DALAROO METALS LTD — Capital/Financing Update 2024

May 1, 2024

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

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

ASX ANNOUNCEMENT:
ASX: DAL 2 May 2023
----- End of picture text -----

EIS Co-Funded Drilling Awarded for Goodbody Gold Discovery

Highlights

• Exploration Incentive Scheme (“EIS”) grant of $100,000 awarded Western Australian Government to co-fund maiden diamond drill program at the new Goodbody gold discovery system.

• Assays from maiden air-core drill program in late February 2024 testing gold-bearing, outcropping quartz veins has outlined gold mineralisation at the Goodbody West prospect, Lyons River Project over a strike length of at least 200m including:

• LRAC047: 5m @ 0.85g/t Au from 9m including 1m @ 1.83g/t Au from 9m and 1m @ 1.23g/t Au from 12m

• LRAC049: 1m @ 0.98g/t Au from 3m

• LRAC051: 1m @ 1.17g/t Au from 19m

• LRAC052: 19m @ 0.23g/t Au from 24m

• Gold mineralisation at Goodbody West remains open along strike and at depth.

• Diamond drill program to build on the highly encouraging results.

• Drilling to commence once all approvals are in place in the September 2024 Quarter.

---

Dalaroo Metals Ltd ( ASX: DAL , “Dalaroo” or “Company”) is pleased to announce that its application for exploration funding in Round 29 of the Western Australian Government’s Exploration Incentive Scheme (“EIS”) was successful. Dalaroo’s $100,000 EIS grant will be used to co-fund 50% of the direct diamond drilling cost to test its new gold system discovery at Goodbody West at the Company’s Lyons River Project in the Gascoyne Province of Western Australia (Figures 1, 5 and 6).

Dalaroo Managing Director Harjinder Kehal commented:

“ Dalaroo is very pleased to have been awarded an EIS co-funding grant of $100,000 to undertake a maiden diamond drilling program at its Lyons River – Goodbody West gold Prospect. Diamond drilling to be undertaken at Goodbody pursuant to this grant will greatly enhance our geological knowledge of the structural features controlling gold mineralization at our Lyons River Project. ”

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

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

Technical Commentary

Goodbody gold mineralisation

Gold mineralization has been outlined in outcropping quartz veins at Goodbody within robust gold in soil anomalies with peak gold values of 132ppb Au at Goodbody West, 93ppb Au at Goodbody Central and 50ppb Au at Goodbody East. The footprint of the Goodbody prospects lies within a broader, 6km long, gold in soil anomaly at 2ppb threshold (refer DAL ASX Announcement from 26 February 2024). (Figures 1 and 2). `

==> picture [456 x 371] intentionally omitted <==

Figure 1: Location of Goodbody prospect in relation to additional gold prospects and interpreted regional structures within Lyons River Project area. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD base map.

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

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

==> picture [460 x 298] intentionally omitted <==

Figure 2. Location of recent rock chip samples within the Goodbody gold prospect area and soil geochemical anomalies. Overlaid on greyscale Total Magnetic Intensity (TMI)1VD basemap imagery.

AC drill program completed in late February 2024 on five north-south traverses covering 300m strike, to a maximum vertical depth of 42m (Figure 2) returned significant (> 0.1g/t Au) first pass results including (refer DAL ASX Announcement from 16 April 2024):

• LRAC047 : 5m @ 0.85g/t Au from 9m, including 1m @ 1.83g/t from 9m

• LRAC048 : 21m @ 0.21g/t Au from 24m, including 1m @ 0.55g/t Au from 26m

• LRAC049 : 1m @ 0.98g/t from 3m

• LRAC051 : 7m @ 0.36g/t Au from 17m, including 1m @ 1.17g/t Au from 19m

• LRAC052 : 19m @ 0.23g/t Au from 24m

Drilling in the eastern part of the Goodbody West prospect, below the main area of outcropping mineralisation, intercepted several zones of sub-parallel, moderately north-dipping quartz veins, within a sequence of pelitic schist and lesser interbedded psammitic rocks. Veins are commonly emplaced within or adjacent to high-strain zones and are encouragingly associated with broad widths of silicasericite (+/- hematite-carbonate) alteration. Veins contain variable quantities of ironstone and gossanous sulphide. Primary sulphides are not preserved at the shallow drilled depths (refer DAL ASX Announcement from 16 April 2024).

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

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

==> picture [456 x 371] intentionally omitted <==

Figure 3: Goodbody West gold prospect and interpreted regional structures. AC drill holes and to be drilled (TBDD prefix) diamond drill hole locations.

Next Steps

Four diamond drill holes for an aggregate 700m are planned (see Figure 3). The identification of sulphide-bearing quartz veins, in association with wide silica-sericite alteration haloes and strong Au-As anomalism from the current shallow levels of drilling are considered indicative of a significant hydrothermal system. Mineralisation remains open at depth and to the east and requires deeper drilling to assess the potential for structurally controlled high-grade zones. It is noted that surface anomalism at Goodbody West coincides with the intersection of WNW and NNE-trending structures (refer DAL ASX Announcement from 8 November 2023). Such intersection zones represent potential sites of intensified deformation and hydrothermal fluid movement and will be a priority for deeper drill targeting using the EIS co-funded diamond drilling at Goodbody West.

ENDS

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

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

For more Information:

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

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.

NO NEW INFORMATION

Except where explicitly stated, this report contains references to prior exploration results, all of which have been cross-referenced to previous market announcements made by the Company. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements.

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

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

About the Lyons River Project

Lyons River comprises a strategic (100% owned) land position of 838km[2] within the Proterozoic age Mutherbukin Zone of the Gascoyne Province in Western Australia. The Gascoyne Province is a deformed and high-grade metamorphic core zone of the early Proterozoic Capricorn Orogen. Geographically Lyons River is located approximately 1,100km north of Perth and approximately 220 km to the north-east of Carnarvon (Figure 4). Lyons River is prospective for, vein/shear related gold, BHT type mineralised base metals (Pb-Zn-Ag-Cu) and REE deposits (Figure 5).

==> picture [459 x 378] intentionally omitted <==

Figure 4: Lyons River Project location diagram

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

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

==> picture [465 x 437] intentionally omitted <==

Figure 5: Dalaroo Metals, Lyons River Project in the Gascoyne Province showing neighbouring companies and prospects.

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