DART MINING NL — Interim / Quarterly Report 2018

Oct 31, 2018

ASX Release Report for the Quarter Ended 30 September 2018

30 September 2018

Quarterly Activities Summary

==> picture [118 x 147] intentionally omitted <==

ASX Code: DTM

• The company was able to successfully complete its Rights Issue, raising $1.93m in July.

• Exploration activities continued apace during the quarter under difficult conditions

• RSC Consulting, who have been directing the early stage Lithium exploration program around the township of Eskdale, provided technical assistance and personnel as well as building out an optimised region-wide program.

• Weather has been a factor in delays to the program over the quarter with higher than average snowfall and below average temperatures. Seasonal track access hampered efforts in specific areas.

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

• Despite these impediments solid progress has been made in mapping and sampling of pegmatites suitable for drilling as well as Geochemical soil sampling on specific drill targets.

• Work plans have been prepared, flora and fauna studies completed, and landoffset investigations are being concluded.

• Delays to the program has deferred drilling into December 2018, subject to department work plan approvals.

• Further regional exploration for Lithium pegmatites is focussed both around the Eskadale area as well as further south at Glen Wills.

• A comprehensive Lithium exploration update will be released next week with more specific detail on what has been achieved.

• Further mapping on Dart’s Au tenements at Rushworth were completed and we are weighing options around Rushworth with further sampling.

Exploration and Tenement Status Update

Dart Mining initiated a number of strategic tenement applications during the September Quarter to secure ground prospective for both porphyries related precious and base metal systems and orogenic gold. The applications have been submitted and are uncontested but await priority allocation under the approvals process. The majority of the new application areas have previously been held under various tenements by the company that had been progressively relinquished as part of statutory requirements (figure 1).

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: 856,614,232 Unlisted options: 419,830,574

Substantial Shareholders:

Top 20 Holdings: 44.23%

Board & Management:

Managing Director: James Chirnside Non-Executive Director: Denis Clarke 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

Since 2007, Dart Mining have identified a new porphyry mineralisation province in the region around Corryong in north east Victoria (figure 1). The work carried out by Dart Mining since IPO in 2007 has greatly enhanced the geological understanding of the north east region and has paralleled the larger joint initiative between the Geological Survey of Victoria (GSV), Geological Survey of New South Wales and Geoscience Australia (GA). This joint study has produced several significant reports and technical papers on a concept known as the Lachlan Orocline of Eastern Australia. The study has resulted in a huge leap forward in the understanding of the evolution of eastern Australian with the GSV recognising that the Macquarie Arc is likely to lie beneath the Omeo Zone within the Corryong region, presenting a favorable tectonic setting with the potential to be rich in base metal deposits. This endorsement of the regions prospectivity by the GSV and the discoveries already made by Dart Mining has further supported the companies’ confidence in the region and has placed previous porphyry discoveries into context along the greater Lachlan Fold Belt (LFB). The GSV recently completed a large seismic and gravity survey transect across the north east of Victoria, passing immediately south of Corryong. The release of the data package of this new survey will provide further constraints on the tectonic setting of the region and greatly enhance the potential for additional discoveries.

The recent applications near Corryong (EL006764, EL006865 and EL006866 – figure 1) cover these highly prospective regions and complement the existing Retention License (RL006616) application over the Unicorn base and precious metals region Porphyry system.

The Buckland EL application (EL006861 – figure 1) surrounds the Fairleys RL application (RL006615) and will secure tenure along interpreted regional shears in the Buckland Goldfield that show further potential for Fairleys style disseminated gold mineralisation (figure 1). The application area already contains a number of mineralised shears identified during previous exploration work at Centennial, Kaufmanns and Great White Star.

Together the granted tenements and areas under application now total some 2500 km[2] under tenure; these areas host prospects that contribute to the company’s three key strategy areas of lithium, orogenic gold and porphyry exploration and development (table 1).

Table 1. TENEMENT STATUS

==> picture [594 x 235] intentionally omitted <==

----- Start of picture text -----

Tenement Area (km [2] )
Name Tenement Type Unless Interest Location
Number
specified
EL5194 Mt. Alfred Exploration 27 100% NE Victoria
EL5315 Mitta Mitta [4] Exploration 195 100% NE Victoria
EL006277 Empress Exploration 221 100% NE Victoria
EL006300 Eskdale [3] Exploration 245 100% NE Victoria
EL006486 Mt Creek Exploration 190 100% NE Victoria
EL006764 Cravensville EL (Application) ~170 100% NE Victoria
EL006861 Buckland EL (Application) ~414 100% NE Victoria
EL006865 Dart EL (Application) ~500 100% NE Victoria
EL006866 Cudgewa EL (Application) ~500 100% NE Victoria
EL5468 Upper Murray Surrendered 77 100% NE Victoria
RL006615 Fairley’s [2] Retention License Application 340 Ha 100% NE Victoria
RL006616 Unicorn [1&2] Retention License Application 23,243 Ha 100% NE Victoria
MIN006619 Mt View [2] Mining License Application 224 Ha 100% NE Victoria
MIN5246 Chinaman’s [4] Mining 5 Ha 100% Central Victoria
MIN5306 Phoenix [4] Mining 5 Ha 100% Central Victoria
MIN5538 Rushworth [4] Mining 34.8 Ha 100% Central Victoria
----- End of picture text -----

All tenements remain in good standing at 30 October 2018.

NOTE 1: Unicorn Project area subject to a 2% NSR Royalty agreement with Osisko Gold Royalties Ltd 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

2

Figure 1. Dart Mining Tenement Locations as at October 2018.

==> picture [444 x 173] intentionally omitted <==

==> picture [444 x 173] intentionally omitted <==

==> picture [594 x 94] intentionally omitted <==

==> picture [594 x 95] intentionally omitted <==

==> picture [594 x 94] intentionally omitted <==

3

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

==> picture [455 x 70] intentionally omitted <==

----- Start of picture text -----

DART MINING NL
ABN Quarter ended (“current quarter”)
84 119 904 880 30 September 2018
----- End of picture text -----

==> picture [455 x 446] intentionally omitted <==

----- Start of picture text -----

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 (147) (147)
- -
(b) development
- -
(c) production
(d) staff costs (75) (75)
(e) administration and corporate costs (159) (159)
1.3 Dividends received (see note 3) - -
1.4 Interest received 2 2
1.5 Interest and other costs of finance paid (1) (1)
1.6 Income taxes paid - -
1.7 Research and development refunds - -
1.8 Other - -
1.9 Net cash from / (used in) operating (380) (380)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (5) (5)
- -
(b) tenements (see item 10)
(c) investments (10) (10)
----- End of picture text -----

• See chapter 19 for defined terms 1 September 2016

Page 1

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

==> picture [455 x 666] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date
$A’000
(3 months)
$A’000
- -
(d) other non-current assets
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 (15) (15)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 1,123 1,123
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of (101) (101)
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 1,022 1,022
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 675 675
4.2 Net cash from / (used in) operating
activities (item 1.9 above) (380) (380)
4.3 Net cash from / (used in) investing activities
(item 2.6 above) (15) (15)
4.4 Net cash from / (used in) financing activities
(item 3.10 above) 1,022 1,022
----- End of picture text -----

• See chapter 19 for defined terms 1 September 2016

Page 2

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

==> picture [455 x 420] intentionally omitted <==

----- Start of picture text -----

Consolidated statement of cash flows Current quarter Year to date
$A’000
(3 months)
$A’000
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 1,302 1,302
period
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 302 675
5.2 Call deposits 1,000 -
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 1,302 675
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 66
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
----- End of picture text -----

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

• 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

Page 3

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

8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)	Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 - - - - - -

• 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 300 9.2 Development - 9.3 Production - 9.4 Staff costs 80 9.5 Administration and corporate costs 160 9.6 Other (provide details if material) - 9.7 Total estimated cash outflows 540

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

Page 4

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 October 2018 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

Page 5