DART MINING NL — Interim / Quarterly Report 2020

Jan 30, 2020

ASX Release Report for the Quarter Ended 30 December 2019

31 JANUARY 2020

Dart Mining ( ASX: DTM ) (“Dart” or “the Company”) is pleased to present its Quarterly Report for the period ended 31 December 2019, and to provide the following commentary and update to shareholders.

HIGHLIGHTS

• Encouraging assay results from continued exploration and sampling at the Company’s wholly owned Buckland Gold Project in NE Victoria;

• Completion of share consolidation on 4 December 2019;

• Successful capital raising in late December 2019, and

• AGM held on 29 November 2019

Commenting on the quarter, Managing Director James Chirnside said:

“Sampling from the Buckland Project has given the company even greater confidence in the efficiency and merit of our exploration approach, with substantial mineralisation occurrences being discovered. With the commencement of drill testing in the next quarter, we are confident that this will yield a positive result.”

OPERATIONAL AND CORPORATE REVIEW GOLD EXPLORATION UPDATE

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ASX Code: DTM

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:

On 13 December 2019, the Company provided an update regarding the status of the Buckland Gold Project, reporting continued exploration success amid encouraging assay results confirming Dart Mining’s exploration model.

Shares on issue: 58,464,782 Unlisted options: 6,450,000

Substantial Shareholders:

BUCKLAND GOLD PROJECT

Soil Sampling

Ongoing soil sampling along the Fairleys Shear Zone defined a strong arsenic-gold anomaly north-west of the Fairleys Prospect, designated as the Murray Ridge Anomaly. The anomaly extends for at least 950m with gold values peaking at 356ppb (0.36 g/t Au). This anomaly is interpreted to indicate an extension of the prospective Centennial / Fairleys / Western Anomaly / St Lawrence shear trend that has now been defined over a length of at least 5.5km. It represents a compelling target for drill testing.

Top 20 Holdings: 56.34%

Board & Management:

Managing Director: James Chirnside Non-Executive Director: Denis Clarke Non-Executive Director: Luke Robinson Company Secretary: Julie Edwards

Dart Mining NL

ACN 119 904 880

Contact Details:

4 Bryant Street, Corryong VIC 3707 Australia

James Chirnside

Email: jchirnside@dartmining.com.au

Visit our webpage: www.dartmining.com.au

Rock Chip Sampling

The recent detailed prospect-scale mapping and chip sampling has been focused along only a small 1.7km long section of the much longer Fairleys Shear Zone with systematic rock chip sampling particularly focused on the Fairleys and Western Anomaly targets. Results are very positive across both targets and confirm the potential of the 8.5km long Fairleys Shear Zone to host large-scale gold mineralization. Recent results from sheared mineralized sediment (Type B mineralization) include 5.2m @ 10.22 g/t Au from the Fairleys Prospect and 4.5m @ 9.79 g/t Au from the south end of the Western Anomaly. Rock chip sampling along the western side of the Fairleys Shear Zone has also identified broad sections of similar strong gold mineralisation within sheared sediments at the Queen Jubilee Prospect with 7.5m @ 2.66 g/t Au and 3m @ 3.88 g/t Au at the Try Again workings (ASX 2 Sept 2019). The results add credence to Dart Mining’s exploration model.

Rock chip sampling within the large-scale Fairleys Shear Zone confirmed significant Type B gold mineralisation occurs over broad intervals of sheared sediment:

FAIRLEYS MAIN LINE

• 5.2m @ 10.22 g/t Au***

• 5.75m @ 1.92 g/t Au *

• 5.6m @ 10.7 g/t Au*

• 13.7m @ 3.97 g/t Au*

WESTERN ANOMALY ST LAWRENCE

• 4.5m @ 9.79 g/t Au***

• 5m @ 1.24 g/t Au

• 10m @ 0.86 g/t Au***

  • 2.5m @ 5.71 g/t Au

• 9m @ 0.89 g/t Au***

• 5m @ 2.51 g/t Au***

• 10m @ 2.99 g/t Au*

• 7.5m @ 2.66 g/t Au**

DTM ASX 25 OCT 2007 DTM ASX 2 SEP 2019 **DTM ASX 13 DEC 2019

Plans

The regional soil geochemistry program has already produced numerous targets for follow-up by detailed mapping and sampling in early 2020. Importantly, the significant gold results from chip sampling have identified several highquality drill targets. Drilling, subject to the usual tenement and permitting approvals, is scheduled for March quarter 2020.

Exploration results to date continue to be consistent with Dart’s belief that the Buckland Gold Project has excellent potential to host large-scale gold mineralization.

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Buckland goldfield with graduated regional soil arsenic (As) level (ppm) with significant anomalies highlighted (magenta). Historic mine location data (red stars) from F. Sargent Historical Mining Activity layer (GeoVic: https://earthresources.vic.gov.au/geology-exploration/mapsreports-data/geovic) for reference.

Mapping and sampling

Multiple gold-arsenic anomalies have now been identified along approximately 20km of the western side of the Buckland Goldfield. Gold-arsenic anomalies identified by the on-going regional geochemical soil sampling program are interpreted to represent recurrent mineralisation associated with the regional-scale Fairleys Shear Zone. To date, detailed exploration activity has focused along a 1.7km section trending north-west from the Fairleys Prospect with systematic rock chip sampling returning very encouraging results. These results further support the significant results of early rock chip sampling along the Fairleys historic workings conducted by Dart Mining in 2007 / 2008. The rock chip samples from both programs are mostly from outcrops of sheared sediments with disseminated sulphide development (now oxidized) and variable silicification (defined as Type B mineralisation). This style of shear-hosted mineralisation has potential to form large-scale gold deposits.

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Map showing the Fairleys Prospect relative to Western Anomaly and the historic Miners Glory, Queens Jubilee, Laura, Try Again and St Lawrence mines with graduated soil arsenic (pXRF in ppm) and graduated fire assay gold (ppb).

Regional soil geochemical program

The regional soil sampling program is on-going with a total of approximately 3,500 samples collected from 85km of traverses across the interpreted strike of the Fairleys Shear Zone. The traverses cover approximately 20 km of strike extent along the western side of the historic goldfield.

The regional program will be expanded to cover the full extent of the goldfield, guided initially by wide- spaced ridge and spur sampling. Multiple anomalies have been identified that will require ground follow-up during the 2020 field program.

Future exploration

Considerable drilling will ultimately be required to fully evaluate the potential of the large Fairleys Shear Zone and subsidiary shear zones. However, priority targets for first-pass are defined at Fairleys and the Western Anomaly. Subject to the usual permitting considerations, drilling is scheduled for March quarter 2020. Subject to tenement approvals, drilling is also planned elsewhere in 2020.

The Buckland Gold Project remains Dart’s highest priority exploration project, as excellent potential exists for proving-up large-scale gold mineralization.

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SANDY CREEK GOLDFIELD

No update this quarter.

LITHIUM EXPLORATION UPDATE

DORCHAP DYKE SWARM

No update this quarter.

CORPORATE

Share Consolidation

Dart Mining announced on 4 December 2019 that, following the approval by shareholders at the company’s AGM during the quarter, that a share consolidation would take effect over the same month.

The number of fully paid ordinary shares on issue pre-consolidation was 1,070,376,136. Post-consolidation there are approximately 53,519,107 shares on issue.

Capital raising

On 20 December 2019, the Company announced the private placement of approximately 6,000,000 fully paid ordinary shares at an issue price of $0.10 per share with a free unlisted option for every two shares issued under the placement. The unlisted options are exercisable at $0.25 and expire 30 Jun 2021. This placement will raise approximately $600,000.

The placement will be issued under existing capacity with 5,351,910 shares to be issued under rule 7.1A and the balance to be issued under rule 7.1. A broker was not engaged for this placement.

Cash

The Company’s cash position at the end of the December quarter was approximately $250,000.

Annual General Meeting

On 29 November 2019, the Company announced the results of its Annual General Meeting.

All proposed resolutions were carried; in accordance with ASX Listing Rule 3.13.2 and section 251AA of the Corporations Act, details of the proxy votes received, and poll votes cast in respect of each resolution are as follows:

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TENEMENT STATUS

All tenement applications continue to pass through the approvals process with the tenements remaining in good standing as at 31 December 2019 (Table 1 – Map below). Mining License MIN006619 (Mt View) was recently granted for a period of five years over the expanded Mountain View Project area. Tenement application EL007099 (Sandy Creek) was also recently submitted to cover the northern extent of the Sandy Creek Goldfield. A further tenement application (EL007071) to cover the Copper Quarry prospect at Berrnigama has been submitted but has yet to receive priority, this application will replace the expired EL5194 (Alfred). Statutory relinquishment of 25% of the original granted area of EL006277 and EL006300 on the second anniversary of the license grant date has also been finalized (Table 1).

Table 1. TENEMENT STATUS

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Tenement Area (km2)
Name Tenement Type Interest Location
Number Unless specified
EL5315 Mitta Mitta [4] Exploration 172 100% NE Victoria
EL006016 Rushworth Exploration 60 100% Central Victoria
EL006277 Empress Exploration 165 100% NE Victoria
EL006300 Eskdale [3] Exploration 183 100% 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) 567 100% NE Victoria
EL006866 Cudgewa EL (Application) 508 100% NE Victoria
EL006994 Wangara EL (Application) 190 100% Central Victoria
EL007007 Union EL (Application) 3 100% Central Victoria
EL007008 Buckland West EL (Application) 344 100% NE Victoria
EL007099 Sandy Creek EL (Application) 437 100% NE Victoria
EL007071 Berringama EL (Application) 27 100% 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 224 Ha 100% NE Victoria
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All tenements remain in good standing at December 2019.

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.

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Location of Dart Mining’s exploration tenements in north-eastern and Central Victoria.

For more information, please contact: James Chirnside Peter Taylor Managing Director Investor Relations jchirnside@dartmining.com.au peter@nwrcommunications.com.au +61 419 605 842 +61 412 036231

About Dart Mining

Dart Mining (ASX: DTM) floated on the ASX in May of 2007 with the aim of evaluating and developing several historic Goldfields as well as substantiating a new porphyry province in NE Victoria. The area is prospective for precious, base, and minor metals. These include Lithium, Gold, Silver, Copper, Molybdenum, Zinc, Tungsten, Tin, Tantalum, and a host of other important minerals. Dart Mining has built a strategic gold footprint in the Central and North East Region of Victoria where historical surface mining and alluvial gold indicates the existence of potentially significant gold endowment.

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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 ABN Quarter ended (“current quarter”) 84 119 904 880 31 December 2019

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Consolidated statement of cash flows Current quarter Year to date
$A’000
(6 months)
$A’000
1. Cash flows from operating activities
144 Receipts from customers 6 6
1.2 Payments for
(a) exploration & evaluation (286) (563)
- -
(b) development
- -
(c) production
(d) staff costs (36) (48)
(e) administration and corporate costs (66) (149)
1.3 Dividends received (see note 3) - -
1.4 Interest received 1 -
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 (381) (766)
activities
2. Cash flows from investing activities
2.1 Payments to acquire:
(a) property, plant and equipment (6) (86)
- -
(b) tenements (see item 10)
(c) investments (15) (15)
- -
(d) other non-current assets
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• See chapter 19 for defined terms

1 September 2016

Page 1

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

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Consolidated statement of cash flows Current quarter Year to date
$A’000
(6 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 (21) (101)
activities
3. Cash flows from financing activities
3.1 Proceeds from issues of shares 565 798
3.2 Proceeds from issue of convertible notes - -
3.3 Proceeds from exercise of share options - -
3.4 Transaction costs related to issues of (8) (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 557 787
activities
4. Net increase / (decrease) in cash and
cash equivalents for the period
4.1 Cash and cash equivalents at beginning of
period 97 332
4.2 Net cash from / (used in) operating
activities (item 1.9 above) (381) (766)
4.3 Net cash from / (used in) investing activities
(item 2.6 above) (21) (101)
4.4 Net cash from / (used in) financing activities
(item 3.10 above) 557 787
4.5 Effect of movement in exchange rates on - -
cash held
4.6 Cash and cash equivalents at end of 252 252
period
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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

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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 252 262
5.2 Call deposits - 60
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of 252 322
quarter (should equal item 4.6 above)
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6. Payments to directors of the entity and their associates 6.1 Aggregate amount of payments to these parties included in item 1.2 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3	Current quarter $A'000
	71
	-

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

Directors Fees

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

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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.

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9. Estimated cash outflows for next quarter $A’000
9.1 Exploration and evaluation 200
9.2 Development -
9.3 Production -
9.4 Staff costs 30
9.5 Administration and corporate costs 80
9.6 Other (land assets) -
9.7 Total estimated cash outflows 310
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
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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

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 2020 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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