DART MINING NL — Interim / Quarterly Report 2016

Jan 30, 2017

ASX Release Report for the Quarter Ended 31 December 2016

31st December 2016

CORPORATE UPDATE

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ASX Code: DTM

• Dart conducted additional field work and planning, in relation to a proposed lithium exploration program, designed to isolate and identify suitable drill targets in the highly prospective Dorchap Dyke Swarm. (see application progress below)

• End-user as well as investor interest in Lithium has continued to build through the December quarter and reported prices from Lithium carbonate are trading around record levels.

Key Prospects / Commodities:

GOLD

Mountain View / New Discovery - Au Fairleys - Au Rushworth – Phoenix - Au Beechworth – North/South Taff - Au Saltpetre Gap - Au Onslow - Au

LITHIUM / TIN / TANTALUM

• Further consultation and positive progress has been made with Innovation Australia in relation to R&D tax concession grants. Dart is confident that it will achieve a resolution to this issue by financial year end.

• Financial modelling around Dart’s Small Gold exploitation strategy has advanced significantly. Further ore sample lab testing is required to establish more precise information around gold recoveries and economics.

• An internal study has been undertaken to identify small gold deposit opportunities that fit within Dart’s strict exploitation criteria. The study has thrown up several such opportunities that require further investigation.

Glen Wills – Li-Sn-Ta Eskdale – Li-Sn-Ta

PORPHYRY GOLD / COPPER

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: 346,151,714 Unlisted options: 8,200,000

Substantial Shareholders:

Top 20 Holdings: 41.01%

Board & Management:

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

TENEMENT APPLICATION PROGRESS

The exploration licence applications submitted in the June Quarter to secure the highly prospective Dorchap Dyke Swarm are now at the final stage of the statutory processes prior to an assessment for grant. The exploration licenses cover approximately 460 km[2] centered on the townships of Eskdale and Glen Wills, adjacent to other Dart Mining tenements – Figure 1. EL5194 (Alfred) underwent a statutory area reduction in November with the key Copper Quarry porphyry prospect retained under the licence.

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Figure 1. Dart Mining and JV Tenement Locations with Application areas EL006277 and EL006300

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. EL5914 (Alfred) tenement area was reduced as part of statutory relinquishment requirements with the prospective Copper Quarry porphyry prospect retained.

Table 1. Tenement Status

		Tenement **Type **	Area (Grats) Unless specified
Tenement Number	Name			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	EL (Application)	~220	100%	NE Victoria
EL006300	Eskdale3	EL (Application)	~240	100%	NE Victoria
EL5468	Upper Murray	Exploration	148	100%	NE Victoria
ML5559	Mt View2	Mining	4.8 Ha	100%	NE Victoria
MIN5246	Chinaman’s4	Mining	5 Ha	50% JV	Central Victoria
MIN5306	Phoenix4	Mining	5 Ha	50% JV	Central Victoria
MIN5538	Rushworth4	Mining	34.8 Ha	50% JV	Central Victoria
EL4697	Beechworth4	Exploration	36	50% JV	NE Victoria
RL006013	Beechworth4	RL (Application)	3616 Ha	50% JV	NE Victoria
EL5315	Mitta Mitta4	Exploration	195	50% JV	NE Victoria

All tenements remain in good standing at 30 September 2016.

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 subject to a Joint Venture Agreement with NMV Pty Ltd (See DTM ASX Release 13 November 2015) applies to Gold production only. Other commercially exploited minerals within the Joint Venture tenement areas with NMV Pty Ltd are subject to a 1% Net Smelter Royalty Agreement payable to NMV Pty Ltd. EL4697 remains current within RL006013 (Retention Licence) application area until RL Application is finalized.

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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

Name	of entity
DART	MINING NL
ABN		Quarter ended (“current	quarter”)
84 119 904 880		31 December 2016
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	(22)	(77)
	(b) development	-	-
	(c) production	-	-
	(d) staff costs	(127)	(217)
	(e) administration and corporate costs	(125)	(407)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	1	12
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	(273)	(489)
	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)	(10)
	(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	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		(10)	(10)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares		-	630
3.2	Proceeds from issue of convertible notes		-	-
3.3	Proceeds from exercise of share options		-	-
3.4	Transaction costs related to issues of		(4)	(57)
	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		(4)	573
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period		598	437
4.2	Net cash from / (used in) operating
	activities (item 1.9 above)		(273)	(689)
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)		(4)	573
4.5	Effect of movement in exchange rates on		-	-
	cash held
4.6	Cash and cash equivalents at end of		311	311
	period

• See chapter 19 for defined terms

1 September 2016

Page 2

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

5.	Reconciliation of cash and cash	Current quarter	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		311	598
5.2	Call deposits		-	-
5.3	Bank overdrafts		-	-
5.4	Other (provide details)		-	-
5.5	Cash and cash equivalents at end of		311	598
	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	65
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

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

• 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.

9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		16
9.2	Development		-
9.3	Production		-
9.4	Staff costs		111
9.5	Administration and corporate costs		122
9.6	Other (provide details if material)		-
9.7	Total estimated cash outflows		249

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 January 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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