foreign currency translation reserve records exchange differences arising on translation of foreign subsidiary accounts. 8. SHARE BASED PAYMENTS (a) Options During the half-year ended 31 December 2023, the Company granted 3,000,000 options exercisable at $0.35 expiring 10 November 2026 to the lead manager as part of a capital raising fee. The following table lists the inputs to the model used for the valuation of the options issued during the half-year. 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 Lead Manager 3,000,000 $0.098 Nil 90% 3.83% 3 $0.20 $0.35 Black – Scholes $293,392 12 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 8. SHARE BASED PAYMENTS (continued) (a) Options During the year ended 30 June 2023, the Company granted 1,500,000 options exercisable at $0.30 expiring 3 years from date of issue. The options 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; (b) Shares On 4 December 2023 the Company issued 2,734,858 fully paid ordinary shares with a fair value of $445,782 (C$400,000) as part consideration towards the C$800,000 final instalment payment for the Focus Assets, with the balance paid in cash. 9. CONTINGENT LIABILITIES, LEASE COMMITMENTS AND CONTINGENT ASSETS As at 31 December 2023 there were no contingent liabilities or contingent assets. (a) Exploration commitments At 31 December 2023, the Group has the following commitments relating to exploration expenditure incurred in prospecting the licensed area of the group’s tenements. 2023 $ Within one year After one year but not more than five years Longer than five years 54,206 158,845 213,051 2022 $ 149,947 112,630 262,577 (b) Earn-in to Wapatik Gold-Copper Project On 22 September 2020, the Company announced that it had entered into a binding JV option agreement (“Agreement”) with Azimut Exploration Inc. ("Azimut") (TSXV: AZM), to earn-in up to 70% of the Wapatik Gold-Copper Project (“Project”). The 70% earn-in is comprised of two earn-in options. The first option is described below. First option: Mont Royal has an exclusive option to earn a 50% interest (the “First Option”): by making cash payments to Azimut aggregating C$80,000; and by funding not less than C$4,000,000 in exploration expenditures on the Project (the “First Option Earn-In Expenditures”), of which the first C$600,000 ("Initial Commitment") constitutes a firm commitment of Mont Royal. Subsequent to the Initial Commitment, Mont Royal has the right not to proceed with the First Option. The First Option is set out below: Minimum First Option Earn-In Expenditures Period Cash Payments At the latest on the first (1st) anniversary of the Effective Date1. C$600,000 C$20,000 At the latest on the second (2nd) anniversary of the Effective Date1. C$800,000 C$20,000 At the latest on the third (3rd) anniversary of the Effective Date2. C$1,200,000 C$20,000 At the latest on the fourth (4th) anniversary of the Effective Date C$1,400,000 C$20,000 Total C$4,000,000 C$80,000 1. These amounts have been incurred as at 31 December 2023. 2. The full amount of the earn-in expenditure has not been incurred as at 31 December 2023 however Azimut has agreed to roll the balance of the expenditure into the fourth year commitment. 13 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 9. CONTINGENT LIABILITIES, LEASE COMMITMENTS AND CONTINGENT ASSETS (continued) (c) Northern Lights Minerals Projects On 1 December 2021, the Company acquired a 75% interest in Northern Lights Minerals Pty Ltd (“Northern Lights”). Northern Lights has the right to acquire certain assets pursuant to the following agreements: (i) Northern Lights is party to an agreement with Dios Exploration Inc (“Dios”) providing Northern Lights the right to acquire a 70% interest in the certain claims (and associated mining information) (“Dios Agreement”) (“Dios Assets”); and (ii) a subsidiary of Northern Lights holds rights to acquire 100% of the rights in assets held by Focus Graphite Inc (“Focus Agreement”) (“Focus Assets”) which was completed on 4 December 2023. Dios Agreement Pursuant to the Dios Agreement, Northern Lights has the option to acquire an interest in 70% of the Dios Assets by making the following further cash payments: • C$50,000 on 1 July 2024; and • C$50,000 on 1 July 2025. In addition, in order to exercise the option, Northern Lights must expend not less than C$1.4m of exploration expenditure over a 5-year period. 10. FINANCIAL RISK MANAGEMENT The Group’s financial instruments consistent mainly of deposits with banks, short-term investments and payables. The carrying amounts of the current receivables, current payables and other liabilities are considered to be a reasonable approximation of their fair value. 11. INVESTMENT IN SUBSIDIARY Interests are held in the following subsidiary companies: Name Mont Royal Exploration Australia Pty Ltd Mont Royal Resources Canada Inc Mont Royal Resources Quebec Inc Northern Lights Minerals Pty Ltd 1256137 BC Ltd Principal Activity Country of Incorporation Mineral Exploration Mineral Exploration Mineral Exploration Mineral Exploration Mineral Exploration Ownership Interest 30 June 2023 Australia 31 December 2023 100% Canada 100% 100% Canada 100% 100% Australia 75% 75% Canada 75% 75% 100% 12. EVENTS AFTER THE REPORTING PERIOD There have been no events subsequent to the financial period end that will affect the results as disclosed in this report. 14 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ DECLARATION In accordance with a resolution of the directors of Mont Royal Resources Limited, the directors of the Company declare that: 1. In the opinion of the directors: (a) the interim financial statements and notes of the Consolidated Group are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Consolidated Group’s financial positions as at 31 December 2023 and of their performance for the half year ended on that date; and (ii) complying with Australian Accounting Standards, the Corporations Regulations 2001, professional reporting requirements and other mandatory requirements; (b) there are reasonable grounds to believe that the Company and the consolidated group will be able to pay its debts as and when they become due and payable. 2. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 303(5) of the Corporations Act 2001 for the half-year ended 31 December 2023. Signed in accordance with a resolution of the board of directors Peter Ruse Executive Director 28 February 2024 15 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 INDEPENDENT AUDITOR’S REVIEW REPORT To the members of Mont Royal Resources Limited Report on the Half-Year Financial Report Conclusion We have reviewed the half-year financial report of Mont Royal Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the halfyear ended on that date, a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including: (i) Giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the half-year ended on that date; and (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Basis for conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report. Responsibility of the directors for the financial report The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Ac