Investor Newsletter, June 2018

"In Colombia, we are working with our partners ECOMUN, with the Mining Agency and with other government agencies on advancing the important concertation process across municipalities in Nariño"

Dear Investor,

Royal Road is focused on discovery.

Of course, all companies should be opportunity driven, but discovery is our background and our bread and butter. Discoveries are exciting and extraordinarily valuable events, returning capital in many multiples, positively changing lives and benefiting communities and host governments for decades.

Despite the impact of erratic markets and the turbulence of geopolitics, we are resolutely, but carefully, just getting on with it.

Colombia

In Colombia, we are working with our partners ECOMUN, with the Mining Agency and with other government agencies on advancing the important concertation process across municipalities in Nariño. The concertation process is managed by the Mining Agency and in our view, is an advanced and innovative means of ensuring that local councils, leaders and indigenous communities are informed of the law and of the mineral exploration process in anticipation of any work commencing. Community leaders ultimately agree and sign-off on the outline of our concession contract applications. Of the eleven municipalities our 350,000 hectares of applications cover, five have already passed concertation and we are working one by one with remaining municipalities. This may sound like a long-winded process, but it is absolutely necessary and we would argue crucial in sensitive post-conflict environments such as Colombia. We seek understanding and patience here. In an area as obviously prospective as Nariño, it is best to have a thorough understanding of the social landscape and raise any flags early and before significant investment starts.

Nicaragua

In Nicaragua we have over 60 staff, contract and community employees currently in the field busily advancing three exciting new projects in the (seemingly prolific) Golden Triangle and completing surface geochemistry for drill-target definition at the Los Andes porphyry copper-gold project and reopening the underground tunnel to access historic high gold grades at Piedra Iman. That is five projects we are currently developing in Nicaragua and evidence enough as to why our 50-50 Strategic Alliance with Mineros is a good idea!

Nicaragua’s Golden Triangle has quite captivated our exploration team.

By way of the Strategic Alliance, we have the largest license area in the region, amounting to just over 200,000 hectares with familiar names such as Centerra Gold, IAM Gold and B2 Gold sitting close on our periphery. The team is excited by the projects they are identifying and advancing which include the completely new Caribe prospect, a 500m by 500m breccia body known as “Hill 403” (which has returned up to 26 grams per tonne gold in grab samples) and a skarn body known as Montecarmelo (where 110 combined grab and channel samples returned a mean of 3.54 grams per tonne gold). In regards to the potential of our large land packages, Nariño remains number one, but Nicaragua’s Golden Triangle is fast emerging as a somewhat surprising close second!