Investors Newsletter, July 2024

Dear Investor,

A few days ago, NVIDIA set a record for the biggest daily gain in value in stock market history, adding a whopping $330Bn to its market capitalization. At this point, you probably think that’s the opening line to a pity party. It's not, although they are popular just now, given the markets recent appreciation of AI and its relative indifference to mining. But, markets move, sometimes abruptly...

But back here on earth and more to the point; AI tools users have tripled since 2020 to about 255-million humans with applications principally in healthcare, customer service and support (excluding speculation on whatever the “billionaire Bond-Villains” are up to). So, are we mineral explorers missing out? Is AI about to revolutionize the search for ore deposits? Is the application of AI to be considered part of the value proposition?

The answer – in our humble opinion - is no, and for more substantial testimony I direct you to our friends at Geohug and to an excellent half-hour presentation on the subject by Cam McCuaig (Head of Geoscience at BHP Resource Centre of Excellence). Whilst AI is developing as a useful tool for the mining and processing downstream, multiple parameters, large 3D spatial datasets and the factor of geological time, are proving substantial challenges for its application in the field of mineral exploration. Summarizing Cam, the experience datasets AI needs to be functional, that is, the millions of try-fail iterations (much as that might seem odd...), simply do not exist in mineral exploration.

For now then, and perhaps mundanely for some, our sector remains one of people with plans, individuals and ideas, teams with tools and humans with hammers…

Human capital value and how that capital is managed and deployed should be foremost in anyone’s assessment of an exploration venture, and given the very real challenge of skill shortages (for the first time ever, a head-hunter returned their cash deposit to us as they could not fill a job position) this is now more acute than ever.

This month, our team, guided by their own generative expertise, their own understanding of ore deposits, their exploration instinct and operational abilities, have identified some very exciting new copper and gold prospects in the stony desert of Saudi Arabia, decoded some complex geology at Jabal Sahabiyah and unearthed some more exciting copper mineralized structures at Alouana in Morocco.

Exploration Update

Saudi Arabia

Royal Road Arabia was selected as the winning bidder as part of a competitive Licensing Round for the Al-Miyah copper and gold tender area. This tender area consists of three contiguous Exploration Licenses, located in the Asir Province of the Kingdom of Saudi Arabia, 150 kilometers northwest of the Company’s Jabal Sahabiyah Exploration Licenses (see Press Release July 3^rd, 2024). Our team has identified significant potential for intrusion-related and structurally controlled copper and gold mineralization, with immediate exploration objectives evident along strike extensions to the Al Miyah magnetic corridor and along the newly identified shear-zone hosted copper and gold mineralization at Hishashat-al Hawi. A detailed surface geochemistry and structural mapping program is due to commence shortly across both known prospect areas and new target areas.

At Jabal Sahabiyah a test drone-flight was conducted as part of the drone permit approval process. We aim to commence drone-borne surveys over the two priority targets, Jabal Muwayqirah and Hanash North, from mid-August.

Following another successful field reconnaissance campaign we are in the process of submitting an additional three new exploration license applications for copper and gold mineralization.

To support our expanding exploration programs we welcome a new Senior Geologist and two new Project Geologists, each with more than five years of exploration copper and gold experience in the Arabian Nubian Shield.

Drone testing at Jabal Sahabiyah, Saudi Arabia. This drone is capable of flying our magnetometer, spectrometer and hyperspectral scanner

Next in Saudi Arabia

• Complete surface geochemistry and geological mapping of the two known prospects at Al-Miyah to further develop these targets
• Drone surveys and plan drilling at Jabal Sahabiyah, apply for all required permits
• Follow the new applications process

Morocco

In Morocco the focus has been on the acquisition of drilling permits at the Alouana copper-gold polymetallic project. All necessary documentation has been filed and the process is advancing subject to the meeting schedules of relative stakeholders.

New infill soil geochemical samples at Alouana highlighted an important connection between the "Open-Pit" and "Hill-Top" zones which effectively extends the potential for near-surface, open-pittable mineralization contiguously across the hill-top for a strike length of about two kilometers (see Press Release, July 29th, 2024). Additionally, follow up of stream-sediment sample results from another of the Company's license areas within the Alouana AOI has identified some significant new copper mineralized structures.

Work on assessing potential third party acquisitions in Morocco is continuing.

Soil sampling crew from the local community at Alouana

Next in Morocco

• Drill permits, access and drill site preparation at Alouana
• Advancing third-part deals

Thank you for your continued support and trust in our vision. We look forward to sharing more updates with you in the coming months.

Yours sincerely,
Royal Road Minerals