DALAROO METALS LTD — Interim / Quarterly Report 2022

Jan 22, 2023

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ASX ANNOUNCEMENT:
ASX: DAL 23 January 2023
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Quarterly Activities Report For Period Ended 31 December 2022

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Highlights

Lyons River in the Gascoyne Region of Western Australia

Base Metals – Browns

• High-grade base metal and silver rock chip results returned following geological reconnaissance at Browns prospect (up to 39.6% Pb, up to 0.71% Zn and up to 82g/t Ag ).

• Mineralized rock chips from gossanous units, interpreted to represent surface expression of sulphide Pb-Zn-Ag mineralisation intersected in first-pass AC drilling July 2022 (significant intercepts include 8m @ 1.1% Pb and 2.50g/t Ag).

• Focussed AC drill program to test a compelling 2km long X 1km size lead-zinc-silver BHT target undertaken. Results from the AC drill program expected during March Quarter 2023.

Gold - Goodbody

• Step-out soil sampling at Goodbody prospect extends Au-anomalous soil footprint to 3km strike length with delineation of three highly anomalous Au-in-soils centres (>10 ppb Au zones) within the broader anomalous Au footprint adjacent to historic 6.25g/t Au quartz vein rock chip sample.

REE & Li

• Robust Rare Earth Elements (“REE”) soil anomalies outlined at Marloo River prospect: up to 1278 ppm TREO. Pegmatite sampling within REE anomalous zone returns 0.89% TREO in rock chips at Marloo River.

• Large primary pegmatite swarm spanning a 9km x 6km area (referred to as the View Hill Pegmatite Zone) identified; and numerous smaller pegmatite swarms within major regional structural corridor.

• Anomalous first-pass rock chip sample assays from View Hill indicate fertility for rare metal pegmatites, with assays returning: 114 ppm Li, 1638 ppm Rb, 187 ppm Nb and 182 ppm Sn.

• Considerable potential to expand REE/Li footprint at Lyons River.

Namban in the Wheatbelt Region of Western Australia

PGE-Ni-Cu-Au

• Dalaroo awarded $175,000 through a successful application for the Exploration Incentive Scheme (“EIS”) funded by the Government of Western Australia.

• Five diamond drill holes will test the significant Manning PGE-Cu-Ni-Au geochemical anomalies.

• Recently defined IP anomalies with high chargeability values of up to 30 mV/V correlate well with PGE-Ni-Cu-Au geochemistry.

• Diamond drilling to commence upon completion of the West Australian 2022 harvest season in March Quarter 2023.

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Dalaroo Metals Ltd ( ASX: DAL , “Dalaroo” or “Company”) is pleased to provide an update on its activities during the December Quarter 2022.

Lyons River Project

Dalaroo’s Lyons River Project is a strategic (100% owned) land position of 703 km[2] within the Proterozoic Mutherbukin Zone of the Gascoyne Province of Western Australia. The Company believes the district is an emerging Broken Hill Type (“BHT”) deposit setting.

Browns - Pb-Zn-Ag

Browns was targeted as one of six significant base metal (Pb-Zn) anomalies in soils identified across the 100% owned Lyons River project through staged systematic soil geochemical surveys. Browns represents the second site of Pb-Zn-Ag intersections discovered by bedrock drilling in the Mutherbukin Zone, 5km east of Dalaroo’s Four Corners Pb-Zn-Ag prospect (Figure 1). Combined, the anomalous soil base metal zones span a 30km x 10km area of Paleoproterozoic basin stratigraphy within the Mutherbukin Zone, Gascoyne Province.

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Figure 1: Lyons River, Browns prospect and other five Pb-Zn soil geochemical prospects /targets over greyscale 1 Vertical Derivative image

The ferruginous and gossanous rock units hosting the anomalous rock chip samples reported were discovered during recent geological site inspections of the Browns July 2022 AC drill zone. During this field work, geologists identified previously unsampled ironstone/ferruginous and locally gossanous rock units and float rock over a strike of approximately 60m, within the vicinity of drillholes intersecting Pb,

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Zn and/or Ag mineralization (Figure 2). These units have returned the highly anomalous base metal values up to 39.6% Pb, up to 0.71% Zn and silver up to 82g/t Ag.

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Figure 2: Location of recent rock chip samples. Mineralized trend over 800 m remains open. Planned AC drill holes. Note southern Browns untested anomalous Zn geochemical trend coinciding with interpreted fold structure, outlined by 1st Vertical Derivative Bouger Anomaly Gravity basemap.

First pass AC drill program completed in the September Quarter 2022 had only tested the northern part of the 2km x 1km zone of Pb-Zn soil/rock chip anomalism at Browns. Early geological interpretation of the recent drilling results and the available gravity and magnetics data outline an interpreted sub-basin fold or trough structure south of current drilling (Figure 2). Such a structure may represent a deeper portion of the paleo-basin architecture and a favourable environment for formation of prospective host stratigraphy. Significantly, this interpreted structure spatially coincides with elevated lead and zinc in soil and high-grade ironstone/gossanous subcrops.

The Company’s follow up AC drill program during December Quarter 2022 at the Browns prospect was designed to test the following:

• Up dip and step out from LRAC010 significant intersection of 8m of 1.1% Pb and 2.5g/t Ag;

• • Northern limb of interpreted synclinal fold closure defined by detailed gravity, coincident with NW-striking and stratigraphy-parallel trend of anomalous Pb-Zn in soils and rock chips from outcropping ferruginous bands (see Figure 2);

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• A NE-trending structural feature adjacent to drilled Pb-Zn-Ag mineralized intercepts, interpreted from gravity/magnetic and aerial imagery datasets; and

• Untested discrete Zn-in-soil anomalism.

Goodbody – Gold

The Goodbody gold prospect was defined in April 2022 from a review of Dalaroo’s 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). A peak value of 93ppb Au was returned from the now named Goodbody Central target. Rock chip sampling at Goodbody was carried out by Audalia Resources Limited (ASX: ACP) during 2014 to 2015 [1 & 2] , with anomalous Au results of 0.40g/t, 0.32g/t, 3.17g/t, and 6.25g/t returned from low-lying ferruginous quartz vein outcrops at the now named Goodbody West target (Figure 3).

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Figure 3 : Goodbody gold prospect soil anomaly map, including newly defined discrete Au anomaly targets Goodbody West, Goodbody Central and Goodbody East. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD basemap.

Dalaroo completed infill and step-out soil sampling at its newly identified Goodbody gold prospect, in the western part of the Lyons River Project. The 3 km long trend comprises three higher strength anomalous zones (>10 ppb Au), forming separate sub-targets within the Goodbody prospect; Goodbody West, Goodbody Central, and Goodbody East (Table 1). The Goodbody Central and Goodbody East targets form discrete high strength anomalies within a 3km long continuous trend of >2 ppb Au-in-soils (Figure 3).

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Table 1: Summary features of discrete Au anomalies (targets) within the Goodbody prospect.

Target	>10 ppb Au-in-soil anomaly strike length	Peak Au-in-soil value	Peak Au rock chip value
GoodbodyWest	>250 metres	54ppb	6.25g/t
GoodbodyCentral	>200 metres	93ppb	untested
GoodbodyEast	>200 metres	24ppb	untested

The anomalous Au-in-soil footprint displays an apparent east-west orientation, sub-parallel to the local structural-stratigraphic trends and major WNW-striking regional shear zones in the district, which transect the Lyons River Project and wider Gascoyne Province (Figure 4). The Geological Survey of Western Australia interpret such structures to represent major crustal shear zones and tectonic boundaries.

It is noted that high-strength soil anomalies associated with the Goodbody West, Central and East targets spatially coincide with the location of intersections between interpreted WNW-striking structures and NNE-trending structures (Figures 3 and 4). Conceptually, structural intersection zones represent potentially intensified deformation areas that may be associated with favourable sites of hydrothermal fluid movement and gold mineralization. As such, the Goodbody Au targets are considered high priority for follow-up exploration work.

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Figure 4: Location of Goodbody prospect in relation to additional gold and base metal prospects and interpreted regional structures within Dalaroo Metals’ Lyons River Project area. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD base map.

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Continued review of historical geological mapping and sampling has also led to recognition of an additional early-stage gold prospect within the Lyons River Project, referred to as the Alpha Au prospect, situated 13km southeast of the Goodbody Au prospect. Alpha was first identified during geological reconnaissance rock chip sampling by Audalia Resources Limited in 2014, with a ferruginous quartz vein returning 0.37g/t Au. Significantly, the Alpha prospect is situated in proximity to, and within the interpreted wider deformation domain of, the same major regional WNW-striking shear zone that is associated with the Goodbody prospect; with Goodbody to the north, and Alpha to the south, of this major structural corridor (Figure 4). To date no soil sampling or ground reconnaissance for gold at the Alpha prospect has been completed.

REE & Li

Systematic soil geochemical sampling and recent geological reconnaissance relating to Rare Earth Elements (“ REE” ) prospectivity and pegmatite-associated Li in the Lyons River Project, with numerous pegmatite swarms have been confirmed and geochemical sampling completed at the Marloo River and View Hill prospect areas.

REE results of 0.89% TREO from the newly outlined Marloo River prospect. Rock chip samples of pegmatites in the View Hill zone returning up to 114 ppm Li, 1638 ppm Rb, 187 ppm Nb and 182 ppm Sn, suggest the pegmatites in this district are fertile for potential rare metal pegmatite associated mineralization.

Marloo REE and Li Potential

At Marloo River, an initial soil sampling campaign (100m x 250m sample spacing) has revealed zones of elevated REEs (up to 1278 ppm TREO) and Li (up to 93.5 ppm; Figure 5). These anomalies are associated with feldspar-muscovite-quartz-dominant pegmatites with locally biotite-rich zones, that have intruded a micaceous pelitic schist package, likely of sedimentary rock origin.

Within the vicinity of soil samples containing >1000 ppm TREO and >90 ppm Li, an outcropping feldsparbiotite-rich pegmatite body was rock chip sampled (sample 2310AR_002) and returned assay values of 0.89% TREO and 215 ppm Li. In the northern extents of the Marloo River prospect area, a single soil line extension revealed 842 ppm TREO in soils that remains open to the west and east (Figure 5). Pegmatite outcrops extending over hundreds of metres have also been observed in this area.

View Hill Lithium Potential

Dalaroo’s lithium anomalous rock chip results targets are located approximately 22km south-west of the Yinnetharra Lithium Project. The Yinnetharra Lithium Project was recently acquired by Red Dirt Metals Ltd (ASX: RDT) for an initial purchase price consideration of AUD15 million, following significant drill intersections that included 23m @ 1.02% Li2O (ASX: RDT -See ASX: Announcement from 12 September 2022).

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Figure 5: Lyons River Project – Marloo River and location of anomalous TREO geochemical results, and View Hill with location of samples indicating fertile pegmatite and granite areas.

Pegmatites in the Yinnetharra district form part of the intrusive Thirty Three Supersuite (“TTS”), which comprises granite, granitic pegmatites (microcline-muscovite-tourmaline) and rare-metal pegmatites. The recent field mapping has confirmed that the granites and pegmatites of the TTS have also intruded the host stratigraphy of the Lyons River Project tenements.

Selective reconnaissance rock chip sampling completed at View Hill of the granitic pegmatites has demonstrated whole rock geochemistry that is considered high fertility for LCT-type pegmatites associated with Li mineralization (Figure 6). Assays from the pegmatite swarm that extends across a 9km X 6km area have returned highly anomalous values of 114 ppm Li, 1638 ppm Rb, 187 ppm Nb and 182 ppm Sn. Rock chip sampling of pegmatites in other targeted pegmatite swarm areas, west of View Hill, has returned significant Ta and Nb values of 116 ppm and 329 ppm respectively with anomalous Rb of 904 ppm.

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842 ppm
TREO soil
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Figure 6 : Marloo River anomalous lithium and TREO soil/rock chip geochemistry results.

Next Steps at Lyons River

Browns – Pb-Zn-Ag

Browns is a compelling 2km long x 1km size lead-zinc-silver BHT target. Geological interpretation of the September Quarter 2022 AC drilling results and the available gravity and magnetics data have outlined an interpreted sub-basin fold or trough structure south of current drilling which may represent a deeper portion of the paleo-basin architecture favourable environment for BHT base metal deposits.

Further AC drilling is proposed for the untested southern portion of sub-basin fold or trough structure during June Quarter 2023 once approvals have been received.

Goodbody – gold target

Dalaroo proposes to complete geological reconnaissance, rock sampling and prospect-scale geological mapping of the Goodbody prospect in the March Quarter 2023. This will provide important geological and structural context for the Goodbody Au mineralized system and aim to locate in-situ Au-mineralized structures and rock units associated with the soil anomalism.

The main Goodbody gold anomalous footprint remains open and poorly defined for several hundred metres west of the Goodbody West target and east of the Goodbody East target. Additionally, in a weaker anomalous zone in the northern extents of the prospect area, a 22 ppb Au sample remains open to the north.

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Follow-up soil sampling will step-out from these unconstrained anomalous sample sites and explore for further continuities of Au-elevated soils. First-pass soil sampling is proposed for the Alpha Au prospect 13km southeast and approximately along-trend of Goodbody. The combination of results from these programs will assist in the targeting and design for next phase of exploration during 2023.

REE and Li

At Marloo River, detailed mapping and representative rock chip sampling of pegmatites will be completed across the prospect area. Whole rock geochemistry of the various pegmatite bodies and any significant internal zonation may then be assessed for a potentially large scale rare metal mineralization system at Marloo River. Additionally, in the northern extents of the prospect area, step out soil sampling will be carried out adjacent to the >700 ppm TREO soil anomaly identified in the sampling to date (Figure 6).

In the View Hill pegmatite zone, regional scale north-south oriented 100m-spaced soil sampling transects is underway to assess geochemical zonation and, therefore, trends in fertility and rare metal/Li prospectivity across the large 9km x 6km area. It is expected that definition of such geochemical trends will aid in vectoring towards high-grade rare metal mineralization at the deposit scale.

Namban Project

The Namban Project is located approximately 150km north-northeast of Perth, adjacent to the regional centre of Moora in Western Australia, in the newly defined Yilgarn Ni-Cu Province (Figure 8).

Dalaroo’s application has been successful in Round 26 of the Exploration Incentive Scheme (“EIS”) funded by the Government of Western Australia. The grant will co-fund drill testing of a compelling PGE-Ni-CuAu mineralisation target at Dalaroo’s Manning prospect. The grant is for an amount of up to $175,000 from the Department of Mines, Industry Regulation and Safety (“DMIRS”), structured as a contribution towards 50% of direct drilling costs at the Manning prospect.

Next Steps at Namban

Manning

The Company plans to drill five diamond core holes at Manning and the EIS-funded drilling is expected to confirm the presence of magmatic hosted PGE-Ni-Cu-Au and hydrothermal deposits north of Goneville/Julimar and the recent discovery of Au-Cu mineralisation at Angepena, Mynt and Zest located 10km to the south-east. This work will provide important information on the stratigraphy, lithologies and alteration assemblages related to the identified geochemical and geophysical anomalism at Manning, subsequently, expanding the current understanding of controls on magmatic Ni-Cu-PGE-Au and hydrothermal/structural hosted mineralisation in this district.

A Programme of Work for the diamond drill programme has been approved by DMIRS and Dalaroo has entered into a land access agreement with the local farmer for the granting of surface mineral rights.

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Watheroo

In addition, Dalaroo proposes to undertake systematic geochemical sampling over the prominent 7km long by 3km wide magnetic anomaly considered to represent a mafic intrusive and thought to be a “Chonolith” prospective for Ni-Cu deposits once land access agreements and approvals are in place.

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Figure 8: Namban Project Location

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Corporate

As at the date of this report, the Company has the following securities on issue:

**Security Type **	Number
FullyPaid OrdinaryShares	54,000,000
Vendor Options - nil issue price exercisable at $0.25 each and expiring on 28 September 2025	8,000,000
New Options – issue price of $0.001 each, exercisable at $0.25 each and expiring on 28 September 2024	5,000,000

No further shares or options were issued during the December Quarter 2022.

At the Company’s AGM, held on 30 November 2022, the shareholders approved the issue of the following performance rights to the directors under the Employee Securities Incentive Plan that were originally announced to the ASX on 4 October 2022:

• 1,300,000 Class 1 Performance Rights if the volume weighted average price per Share, calculated over a period of 20 consecutive trading days is equal to or greater than $0.174;

• 1,300,000 Class 2 Performance Rights if the volume weighted average price per Share, calculated over a period of 20 consecutive trading days is equal to or greater than $0.196;

• 1,300,000 Class 3 Performance Rights if the directors remain with the Company until at least 30 June 2025, subject to the discretion of the Board under the rules of the Plan.

These performance rights were issued in lieu of any salary or director fee increases for the year and any potential benefit will be deferred for 3 years until the vesting date on 30 June 2025. At the date of this report none of the conditions had been satisfied for any of the performance rights to vest.

Listing Rule 5.3.4 Use of Funds

Dalaroo was admitted to trading on ASX on 28 September 2021. The December Quarter 2022 is included in a period covered by a Use of Funds statement in a prospectus dated 26 August 2021 and lodged with ASX under Listing Rule 1.1 condition 3. A comparison of the Company’s expenditure since listing against the estimated Use of Funds statement is set out below as required under Listing Rule 5.3.4.

		Actual Use of Funds
	Estimate for the two years		Variance
		to 31 December
Expenditure Item	after ASX Admission		Under/(Over)
		2022
	($’000)		($’000)
		($’000)
Exploration – Namban Project	1,425	917	508
Exploration – Lyons River Project	1,775	1,894	(119)
WorkingCapital and Administration	1,673	1,129	544
Estimated expenses of the Offer	541	561	(20)
TOTAL	5,414	4,501	913

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Financial Commentary

The Appendix 5B for the quarter ended 31 December 2022 provides an overview of the Company’s financial activities. Exploration expenditure for the quarter was $356K. Corporate, staff costs and other expenditure for the quarter was $261K. The total amount paid to Directors of the Company, their associates and other related parties was $135K which includes salary and fees and rent paid to Borden Holdings Pty Ltd (an entity associated with Mr David Quinlivan) for leasing the corporate offices.

The Company’s cash balance at the end of the quarter was $1,362K.

ENDS

For more Information:

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

Harjinder Kehal, Managing Director on +61 400 044 890 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.

3. Segue Resources Ltd (renamed Arrow Minerals Ltd) (ASX: AMD – ASX announcement 20 September 2017, Assays confirm lithium discovery at the Malinda Project

4. Red Dirt Metals Limited (ASX: RDT – ASX announcement 12 September 2022, Yinnetharra Lithium Project Acquisition

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.

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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.

ASX Releases during the December Quarter 2022

Date	Description
4 October 2022	LongTerm Incentives on Deliveryof Exploration Success
5 October 2022	Rare Earth Potential at Lyons River Project in Gascoyne
21 October 2022	Successful $175,000 Co-funded DrillingGrant for Namban
27 October 2022	QuarterlyActivities/Appendix 5B Cash Flow Report September Quarter 2022
28 October 2022	Notice of Annual General Meeting/ProxyForm
15 November 2022	Highgrade base metals & silver results at Brownsprospect
28 November 2022	Gold anomalism 3km strike length at Goodbody prospect
30 November 2022	AGM Presentation
30 November 2022	Results of 2022 Annual General Meeting
1 December 2022	New REE & Li Prospectivepegmatite districts identified
6 December 2022	Follow upAircore drillingcommences at Brownsprospect
15 December 2022	Notification regardingunquoted securities - DAL
15 December 2022	Change of Directors Interest Notices X 3

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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 Proterozoic Capricorn Orogen (Figure 9).

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Figure 9: Lyons River Project location diagram

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About Namban

Namban Project comprises an under explored ground package totalling 437 km[2] located in the mid-north part of the wheatbelt region, deemed by Dalaroo to be prospective for magmatic intrusion related Ni-CuPGE deposits. The Company has a 100% controlling interest in the Namban Project, comprising six tenements extending from the townships of Moora in the south to Three Springs in the north (Figure 10).

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Figure 10: Namban Project tenements location map.

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TENEMENT SCHEDULE AS AT 31 DECEMBER 2022

Project Name	Location	Tenement Licence	Interest held at 31 December 2022
Lyons River	WA	E09/1824	100%
Lyons River	WA	E09/1825	100%
Lyons River	WA	E09/2098	100%
Lyons River	WA	E09/2102	100%
Lyons River	WA	E09/2304	100%
Lyons River	WA	E09/2305	100%
Lyons River	WA	E09/2312	100%
Lyons River	WA	E09/2713 (application)	100%
Namban	WA	E70/4694	100%
Namban	WA	E70/4928	100%
Namban	WA	E70/5702	100%
Namban	WA	E70/5494	100%
Namban	WA	E70/5502	100%
Namban	WA	E70/5604	100%

Note: All the Tenement Licences are granted, apart from E09/2713

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Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity

DALAROO METALS LTD ABN Quarter ended (“current quarter”) 23 648 476 699 31 December 2022

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	2 (356) - - (119) (142) - 1 - - - -	2 (809) - - (247) (212) - 2 - - - -
	(614)	(1,264)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - - - - -	- - (50) - - -

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ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

Page 1

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows 2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	Current quarter $A’000 - - - - - - - -	Year to date (6 months) $A’000 - - - - - - - -
	-	(50)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	1,976 (614) - -	2,676 (1,264) (50) -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	Current quarter $A’000 -	Year to date (6 months) $A’000 -
	1,362	1,362
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,362 - -	1,976 - -
	1,362	1,976
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 135 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.		135
		-

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-

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ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (614) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (614) Cash and cash equivalents at quarter end (item 4.6) 1,362 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 1,362 Estimated quarters of funding available (item 8.6 divided by item 8.3) 2.2 Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(614) - (614) 1,362 -
		1,362
	Answer: N/A
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/A
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: N/A
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 23 January 2023

Authorised by: The Board of Dalaroo Metals Ltd

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An

• See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

2. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

3. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

4. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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• See chapter 19 of the ASX Listing Rules for defined terms.