DART MINING NL - Interim / Quarterly Report 2012

31 January 2012

ASX Code: DTM

Investment Data

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Shares on issue 157.5m Unlisted options 8.35m

Shareholders

REPORT FOR THE QUARTER ENDED 31ST DECEMBER 2011

Top 20 Hold 37.8 %

Key Projects / Metals

Unicorn Porphyry Mo-Cu-Ag
Morgan Porphyry Mo-Ag-Au
Mountain View Lode – Au

Mo – Molybdenum Cu – Copper Au – Gold Ag – Silver

Board & Management

HIGHLIGHTS

Maiden Unicorn JORC Resource – Indicated + Inferred 105M Tonnes at 0.07% Molybdenum Equivalent;
Upcoming RC drilling program for Unicorn;
Metallurgical report improves Unicorn development potential;
Regional exploration confirms further potential within the Unicorn-Morgan corridor;
$1.54m received from 2011 option conversion

Chairman

Mr Chris Bain

Managing Director

Mr Lindsay Ward

Executive Directors

Mr Dean Turnbull Manager – Exploration

Non-Executive Directors

Mr Stephen Poke Mr Richard Udovenya

Contact Details

Dart Mining NL Level 2 395 Collins Street Melbourne VIC 3000 Australia

Mr Lindsay Ward Phone: +61 (0)3 9621 1299 Email: [email protected] Visit our webpage: www.dartmining.com.au

This quarter has seen the conclusion of a very successful year for Dart Mining, culminating with the Company’s 5[th] Annual General Meeting held in October 2011. The AGM was held in Melbourne on the 19[th] October and was well attended by shareholders and stock brokers.

Mr Lindsay Ward, Dart Mining’s Managing Director, addressed the group and outlined the key highlights for the previous 12 months, along with factors that should lead to a positive outcome going forward for the Company, including;

Strong community and Government support
Unrestricted Crown land - available for mining
Favourable project location and infrastructure (power, water, roads)
Existing support town within 30kms of Unicorn – available workforce
Established logistics chain to market
Open cut Indicated and Inferred JORC resource – open at depth
High recoveries plus saleable grades of concentrates at 75 micron grind
Cash at bank $1.3 million plus $1.5 million of underwritten options that expire December 31, 2011

These are significant achievements for 2011 and it is both pleasing and exciting for Dart Mining to experience this level of progress and to better realise the Company’s future potential. A copy of the presentation can be found on the Dart Mining website, www.dartmining.com.au.

During this quarter, progress has continued on both the Unicorn project and the regional exploration program. For Unicorn, the Company now has a JORC Indicated + Inferred Resource and promising preliminary metallurgical results. In relation to our regional exploration, reviews of existing geochemical and geophysical analysis has highlighted further potential within the Unicorn-Morgan Corridor and drilling is planned to investigate these prospective areas.

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MAIDEN UNICORN JORC RESOURCE – INDICATED + INFERRED ANNOUNCED

After a number of years of explor a tion it is gratifying to formally declare Indicat e d and Inferred Resources for Dart Mining’s Unicorn project. The initial Indicated Resource from surface to some 250m depth for the M1 & M2 Grade Zones is 29 milli o n tonnes with a Molybdenum equivalent (MoEq) grade of 0.09% (refer Table 1). Tonnages are expecte d to increase considerably with further infill d r illing planned for early in 2012. This work was carried out b y Dart Mining in conjunction with AMC Cons u ltants Pty Ltd (AMC) and reported according to the JORC Code.

An Indicated Mineral Resource of 0.09% MoEq and an Inferred Mineral Resour c e open at depth is a great outcome for this maiden resourc e . When you add the low strip ratio; renewabl e power and water in very close proximity; a supportive loc a l community; available workforce and an alr e ady established logistics chain to market, Dart Mining is well placed to take Unicorn forward to a develop m ent project.

Figure 1. Unicorn Mineral Resource ( L eft) showing the 5,978,100mN cross section with the M 1, M2 and M3 Grade Zones highlighted within the host quartz feldsp a r porphyry. Also defines the Indicated Mineral Resou r ce area (M1 & M2) from surface to 600m RL (approximately 250 m below surface) and the Inferred Mineral Resource b e tween 600 mRL and 400 mRL (approximately from 250m to 450 m below surface). The conceptual Henderson style Tar g et associated with multiple intrusive centres is also illustrated. The Henderson Mine Geological cross section (Right) at t h e same scale is shown for comparison (Modified composite sectio n compiled from: Wallace 1978-1995, Seedorf & Einau d i 2004 and Banks 2009.

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The Total Resource at 105 million tonnes with a Molybdenum equivalent grade of 0.07% is better than many other Australian Moly explorers and remains open at depth below 450 metres. This means the potential for substantially increased resource tonnes particularly when you compare Unicorn to similar deposits such as Henderson which shows increasing resource grades with depth (refer Figure 1). Hole 8 was the first hole drilled at depth through the middle of the Unicorn deposit and intersected 40m @ 0.09% MoEq including a zone of 18m @ 0.12% MoEq – this hole ended in mineralisation.

A summary of the Resource Estimation Procedure can be found on the Dart Mining website www.dartmining.com.au, along with the full AMC Pty Ltd Resource Estimation report.

Further grade and tonnage potential

The initial Resource estimated for the Unicorn deposit is interpreted to represent only the upper limits of a very large intrusive porphyry system which has already shown multiple stacked high grade molybdenum zones (M1, M2 and M3) which are typical of these large mineralised porphyry systems. Unicorn is comparable to a style of deposit that typically shows economic mineralisation extending well below 1000m depth. A series of deeper diamond drill holes are being planned to test the system below 450m in 2012.

Limited exploration drilling has extended outside the porphyry contacts to date, however surface geochemistry and drilling has already highlighted significant Mo, Cu and Ag grades in the mineralised wall rocks and southern breccia zone. This mineralised zone has not been included in the Indicated or Inferred Resource as yet.

Further drilling will start to define the extent of the mineralisation surrounding the main porphyry with the intent to include this material in future updates to the Resource.

Dart Mining is confident there is far more to be discovered at Unicorn in the near future.

Table 1: Unicorn Mineral Resource Summary (October 2011)

JORC CLASSIFICATION	TONNAGE (Mt)	Mo Cutoff (ppm)	Mo (ppm)	Cu (ppm)	Ag (g/t)	Mo Eq1 (ppm)
INDICATED	29	200	500	900	4.2	900
INFERRED	76	200	350	450	2.7	570
TOTAL	105	200	400	570	3.1	670

Variables and factors that influence Table 1

MoEq[1] (Molybdenum Equivalent) = Mo + Cu/3.65 + Ag x36.4 (assumes equal metallurgical recovery for each metal) – see Note 1 below.
Estimated by ordinary kriging on 50 x 50 x 50m blocks at 200ppm Mo Cutoff grade (Cutoff considered to represent a level at which the combined value of recoverable metals clearly shows reasonable prospects for eventual economic extraction.Top Cutting has been applied to high grade drill intersections at different values for each metal, such that grades utilised in the Resource do not rise above the following upper limits:
Molybdenum Cutoff: 3000ppm (0.03% Mo). Maximum value in drill hole samples 6260ppm Mo
Copper Cutoff: 5300ppm (0.05% Cu). Maximum value in drill hole samples 10,300ppm Cu
Silver Cutoff: 40ppm (40 g/t Ag). Maximum value in drill samples 170g/t Ag
Only the M1 and M2 mineralised zones are reported within the Indicated Resource.
Specific Gravity assigned by lithology. Silica Cap - 2.72 g/cm[3 ] and Quartz Feldspar Porphyry / Porphyry Breccia 2.67 g/cm[3] and Polymict Breccia 2.73 g/cm[3 ] based on 14 samples representative of each style of lithology / mineralisation estimated in the Resource.

Note 1: Molybdenum Equivalent Assumptions: Based on relative value (with reference to the average price) of each metal in the 3 months 1st July to 30th September 2011 listed on the LME for Molybdenum and Copper and average price for the same period for Silver as follows:

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Mo US$33,127.27 per tonne
Cu US$9061.32 per tonne
Ag US$38.90 per ounce

The Molybdenum Equivalent grade should not be interpreted as actual molybdenum grade as the conversion ratios vary with the volatile prices of Mo, Cu and Ag.

However, it is the Company's opinion that elements considered here have a reasonable prospect to be recovered.

Unicorn Mineral Resources by Grade Zone – October 2011

JORC CLASSIFICATION	Mo Cut off Grade (ppm)	GRADE ZONE2	TONNES (Mt)	Mo (ppm)	Cu (ppm)	Ag (g/t)	Mo Eq (ppm)
INDICATED	200	M1	27.5	500	930	4.3	900
INDICATED	200	M2	1.3	620	220	1.2	720
TOTAL INDICATED RESOURCE			28.8	500	900	4.2	900
INFERRED	200	M1	8.9	500	540	2.8	750
INFERRED	200	M3	11.1	530	300	2.1	690
INFERRED	200	INT	56.0	300	470	2.8	520
TOTAL INFERRED RESOURCE			76.0	350	450	2.7	570

Note 2 - GRADE ZONES. The Unicorn deposit features mineralisation of Mo, Cu and Ag that show different distributions. Individual Grade Zones define areas that contain significant molybdenum (the primary economic metal within the deposit) as well as copper and silver. These zones cross lithology types and form draped sub-horizontal layers or shells within the host porphyry. The total tonnage of the Grade Zone is estimated by considering the volume within each lithology (applying the respective specific gravity) and within either resource category to sum the total tonnage. Grade Zone M1 occurs both within the Indicated and Inferred Mineral Resource while M2 is only defined within the Indicated Mineral Resource. Grade Zone M3 is open with depth and only occurs within the Inferred Mineral Resource. Grade Zone INT refers to material that is not defined within M1, M2 or M3 but lies within the host Quartz Feldspar Porphyry body. Refer Figure 1 Cross Section (5,978,100mN).

DRILLING PROGRAM PLANNED FOR Q1 2012

Dart Mining has planned to carry out a resource upgrade drilling program at the company’s Unicorn Mo – Cu – Ag deposit. Drilling is planned to close the spacing between drill holes within the upper 250m of the deposit and allow an upgrade of the current Indicated and Inferred Resource classification into the measured, indicated and inferred category. As part of this program the southern margin of the mineralisation (which would form the high wall of any future open pit) will be tested to determine the optimal pit size.

Work is planned to commence in late February 2012 following full government approvals and drill access track preparation.

As part of the resource upgrade drilling the southern mineralised breccia, sediments and rhyolite surrounding the Unicorn porphyry will be tested. Only limited testing of these zones has previously been carried out due to drill access restrictions along the main ridge line. The Maiden Resource (Indicated and Inferred) of 105 Mt @ 0.07% MoEq (see ASX release 11Oct 2011) does not include any contribution from the mineralisation surrounding the porphyry. With approval to construct drill access tracks Dart can better test the near surface potential of the deposit and is optimistic the resource base can be increased.

METALLURGICAL REPORT IMPROVES UNICORN DEVELOPMENT POTENTIAL

Dart Mining is very pleased with recent test results from a metallurgical scoping study carried out by Minmet Metallurgical Laboratories Pty Ltd (AMML). The test work is ongoing however a summary report has been received from AMML that highlights:

The two representative ore samples utilised were very amenable to high Mo and Cu recoveries by flotation with recoveries of up to 92.3% Mo / 96.1% Cu / Ag 82.6% achieved

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Mo and Cu are two distinctly separate phases, both are relatively coarse and not mineralogically linked in any way
Reagent suite for Mo and Cu flotation was simple and relatively inexpensive
Grind size of 75 microns was used to achieve these recoveries. This is a typical grind size but a coarser grind, while maintaining high metal recoveries, appears achievable
Saleable grades of Mo and Cu / Ag concentrates were produced and with further test work it is expected that the metal percentages (especially Cu) can be improved o 51% Mo metal in concentrate
23% Cu metal in concentrate plus Ag
• Ore was indicated to be amenable to upgrading by dense media separation.

Based on this initial scoping study metallurgical test work and the JORC resource, the Unicorn deposit is estimated to contain approximately 38,000 tonnes of recoverable Mo metal, 58,000 tonnes of recoverable Cu metal and 8.6 million ounces of recoverable Ag metal.

Further test work is proposed for Q1 2012 to further improve recoveries and increase saleable concentrate grades by trialling varying grind sizes, differing pH levels and alternative reagents. It is expected that once this further test work is completed, it will be used as the basis to complete a scoping study for the flotation plant design and cost.

REGIONAL EXPLORATION EXPOSES FURTHER POTENTIAL WITHIN THE UNICORN-MORGAN CORRIDOR

Dart Mining’s exploration team has worked together with an independent Consulting Geologist to carry out a comprehensive review of its most recent regional exploration program, along with historical geochemistry, mining records and aerial geophysics data. This has enabled a complete re-assessment of the prospectivity of Dart Mining’s tenements in NE Victoria to be carried out and will ensure future exploration is better targeted.

Peer review has confirmed the highly prospective nature of the Unicorn – Morgan structural corridor (refer diagram below). The targets along these structural corridors are in addition to Dart Mining’s principle project, the Unicorn Mo + Cu + Ag deposit, as well as the previously identified Morgan porphyry project. In addition to these two out-cropping mineralised porphyries the stream sediment sampling program identified Cu + Pb + Zn anomalies around the Dart Pluton String, which may represent additional mineralised porphyry opportunities.

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The interpretation of the geochemical and geophysical dataset over the northern half of the tenements, a review of the Morgan Porphyry prospect geochemical signature suggests that previous drilling has only passed through the upper part of an extensive mineralised system. A 3 km by 2 km soil grid across Morgan has shown extensive anomalous zones of Tin, Bismuth and Tellurium (in addition to Mo / Cu / Ag / Au) which are known, world-wide markers. For comparison the Unicorn and Morgan geochemical grids are presented below at the same scale.

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