DALAROO METALS LTD — Capital/Financing Update 2022

Apr 3, 2022

==> picture [595 x 109] intentionally omitted <==

----- Start of picture text -----

ASX ANNOUNCEMENT:
ASX: DAL 4 April 2022
----- End of picture text -----

New gold prospect outlined at Lyons River in Gascoyne

---

Highlights

• New gold prospect (Goodbody) outlined

• Systematic sampling on a 250m X 100m grid has identified:

• 1.5km long gold anomaly

• Peak value of 93ppb Au

• Results from a review of base metal geochemistry from previous exploration at Goodbody include:

• Up to 6.25g/t Au in rock chips

• Follow-up exploration to commence in the June Quarter.

Dalaroo Metals Ltd ( ASX: DAL or “Company”) has finalised a review of geochemical data from previous exploration undertaken at its Lyons River Project. The Company has identified the high-priority Goodbody gold prospect which has a strike length of 1.5km. Goodbody is located five kilometers to the west of its Four Corners BHT/SEDEX Pb-Zn base metal prospect.

The Goodbody gold prospect has been outlined from a review of soil geochemical sampling which was previously completed on a pattern of 250m X 50 to 100m over several campaigns by Serena Minerals Limited (period 2017 to 2021) with a peak value of 93ppb Au (Figure 1). Rock chip sampling of quartz veins by Audalia Resources Limited (ASX: ACP) during 2014 to 2015 [1 & 2] returned anomalous gold values of 0.40 g/t and 0.32 g/t, with subsequent rock chip sample results of up to 6.25 g/t at Goodbody (Figure 1).

The results of soil geochemical, rock chip sampling and geological mapping campaigns have been combined with our 50m spaced high resolution aeromagnetic data. This compilation highlights a broad east-west structural corridor containing gold anomalism over a strike length of several kilometres with the potential to host gold deposits (Figure 2).

Next Steps

The Goodbody gold anomaly remains open to the west. On a number of the sampling lines, soil samples were assayed for base metals only and not for gold. Sample pulps of this phase of previously completed sampling have been delivered to the laboratory for gold analysis.

Further exploration comprising infill soil geochemical sampling at Goodbody will commence in the June Quarter. Aircore drilling of this compelling gold target is also proposed, once site relevant access approvals are in place.

==> picture [595 x 58] intentionally omitted <==

==> picture [99 x 66] intentionally omitted <==

“Gold prices continue to rise as a safe-haven as a result of geopolitical uncertainty and we are excited about conducting more lab testing on the existing samples as well as doing more follow-up field exploration,” said Managing Director, Harjinder Kehal.

==> picture [485 x 414] intentionally omitted <==

Figure 1: Lyons River Project, Goodbody prospect geology with gold—in soil contours, previous rock chip results

==> picture [595 x 35] intentionally omitted <==

==> picture [99 x 66] intentionally omitted <==

==> picture [485 x 414] intentionally omitted <==

Figure 2: Lyons River Project, Goodbody prospect with gold—in soil contours, previous rock chip results and total magnetic intensity image (warm colours represent lithologies with higher level of magnetism).

==> picture [595 x 35] intentionally omitted <==

==> picture [99 x 66] intentionally omitted <==

ENDS

For more Information:

Please visit our website for more information: www.dalaroometals.com.au

Harjinder Kehal, Managing Director on +61 400 044 890

COMPETENT PERSON

The information in this report that relates to Exploration results is based on information compiled by Dalaroo Metals Ltd and reviewed by Mr Harjinder Kehal who is the Managing Director of the Company and is a Registered Practicing Geologist and Member of the AusIMM and AIG. Mr Kehal has sufficient experience that is relevant to the style of mineralisation, the type of deposit under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kehal consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

FORWARD-LOOKING INFORMATION

This report may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning the planned exploration program and other statements that are not historical facts. When used in this report, the words "could", "plan", "estimate", "expect", "intend", "should" and similar expressions are forward-looking statements. Although Dalaroo believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

CAUTIONARY NOTE

The statements and information contained in this report are not investment or financial product advice and are not intended to be used by persons in deciding to make an investment decision. In releasing this report, Dalaroo has not considered the objectives, financial position or requirements of any particular recipient. Accordingly, potential investors should obtain financial advice from a qualified financial advisor prior to making an investment decision.

Authorised for release to the ASX by the Board of Dalaroo Metals Ltd.

Key References:

1. ACP ASX Release, dated 16 September 2014 Gascoyne Project Exploration Update 2. ACP ASX Release, dated 28 January 2015 Gascoyne Project Exploration Results

==> picture [595 x 35] intentionally omitted <==

==> picture [99 x 66] intentionally omitted <==

About the Lyons River Project

Lyons River is located approximately 1,100km north of Perth and approximately 220 km to the northeast of the coastal town of Carnarvon, Western Australia. The Lyons River Project lies within the Mutherbukin Zone of the Gascoyne Province, which is the deformed and high-grade metamorphic core zone of the early Proterozioc Capricorn Orogen (Figure 3).

==> picture [455 x 375] intentionally omitted <==

Figure 3: Lyons River Project location diagram

==> picture [595 x 35] intentionally omitted <==

==> picture [141 x 99] intentionally omitted <==

Appendix 1: Dalaroo Metals Ltd – Lyons River Project – Goodbody prospect - JORC Code Edition 2012: Table 1

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld x-ray fluorescence (XRF) instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	Rock chip, stream sediment and soil sampling Soil samples are generally homogenised by the collection process Entire sample was submitted for sample prep and assay. Rock chip, stream sediment and soil sampling results are a first pass exploration technique that can assist in vectoring toward mineralisation For soil sampling, at the selected sample site, a small hole is dug to a depth of approximately 20 cm. The soil material at the base of the hole was sieved, and approximately 2kg of –2mm soil material was collected into a numbered calico bag.
Drilling techniques	Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc.).	No drilling results reported.

6

==> picture [141 x 99] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	No drilling results reported. No drilling results reported. No drilling results reported.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged.	No drilling results reported. No drilling results reported.
Subsampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	Stream sediment (2kg) samples were collected using -3mm mesh. Soil samples were sieved to collect the -2 mm fraction. All samples were dry. Sample preparation of samples follows industry best practice standards and is conducted by internationally recognized laboratories; i.e Oven drying, jaw crushing and pulverising so that 90% passes -75 microns There was no sub-sampling Soil sampling completed on a regular grid spacings to ensure representative sampling of area being assessed. Entire sample submitted for assay and sample size is considered appropriate for the material being sampled.

7

==> picture [141 x 99] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Rock chips samples were analysed with a ARU10/MS digest for Au, Ag, As, Ba, Mo, Sn, Ta, &W. Stream sediment samples were analysed by method CN2000/MS 40g sub-sample of the soils were digested in an aqua regia solution and analysed for a multielement suite by ICP MS. The aqua regia technique is not a complete digestion but for soil material is considered adequate.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	Anomalous geochemical thresholds were determined by a senior geologist None drilled. All field data was manually collected, entered into excel spreadsheets, validated and loaded into Access database and processed by a number of different exploration software. None required
Location of data points	Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	All samples collected are located using a handheld GPS. Grid system used for geochemical sampling is GDA94 Zone 50 For geochemical sampling nominal RLs based on regional topographic data sets and handheld GPS.
Data spacing and distribution	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied.	Soil sampling on 250m X 100m spacing based on geology/structural framework. MRE not being reported.

8

==> picture [141 x 99] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Soil sample lines were orientated approximately parallel to the geological strike and perpendicular to strike of the interpreted major structures. Given the topography and early stage of exploration, the sampling orientation is not considered to introduce a bias to the interpretation of the data No drilling results reported.
Sample security	The measures taken to ensure sample security.	Samples were collected into labelled polyweave sacks which were sealed by cable ties. The polyweave sacks were placed in bulka-bags and transported to the laboratory by freight company. Once the samples arrived at the laboratory, the samples numbers were checked against the sample submission form and no errors were identified.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	As part of the interpretation of the data the Company’s geologist undertook a review of the assay data quality, including laboratory batch effects. No significant biases were identified.
Section 2: Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Lyons River Project tenements are wholly owned by Dalaroo Metals Ltd (“Dalaroo”) The Project is located 220km north-east of Carnarvon on Eudamullah Pastoral Station. The Competent Person is unaware of any impediments to development of these tenements.

9

==> picture [141 x 99] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Exploration of Lyons River has previously been undertaken by other parties including Audalia Resources and Serena Minerals and the Competent Person has referenced the parties involved and the results of this work throughout the text. Audalia Resources and Serena Minerals undertook exploration with a focus on base metals during the period 2013 to 2021. Work completed regional geological mapping, geophysical surveys, rock chip sampling, stream sediment samplingand soil sampling.
Geology	Deposit type, geological setting, and style of mineralisation.	The tenements are located in the Mutherbukin zone of the Gascoyne Province. The majority of the tenement area is interpreted to be dominated by a sequence undifferentiated schists and gneiss and Davey Well Granite. Quartz vein and shear hostedgold deposits
Drillhole information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: • easting and northing of the drillhole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drillhole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	No drillholes are reported. The plan provided in the body of the report identifies the location of the geochemical sampling sites.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.	No adjustments to the assay results as reported have been undertaken. No drilling. No drilling.

10

==> picture [141 x 99] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. ‘downhole length, true width _not known’). _	No drilling. No drilling. No drilling.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drillhole collar locations and appropriate sectional views.	Appropriate maps displaying all the data points and anomalous values are provided in the body of the report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	No drilling.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	The Company’s geological team will field check soil geochemical anomaly prior to planning additional field work. Work will likely include geological mapping ahead of proposed drill testing.
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Appropriate plans are provided in the body of the report.

11