Royal Road Minerals Limited announced that it has entered into a Strategic Alliance Agreement (the Alliance Agreement) and a Non-Binding Letter of Intent (the LOI) with MSB Holdings Limited (MSB) with respect to copper, gold and other metals exploration in the Kingdom of Saudi Arabia (KSA). MSB is an investment holding company, established in Saudi Arabia in 2017. It holds a number of investments across a range of sectors and, through the ownership and management of its subsidiaries, is a leader in the construction and contracting sectors.

MSB is driven by a desire to innovate, with investments in emerging technologies, while also possessing real estate and shareholdings that facilitate the operations of its subsidiaries. Under the terms of the Alliance Agreement, Royal Road and MSB agreed to form an alliance (the Alliance) aimed at developing an exploration decision-support-system, leading to the development of priority targets and an initial 12-month work program and budget for exploration operations in the 'Arabian Shield' area of the KSA. The Alliance was formed effective upon the execution of the Alliance Agreement and is it be conducted on a 50-50 basis, with Royal Road agreeing to complete desktop and field-based studies and MSB agreeing to provide in-country and field logistics support.

Additionally, the parties have executed the LOI, which provides for a three-month exclusivity period during-which the parties would seek to agree on an initial 12-month work program and budget. In connection with such work program and budget, the parties would form a joint venture for purposes of exploring and developing copper-gold and other metallic assets in the KSA. The joint venture would be carried out through a newly incorporated entity (Newco) in accordance with the terms of a joint venture agreement.

Newco would be owned by the parties on an equal 50-50 basis and RRM would act as the 'operator' of the joint venture and provide technical know-how, secure and develop targets, identify new opportunities and prepare 12-month programs and budgets for approval by Newco's board of directors.