DART MINING NL - Annual Report 2018

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Annual Financial Report for the financial year ended 30 June 2018

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Table of Contents
Directors’ Report 3
Corporate Governance Statement 11
Auditor’s Independence Declaration 12
Consolidated Statement of Profit or Loss and Other Comprehensive Income 13
Consolidated Statement of Financial Position 14
Consolidated Statement of Changes in Equity 15
Consolidated Statement of Cash Flows 16
Notes to the Consolidated Financial Statements 17
Directors’ Declaration 37
Auditor’s Report 38
ASX Additional Information 40
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ABN 84 119 904 880 Address Level 6, 412 Collins Street Melbourne VIC 3000 Telephone +61 2 6076 2336 Email [email protected] Website www.dartmining.com.au

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Directors’ Report

The Directors of Dart Mining NL submit their report for the year ended 30 June 2018 and to the date of this report.

Operating and Financial Review

Corporate

Several milestones were achieved at a corporate level during the year. Most significant was the settlement of the company’s long running dispute with AusIndustry over Research and Development claims. This issue had been an impediment to company on many fronts not least of which were the limitations it imposed on the company’s ability to raise capital for exploration and development work. Management time and expense associated with the dispute crimped our ability to advance exploration programs at a desirable pace. The issue is now behind us, as are other distracting activities that came in the wake of the board change in June 2015.

In February 2018 the company appointed Dr. Denis Clarke to the board. Denis brings with him enormous experience in the mining business and is particularly strong technically. His input and efforts have enabled the fast tracking of our Lithium exploration program to a point where we are about to embark on a significant drilling program as we further advance our knowledge and understanding of the highly prospective Dorchap Dyke Swarm.

The company has further sought to strengthen its technical credentials through the creation of a technical advisory board. Three appointments have been made so far including Chris Bain (Exploration Geology), David Foster (Metallurgy and Mineral processing) and Dean Turnbull (Exploration Geology). Appointees will assist the board in determining the best strategy for the company.

In May-June 2018 the company successfully completed a capital raising in the form of a Rights Issue and free attaching option. Proceeds raised were $1.927m before costs. Subscription from existing shareholders was very strong. Shortfall placement was made to a range of experienced professional investors.

Resource consultant, RSC Mining and Mineral Exploration Ltd (RSC), was appointed to manage and fast track the Lithium exploration program in the Dorchap Dyke swarm. RSC has helped the company to advance the program rapidly, and we expect to drill test targets in late-2018.

Helicopter surveys identified about one hundred and eighty outcrops in heavily wooded terrain. Subsequently examinations of outcrops using drone aircraft has enabled geological field crews to distinguish those outcrops containing pegmatites as opposed to granite or metasediments. This rapid, efficient, positive identification of pegmatite dykes have significantly advanced the project by reducing the number of outcrops requiring ground truthing. It is estimated that there are 1,800 – 2,500 pegmatite dykes throughout the Dorchap Dyke Swarm so despite our progress to date there is still much exploration remaining.

Commodities

Lithium (Li ₂CO ₃)

Reported spot prices for Lithium Carbonate (Li ₂CO ₃) ex China have been under pressure since the beginning of the year falling to a reported circa US$15,000 per tonne. Contract prices and offtake agreed prices have traded at significant premiums to spot which makes us confident that Lithium Carbonate will offer producers excellent margin for years to come.

Gold (Au)

US$ Gold has been under pressure this year but when measured in A$ it has remained steady with a declining A$/$USD exchange rate. Margins for Australian Gold producers are excellent, and we continue to believe that they will remain elevated for a significant period.

Copper (Cu)

$USD Copper prices have also been under pressure but with exchange rate relief A$ producer margins remain good. Positive fundamentals from the supply and demand side make copper an attractive commodity over the medium and long term.

Molybdenum (Mo)

Molybdenum Oxide prices - having bottomed in 2015 at US$5.00/pound - have more than doubled to circa US$12.00/pound. There are new potential applications for Mo in batteries although the technologies/chemistries are still being assessed. China’s push for better quality steel has led to rising demand for the Mo also. We retain a watching brief on Mo and are particularly interested in its potential application in battery chemistry.

Exploration Review

Dart has achieved several significant milestones over the past year and has made a number of tenement applications over the company’s key projects. These include Retention Licence (RL) applications to secure the Mt. Unicorn base and precious metals regional Porphyry system and the Fairleys Gold Project as well as an expanded mining license to cover the full Mountain View line of gold workings within the Dart Goldfield. Once granted, the Retention Licences will secure tenure over the company’s key projects for up to 10 years, with up to a further 10-year renewal period and ensure Dart Mining is able to continue to build value in the projects and leverage any future improvements in commodity prices.

Dart has continued to build on the discovery of the underexplored Dorchap LCT (Lithium, Cesium, Tantalum) pegmatite swarm, and has identified pegmatites with potential for significant lithium mineralisation. Further lithium exploration has prompted an application for a new exploration license adjacent to the Dorchap Dyke Swarm. Dart’s previously granted tenements and applications cover some 1000 km2. This area hosts prospects that contribute to the company’s three key strategy areas of lithium, orogenic gold and porphyry exploration and development.

Lithium

Financial Markets

Financial markets have remained buoyant in certain sectors whilst others have been hit hard. The junior explorer sector has had a difficult year. Mining Majors have done well, and we anticipate that in time this will trickle down to smaller capitalised mining stocks. There does seem to be the potential for significant M&A activity when you consider the deep discounts on some very attractive mining projects. There seems to be a continued scepticism in the Lithium sector compounded by the opacity of trade in the underlying commodity. Producers of Lithium have enjoyed an extended period of excellent margins and continue to do so. It seems that investors are failing to grasp the “once in a century” scale of global electrification that is upon us. As one Lithium producer CEO put it “financial markets seem to be operating in a parallel universe”

Lithium mineralisation was first confirmed by Dart Mining from the southern end of the Dorchap Dyke Swarm at Glen Wills (See DTM ASX 9 August 2016) with two grab samples taken at the Blue Jacket Dyke showing results of up to 1.57% (Li2O). Further results were reported (ASX 3 April 2017) from limited grab and rock chip sampling along the northern end of the Dyke Swarm with up to 4m @ 1.13% (Li2O) at the Gosport dyke group and (ASX 10 May 2018) a grab sample of 2.37% Li2O from the Boones area – Eskdale. The identification of spodumene (the most common hard rock lithium ore mineral) and more recently petalite by X-ray diffraction (XRD) within the dykes along the northern section of the Swarm near Eskdale prompted a focused, fast-tracked exploration program for 2018.

Directors’ Report

Dart recently announced the appointment of international geological contracting and consulting group, RSC Mining and Mineral Exploration Ltd (RSC), (DTM ASX 21 June 2018) and a successful capital raising of $1.927m (DTM ASX 24 July 2018). This enabled a field work program to get underway to rapidly ground check up to 184 helicopter targets identified during extensive surveys of the dyke swarm. The current field program continues to systematically assess the targets with ground crews of up to 3 geologists and field assistants. Drilling is planned over several phases to allow fast-track testing of several pegmatite dykes where drill access is more easily established with minimal ground disturbance. This staged approach should allow timely work plan approvals and initial drill assay results possibly as early as December. Ongoing field checks are expected to identify further new dykes that require follow-up exploration.

Orogenic Gold

The Orogenic gold strategy aims to identify and further define gold resources within the current tenement holdings and identify prospective new areas. The key gold prospects are located at Rushworth, Mountain View, Fairleys, Onslow / Onslow South and Granite Flat, held under various mining, retention and exploration license tenure.

Rushworth Gold Project

At Rushworth, accounts of coarse, visible gold means there is a significant nugget effect that will make individual drill sample grades unrepresentative. To partly overcome this problem, a series of close-spaced reverse circulation (RC) drill sections has been proposed, but not yet approved, along some 400m of the reef system. These drill sections would act as a bulk sample collection method (totaling several hundred tonnes once combined) to test the stacked fault reef geological model and target sections with previous high-grade drill intercepts along the fault system. The drill sections would each make up a number of individual bulk samples along the strike of the mineralised system. Processing of the bulk samples would allow reconciliation of drill grades from past exploration RC drilling and also test the geological model for the area with the aim to better define the average gold grade and potential economics of the project. Further drilling across the Rushworth mining licenses and trial mining pits would be dependent upon the results of this initial program.

Dart remains committed to the development of this new porphyry province and further unlocking its potential. An RL application (RL006616) was made in October 2017 to secure the Unicorn base and precious metal porphyry system near Corryong to allow further development of the porphyry discovery should commodity prices improve.

The granting of EL006277 at Granite flat now expands the breadth of porphyry potential held by the company with the Banimboola Granodiorite known to host porphyry style stockwork copper and gold mineralisation as well as high sulphide lode gold reefs. Porphyry exploration is best suited to collaborative partnerships with significant interest now being expressed in the southern end of the Lachlan Fold Belt by major mining companies.

Financial overview

Operating results for the year

The loss for the consolidated entity after income tax was $2,453,665 (2017: loss $715,393). This result is consistent with expectations of costs associated with the exploration and development programs budgeted and undertaken that reflect:

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

Review of financial position

At the end of the financial year, a proportion of the funds raised in prior financial years were held by the Group as cash investments for use in future financial periods. The Group strives to maximise the return on these funds for exploration purposes by investing surplus funds and minimising expenditure on corporate overheads.

Mountain View Gold Project

The Mountain View Mining license (MIN5559) was surrendered in order to allow for the application for a larger Mining Licence (MIN006619), which would support the optimal open pit design for the possible Mountain View development and other similar targets identified immediately along strike. MIN006619 license application is proceeding through the approvals pathway and is expected to be granted in the December Quarter 2018.

Fairlys Gold Project

An RL application (RL006615) was made in October 2017 to secure the Fairleys Gold Project near Bright. We expect approval by March 2019. Fairleys is a disseminated sulphide gold project with mineralisation similar to the upper sections of the Fosterville Fault, currently being mined in Central Victoria by Kirkland Lake Gold Ltd. Once approved, further resource definition work can be advanced allowing an assessment of project economics and the direction of further work.

Porphyries

Dart was the first explorer to recognize the potential for and go on to define a new porphyry mineralisation province in Victoria’s north east. Dart pioneered a geological model that identified the potential for mineralised porphyry systems in the north east in 2006. This model was instrumental in the identification of the Unicorn and Morgan base and precious metals porphyry systems discovered in 2008 and is still in use by the company today. This early model is now being substantiated by the Geological Survey of Victoria with recent published developments in the understanding of the geological history of eastern Australia.

Directors’ Report

Information on 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

James Chirnside Chairman / Managing Director Appointed 18 June 2015

James Chirnside has been professionally engaged in financial and commodity markets over a thirty--year period. Since returning to Australia and establishing his own asset management company in 2002, James has been involved in equities investment across the Asia Pacific region.

In 1992 James moved to Hong Kong with Regent Fund Management where he was responsible for resources investment as well as the firm’s proprietary activities in base and precious metals. He worked for Investment Bank County NatWest (London) where he traded financial and commodity physical and derivative instruments. James managed the overnight commodity--trading desk for Bell Commodities (Melbourne) where mining clients hedged metal production through the London Metal Exchange. During the early part of his career he worked for global commodity trading house Bunge where he traded in a range of food, fiber, steel and metal commodities.

Prior to studying at Edith Cowan University in Perth, Western Australia, James worked for Mt Newman Mining in the Pilbara region as a geologist’s assistant.

Other current directorships of listed companies

Dart Mining NL Mercantile Investments Ltd WAM Capital Ltd Cadence Capital Ltd Ask Funding Ltd IPE Limited

Former directorships of listed companies in the last three years

None

Luke Robinson Non-executive Director (independent) Appointed 18 June 2015

Luke Robinson has worked in Financial Markets for 20 years with a number of stockbroking and advisory firms including Phillip Capital and Citi Group.

Recently he has worked as an executive director of Melanesian Exploration, a privately held company, where he was responsible for researching, identifying and acquiring mainly petroleum assets in Papua New Guinea. Luke was a senior client advisor with Philip Capital where he was responsible for advising Institutional and Sophisticated individual investors in the Australian share market. Luke’s main focus was in resources companies including mining and energy where he originated and distributed capital raisings for small and mid-sized companies. Luke holds a B. Sc. in Microbiology from the University of Melbourne.

Other current directorships of listed companies None.

Former directorships of listed companies in the last three years None.

Russell Simpson Non-executive Director Appointed 18 June 2015

Russell Simpson has been a successful Riverena Farmer, Merino breeder and irrigator from two Murray River water irrigation schemes for over 40 years. Taking a keen interest in commodity markets, particularly agricultural, gold and metals for the past 20 years, he has been an investor in Dart Mining since 2008 and a substantial shareholder since 2009.

Other current directorships of listed companies None.

Former directorships of listed companies in last three years None.

Denis Clarke Non-executive Director (independent) Appointed 14 March 2018

Dr Clarke is a geologist with over 50 years of experience in senior technical, financial and corporate positions in the mining and exploration industry globally. In particular, over 16 years Dr Clarke played a significant role in the extraordinary growth of Plutonic Resources Limited through his positions as General Manager of the Exploration, Finance and Administration, and Corporate Divisions of the company at various times. He was part of the team which transformed Plutonic into one of Australia’s largest gold producers with up to five operating mines and a market capitalisation of over $1 billion. Prior to joining Plutonic, he spent 10 years in exploration mostly in Canada with Rio Algom Limited (a subsidiary of Rio Tinto). Post-1998, as Director and Consultant for 10 years, he contributed to the development of Troy Resources Limited from small explorer to successful international gold miner. He has been Non-Executive Chairman of five ASX-listed exploration and mining companies including BCD Resources Limited (formerly Beaconsfield Gold Limited). Additionally, he has served as Non-Executive director of four other listed resource companies.

Dr Clarke holds a B. Sc. in Geology and B. A. (Economics and Statistics) from Queensland University and a Ph. D. (Geology) from Stanford University in California. He is a Fellow of the Australasian Institute of Mining and Metallurgy.

Meredith Lyons Alternate Non-executive Director Appointed 23 June 2015

Meredith was appointed as an alternate Director by Russell Simpson to act on his behalf when he is not able to exercise his powers as a Director. Her appointment will continue until Mr Simpson revokes it or ceases to be a Director, whichever occurs first.

Other current directorships of listed companies None.

Former directorships of listed companies in last three years None.

Julie Edwards Company Secretary

Appointed 1 July 2015

Julie Edwards was appointed as the Chief Financial Officer of Dart on 8 July 2015. She has had over 20 years’ experience and involvement in the management of accounting and finance functions. She holds a Bachelor of Commerce degree, is a member of CPA Australia, holds a CPA Public Practice Certificate and is a registered Tax Agent.

Other current directorships of listed companies None.

Former directorships of listed companies in last three years None.

Directors’ Report

Significant events after balance date

Shareholdings of directors and other key management personnel

In July 2018 the Company placed the shortfall of the Entitlement Offer under the prospectus lodged on 30 May 2018. The amount raised under the shortfall was $1,122,687 bringing the total amount raised under the Entitlements Offer to $1,927,265. 124,743,041 fully paid ordinary shares were issued under the shortfall placement at $0.009 per share with attaching options exercisable at one cent and expiring 28 February 2019.

The interests of each director and other key management personnel, directly and indirectly, in the shares and options of Dart Mining NL at the date of this report are as follows

Key management Ordinary Listed options over	Key management Ordinary Listed options over	Key management Ordinary Listed options over
personnel shares ordinary shares
R M Simpson 51,275,683 18,888,888
J Chirnside 5,940,595 2,970,298
L Robinson 2,962,963 740,741
D Clarke	22,222	5,556

Future developments, prospects and business

strategies

The company will continue to advance exploration activities in its three nominated strategies those being; Lithium, Orogenic Gold, and Porphyries. Field work emphasis will be in Lithium exploration in the near term but the company has scheduled additional exploration and development activities for Orogenic Gold and Porphyries over the coming months.

Corporate information

As the Group 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.

Corporate structure

Dart Mining NL is a no liability company limited by shares that is incorporated and domiciled in Australia. Dart Mining NL has prepared a consolidated financial report incorporating Dart Resources Pty Ltd, Mt Unicorn Holdings Pty Ltd and Mt View Holdings Pty Ltd all of which were controlled by the Company (comprising the Group) during the financial year and are included in the financial statements.

The Board of Directors believe they have been compliant with the continuous disclosure requirements throughout the reporting period and to the date of this report.

Environmental regulation

Principal activities

The company continues to pursue its minerals exploration activities with a focus on its Dorchap Lithium project. Orogenic Gold projects have also been advanced and joint venture discussion around its Porphyry tenement assets have commenced with multiple counterparties.

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 either the year ended 30 June 2018 or at the date of this report.

Employees

The Company had 4 employees as at 30 June 2018 (2017: 5 employees).

Directors Meetings

Dividend

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

The number of Directors meetings held during the year and the numbers of meetings attended by each Director and Committee member were as follows:

Summary of shares and options on issue

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At 30 June 2018, the Group has 731,871,191 ordinary shares and Board of Directors
295,087,533 listed options on issue. Details of the options are as follows: Directors Held Entitled to Attended
attend
Number of
J Chirnside 9 9 9
shares under Class of Exercise price Expiry date
option shares (cents) D Clarke 9 5 5
L Robinson 9 9 9
295,087,533 Ordinary 1 28 February 2019
R Simpson 9 9 9
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During the financial year, no incentive rights were granted to Key Management Personnel of the Company.

There were no meetings held by the remuneration and nomination committee or audit and risk committee.

Significant changes in state of affairs

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

Indemnification and insurance of directors and officers

The Company has entered into Deeds of Indemnity with the Directors and Officers of the Company, 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.

Directors’ Report

Proceedings on behalf of the Company

No persons have applied for leave of a Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year.

Non-audit services

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 .

Auditor independence declaration

The auditor’s independence declaration for the year ended 30 June 2018 has been received and is included in this report.

Remuneration Report - Audited

This remuneration report, which forms part of the Directors’ report, sets out information about the remuneration of the Group’s directors and other key management personnel for the financial year ended 30 June 2018. The prescribed details for each person covered by this report are detailed below.

Details of Directors and other Key

Management Personnel

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

Directors

J Chirnside (appointed 18 June 2015) L Robinson (appointed 18 June 2015) R Simpson (appointed 18 June 2015) D Clarke (appointed 14 March 2018)

Other Key Management Personnel D G Turnbull (resigned on 30 April 2018)

Remuneration structure

In accordance with best practice corporate governance, the structure of non-executive and executive director 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 at a cost that 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 of the Company’s shareholders. An amount not exceeding the sum determined is then divided between the directors as agreed whilst maintaining a surplus amount that can be attributed to additional Non-executive Directors should they be appointed at any time. The latest determination was sought and granted at the Company’s AGM on 2 October 2012 whereby shareholders approved an aggregate remuneration of $475,000 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 Group. Directors who are called upon to perform extra services beyond the Director’s ordinary duties or who are members of Board Committees may be paid additional fees for those services.

The remuneration of Non-executive Directors for the financial year ended 30 June 2018 is detailed in this report.

Senior executive remuneration

Objective

Remuneration philosophy

The Board of Directors of Dart Mining NL is responsible for determining and reviewing compensation arrangements for the Directors, the Managing Director and other key management personnel after consideration is given to the recommendations of the Company’s Remuneration and Nomination Committee. The Remuneration and Nomination Committee’s policy is to ensure that a 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. The Board of the Company reviews and adopts or amend the recommendations of the Remuneration and Nomination Committee as proposed. The officers of the Company are given the opportunity to receive their base emolument in a variety of forms, including cash, fringe benefits such as motor vehicles and incentive rights. It is intended that the manner of payment chosen will be optimal for the recipient without creating undue cost to the Group.

To assist in achieving these objectives, the Board’s objective is to link the nature and amount of Directors and other key management personnel 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 remuneration is set at levels approved by the Board.

The Board 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 all senior executives.

Service contracts

Service contracts were entered into with Executive Directors and Specified Executives.

The Board has implemented these guaranteed levels of remuneration which are not dependent on performance in order to ensure the Group’s ability to retain quality personnel.

Employment Agreements are entered into with Executive Directors and specified executives.

Director’s Report

Managing Director

The terms of an employment agreement with the MD, James Chirnside, issued on 19 June 2015 include inter alia :

A fixed remuneration package of $150,000 plus superannuation per annum, and director’s fees of $30,000 plus Superannuation whilst engaged as a director of Dart Mining NL.
Reimbursement of all business-related expenses and a motor vehicle for business use and reasonable private use or a reasonable allowance should he provide his own motor vehicle to perform work for Dart.
The agreement can be terminated by either party upon 3 months’ notice being given.

Dean G Turnbull (resigned 30 April 2018)

The terms of an employment agreement with Dean Turnbull include inter alia :

A remuneration package of $ 135,000 plus Superannuation per annum, with annual reviews, together with reimbursement of all business related expenses including motor vehicle running and maintenance expenses plus statutory annual leave entitlements;
A restraint on Dean 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 the Company;
The agreement can be terminated by either party upon 3 months notice being given; and
A bonus may be paid to Dean at the sole discretion of the Board which is based on certain performance criteria being exceeded for any predetermined period.

Other Key Management Personnel

All other KMP have rolling contracts with standard termination provisions as follows:

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Notice Payment in Treatment of STI on termination
period lieu of
notice
Resignation 1 - 3 months 1 - 3 months Unvested awards forfeited
Termination for cause 1 month 1 month Unvested awards forfeited. Claw back of deferred STI payments at
the Board’s discretion
Termination in cases of disablement, 3 months 3 months Claw back of deferred STI payments at the Board’s discretion
redundancy or notice without cause
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Remuneration Summary

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Short term benefits Post-employment Share- Termination Total Percentage of
benefits based payments share-based
payments payments
Salaries, Cash Non- Superannuation Options/
fees and bonus monetary Incentive
leave benefits rights
2018 $ $ $ $ $ $ $ %
Executive Directors
James Chirnside 180,000 - - 17,100 - - 197,100 0.00%
Non-executive Directors
Current
D Clarke 9,100 - - - - - 9,100 0.00%
Luke Robinson 30,000 - - 2,850 - - 32,850 0.00%
Russell Simpson 30,000 - - 2,850 - - 32,850 0.00%
Key Management Personnel
Dean G Turnbull 146,328 - - 11,428 - - 157,756 0.00%
395,428 - - 34,228 - - 429,656 0.00%
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Director’s Report

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Short term benefits Post-employment Share- Termination Total Percentage of
benefits based payments share-based
payments payments
Salaries, Cash Non- Superannuation Options/
fees and bonus monetary Incentive
leave benefits rights
2017 $ $ $ $ $ $ $ %
Executive Directors
James Chirnside 178,750 - - 16,981 - - 195,731 0.00%
Non-executive Directors
Current
Luke Robinson 30,000 - - 2,850 - - 32,850 0.00%
Russell Simpson 30,000 - - 2,850 - - 32,850 0.00%
Key Management Personnel
Dean G Turnbull 134,579 - - 12,785 - - 147,364 0.00%
373,329 - - 35,466 - - 408,795 0.00%
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Bonuses

No cash bonuses were granted to Executive Directors during the financial year ended 30 June 2018 (2017: $nil).

Employee options

At the end of the financial year, there were no share-based payment arrangements in existence.

The following table summarises the value of remuneration options and incentive rights granted, exercised or lapsed during the year:

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Value of incentive rights Value of options Value of options Value of options lapsed
granted exercised cancelled at lapse date
$ $ $ $
S Dunn - - - 3,840
J Nethersole - - - 1,850
N Purden - - - 3,470
D G Turnbull - - - 1,850
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Directors’ Declaration

This directors’ report is signed in accordance with a resolution of directors made pursuant to s.298(2) of the Corporations Act 2001 .

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___
Luke Robinson
Director
Russell Simpson
Director
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___ James Chirnside Chairman

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___ ___ Dennis Clarke Russell Simpson Director Director Melbourne 27 September 2018

Corporate Governance Statement

The Board of Directors of Dart Mining NL (the Company) is responsible for establishing the corporate governance framework of the Group having regard to the ASX Corporate Governance Council (CGC) published guidelines as well as its corporate governance principles and recommendations. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable.

The Company’s corporate governance statement for 2018 is located on the Company’s website at www.dartmining.com.au – about us – Corporate Policy.

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CE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF DART MINING NL

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I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018 there have been:

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(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

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MORROWS AUDIT PTY LTD

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IAN L. JENKINS

Director

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Melbourne: 27 September 2018

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Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the financial year ended 30 June 2018

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Consolidated Group
2018 2017
Note $ $
Continuing operations
Revenue 4 2,680 15,561
Consultancy fees (57,646) (66,097)
Professional fees (177,539) (148,796)
Employee benefits expense (175,636) (184,453)
Exploration costs written-off (1,653,711) (67,316)
Depreciation and amortisation expense (13,799) (17,272)
Litigation expense (85,899) -
Office expenses (76,708) (53,019)
Finance expenses (2,531) (2,086)
Administrative expenses (179,781) (167,253)
Travel related expenses (33,095) (24,662)
Expenses (2,456,345) (730,954)
Profit/(loss) before income tax expense 5 (2,453,665) (715,393)
Income tax expense 6 - -
Profit/(loss) for the year (2,453,665) (715,393)
Other comprehensive income
Items that will not be reclassified to profit or loss - -
- -
Items that may be reclassified subsequently to profit or loss
- -
Other comprehensive income for the year
Total comprehensive income for the year (2,453,665) (715,393)
Attributable to:
Net profit/(loss) attributable to
Members of the parent entity (2,453,665) (715,393)
- -
Non-controlling interests
Total comprehensive income (2,453,665) (715,393)
Earnings per share
From continuing and discontinued operations
Basic earnings per share (cents) 9 (0.44) (0.21)
Diluted earnings per share (cents) 9 (0.35) (0.21)
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The accompanying notes form part of these financial statements

Consolidated Statement of Financial Position As at 30 June 2018

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Consolidated
30 June 2018 30 June 2017
Note $ $
ASSETS
Current assets
Cash and cash equivalents 10 675,461 218,722
Trade and other receivables 11 22,603 8,916
Other assets 15 10,205 24,000
Total current assets 708,269 251,638
Non-current assets
Property, plant and equipment 13 74,110 62,555
Other non-current assets 15 80,866 239,214
Deferred exploration and evaluation costs 14 7,571,747 8,266,729
Total non-current assets 7,726,723 8,568,498
TOTAL ASSETS 8,434,992 8,820,136
LIABILITIES
Current liabilities
Trade and other payables 16 272,810 95,245
Provisions 17 67,949 84,803
Total current liabilities 340,759 180,048
TOTAL LIABILITIES 340,759 180,048
NET ASSETS 8,094,233 8,640,088
EQUITY
Issued capital 18 21,841,904 19,934,094
Reserves 27 - 11,010
Retained earnings (13,747,671) (11,305,016)
TOTAL EQUITY 8,094,233 8,640,088
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The accompanying notes form part of these financial statements

Consolidated Statement of Changes in Equity For the financial year ended 30 June 2018

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Ordinary share Option reserve Accumulated Total
capital losses
Consolidated $ $ $ $
Balance at 1 July 2016 18,925,999 193,060 (10,771,673) 8,347,386
Comprehensive income
- -
Profit/(loss) for the year (715,393) (715,393)
- - - -
Other comprehensive income for the year
- -
Total comprehensive income for the year (715,393) (715,393)
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued - - - -
Fair value of lapsed options transferred - (182,050) 182,050 -
- -
Shares issued during the year 1,059,664 1,059,664
- -
Capital raising costs (51,569) (51,569)
Total transactions with owners and other 1,008,095 - - 1,008,095
transfers -
Balance at 30 June 2017 19,934,094 11,010 (11,305,016) 8,640,088
Balance at 1 July 2017 19,934,094 11,010 (11,305,016) 8,640,088
Comprehensive income
-
Profit/(loss) for the year (2,453,665) (2,453,665)
- - - -
Other comprehensive income for the year
- -
Total comprehensive income for the year (2,453,665) (2,453,665)
Transactions with owners, in their capacity as
owners, and other transfers
Options and performance rights issued - - - -
Fair value of lapsed options transferred - (11,010) 11,010 -
- -
Shares issued during the year 2,077,484 2,077,484
- -
Capital raising costs (169,674) (169,674)
Total transactions with owners and other 1,907,810 - - 1,907,810
transfers
Balance at 30 June 2018 21,841,904 - (13,747,671) 8,094,233
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The accompanying notes form part of these financial statements

For the year ended 30 June 2018

Consolidated Statement of Cash Flows

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Consolidated
2018 2017
Note $ $
Cash flows from operating activities
Research and development grant received - 13,097
Interest received 2,455 2,512
Interest paid (742) -
Payments to suppliers and employees (697,743) (854,810)
Net cash provided by/(used in) operating activities 22a (696,030) (839,201)
Cash flows from investing activities
Payments for exploration costs (507,557) (371,315)
Purchase of investments - (3,608)
Disposal/(purchases) of property, plant and equipment (45,816) (11,847)
Security deposits refunded (held) (18,000) -
Net cash provided by/(used) in investing activities (571,373) (386,770)
Cash flows from financing activities
Proceeds from issue of ordinary shares 1,833,816 1,059,664
Payment of share issue costs (109,674) (51,569)
Net cash provided by/(used in) financing activities 1,724,142 1,008,095
Net increase/(decrease) in cash held 456,739 (217,876)
Cash and cash equivalent at the beginning of the financial year 218,722 436,598
Cash and cash equivalent at the end of the financial year 10 675,461 218,722
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The accompanying notes form part of these financial statements

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

Note 1 Corporate information

The consolidated financial statements of Dart Mining NL and its subsidiaries (collectively, the Group) for the year ended 30 June 2018 were authorised for issue in accordance with a resolution of the Directors on 27 September 2018.

Dart Mining NL (the Company or the parent) is a for profit company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Stock Exchange.

Note 2 Summary of significant accounting policies

Basis of preparation

These financial statements are general-purpose financial statements which have been prepared in accordance with the Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 Australian Accounting Standards set out accounting policies that the Australian Accounting Standards Board has concluded would result in financial statements containing relevant and reliable information

about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and

notes also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise.

Except for cash flow information, the financial statements have been prepared on an accrual basis and are based on historical costs, modified where applicable by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(a) Principles of consolidation

The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Dart Mining NL at the end of the reporting period. A controlled entity is any entity over which Dart Mining NL has the ability and right to govern the financial and operating policies so as to obtain benefits from the entity’s activities.

The result of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate. A list of controlled entities is contained in Note 12 to the financial statements.

In preparing the consolidated financial statements, all intra-group balances and transactions between entities in the consolidated group have been eliminated in full.

(b) Income tax

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense/ (income).

Current income tax expense charged to profit or loss is the tax payable on taxable income. (Current tax liabilities)/assets are measured at the amounts expected to be paid to/ (recovered from) the relevant taxation authority.

Deferred income tax expense reflects movements in deferred tax assets and deferred tax liability balances during the year and unused tax losses.

The nature of the operations and principal activities of the Group are described in the Directors’ Report. Information on the Group’s structure is provided in Note 12. Information on other related party relationships is provided in Note 25.

Current and deferred income tax expense/ (income) is charged or credited outside profit or loss when the tax relates to items that are recognised outside profit or loss.

Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. With respect to non-depreciable items of property, plant and equipment measured at fair value and items of investment property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the basis that the carrying amount of the asset will be recovered entirely through sale.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

Where temporary differences exist in relation to investments in subsidiaries, branches, associates and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future.

Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where : (a) a legally enforceable right of offset exists; and (b) the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

Notes to the Consolidated Financial Statements

For the financial year ended 30 June 2018

(c) Property, plant and equipment

i) Acquisition

Items of property, plant and equipment are initially recorded at cost net of GST 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 13 to the financial statements.

iii) Disposal

The gain or loss arising on disposal or retirement of property, plant or equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit and loss.

iv) Subsequent measurement

Property, plant and equipment are subsequently measured at amortised cost. Amortised cost is calculated as the amount at which the asset is measured at initial recognition less any depreciation or impairment.

(d) Deferred exploration and evaluation

In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. Other than Research and Development costs (see Note 2 (e)) 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.

(e) Research and development costs

Research costs relating to the development of exploration models are expensed as incurred.

(f) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the Group commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified at fair value through profit or loss in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at fair value, amortised cost using either the effective interest method or cost Amortised cost is calculated as the amount at which the financial assets or financial liability is measured at initial recognition less principal repayments, any reduction for impairment and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, by reference to similar instruments and option pricing models.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) over the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is de- recognised.

(ii)Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is de-recognised.

(iii) Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is de-recognised.

Impairment

At the end of each reporting period the Group assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the Group recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

De-recognition

Financial assets are de-recognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are de-recognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in the statement of comprehensive income or profit or loss.

(g) Impairment of assets

At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The assessment will include the consideration of external and internal sources of information including dividends received from subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible assets not yet available for use.

(h) 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 2018.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

(i) Employee benefits

Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy any vesting requirements. These cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable to employee benefits.

(j) Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(k) Cash and cash equivalents

Cash and cash equivalents include deposits available on demand with banks.

(l) Issued capital

Issued and paid up capital is recognised at the fair value of the consideration received by the Company.

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.

(m) 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 Black-Scholes model, using the assumptions detailed in Note 23.

(i) The fair value determined at the grant date of the equity settled share based payment is expensed on a straight-line basis over the vesting period, based on the directors’ estimate of shares that will eventually vest.

(ii) 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 these are measured at the fair value of the equity instruments granted at the date the entity obtains the goods or the counterparty renders the service.

(n) Going concern basis

The Group 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.

As at 30 June 2018, the Group had a surplus of current assets over current liabilities of $367,510 (2017: $71,590) including cash reserves of $675,4612 (2017: $218,722).

For the year ended 30 June 2018, the Group reported net cash outflows from operations and investing activities of $696,030 (2017: $839,201) and $571,373 (2017: $386,770) respectively. These cash outflows were offset by net cash inflows from financing activities of $1,724,142 (2017: $1,008,095) resulting in total cash inflows/ (outflows) for the year of $456,739 (2017: (($217,876)).

Submissions have been made and the matter has been finalized. For the 2011/12 year which was the main focus of dispute, the most significant aspects of the claim were allowed. However, work on two smaller activities was not allowed. Following extensive accounting investigation, the total amount which is potentially refundable to Innovation Australia for the 2011/12 year is less than $25,000. The issue is still in the process of being resolved. As a conservative measure, the Company has recorded an accrual of $30,000 owing to AusIndustry within sundry payables.

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.

The ability of the Group to continue as a going concern for the twelve months from the date of this report is dependent on its ability to control its overhead costs and exploration expenditures and to generate additional funds from activities including:

other future equity or debt fund raisings;
the potential farm-out of participating interests in the Group’s tenements; and
successful development of existing tenements.

Having carefully assessed the likelihood of securing additional funding or entering into farm-out arrangements including the funds raised subsequent to the balance date and the Group’s ability to effectively manage their expenditures and cash flows from operations, the directors believe that the Group will continue to operate as a going concern for the foreseeable future and therefore it is appropriate to prepare the financial statements on a going concern basis.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

(o) Revenue and other income

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. When the inflow of consideration is deferred it is treated as the provision of financing and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue.

Interest revenue is recognised using the effective interest method.

All revenue is stated net of the amount of goods and services tax.

(p) Trade and other receivables

Trade and other receivables include amounts due from customers for goods

sold and services performed in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Refer to Note 2(f) for further discussion on the determination of impairment losses.

(q) Trade and other payables

Trade and other payables represent the liabilities for goods and services received by the entity that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

(r) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(s) Government grants

Government grants are recognised at fair value where there is reasonable assurance that the grant will be received and all grant conditions will be met. Grants relating to expense items are recognised as income on the date of receipt of the grant. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis.

Repayment of Government grants are recognised at fair value where there is a reasonable likelihood that a repayment will be required.

(t) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, an additional (third) statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statement is presented.

(u) 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.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

(v) New Accounting Standards for Application in Future Periods

Accounting Standards issued by the AASB that are not yet mandatorily applicable to the Group, together with an assessment of the potential impact of such pronouncements on the Group when adopted in future periods, are discussed below:

AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting periods beginning on or after 1 July 2018). The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined below) and includes revised requirements for the classification and measurement of financial instruments, revised recognition and derecognition requirements for financial instruments and simplified requirements for hedge accounting.

The key changes that may affect the Group on initial application include certain simplifications to the classification of financial assets, simplifications to the accounting of embedded derivatives, upfront accounting for expected credit loss, and the irrevocable election to recognize gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. AASB 9 also introduces a new model for hedge accounting that will allow greater flexibility in the ability to hedge risk, particularly with respect to hedges of non-financial items, Should the entity elect to change its hedge policies in line with the new hedge accounting requirements of the Standard, the application of such accounting would be largely prospective.

Although the directors anticipate that the adoption of AASB 9 may have an impact on the Group’s financial instruments, including hedging activity, it is impracticable at this stage to provide a reasonable estimate of such impact.

AASB 16: Leases (applicable to annual reporting periods beginning on or after 1 July 2019)

When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 117 : Leases and related Interpretations. AASB 16 introduces a single accounting model that eliminates the requirement for leases to be classified as operating or finance leases.

The main changes introduced by the new Standard are as follows:

recognition of a right-of-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating to low-value assets);
depreciation of right-of-use assets in line with AASB 116:
Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components;
inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability using the index or rate at the commencement date;
application of a practical expedient to permit a lessee to elect not to separate non-lease components and insteadaccount for all components as a lease; and
inclusion of additional disclosure requirements.

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB or recognize the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.

Although the directors anticipate that the adoption of AASB 16 will impact the Group’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

	Consolidated	Consolidated
	2018	2017
	$	$

Note 3 Parent information

Statement of Financial Position

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Assets
Current assets 786,812 251,633
Non-current assets 880,851 8,582,459
Total assets 1,667,663 8,834,092
Liabilities
Current liabilities 327,458 180,244
Non-current liabilities - -
Total liabilities 327,458 180,244
Net assets 1,340,205 8,653,848
Equity
Issued capital 21,841,904 19,934,094
Reserves - 33,070
Retained earnings (20,501,699) (11,313,316)
Total equity 1,340,205 8,653,848
Statement of Profit or Loss and Other Comprehensive Income
Total profit/(loss) (9,221,453) (715,393)
Total comprehensive income/(loss) (9,221,453) (715,393)
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*The decrease in non-current assets is mainly due to the transfer of several tenement licenses from Dart Mining NL (the parent entity) to its wholly owned subsidiary Mount Unicorn Holdings Pty Ltd (MUH) in the current financial year. The capitalized exploration expenses at the point of transfer was approximately $7million. Upon transfer of the costs to MUH, the parent entity recognized a loan owing from MUH and subsequently impaired the loan in full resulting in significant losses for the parent entity in the current year. This loan impairment has no impact on the consolidated loss for the Group.

Note 4 Revenue and other income

Revenue from continuing operations

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Sales revenue
– Research and development grant - -
- -
Other revenue
– Interest received 2,680 2,464
– Other revenue - 13,097
2,680 15,561
2,680 15,561
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Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

	Consolidated	Consolidated
	2018	2017
	$	$
Note 5Profit/(loss) for the year
Profit/(loss) before income tax from operations include the following expenses
Exploration expenses written off	1,653,711	67,316
Depreciation	13,799	17,272

Note 6 Tax expense

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(a) The prima facie tax on profit from ordinary activities before income tax is reconciled to the
income tax expense
Profit/(loss) from continuing operations (2,453,665) (715,393)
Income tax expense (benefit) calculated at 27.5% (2017: 27.5%) (674,758) (196,733)
Effect of non-deductible expenses 487,000 49,343
Effect of deductible temporary differences (312,825) (147,196)
Effect of unused tax losses and tax offsets not recognised as deferred tax assets 500,583 294,586
Utilisation of tax losses brought forward - -
- -
Income tax expense
(b) Tax losses not brought to account
Tax losses brought forward 4,282,975 4,312,491
Current year tax losses 500,583 294,586
-
Effect of change in tax rate from 30% to 27.5% (362,581)
Utilisation of tax losses brought forward - -
Recognition of tax losses – correction prior years 9,466 38,479
Tax losses carried forward 4,793,024 4,282,975
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Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

	Consolidated	Consolidated
	2018	2017
	$	$

Note 7 Key management personnel compensation

Total remunerations paid to KMP of the Company and the Group during the year are as follows :

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Short-term employee benefits 395,428 373,329
Post-employment benefits 34,228 35,466
Share-based payments - -
Long-term employee benefits - -
Termination payments - -
Total KMP compensation 429,656 408,795
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KMP options and rights holdings

There were no options issued to KMP of the group during the financial year as an incentive or as compensation (2017: Nil)

The number of options and incentive rights over ordinary shares held during the financial year by each KMP of the Group is as follows:

	Balance at	Incentive rights	Unlisted Incentive	Net other	Balance at
	beginning of year	granted as	rights exercised,	changes1	end of year
		remuneration during	lapsed or excluded
		the year	during the year

2018
D G Turnbull 250,000 - (250,000) - -
	250,000	-	(250,000)	-	-
2017
D G Turnbull* 2,250,000 - (2,000,000) - 250,000
	2,250,000	-	(2,000,000)	-	250,000

*D G Turnbull resigned from the Company in April 2018 but continues to hold shares in the Company.

Note 8 Auditor’s remuneration

	Consolidated	Consolidated
	2018	2017
	$	$
Amounts received or due and receivable byMorrows Audit PtyLtd(previousyear MSI RaggWeir)for:
Audit or review of the financial statements of the Group	27,450	27,850

Notes to the consolidated financial statements For the financial year ended 30 June 2018

	Consolidated	Consolidated
	2018	2017
	$	$

Note 9 Earnings per share

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(a) Reconciliation of earnings to profit and loss
Net profit/(loss) for the year (2,453,665) (715,393)
Earnings/(loss) used to calculate basic EPS (2,453,665) (715,393)
(b) Weighted average number of ordinary shares outstanding during the year used in the calculation of
basic EPS 564,484,753 344,855,03
Basic earnings per share (0.44) (0.21)
Diluted earnings per share (0.35) (0.21)
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Diluted earnings per share is calculated after classifying all options on issue remaining unconverted at 30 June 2018 as potential ordinary shares. At 30 June 2018, the Company had on issue 295,087,533 (2017: 1,250,000) options and incentive rights over unissued capital and had incurred a net loss. Unlisted options are not considered dilutive and have not been included in the calculations of diluted earnings per share.

Note 10 Cash and cash equivalent

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Cash at bank and on hand 675,461 218,722
675,461 218,722
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Note 11 Trade and other receivables

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Accrued interest – other persons/corporations 251 295
GST receivable 22,352 8,621
22,603 8,916
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No receivable amounts were past due or impaired at 30 June 2018 (2017: Nil)

Credit risk

The Group has no significant concentration of credit risk with respect to any single counter party or group of counter-parties other than those receivables specifically provided for and mentioned within Note 11. The class of assets described as Trade and Other Receivables is considered to be the main source of credit risk related to the Group.

Note 12 Controlled entities

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Country of Percentage owned (%)
incorporation
2018 2017
Dart Resources Pty Ltd Australia 100% 100%
Mt Unicorn Holdings Pty Ltd Australia 100% 100%
Mt View Holdings Pty Ltd Australia 100% 100%
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For each of the controlled entities that the place of business is the same as the place of incorporation. The activities of these entities are not material to the Group.

There are no significant restrictions on the Group’s or its controlled entities ability to access or use the assets and settle the liabilities of the Group nor are there restrictions on ownership changes to these entities.

Notes to the consolidated financial statements For the financial year ended 30 June 2018

Note 13 Property, plant and equipment

	Consolidated	Consolidated
	2018	2017
	$	$
Plant and equipment
At cost	106,213	105,249
Accumulated depreciation	(100,735)	(98,146)
	5,478	7,103
Computer equipment & software
At cost	72,488 67,431
Accumulated depreciation	(62,069)	(50,775)
	10,419	16,656
Motor vehicles
At cost	172,139 126,309
Accumulated depreciation	(113,926)	(87,513)
	58,213	38,796
Total property, plant and equipment	74,110	62,555

Plant & equipment Computer equipment & software Motor vehicles Total	Plant & equipment Computer equipment & software Motor vehicles Total	Plant & equipment Computer equipment & software Motor vehicles Total	Plant & equipment Computer equipment & software Motor vehicles Total	Plant & equipment Computer equipment & software Motor vehicles Total
Consolidated $ $ $				$
Balance at 1 July2016 5,070 22,080 60,867 88,017
Additions 4,072 6,639 -				10,711
Depreciation expense (868) (9,047) (7,357)				(17,272)
Depreciation expense capitalised as deferred exploration expenditure (1,171) (3,016) (14,714)				(18,901)
Balance at 30 June 2017 7,103 16,656 38,796 62,555
Balance at 1 July2017 7,103 16,656 38,796 62,555
Additions/(Disposals) 963 5,056 45,832 51,851
Depreciation expense (1,620) (8,470) (3,709)				(13,799)
Depreciation expense capitalised as deferred exploration expenditure (968) (2,823) (22,706)				(26,497)
Balance at 30 June 2018	5,478	10,419	58,213	74,110
The following useful lives are used in the calculation of depreciation: Plant and equipment 3 – 6years Computer equipment & software 3 – 4years Motor vehicles 4 – 5 years
Plant and equipment	3 – 6years
Computer equipment & software	3 – 4years
Motor vehicles	4 – 5 years

Notes to the consolidated financial statements For the financial year ended 30 June 2018

Note 14 Deferred exploration and evaluation

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Consolidated
2018 2017
$ $
Balance at beginning of financial year 8,266,737 7,930,972
Current year expenditure capitalised – mining exploration 958,720 282,736
Current year expenditure capitalised – joint ventures - 120,337
Exploration costs written-off (1,653,710) (67,316)
Balance at end of financial year 7,571,747 8,266,729
Comprising:
- Deferred mining exploration expenditure 7,571,747 8,092,486
- Deferred joint ventures expenditure - 174,243
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Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of Pre-feasibility Studies, exploration and evaluation or sale or farm-out of the exploration interests. A percentage of the CEO’s salary and associated costs are capitalised in line with the Company’s policy for capitalising costs directly relating to pre-feasibility and exploration. Namely, the Company has four cost centres, Corporate, Pre-feasibility, Research and Development and Exploration. Where identifiable, costs associated with the Pre-feasibility and Exploration cost centres are capitalised. These costs are annually reviewed for impairment and a charge is made direct to the Income Statement of the Company when an impairment is identified. The Company still intends to continue activity on the remaining tenements under its control. During the year ended 30 June 2018 the Company surrendered tenement license MIN5559 and did not renew expired tenement license EL5058. The capitalised exploration costs for these tenements have been written off in the current financial year.

Note 15 Other assets

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CURRENT
Prepayments 10,205 24,000
10,205 24,000
NON-CURRENT
Bond security for exploration tenement licences 69,042 50,772
Bond security for company credit cards 10,000 10,000
Receivable from joint ventures - 174,243
Investment in joint ventures - 3,330
Rental property bonds 1,824 869
80,866 239,214
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Note 16 Trade and other payables

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CURRENT
Trade payables 90,142 15,184
Sundry payables 182,668 80,061
272,810 95,245
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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.

Notes to the consolidated financial statements

For the financial year ended 30 June 2018

Note 17 Provisions

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CURRENT
Short term employee benefits 67,949 84,803
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Note 18 Issued capital

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Ordinary shares
2018 2017
Consolidated No $ No $
Balance at the beginning of the financial year 411,485,049 19,934,094 300,023,714 18,925,999
Share issue 111,461,335 1,059,664
Shares issued under 1 for 2 Entitlement Offer 86,714,432 433,572
Shortfall placement shares issued under 1 for 2 Entitlement offer 119,028,200 595,142
Shares issued as consideration for tenements (held in voluntary escrow) 18,172,965 181,730
Shares issued as consideration for consultancy fees 7,020,644 61,938
Issue of share on exercise of options 52,500 525
Shares issued under 1 for 3 Entitlement Offer 89,397,401 804,577
Less transaction costs arising from issue of shares - (169,674) - (51,569)
Balance at end of financial year 731,871,191 21,841,904 411,485,049 19,934,094
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Terms and conditions of contributed equity

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.

The issued capital of the Company quoted on the ASX comprises 731,871,191 ordinary shares (2017: 411,485,049).

Listed options

Options exercisable at $0.01 and expire 28 February 2019.

	2018 2017	2018 2017

Consolidated	No No
Balance at the beginningof the financialyear	- -
Options issued under 1 for 2 Entitlement Offer with free attaching options	86,714,432 -
Options issued under Shortfall Placement of 1 for 2 Entitlement offer with free attaching options	119,028,200 -
Options exercised	(52,500) -
Options issued under 1 for 3 Entitlement Offer with free attachingoptions	89,397,401 -
Balance at end of financial year	295,087,533	-

At the end of the financial year, there were no unlisted options on issue (2017: 1,250,000).

The following unlisted options expired during the 2018 financial year.

Securities	Expiry date	Number	Exercise price	Expired on
			(cents)
Unlisted	31 December 2017	850,000	6	31 December 2017
Unlisted	31 December 2017	400,000	3	31 December 2017

Notes to the consolidated financial statements For the financial year ended 30 June 2018

The following options expired during the 2017 financial year.

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Securities Expiry date Number Exercise price Expired on
(cents)
Unlisted 20 March 2017 100,000 18 20 March 2017
Unlisted 20 March 2017 100,000 22 20 March 2017
Unlisted 31 December 2016 3,000,000 15 31 December 2016
Unlisted 30 August 2016 1,000,000 11.1 30 August 2016
Unlisted 31 December 2016 2,000,000 11 31 December 2016
Unlisted 30 June 2017 750,000 6 30 June 2017
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Note 19 Expenditure commitments

Exploration expenditure

Under the terms of the exploration tenement licences, the Group has a commitment to meet a minimum expenditure requirement in order to keep its rights current. The minimum expenditure requirement is not recognised as a liability in the Statement of Financial Position of the Group as the Group may relinquish its rights to a particular tenement thereby removing the requirement to meet the minimum expenditure requirement.

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Consolidated
2018 2017
$ $
Not longer than 1 year 395,844 367,033
Between 1 and 5 years 923,040 393,116
Longer than 5 years - -
1,318,884 760,149
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Operating leases

The Group has commercial leases on property. These leases have renewal options on the property leases. There are no restrictions upon the lessee by entering into these leases.

Future minimum lease payments payable under non-cancellable operating leases as at the balance date are as follows:

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Not longer than 1 year 15,924 10,644
Between 1 and 5 years - -
15,924 10,644
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Licence agreement

The Group has a licence agreement for exclusive use of an office areas. There are no restrictions upon the lessee by entering into this agreement.

Future minimum payments payable under a non-cancellable agreement as at the balance date are as follows:

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Not longer than 1 year - 24,423
Between 1 and 5 years - -
- 24,423
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Notes to the consolidated financial statements For the financial year ended 30 June 2018

Note 20 Contingent liabilities and contingent assets

The company establishes an accrued liability for claims when it determines that a loss is probable and the amount of the loss can be reasonably estimated. Accruals will be adjusted from time to time, as appropriate, in the light of additional information.

As noted in the June 2017 Annual Financial Report, Dart Mining NL received a notification from Innovation Australia [formerly Auslndustry) stating that the previous R&D Claims did not contain core or supporting R&D activities in accordance with the Industry Research and Development Act 1986. Submissions have been made and the matter has been finalized. For the 2011/12 year which was the main focus of dispute, the most significant aspects of the claim were allowed. However, work on two smaller activities was not allowed. Following extensive accounting investigation, the total amount which is potentially refundable to Innovation Australia for the 2011/12 year is less than $25,000. The issue is still in the process of being resolved. As a conservative measure, the Company has accrued an amount of $30,000 as a refund owing to AusIndustry within sundry payables in Note 16.

Under tenement licence conditions in Victoria the Group is required to rehabilitate each licence area to its original state subsequent to any exploration work. Rehabilitation costs are estimated not to exceed $60,000.

The Company and a wholly-owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and its subsidiary guarantee the debts of each other.

No contingent assets existed at the reporting date.

Note 21 Operating segments

The Group’s activities consist of base metal and gold exploration currently in one geographic region of north-east Victoria. There are no other significant classes of business, either singularly or in aggregate. Internal monthly management reports are provided to the Group’s Directors that consolidate operations in one segment. Therefore, the Group’s activities are classed as one business segment and as a result operating and financial information are not separately disclosed in this note.

Note 22 Cash-flow information

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Consolidated
2018 2017
$ $
a) Reconciliation of cash flow from operations with profit after income tax
Profit/(loss) after income tax (2,453,665) (715,393)
Non- cash flows in profit/(loss)
Depreciation 13,799 17,272
Exploration cost written off 1,653,711 -
Share based payments 37,000 -
Loss on disposal of assets - 1,136
Changes in assets and liabilities
(Increase)/Decrease in receivables (13,960) 26,202
(Increase)/Decrease in other assets 13,795 (24,000)
Increase/(Decrease) in trade payables and accruals 62,331 (151,995)
Increase/(Decrease) in provisions (9,041) 7,577
Cash flow from operations (696,030) (839,201)
b) Reconciliation of cash
Cash balance comprises:
Cash on hand and at call 675,461 218,722
Term deposits - -
675,461 218,722
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Notes to the consolidated financial statements For the financial year ended 30 June 2018

c) Financing facility

The Group has no available finance facilities at balance date.

d) Non-cash financing and investing activities There were no non-cash financing or investing activities during the financial year.

Note 23 Share-based payments

Executive options

There were no share-based options held at the end of the current reporting year. Options are priced using a Black-Scholes model. Where relevant, the expected life used in the model has been adjusted based on management’s best estimate for the effects of non-transferability, exercise restrictions. Expected volatility is based on the historical share price volatility of the Company over the reporting period.

Movements in share-based payments options

	2018 2017	2018 2017	2018 2017	2018 2017
	Number Weighted average exercise price (cents) Number Weighted average exercise price (cents)
Balance at beginningofyear	1,250,000 8,200,000
Cancelled	- (750,000)
Expired	(1,250,000) (6,200,000)
Balance at end of year	- 1,250,000
Exercisable at end of year	-	-	1,250,000	5

Note 24 Events after the reporting period

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 Group, the financial performance of those operations or the financial position of the Group in the subsequent financial year.

Note 25 Related party transactions

Key Management Personnel

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director (executive or otherwise) of the entity are considered Key Management Personnel (refer Note 7).

Other related parties

Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel have joint control.

Transactions with related parties

Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

There were no related party transactions.

Notes to the consolidated financial statements For the financial year ended 30 June 2018

Note 26 Financial risk management

The Group’s financial instruments consist mainly of deposits with banks, receivables and trade and other payables.

The totals of each category of financial instruments, measured in accordance with AASB139 as detailed in the accounting policies to these financial statements are as follows:

	Consolidated	Consolidated
	2018	2017
	$	$
Financial assets
Cash and cash equivalents	675,461 218,722
Other receivables	22,603	8,916
Other non-current receivables	-	-
Total financial assets	698,064 227,638

Financial liabilities
Financial liabilities at amortised costs - trade and other payables	272,810 95,245
Total financial liabilities	272,810	95,245

Specific financial risk exposures and Management

The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of interest rate risk and foreign currency risk. There have been no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies and processes for managing or measuring the risks from the previous period.

Credit risk

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 continuously 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.

Liquidity risk

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.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

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

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Within 1 year 1 to 5 years Over 5 years Total
2018 2017 2018 2017 2018 2017 2018 2017
Consolidated
Financial liabilities due for
payment
Trade and other payable 272,810 95,245 - - - - 272,810 95,245
Total contractual outflows 272,810 95,245 - - - - 272,810 95,245
Financial assets cash flow realisable
Cash and cash equivalents 675,461 218,722 - - - - 675,461 218,722
Loans and other receivables - - 80,866 272,872 - - 80,866 272,872
Other non-interest bearing receivables 22,603 8,916 - - - - 22,603 8,916
- -
Total anticipated inflows 698,064 227,638 80,866 272,872 778,930 500,510
- -
Net (outflow)/inflow on financial 425,254 132,393 80,866 272,872 506,120 405,265
instruments
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Market risk

Interest rate risk

The Group’s exposure to market risk primarily consist of financial risks associated with changes in interest rates as detailed below. 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.

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

The Group currently holds no amounts of borrowed funds.

Interest rate sensitivity analysis

A sensitivity analysis has 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.

	Consolidated	Consolidated
	Profit	Equity
	$	$
Year ended 30 June 2018
+/- 0.5% in interest rates	3,377	3,377
Year ended 30 June 2017
+/- 0.5% in interest rates	1,094	1,094

There have been no changes in any methods or assumptions used to prepare the above analysis from the previous year.

Fair value

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.

Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

Fair value estimation

The fair value of financial assets and financial liabilities are presented in the following table and can be compared to their carrying amounts as presented in the Statement of Financial Position. Fair value is the amount at which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates being applied by the market since their initial recognition by the Group. Most of these instruments, which are carried at amortised cost (i.e. term receivables, held-to-maturity assets), are to be held until maturity and therefore the fair value figures calculated bear little relevance to the Group.

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2018 2017
Carrying amount Fair value Carrying amount Fair value
Financial assets
Cash and cash equivalents 675,461 675,461 218,722 218,722
Loans and other receivables 80,866 80,866 239,214 239,214
Other non-interest bearing receivables 22,603 22,603 8,916 8,916
Total financial assets 778,930 778,930 466,852 466,852
Financial liabilities
Trade and other payables 272,810 272,810 95,245 95,245
Total financial liabilities 272,810 272,810 95,245 95,245
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The fair values disclosed in the above table have been determined based on the following methodologies:

Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying amount is equivalent to fair value. Trade and other payables excludes amounts provided for annual leave, which is outside the scope of AASB 139.

Financial Instruments Measured at Fair Value

The financial instruments recognised at fair value in the Statement of Financial position have been analysed and classified using a fair value hierarchy reflecting the significance of the inputs used in making the measurements. The fair value hierarchy consists of the following levels:

quoted prices in active markets for identical assets or liabilities (Level 1)
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

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Level 1 Level 2 Level 3 Total
Consolidated $ $ $ $
2018
Financial assets
Cash and cash equivalents
- -
Cash on hand and fixed interest deposits 675,461 675,461
2017
Financial assets
Cash and cash equivalents
Cash on hand and fixed interest deposits - 218,722 - 218,722
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Notes to the Consolidated Financial Statements For the financial year ended 30 June 2018

Note 27 Reserves

Equity - settled benefits reserve

The equity-settled benefits reserve is used to recognise the fair value options issued to Directors, employees and third parties.

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Consolidated
2018 2017
$ $
Balance at beginning of financial year 11,010 193,060
Share-based payments reclassified (11,010) (182,050)
Balance at end of financial year - 11,010
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Note 28 Company details

Registered office of the Company:

Level 6, 412 Collins Street, Melbourne, Victoria.

Principal place of business:

4 Bryant Street, Corryong, Victoria.

Share Registry:

Automic Pty Ltd Level 29, 201 Elizabeth Street Sydney NSW 2000 Phone: +61 1300 288 664

Directors’ Declaration

ln accordance with a resolution of the directors of Dart Mining NL, the Directors of the Company declare that:

1 the financial statements and notes, as set out on pages 13 to 36, are in accordance with the Corporations Act 2001 and:
(a) comply with Accounting Standards which, as stated in accounting policy note 2 to the financial statements, constitutes compliance with International Financial Reporting Standards (lFRS); and
(b) give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended on that date of the consolidated group:
2 in the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable;
3 the directors have been given the declarations required by section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer

The Company and a wholly-owned subsidiary, Dart Resources Pty Ltd, have entered into a deed of cross guarantee under which the Company and its subsidiary guarantee the debts of each other.

At the date of this declaration, there are reasonable grounds to believe that the companies which are party to this deed of cross guarantee will be able to meet any obligations or liabilities to which they are, or may become subject to, by virtue of the deed.

James Chirnside Chairman

Luke Robinson Director

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___ ___

Dennis Clarke Director

Russell Simpson Director

Melbourne 27 September 2018

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S REPORT TO THE MEMBERS OF DART MINING NL

Report on the Financial Report

Opinion

We have audited the financial report of DART Mining NL, (the Company and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

(i) June 2018 and of its financial performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further f the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of t are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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S REPORT

TO THE MEMBERS OF DART MINING NL

Key Audit Matters (continued)

Key audit matter
How our audit addressed the key audit matter
1) Carrying value of Deferred Exploration and
Evaluation Costs
Refer to Note 14 ($7,571,747)
Deferred Exploration and Evaluation Costs of
$7,571,747 relate to costs incurred in relation to
the various tenements less impairment.
For the financial year ended 30 June 2018, the
Directors have assessed and determined a total
impairment amount of $1,653,710 on the
carrying value of Deferred Exploration and
Evaluation Costs. The impairment related mainly
to the expired tenement licence EL 5058
(Cudgewa) and surrendered tenement licence
MIN 5559 (Mountain View).
The
:
$7,571,747 carrying value of Deferred Exploration and
Evaluations Costs and reviewing assertions made by the
Directors.
confirming the expiration of tenement licence EL 5058
(Cudgewa) by reviewing the Earth Resources
GeoVic
website.
confirming that tenement licence MIN 5559 (Mountain
View) has been surrendered by obtaining a copy of the
notice of surrender.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Grou

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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S REPORT

TO THE MEMBERS OF DART MINING NL

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Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar1.pdf

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Report on the Remuneration Report Opinion on the Remuneration Report

We have audited the Remuneration Report included in included in

June 2018.

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In our opinion, the Remuneration Report of DART Mining NL, for the year ended 30 June 2018, complies with section 300A of the Corporations Act 2001.

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Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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MORROWS AUDIT PTY LTD

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IAN L. JENKINS

Director Melbourne: 27 September 2018

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AuditorASX Additional Information ’ s Report

Additional information required by the Australian Securities Exchange Ltd Listing Rules and not disclosed elsewhere in this report is as follows. The information is current as at 26 September 2018.

Twenty largest shareholders

Rank	Name of holder	No. of ordinary	Issued
		shares held	Capital
			%
1	KALAN SEVEN PTY LTD	83,487,735	9.75

2	RUSSELL SIMPSON	51,275,683	5.99
3	CITICORP NOMINEESPTY LIMITED	40,520,136	4.73

4	DYNASTY PEAK PTY LIMITED	20,000,000	2.33
5	MR PHILIP ALAN KENNETH NAYLOR & MRS ANDREA NAYLOR	19,091,308	2.23

7	MR PAUL DOMINIC FERGUSON	18,750,000	2.19
6	MR BRUCE WILLIAM MCLENNAN	18,172,965	2.12

8	BLUESTAR MANAGEMENT PTY LTD	15,000,000	1.75
9	MR DUANE LAWRENCE HICKS	13,315,246	1.55

10	PARRY INTERNATIONAL MGMT LTD	11,111,111	1.30
11	JAYCON INVESTMENTSPTY LTD	10,000,000	1.17

11	MR OWEN R WELLINGTON & MRS ROXANNE WELLINGTON	10,000,000	1.17
12	SPECIALISED ALLOYS SERVICES PTY LTD	9,999,999	1.17

13	MR DAMIAN ROBERT WARD	9,725,520	1.14
14	MR DANNY EUHUAT KHOO	8,000,000	0.93

14	RADROB PTY LTD	8,000,000	0.93
15	MAD FISH MANAGEMENT PTY LTD	7,777,778	0.91

16	BOND STREET CUSTODIANS LIMITED	7,030,124	0.82
17	HSBC CUSTODY NOMINEES (AUSTRALIA)LIMITED	6,209,584	0.72

18	MR VINCENZO BRIZZI & MRS RITA LUCIA BRIZZI	6,000,000	0.70
18	MS XIAOYI PAN	6,000,000	0.70

19	BILLILLA HOLDINGS PTY LTD	5,940,595	0.69
20	ESSELMONT PTY LTD	5,555,555	0.65

20	MS CATHERINE NORMAN	5,555,555	0.65
Total		396,518,894	46.29

Shares on issue

Ordinary fully paid shares 856,614,232

Substantial Shareholders

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

Name	No. of Ordinary	Percentage of
	Shares	Issued Capital
MR P.A.K. NAYLOR	112,745,711	13.16
MR RUSSELL SIMPSON & MRS ELIZABETH SIMPSON & MS MEREDITH SIMPSON	51,275,683	5.99

AuditorASX Additional Information ’ s Report

Distribution of member holdings

		Ordinary shares
Size of holding	No of holders	No of shares
1 – 1,000	77	10,489
1,001 – 5,000	69	256,424
5,001 – 10,000	188	1,618,682
10,001 – 100,000	735	33,773,900
100,001 and over	612	820,954,737
Total Holders	1,681	856,614,232

The number of security investors holding less than a marketable parcel of securities is 970 with a combined total of 26,063,124 securities.

Voting Rights

All shares carry one vote per share without restriction.

Tenement schedule

Tenement	Licensed holder	Name & region of subject of licence
~~b~~ RL 6615	Dart Mining NL	Buckland, North-east Victoria including Fairleys prospect (under application)
RL 6616	Dart Mining NL	Dart, North-east Victoria including Mountain View, Elliot, Morgan & Unicorn prospects (under application)
EL 5468	Dart Mining NL	Upper Murray, North-east Victoria
EL 5194	Dart Mining NL	Mt. Alfred, North-east Victoria
MIN6619	Dart Mining NL	Mountain View, North-east Victoria (under application)
EL 6277	Dart Mining NL	Empress, North-east Victoria
EL 6300	Dart Mining NL	Eskdale, North-east Victoria
EL6486	Dart MiningNL	Mt Creek,North-east Victoria
EL 5315	Mount Unicorn Holdings Pty Ltd	Mitta Mitta, North-east Victoria

MIN 5538	Mount Unicorn Holdings PtyLtd	Rushworth, Central Victoria
MIN 5306	Mount Unicorn Holdings Pty Ltd	Rushworth, Central Victoria
MIN 5246	Mount Unicorn Holdings PtyLtd	Rushworth, Central Victoria

AI assistant

DART MINING NL — Annual Report 2018

64792_rns_2018-09-26_332c293d-dd3b-4f64-9860-7f74822fbc25.pdf

Operating and Financial Review

Corporate

Commodities

Lithium (Li ₂CO ₃)

Gold (Au)

Copper (Cu)

Molybdenum (Mo)

Exploration Review

Lithium

Financial Markets

Orogenic Gold

Rushworth Gold Project

Financial overview

Operating results for the year

Review of financial position

Mountain View Gold Project

Fairlys Gold Project

Porphyries

Information on Directors

Names, qualifications, experience and special responsibilities

James Chirnside Chairman / Managing Director Appointed 18 June 2015

Other current directorships of listed companies

Former directorships of listed companies in the last three years

None

Luke Robinson Non-executive Director (independent) Appointed 18 June 2015

Russell Simpson Non-executive Director Appointed 18 June 2015

Former directorships of listed companies in last three years None.

Denis Clarke Non-executive Director (independent) Appointed 14 March 2018

Meredith Lyons Alternate Non-executive Director Appointed 23 June 2015

Julie Edwards Company Secretary

Appointed 1 July 2015

Significant events after balance date

Shareholdings of directors and other key management personnel

Future developments, prospects and business

strategies

Corporate information

Corporate structure

Environmental regulation

Principal activities

Employees

Directors Meetings

Dividend

Summary of shares and options on issue

Significant changes in state of affairs

Indemnification and insurance of directors and officers

Proceedings on behalf of the Company

Non-audit services

Auditor independence declaration

Remuneration Report - Audited

Details of Directors and other Key

Management Personnel

Directors

Remuneration structure

Non-executive director remuneration

Objective

Senior executive remuneration

Objective

Remuneration philosophy

Structure

Service contracts

Director’s Report

Managing Director

Dean G Turnbull (resigned 30 April 2018)

Other Key Management Personnel

Remuneration Summary

Director’s Report

Bonuses

Employee options

Directors’ Declaration

Corporate Governance Statement

CE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF DART MINING NL

MORROWS AUDIT PTY LTD

IAN L. JENKINS

Consolidated Statement of Profit or Loss and Other Comprehensive Income

Consolidated Statement of Cash Flows

Note 1 Corporate information

Note 2 Summary of significant accounting policies

DART MINING NL Annual Report 2018