DART MINING NL — Interim / Quarterly Report 2017

Jul 30, 2017

ASX Release Report for the Quarter Ended 30 June 2017

31st July 2017

CORPORATE & EXPLORATION UPDATE

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ASX Code: DTM

• Confirmation of Spodumene bearing Lithium fertile pegmatite dykes within EL 5315 (see ASX release 3[rd] April 2017).

• Significant progress with R&D offset claim dispute, with AusIndustry now recognizing over 84% of the claimed activities are eligible, with the amount remaining in dispute approximately $320,000 (see ASX release 14[th] July 2017).

• Regional dyke geochemistry trend defines a 20km by 12km lithium target zone at the northern end of the Dorchap Dyke Swarm for targeted initial exploration (see ASX release 24[th] July 2017).

• Grab sampling from the Gosport # 3 dyke shows up to 1.28% Li2O (see ASX release 24[th] July 2017).

• Darts internal exploration program – utilizing Drone survey equipment as well as boots on the ground - is focused on identifying additional large sized pegmatites akin to the spodumene bearing Eagle dyke.

• The company has furthered advanced farm-in style joint-venture discussions and negotiations on its Lithium strategy. Dart is confident that joint-venture terms can be achieved and that an accelerated exploration and exploitation program can begin.

• Dart is actively seeking external farm-in style joint-venture interest across its three defined strategies including Lithium, Porphyries, and Small Gold. Discussions are progressing across all three strategies at present.

• The company raised $160,000 before costs during the quarter (see ASX release 29[th] June 2017). Proceeds are to be used to further the company’s Lithium exploration program and meet corporate overheads.

Key Prospects / Commodities:

GOLD

Mountain View / New Discovery - Au Fairleys - Au

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

LITHIUM / TIN / TANTALUM

Glen Wills – 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: 411,485,049 Unlisted options: 1,250,000

Substantial Shareholders:

Top 20 Holdings: 41.09%

Board & Management:

REGIONAL PEGMATITE GEOCHEMISTRY

Dart first reported the discovery of lithium mineralisation from the southern end of the Dorchap Dyke Swarm at Glen Wills (See DTM ASX 9 [th] August 2016) with two grab samples taken at the Blue Jacket Dyke showing results of up to 1.57% (Li2O) and 1172ppm tantalum oxide (Ta2O5). Further results were reported (ASX 3 April 2017) from limited grab and rock chip sampling along the northern end of the dyke swarm (27 samples from 13 individual dykes) with up to 4m @ 1.13% (Li2O) and 56.4ppm tantalum oxide (Ta2O5) at the Gosport dyke group – Eskdale (Figure 1). The identification of spodumene by XRD in all 7 dyke samples submitted for analysis from the northern end of the swarm has prompted the focus of initial regional exploration along the northern 40km section (Figure 1).

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

Visit our webpage: www.dartmining.com.au

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A regional dyke geochemistry rock chip program was completed along the northern end of
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A regional dyke geochemistry rock chip program was completed along the northern end of the dyke swarm during the June Quarter. The aim of this work was to use predictable variations in trace element composition within the dyke swarm at a regional scale to provide an exploration vector to the most prospective regions within the 600 km[2] northern end of the Dorchap Dyke Swarm (some 40km by 15km in size). The sheer size of the dyke swarm and the harsh terrain means it is not time efficient or cost effective to systematically visit every dyke. The use of established trace element trends to focus exploration toward the more fractionated zones produces a far more targeted and efficient exploration program within the most highly prospective areas. At the present level of regional sampling (see ASX release 24[th] July 2017) the more fractionated dykes appear to form within an area of 240 km[2] as a belt some 20km along strike by 12km across strike (Figure 1). This fractionation target zone represents the more prospective area for lithium, tin and tantalum mineralisation and will be the initial focus of ongoing exploration.

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Figure 1. Tenement location and extent of pegmatite dykes of the Dorchap Dyke Swarm.

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TENEMENT STATUS

Tenement applications EL006277 (Empress) and EL006300 (Eskdale) have proceeded through Native Title advertising as the final step toward grant in the statutory application processes. Application EL006486 was submitted 30[th] March 2017 and is subject to the ongoing approvals process.

Table 1. Tenement Status

	Tenement Number	Name	Tenement Type	Area (Grats) Unless specified	Interest	Interest Post‐ Completion of Tenement Acquisition5	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	EL (Application)	~220	100%		NE Victoria
	EL006300	Eskdale3	EL (Application)	~240	100%		NE Victoria
	EL006486	Mt Creek	EL (Application)	~191	100%		NE Victoria
	EL5468	Upper Murray	Exploration	148	100%		NE Victoria
	ML5559	Mt View2	Mining	4.8 Ha	100%		NE Victoria
	EL5315	Mitta Mitta4	Exploration	195	50% JV	100%	NE Victoria
	MIN5246	Chinaman’s4	Mining	5 Ha	50% JV	100%	Central Victoria
	MIN5306	Phoenix4	Mining	5 Ha	50% JV	100%	Central Victoria
	MIN5538	Rushworth4	Mining	34.8 Ha	50% JV	100%	Central Victoria

All tenements remain in good standing at 30 June 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: Subject to Completion of a Mining Tenement Acquisition Agreement (see Note 5 below), these areas are subject to a 0.75% Net Smelter Royalty on gold production, payable to Bruce William McLennan

NOTE 5: See Dart’s ASX Announcement “Acquisition of Tenement Package” dated 6 February 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 June 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(9 months)
			$A’000
1.	Cash flows from operating activities
144	Receipts from customers	-	-
1.2	Payments for
	(a) exploration & evaluation	(52)	(153)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(126)	(459)
	(e) administration and corporate costs	(81)	(636)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	13
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	(258)	(1,235)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	(10)	(20)
	(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	(9 months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	-
	(b) tenements (see item 10)	-	-
	(c) investments	-	10
	(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	(10)	(10)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	160	1,090
3.2	Proceeds from issue of convertible notes	-	-
3.3	Proceeds from exercise of share options	-	-
3.4	Transaction costs related to issues of	-	(63)
	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	160	1,027
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	327	437
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)	(258)	(1,235)
4.3	Net cash from / (used in) investing activities
	(item 2.6 above)	(10)	(10)
4.4	Net cash from / (used in) financing activities
	(item 3.10 above)	160	1,027
4.5	Effect of movement in exchange rates on	-	-
	cash held
4.6	Cash and cash equivalents at end of	219	219
	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

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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 219 327
5.2 Call deposits - -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 219 327
quarter (should equal item 4.6 above)
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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 53 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		25
9.2	Development		-
9.3	Production		-
9.4	Staff costs		115
9.5	Administration and corporate costs		90
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		230

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
	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: ............................................................ Date: 31 July 2017 Company secretary

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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