DALAROO METALS LTD — Interim / Quarterly Report 2024

Jan 29, 2024

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ASX ANNOUNCEMENT:
ASX: DAL 30 January 2024
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Quarterly Activities Report For Period Ended 31 December 2023

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Highlights

Lyons River Project, Gascoyne Region of Western Australia

Copper

• High grade copper assay results of 54.8%* from rock chip sampling over the expanded 3.5km X 2km Browns base metal Pb-Zn-Ag-Cu prospect. Copper assays of 1.64% also recorded at the Four Corners Pb-Zn-Ag prospect located 5km to the west and other areas following a review of historical data and assessment of copper potential of Lyons River Project.

Gold

• Gold-bearing, outcropping quartz veins defined over 200m strike length at Goodbody West with higher grade rock-chip gold assay results of up to 6.25g/t Au. Goodbody gold soil geochemical anomaly extends over a strike length of 6km with peak values of 132ppb Au at Goodbody West, 93ppb Au at Goodbody Central and 50ppb Au at Goodbody East.

Upcoming drill programs – March and June 2024 quarters

Goodbody gold

• With the completion of the heritage surveys over Goodbody West, Goodbody Central and Goodbody East and POW approvals already in place, a focused shallow RC drill program to take place in February 2024.

Browns Pb-Zn-Ag

• Four deep diamond drill holes using Exploration Incentive Scheme grant of $180,000 awarded.Dalaroo to test the significant Browns BHT mineralised system base metal ( 10m @ 1.04% Pb, 0.49% Zn, 2.85g/t Ag from 37m (LRAC010) Including 1m @ 3.13% Pb, 0.24% Zn,5g/t Ag from 38m and copper target. Area wide heritage surveys completed at Browns and POW approvals are in place for drill testing in April 2024.

Lithium

• Dalaroo’s Lithium Mineral Rights at the Lyons River Project have been acquired by Delta Lithium Limited. Consideration for the transaction is $1,000,000, consisting of $500,000 in cash and $500,000 in Delta Lithium ordinary shares. In addition, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River Project tenements (a commitment of $280,000 per annum at the date of the Sale Agreement) over the first 3 years.

*The assay result of surface samples may not be representative of copper mineralisation at depth.

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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 2023.

Lyons River Project

Dalaroo’s Lyons River Project comprises a strategic (100% owned) land position of 838km[2] within the Proterozoic Mutherbukin Zone of the Gascoyne Province, Western Australia. Lyons River is prospective for, BHT type mineralised base metals (Pb-Zn-Ag-Cu), vein/shear related gold, REE and lithium deposits (Figure 1).

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Figure 1: Dalaroo Metals, Lyons River Project in the Gascoyne Province showing neighbouring REE and lithium companies and prospects.

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Copper potential

High grade copper assay results of 54.8% coupled with silver grades of 80g/t have been returned from rock chip sampling program over the Browns base metal prospect (Figures 2). Gossanous outcrops sampled to the east of the AC drilled area have returned lead (Pb) values of up to 0.53% complemented by anomalous zinc (1140ppm) and copper (420ppm) at the Lyons River Project (Refer DAL ASX Announcements from 31 October 2023).

A rock chip sampling program at the expanded 3.5km X 2km Browns base metal Pb-Zn-Ag prospect has returned high grade copper with assay results of up to 54.8% at Lyons River (Figure 2). Copper assays of 1.64% have also been recorded from rock chip sampling previously completed at the Four Corners prospect located 5km to the west of Browns (Refer DAL ASX Announcements from 16 March 2022).

Previous historical shallow RC drill program in 2008 at Four Corners returned an intersection of 3m @ 0.50% Cu including 1m @ 0.92% Cu from 56m, with mineralisation associated chalcopyrite (Figure 3) (Refer DAL ASX Announcements from 16 March 2022). Copper assay results from both Browns and Four Corners prospects are accompanied by silver assays of 80.0g/t and 21.5g/t respectively,

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Photo 1: Copper-oxide (malachite) mineralisation in surface excavation and malachite rich rock chips at Browns prospect

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Photo 2: Outcropping copper oxide mineralisation (malachite) at Four Corners prospect

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Four Corners
Browns
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Figure 2: Browns prospect, Pb soil geochemical anomalies (previously reported) and Pb rock chip sample assays, high-grade copper rock chip sample location and proposed Induced Polarisation survey lines.

Browns Pb-Zn-Ag Prospectivity and Potential

The Browns Prospect 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 4). Two phases of AC drilling at the Browns Prospect tested a very compelling broad Pb-Zn soil and rock chip geochemical anomaly (max 1445ppm Pb, 1080ppm Zn) covering an area of 3.5km X 2.5km, associated with extensive iron-rich and high-grade gossanous material at surface with results of up to 39.6% Pb, up to 0.71% Zn and up to 82g/t Ag (Refer DAL ASX Announcement from 15 November 2022).

Detailed gravity work has complemented historical surveys by BHP and shows a coincident gravity low suggesting an area of possible deepening basin development. An interpreted sub-basin fold or trough structure at Browns may represent a deeper portion of the paleo-basin architecture and a favourable environment for formation of prospective host stratigraphy (Figure 5). (Refer DAL ASX Announcements from 25 July 2022 and 15 November 2022).

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Figure 3: Four Corners prospect, drill hole location map with historical RC and diamond holes, DAL’s recently completed RC drill holes and base metal results.

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Dalaroo’s AC drill programs at Browns have been successful in intersecting zones of interbedded psammitic to pelitic lithologies together with multiple zones of disseminated base metal sulphides such as galena and sphalerite. More than 800m of strike length lead-zinc mineralisation has been outlined at Browns which remains open in all directions (Figure 5). Ag intercepts are coincident with Pb and Zn assays and further support the presence of BHT/SEDEX-style of mineralisation (Figure 6).

AC drilling programs have intersected thick zones of variably-pyritic, biotite-quartz gneiss, likely representing metamorphosed shales, and found to be enriched in silver, returning 63m @ 1.76g/t Ag from 16m and 16m @ 1.43g/t Ag from 68m (Figures 6) and has outlined the footprint of the Pb-Zn-Ag mineralized system at the Browns prospect to approximately 400m in thickness in its central portion. Significant Pb-Zn sulphide intercepts of 10m @ 1.04% Pb, 0.49% Zn, 2.85g/t Ag from 37m (LRAC010) Including 1m @ 3.13% Pb, 0.24% Zn, 5g/t Ag from 38m and 63m @ 1.76g/t Ag from 16m adds weight to this thesis. (Refer DAL ASX Announcement from 14 February 2023).

AC drilling undertaken highlights the prospectivity of the area and possibility of discovering a significant BHT-SEDEX-style deposit at Browns prospect. Evidence that lead-zinc-silver mineralizing fluids have circulated at the basin-wide scale five kilometres east from the already drilled Four Corners Prospect supports this theory. This leads to the conclusion there may be multiple base metal deposits at the Lyons River Project.

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Figure 4: Lyons River, Browns prospect and other five Pb-Zn soil geochemical prospects /targets over greyscale 1 Vertical Derivative Aeromagnetics image.

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Figure 5: Map view of aircore drilling completed at Browns on ground gravity data basemap.

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Figure 6 : Browns prospect, simplified cross section A-B (see Figure 5) displaying selected mineralised drilling intercepts.

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Goodbody gold

Gold mineralization in outcropping quartz veins at the Goodbody West Prospect has been bolstered by recent results from further systematic sampling (Figures 7 and 8). Infill soil sampling has outlined robust gold in soil anomalies with peak gold values of 132 ppb Au at Goodbody West, 93ppb Au at Goodbody Central and 50ppb Au at Goodbody East, complemented by outcropping, mineralized, gold-rich quartz veins. The footprint of the gold mineralized rock-chips within the broader Goodbody Prospect lie within a broader, 6km long, gold in soil anomaly at 2ppb threshold (Figure 7).

At Goodbody infill and close spaced systematic soil sampling completed has defined the following:

• Goodbody West gold in soil anomaly above 10ppb Au has been defined over a strike length of 450m.

• Goodbody Central gold in soil anomaly above 10ppb Au has been defined over a strike length of 300m.

• Goodbody East gold in soil anomaly above 10ppb Au has been defined over a strike length of 500m.

The sampled quartz veins are typically 5-30cm thick and are comprised of mainly quartz with minor biotite and locally, ferruginous oxide phases. They form sub-parallel to the pervasive structural fabric within foliation planes and commonly contain internal breccia zones consisting of Fe-oxide and silicarich matrices, surrounding fragmented quartz vein clasts. The samples were composed of either vein material, the adjacent wall rocks, or a combination of both. At Goodbody West, gold concentrations including 1.42g/t, 1.70g/t and 5.52g/t (Figure 7) have been returned from Dalaroo’s sampling of a particular set of quartz veins, hosted within a metasedimentary rock package comprising pelitic schist, siliceous chert, ironstone and BIF-style units. Historic rock chip sampling of quartz veins in this area returned up to 6.25g/t Au. In the Goodbody Central target area, pelitic schists are the dominant host rocks but zones of iron-oxide-rich, siliceous vein breccias and quartz-biotite-altered wall rocks are also prevalent (e.g. sample 230105_23, 0.48g/t Au). (Refer DAL ASX Announcements from 1 February 2023).

It is noted that high-tenor soil anomalies and multiple rock-chip assays up to 5.52g/t Au (5520 ppb Au) associated with the Goodbody West, Central and East targets spatially coincide with intersections between interpreted WNW and NNE-trending structures (Figures 7 and 8). Such structural intersection zones represent potential zones of intensified deformation, that may be associated with favourable sites of hydrothermal fluid movement and gold mineralization. As such, the Goodbody gold targets are considered high priority for follow-up exploration work. (Refer DAL ASX Announcements from 28 November 2022 and 1 February 2023).

Turbo Well

A new gold target has been defined at Turbo Well with gold-in-soil anomalism extending over a strike length of 2km, adjacent to a regional ESE structural trend (Figure 9). A peak value of 47ppb Au is defined from results of both historical soil sampling and follow-up sampling by Dalaroo this year (Refer DAL ASX Announcements from 9 November 2023).

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Figure 7: 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.

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Figure 8: Goodbody West gold prospect and interpreted regional structures. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD base map. In this figure white text refers to rock chip assay values and black text refers to soil assays values.

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Figure 9: 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.

Lithium

Dalaroo executed a binding agreement ( Sale Agreement ) with Delta Lithium Limited ( ASX: DLI or Delta Lithium ) to sell the rights to lithium, caesium and tantalum minerals ( Lithium Minerals ) at its Lyons River Project ( Lithium Mineral Rights ). The consideration of $1,000,000 for the transaction comprised $500,000 in cash and $500,000 of DLI ordinary shares. In addition to the consideration, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River Project tenements (a commitment of $280,000 per annum at the date of the Sale Agreement) for a period of 3 years from Completion. The Company will still retain ownership of the Lyons River Project tenure (Table 1) and hold rights to all other metals and minerals apart from the Lithium Minerals (Refer ASX announcement dated 1 December 2023).

During the December Quarter 2023 follow-up/infill soil geochemistry, completed on a 200m X 100m pattern (first pass sampling was completed on lines 1km X 100m) was conducted at Dalaroo’s View Hill prospect.

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A total of 813 soil samples were collected. One of the lithium targets (3km long and 0.5km) had a peak value of 334 ppm Li2O and is comparable to lithium anomalism obtained by Dalaroo’s neighbours (Refer MI6 ASX Announcement dated 25 July 2023 and 10 October 2023). Importantly, the lithium targets lie within the large pegmatite cluster measuring 9km X 6km in the eastern part of the project, where pegmatites up to 100m wide and 3km long have been mapped. The significant lithium anomalism outlined to date remains open to the south, west and east (Figures 10 and 11).

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View Hill
Lithium targets
See Fig 4
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Figure 10: Structural domain map with north-south faults and significant lithium targets outlined at View Hill Lyons River Project.

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View Hill lithium targets
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Figure 11 : View Hill: lithium soil geochemistry showing main anomalous trends, open to the south, west and east.

Structural mapping within the Lyons River Project identified several major shear zones, each over 30km long and 6km wide, that formed during the Neoproterozoic Edmundian Orogeny. This orogeny was the fundamental driver of deformation along the nearby Ti Tree Shear Zone, and it was responsible for the emplacement of spodumene pegmatites in the Yinnetharra District, which are now the focus of Delta Lithium’s resource drilling activity. Pegmatites emplaced during the Edmundian Orogeny are associated with granite intrusions of the Thirty Three Supersuite (TTS) and recent mapping has confirmed that intrusive rocks of the TTS were also emplaced within shear zones at the Lyons River Project (Figure 12). The TTS intrusions comprise granite stocks and granitic pegmatite (microcline-quartz-muscovitetourmaline).

Rock chip sampling completed to date of outcropping pegmatites at View Hill has confirmed whole rock geochemistry considered highly fertile for LCT-type pegmatites (Refer ASX Announcement from 1 December 2022) and Table 2. This is indicative of highly fractionated LCT pegmatites and supports the interpretation that the shear zone/corridor is fertile, with potential for higher grade lithium at depth.

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Figure 12: Lyons River Project – Major shear zone/corridor active during the Edmundian Orogeny, with potential for lithium bearing pegmatites. Rock chip assay results are detailed in Table 2.

Next Steps at Lyons River

Gold

With the completion of the heritage surveys over Goodbody West, Goodbody Central and Goodbody East and POW approvals in place, a focused air-core and/or shallow RC drill program is proposed to take place in February 2024. Further systematic soil sampling is proposed at the 2km strike length Turbo Well prospect. In addition, rock-chip sampling will be undertaken of outcropping quartz veins to outline the surface expression of the gold mineralisation.

Copper/Pb-Zn-Ag

Dalaroo proposes to carry out a Dipole-Dipole Induced Polarisation (DDIP) geophysical surveys in the next phase of exploration. The goal of these surveys will be the delineation of a mineralised body at depth that possesses not just the surface geochemical signature, but also the geophysical properties characteristic of a significant BHT/SEDEX deposit and copper mineralisation in the Browns Prospect area prior to the EIS diamond drill program (Figure 2). ( Refer DAL ASX – Announcements from 26 April 2023).

Deeper diamond drilling is expected to allow a better understanding of the geological transition to more pyritic and phyllosilicate-rich units identified at the southern limits of the drill tested area interpreted to represent a transition in the pre-metamorphic protolith stratigraphy to lower energy sedimentary units, considered more prospective for BHT/SEDEX type deposits.

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Namban Project

The Manning Prospect is located 150km north of Perth and 90km north of Chalice Mining’s world class Julimar Ni-Cu-PGE Project (Figure 13).

A diamond drill program partly funded by Dalaroo’s successful application in Round 26 of the Exploration Incentive Scheme (EIS) sponsored by the Government of Western Australia (grant was for an amount of up to $175,000, structured as a contribution towards 50% of direct drilling cost) was designed to test large Ni-Cu-PGE+Au geochemical anomalies (Pd soil anomaly with a peak value of 28 ppb coincident with Cu peak value of 605 ppm and Ni peak value of 206 ppm) covering an area of 2km X 0.5km that are coincident with Induced Polarisation (IP) anomalies with high chargeability values of up to 40 mV/V. Elevated copper, gold and silver assays up to 0.11% Cu, 0.61 g/t Au and 14.5 g/t Ag* were intersected in the drilling program.

Next Steps at Namban

Given the significant size of the surface geochemical anomalism (Ni-Cu-PGE*+Au) outlined (measuring 2km X 0.5km) at the Manning Prospect and only four holes drilled using Dalaroo’s successful grant under the EIS $175,000, further exploration work is warranted. Future work at the Manning Prospect will include ground gravity surveys, which are expected to complement and expand upon the existing geochemical and geophysical datasets which have helped to delineate encouraging sulphide copper and gold mineralisation.

Gravity surveys will provide additional insight through mapping the local density variation and potentially define deep seated intrusions or sources to the base metal mineralisation and differentiate prospective mafic and gabbroic units from the more recent Proterozoic dolerite dykes which trend through the project and provide targets for potential follow up drill programs.

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Figure 13: Namban Project Location along the northern extent of the arcuate Julimar – Yule Corridor, truncated by the Darling Fault (dark blue) to the west. Image is 1VD-RTP magnetics draped with Bouger Gravity

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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	82,750,000
Unlisted Options - exercisable at $0.25 each, expiring28 September 2025	8,000,000
Unlisted Options – exercisable at $0.25 each, expiring28 September 2024	5,000,000
Unlisted Options – exercisable at $0.08 each, expiring 5 July 2025	14,375,000

During the December Quarter 2023, the Company conducted a placement to new and existing sophisticated investors, including members of the Board, raising $270,000 via the issue of 6,750,000 Shares at an issue price $0.04 per share and 3,375,000 free attaching options exercisable at $0.08 each, expiring 5 June 2025.

Financial Commentary

The Appendix 5B for the quarter ended 31 December 2023 provides an overview of the Company’s financial activities. Exploration expenditure for the quarter was $321K. Corporate, staff costs and other expenditure for the quarter was $274K. The total amount paid to Directors of the Company, their associates and other related parties was $153K 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 $742K.

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.

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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.

1The identification of pegmatites in the mapping completed to date does not imply the presence of lithium mineralisation. The presence of any lithium mineralisation will be determined by drilling and laboratory analyses.

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ASX Releases during the December Quarter 2023

	Description
4 October 2023	2023 Annual General Meeting– KeyDates
10 October 2023	New Lithium Targets at Lyons River Project
10 October 2023	TradingHalt
12 October 2023	New Lithium Targets at Lyons River Project - Updated
13 October 2023	Suspension from Quotation
16 October 2023	Extension of VoluntarySuspension
18 October 2023	Proposed Issue of Securities - DAL
18 October 2023	Proposed Issue of Securities - DAL
18 October 2023	Reinstatement to Quotation
20 October 2023	Application forquotation of securities - DAL
20 October 2023	Completion of Placement and Notice Under Section 708 (5) (e)
27 October 2023	QuarterlyActivities/Appendix 5B Cashflow Report
27 October 2023	Notice of Annual General Meeting/ProxyForm
31 October 2023	High Grade Copper at Browns Pb-Zn-AgProspect at Lyons River
8 November 2023	GoodbodyProspect Bolstered and New Gold Targets
9 November 2023	GoodbodyProspect Bolstered and New Gold Prospect – Updated
30 November 2023	Results of Annual General Meeting
1 December 2023	Delta Lithium Acquires Lyons River Project Lithium Mineral Rights
8 December 2023	Application for quotation of securities - DAL
8 December 2023	Completion of Placement and Notice Under Section 708 (5) (e)
8 December 2023	Change of Director’s Interest Notice X 3

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TENEMENT SCHEDULE AS AT 31 DECEMBER 2023

Project Name	Location	Tenement Licence	Interest held at 31 December 2023
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	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%

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About the Lyons River Project

Lyons River Project is located approximately 1,100km north of Perth and approximately 220km to the north-east of the coastal town of Carnarvon, Western Australia (Figure 8). It 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 an emerging lithium and rare earth element hotspot.

The Project comprises approximately 740km[2] of the Durlacher Super Suite and Halfway Gneiss, transected by major NW-trending shear zones. This same stratigraphy and comparable structural setting hosts significant REE deposits nearby to the north, at the Hastings Technology Metals Yangibana and Dreadnought Resources Mangaroon projects, and to the south at Kingfisher Mining’s Mick Well Project (Figure 14).

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Figure 14: Lyons River Project location diagram

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Sweet Spots for BHTs/ SEDEXs

Geoscience Australia’s 2019 study, using surface wave tomography and a parameterisation for anelasticity at seismic frequencies shows 85% of world’s sediment hosted base metal deposits occur within 200km of the edges of thick lithosphere. The Australian model shows striking correlation between major sediment hosted deposits and edge of thick lithosphere, defined by 170km lithosphereaesthenosphere boundary (LAB) contour. Lyons River is located 156km away from the 170km LAB contour (Figure 15).

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Figure 15: Distribution of BHT/SEDEX deposits, function of lithospheric thickness in Australia

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About the Namban Project

Namban Project comprises an under explored ground package totalling 437km[2] located in the mid-north part of the wheatbelt region, deemed by Dalaroo to be prospective for magmatic intrusion related NiCu-PGE 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 16).

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Figure 16: Namban Project tenements location map.

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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 23 648 476 699	Quarter ended (“current quarter”)	Quarter ended (“current quarter”)
	31 December 2023
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	- (321) - - (140) (134) - 1 - - 24 10	- (752) - - (292) (260) - 3 - - 24 13
	(560)	(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	- - - - - -	- - - - - -

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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

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 – proceeds from sale of Mineral Rights at Lyons River Project (inc GST) 2.6 Net cash from / (used in) investing activities	Current quarter $A’000 - - - - - - - 550	Year to date (6 months) $A’000 - - - - - - - 550
	550	550
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	270 - - (31) - - - - -	671 - - (57) - - - - -
	238	613
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)	514 (560) 550	843 (1,264) 550

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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

Consolidated statement of cash flows 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	Current quarter $A’000 238 -	Year to date (6 months) $A’000 613 -
	742	742
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)	742 - -	514 - -
	742	514
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 1 153 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.		153
		-

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

Appendix 5B

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
		-	-
		-	-
		-	-
		-	-

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) (560) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) - Total relevant outgoings (item 8.1 + item 8.2) (560) Cash and cash equivalents at quarter end (item 4.6) 742 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 742 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.3 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?	(560) - (560) 742 -
		742
	Answer: Yes
	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: Yes, the Company holds shares in ASX listed DLI that can be converted into cash and the Company believes there is a high likelihood of continuing to raise capital as and when required.

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ASX Listing Rules Appendix 5B (17/07/20)

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Appendix 5B

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

• 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: Yes, by selling liquid investments and raising sufficient cash to support its current exploration programmes.

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: 30 January 2024

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

2. 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.

3. 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.

4. 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”.

5. 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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ASX Listing Rules Appendix 5B (17/07/20)

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