Mr. Nicholas Holthouse reports

MONT ROYAL VIA COMMERCE RESOURCES RECEIVES AN EXTENSION OF THE CRITICAL MINERALS INFRASTRUCTURE FUND CONDITIONAL APPROVAL FOR REVISED ROAD STRATEGY FOR THE ASHRAM RARE EARTHS & FLUORSPAR PROJECT, QUEBEC

Mont Royal Resources Ltd.'s 100-per-cent-owned subsidiary, Commerce Resources, has received an extension of the conditional approval first announced on Feb. 6, 2025, for a revised road strategy, with conditional funding of up to a total of $2,606,977 from Natural Resources Canada's (NRCan) Critical Minerals Infrastructure Fund (CMIF), to progress access road studies for the company's 100-per-cent-owned Ashram rare earths and fluorspar project in Nunavik, Quebec. This extended conditional approval remains subject to completion of due diligence and the execution of a formal agreement.

Highlights:

• Mont Royal's 100-per-cent-owned subsidiary, Commerce Resources, has received an extension of conditional funding, first announced on Feb. 6, 2025, of up to $2.6-million from Natural Resources Canada (NRCan) as part of the Critical Minerals Infrastructure Fund (CMIF) program, subject to completion of due diligence and the execution of a formal agreement.
• Upon meeting required conditions, the conditional CMIF funding would support road development studies for the revised southern road access strategy.
• The strategy for the Ashram project envisions:
  • Delivery of mixed rare earth concentrates from the Ashram project 300 kilometres by road to the town of Schefferville;
  • Rail transportation from Schefferville to Sept-Iles;
  • Transportation by sea or road to the port of Saguenay under the recently announced MOU (memorandum of understanding) for potential hydrometallurgical processing at the Saguenay industrial zone prior to export to global markets.
• The conditional CMIF funding would be critical to facilitating the planning and preconstruction of a road between the Ashram project and Schefferville (300 kilometres), which would also provide enhanced access to the Nunavik region and support multiple projects and indigenous groups in the area.
• The extended conditional approval will be vital in advancing the company's baseline studies, prefeasibility study and feasibility study.

Mont Royal's managing director, Nicholas Holthouse, said: "I would like to thank NRCan for extending their conditional funding and for their strong support for Mont Royal's revised southern road access strategy, which envisages establishing a streamlined logistics chain by road between the Ashram project and Schefferville and then via rail to Sept-Iles and ultimately the port of Saguenay. This funding would be critical in supporting the progression of our road studies, which would be crucial to the development of the Ashram REE [rare earth element] and fluorspar project. Ashram is the highest-quality deposit of its type in Canada and one of the best globally and we are delighted to see such strong government support for our proposed infrastructure and logistics solution to unlock the enormous value of this deposit on behalf of our shareholders and all stakeholders.

"In addition to bringing this strategically important project into production, a new road would provide significant social and economic benefits to the indigenous communities in Nunavik as well as other potential exploration and development projects in the district. We look forward to working with the government and communities as we progress the Ashram project and seek to deliver this important expansion of Quebec's northern infrastructure."

Tim Hodgson, Minister of Energy and Natural Resources, said: "Canada has what the world wants: abundant critical minerals, world-class workers and ESG [environmental, social and governance] standards, and a government committed to regulatory streamlining and building full-value chains here at home. Projects like Ashram help meet that moment by connecting Canadians and goods to new markets, strengthening our economic security, deepening partnerships with indigenous communities in Nunavik, and reinforcing Canada's position as a first-tier mining nation."

Claude Guay, parliamentary secretary to the Minister of Energy and Natural Resources, said: "This support is helping advance the early planning and engineering work that communities and project partners need to move responsible development forward in Quebec. By supporting road studies that improve access to the Nunavik region and connect projects like Ashram to rail and port infrastructure, we are strengthening our regional and national economy and laying the groundwork for the good jobs and long-term opportunities that critical minerals can deliver."

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 300 kilometres 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 farther south to the port city of Sept-Iles.

Transporting concentrate south to Schefferville and then on to Sept-Iles offers significant advantages in reducing both capex (capital expenditures) and technical risk, along with increased operability by avoiding ice-bound port concepts to the north.

From Sept-Iles, 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 and is considering locating a hydrometallurgical facility within the Port Saguenay industrial zone, subject to further technical, commercial and regulatory studies.

As global demand for critical minerals is expected to double by 2040, Canada is uniquely positioned to benefit from this growing market. Canada has an abundance of critical minerals, and it has the workers, businesses and communities with the know-how to scale up the mining, processing and manufacturing of products and the recycling of these minerals, responsibly. Critical minerals present a huge economic opportunity for workers -- with the potential for hundreds of thousands of jobs to be created while stepping up to become the supplier of choice for Canada's allies on the world stage and reduce Canada's reliance on authoritarian governments.

About Mont Royal Resources Ltd.

Mont Royal Resources is a critical minerals development and exploration company with projects in Quebec, Canada. The company is dedicated to advancing its 100-per-cent-owned Ashram rare earth and fluorspar deposit in Quebec, Canada -- one of the largest monazite-dominant carbonatite-hosted rare earth elements deposits in North America. In addition, the company owns 75 per cent of the Northern Lights Minerals 536-square-kilometre tenement package located in the Upper Eastmain greenstone belt. The projects are located in the emerging James Bay area, a Tier 1 mining jurisdiction of Quebec, and are prospective for lithium, precious (gold and silver) and base (copper and nickel) metals mineralization.

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