Announcement PDF Mont Royal Resources Limited ABN 12 625 237 658 Annual Report – 30 June 2026 Mont Royal Resources Limited Corporate directory 30 June 2026 1 Directors Cameron Henry Nicholas Holthouse Jeremy Robinson Ronnie Beevor Adam Ritchie Company secretary Joel Ives Registered office and Principal place of business Level 8, 2 Bligh Street Sydney NSW 2000 Share register Automic Registry Services Level 5, 191 St Georges Terrace Perth WA 6000 Auditor BDO Audit Pty Ltd Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth WA 6000 Stock exchange listing Mont Royal Resources Limited shares are listed on the Australian Securities Exchange (ASX code: MRZ) and the TSX Venture Exchange (TSX-V code: MRZL) Website www.montroyalres.com Corporate Governance Statement www.montroyalres.com/corporate/corporate-governance/ Mont Royal Resources Limited Directors' report 30 June 2026 2 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Mont Royal Resources Limited (referred to hereafter as ‘Mont Royal’, the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the eight months ended 30 June 2026. Directors The following persons were directors of Mont Royal Resources Limited during the whole of the financial period and up to the date of this report, unless otherwise stated: Cameron Henry Nicholas Holthouse Jeremy Robinson Ronnie Beevor Adam Ritchie Principal activities During the financial year the principal continuing activities of the consolidated entity consisted of exploration activities at the consolidated entity’s mining tenements predominately situated in Quebec, Canada. Dividends There were no dividends paid, recommended or declared during the current or previous financial period. Review of operations The loss for the consolidated entity after providing for income tax and non-controlling interest amounted to $2,772,620 for the eight months ended 30 June 2026 (12 months ended 31 October 2025: $6,556,423). The 2026 financial year marked a transformational period for Mont Royal Resources, highlighted by the completion of the transaction with Commerce Resources Corp. and the delivery of an updated Preliminary Economic Assessment (PEA) for the Company’s flagship Ashram Rare Earths & Fluorspar Project in Québec, Canada. Together, these milestones have established Mont Royal as the owner of one of North America’s largest monazite-hosted rare earth deposits and provided a clear development framework for Ashram, confirming its potential to become a strategically important long-term supplier of rare earth elements into Western critical minerals supply chains. MERGER WITH COMMERCE RESOURCES CORP. The merger with Canadian-listed Commerce Resources Corp. was formally completed on 22 October 2025, bringing the Ashram Rare Earths and Fluorspar Project into Mont Royal’s portfolio. Following completion of the transaction, Mont Royal successfully re-listed on the Australian Securities Exchange on 5 November 2025. The transaction represented a major repositioning of the Company, providing Mont Royal with ownership of a globally significant rare earth and fluorspar asset in Québec and establishing a platform from which to advance Ashram towards development. ASHRAM RARE EARTHS & FLUORSPAR PROJECT Updated Preliminary Economic Assessment (PEA) In June 2026, Mont Royal delivered an updated Preliminary Economic Assessment (“PEA”) for the Ashram Rare Earths and Fluorspar Project. The PEA was completed by Altris Engineering (“Altris”) in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The updated study incorporated significant optimisation work completed since previous economic studies, including: • revised mining and processing assumptions; • optimisation of transportation and logistics pathways; • incorporation of a proposed hydrometallurgical processing facility in Saguenay, Québec; • updated infrastructure assumptions; and • revised engineering and metallurgical inputs. The PEA outlined a large-scale, long-life development with robust project economics and confirmed Ashram’s potential to become a major long-term supplier of rare earth products into Western and allied critical mineral supply chains. Mont Royal Resources Limited Directors' report 30 June 2026 3 Ashram is one of the largest monazite-hosted rare earth deposits in North America and contains a favourable distribution of high-value magnet rare earth elements, including neodymium and praseodymium (“NdPr”). These elements are critical inputs used in EVs, high-performance permanent magnets, wind turbines, robotics, semi- conductors, aerospace technologies and defence applications. Key outcomes1 of the PEA included: Large-scale production profile: • Average annual production of ~17,466 tonnes of saleable Rare Earth Oxide (REO). • Average annual production of ~4,035 tonnes of Nd2O3 & Pr2O3 (NdPr): o ~100 tonnes of Dy2O3 & Tb2O3 (DyTb) o ~ 230 tonnes of Y2O3 (Y) • An initial mine life of 30 years, supported by a resource base that remains capable of further expansion, with 93% of the resource in the Indicated category. • Base case utilises only 25% of the current global resource, highlighting significant long-term expansion optionality. • Initial nameplate mill throughput of ~1.8Mtpa, supporting a long-life open pit operation with a low strip ratio of 0.4:1. Robust project economics: • Post-tax NPV8% (real) of CAD$2.03B. • Post-tax IRR (real) of 22.0% and post-tax payback of 3.9 years from the commencement of production. • Life of Mine (LOM) revenue of ~CAD$24.6B and a life-of-mine EBITDA margin of ~62.7%. • Initial CAPEX of ~CAD$1.23B, including 30% contingency, with access infrastructure costs assumed under a contracted/shared logistics model and reflected in operating expenditure. • The project is anticipated to benefit from ~CAD$342M of refundable Clean Technology Manufacturing Investment Tax Credits (CTM ITC) incorporated into post-tax cash flows. Competitive cost position: • C1 cash cost of approximately CAD$17.99/kg saleable REO. • AISC of approximately CAD$18.58/kg saleable REO. • Cost profile supported by a low strip ratio, favourable mineralogy, production of a high-grade rare earth concentrate and an integrated hydrometallurgical refining strategy. Strategic project positioning: • Ashram is one of the largest monazite-dominant rare earth deposits in North America. • The Project offers exposure to a high-value magnet rare earth basket led by NdPr with additional Dy and Tb content, and potential future fluorspar value upside. • Integrated development concept incorporates on-site concentration at Ashram and downstream hydrometallurgical refining in Saguenay, Québec. • Located in Québec, one of the world’s leading mining jurisdictions. • Ashram is well positioned to support Western government and industry initiatives aimed at establishing secure critical minerals supply chains outside China. 1 There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. Refer to the cautionary statement in the Company’s ASX announcement dated 9 June 2026 for further details. Mont Royal Resources Limited Directors' report 30 June 2026 4 Additional value upside: • Potential inclusion of a dedicated fluorspar recovery circuit in future studies. • Broader district exploration upside across additional targets within the Eldor carbonatite complex, including satellite targets such as Mallard. • Potential future inclusion of higher-value zones, including the BD Zone, subject to further test work and study. • Downstream and strategic partnership opportunities. • Opportunity to optimise road access costs. A regional shared infrastructure strategy is being evaluated as a means of reducing access road costs through potential collaboration with other mining projects, government agencies, and First Nations. Next steps: • Ongoing metallurgical optimisation, engineering refinement, and workstreams to further de-risk the flowsheet and development pathway. • Advancement of environmental baseline, permitting and stakeholder engagement programs across both the Ashram and Saguenay development footprint. • Continued engagement with strategic groups regarding downstream and partnership opportunities. Full details of the updated Preliminary Economic Assessment were provided in the Company’s ASX Announcement dated 9 June 2026. Fluorspar Metallurgical Testwork In parallel with the rare earth development strategy, Mont Royal continues to assess the significant fluorspar opportunity at Ashram – particularly in light of the rapidly evolving market dynamics for fluorspar. With fluorspar recently named as a critical mineral in Canada, the United States, and Europe, the Company is undertaking metallurgical testwork to assess the potential incorporation of a fluorspar circuit into the next phase of Ashram economic studies. Ashram hosts a globally significant fluorspar endowment, within the current Mineral Resource Estimate representing one of the largest known reported resources on the ASX and TSX.V. The current Mineral Resource includes 73.2 Mt contained CaF2 at 6.6% in Indicated Mineral Resources, and an additional 131.1 Mt CaF2 at 4.0% of Inferred Mineral Resources2,3. Fluorspar grades are relatively consistent throughout the Ashram Deposit with continuous fluorspar mineralization, hosted within the same REE-endowed monazite-mineralized A- and B-Zone geological domains. This co-location provides the opportunity for fluorspar to emerge as a valuable future co-product alongside Ashram’s primary rare earth production, subject to successful metallurgical testwork and inclusion in future economic studies. 2 Ashram Mineral Resource Estimate is reported at a cut-off of CAD 287 Net Metal Return (NMR) per tonne with an effective date of April 4, 2024. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. 3 CaF2 calculated from fluorine assay using factor of 2.055 (F to CaF2). Assumes all fluorine is contained within the mineral fluorite. Mont Royal Resources Limited Directors' report 30 June 2026 5 Figure 1: Select cross-section of fluorspar drill intercepts within the Ashram Deposit block model. Insets show cross-section within the MRE geological domains. Previously completed test work In 2020, Commerce Resources focused on upgrading the fluorspar component of the Ashram Deposit to acid-spar grade (refer to the announcement dated February 28, 2020 – Commerce Resources Corp. (TSX-V: CCE, FSE: D7H)). The test work, which was carried out by Hazen Research, CO, USA, resulted in the successful upgrade of the fluorspar content of the Ashram Deposit to a purity of 97.8% CaF₂, which exceeds the 97% base criteria that is typical of acid-spar grade. This high-grade test result demonstrated the applicability of standard physical separation techniques to upgrade the fluorspar component of the Ashram Deposit from a head grade of ~7.5% CaF₂ to grades exceeding 97% CaF₂, which would be required to achieve an acid-spar grade product. The processing approach utilizes a relatively coarse grind followed by a fluorspar pre-float as an initial upgrade step to isolate a sizeable portion of the fluorspar prior to material entering the primary rare earth element (“REE”) recovery flowsheet. The fluorspar flotation concentrate was then processed by magnetic separation, resulting in the desired CaF₂ grade, while the reject fractions are sent back to the primary flowsheet circuit where the REE component is then recovered along with the bulk of the REEs. High-grade Fluorspar at Mallard During the reporting period, Mont Royal reported significant fluorspar (CaF2) potential contained within previous drilling results at the Mallard Prospect, located approximately 1.4km south-east of the Ashram Deposit. High-grade fluorspar was confirmed within the newly named “Flux Fluorite Zone” at the Mallard Prospect, with previous drilling confirming intercept grades of up to 39.8% CaF2: • 32.4 m @ 26.1% CaF2 and 0.4% Nb2O5 from 203.9m (EC10-033), including: o 5.0 m @ 38.8% CaF2 and 0.3% Nb2O5 • 29.0 m @ 21.7% CaF2 and 0.2% Nb2O5 from 275.0m (EC10-040), including: o 6.6 m @ 39.8% CaF2 and 0.3% Nb2O5 • 14.3 m @ 21.7% CaF2 and 0.3% Nb2O5 from 249.0m (EC10-041 • 13.8 m @ 33.0% CaF2 and 0.3% Nb2O5 from 187.8m (EC08-015) • 20.8 m @ 31.6% CaF2 and 0.3% Nb2O5 from 202.4m (EC08-016) • 24.8 m @ 35.8% CaF2 and 0.4% Nb2O5 from 221.7m (EC24-209) • 9.0 m @ 25.8% CaF2 and 0.4% Nb2O5 from 201.9m (EC24-211) • 10.9 m @ 38.5% CaF2 and 0.2% Nb2O5 from 275.7m (EC24-211) Mont Royal Resources Limited Directors' report 30 June 2026 6 The Mallard Prospect is strategically located near the Ashram Deposit, which already hosts one of the largest Fluorspar deposits globally, supporting potential future development synergies. The fluorspar mineralisation remains open in multiple directions, with the interpreted mineralised zone extending over at least an 80m strike length and 150m vertical extent. Figure 2: Plan view of Ashram REE & Fluorspar Deposit, the nearby niobium Mallard Prospect and Flux Fluorite Zone Naskapi Nation Infrastructure Study During the reporting period, the Naskapi Nation of Kawawachikamach announced the launch of Phase 1 of the Naskapi Nuuhchiimiiu Maaskinuw Project, a Nation-led initiative aimed at evaluating various potential access corridor options and gaining a better understanding of their environmental, cultural, social, and economic implications. According to information made public by the Nation on June 12, the Naskapi Nuuhchiimiiu Maaskinuw Project is a community- led initiative designed to assess potential access corridor options through a process of community engagement and regional collaboration. The Nation’s full announcement is available at: Naskapi Nation Launches the Naskapi Nuuhchiimiiu Maaskinuw Project. Mont Royal welcomes this initiative, which is founded on principles of dialogue, collaboration, knowledge sharing and informed decision-making. The Company recognizes the importance for Indigenous Nations to have access to the information and tools necessary to evaluate opportunities and challenges associated with infrastructure that may affect their territories and communities. As Mont Royal advances the Ashram Rare Earth Project, the Company believes that the responsible development of strategic resources requires ongoing engagement with communities, as well as a strong understanding of the environmental, social, cultural, and economic considerations unique to each territory. In parallel with the initiative being led by the Naskapi Nation, Mont Royal continues its discussions and engagement activities with the Inuit, Naskapi, and Innu communities involved in the development of the Ashram Project and in broader discussions regarding regional infrastructure. Mont Royal Resources Limited Directors' report 30 June 2026 7 These exchanges are intended to foster dialogue, better understand community priorities and concerns, and contribute to the development of long-term relationships built on trust, mutual respect, and collaboration. Mont Royal remains committed to maintaining open and constructive dialogue with Indigenous communities, governments, and other stakeholders as part of its project development activities. The Company notes also that the Naskapi Nation of Kawawachikamach has begun consultation work on the construction of access roads on its territory. An important and positive step forward in the projects infrastructure implementation process. NORTHERN LIGHTS PROJECT Gold Evaluation Program During the reporting period, Mont Royal advanced planning for a helicopter-supported till sampling survey across the Chateaufort Property in Québec, Canada as part of the Summer Exploration Program at its Northern Lights Lithium and Gold Project in Québec, Canada. The survey is designed to assess gold potential through the use of gold-grain dispersion analysis in Quaternary deposits. The project area lies along strike from Benz Mining Corp’s Eastmain Gold Project in the Upper Eastmain Greenstone Belt. The Chateaufort Property is located approximately 300 kilometres north-east of Chibougamau, Québec and is only accessible by helicopter as shown in Figure 3: Location of the Chateaufort Property, James Bay Area.. IOS Géosciences inc. proposed a till sampling survey to assess the potential for gold occurrences through the collection, processing and analysis of till samples, with the sampling grid designed to take account of topography, wetlands and regional ice-flow direction. The program consisted of two sampling lines spaced approximately 1.5 to 2.0 kilometres apart, with samples planned approximately every 250 to 300 metres. Based on available Quaternary geological mapping and satellite imagery, approximately 60 samples are considered sufficient to cover the northern part of the Chateaufort Property as shown in Figure 3. The mandate includes sampling grid design, field logistics, helicopter-supported sample collection, sample processing, gold- grain counting, handheld XRF analysis of the fine fraction, preparation and shipment of fine-fraction material for laboratory analysis and reporting suitable for assessment work requirements. Field work commenced in mid-July 2026. Samples will be transported to Chicoutimi for processing, with preliminary HH-XRF and pebble count data expected in October 2026 and the full report, including gold-grain counts, expected in autumn 2026 following receipt and approval of assay results. Figure 3: Location of the Chateaufort Property, James Bay Area. Mont Royal Resources Limited Directors' report 30 June 2026 8 Figure 4: Location of the targeted till samples on the Chateaufort Property. Background colours are indicative of surficial deposit types. CORPORATE MOU with the Saguenay Port Authority During the reporting period, Mont Royal executed a Non-binding Memorandum of Understanding “MOU”) with the Saguenay Port Authority (SPA), located in Saguenay, Québec, Canada. The MOU establishes a framework for cooperation for Mont Royal’s proposed industrial project, related to the processing and valorisation of rare earth concentrates from the Ashram Project. Under the Agreement, Mont Royal (through its wholly-owned subsidiary Commerce Resources) is considering locating a Hydrometallurgical facility within the Port Saguenay industrial zone, subject to further technical, commercial and regulatory evaluations. The Port of Saguenay has been identified as a key piece of infrastructure with the potential to become a strategic export gateway for critical minerals produced in Northern Québec to global markets. The importance of this corridor, and the role of the Port of Saguenay in facilitating critical minerals exports, was recognised in Canada’s 2025 Federal Budget. The MOU is part of the broader effort to develop a local and integrated value chain in Québec, aimed at maximizing the impact of critical and strategic mineral resources from extraction through processing, while fostering industrial innovation and regional competitiveness. By strengthening logistics partnerships and leveraging strategic infrastructure such as the Port of Saguenay, the initiative contributes to reinforcing Canada’s position in international critical minerals markets, which are essential to the energy transition and clean technologies. SPA owns land in its world-class industrial-port zone that could potentially be suitable for the Ashram Project’s proposed Hydrometallurgical plant, subject to technical, environmental, regulatory, and operational assessments. Under the Agreement, SPA may, subject to availability and approvals, consider making certain port facilities accessible for the potential transportation and handling of Mont Royal’s rare earth concentrate and intermediate rare earth products. The MOU is on a non-exclusive basis and may be terminated by the earlier of either party in writing or on December 31, 2026, if the parties have not yet entered into a formal agreement, unless both Parties express their written consent to postpone such deadline to a later date. Mont Royal Resources Limited Directors' report 30 June 2026 9 Extension of Critical Minerals Infrastructure Fund Conditional Approval Mont Royal’s 100%-owned subsidiary, Commerce Resources, received an extension of the conditional approval first announced on February 6, 2025 for a revised road strategy, with conditional funding of up to a total of C$2,606,977 from Natural Resources Canada’s (NRCan) Critical Minerals Infrastructure Fund (CMIF), to progress access road studies for the Ashram Project. This extended conditional approval remains subject to completion of due diligence and the execution of a formal agreement. Under the proposed grant, Mont Royal (through its wholly-owned subsidiary Commerce Resources) is now progressing a Southern Road Access Study to link the Ashram Project with the town of Schefferville (located 300km to the south). The funding package, pending final due diligence, would assist with advancing engineering, environmental and key stakeholder consultation packages. The revised road access route is a key component of the Company’s new logistics strategy for Ashram and will form an integral part of a new logistics solution that envisages the transportation of a Mixed Rare Earth Concentrate (MREC) produced on site at Ashram by road to the town of Schefferville, where it would be placed on railcars and transported further south to the Port city of Sept-Îles. Transporting concentrate south to Schefferville and then onto Sept-Îles offers significant advantages in reducing both CAPEX and technical risk along with increased operability by avoiding ice-bound port concepts to the north. From Sept-Îles, concentrate can then either be shipped or transported by road to the Port of Saguenay, where Mont Royal has recently entered into an agreement with the Port of Saguenay (see above) and is considering locating a Hydrometallurgical facility within the Port Saguenay industrial zone, subject to further technical, commercial and regulatory studies. Significant changes in the state of affairs The Group resolved to change the year end to 30 June to align to the financial year which had been utilised by Mont Royal Resources prior to the transaction with Commerce Resources Corp. in the previous period. Apart form the above here no other significant changes in the state of affairs of the consolidated entity during the eight months financial period. Matters subsequent to the end of the financial period On 17 August 2026, Mont Royal Resources Limited received CAD $2.2 million Quebec tax credit relating to 2023/2024. Apart from the above no other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. Likely developments and expected results of operations The consolidated entity intends to continue its exploration activities on its existing projects. Environmental regulation The consolidated entity is subject to and is compliant with all aspects of environmental regulation of its exploration and mining activities. The directors are not aware of any environmental law that is not being complied with. Material Business Risks The consolidated entity considered the following to be key material business risks: Additional requirements for capital The Company’s capital requirements depend on numerous factors. The Company may require further financing in order to carry out its exploration programs. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations and scale back its exploration program as the case may be. There is however no guarantee that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to the Company. Risk of failure in exploration, development or production Payment of compensation is ordinarily necessary to acquire participating interests. Also, surveying and exploratory drilling expenses (exploration expenses) become necessary at the time of exploration activities for the purpose of discovering resources. When resources are discovered, it is necessary to further invest in substantial development expenses. Mont Royal Resources Limited Directors' report 30 June 2026 10 There is, however, no guarantee of discovering resources on a scale that makes development and production feasible. The probability of such discoveries is low despite various technological advances in recent years, and even when resources are discovered the scale of the resource does not necessarily make commercial production feasible. For this reason, the Group conservatively recognizes expenses related to exploration investment in our consolidated financial statements. To increase recoverable resources and production, the Group plans to always take an interest in promising properties and plans to continue exploration investment. Although exploration and development (including the acquisition of interests) are necessary to secure the resources essential to the Group’s future sustainable business development, each type of investment involves technological and economic risks, and failed exploration or development could have an adverse effect on the results of the Group’s operations. Environmental The operations and proposed activities of the Company are subject to laws and regulations concerning the environment. As with most exploration projects and mining operations, the Company’s activities are expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. It is the Company’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws. Mining operations have inherent risks and liabilities associated with safety and damage to the environment and the disposal of waste products occurring as a result of mineral exploration and production. The occurrence of any such safety or environmental incident could delay production or increase production costs. Events, such as unpredictable rainfall or bushfires may impact on the Company’s ongoing compliance with environmental legislation, regulations and licenses. Significant liabilities could be imposed on the Company for damages, clean-up costs or penalties in the event of certain discharges into the environment, environmental damage caused by previous operations or non-compliance with environmental laws or regulations. The disposal of mining and process waste and mine water discharge are under constant legislative scrutiny and regulation. There is a risk that environmental laws and regulations become more onerous making the Company’s operations more expensive. Climate risk There are a number of climate-related factors that may affect the operations and proposed activities of the Company. The climate change risks particularly attributable to the Company include: 1. the emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and market changes related to climate change mitigation. The Company may be impacted by changes to local or international compliance regulations related to climate change mitigation efforts, or by specific taxation or penalties for carbon emissions or environmental damage. These examples sit amongst an array of possible restraints on industry that may further impact the Company and its profitability. While the Company will endeavour to manage these risks and limit any consequential impacts, there can be no guarantee that the Company will not be impacted by these occurrences; and 2. climate change may cause certain physical and environmental risks that cannot be predicted by the Company, including events such as increased severity of weather patterns and incidence of extreme weather events and longer- term physical risks such as shifting climate patterns. All these risks associated with climate change may significantly change the industry in which the Company operates. Governance Risks The Group must comply with a range of governance requirements which are conditions of its listing on the ASX and of its mineral exploration and mining activities. There is a risk that the Group may not be able to achieve the financial performance or outcomes disclosed herein if it fails to comply with those governance requirements or if the requirements change in the future and the Group is no longer able to comply with the requirements or must incur material unplanned expenditure in order to remain compliant. The Group seeks to manage and minimise this risk through its existing risk management framework including Board-approved governance policies which are subject to regular review. 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. Mont Royal