DART MINING NL

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DART MINING NL 2008 ANNUAL REPORT

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Dart Mining NL is a gold and base metals exploration and development company based in Melbourne, Victoria.

Dart is focused on exploration in north-eastern Victoria and southeastern New South Wales, targeting historic goldfields and structural concepts with little or no modern exploration activity.

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Dart tenements at September 2008

OUR OBJECTIVES

To explore for and discover a gold or base metals resource of sufficient size for Dart to become a gold or base metals producer;
To initiate through ongoing exploration success, building a resource base across different projects; and
To be successful in discovering and developing large gold and base metals mineralised systems in porphyry targets.

OUR VISION

The company’s prospective ground holdings, advanced project generation skills, established local relationships and experienced management group give us confidence that we will continue to advance the properties towards a significant gold and/or base metal discovery.

2007-2008 Highlights ......... 1 Mountain View ................... 11 2008-2009 Outlook ........... 1 Mt Elliot ............................. 12 Dart Targets ........................ 1 Fairley’s ............................. 13 Chairman’s Report .............. 2 Sustainability ..................... 14 CEO’s Report ..................... 4 Community ....................... 14 Exploration Review ............. 6 Environment ...................... 14 Porphyry Targets ................ 6 Health and Safety .............. 14 Unicorn .............................. 7 Board of Directors ............. 15 Morgan .............................. 9 Financial Report ................. 17 North Mammoth ................ 10 Reward Copper ................. 10 Additional Targets .............. 10 INSIDE BACK COVER Gold Targets ...................... 11 Corporate Directory

2007-2008 HIGHLIGHTS

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Significant, high-grade molybdenum anomaly identified at the Unicorn porphyry base metals/gold prospect
A second porphyry base metals/gold prospect identified at Morgan with a discovery at surface of up to 6,700ppm molybdenum

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Dart was the recipient of a Rediscover Victoria Drilling (RVD) grant from the Victorian Government for exploration drilling at North Mammoth porphyry
Drilling at Mountain View prospect has confirmed the high-grade gold pods in the main lens. Significant arsenic anomaly discovered at Mountain View gold prospect extending several hundred metres south of the historic workings
First recorded drilling undertaken at the Mt Elliot gold prospect with promising results including visible gold in drill core
Dart now holds exploration licences and applications of over 2,800km[2]

2008-2009 OUTLOOK

Focus on porphyry targets – outstanding, near-term targets
Drill testing of the molybdenum discovery at Unicorn
Continuing exploration drilling on all targets
Need to undertake additional capital raising

DART TARGETS (CURRENT AND PLANNED)

Unicorn molybdenum project
Mountain View gold prospect
Morgan porphyry
North Mammoth porphyry
Donovan Hill porphyry

The most exciting discovery of the year HEADLINE however turned out to be at one of our porphyry targets, with a significant molybdenum anomaly identified at the Unicorn prospect.

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CHAIRMAN’S REPORT

On behalf of the Board of Directors, it gives me great pleasure to present to you the Dart Mining NL Annual Report for 2008.

We are currently drilling the Unicorn prospect and early results are encouraging.

We have also extended our exploration licence (EL) areas, with the new Cudgewa and Koetong ELs granted in the year. This brings the total area of our ELs to 1,974 square kilometres with a further 831 square kilometres of exploration licence applications still pending over areas surrounding our current prospects.

The 2007-2008 year has been one of significant progress and achievement for Dart. In last year’s report, following a successful IPO and our listing on ASX, I outlined the exciting prospects ahead of us. Over the past twelve months we have undertaken substantial exploration programmes on these prospects in north-eastern Victoria, with some very encouraging results.

As they stand, our tenement holdings afford us access to some of the most prospective, under-explored ground in the north-east region of Victoria. We are very excited about the future opportunities presented by these holdings.

Exploration this year commenced with drilling of our gold prospects at Mountain View and Mt Elliot. Both programmes gave us some very positive indications of gold mineralisation and additional drilling is required to further their evaluation. The drilling at Mt Elliot was the first ever recorded programme, and there are a number of targets which still warrant further testing. Dart also undertook initial drilling in the Buckland EL at the historic Fairley’s project.

As you will have noticed, our share price has held relatively steady over much of the past 12 months, despite market uncertainty and upheavals, exacerbated by US credit conditions. We are fortunate to have a loyal shareholder base and I wish to thank shareholders for their ongoing support.

The most exciting discovery of the year however turned out to be at one of our porphyry targets, with a significant molybdenum anomaly identified at the Unicorn prospect. The discovery was made by rock chip and soil sampling guided by Dart’s structural modelling.

I would like to take this opportunity to thank all of our employees and contractors for their contribution in establishing Dart during the year and their commitment to the ongoing development of the company.

Once again, I thank all stakeholders for their involvement and support over the last year and look forward to sharing with you the rewards of successful exploration over the coming years.

When Dart was established, our founding geologists had identified a number of porphyry targets within our ELs, earmarked for future exploration. We decided to advance our geochemical exploration of these targets after encountering some delays in accessing drill rigs early in the year, with exceptional results.

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Chris Bain Chairman

CEO’S REPORT

Dart Mining NL was founded on the vision of two of our directors, geologists who have spent years scouring the terrain around Corryong and Buckland in northeastern Victoria. The expertise of an experienced board and management team helped that vision become the company it is today; one founded on history, high potential targets and an experienced and committed management team.

Initially focused on exploring prospects capable of early production, and hence cash-flow, from near surface mineralisation, we look forward to being able to rapidly realise the value of our prospects and pass that value onto our shareholders.

We have conducted a number of detailed exploration programmes over the year, including geochemistry and drilling programmes, and have been pleased with the exciting results we have received to date.

Porphyry Targets

In June, Dart reported a significant molybdenum find defined by surface soil and rock chip samples at the Unicorn porphyry base metals prospect south east of Corryong in Victoria.

Molybdenum, or “moly” as it is commonly referred to, is a naturally occurring metal used primarily as an alloying agent in steel, cast iron and superalloys to enhance hardness, strength, toughness and corrosion resistance. Molybdenum usage has doubled in recent years and is expected to increase in demand due to its superior versatility, low toxicity compared to most metals, and because there are few options for its substitution.

The Unicorn prospect is one of many porphyry targets we have identified within our ELs. The molybdenum find was made through an extensive geochemical survey conducted over the porphyry targets within EL 4726 focusing on the intersection of the Empress and Zulu corridors.

Dart had planned to conduct this survey in 2009, however this was brought forward when there was a

delay accessing drill rigs to test the gold targets at Fairley’s, Mt Elliot and Mountain View.

Follow-up geochemistry confirmed and strengthened the initial results, increasing the mineralisation zone to 23 hectares. Based on these results, Dart has planned drilling programmes over the area with the aim of discovering an economically viable resource for future development.

It is common for this style of porphyry mineralisation to occur in clusters. The initial survey also highlighted a similar anomaly at the Morgan prospect 7km to the south-west of Unicorn in the same mineralisation corridor. The results at Morgan support those at Unicorn and highlight the potential of Darts underexplored porphyry fields within the Cravensville Volcanic Arc.

During the year Dart was awarded a Rediscover Victoria Drilling grant from the Victorian Government for $59,194, for another of our porphyry targets, North Mammoth. The RVD programme has been designed to promote and assist exploration in Victoria, particularly at greenfields sites. Geochemistry surveys at North Mammoth have so far identified anomalous gold, silver and base metals (including tin), molybdenum, bismuth, lead and copper traces.

This new focus on our porphyry targets does not mean we have stopped looking for gold. It just means we have a greater range of opportunities to explore.

Gold Targets

During the year, Dart conducted a number of drilling programmes at our gold prospects, including the first recorded drilling at Mt Elliot. The RC

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Diamond drill core - Unicorn prospect

and Diamond drilling programmes have focused on a number of old and new targets in the Dart EL at Mountain View and Mt Elliot, and in the Buckland EL at Fairley’s.

The targets for this drilling campaign were identified through geochemistry surveys of soil, water and rock chip samples, taken at each site over the past 12 months.

We are particularly encouraged with the identification of anomalies in soils to the south of Mountain View highlighted in both the drilling and soil sampling. Dart will focus further exploration at the Mountain View prospect, to depth-test both the main mineral structure and the Western Anomaly.

Further drilling is also planned to further test gold targets at the Mt Elliot prospect over the coming months.

Sustainability

Throughout the year, Dart has made sustainability a focus of the company’s activities with the development of Occupational Health and Safety and Environmental Management manuals.

Our drilling programmes are subject to strict regulation by Victorian authorities and we continue to work closely with the necessary departments to deliver best practice and meet all environmental requirements.

Dart has also stepped up its engagement with the local communities in the region, conducting a number of group and one-on-one meetings over the year to keep the local people informed of the company’s activities. We are fortunate to have a very supportive local community,

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Siliceous sericitic quartz-feldspar porphyry & lithocap
MT UNICORN MOLYBDENUM PORPHYRY
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and are looking forward to continuing to work with them in the future.

all the necessary equipment required to progress our exploration targets with the objective of realising the true potential of our assets.

Throughout the year we increased our team which includes a number of staff from the local region. We hope to be able to retain and expand on our skilled team as we progress our exploration activities over the coming years.

The coming year looks set to be one of consolidation, focus and continued growth as we progress towards identifying an economic resource at our gold or porphyry targets to support a future mining operation.

Outlook

You will recognise that we have had a very productive 12 months, and still have a lot more exploratory work to do across all our tenement areas. We have now secured a quality team and

John Quayle

Chief Executive Officer

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HEADLINE
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Porphyry Targets

Porphyry targets are deposits of igneous intrusive rock, formed when volcanic magma cooled and solidified within the Earth’s crust, and where hydrothermal activity can result in zoned distribution of base and precious metals mineralisation.

The key porphyry targets for Dart are:

Unicorn – A significant molybdenum anomaly has been identified. A follow-up drill programme has commenced.
Morgan – Situated nearby to Unicorn in the Zulu–Empress corridor intersect. Interpretation of geochemical sampling is underway, and drilling is planned.
North Mammoth – Located in the Zulu–Mammoth corridor intersect to the south. A drill programme commenced in August 2008 as part of the Rediscover Victoria Drilling (RVD) grant.
Reward Copper – Anomalous copper-bismuth association identified. Follow-up drilling has commenced.
Donovan’s Hill – A ringed geochemical and geophysical anomaly interpreted to indicate a concealed precious and base metal target at depth in the intersection of the Zulu, Mammoth and Dart corridors.

EXPLORATION REVIEW

Dart has made considerable progress towards understanding the porphyry style of mineralisation in its tenements by conducting geological, geophysical, metallogenic and structural evaluation and analysis through geological time scales, aided by 3D digital modelling.

Using this modelling, the company has identified a number of porphyry targets, many of which have anomalous geochemistry and structure indicative of reduced intrusive related gold (RIRG) style base metals-gold-silver mineralisation.

This style of mineralisation is associated with the Cravensville Volcanic Arc, which runs through NSW and Victoria, and has similarities to mineralisation at Fort Knox and other major gold and base metal deposits in the Tintina belt of North America.

Strong groups of structures define mineralisation corridors. The model used by Dart geologists predicts a higher probability of disseminated gold mineralisation occurring in originally thin earth crust environments within certain structurally prepared sites, namely within these corridors and especially where they intersect.

A number of differently orientated corridors have now been identified including the Dart, Zulu, Dinner Creek and Buckwong Creek corridors, the TowongTawonga corridor and the Empress and Mammoth corridors (see Figure 1).

Over the past year, Dart has conducted geochemical sampling over some of its porphyry targets in the Dart EL 4276, with soil and rock chip sampling on a 100 x 100 metre grid.

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Figure 1: Mineralisation Corridors

Dart has focused initial exploration of its porphyry targets on the intersection of the Empress and Zulu corridors where the Unicorn and Morgan molybdenum anomalies have been identified.

Existing roads and access tracks in the area allowed initial exploratory drill access to the site with minimal disturbance to the surrounding environment.

Unicorn

Geochemical results indicate the presence of a large high-grade molybdenum (Mo) anomaly at the Unicorn prospect, with average surface grades of over 450ppm Mo (parts per million) within the +220ppm grade contour covering 23 hectares (see Figure 2).

The Unicorn project is located in State forest 20 kilometres south of Corryong, a regional centre for north-east Victoria with its own airport. It is also close to the Snowy Mountains Hydro-Electric Scheme which could provide a power source for future development.

EXPLORATION REVIEW

The geochemical survey indicates a large, central, circular zone of 650 x 750 metres of anomalous molybdenum, with significant silver, copper and bismuth accompanying the molybdenum anomaly. Analysis of more than 1,300 soil, rock and float geochemical samples indicates that molybdenum mineralisation is associated with a silicified lithocap over and surrounding the Unicorn porphyry.

Nearby areas of rock outcrop show extensive siliceous hydrothermal alteration (veins of quartz produced as a result of hot fluid circulation during volcanic activity) and boxworks (thin honeycomb shaped blades of mineral that remain after the sulphides have dissolved away through surface weathering) – both of which support Dart’s interpretation of a major mineralised system.

The initial geochemical sampling on a 100 x 100 metre grid identified an area of 20 hectares with an average molybdenum grade of 440ppm within the +220ppm grade contour with soil, rock float and chip samples peaking at 997ppm or 0.097% Mo. Follow-up geochemistry on a 50 x 50 metre grid has extended this mineralisation area to 23 hectares with an average grade of 450ppm and a peak of 1,050ppm Mo.

The surface grades identified at Unicorn are unique, geochemically among the highest reported worldwide compared to its large areal extent and highly consistent across the entire mineralisation zone. The area also has historic precedence with the region contributing to Australia’s role, prior to World War One, as the world’s primary supplier of molybdenum.

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Following approval by Victorian Authorities in July, a drilling programme commenced on 6 August to test the target area at depth. The drill plan covers both the Unicorn and Morgan prospects and includes rotary air blast (RAB) drilling along accessible ridge tracks within part of the molybdenum anomaly zone. Some reverse circulation and diamond drilling will also be conducted to test deeper sections of the anomaly.

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Figure 2: Unicorn Geochemistry

Molybdenum

Molybdenum is a metallic element used principally as an alloying agent in steel, cast iron and superalloys to enhance hardness, strength, toughness and corrosion resistance.

Molybdenum usage has doubled in recent years and is expected to increase

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in demand due to its superior versatility, low toxicity compared to most metals, and because there are few options for its substitution.

First use of new molybdenum:

25% used in the stainless steel industry
50% used in construction steel, tool and high-speed steel and cast iron industries

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Morgan

The Morgan porphyry prospect is located seven kilometres south-west of the Unicorn prospect, also within the Empress–Zulu corridor intersect, and shares many similarities.

The molybdenum contour and surface map (Figure 3) reveals the Morgan prospect comprises a ring-like stockwork around the Mt Morgan dacitic intrusive.

A 2.9 x 2.0 kilometre (approximately) geochemical grid was sampled on 100 metre centres from which the ring of molybdenum anomalism was identified. The anomaly, which measures 50 - 300 metres in width, has been defined in a 2 x 1.3 kilometre ring, with sporadically high peaks of molybdenum at 6,600ppm Mo, Tin at 3.14% Sn and Bismuth up to 698ppm Bi.

The cylindrical nature of the Morgan anomaly indicates that depth targets, with potentially high levels of mineralisation, may occur.

Dart intends to test this target with initially some shallow RAB/RC and diamond drilling to 60 metres depth.

25% used in chemicals including lubricants for oil production

Currently, 60% of the world’s molybdenum is produced as a byproduct of copper mining, with the three largest producers being Chile, Bolivia and Canada.

It is estimated that a new 15 million tonnes per annum mine with a typical mining grade of 600ppm Mo is required per year to meet the increasing world demand.

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Figure 3: Morgan Geochemistry

Results at Morgan augment those at Unicorn and demonstrate the potential of Dart’s underexplored porphyry fields within the Cravensville Volcanic Arc.

EXPLORATION REVIEW

North Mammoth

North Mammoth was the first of the porphyry targets in the Dart exploration licence (EL) to undergo detailed exploration. Earlier geochemical sampling identified and confirmed the presence of a prospective gold, silver and base metals mineralised system which warranted further exploration.

The North Mammoth prospect, which is situated in the south-west corner of the Dart EL between Corryong and Benambra, is the focus of a Rediscover Victoria Drilling grant for greenfields exploration in Victoria, received from the Victorian State Government in February 2008.

Diamond drilling at the North Mammoth prospect was undertaken in August for a total of approximately 700 metres of drilling up to 275 metres depth.

Drilling aims to discover extensions to the Mammoth reduced intrusive related gold (RIRG) style porphyry mineralisation, believed to be concealed beneath a major regional thrust fault slice. The modelling suggests the fluid movement was concentrated into a vortex within the intersection of three mineralisation corridors, hence the interest in this zone which includes the Mammoth and Donovan’s Hill prospect. Modelling and geophysics also suggest the North Mammoth sector is connected with a ring-like anomaly surrounding Donovan’s Hill to the north, thought to represent a concealed porphyry stock at depth.

Dart’s interpretation of the systems encourages further exploration of the porphyries within this tenement with the objective of a major gold or base metals discovery.

Reward Copper

The Reward Copper mine was a small underground operation in the early 1940s, for which there are no production statistics available.

Historical reports indicated that mining at the Mt View section (allotment IV) was on four lenses and at least two shafts were sunk, one 10 metres deep with a crosscut from which lodes – up to 5.1 metres wide – were intersected, containing native copper, cuprite and malachite mineralisation with grades up to 6% Cu and 1.5g/t Au.

Since acquiring this EL, Dart has completed a soil sampling grid (20 x 20 metre centres). Rock chip sampling identified the presence of a particularly interesting anomalous copper-bismuth (Cu-Bi) association.

Based on results from the geochemical sampling and 3D modelling work, Dart undertook a short two hole programme of diamond drilling around the Reward Copper mine in August 2008 with results pending. The drilling will assist in determining if there is a larger concealed porphyry at depth.

Additional Targets

Dart has identified a number of other porphyry targets within its tenements which will be evaluated and tested in the future.

Magnetic targets thought to represent I-type intrusives prospective for porphyries in the south-east sector of the Dart EL near the Gilmore Suture are thought to be prospective as the source of alluvial gold reported in granite in the nearby Buckwong and Dinner Creeks.

The source of this alluvial gold was never located but known to be disseminated in granite, which points to a porphyry source.

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Gold Targets

Dart’s tenements comprise a number of historic goldfields, mined sporadically from the 1880s to early 1900s. Mining is reported to have stopped, in most cases, due to limitations in technology which impacted on mining and recovery at the time.

The gold targets identified by Dart have been subject to little or no modern exploration. Dart’s exploration of these prospects over the past year has revealed some promising drilling intersects which warrant further exploration.

Mountain View – High-grade gold intersections from Dart’s drilling. Significant arsenic anomaly discovered extending several hundred metres south of the historic gold workings
Mount Elliot – Visible gold noted in recent drill core
Fairley’s – Identification of a large hydrothermal system up to 22 metres in width.

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Figure 4: Mountain View Workings

Mountain View

The results from exploration so far confirm the high-grade nature of the sulphide hosted gold mineralisation at Mountain View.

The Mountain View prospect is located in the Dart Goldfield some 45 kilometres south of Corryong in north-east Victoria. It comprises a number of shallow mines from the late 1800s where the gold is associated with sulphide-rich lode structures. Dart commenced evaluation of Mountain View through a drilling programme of the Main Lens and Western Anomaly targets (Figure 4).

Since commencing exploration at the site, Dart has discovered further workings from the 1890s mining era, which extend the known strike a further 800 metres along what is believed to be a parallel line of lode. The system has shown it is capable of containing high-grade gold and is interpreted as hosting multiple sub-parallel, vertically and laterally stacked sulphide lenses.

The company’s first drill programme at Mountain View was undertaken in mid2007. Drilling identified high-grade gold from surface, with the most significant intersect in hole MVD20 achieving 6m @ 21.79 g/t Au including 2m @ 59.25 g/t Au from 3 metres depth.

EXPLORATION REVIEW

The New Discovery mine was

successfully located some one kilometre further along the same trend as the main Mountain View workings. Previous mining in the late 1890s shows as a 16 metres long, 2 metres deep stope. Chip samples taken from what is assumed to be an old ore stockpile show consistent assay results of approximately 9 g/t Au. A small costean and pit some 55 metres further south extends the mineralisation with 1m @ 5.38 g/t Au across the pit.

Sufficient data has been obtained from exploration to date to geologically model the Mountain View lode system. This includes interpreting the detailed geometry of the very high-grade zones that can significantly affect the potential economics of the Mountain View system.

An initial rotary air blast (RAB) programme has now been completed at Mountain View, and a follow-up deeper diamond drill programme has been designed to further test the main mineralised structure at depth. This programme will focus on depth testing the main mineralised structure below the trial mining pit and to the south along the Western Anomaly.

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Figure 5: Mt Elliot Prospects

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Mt Elliot

The Mt Elliot goldfield comprises a number of shallow mines from the 1890s to early 1900s which produced an estimated 83,000 ounces of gold despite low recoveries limited by the technology of the time. Mining ceased because of limitations to mining below the water table and the inability to economically recover gold from sulphide-rich lode structures.

Dart has commenced evaluation of this goldfield by drilling at the Just In Time and Hope lines. Other mines in the goldfield are being mapped and sampled in order to prioritise future drilling opportunities, with New Chum and Native Youth identified as potential short-term targets (Figure 5).

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Dart’s 3D modelling of the Just in Time and Hope lines of lode indicates the continuation of significant zones of gold mineralisation both down dip and along strike below the old workings. The Just in Time line of lode together with splay and parallel gold lodes extends for over three kilometres. Accordingly, the Mt Elliot goldfield presents an accessible priority target to be further tested by drilling.

In 2007, Dart undertook the first reported drilling at the historic Mt Elliot goldfield. The purpose of the RAB drilling programme was to provide bedrock geochemistry and orientation information in an area where very little historical geological information was available. Drilling comprised approximately 245 metres in seven RAB drill holes.

The results showed a low-order gold signature up to some six metres in width between historic stoping along the Mt Elliot lodes. Drilling into the Hope line shows low-grade mineralisation up to 2.5 metres in true width as a halo to the lode.

The results support the interpretation that the lode is continuous over many hundreds of metres but requires dilation to create economic grade mineralisation. The dilation zones are interpreted to have a southerly pitch as represented by the high-grade shoots that were historically mined.

Follow-up RC and diamond drilling has now been conducted to further test these structures below previously mined areas. Preliminary results from drilling includes the intersection of an area of visible gold. Approvals have also been granted for drilling at New Chum in the

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Mt Elliot Prospect, with the programme scheduled for September 2008. Historically, the New Chum mine was reportedly extremely rich, averaging 10 oz/t over a three-year production life.

Further drilling is planned for all targets in the prospect, pending the interpretation of outstanding assay results.

Fairley’s

Located in the Buckland Valley goldfield, Fairley’s prospect is situated at 800 metres elevation on a ridge above Fairley’s Creek, a tributary of the Buckland River and its extensive historic alluvial gold workings. Alluvial gold production from the Buckland goldfield was continuous from 1853 to about 1919, with a second period of production in the 1930s that included large hydraulic and bucket dredge operations. However, the reported hard rock orogenic-style deposits were small and insufficient to explain the source of such consistent alluvial gold production.

Dart geologists’ focus was to identify the source of this production, and their historical review resulted in the rediscovery of Fairley’s gold prospect.

In addition to the Fairley’s prospect, company geologists have also rediscovered the historic Kaufmann and Centennial mines. A soil geochemical grid has been established at the Fairley’s prospect and initial rock chips and soil sampling programmes at Fairley’s and several other prospects indicated that these are significant mineralised systems which warrant further exploration and drilling.

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A programme of RC and diamond drilling has now been completed at Fairley’s. Early assay results have confirmed the presence of a very large (up to 22 metres in width) disseminated sulphide related gold system. Sulphide distribution from the drilling completed to date indicates sulphides in the system may be concentrated within shoots developed within the major fault structure.

Such a distribution of sulphides is likely to determine zones of economic mineralisation and will be the target of a planned down-hole geophysical investigation. The geophysics will target plumes of concentrated sulphide within the extensive host fault structure.

Further drill programmes may be undertaken at the project once assays have been fully interpreted.

SUSTAINABILITY

At Dart, the commitment to the principles and practices of good corporate and environmental citizenship we believe goes beyond the requirements of relevant authorities.

We develop strong partnerships with local communities, governments and businesses to benefit all members of the community and the region.

Community

Dart Mining is committed to our local communities and to being a good corporate citizen and neighbour.

We strive to ensure that the local community are informed at all stages of our exploration, development and operating process through regular consultation. We will provide regular updates of our activities on our website and meet with community members personally.

We have adopted a local supplier policy aimed at hiring and sourcing equipment and services locally wherever possible. Currently the majority of the Dart team live in north-eastern Victoria and we aim to provide further opportunities for the regional community in future.

As we progress from exploration to the development of a mining operation, we will work closely with the communities in which we operate and look to enhance the region economically and socially.

Environment

Dart has an established Environmental Policy, which governs the way in which the company works to protect and minimise any impacts on the surrounding environment.

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Health and Safety

While our exploration licences cover a vast area, our key targets are primarily within State forest, and any exploration carried out on private land is being done so with the consent of the land owners and in consideration of the local environment.

Safety management is at the forefront of our activities and a performance milestone for company management. Dart has developed a detailed Occupational Health and Safety Manual, to protect the safety of our employees, contractors and visitors to our sites.

Any drilling programmes are subject to strict regulation by Victorian authorities and we continue to work closely with the necessary departments to ensure that all environmental requirements are adhered to.

We are committed to inspiring and developing a safety culture of the highest level within our team, a commitment which will continue through exploration, to development and into production.

Responsible environmental practices are essential to the company’s success and to the future of the mining industry in general.

BOARD OF DIRECTORS

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JOHN QUAYLE

CHIEF EXECUTIVE OFFICER

John has over 30 years experience in management and operations of major listed mining and petroleum companies. John has been instrumental in mining project and company evaluations and acquisitions. He has had roles as diverse as Company Secretary, General Manager Business Development, Planning and Acquisitions, General Manager Sales and Marketing, and Finance Manager.

CHRISTOPHER BAIN

CHAIRMAN, NON-EXECUTIVE DIRECTOR

Chris is a geologist and mineral economist with over 30 years experience encompassing mine geology, exploration and project evaluation. Over several years in a corporate advisory role, Chris has been instrumental in mining project divestitures and acquisitions, evaluations and valuations, capital raisings including several initial public offerings and ASX listings. Chris is currently Chief Investment Officer of the Phillip Resources Fund.

RICHARD UDOVENYA

NON-EXECUTIVE DIRECTOR

Richard, a Partner of the law firm ResourcesLaw International, Dart’s legal advisors, has over 20 years legal experience with focus on the corporate, corporate governance and commercial law areas. He is a director of, and legal advisor to, a number of Australian and international companies.

BERNHARD HOCHWIMMER EXECUTIVE DIRECTOR

Bernhard is a consulting geologist with 25 years industrial experience as a geo-scientist and has been involved in multiple discoveries including heavy minerals, rare earths, silica and diatomite reserves and a gold discovery. He has published definitive works in both heavy mineral deposit genesis and medical geology.

STEPHEN POKE

NON-EXECUTIVE DIRECTOR

Stephen has in excess of 25 years of technical and management experience in all forms of surface diamond and RC drilling as well as extensive experience in underground drilling. He has been involved with and managed some of the largest drilling programmes in Australia in various senior management positions with drilling companies.

DEAN TURNBULL EXECUTIVE DIRECTOR

Dean is an exploration and mine geologist with over 16 years experience, predominantly within Victoria and southern New South Wales. He has specialised in 3D geological and structural modelling producing geological and exploration models on Victorian gold projects at Bendigo, Glen Wills, Costerfield and Castlemaine.

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HEADLINE
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DART MINING NL 2008 FINANCIAL REPORT

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08 CONTENTS
Directors’ Report	19
Auditor’s Independence Declaration	35
Income Statement	36
Balance Sheet	37
Statement of Changes in Equity	38
Cash Flow Statement	39
Notes to the Financial Statements	40
Audit Report	66
ASX Additional Information	68

18 DART MINING NL 2008 ANNUAL REPORT

DIRECTORS’ REPORT

Your directors submit their report for the year ended 30 June 2008.

DIRECTORS

The names and details of the company’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

Names, qualifications, experience and special responsibilities

Christopher Bain Non-Executive Chairman Appointed 26 May 2006 Age 55

Chris Bain is a geologist and mineral economist. He has worked in underground mine geology in Mt Isa and Tasmania and exploration around Broken Hill. Since joining the finance sector he has been instrumental in mining project divestitures and acquisitions, evaluations and valuations, capital raisings including several initial public offerings and ASX listings. Chris is currently Chief Investment Officer of Phillip Resources Fund and a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Company Directors.

Mr Bain is currently Chairman of the Company and a member of the Audit and Risk Management Committee.

Other current directorships of listed companies None. Former directorships of listed companies in last three years None.

Bernhard Hochwimmer Bernhard Hochwimmer graduated from The University of New England, BSc, 1978, Executive Director with multidisciplinary double majors in zoology, biochemistry and ecology, and from Appointed 26 May 2006 the University of Tasmania, 1980 with a geology double major. Bernhard has 25 years’ Age 55 industrial experience as a geoscientist with integrated multidisciplinary training and experience in Engineering Geology and Medical Geology. Bernhard has been involved in multiple discoveries including gold, as well as heavy minerals; rare earths; silica and diatomite reserves for Westralian Sands Ltd (now Iluka). He has published definitive works in both heavy mineral deposit genesis and medical geology. Bernhard is a member of Australian Institute of Geoscientists, and the International Medical Geology Society.

Other current directorships of listed companies None. Former directorships of listed companies in last three years None. Dean Turnbull Dean Turnbull is a geology graduate from the Bendigo College of Advanced Education Executive Director and has a Postgraduate Honours degree in geology from the Key Centre For Ore Deposit Appointed 26 May 2006 and Exploration Studies (CODES) at the University of Tasmania. Dean is an exploration Age 39 and mine geologist specialising in 3D geological and structural modelling, working on detailed geological models for many Victorian mining centres. Positions previously held have spanned the spectrum from grass roots exploration to Resource/Reserve estimation on large scale mining projects and he has specialised in 3D geological and structural modelling. Dean is a member of Australian Institute of Geoscientists.

Mr Turnbull is currently a member of the Audit and Risk Management Committee.

Other current directorships of listed companies None. Former directorships of listed companies in last three years None.

DART MINING NL 2008 ANNUAL REPORT

08 DIRECTORS’ REPORT

Stephen Poke Stephen Poke has over 25 years of technical and management experience in all forms Non-Executive Director of surface diamond and reverse circulation drilling as well as extensive experience in Appointed 15 June 2006 underground drilling. Over the past 25 years Stephen has been involved in and managed Age 46 some of the largest drilling programmes in Australia in various senior management positions with drilling companies.

Mr Poke is currently chairman of the Audit and Risk Management Committee. Other current directorships of listed companies None. Former directorships of listed companies in last three years None. Richard Udovenya Richard Udovenya is a Partner of the law firm ResourcesLaw International, the legal advisers Non-Executive Director of Dart Mining NL. He has over 20 years’ legal experience in Australia and New Zealand Appointed 15 June 2006 and holds a Bachelor of Laws, a Bachelor of Commerce and a Graduate Diploma in Applied Age 47 Finance and Investment (SIA). Richard is also a Fellow of the Financial Services Institute of Australia and a member of the Australian Institute of Company Directors. Richard’s focus is in the corporate, corporate governance and commercial law areas. He is a director of, and legal advisor to, a number of Australian and international companies. Other current directorships of listed companies Uranex NL (ACN 115 111 763). Former directorships of listed companies in last three years None.

CHIEF EXECUTIVE OFFICER and COMPANY SECRETARY

John Quayle John Quayle graduated from the University of Canterbury (NZ) in 1972 with degrees in Science Appointed 6 December 2006 (Mathematics – Honours) and Business Administration and subsequently in 1999 gained a Age 58 Masters in Applied Finance from Macquarie University. He has worked in the mining and petroleum sectors throughout his career including senior management roles at BP, North Broken Hill, Pasminco, WMC and lastly at Minara Resources where he was Company Secretary through the period of its recapitalisation. John is a member of the Australasian Institute of Mining and Metallurgy and the Australian Institute of Company Directors.

Interests in the shares and options of the company and related bodies corporate

At the date of this report, the interests of the directors and other key management personnel, directly and indirectly, in the shares and options of Dart Mining NL were:

Director	Ordinary Shares	Partly-paid Shares	Options over	Options over
			Ordinary Shares	Ordinary Shares
			(Listed)	(Unlisted)
C J Bain	1,070,000	503,332	538,333	400,000
B R Hochwimmer	4,500,000	2,250,000	2,250,000	-
D G Turnbull	4,500,000	2,250,000	2,250,000	-
S G Poke	3,752,500	1,750,000	1,876,250	-
R G Udovenya	200,000	100,000	100,000	400,000
Other key management personnel
J E Quayle	150,000	-	575,000	500,000

20 DART MINING NL 2008 ANNUAL REPORT

DIRECTORS’ REPORT08

During and since the end of the financial year the following bonus options were issued pursuant to a short-term prospectus dated 4 July 2007. These options have an exercise price of 20 cents and an expiry date of 31 May 2010. These options do not represent payments for goods or services, and are not included as share-based payments.

Director	Number of options	Number of ordinary
	granted	shares under options
C J Bain	538,333	538,333
B R Hochwimmer	2,250,000	2,250,000
D G Turnbull	2,250,000	2,250,000
S G Poke	1,876,250	1,876,250
R G Udovenya	100,000	100,000
Other key management personnel
J E Quayle	75,000	75,000

CORPORATE INFORMATION

Corporate structure

Dart Mining NL is a company limited by shares that is incorporated and domiciled in Australia. Dart Mining has prepared a consolidated financial report incorporating the entity, Dart Resources Pty Ltd, which it controlled during the financial year and which is included in the financial statements.

Principal activities

The principal activity of the economic entity during the financial year was exploration for gold and base metals in north-east Victoria and southern New South Wales.

Employees

The consolidated entity employed 7 employees as at 30 June 2008 (2007: 4 employees).

CONSOLIDATED RESULTS

The loss for the consolidated entity after income tax was $755,721(2007: $101,074).

DIVIDENDS

No dividends in respect of the current financial year have been paid, declared or recommended for payment.

OPERATING AND FINANCIAL REVIEW

Group overview

Dart Mining NL was established in May 2006 for the purpose of exploring for and developing gold properties in north-east Victoria and southern New South Wales.

Exploration overview

Please refer to the Chief Executive Officer’s Report for details of exploration activities undertaken during the financial year.

DART MINING NL 2008 ANNUAL REPORT 21

08 DIRECTORS’ REPORT

Financial overview

Operating results for the year

The loss for the consolidated entity after income tax was $755,721 (2007: $101,074). This result is consistent with expectations of costs associated with the exploration programme and reflected:

costs associated with managing the exploration programme; and
corporate overheads associated with statutory and regulatory requirements as a consequence of being listed on the Australian Securities Exchange.

Review of financial position

During the year, the Company continued its exploration programme in north-east Victoria and southern New South Wales. At the end of the financial year, a large proportion of the funds raised in the previous financial year were held by the Company as cash investments for use in future financial periods. The Company strives to maximise the return on these funds for exploration purposes by investing surplus funds and minimising expenditure on corporate overheads.

Cash flows

The cash flows of the Company consist primarily of payments to employees and suppliers for exploration activities on tenements held; and the maintenance of the corporate head office which manages existing projects as well as costs involved in investigating new exploration opportunities.

CAPITAL RAISINGS / CAPITAL STRUCTURE

During the year under review, there was no capital raised by the Company (2007: $5,175,905 net of capital raising costs)

Summary of shares /options on issue

At 30 June 2008 the Company has 42,750,000 ordinary shares, 8,875,000 partly-paid shares (9 cents payable) and 24,175,008 options on issue. Details of the options are as follows:

Issuing entity	Number of shares	Class of shares	Exercise price	Expiry date
	under option
Dart Mining NL	2,800,000	Ordinary	20 cents	31 December 2010
Dart MiningNL	21,375,008	Ordinary	20 cents	31 May2010

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Company during the financial year.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

There has been no matter or circumstance since 30 June 2008 which has significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity, in subsequent financial years.

22 DART MINING NL 2008 ANNUAL REPORT

DIRECTORS’ REPORT

FUTURE DEVELOPMENTS

The Board of Directors intends to continue with the exploration of the Company’s tenements and project generation for gold and base metals targets in north-east Victoria and southern New South Wales as outlined in the prospectus dated 14 March 2007. Further details of the Company’s prospects are included in the Report on Exploration Projects which forms part of the Chief Executive Officer’s Report.

As the Company is listed on the Australian Securities Exchange, it is subject to the continuous disclosure requirements of the ASX Listing Rules which require immediate disclosure to the market of information that is likely to have a material effect on the price or value of Dart Mining NL’s securities.

ENVIRONMENTAL REGULATION

The economic entity holds participating interests in a number of exploration tenements. The various authorities granting such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions given to it under those terms of the tenement. There have been no known breaches of the tenement conditions, and no such breaches have been notified by any government agencies during the year ended 30 June 2008.

DIRECTORS’ MEETINGS

The Board of Directors established the Audit and Risk Management Committee on 9 May 2007. The charter for the Audit and Risk Management Committee was adopted on 12 July 2007. The members of the committee are the directors, Stephen Poke (Chairman), Chris Bain and Dean Turnbull.

The number of directors’ meetings held during the year and the numbers of meetings attended by each director were as follows:

		Board of directors	Board of directors	Audit and	Risk Management	Committee
Directors	Held	Entitled to	Attended	Held	Entitled to	Attended
		attend			attend
C J Bain	10	10	10	3	3	3
B R Hochwimmer	10	10	10	-	-	-
D G Turnbull	10	10	10	3	3	3
S G Poke	10	10	10	3	3	3
R G Udovenya	10	10	10	-	-	-

DART MINING NL 2008 ANNUAL REPORT 23

08 REMUNERATION REPORT

DIRECTOR AND SENIOR MANAGEMENT DETAILS

Directors and other key management personnel of the Company during and since the end of the financial year are as follows:

Directors

C J Bain B R Hochwimmer D G Turnbull S G Poke R G Udovenya

Other key management personnel

J E Quayle (Chief Executive Officer)

REMUNERATION PHILOSOPHY

The Board of Directors of Dart Mining NL is responsible for determining and reviewing compensation arrangements for the directors, the chief executive officer and other key management personnel. The Board’s remuneration policy is to ensure that the remuneration package properly reflects the person’s duties and responsibilities, with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. Such officers are given the opportunity to receive their base emolument in a variety of forms, including cash and fringe benefits such as motor vehicles. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost to the company.

To assist in achieving these objectives, the Board intends to link the nature and amount of directors’ and other key management personnel’s emoluments to the company’s financial and operational performance. It is the Board’s policy that employment contracts are entered into with all senior executives. At the date of this report, executive remunerations are set at levels approved by the Board . The Board has granted these guaranteed levels of remuneration which are not dependent on performance in order to ensure the Group’s ability to retain quality personnel during its infancy.

To link remuneration to the Group’s performance, the Board adopted an Employee Share Option Plan in June 2008. Details of this plan is included in this remuneration report.

The Group’s earnings and movements in shareholders’ wealth since listing to 30 June 2008 is detailed in the following table:

	30 June 2008	30 June 2007
Revenue	$186,684	$76,998
Net loss after tax	($755,721)	($101,074)
Share price at start of year or period	21c	17c
Share price at end of year	18c	21c
Dividends	-	-
Basic earnings per share	(1.77)c	(1.28)c
Diluted earningsper share	(1.77)c	(1.28)c

Employment Agreements are entered into with Executive Directors and Specified Executives. The employment contracts with the two Executive Directors are terminable by either the Company or the Executive Director by giving three month’s notice. The current employment contract with the Chief Executive Officer (CEO) runs until its termination date of 6 December 2008, unless terminated by the CEO or by the Company either of whom may give four weeks’ notice. Contracts do not provide for any additional termination benefits.

24 DART MINING NL 2008 ANNUAL REPORT

REMUNERATION REPORT

REMUNERATION STRUCTURE

In accordance with best practice corporate governance, the structure of non-executive director and executive remuneration is separate and distinct.

NON-EXECUTIVE DIRECTOR REMUNERATION

Objective

The Board seeks to set aggregate remuneration at a level which provides the company with the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.

Structure

The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time by a general meeting. An amount not exceeding the amount determined is then divided between the directors as agreed. The latest determination was in the constitution adopted on 22 June 2006 which approved an aggregate remuneration of $200,000 per year.

The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually. The board considers advice from external consultants as well as the fees paid to non-executive directors of comparable companies when undertaking the annual review process.

Each non-executive director receives a fee for being a director of the company. Directors who are called upon to perform extra services beyond the director’s ordinary duties may be paid additional fees for those services.

Non-executive directors have long been encouraged by the board to hold shares in the company. It is considered good governance for directors to have a stake in the company on whose board he or she sits.

The remuneration of non-executive directors for the financial year ended 30 June 2008 is detailed in this report.

SENIOR EXECUTIVE REMUNERATION

Objective

The company aims to reward executives with a level and mix of remuneration commensurate with their position and

responsibilities within the company and so as to:

reward executives for company, business unit and individual performance against targets set by reference to appropriate benchmarks;
align the interests of executives with those of shareholders;
link reward with the strategic goals and performance of the company; and
ensure total remuneration is competitive by market standards.

Structure

In determining the level and make-up of executive remuneration, the Board obtained independent advice from external consultants on market levels of remuneration for comparable executive roles. It is the Board’s policy that employment contracts are entered into with the all senior executives.

DART MINING NL 2008 ANNUAL REPORT 25

08 REMUNERATION REPORT

VARIABLE REMUNERATION – LONG TERM INCENTIVES

Objective

The objectives of long term incentives are to:

recognise the ability and efforts of the employees of the company who have contributed to the success of the company and to provide them with rewards where deemed appropriate;
provide an incentive to the employees to achieve the long term objectives of the company and improve the performance of the company; and
attract persons of experience and ability to employment with the company and foster and promote loyalty between the company and its employees.

Structure

Long term incentives in the form of the company’s Employee Share Option Plan provides an opportunity to link in part the remuneration paid to shareholder returns over an extended period. Under the Employee Share Option Plan, employees (excluding directors) were granted Performance Rights to receive a maximum of 504,000 options over unissued shares in the company. Shareholders’ approval will be sought at the company’s Annual General Meeting for the grant to directors of Performance Rights to receive a maximum of 492,000 options over unissued shares in the company. The grant of the Performance Rights will be at no cost to directors and employees. The number of options to be issued under the performance rights will be subject to meeting or achieving performance targets.

The options will be exercisable on or before 30 April 2012 in all or part of the entitlement on payment of 16.7 cents per share. The options to be issued which result from exercise of the Performance Rights will be issued no later than 31 March 2010. No funds will be raised by the company on the grant of the Performance Rights. Funds will be raised by the company as a consequence of the exercise of the options.

The following table lists the performance targets that apply and the weighting given to their achievement in determining the number of Performance Rights available to be granted to the two categories of employees and directors. By way of example, achieving the 100,000oz Au JORC Resource defined by 1 January 2010 target has a 50% weighting in the granting of the Performance Rights. The safety and well being of all Dart Mining NL employees is paramount and therefore is represented in two ways – a group target and an individual target measured as number of Lost Time Injuries (LTI). The achievement of the group performance target for safety has a maximum weighting of 30% and the achievement of the individual performance target has a weighting of 20%. Achievement below target in the sense of incurring an LTI results in the loss of 10% for the group and 10% for the individual.

Executive directors and employees Performance target	Achieve target Target not met
100,000oz Au JORC Resource or equivalent defned by 1/1/2010 Safety – LTI (target 2008/09 = no LTI) Individual LTI Maximum	50% 0% 30% 10% lost for each group LTI 20% 10% lost for each individual LTI 100%

Non-executive directors Performance target	Achieve target Target not met
100,000oz Au JORC Resource or equivalent defned by 1/1/2010 Individual – site visits (3 visits in 2008/3 visits in 2009) Maximum	80% 0% 20% 20% if attend site six times, 10% for fve 100%

26 DART MINING NL 2008 ANNUAL REPORT

REMUNERATION REPORT

ASX best practice recommendation 8.3 recommends companies seek shareholder approval of equity-based reward schemes for executives. The Company’s current equity-based reward scheme, the Dart Mining Employee Share Option Plan was approved by shareholders at the 2007 Annual General Meeting.

Currently there is no company policy regarding employees hedging of their options.

SERVICE CONTRACTS

Service Contracts are entered into with Executive Directors and Specified Executives.

Bernhard Hochwimmer

Under an agreement dated 27 July 2006 (subsequently varied by deed dated 21 February 2007) the Company engaged B Hochwimmer and Associates Pty Ltd, a company which is controlled by Bernhard Hochwimmer, to provide consulting geological and management services to Dart Mining. This agreement was replaced with an employment agreement dated 2 January 2008 between the Company and Mr Bernhard Hochwimmer. The terms of the agreement include inter alia:

Mr Hochwimmer will devote 80% of his time to the Company’s business.
The Company has agreed to a remuneration package of $145,000 per annum for Mr Hochwimmer’s services, with annual reviews, together with reimbursement of all business related expenses including motor vehicle running and maintenance expenses. This remuneration package was subsequently reviewed by the Board of Directors to $158,050 per annum effective 1 January 2008.
A restraint on Mr Hochwimmer undertaking additional part-time consulting or provision of other services which may conflict with the activities of Dart without the approval of the Chairman which may not be unreasonably withheld. This restraint continues for 12 months after cessation of engagement with Dart.
An obligation on Mr Hochwimmer to maintain confidentiality in respect of proprietary information obtained during employment.
The agreement is terminable by either party on 3 months notice being given.

Dean Turnbull

Under an agreement dated 27 July 2006 (subsequently varied by deed dated 21 February 2007) the Company engaged North East Geological Contractors Pty Ltd, a company which is controlled by Dean Turnbull, to provide consulting geological and management services to Dart Mining. This agreement was replaced with an employment agreement dated 2 January 2008 between the Company and Mr Dean Turnbull. The terms of the agreement include inter alia:

Mr Turnbull will devote 80% of his time to the Company’s business.
The Company has agreed to a remuneration package of $145,000 per annum for Mr Turnbull’s services, with annual reviews, together with reimbursement of all business related expenses including motor vehicle running and maintenance expenses. This remuneration package was subsequently reviewed by the Board of Directors to $158,050 per annum effective 1 January 2008.
A restraint on Mr Turnbull undertaking additional part-time consulting or provision of other services which may conflict with the activities of Dart without the approval of the Chairman which may not be unreasonably withheld. This restraint continues for 12 months after cessation of engagement with Dart.
An obligation on Mr Turnbull to maintain confidentiality in respect of proprietary information obtained during employment.
The agreement is terminable by either party on 3 months notice being given.

DART MINING NL 2008 ANNUAL REPORT 27

08 REMUNERATION REPORT

John Quayle

Under an employment agreement dated 10 January 2007, the Company and Mr John Quayle agreed the terms of his employment including inter alia:

Mr Quayle was engaged to provide services in the capacity of Company Secretary and Chief Executive Officer on a part-time basis for 20 hours per week commencing on 6 December 2006 for a period of 24 months, at an annual salary of $92,650 with periodic reviews. This contract was subsequently reviewed by the Board of Directors increasing to 30 hours per week at an annual salary of $163,500 effective 1 January 2008.
A restraint on Mr Quayle undertaking additional part-time employment which may conflict with the activities of Dart without the approval of the Chairman which may not be unreasonably withheld.
An obligation on Mr Quayle to maintain confidentiality in respect of proprietary information obtained during employment.
The grant of 1,000,000 options to Mr Quayle in 2 tranches:
a) 500,000 options (with an expiry date of 31 December 2010) exercisable at 20 cents vesting on 6 December 2007, and
b) 500,000 options (with an expiry date of 31 December 2010) exercisable at 20 cents vesting on 6 December 2008.

The options may be exercised at any time after vesting date during employment and for 3 months after cessation of employment, after which they lapse. They will not be quoted.

Mr Quayle’s appointment as Chief Executive Officer was confirmed on 8 March 2007.

REMUNERATION OF DIRECTORS AND EXECUTIVES

	Short term	Post employment	Share based	Total
	Salary & fees	Superannuation	payment Options	$
	$	$	$
2008
Directors
C J Bain	-	44,486	-	44,486
B R Hochwimmer	139,000	12,525	-	151,525
D G Turnbull	145,000	6,525	-	151,525
S G Poke	31,140	-	-	31,140
R G Udovenya	-	31,140	-	31,140
Other key management personnel
J E Quayle	28,075	100,000	39,201	167,276
2007
Directors
C J Bain	-	6,986	-	6,986
B R Hochwimmer	149,250	-	-	149,250
D G Turnbull	149,250	-	-	149,250
S G Poke	4,890	-	-	4,890
R G Udovenya	-	4,890	-	4,890
Other key management personnel
J E Quayle	-	53,123	30,865	83,988

Bonuses

No bonuses were granted during the financial year ended 30 June 2008.

28 DART MINING NL 2008 ANNUAL REPORT

REMUNERATION REPORT

Employee options

No options were issued, granted or exercised to or by the directors and other key management personnel of the Company during the financial year ended 30 June 2008.

For the year ended 30 June 2008, the following employee options were in existence:

Grantee	Number	Grant date	Expiry date	Grant date fair value	Vesting date
J E Quayle	500,000	3 January 2007	31 December 2010	7.9 cents	6 December 2007
J E Quayle	500,000	3 January2007	31 December 2010	7.9 cents	6 December 2008

The options are not transferrable and may be exercised at any time after vesting date during employment and for 3 months after cessation of employment. They are not quoted.

Performance rights

180,000 performance rights were granted to key management personnel during the financial year ended 30 June 2008.

The following key management personnel performance rights were in existence at 30 June 2008:

Grantee	Number	Grant date	Vesting date	Expiry date	Exercise price	Fair value at grant date
J E Quayle	180,000	27 June 2008	1 January2010	30 April 2010	-	12.2 cents

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

The Company has entered into Deeds of Indemnity with the directors and the company secretary, indemnifying them against certain liabilities and costs to the extent permitted by law.

The Company has also agreed to pay a premium in respect of a contract insuring the directors and officers of the Company Full details of the cover and premium are not disclosed as the insurance policy prohibits the disclosure.

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

A copy of the auditor’s independence declaration under s. 307C of the Corporation Act 2001 in relation to the audit of the full year is included in this report.

The directors are satisfied that the provision of non-audit services, during the year by the auditor (or by another person or firm on the auditor’s behalf) is compatible with the general standards of independence for auditors imposed by the Corporations Act 2001.

This report has been made in accordance with a resolution of the Directors.

==> picture [109 x 38] intentionally omitted <==

C J BAIN Director

S G POKE Director

Melbourne 16 September 2008

DART MINING NL 2008 ANNUAL REPORT

08 CORPORATE GOVERNANCE STATEMENT

The Board of Directors of Dart Mining NL (the Company) is committed to the principle of good practice in corporate governance. The Board believes that genuine commitment to good corporate governance is essential to the performance and sustainability of the Company’s business and as such depends upon the corporate culture – values and behaviours – that underlie day-to-day activities.

The Board continually reviews its corporate governance practices and regularly monitors developments in good practice governance in Australia and overseas. Where international and Australian guidelines are not consistent, the good practice guidelines of the Australian Securities Limited (“ASX”) convened ASX Corporate Governance Council has been adopted as the minimum base for corporate governance practices.

BOARD OF DIRECTORS

The Board has adopted a formal charter which allocates responsibilities between the Board and management which is available from the corporate governance section of the Company website at www.dartmining.com.au. The charter details the composition, responsibilities and code of conduct under which the Board operates. The Board has resolved unanimously that the Company will at all times aspire to “good practice” in Corporate Governance.

Unless otherwise indicated in this statement the practices specified in the charter have been followed throughout the reporting period and will remain in force until amended by resolution of the Board.

Role of the Board

The Board acknowledges its accountability to shareholders for creating shareholder value within a framework that protects the rights and interests of shareholders and ensures the Company is properly managed. The Board aims to achieve these objectives through the adoption and monitoring of strategies, plans, policies and performance as follows:

a. Providing input into, and approval of, the Group’s strategic direction; approval and monitoring of budgets and business plans; and ensuring appropriate resources are available, including capital management and major capital expenditure.
b. Approving the Group’s systems of risk management, monitoring their effectiveness and maintaining a dialogue with the Group’s auditors.
c. Considering, approving and monitoring internal and external financial and other reporting, including reporting to shareholders, the ASX and other stakeholders.
d. Selection and evaluation of Directors, the Chief Executive Officer (CEO), and senior executives and planning for their succession.
e. Setting the CEO and Director remuneration within shareholder approved limits and ensuring that the remuneration and conditions of service of senior executives are appropriate.
f. Ensuring, and setting standards for, ethical behaviour and compliance with the Group’s own governing documents, including the Group’s Code of Conduct and corporate governance standards.

Board Processes

The Board aims to perform its role and objectives through the adoption and monitoring of strategies, plans, policies and performance; the review of the CEO and senior management performance, conduct and reward; monitoring of the major risks of the company’s business; and by ensuring the company has policies and procedures to satisfy its legal and ethical responsibilities.

The Board determines the strategic direction of the Company and sets policies accordingly. In addition to maintaining oversight of the Company’s executive management and operations, the Board monitors substantive issues such as ethical standards and social and environmental responsibilities.

30 DART MINING NL 2008 ANNUAL REPORT

CORPORATE GOVERNANCE STATEMENT

Composition of the Board

The names of the Directors of the Company at the date of this Statement are set out in the Directors’ Report in this financial report. The composition of the Board is determined using the following principles:

a maximum of twelve Directors;
a non-executive Director as Chairman;
a majority of non-executive Directors; and
a balance between independent and non-independent Directors.

The Board is currently comprised of five Directors: three non-executive Directors and two executive Directors. The Company’s Constitution provides for a maximum of 12 Directors. The Board periodically reviews its size as appropriate. The Chief Executive Officer, who is appointed by the Board, is invited to attend all Board meetings.

Directors are considered to be independent if they are not major shareholders, are independent of management, and are free from any business or other relationship that could materially interfere with their exercise of free and independent judgement. Messrs Bain and Udovenya are considered to fall within this category.

By reason of history the Board comprises a majority of non-independent Directors (Messrs Hochwimmer, Turnbull, and Poke) who, being major shareholders themselves, and/or who provide services to the Company either as employees or contractors, have been regarded as being non-independent.

While the composition of the current Board does not comply with ASX Corporate Governance Council recommendation 2.1 which recommends that the board should comprise a majority of independent directors, the Board regards the present composition of Directors and Board Committees as a good balance at this stage of the development of the Company with the appropriate mix of expertise and experience and ability to represent the interests of all shareholders.

Future Director appointees will receive a formal letter of appointment setting out the responsibilities, rights and terms and conditions of their appointment. Directors participate in a comprehensive induction which covers the operations, financial position, strategic and risk management issues, as well as the operation of the Board and any sub-committees.

Meetings

The Board meets on a regular basis to retain full and effective control and monitor executive management. During the period for the financial year to 30 June 2008, the full Board met 10 times. The Directors’ attendance at meetings is detailed in the Directors’ Report.

Members of the Management team may attend meetings at the invitation of the Board.

Role of Chairman and Chief Executive Officer (CEO)

The Chairman is an independent Director elected by the full Board, having no association with the Company, nor is he a substantial shareholder of the Company, and has not previously been an employee.

The Chairman is responsible for leading the Board, ensuring Directors are properly briefed in all matters relevant to their role and responsibilities, facilitating Board discussions and managing the Board’s relationship with the Company’s senior executives.

The CEO is responsible for implementing Group strategies and policies. The Board Charter specifies that these are separate roles to be undertaken by separate people.

Term of Office

The Board reviews its performance and composition on an annual basis and aims to have members with high levels of intellectual ability, experience, soundness of judgement and integrity to maximise its effectiveness and contribution. Directors serve a maximum three-year term before being required to be re-elected by members. Dart’s constitution provides that at least one third (or the nearest whole number) of Directors must retire at each Annual General Meeting, but are eligible for reelection at that meeting. There is no compulsory retiring age.

DART MINING NL 2008 ANNUAL REPORT 31

08 CORPORATE GOVERNANCE STATEMENT

Independent Professional Advice

In performing their duties Directors have the right to seek independent, professional advice at the Company’s expense, in furtherance of their duties as Directors, with the approval of the Chairman, which approval shall not be unreasonably withheld.

BOARD COMMITTEES

The Company has a formally constituted Audit and Risk Management Committee reporting to the Board of Directors. This committee is chaired by a non-executive director and operates under a charter with authority to examine and report on any matters concerning risk management within the company including, but not limited to, operational, occupational health and safety, and financial matters. The charter is published on the Company’s website.

The Directors consider that the Company is not of a size nor are its affairs of such complexity as to justify the formation of other special or separate committees such as Remuneration or Nomination committees. The Board as a whole is able to address the governance aspects of the Company’s activities and ensure that it adheres to appropriate ethical standards. However as appropriate and as required the Board will establish Board Committees to assist in the execution of its responsibilities. Any Committees formed will have written mandates and operating procedures that, together with membership, will be reviewed on a regular basis.

CODE OF BUSINESS CONDUCT

The Board has adopted a Code of Conduct (the Code) and a policy “Behaviour Standards - Standards of Business Conduct” setting out parameters for ethical behaviour and business practices which applies to all of the Company’s directors, officers and employees. The Code is included in the Board Charter and is available for review on the Company website. The Code is regularly reviewed and updated as necessary to ensure it reflects the highest standards of behaviour and professionalism and the practices necessary to maintain confidence in the Group’s integrity.

In summary, the Code requires that at all times all group personnel act with the utmost integrity, objectivity and in compliance with both the letter and the spirit of the law and Company policies.

Conflicts of Interest

All directors of the Company must keep the Board advised, on an ongoing basis, of any private interest that could potentially conflict with the interests of the Company. Where the Board believes that a significant conflict exists, the director concerned does not receive relevant board papers and is not present at the meeting whilst the item is considered. The Board has developed procedures to assist Directors to disclose potential conflicts of interest.

All directors and executive officers of the Company are required to disclose to the Company any material transaction or commercial relationship or corporate opportunity that reasonably could be expected to give rise to such a conflict.

Insider Trading

Trading in shares by any Director or senior executive of the Company within the period between the close of each financial quarter and the release of quarterly, half yearly interim and full year results by the Company requires the express written approval of the Chairman before any trading is conducted or the entry into any share trading agreements.

Fair dealing and ethical standards

The Code requires all directors, officers and employees of the Company to behave honestly and ethically at all times with all people and other organisations.

The Code requires employees who are aware of unethical practices within the Group or breaches of the Company’s trading policy to report these using the Company’s whistleblower programme. This can be done anonymously. The Company Secretary also has responsibility for the initial investigations of significant issues raised under the whistleblower programme. These matters are reported to the Board.

The Directors are satisfied that the Company has complied with its policies on ethical standards, including trading in securities.

32 DART MINING NL 2008 ANNUAL REPORT

CORPORATE GOVERNANCE STATEMENT

FINANCIAL REPORTING

Reporting Standards

The Company is committed to providing shareholders with clear, transparent, and high quality financial information in a timely manner. The Company continuous disclosure policy underpins this approach.

The financial reports of the Company are produced in accordance with Australian International Financial Reporting Standards, other authoritative pronouncements of the Australian Accountings Standards Board and the Corporations Act. The financial statements and reports are subject to review every half year and the auditor issues an audit opinion accompanying the full year results for each financial year.

External Auditors

The Company policy is to appoint external auditors who clearly demonstrate quality and independence. The performance of the external auditor is reviewed annually, taking into consideration assessment of performance, existing value and tender costs. Deloitte Touche Tohmatsu have been appointed as the external auditors.

An analysis of fees paid to the external auditors, including a breakdown of fees for non-audit services, is provided in Note 23 to the financial statements. It is the policy of the external auditors to provide an annual declaration of their independence to the Board.

The external auditor is requested to attend the annual general meeting and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the audit report.

Management Certification

The Company requires that the Chief Executive Officer makes the following certifications to the Board:

that the Company’s financial reports are complete and present a true and fair view, in all material respects, of the financial condition and operational results of the Company and group and are in accordance with relevant accounting standards.
that the above statement is founded on a sound system of risk management and internal compliance and control and which implements the policies adopted by the Board and that the Company’s risk management and internal compliance and control is operating efficiently and effectively in all material respects.

RISK ASSESSMENT

The Board is responsible for ensuring there are adequate policies in relation to risk management, compliance and internal control systems. The Board has appointed an Audit and Risk Management Committee to advise it in these matters. In summary, the Company policies are designed to ensure strategic, operational, legal, reputation and financial risks are identified, assessed, effectively and efficiently managed and monitored to enable achievement of the Company’s business objectives.

Considerable importance is placed on maintaining a strong control environment. There is an organisation structure with clearly drawn lines of accountability and delegation of authority. Adherence to the Code of Conduct is required at all times and the Board actively promotes a culture of quality and integrity.

Detailed control procedures cover management accounting, purchases and payments, financial reporting, capital expenditure requests, project appraisal, environment, health and safety, IT security, compliance, and other risk management issues. There is a systematic review and monitoring of key business operational risks by management which reports on current and future risks and mitigation activities to the Board.

DART MINING NL 2008 ANNUAL REPORT 33

08 CORPORATE GOVERNANCE STATEMENT

The Company recognises the importance of environmental and occupational health and safety (OH&S) issues and is committed to the highest levels of performance with the systematic identification of environmental and OH&S issues to ensure they are managed in a structured manner. This system allows the Company to:

monitor its compliance with all relevant legislation;
continually assess and improve the impact of its operations on the environment;
encourage employees to actively participate in the management of environmental and OH&S issues;
work with trade associations representing the entity’s businesses to raise standards;
use energy and other resources efficiently; and
encourage the adoption of similar standards by the entity’s principal suppliers, contractors and distributors.

CONTINUOUS DISCLOSURE AND SHAREHOLDER COMMUNICATION

The Company is a disclosing entity under the Corporations Act and is subject to the continuous disclosure requirements under the ASX Listing Rules. Communications with shareholders and other stakeholders are given a high priority. In addition to statutory disclosure documents such as Annual Reports and Quarterly production reports, the Board is committed to keeping all stakeholders informed of all material developments that affect the Company in a timely manner.

The Company has a formal policy and comprehensive procedures on continuous disclosure. Once the Board or Management becomes aware of information concerning the Company that would be likely to have a material effect on the price or value of the company’s securities (and which does not fall within the exceptions to the disclosure requirements contained in the Listing Rules), that information is released to the ASX.

The Board has appointed the Company Secretary (or in his absence, the Chairman) as the person responsible for communication to ASX. This role includes responsibility for ensuring compliance with the continuous disclosure requirements in the ASX Listing Rules and overseeing and co-ordinating information disclosure to the ASX, analysts, brokers, shareholders, the media and the public. All Company announcements, presentations or other briefings are posted on the company’s website after release to the Australian Stock Exchange.

The Board also endorses full and regular communication with and between Directors, the Chief Executive Officer, senior management, the external auditors and other Professional Advisers, Shareholders and other significant stakeholders. The Board also ensures the Company Secretary maintains a good, open and frank relationship with the ASX and its designated Company officers to ensure compliance and full disclosure.

All shareholders have the opportunity to elect to receive a copy of the Company’s annual report at the same time as they receive by post a copy of the Notice of the Annual General Meeting.

Full use is made of annual general meetings to inform shareholders of current developments through appropriate presentations and to provide opportunities for questions.

COMPLIANCE WITH ASX CORPORATE GOVERNANCE COUNCIL GOOD PRACTICE RECOMMENDATIONS

The Company complies with all of the ASX Corporate Governance Principles and Recommendations with the exception that independent directors are not in the majority on the Board (Recommendation 2.1).

(i) As described above
(ii) The Company does not have a nominations Committee (Recommendation 2.4)
(iii) A member of the Audit Committee is an executive director (Recommendation 4.2)

34 DART MINING NL 2008 ANNUAL REPORT

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DART MINING NL 2008 ANNUAL REPORT 35

08 INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

Note Revenue 2(a) Employment related costs Depreciation and amortisation expense 2(b) Offce expenses Administration expenses Travel expenses Other expenses Loss before income tax expense Income tax expense 3 Net loss for the year Net loss attributable to members of Dart Mining NL Earnings per share From continuing operations: Basic (cents per share) 4 Diluted (cents per share) 4	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 186,684 76,998 186,684 76,998 (529,161) (47,632) (529,161) (47,632) (40,721) (1,109) (40,721) (1,109) (34,737) (1,149) (34,737) (1,149) (230,472) (118,374) (229,989) (118,276) (48,099) - (48,099) - (59,215) (9,808) (59,215) (8,014)
	(755,721) (101,074) (755,238) (99,182) - - - -
	(755,721) (101,074) (755,238) (99,182)
	(755,721) (101,074) (755,238) (99,182) (1.77) (1.28) (1.77) (1.28)

The accompanying notes form part of these financial statements

36 DART MINING NL 2008 ANNUAL REPORT

BALANCE SHEET AS AT 30 JUNE 2008

Note Current assets Cash and cash equivalents 17(b) Receivables 5 Prepayments 6 Total current assets Non-current assets Property, plant and equipment 7 Deferred exploration and evaluation costs 8 Investment in subsidiary 9 Goodwill 11 Total non-current assets Total assets Current liabilities Payables 10 Provisions 13 Total current liabilities Total liabilities Net assets Equity Company interest Issued capital 14 Reserves 15 Accumulated losses Total equity	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 2,344,148 4,314,896 2,344,148 4,314,896 105,965 173,496 104,504 172,035 19,602 17,051 19,602 17,051
	2,469,715 4,505,443 2,468,254 4,503,982
	180,238 77,457 180,238 77,457 2,245,396 1,046,501 2,245,396 1,046,501 - - 14,001 14,001 10,066 10,066 - -
	2,435,700 1,134,024 2,439,635 1,137,959
	4,905,415 5,639,467 4,907,889 5,641,941
	339,297 390,840 339,396 391,422 34,739 728 34,739 728 374,036 391,568 374,135 392,150
	374,036 391,568 374,135 392,150
	4,531,379 5,247,899 4,533,754 5,249,791
	5,175,908 5,175,908 5,175,908 5,175,908 212,266 173,065 212,266 173,065 (856,795) (101,074) (854,420) (99,182)
	4,531,379 5,247,899 4,533,754 5,249,791

The accompanying notes form part of these financial statements

DART MINING NL 2008 ANNUAL REPORT 37

08 STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

CONSOLIDATED	Ordinary share capital $ Capital raising costs $ Share option reserve $ Accumulated losses $ Total $
Balance at 1 July 2006 Shares issued during the year Capital raising costs Options issued Loss attributable to members of the company Balance at 30 June 2007 Balance at 1 July 2007 Options issued Loss attributable to members of the company Balance at 30 June 2008 COMPANy	3 - - - 3 6,012,500 - - - 6,012,500 - (836,595) - - (836,595) - - 173,065 - 173,065 - - - (101,074) (101,074)
	6,012,503 (836,595) 173,065 (101,074) 5,247,899
	6,012,503 (836,595) 173,065 (101,074) 5,247,899 - - 39,201 - 39,201 - - - (755,721) (755,721)
	6,012,503 (836,595) 212,266 (856,795) 4,531,379

Balance at 1 July 2006 Shares issued during the year Capital raising costs Options issued Loss attributable to members of the company Balance at 30 June 2007 Balance at 1 July 2007 Options issued Loss attributable to members of the company Balance at 30 June 2008	3 - - - 3 6,012,500 - - - 6,012,500 - (836,595) - - (836,595) - - 173,065 - 173,065 - - - (99,182) (99,182)
	6,012,503 (836,595) 173,065 (99,182) 5,249,791
	6,012,503 (836,595) 173,065 (99,182) 5,249,791 - - 39,201 - 39,201 - - - (755,238) (755,238)
	6,012,503 (836,595) 212,266 (854,420) 4,533,754

Loss for the year equals total recognised income and expenditure.

The accompanying notes form part of these financial statements

38 DART MINING NL 2008 ANNUAL REPORT

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

Note Cash fows from operating activities Interest received Payments to suppliers and employees Net cash fows used in operating activities 17(a) Cash fows from investing activities Payments for exploration costs Purchase of plant and equipment Loan to subsidiary entity Net cash acquired on acquisition of subsidiary 12 Net cash fows used in investing activities Cash fows from fnancing activities Proceeds from issue of ordinary shares Payment of prior year share issue costs Net cash fows from fnancing activities Net increase (decrease) in cash held Cash at the beginning of the fnancial year Cash at the end of the fnancial year 17(b)	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 207,558 27,912 207,558 27,912 (761,702) (79,488) (761,156) (77,596)
	(554,144) (51,576) (553,598) (49,684)
	(1,094,812) (356,471) (1,094,812) (357,229) (203,253) (26,938) (203,253) (26,938) - - (546) - - 1,134 - -
	(1,298,065) (382,275) (1,298,611) (384,167)
	- 5,375,000 - 5,375,000 (118,539) (626,256) (118,539) (626,256)
	(118,539) 4,748,744 (118,539) 4,748,744
	(1,970,748) 4,314,893 (1,970,748) 4,314,893 4,314,896 3 4,314,896 3
	2,344,148 4,314,896 2,344,148 4,314,896

The accompanying notes form part of these financial statements

DART MINING NL 2008 ANNUAL REPORT 39

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

Note Contents

Summary of significant accounting policies
Revenue and expenses
Income tax
Earnings per share
Receivables
Prepayments
Property, plant and equipment
Deferred exploration and evaluation costs
Investment in subsidiary
Payables
Goodwill
Acquisition of businesses
Provisions 14. Issued capital 15. Reserves 16. Franking credits 17. Cash flow reconciliation
Expenditure commitments 19. Subsequent events 20. Employee benefits and superannuation commitments 21. Share-based Payments 22. Key management personnel compensation 23. Auditor’s remuneration 24. Related party disclosures 25. Financial instruments 26. Segment information 27. Contingent liabilities and contingent assets

40 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

1. Summary of significant accounting policies

Statement of compliance

The financial report is a general-purpose financial report which has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law.

The financial report includes separate financial statements of the company and the consolidated financial statements of the Group.

Accounting Standards include Australian equivalents to International Financial Reporting Standards (‘A-IFRS’). Compliance with A-IFRS ensures that the financial statements and notes of the Group and the company comply with International Financial Reporting Standards (‘IFRS). The financial report has also been prepared on an historical cost basis, and is presented in Australian dollars.

The financial statements were authorised for issue by the directors on 16 September 2008.

The following significant policies have been adopted in the preparation and presentation of the financial report:

(a) Adoption of new and revised Accounting Standards

In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has had no impact on the financial results of the Group.

The Group has also adopted the following Standards which only impacted on the Group’s disclosures in the financial statements.

AASB 101 ‘Presentation of Financial Statements’ – revised October 2006

AASB 7 ‘Financial Instruments’

Initial application of the following Standards will not affect any of the amounts recognised in the financial report, but will change the disclosures presently made in relation to the consolidated entity’s and the company’s financial report:

AASB 101 ‘Presentation of Financial Statements’ –	Effective for annual reporting periods beginning on or
revised September 2007	after 1 January 2009
AASB 8 ‘Operating Segments’	Effective for annual reporting periods beginning on or
	after 1 January 2009
Initial application of the following Standards and Interpretations is not expected to have any material impact to the
fnancial report of the consolidated entity and the company:
AASB 3 ‘Business Combinations’	Effective for annual reporting periods beginning on or
	after 1 July 2009
AASB 119 ‘The Limit on a Defned Beneft Asset, Minimum	Effective for annual reporting periods beginning on or
Funding Requirements and their Interaction’	after 1 January 2008
AASB 123 ‘Borrowing Costs’ – revised standard	Effective for annual reporting periods beginning on or
	after 1 January 2009
AASB 127 ‘Consolidated and Separate Financial	Effective for annual reporting periods beginning on or
Statements’	after 1 July 2009
AASB 2007-2 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards arising from AASB Interpretation 12’	after 1 January 2008
AASB 2007-3 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards arising from AASB 8’	after 1 January 2009

DART MINING NL 2008 ANNUAL REPORT 41

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

1. Summary of significant accounting policies (continued)

(a) Adoption of new and revised Accounting Standards (continued)

AASB 2007-8 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards arising from AASB 101’	after 1 January 2009
AASB 2007-6 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards arising from AASB 123’	after 1 January 2009
AASB Interpretation 4 ‘Determining whether an arrangement	Effective for annual reporting periods beginning on or
contains a lease’ (revised)	after 1 January 2008
AASB Interpretation 12 ‘Service Concession Arrangements’	Effective for annual reporting periods beginning on or
	after 1 January 2008
AASB Interpretation 13 ‘Customer Loyalty Programmes’	Effective for annual reporting periods beginning on or
	after 1 July 2008
AASB Interpretation 129 ‘Service Concession	Effective for annual reporting periods beginning on or
Arrangements:Disclosure’ (revised)	after 1 January 2008
AASB Interpretation 14 ‘AASB 119 – The Limit on a Defned	Effective for annual reporting periods beginning on or
Beneft Asset, Minimum Funding Requirements And their	after 1 January 2008
Interaction’
AASB 2008-1 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards – Share based Payments:Vesting Conditions and	after 1 January 2009
Cancellations’
AASB 2008-2 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards – Puttable Financial Instruments and Obligations	after 1 January 2009
arising on Liquidation’
AASB 2008-3 ‘Amendments to Australian Accounting	Effective for annual reporting periods beginning on or
Standards arising from AASB 3 and AASB 127	after 1 July 2009
Improvements to IFRS (2008)	Effective for annual reporting periods beginning on or
	after 1 January 2009
Amendments to IFRS 1 ‘First-time Adoption of International	Effective for annual reporting periods beginning on or
Financial Reporting Standards’	after 1 January 2009
IAS 27 ‘Consolidated and Separate Financial Statements	Effective for annual reporting periods beginning on or
– Cost of an Investment in a Subsidiary, Jointly Controlled	after 1 January 2009
Entity or Associate’
IFRIC 15 ‘Agreements for the Construction of Real Estate’	Effective for annual reporting periods beginning on or
	after 1 January 2009
IFRIC 16 ‘Hedges of a Net Investment in a Foreign	Effective for annual reporting periods beginning on or
Operation’	after 1 October 2008

The directors anticipate that the adoption of these Standards and Interpretations will have no material financial impact on the financial statements of the company or the Group.

These Standards and Interpretations will be first applied in the financial report of the Group that relates to the annual reporting period beginning after the effective date of each pronouncement.

42 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

1. Summary of significant accounting policies (continued)

(b) Critical accounting judgements and sources of estimations

In applying the Group’s accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities. These estimates and assumptions are made based on past experience and other factors that are considered relevant. Actual results may differ from these estimates. All estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects both current and future periods.

The following describes critical judgements that management has made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Impairment of deferred exploration costs

The Group’s accounting policy for exploration expenditure results in some items being capitalised for an area of interest where it is considered likely to be recoverable in the future or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. Management is required to make certain estimates and assumptions as to future events and circumstances, which may change as new information becomes available. If a judgement is made that recovery of a capitalised expenditure is unlikely, the relevant amount will be written off to the income statement.

(c) Principles of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including special purpose entities) controlled by the Company (its subsidiaries) (referred to as ‘the Group’ in these financial statements). Control is achieved where the Company has the ability to control the financial and operating policies of an entity so as to obtain benefits from its activities.

The result of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. In the separate financial statements of the Company, intra-group transactions (‘common control transactions’) are generally accounted for by reference to the existing (consolidated) book value of the items. Where the transaction value of common control transactions differ from their consolidated book value, the difference is recognised as a contribution by or distribution to equity participants by the transacting entities.

(d) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, and money market investments readily converted to cash, net of outstanding bank overdrafts.

(e) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

Interest Income

Interest revenue is recognised on a proportional basis taking into account the interest rate applicable to the financial assets.

DART MINING NL 2008 ANNUAL REPORT 43

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

1. Summary of significant accounting policies (continued)

(f) Income tax

Current tax

Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable).

Deferred tax

Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items. The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.

In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent it is probable that sufficient taxable amounts will be available against which deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. Furthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from goodwill.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, branches, associates and joint ventures except where the consolidated entity is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets arising from deductible temporary differences associated with these investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability giving rise to them are settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the consolidated entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

(g) Goodwill

Goodwill acquired in a business combination is initially measured at its cost, being the excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised. Goodwill is subsequently measured at its cost less any impairment losses.

44 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

1. Summary of significant accounting policies (continued)

(h) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except:

where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(i) Receivables

All debtors are recognised and carried at original invoice amount less a provision for any uncollectible debts. Collectability of debtors is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is raised where some doubt as to full collection exists.

(j) Exploration and evaluation assets

The consolidated entity applies AASB 6 Exploration For and Evaluation of Mineral Resources. Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against operating results in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with the clauses of the mining permits. Such costs are determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted for on a prospective basis. In determining the costs of site restoration there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly the costs are determined on the basis that restoration will be completed within one year of abandoning a site.

DART MINING NL 2008 ANNUAL REPORT 45

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

1. Summary of significant accounting policies (continued)

(k) Impairment of assets

At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to the extent of the impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the assets belongs.

Goodwill, intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually and whenever there is an indication that the asset may be impaired. An impairment of goodwill is not subsequently reversed.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.

(l) Property, plant and equipment

i) Acquisition

Items of property, plant and equipment are initially recorded at cost and depreciated as outlined below.

ii) Depreciation of Property, Plant and Equipment

Property, plant and equipment are depreciated on a straight line basis at rates based upon the expected useful lives of these assets. The useful lives of these assets are detailed in Note 8 to the financial statements.

(m) Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and benefits incidental to ownership.

Operating Leases

The minimum lease payments of operating leases, where the lesser effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as an expense on a straight line basis. Contingent rentals are recognised as an expense in the financial year in which they are incurred.

Finance Leases

Leases which effectively transfer substantially the entire risks and benefits incidental to ownership of the leased item to the group are capitalised at the present value of the minimum lease payments and disclosed as property, plant and equipment under lease. A lease liability of equal value is also recognised. The consolidated entity has no finance leases as at 30 June 2008.

46 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

1. Summary of significant accounting policies (continued)

(n) Financial assets

Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.

Subsequent to initial recognition, investments in subsidiaries are measured at cost in the company financial statements. Subsequent to initial recognition, investments in associates are accounted for under the equity method in the consolidated financial statements and the cost method in the company financial statements. During the financial year Dart Mining NL acquired 100% ownership of Dart Resources Pty Ltd. Dart Resources Pty Ltd is a non-trading subsidiary which holds ownership of one exploration licence currently explored by Dart Mining NL, as detailed in the additional information of this report.

(o) Payables

Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the consolidated entity. Payables to related parties are carried at the principal amount. Interest, when charged by the lender, is recognised as an expense on an accrual basis.

(p) Issued capital

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction in the share proceeds received.

Transaction costs on the issue of equity instruments

Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction of the proceeds of the equity instrument to which the costs relate. Transaction costs are costs that are incurred directly in connection with the issue of those equity instruments and which would not have been incurred had those instruments not been issued.

Interest and dividends

Interest and dividends are classified as expenses or as a distribution of profit consistent with the balance sheet classification of the related debt or equity instruments or component parts of compound instruments.

(q) Employee benefits

Provision is made for employee benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date.

DART MINING NL 2008 ANNUAL REPORT 47

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

1. Summary of significant accounting policies (continued)

(r) Earnings per share (EPS)

Basic EPS is calculated as net profit attributable to members, adjusted to exclude costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted EPS is calculated as net profit attributable to members, adjusted for:

Costs of servicing equity (other than dividends) and preference share dividends;
The after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
Other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

(s) Share-based payments

The Group measures the cost of equity-settled transactions with employees and consultants by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the BlackScholes model, using the assumptions detailed in Note 21.

a) The fair value determined at the grant date of the equity settled share based payment is expensed on a straightline basis over the vesting period, based on the directors’ estimate of shares that will eventually vest.
b) Equity-settled share based payment transactions with other parties are measured at the fair value of the goods and services received, except where the fair value cannot be estimated reliably, in which they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service.

(t) Going concern basis

The consolidated entity is involved in the exploration and evaluation of mineral tenements and as such expects to be cash absorbing until these tenements demonstrate that they contain economically recoverable reserves.

During the year ended 30 June 2008, the Group incurred negative cash flows of $1,970,748. As at 30 June 2008, the Group has a surplus of current assets over current liabilities of $2,095,679. Included in this surplus is cash reserves of $2,344,148. This cash balance broadly approximates the Group’s planned expenditure budget which includes exploration activities for the 12 months to 30 June 2009.

Notwithstanding the above, the financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

To continue as a going concern, the consolidated entity require the generation of sufficient funds from operating activities including successful development of the existing tenements, farm-out of participating interests in the Group’s permits; and/or future equity or debt fund raisings.

Having carefully assessed the uncertainties relating to the likelihood of securing additional funding and the consolidated entity’s and company’s ability to effectively manage their expenditures and cash flows from operations, the directors believe that the consolidated entity and the Company will continue to operate as going concerns for the foreseeable future and therefore it is appropriate to prepare the financial statements on a going concern basis.

48 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

1. Summary of significant accounting policies (continued)

(t) Going concern basis (continued)

In the event that the assumptions underpinning the basis of preparation do not occur as anticipated, there is uncertainty whether the consolidated entity and Company will continue to operate as going concerns. If the consolidated entity and Company are unable to continue as going concerns, they may be required to realise their assets and extinguish their liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

No adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the classification of liabilities that might be necessary should the consolidated entity and company not continue as a going concern.

2. Revenue and expenses

(a) Revenue Continuing operations Interest - other persons/corporations Total revenue (b) Loss before income tax Loss before income tax has been arrived at after crediting/ (charging) the following expenses: Depreciation Share based payments Income tax Income tax recognised in proft and loss The prima facie income tax expense (beneft) on pre tax accounting proft (loss) reconciles to the income tax expense (beneft) in the fnancial statements as follows Loss from continuing operations Income tax expense (beneft) calculated at 30% Effect of non-deductible expenses Effect of unused tax losses and tax offsets not recognised as deferred tax assets Tax losses not brought to account Tax losses brought forward Current year tax losses Tax losses carried forward	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 186,684 76,998 186,684 76,998
	186,684 76,998 186,684 76,998
	40,721 1,109 40,721 1,109 39,201 30,865 39,201 30,865 Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ - - - -
	755,721 101,074 755,238 99,182
	(226,716) (30,322) (226,571) (29,755) 10,203 218 10,203 218 216,513 30,104 216,368 29,537
	- - - -
	100,346 - 98,454 - 721,710 100,346 721,227 98,454
	822,056 100,346 819,681 98,454

3. Income tax

DART MINING NL 2008 ANNUAL REPORT 49

08 NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

4. Earnings per share

Earnings per share
	Consolidated
	2008	2007
	$	$
The following refects the income and share data used in calculating
basic and diluted earnings per share:
Net loss for the year	755,721	101,074
Basic earnings per share	(1.77)c	(1.28)c
Diluted earnings per share	(1.77)c	(1.28)c
Weighted average number of ordinary shares used in the
calculation of basic and diluted earnings per share	42,750,000	7,872,232

Diluted earnings per share is calculated after classifying all options on issue remaining unconverted at 30 June 2008 as potential ordinary shares. As at 30 June 2008, the Company has on issue 24,175,008 options over unissued capital and has incurred a net loss. As the notional exercise price of these options is greater than the current market price of the shares they have not been included in the calculations of diluted earnings per share.

5. Receivables

Accrued interest – other persons/corporations Security deposits GST receivable (net) Other receivables	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 28,160 49,086 28,160 49,086 9,686 4,136 9,686 4,136 66,059 119,675 66,059 118,214 2,060 599 599 599
	105,965 173,496 104,504 172,035

At 30 June 2008 no receivable amounts were past due or impaired

6. Prepayments

Prepayments
Insurance	19,602 17,051 19,602 17,051
	19,602 17,051 19,602 17,051

50 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

7. Property, plant and equipment

	Consolidated Company Plant & equipment Computer Equipment & software Motor vehicles Total Plant & equipment Computer Equipment & software Motor vehicles Total
Gross carrying amount Balance at 1 July 2006 Additions Balance at 1 July 2007 Additions Balance at 30 June 2008 Accumulated depreciation Balance at 1 July 2006 Depreciation expense Balance at 1 July 2007 Depreciation expense Balance at 30 June 2008 Net book value As at 30 June 2007 As at 30 June 2008	- - - - - - - - 8,090 70,476 - 78,566 8,090 70,476 - 78,566
	8,090 70,476 - 78,566 8,090 70,476 - 78,566 23,204 10,021 110,276 143,501 23,204 10,021 110,276 143,501 31,294 80,497 110,276 222,067 31,294 80,497 110,276 222,067
	- - - - - - - - (126) (983) - (1,109) (126) (983) - (1,109)
	(126) (983) - (1,109) (126) (983) - (1,109) (5,089) (19,760) (15,871) (40,720) (5,089) (19,760) (15,871) (40,720)
	(5,215) (20,743) (15,871) (41,829) (5,215) (20,743) (15,871) (41,829)
	7,964 69,493 - 77,457 7,964 69,493 - 77,457
	26,079 59,754 94,405 180,238 26,079 59,754 94,405 180,238

The following useful lives are used in the calculation of depreciation:

Plant and Equipment 3 – 5 years Computer Equipment and Software 3 – 4 years

8. Deferred exploration and evaluation costs

Balance at beginning of fnancial year Additional expenditure carried forward Balance at end of fnancial year	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 1,046,501 - 1,046,501 - 1,198,895 1,046,501 1,198,895 1,046,501
	2,245,396 1,046,501 2,245,396 1,046,501

Ultimate recovery of deferred exploration and evaluation costs is dependent upon success in exploration and evaluation or sale or farm-out of the exploration interests.

9. Investment in subsidiary

Subsidiary – Dart Resources Pty Ltd

-	-	14,001	14,001
-	-	14,001	14,001

DART MINING NL 2008 ANNUAL REPORT 51

08 NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

10. Payables – current

Note Trade and other payables Accrued expenses Accrued audit fees	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 242,089 354,073 242,188 354,655 77,208 16,767 77,208 16,767 20,000 20,000 20,000 20,000
	339,297 390,840 339,396 391,422

Terms and conditions relating to the above financial instruments:

(i) Trade creditors are non-interest bearing and are usually settled on 30 day terms.

(ii) Other creditors are non-interest bearing and have an average term of 30 days.

11. Goodwill

Goodwill on acquisition	10,066 10,066 - -
	10,066 10,066 - -

12. Acquisition of businesses

Name of business acquired Principal activity Date of acquisition Proportion of shares acquired (%) Cost of acquisition $	Name of business acquired Principal activity Date of acquisition Proportion of shares acquired (%) Cost of acquisition $
2008 - - 2007 Dart Resources PtyLtd Mining 31/07/06	- - 100 1,500
Net assets acquired Current assets: Cash assets Receivables Current liabilities: Payables Goodwill on acquisition	Total fair value on acquisition $ $ 2008 2007 - 1,134 - 2,800 - (12,500)
	- (8,566) - 10,066
	- 1,500

13. Provisions

Employee benefts	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 34,739 728 34,739 728
	34,739 728 34,739 728

52 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

14. Issued capital

(a) Issued and paid up capital Fully paid ordinary shares

5,175,908 5,175,908 5,175,908 5,175,908

Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 1 July 1998. Therefore, the Company does not have a limited amount of authorised capital and issued shares do not have a par value.

(b) Movement

Movement
	2008 2007 Number $ Number $
Fully paid ordinary shares Balance at beginning of the fnancial year Shares issued during the year • 12,469,998 shares issued at 5 cents per share to certain directors for interest in tenement • 249,999 shares issued at 5 cents to Minadco Pty Ltd*1as a repayment of loan to Dart Resources Pty Ltd • 30,000 shares issued at 5 cents to acquire Dart Resources Pty Ltd • 5,000,000 shares issued at 7.5 cents as seed capital raising • 25,000,000 shares issued at 20 cents to IPO applicants Less transaction costs arising from issue of shares Balance at end of fnancial year	42,750,000 5,175,908 3 3 - - 12,469,998 623,500 - - 249,999 12,500 - - 30,000 1,500 - - 5,000,000 375,000 - - 25,000,000 5,000,000 - - - (836,595)
	42,750,000 5,175,908 42,750,000 5,175,908

Details

*[1 ] C J Bain holds an indirect interest in Minadco Pty Ltd

(c) Terms and condition of contributed equity

Ordinary shares

Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.

Under ASX Listing Rules, 13,160,412 (2007: 15,812,496) ordinary shares were subject to escrow restrictions. The Company’s Share Registry has holding locks in place on the relevant holdings and will not release them until the expiry of the relevant restriction period or otherwise without ASX approval. The period of escrow is as follows:

Number	Securities	Escrow Period
13,160,412	Ordinaryshares	24 months commencing10 May2007

The balance of the issued capital of the Company, being 29,589,588 (2007: 26,937,504) ordinary shares, is quoted on ASX.

DART MINING NL 2008 ANNUAL REPORT 53

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

14. Issued capital (continued)

(c) Terms and condition of contributed equity (continued)

Partly-paid shares (9c payable)

For every two ordinary shares issued pre-IPO, shareholders also received one partly-paid share credited as paid to 1 cent, with an unpaid amount of 9 cents per partly-paid share. The Company presently has 8,875,000 unlisted partlypaid shares on issue. The partly-paid shares to 1 cent (9c payable), are subject to a 9 cent call between 1 July 2009 and 31 December 2009.

Under ASX Listing Rules, 6,728,165 (2007: 8,743,750) unlisted partly-paid shares were subject to escrow restrictions. The Company’s Share Registry has holding locks in place on the relevant holdings and will not release them until the expiry of the relevant restriction period or otherwise without ASX approval. The period of escrow is as follows:

Number	Securities	Escrow Period
6,728,165	PartlyPaid Shares	24 months commencing10 May2007

Partly-paid shares issued by the Company are not quoted on the ASX.

(d) Share options

Options over ordinary shares

At the end of the financial year, there were 24,175,008 (2007: 2,800,000) unissued ordinary shares in respect of which the following unlisted options were outstanding:

Expiry date	Number	Securities	Escrow period	Exercise price
31 December 2010	2,800,0001	Unlisted options	24 months commencing 10 May 2007	20 cents
31 May2010	21,375,008	Unlisted options	-	20 cents

1 includes 1,000,000 options issued on 3 January 2007 in accordance with the CEO designate contract of employment as described below in Note 21.

During the year 21,375,008 options were issued pursuant to a short form prospectus dated 4 July 2007. These options have an exercise price of 20 cents and an expiry date of 31 May 2010. Since 30 June 2008 no further options have been issued or exercised .

15. Reserves

		Consolidated	Consolidated	Company	Company
		2008	2007	2008	2007
		$	$	$	$
Option reserve
Balance at beginning of fnancial year		173,065	-	173,065	-
Options granted during the year
•	On 18 October 2006 800,000 options granted at fair value of
	7.9 cents per option to third parties as a success fee	-	63,200	-	63,200
•	On 3 January 2007 1,000,000 options granted at fair value of
	7.9 cents per option to J.E. Quayle as share-based payment	39,201	30,865	39,201	30,865
•	On 14 February 2007 1,000,000 options granted at 7.9 cents	-	79,000	-	79,000
	per option to third party as a success fee
Balance at end of fnancial year		212,266	173,065	212,266	173,065

The reserve arises on the grant of share options to third parties and executives as equity-based payments.

54 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

16. Franking credits

There are no franking credits available for the subsequent financial year.

17. Cash flow reconciliation

(u) Reconciliation of loss from ordinary activities after tax to net cash flows from operations

Loss from ordinary activities after tax Non cash fows in operating result Depreciation of property, plant and equipment Share-based payments Provision for holiday pay Operating cash fows not recognised as expense Changes in assets and liabilities Decrease/(Increase) in receivables Increase in prepayments Increase in payables Net cash used in operating activities Reconciliation of cash Cash balance comprises: Cash on hand and at call Term deposits	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ (755,721) (101,074) (755,238) (99,182) 40,721 1,109 40,721 1,109 39,201 30,865 39,201 30,865 34,011 728 34,011 728 67,468 (49,685) 67,531 (49,685) (2,550) (17,051) (2,550) (17,051) 22,726 83,532 22,726 83,532
	(554,144) (51,576) (553,598) (49,684)
	1,232,181 4,314,896 1,232,181 4,314,896 1,111,967 - 1,111,967 -
	2,344,148 4,314,896 2,344,148 4,314,896

(v) Reconciliation of cash

(w) Financing facility

The group has no available finance facilities at balance date.

(x) Non-cash financing and investing activities

There were no non-cash financing or investing activities during the financial year

18. Expenditure commitments

The company has no expenditure commitments at the end of the financial year, except under exploration tenement licences where the controlled entity is required to rehabilitate each licence area to its original state prior to any exploration works. Refundable cash bonds of $10,000 for each of the two Victorian tenements, Dart and Buckland, have been lodged with the Victorian Government. Subsequent to year end, a refundable cash bond of $10,000 in respect of the Tooma tenement has been lodged with the New South Wales Government.

19. Subsequent events

No other matters or circumstances have arisen since the end of the financial year that have significantly affected or may have a significant effect on the financial operations of the consolidated entity, the financial performance of those operations or the financial position of the consolidated entity in the subsequent financial year.

DART MINING NL 2008 ANNUAL REPORT 55

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

20. Employee benefits and superannuation commitments

Employee benefts Provisions (current)	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 34,739 728 34,739 728
	34,739 728 34,739 728

Superannuation

The consolidated entity contributes in accordance with the Government Superannuation Guarantee legislation.

21. Share-based payments

The aggregate share-based payments for the financial year are set out below:

Details of share-based payments Options granted at fair value to third parties as a success fee Fair value of options granted to J.E.Quayle as share-based payment Expense arising from share-based payments	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ - 142,200 - 142,200 39,201 30,865 39,201 30,865 39,201 173,065 39,201 173,065

Executive options

The following table shows options over unissued shares held by the Chief Executive Officer of the Company as at 30 June 2008.

Grantee	Number	Grant date	Vesting date	Expiry date1	Exercise	Fair value at
					price	grant date
J E Quayle	500,000	3 January 2007	6 December 2007	31 December 2010	20 cents	7.9 cents
J E Quayle	500,000	3 January2007	6 December 2008	31 December 2010	20 cents	7.9 cents

1 Expiry date before 31 December 2010 or 3 months after ceasing employment whichever comes first

No executive options were issued or exercised during the year ended 30 June 2008.

Third party options

Options held at the end of the reporting period are as follows

Grantee	Number	Grant date	Vesting date	Expiry date	Exercise	Fair value at
					price	grant date
Investor Resources
Finance Pty Ltd1	400,000	18 October 2006	18 October 2006	31 December 2010	20 cents	7.9 cents
LAH Securities
Pty Ltd2	400,000	18 October 2006	18 October 2006	31 December 2010	20 cents	7.9 cents
Intersuisse
Corporate Ltd	1,000,000	18 October 2006	18 October 2006	31 December 2010	20 cents	7.9 cents

1 a company in which Mr Bain, a director of Dart, has an interest
2 a company in which Mr Udovenya, a director of Dart, has an interest

56 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

21. Share-based payments (continued)

During the year 21,375,008 options were issued pursuant to a short term prospectus dated 4 July 2007. These options have an exercise price of 20 cents and an expiry date of 31 May 2010. These options do not represent payments for goods or services, and is not included as share-based payments. No options were exercised during the year ended 30 June 2008.

Weighted average remaining contractual Life

The share options outstanding at the end of the financial year had a weighted average contractual life of 913 days (2007: 1,278 days)

Performance rights

The following table shows performance rights on issue at 30 June 2008.

Grantee	Number	Grant date	Vesting date	Expiry date	Exercise	Fair value at
					price	grant date
J E Quayle	180,000	27 June 2008	1 January 2010	30 April 2010	-	12.2 cents
C Graves	144,000	27 June 2008	1 January 2010	30 April 2010	-	12.2 cents
M Holland	78,000	27 June 2008	1 January 2010	30 April 2010	-	12.2 cents
S Dunn	78,000	27 June 2008	1 January 2010	30 April 2010	-	12.2 cents
B Lee	24,000	27 June 2008	1 January2010	30 April 2010	-	12.2 cents

The fair value of the performance rights were determined by the use of the Black-Scholes model with the following inputs

Share price	16.7 cents
Volatility	100%
Dividend yield	-
Interest rate	7.75%
Expiry date	30 April 2012

Options and Performance Rights were priced using the Black-Scholes model. Where relevant, the expected life used in the model are based on management’s best estimate for the effects of exercise restrictions, exercise periods and behavioural considerations. Expected volatility is based on management’s best estimate of volume for a gold explorer.

22. Key management personnel compensation

(a) Compensation of key management personnel

The aggregate compensation made to key management personnel of the company and the Group is set out below:

Short-term employee benefts Post-employment benefts Share-based payment	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 343,215 303,390 343,215 303,390 194,676 64,999 194,676 64,999 39,701 30,865 39,701 30,865
	577,592 399,254 577,592 399,254

DART MINING NL 2008 ANNUAL REPORT 57

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

22. Key management personnel compensation (continued)

(b) Remuneration options: granted and vested during the year

500,000 remuneration options granted on 3 January 2007 vested on 6 December 2007. No remuneration options were issued during the year.

(c) Share issued on exercise of remuneration options

No shares were issued on the exercise of remuneration options during the year.

(d) Remuneration performance rights: granted and vested during the year

180,000 performance rights were granted to Mr J E Quayle during the year.

23. Auditor’s remuneration

Amounts received or due and receivable by Deloitte Touche Tohmatsu for: Provision of services for IPO Prospectus Audit or review of the fnancial statements of the entity and any other entity in the economic entity	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ - 14,369 - 14,369 35,553 20,000 35,553 20,000
	35,553 34,369 35,553 34,369

24. Related party disclosures

(a) The key management personnel of the Group during the financial year were:

Directors

Christopher John Bain Bernhard Rupert Hochwimmer Dean George Turnbull Stephen Gary Poke Richard Glenn Udovenya

Other key management personnel

John Edward Quayle

Information on remuneration and retirement benefits of Directors is disclosed in Note 22.

58 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

24. Related party disclosures (continued)

(b) Key management personnel share holdings Fully paid ordinary shares in Dart Mining NL

	Opening balance 1 July Granted as remuneration IPO and market purchases or exercise of options Net change other Closing balance 30 June No. No. No. No. No.
2008 Directors C J Bain1 B R Hochwimmer D G Turnbull S G Poke R G Udovenya Other key management personnel J E Quayle Total 2007 Directors C J Bain B R Hochwimmer D G Turnbull S G Poke R G Udovenya Other key management personnel J E Quayle Total	1,026,666 - 43,334 - 1,070,000 4,500,000 - - - 4,500,000 4,500,000 - - - 4,500,000 3,752,500 - - - 3,752,500 200,000 - - - 200,000 150,000 - - - 150,000
	14,129,166 - 43,334 - 14,172,500
	1 - 400,000 626,665 1,026,666 1 - - 4,499,999 4,500,000 1 - - 4,499,999 4,500,000 - - 252,500 3,500,000 3,752,500 - - - 200,000 200,000 - - 20,000 130,000 150,000
	3 - 675,500 13,456,663 14,129,166

1 Include 270,000 shares held by Investor Resources Finance Pty Ltd , a company in which C J Bain has an interest.

Partly paid shares (9c payable) in Dart Mining NL

2008 Directors C J Bain B R Hochwimmer D G Turnbull S G Poke R G Udovenya Total 2007 C J Bain B R Hochwimmer D G Turnbull S G Poke R G Udovenya Total	503,332 - - - 503,332 2,250,000 - - - 2,250,000 2,250,000 - - - 2,250,000 1,750,000 - - - 1,750,000 100,000 - - - 100,000
	6,853,332 - - - 6,853,332
	- - 503,332 - 503,332 - - 2,250,000 - 2,250,000 - - 2,250,000 - 2,250,000 - - 1,750,000 - 1,750,000 - - 100,000 - 100,000
	- - 6,853,332 - 6,853,332

DART MINING NL 2008 ANNUAL REPORT 59

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

24. Related party disclosures (continued)

(b) Key management personnel share holdings Fully paid ordinary shares in Dart Mining NL (continued)

Key management personnel performance rights holdings

	Opening balance 1 July Granted as remuneration Rights exercised (lapsed) Net change other Closing balance 30 June Vested and exercisable at 30 June
2008 Key management personnel J E Quayle 2007 Key management personnel J E Quayle	- 180,000 - - 180,000 -
	- 180,000 - - 180,000 -
	- - - - - -
	- - - - - -

Key management personnel options holdings

	Opening balance 1 July Granted as remuneration Options exercised (lapsed) Net change Other Closing balance 30 June Vested and exercisable at 30 June*
2008 Directors C J Bain1 B R Hochwimmer D G Turnbull S G Poke R G Udovenya2 Other key management personnel J E Quayle 2007 Directors C J Bain1 R G Udovenya2 Other key management personnel J E Quayle	400,000 - - 513,333 913,333 513,333 - - - 2,250,000 2,250,000 2,250,000 - - - 2,250,000 2,250,000 2,250,000 - - - 1,876,250 1,876,250 1,876,250 400,000 - - 100,000 500,000 100,000 1,000,000 - - 75,000 1,075,000 575,000
	1,800,000 - - 7,064,583 8,864,583 7,564,583
	- - - 400,000 400,000 - - - - 400,000 400,000 - - 1,000,000 - - 1,000,000 -
	- 1,000,000 - 800,000 1,800,000 -

1 Include 535,000 options held by Investor Resources Finance Pty Ltd, a company in which C J Bain has an interest.

2 Include 400,000 options held by LAH Securities Pty Ltd, a company in which R G Udovenya has an interest.

Net change during the financial year represents bonus options issued pursuant to a short term prospectus dated 4 July 2007. These options have an exercise price of 20 cents and an expiry date of 31 May 2010. These options do not represent payments for goods or services, and is not included as share-based payments.

All equity transactions with directors and other key management personnel other than those arising from the exercise of remuneration options have been entered into under terms and conditions no more favourable than those the entity would have adopted if dealing at arm’s length.

60 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

24. Related party disclosures (continued)

(c) Other related party transactions:

There were no related party transactions other than those described in Note 24(e).

(d) Ultimate parent:

Dart Mining NL is the ultimate Australian parent company.

(e) Other transactions and balances with Key Management Personnel:

Legal services at normal commercial rates totalling $3,445 (2007: $89,968) were provided by ResourcesLaw International, of which Richard Udovenya is a partner, during the reporting period. At year end an amount of $495 remained outstanding (2007: $89,968).

There were no non-legal advisory services (2007: $41,250) provided by LAH Securities Pty Ltd, of which Richard Udovenya is a director, during the reporting period. At year end an amount of $NIL remained outstanding (2007: $41,250).

There were no corporate advisory services (2007: $109,500) provided by Investor Resources Finance Pty Ltd of which Chris Bain is a director prior to the listing of the Company on 10 May 2007. At year end no amount remained outstanding (2007: $NIL).

25. Financial instruments

(a) Market risk

The Group’s exposure to market risk primarily consist of financial risks associated with changes in interest rates as detailed in note 25 (g). As the level of risk is low, the Group does not use any derivatives to hedge its exposure. Market risks are managed through cash flow forecasts and sensitivity analysis on a regular basis.

(b) Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of equity. The Group’s capital structure consist of cash and cash equivalents and equity comprising issued capital, reserves and accumulated losses. Operating cash flows are used to maintain and monitor the Group’s operating, investing and financing activities.

Categories of financial instruments

	Consolidated	Consolidated		Company
	2008	2007	2008	2007
	$	$	$	$
Financial assets
Loans and receivables	59,508	-	58,047	-
Cash and cash equivalents	2,344,148	4,314,896	2,344,148	4,314,896
Financial liabilities
Trade payables	339,297	390,840	338,989	390,469
Loans	-	-	407	953

DART MINING NL 2008 ANNUAL REPORT 61

NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

25. Financial instruments (continued)

(c) Credit risk exposure

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Group’s exposure to credit risks are continiously monitored and controlled by counterparty limits that are reviewed and approved by the management on a regular basis.

The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments is limited as the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, represent the Group’s maximum exposure to credit risk.

(d) Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, who have built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching profiles of financial assets and liabilities.

Liquidity and interest risk table

The following table details the Group’s remaining contractual maturity for its financial assets.

	Weighted
	average effective	Less than		3 months to
	interest rate	1 month	1-3 months	1 year	1-5 years
	%	$	$	$	$
Consolidated and company
2008
Non-interest bearing	-	49,822	1,000	-	8,686
Variable interest rate instruments	5.53	1,232,181	-	-	-
Fixed interest rate instruments	6.60	-	535,778	576,189	-
2007
Non-interest bearing	-	-	-	-	-
Variable interest rate instruments	4.91	1,782,064	-	-	-
Fixed interest rate instruments	6.44	-	-	2,527,000	-

62 DART MINING NL 2008 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 200808

25. Financial instruments (continued)

(d) Liquidity risk management (continued)

The following table details the Group’s remaining contractual maturity for its financial liabilities.

	Weighted
	average effective	Less than		3 months to
	interest rate	1 month	1-3 months	1 year	1-5 years
	%	$	$	$	$
2008
Non-interest bearing	-	339,297	-	-	-
Variable interest rate instruments	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-
2007
Non-interest bearing	-	390,840	-	-	-
Variable interest rate instruments	-	-	-	-	-
Fixed interest rate instruments	-	-	-	-	-

(e) Fair values

The directors consider that the carrying amounts of financial assets and financial liabilities recorded at cost less any accumulated impairments in the financial statements approximates their fair values.

The fair values of financial assets and financial liabilities are determined as follows:

Holdings in unlisted shares are measured at cost less any impairments. The directors consider that no other measure could be used reliably.
Other financial assets and financial liabilities are determined in accordance with generally accepted pricing models.

(f) Interest rate risk management

The Group is exposed to interest rate risks as it holds funds at both fixed and variable interest rates. This risk is managed through the use of cash flow forecasts supplemented by sensitivity analysis

The Group currently holds no amounts of borrowed funds.

DART MINING NL 2008 ANNUAL REPORT 63

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2008

25. Financial instruments (continued)

(f) Interest rate risk management (continued)

Interest rate sensitivity analysis

A sensitivity analysis have been determined based on the exposure to interest rates at reporting date with the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the possible change in interest rates.

At reporting date, if interest rates had been 50 basis points higher or lower and all other variables were held constant, the Group’s net loss would decrease by $5,149 or increase by $5,149. (2007 increase by $2,469 or decrease by $2,469). This is mainly due to the Group’s exposure to variable interest rates on cash and cash equivalents.

(g) Leases

Leases relate to rented properties with terms between 3 months to 1 year. The following table details the Group’s remaining lease commitments at 30 June 2008

1-3 months 3 months to 1 year 1-5 years	Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ 71 - 71 - 19,308 15,925 19,308 15,925 - - - -

26. Segment information

The Group operates exploration programmes in Australia. At the date of this report, the Group does not engage in any other type of activities. For the purpose of monitoring performance management reviews the operations as one segment.

27. Contingent liabilities and contingent assets

No contingent liabilities or contingent assets existed at the reporting date except under tenement licences in Victoria and NSW where the controlled entity is required to rehabilitate each licence area to its original state subsequent to any exploration works.

64 DART MINING NL 2008 ANNUAL REPORT

DIRECTORS’ DECLARATION

In accordance with a resolution of the Directors of Dart Mining NL, we state that:

In the opinion of the Directors:
a. the financial statements and notes of the company and of the consolidated entity are in accordance with the Corporations Act 2001, including:
- i. giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2008 and of their performance for the year ended on that date; and
- ii. complying with Accounting Standards and the Corporations Regulations 2001.
b. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2008.

On behalf of the Board

==> picture [109 x 38] intentionally omitted <==

C J BAIN Director

S G POKE Director

Melbourne

16 September 2008

DART MINING NL 2008 ANNUAL REPORT 65

==> picture [465 x 770] intentionally omitted <==

66 DART MINING NL 2008 ANNUAL REPORT

==> picture [463 x 768] intentionally omitted <==

DART MINING NL 2008 ANNUAL REPORT 67

08 ASX ADDITIONAL INFORMATION

Additional information required by the Australian Stock Exchange Ltd Listing Rules and not disclosed elsewhere in this report is as follows. The information is current as at 8 September 2008.

TWENTY LARGEST SHAREHOLDERS

			No. of	Shares
		Percentage	Ordinary	Escrowed –
		of Issued	Shares	not quoted
	Name of Holder	Capital (%)	Held	on ASX
1	North East Geological Contractors Pty Ltd	10.53	4,500,000	4,500,000
2	Tesaneer Pty Ltd	8.19	3,500,000	3,500,000
3	B Hochwimmer and Associates Pty Ltd	7.89	3,375,000	3,375,000
4	J P Morgan Nominees Australia Ltd	4.68	2,000,000
5	ANZ Nominees Ltd	2.92	1,250,000
6	Eagle Eye Metals Limited	2.34	1,000,000
7	Archer Trading NZ LTD	1.75	750,000
8	Saracen Mineral Holdings Limited	1.75	747,500	412,500
9	BR and LR Hochwimmer	1.32	562,500	562,500
9	B Hochwimmer and Associates Pty Ltd	1.32	562,500	562,500
10	Philip Securities Pty Ltd	1.26	540,000
11	Mr. Robert David Boyd and Mrs. Sonia Anne Stafford	1.17	500,000
11	Security and Equity Resources Ltd	1.17	500,000
11	Dahele Pty Ltd	1.17	500,000
12	Mr. John Andrew Elliott	1.05	450,000
13	Saracen Mineral Holdings Limited	0.96	412,500
14	Granite Hills (Victoria) Pty Ltd	0.94	400,000
15	Beronia FS Pty Ltd	0.84	357,142
16	Minadco Pty Ltd	0.83	356,666	222,916
17	Merryl Lynch (Australia) Nominees Pty Ltd	0.70	300,000
17	Mr. Richard Maynard Hedstrom	0.70	300,000
18	HSBC Custody Nominees (Australia) Ltd	0.65	280,000
19	Mr. Kevin Wayne Gray	0.64	275,000
20	Inhouse PtyLtd	0.64	274,093

SHARES ON ISSUE AT 30 JUNE 2008

42,750,000 ordinary fully paid 8,750,000 partly-paid shares (9c payable)

SUBSTANTIAL SHAREHOLDERS

Substantial shareholders as advised to the Company are set out below:

		Percentage of	Partly-paid Shares
Name	No. of Ordinary Shares	Issued Capital (%)	(9c payable)
B R Hochwimmer	4,500,000	10.53	2,250,000
D G Turnbull	4,500,000	10.53	2,250,000
S G Poke	3,752,500	8.78	1,750,000

68 DART MINING NL 2008 ANNUAL REPORT

ASX ADDITIONAL INFORMATION

DISTRIBUTION OF MEMBER HOLDINGS

8 September 2008	Ordinary	Shares
Size of Holding	No. of Holders	No. of Shares
1 – 1,000	-	-
1,001 – 5,000	70	255,130
5,001 – 10,000	192	1,838,884
10,001 – 100,000	265	9,956,675
100,001 and over	61	30,699,311
Total Holders	588	42,750,000

The number of security investors holding less than a marketable parcel is 0.

	Bonus	Options
Size of Holding	No. of Holders	No. of Options
1 – 1,000	5	4,745
1,001 – 5,000	213	913,083
5,001 – 10,000	68	555,791
10,001 – 100,000	185	5,715,008
100,001 and over	48	15,986,381
Total Holders	519	24,175,008

The number of security investors holding less than a marketable parcel of 12,500 securities (4.0 cents on 08/09/08) is 289 and they hold a combined total of 1,506,876 securities.

	Partly-Paid	Shares
		No. of Partly-
Size of Holding	No. of Holders	Paid Shares
1 – 1,000	-	-
1,001 – 5,000	-	-
5,001 – 10,000	-	-
10,001 – 100,000	10	800,000
100,001 and over	13	8,075,000
Total Holders	23	8,875,000

DART MINING NL 2008 ANNUAL REPORT 69

08 ASX ADDITIONAL INFORMATION

VOTING RIGHTS

All shares carry one vote per share without restriction.

OPTIONS ON ISSUE

As at 8 September 2008, a total of 24,175,008 options, of which 21,375,008 are listed on the Australian Securities Exchange, remain outstanding as follows:

21,375,008 listed options exercisable on or before 31 May 2010 at an exercise price of 20 cents each.
800,000 unlisted options exercisable on or before 31 December 2010, subject to ASX escrow until 9 May 2009, at an exercise price of 20 cents each;
1,000,000 unlisted options exercisable on or before 31 December 2010, subject to ASX escrow until 9 May 2009, at an exercise price of 20 cents each;

In addition, 1,000,000 unlisted executive options exercisable at 20 cents have been issued to the executive John Quayle. These executive options vest in two tranches of 500,000 on 6 December 2007 and 6 December 2008, but are subject to ASX escrow until 9 May 2009, are exercisable at any time during the employment of the executive and for 3 months after the executive ceases employment, or 31 December 2010, whichever is the earlier, after which time they lapse.

TENEMENT SCHEDULE

	Licensed	Name & Region of Subject of		Current Benefcial
Tenement Number	Holder	Licence	Area km2	Interest
EL 4724	Dart Mining NL	Buckland, north-east Victoria including	212	100%
		Fairleys prospect
EL 4726	Dart Mining NL	Dart, north-east Victoria including	680	100%
		Mountain View and Mt Elliot prospects
EL 6172	Dart Resources	Tooma, New South Wales	120	100%
	Pty Ltd

TENEMENT APPLICATIONS IN PROGRESS

Tenement Application		Name & Region of Subject of		Current Benefcial
Number	Applicant	Licence	Area km2	Interest
ELA 5058	Dart Mining NL	Cudgewa and Koetong, north-east	1,082	100%
		Victoria abutting Dart EL
ELA 5131	Dart Mining NL	Boebuck, north-east Victoria abutting	445	100%
		Dart EL
ELA 5132	Dart Mining NL	Bunroy, north-east Victoria abutting	325	100%
		Dart EL
ELA 5123	Dart Mining NL	Myrtleford, Victoria	61	100%

70 DART MINING NL 2008 ANNUAL REPORT

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DART MINING NL 2008 ANNUAL REPORT

THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY

72 DART MINING NL 2008 ANNUAL REPORT

CORPORATE DIRECTORY

Dart Mining NL ABN 84 119 904 880

Board of Directors

C J Bain, R G Udovenya, S G Poke, B R Hochwimmer, D G Turnbull

Chief Executive Officer and Company Secretary

J E Quayle

Registered Office

Easy Access to Information

See our website at www.dartmining.com.au for regular quarterly reports and financial results. Additionally, shareholders or interested parties can register to receive emailed updates shortly after the company makes any regular or major announcement.

Annual General Meeting

The second Annual General Meeting of Dart Mining NL will be held at the RACV Building, Bourke Street, Melbourne on 21 November, 2008 at 10am (AEDST).

Level 3, 15 Queen Street, Melbourne 3000

Competent Person’s Statement

Lawyers

ResourcesLaw International, Melbourne

Auditors

Deloitte Touche Tohmatsu, Melbourne

Bankers

Bendigo Bank, Wangaratta

Stock Exchange Listing

The company’s shares are listed on the Australian Securities Exchange Limited. ASX Code: DTM

Information in this report that relates to a statement of exploration results of the Company is based on information compiled by Bernhard Hochwimmer, BSc., AIG., IMGA. Mr Hochwimmer is a Director of Dart Mining NL and has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity undertaken. He is qualified as a competent person as defined in the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” (or “JORC Code”). Mr Hochwimmer consents to the inclusion of this information in the form and context in which it appears in this report.

Share Registry

Link Market Services, Melbourne

PRODUCED BY GRYPHON MANAGEMENT

Level 3, 15 Queen Street Melbourne VIC 3000 Telephone: +61 3 9621 1322 Facsimile: +61 3 9621 1544 Email: [email protected] Website: www.dartmining.com.au

AI assistant

DART MINING NL — Annual Report 2008

64792_rns_2008-10-08_9b6731c2-4605-46c8-847b-18b95a52578e.pdf

OUR OBJECTIVES

OUR VISION

CONTENTS

2007-2008 HIGHLIGHTS

2008-2009 OUTLOOK

CHAIRMAN’S REPORT

CEO’S REPORT

Porphyry Targets

Gold Targets

Sustainability

Outlook

John Quayle

Porphyry Targets

EXPLORATION REVIEW

Unicorn

EXPLORATION REVIEW

Molybdenum

Morgan

EXPLORATION REVIEW

North Mammoth

Reward Copper

Additional Targets

Gold Targets

Mountain View

EXPLORATION REVIEW

Mt Elliot

Fairley’s

SUSTAINABILITY

Community

Environment

Health and Safety

BOARD OF DIRECTORS

JOHN QUAYLE

CHIEF EXECUTIVE OFFICER

CHRISTOPHER BAIN

CHAIRMAN, NON-EXECUTIVE DIRECTOR

RICHARD UDOVENYA

NON-EXECUTIVE DIRECTOR

BERNHARD HOCHWIMMER EXECUTIVE DIRECTOR

STEPHEN POKE

NON-EXECUTIVE DIRECTOR

DEAN TURNBULL EXECUTIVE DIRECTOR

DART MINING NL 2008 FINANCIAL REPORT

CONTENTS

DIRECTORS

Names, qualifications, experience and special responsibilities

08 DIRECTORS’ REPORT

CHIEF EXECUTIVE OFFICER and COMPANY SECRETARY

Interests in the shares and options of the company and related bodies corporate

CORPORATE INFORMATION

Corporate structure

Principal activities

Employees

CONSOLIDATED RESULTS

DIVIDENDS

OPERATING AND FINANCIAL REVIEW

Group overview

Exploration overview

08 DIRECTORS’ REPORT

Financial overview

Operating results for the year

Review of financial position

Cash flows

CAPITAL RAISINGS / CAPITAL STRUCTURE

Summary of shares /options on issue

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

FUTURE DEVELOPMENTS

ENVIRONMENTAL REGULATION

DIRECTORS’ MEETINGS

DIRECTOR AND SENIOR MANAGEMENT DETAILS

Directors

Other key management personnel

REMUNERATION PHILOSOPHY

REMUNERATION REPORT

REMUNERATION STRUCTURE

NON-EXECUTIVE DIRECTOR REMUNERATION

DART MINING NL Annual Report 2008