DART MINING NL — Interim / Quarterly Report 2018

Oct 30, 2017

ASX Release Report for the Quarter Ended 30 September 2017

31[st] October 2017

CORPORATE & EXPLORATION UPDATE

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ASX Code: DTM

•  The company announced a capital raising initiative through a 1:2 Entitlement Issue with attaching option expiring 28 February 2019.

•  The company’s on-ground Lithium exploration was hampered by unusually difficult weather conditions which left access to target areas limited during the September quarter, that said, the immediate and short-term Lithium exploration focus is centered on identifying, singularly large, and clustered, pegmatites within the Dorchap Range exploration lease areas. We expect to be able to more actively map and sample during the December quarter.

•  The companies tax concession dispute with AusIndustry progressed and to date AusIndustry has recognised that over 84% of the Company’s claims meet the requirements of the legislation for the relevant years, with the amount remaining in dispute reduced to approximately $320,000. Discussions are continuing on these outstanding disputed activities.

•  The company worked towards completion of its previously reported JV assets acquisition initiative and we expect to finalise these transactions in the near term.

•  As previously reported the board feels the company’s Lithium and Porphyry commercial strategies are optimally suited to JV arrangements so that accelerated exploration and development options can be considered. The company expects that discussions around such arrangements will continue to materialise and develop over the near term.

•  Strategically important land (lease) management activities were undertaken during the quarter and a tenement status update will be forthcoming in the near-term also.

Key Prospects / Commodities:

GOLD

Mountain View / New Discovery - Au Fairleys - Au

Rushworth – Phoenix - Au Onslow – Au Saltpetre Gap - Au

LITHIUM / TIN / TANTALUM

Empress – Li-Sn-Ta Eskdale / Mitta – Li-Sn-Ta

PORPHYRY GOLD / COPPER / MOLYBDENUM

Empress – Au-Cu Stacey’s – Au-Cu Copper Quarry: Cu+/- Au Gentle Annie: Cu

Morgan Porphyry: Mo-Ag-Au Unicorn Porphyry: Mo-Cu-Ag

Investment Data:

Shares on issue: 617,227,681 Listed options: 205,742,632 Unlisted options: 1,150,000

Substantial Shareholders:

Top 20 Holdings: 47.48 %

TENEMENT STATUS

Board & Management:

Tenement applications EL006277 (Empress) and EL006300 (Eskdale) have proceeded through Native Title advertising and were granted 14 and 15 August 2017 respectively. Application EL006486 was submitted 30 March 2017 and remains subject to the ongoing approvals process.

The Mountain View Mining License MIN5559 was surrendered and the area reverted to the surrounding EL4726 (Dart). The license was surrendered to allow for the application of a larger Mining License area able to support the optimal open pit design for the proposed Mountain View development. The previous 5Ha MIN5559 did not allow the pit design to reach maximum depth and was too small for all required site infrastructure. The application for the larger tenement was in preparation at the end of the Quarter and scheduled for submission to DEDJTR before 30 October 2017.

Managing Director: James Chirnside Non-Executive Director: Luke Robinson Non-Executive Director: Russell Simpson Company Secretary: Julie Edwards

Dart Mining NL

ACN 119 904 880

Contact Details:

4 Bryant Street, Corryong VIC 3707 Australia

James Chirnside

Phone: +61 (0)419 605 842 Email: jchirnside@dartmining.com.au

Vi it b d t i i

During the Quarter JV mining tenements MIN5246, MIN5306 and MIN5538 (Rushworth) and Exploration License EL5315 (Mitta) were registered as being transferred to Unicorn Holdings Pty Ltd (100% owned by Dart Mining NL). This brings the ownership of all mining and exploration tenements to 100% (Table 1).

Table 1. Tenement Status

	Tenement Number	Name	Tenement Type	Area (Grats) Unless specified	Interest	Location
	EL4724	Buckland2	Exploration	40	100%	NE Victoria
	EL4726	Dart1&2	Exploration	164	100%	NE Victoria
	EL5058	Cudgewa	Exploration	216	100%	NE Victoria
	EL5194	Mt. Alfred	Exploration	27	100%	NE Victoria
	EL006277	Empress	Exploration	221	100%	NE Victoria
	EL006300	Eskdale3	Exploration	245	100%	NE Victoria
	EL006486	Mt Creek	EL(Application)	~191	100%	NE Victoria
	EL5468	Upper Murray	Exploration	148	100%	NE Victoria
	EL5315	Mitta Mitta4	Exploration	195	100%	NE Victoria
	MIN5246	Chinaman’s4	Mining	5 Ha	100%	Central Victoria
	MIN5306	Phoenix4	Mining	5 Ha	100%	Central Victoria
	MIN5538	Rushworth4	Mining	34.8 Ha	100%	Central Victoria

All tenements remain in good standing at 30 September 2017.

NOTE 1: Unicorn Project area subject to a 2% NSR Royalty agreement with BCKP Limited (Orion Mine Finance) dated 29 April 2013. NOTE 2: Areas subject to a 1.5% Founders NSR Royalty Agreement.

NOTE 3: Areas subject to a 1.0% NSR Royalty Agreement with Minvest Corporation Pty Ltd (See DTM ASX Release 1 June 2016). NOTE 4: Areas are subject to a 0.75% Net Smelter Royalty on gold production, payable to Bruce William McLennan

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Figure 1. Tenement locations as at 30 September 2017.
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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

DART MINING NL

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ABN Quarter ended (“current quarter”)

84 119 904 880

30 September 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(3 months)
			$A’000
1.	Cash flows from operating activities
144	Receipts from customers	-	-
1.2	Payments for
	(a) exploration & evaluation	(36)	(36)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(102)	(102)
	(e) administration and corporate costs	(73)	(73)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Research and development refunds	-	-
1.8	Other	-	-
1.9	Net cash from / (used in) operating	(211)	(211)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	(18)	(18)
	(d) other non-current assets	-	-

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(3 months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	-
	(d) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(18)	(18)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	30	30
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	(11)	(11)
	shares, convertible notes or options
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	19	19
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	219	219
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	(211)	(211)
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)	(18)	(18)
4.4	Net cash from / (used in) financing activities
	(item 3.10 above)	19	19
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	9	9
	period

• See chapter 19 for defined terms

1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash Current quarter Previous quarter equivalents $A’000 $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 9 219 5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide details) - - 5.5 Cash and cash equivalents at end of 9 219 quarter (should equal item 4.6 above)

6. Payments to directors of the entity and their associates Current quarter $A'000

6.1 Aggregate amount of payments to these parties included in item 1.2 44 6.2 Aggregate amount of cash flow from loans to these parties included - in item 2.3

6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

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7. Payments to related entities of the entity and their Current quarter associates $A'000

7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included - in item 2.3

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• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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• See chapter 19 for defined terms 1 September 2016

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities	-		-
8.2	Credit standby arrangements	-		-
8.3	Other (please specify)	-		-
8.4	Include below a description of each facility above, including the lender,		interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter	end, include details of those facilities as well.

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9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		20
9.2	Development		-
9.3	Production		-
9.4	Staff costs		112
9.5	Administration and corporate costs		170
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		302

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and		of quarter	quarter
	2.2(b) above)	location
10.1	Interests in mining	ML5559	100%	4.8 Ha	Nil
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining
	tenements and
	petroleum tenements
	acquired or increased

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

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

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

Sign here: ............................................................ Company secretary

Date: 31 October 2017

Print name: Julie Edwards

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

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

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

4. See chapter 19 for defined terms 1 September 2016

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