Announcement PDF MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES ACN: 625 237 658 Annual Financial Report For The Year Ended 30 June 2024 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 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 28 Independent Auditor’s Report 29 ASX Additional Information 33 Corporate Governance Statement 36 Consolidated Entity Disclosure Statement 37 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 2024. 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: Champion Iron Limited, Felix Gold Limited, Lucapa Diamond Company Limited. Former directorships (last 3 years): Bannerman Energy Limited. 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 2024 attended by each director: Number Number Eligible to Attend Attended Gary Lawler 6 6 Peter Ruse 6 6 Ronnie Beevor 6 6 Principal Activities The principal activity of the consolidated group during the year was the exploration on Northern Lights Minerals projects in the Upper Eastmain Greenstone Belt in Quebec, Canada and the farm-in to and exploration of the Wapatik Gold-Copper Project. Review of Operations The consolidated loss of the consolidated group for the year amounted to $2,625,450 (2023: $820,331). Mont Royal Resources (ASX: MRZ) is building a significant position in an under-explored 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: Location of MRZ’s Northern Lights Projects in Quebec, Canada. Northern Lights Project The Northern Lights Project is situated in the Upper Eastmain Greenstone belt, James Bay Region, Quebec. The Projects include the Northern Lights Assets (75%-owned), Lèran Project (Option to own 75%), Dios Assets (JV to earn-in 70%) across a total land package of 536km2. The Upper Eastmain district received a significant boost during the reporting period from Winsome Resources’ (ASX: WR1) option to acquire the Renard Mine and Infrastructure, located ~30km north of MRZ’s Bohier and surrounding Northern Lights Projects, connected by an all-weather road. Winsome has indicated it will use the option period to confirm the feasibility of repurposing the 2.2Mtpa plant at Renard as a central lithium processing facility, with positive strategic implications for the region (refer to WR1’s ASX announcement of 3 April 2024). As a result of its successful exploration programs, Mont Royal has established three distinct target areas across the Northern Lights tenements: • Bohier LCT-bearing pegmatite outcrops and 500-metre exploration target; • Léran Wahemen Boulder field high-grade discoveries; and • Léran Central Boulder discovery and 8km tantalum zone. 3 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Bohier Field work undertaken at the Bohier Project during the reporting period focused on the Bohier Pegmatites – two outcrops of approximately 8m length which were discovered by Mont Royal during the Company’s first phase of lithium prospecting in July/August 2023. The targeted pegmatites show a similar chemistry (potassium and rubidium content) to known lithium-rich pegmatites in the region, providing strong evidence that these targets may represent a depleted zone within an otherwise lithium-rich intrusion, as is commonly seen in this type of deposit. Work programs comprised a gravimetry survey undertaken in parallel with a trenching and channel sampling program. 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 define the thickness and lateral extents of the pegmatite and secondly to identify the source of any preliminary gravimetric anomalies identified. The trenching and channel sampling programs returned assays including 6.05m @ 1.78% Li2O, 7m @ 1.71% Li2O and 1m @ 1.97% Li2O. The interpretation of gravimetric data, which was greatly enhanced by LiDAR data acquired in June 2023, 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. To follow up these targets, a maiden helicopter-supported diamond drilling program commenced at the Bohier Project in mid-July 2024. Approximately 1,000m of diamond drilling is planned, focusing on known lithium-bearing pegmatites and gravimetric anomalies in the south of the property area (see Figure 2). Figure 2: Planned drill collar locations, Bohier Project Léran Grab sampling at the Léran Wahemen Boulder Field during the reporting period returned positive results, with initial assays of up to 2.41% Li2O returned approximately 1km north-east of a historical lithium occurrence Follow-up exploration comprised additional grab sampling, LiDAR and a gravimetric survey to assist in ranking key targets and prioritising future exploration efforts. Additional surface sampling was undertaken to obtain a greater number of representative results from larger samples. Two samples returned outstanding lithium grades of 3.51% and 4.02% Li2O, confirming the high grades encountered in this area. At the Léran Central Boulder Discovery, 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 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. 4 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT To follow-up these discoveries, surface sampling was undertaken over the central and northern sections of the Léran property including several wide areas of potentially Li-bearing pegmatites (marked by the red circles in Figure 3) nearby known occurrences. These programs were designed to expand the Company’s inventory of lithium targets at Léran for future drilling. Figure 3: Léran Project showing key targets for the current fieldwork program Wapatik Project Wapatik Project The Wapatik Project overlays several pegmatite dykes visible from the air in a geological environment. The project is situated 18km 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). During the reporting period, Mont Royal and Azimut Exploration completed a lithium exploration program at Wapatik, with till sampling used to target priority areas with Ta and Cs 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. In response to the challenging market conditions in the lithium and battery metals sector that have impacted all junior exploration companies since the start of 2024, the Board of Mont Royal paused exploration expenditure at the Wapatik Project in April and will re-evaluate future exploration programs throughout CY 2024. Corporate Mont Royal successfully completed a capital raising in August 2023 of A$2,209,963 (before costs) through the issue of 13,812,267 shares at $0.16 each to institutional and sophisticated investors to advance both projects in the James Bay region of Quebec, Canada. The Company completed the third and final milestone payment to Focus Graphite Inc. (TSXV: FMS) to acquire the Léran Project on 4 December 2023. The consideration comprised C$400,000 in cash plus a share consideration of 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. In addition, the Company received C$879k (A$981k) in tax rebates from the Quebec Government, of which C$548k (A$601k) was subject to finalization by the tax authorities at 30 June 2024. The balance of the tax rebate (C$101k) is expected to be received in the coming months. 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: 5 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT 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 No matter or circumstance has arisen since 30 June 2024 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. To the best of the directors' knowledge and belief, all responsibilities under the regulations have been discharged and there have been no breaches of any environmental regulation. 6 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT 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 Exercise price 29 October 2024 25 November 2024 25 March 2026 10 November 2026 Total $0.35 $0.35 $0.30 $0.35 Number of Securities 2024 4,750,000 5,000,000 1,500,000 3,000,000 14,250,000 2023 4,750,000 5,000,000 1,500,000 11,250,000 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 2,437,500 2,237,840 937,500 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 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 Pty Ltd during or since year-end. 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. 7 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Non-Audit Services There were no fees paid or payable to BDO Audit Pty Ltd for non-audit services during the year ended 30 June 2024. Fees paid or payable to BDO Canada LLP, which is a network firm of BDO Audit Pty Ltd for non-audit services during the year ended 30 June 2024 was $47,911. The directors are satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the services disclosed below did not compromise the external auditors’ independence for the following reasons: all non-audit services are reviewed and approved by the Board of Directors prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and the nature of the services provided does not compromise the general principles relating to auditor independence in accordance with APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set by the Accounting Professional and Ethical Standards Board. 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 Key management personnel covered in this report: Gary Lawler Chairman Peter Ruse Executive Director Ronnie Beevor Non-Executive Director 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 $400,000 per annum. The Board undertakes an annual review of its performance and may exercise discretion in relation to approving incentives, bonuses and options. All remuneration paid to directors and executives is valued at the cost to the Company and expensed. 9 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) Performance-based remuneration The Company currently has not granted any performance-based remuneration during the year. The table below summarises the earnings of the Group and other factors that are considered to affect shareholder wealth for the last 5 years. Loss after income tax attributable to shareholders ($) Share price at year end ($) Total dividends declared (cents per share) Returns on capital (cents per share) Basic earnings/(loss) per share (cents) 2024 (2,625,450) 2023 (820,331) 2022 (2,052,159) 2021 (710,190) 2020 (1,232,873) 0.072 - 0.115 - 0.34 - 0.255 - 0.155 - (3.14) (1.20) (3.89) (1.86) (3.16) 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 2024 and 2023 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 - - 8,250 - - - 83,250 P Ruse 150,000 - - - - - - 150,000 - R Beevor 55,000 - - 6,050 - 41,411 - 102,461 40 Total 280,000 - - 14,300 - 41,411 - 335,711 12 G Lawler 75,000 - - 7,875 - - - 82,875 - P Ruse 150,000 - - - - - - 150,000 - R Beevor1 14,805 - - 1,555 - 46,843 - 63,203 74 M O’Keeffe2 44,463 - - 1,484 - - - 45,947 - Total 284,268 1 Appointed 25 March 2023 2 Resigned 25 March 2023 - - 10,914 - 46,843 - 342,025 14 Directors Options $ $ $ % 2024 - 2023 Remuneration Options During the year ended 30 June 2024, no options were issued as part of director remuneration (30 June 2023: 1,500,000). During the year ended 30 June 2024 no remuneration options were forfeited, expired or exercised by the directors. Shareholdings by Directors 2024 Balance 01/07/23 (No. of Shares) G Lawler P Ruse R Beevor Total 2,000,000 2,050,340 500,000 4,550,340 Received Remuneration (No. of Shares) - 10 No. of Options Exercised - Net Other Change (No. of Shares) Balance 30/06/24 (No. of Shares) 437,500 187,500 437,500 1,062,500 2,437,500 2,237,840 937,500 5,612,840 MONT ROYAL RESOURCES LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) Options Holdings by Directors 2024 Balance 01/07/23 Granted as Remuneration No. of Options No. of Options (No. Options) (No. Options) Acquired Exercised - - G Lawler P Ruse R Beevor Total 1,500,000 1,500,000 1,500,000 4,500,000 - Net Change Other (No. Options) - Balance 30/06/24 Balance 30/06/24 (No. Options) (No. Options) (Vested and exercisable) 1,500,000 1,500,000 1,500,000 4,500,000 1,500,000 1,500,000 1,000,000 4,000,000 The Company received more than 90% of “yes” votes on its remuneration report for the 2023 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. End of remuneration report (audited). Signed in accordance with a resolution of the Directors. On behalf of the Directors Peter Ruse Executive Director 4 September 2024 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 2024, 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 Pty Ltd Perth 4 September 2024 12 BDO Audit Pty Ltd ABN 33 134 022 870 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 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. Liabili