DART MINING NL — Interim / Quarterly Report 2022

Mar 14, 2022

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DART MINING NL ABN: 84 119 904 880

Financial Report For the Half Year Ended 31 December 2021

Corporate Directory

Directors	Mr James Chirnside, Managing Director / Chairman
	Mr Luke Robinson Non-Executive Director
	Mr Carl Swensson, Non-Executive Director
Company Secretaries	Ms Julie Edwards
Registered Office in Australia	Level 6
	412 Collins Street
	Melbourne Victoria 3000
Principal Office in Australia	Unit 10, 204 Melbourne Road
	Wodonga Victoria 3690
Share Registry	Automic Registry Services
	Level 5
	126 Phillip Street
	Sydney New South Wales 2000
	Phone: 1300 288 664
	Overseas Callers: 61 8 9324 2099
	Facsimile: 61 8 9321 2337
Auditor	Morrows Audit
	Level 13
	Freshwater Place
	2 Southbank Boulevard
	Southbank Victoria 3006
Stock Exchange Listing	Australian Securities Exchange Ltd
	DTM Listed Ordinary Shares
Website Address	www.dartmining.com.au

Dart Mining NL

DART MINING NL

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

CONTENTS	CONTENTS	CONTENTS	CONTENTS	CONTENTS					Page
									3
									5
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income									6
Consolidated Statement of Financial Position									7
Consolidated Statement of Changes in Equity									8
Consolidated Statement Cash Flows									9
Notes to the Consolidated Financial Statements									10
									14
									15

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2021 and any public pronouncements made by Dart Mining NL during the interim reporting period in accordance with the continuous disclosure requirements of the Australian Securities Exchange.

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Dart Mining NL

Your directors present their report on the consolidated entity consisting of Dart Mining NL and the entities it controlled at the end of or during the half-year ended 31 December 2021.

Directors

The directors of Dart Mining NL at any time during or since the end of the half-year ended 31 December 2021 were:

James Chirnside (Chairman / Managing Director) Luke Robinson (Non-Executive Director) Carl Swensson (Non-Executive Director) Julie Edwards (Company Secretary)

Operating Results

The operating loss after tax of the consolidated entity for the half-year ended 31 December 2021 is $116,537 (2020: $229,712).

Review of Operations

Corporate

A detailed review of operations is contained in the quarterly reports of September 2021 and December 2021 issued to the Australian Stock Exchange Limited.

Operational Review

As we come out of a period of operating constraints related to COVID-19 we expect to be able to accelerate exploration progress as we did in the second half of 2021. On the ground we have not experienced very many delays except for some relating to equipment parts, consumables, and personnel. Pleasingly, the company has now reached a very efficient level of operational capability and self-reliance that enables us to pursue multiple exploration activities at any point in time. We have, where possible, employed local personnel and this has been a benefit historically and we expect it will serve us well going forward too. Our improved operational capability is ity that we hold.

Exploration Review

The second half of 2021 included the partial completion of a ~3,500m Reverse Circulation drilling program at our Granite Flat Copper Gold Porphyry project. The remaining ~2,500 metres will be completed in 2022 after reassessing targets generated through the Geophysical program.

Our ongoing inhouse Diamond drilling program at Granite Flat, which started in June 2021, has made good rrently underway at Granite Flat.

An extensive and expanded Geochemical program continues and is expected to be completed by the end of the first quarter in 2022. Some ~7,000 surface soil samples are being taken across an area 3km x 2km at Granite Flat. The samples will be processed and analysed using our inhouse xPRF tool.

Some 14km of geophysical lines were completed in second half 2021 and the interpretation of these has identified 9 new targets for deep drilling in 2022 (currently underway).

An extensive airborne LiDAR survey was concluded, and interpretation of the acquired data was completed in the , in particular, lithium exploration where a further ~240 previously unidentified outcrops have been uncovered. These are scheduled to be investigated and mapped in the first half of 2022.

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Dart Mining NL

Commodities

Gold (Au)

Gold bullion exhibited a sideways action through most of the second half 2021 period and we remain positive towards it for the foreseeable future. Dart holds nine historic gold fields within its tenement package.

Lithium

Lithium continued its meteoric rise breaking all historic records. From COVID-19 lows in March 2020 lithium carbonate has risen from ~$6,000 per tonne to ~$60,000 per tonne in early 2022. It is amongst the hottest of all commodities along with some other battery related metals. Dart has some of the best lithium prospectivity available in Australia at present with a fractionated area of LCT pegmatites measuring ~15km x ~60km. We have substantial scheduled work planned to begin the first half 2022 including a ~2,500m RC drilling program and extensive mapping and sampling of dozens of LTC pegmatites.

Molybdenum

Molybdenum prices have made a pleasing comeback over the past year having risen from ~$12 per pound to ~$25 exploration target despite it being in low resource. We have planned for further diamond drilling in late 2022 at this stage.

Copper

Copper, being an in-demand energy transition metal is highly sought after, reflecting very strong price action. Demand continues to look buoyant and the supply side is particularly constrained by the effects of COVID-19 in South America. Darts Granite Flat project is interpreted to be a copper gold porphyry structure and we have seen excellent copper grades from various drill intersects.

Tin

Tin prices have skyrocketed along with other energy transition metals. Dart has an application over the Walwa Tin mine which ceased operations in ~1975 due to low prices. We have scheduled work there for the second half of 2022.

set out on page 5 of the half-year Financial Report.

Signed in accordance with the resolution of Directors.

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James Chirnside Chairman / Managing Director

Luke Robinson Non-Executive Director

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Carl Swensson

Non-Executive Director

Melbourne 15[th] March 2022

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AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF DART MINING NL

I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2021 there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

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MORROWS AUDIT PTY LTD

I.L. JENKINS

Director

Melbourne: 15[th] March 2022

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Dart Mining NL

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Note Interest revenue 3 Other income 3 Total revenue 3 Total expenses 3 Profit (loss) before income tax Income tax (expense)/benefit Profit (loss) for the period Basic and diluted (loss) per share (cents per share)	Consolidated December 2021 December 2020 $ $ 66 216 269,813 28,969
	269,879 29,185 (386,416) (258,897)
	(116,537) (229,712)
	- - (116,537) (229,712)
	(0.1) (0.3)

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

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Dart Mining NL

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

Note Current Assets Cash and cash equivalents Trade and other receivables Other assets Total Current Assets Non-Current Assets Property, plant and equipment Other non-current assets Deferred exploration and evaluation assets 4 Total Non-Current Assets TOTAL ASSETS Current Liabilities Trade and other payables Provisions Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS Equity Issued capital 5 Reserves Accumulated losses TOTAL EQUITY	Consolidated December 2021 June 2021 1,663,405 1,099,385 110,215 75,407 68,438 47,751
	1,842,058 1,222,543
	2,311,299 2,102,811 106,291 106,270 13,675,121 12,406,739
	16,092,711 14,615,820
	17,934,769 15,838,363
	386,204 707,103 120,605 111,503
	506,809 818,606
	16,325 15,502
	16,325 15,502
	523,134 834,108
	17,411,635 15,004,255
	33,002,635 30,521,503 509,878 467,093 (16,100,878) (15,984,341)
	17,411,635 15,004,255

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

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Dart Mining NL

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS AT 31 DECEMBER 2021

Consolidated Group Balance at 1 July 2021 Comprehensive income Loss for the period Other comprehensive income for the year Total comprehensive income/(loss) for the year Transactions with owners, in their capacity as owners, and other transfers Options and performance rights issued Issue of fully paid shares Capital raising costs during the period Total transactions with owners and other transfers Balance at 31 December 2021 Balance at 1 July 2020 Comprehensive income Loss for the period Other comprehensive income for the year Total comprehensive income/(loss) for the year Transactions with owners, in their capacity as owners, and other transfers Options and performance rights issued Issue of fully paid shares Capital raising costs during the period Total transactions with owners and other transfers Balance at 31 December 2020	Ordinary Share Capital Share-Based Payment Reserves Accumulated losses Total $ $ $ $ 30,521,503 467,093 (15,984,341) 15,004,255
	- - (116,537) (116,537) - - - -
	- - (116,537) (116,537)
	- 42,785 - 42,785 2,700,000 - - 2,700,000 (218,868) - - (218,868)
	2,481,132 42,785 - 2,523,917
	33,002,635 509,878 (16,100,878) 17,411,635
	25,891,124 192,500 (15,193,502) 10,890,122
	- - (790,839) (790,839) - - - -
	- - (790,839) (790,839)
	- 274,593 - 274,593 4,997,274 - - 4,997,274 (362,885) - - (362,895)
	4,630,379 274,593 - 4,904,972 30,521,503 467,093 (15,984,341) 15,004,255

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Dart Mining NL

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Cash Flows from operating activities Sale of vegetation credits Other receipts Payments to suppliers and employees Interest received Interest paid Net cash inflow/ (outflow) from operating activities Cash flows from investing activities Payment for exploration expenditure Refund of Investments Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Payment of security bonds Net cash inflow/ (outflow) from investing activities Cash flows from financing activities Proceeds from issue of shares Share issue costs Net cash inflow/ (outflow) from financing activities Net cash inflow/ (outflow) for the reporting period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	Consolidated December 2021 December 2020 $ $ 260,234 - 1,176 28,969 (350,020) (446,253) 43 100 (1,432) (1,003)
	(89,999) (418,188)
	(1,466,394) (1,368,805) - 10,750 (383,728) (806,248) 30,909 - (7,900) (10,000)
	(1,827,113) (2,174,303)
	2,700,000 4,997,274 (218,868) (271,675)
	2,481,132 4,725,599
	564,020 2,133,108 1,099,385 890,086
	1,663,405 3,023,194

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

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Dart Mining NL

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

1. CORPORATE INFORMATION

are publicly traded on the Australian Securities Exchange. The half-year report for the six months ended 31 December 2020 of the company is a general-purpose report that has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This report was authorised for dated 15[th] March 2022.

The nature of the operations and principal activities of the Group are described in Note 7.

2. BASIS FOR PREPARATION

The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian Dollars unless otherwise noted.

a) Accounting Policies

• The same accounting policies and methods of computation have been followed in this interim financial report 21, unless otherwise

• stated.

b) Critical Accounting Estimates and Judgements

• The critical estimates and judgements are consistent with those applied and disclosed in the June 2021 annual report.

Key Judgements

• i. Exploration and Evaluation Expenditure

• Exploration expenditures incurred are capitalised in respect of each identifiable area of interest. These costs are only capitalised to the extent that they are expected to be recovered through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to a relinquished area are written off in full against the profit or loss in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest will be amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

ii. Government Grants/Rebates

• Government grants and/or rebates are not recognised until there is reasonable assurance that the Group will be eligible and receive such incentives.

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Dart Mining NL

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

iii. Going Concern Basis

The Group is involved in the exploration and evaluation of mineral tenements and as such expects to be cash absorbing until these tenements demonstrate that they contain economically recoverable reserves.

As at 31 December 2021, the Group had net current assets over current liabilities of $1,335,249 (30 June 2021: net current asset of $403,937) with cash reserves of $1,663,405 (30 June 2021: $1,099,386).

The financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The ability of the Group to continue as a going concern for the twelve months from the date of this report is dependent on its ability to generate additional funds from activities including: other future equity or debt fund raisings; and successful development of existing tenements.

3. LOSS FOR PERIOD

The following revenue and expense items are relevant in explaining the financial performance for the interim period.

Revenue Interest received Vegetation offset sales Profit on asset sales Profit on other sales Government rebates TOTAL REVENUE Expenses Cost of vegetation offset sales Administration expenses Consultancy fees Depreciation Employee costs Share based payments Insurance Office expenses Professional fees Travel Other expenses from ordinary activities TOTAL EXPENSES	Consolidated December 2021 December 2020 $ $ 66 216 260,234 - 8403 - 1,176 - - 28,969 269,879 29,185 9,057 3,440 126,255 64,429 5,708 18,522 9,176 5,624 75,175 64,712 42,785 - 18,934 15,134 15,566 11,662 79,741 73,052 1,962 594 2,057 1,728
	386,416 258,897

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Dart Mining NL

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

4. EXPLORATION AND EVALUATION ASSETS

Balance at the beginning of the period Costs for the period Exploration costs written off Balance at the end of the period	Consolidated Group December 2021 June 2021 $ $ 12,406,739 9,475,144 1,268,382 2,931,595 - - 13,675,121 12,406,739

Ultimate recovery of deferred exploration and evaluation costs is dependent upon the success of the Pre-feasibility Study, exploration and evaluation or sale or farm-out of the exploration interests. A percentage of the Managing salary and assoc directly relating to Pre-feasibility and exploration. Namely, the Company has four cost centres, Corporate, Prefeasibility Study, Research and Development and Exploration. Where identifiable, costs associated with the Prefeasibility Study and Exploration cost centres are capitalised. These costs are annually reviewed for impairment and a charge is made directly to the Income Statement of the Company when an impairment is identified.

5. ISSUED CAPITAL

Issued Capital Movements in ordinary shares on issue At 1 July 2020 Share issue transaction costs net of capital raising costs At 30 June 2021 Share placement issue Capital raise costs At 31 December 2021	Consolidated Group December 2021 June 2021 $ $ 33,002,635 25,891,124 No. $ 74,959,107 25,891,124 24,986,369 4,630,379 99,945,476 30,521,503 24,545,454 2,700,000 - (218,868) 124,490,930 33,002,635

Unlisted Options

At the end of the half year, there were 32,856,369 (2020: 35,556,369) unlisted options on issue

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Exercise price
Securities Expiry date Number
(cents)
Unlisted 28 March 2022 1,250,000 40
Unlisted 5 May 2022 1,250,000 30
Unlisted 5 May 2022 1,250,000 40
Unlisted 30 June 2022 2,620,000 8
Unlisted 30 June 2022 26,486,369 30
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Dart Mining NL

Performance Rights

At the end of the half year, there were 2,550,000 (2020: nil) performance rights on issue

Grant date	Number	Expiry date	Vesting Date	Exercise price	Performance condition
11 Feb 2021	850,000	11 Feb 2024	Vested	$nil	2000 metres of drilling before 31 Dec 2020
11 Feb 2021	850,000	11 Feb 2024	15/9/23	$nil	60 cent share price for 15 days prior to 15 Sept 2023
11 Feb 2021	850,000	11 Feb 2024	31/12/23	$nil	30,000 metres drilling before 31 Dec2023

6. COMMITMENTS AND CONTINGENCIES

In addition to the commitments disclosed in the June 2020 Financial Report, the Group notes the changes to the following expenditure commitments during the six months ended 31 December 2020.

	December 2021	June 2021
Minimum exploration commitments	29,415,044	30,011,811

The exploration commitment can decrease owing to time reduction of permits maintained by the Group.

7. OPERATING SEGMENTS

of assets, either singularly or in aggregate. Internal monthly management reports managing director business segment and therefore operating results and financial information are not separately disclosed in this note.

8. FAIR VALUE

In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation techniques to measure the fair value of the asset or liability. The Group selects a valuation technique that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or liability being measured. The market approach is the valuation technique selected by the Group. This valuation technique uses prices and other relevant information generated by market transactions for identical or similar assets or liabilities. The carrying value in the Statement of Financial Position is the same as fair value for all monetary assets and liabilities.

9. EVENTS AFTER THE END OF THE INTERIM PERIOD

The Directors are not aware of any significant events since the end of the interim period.

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Dart Mining NL

In accordance with a resolution of the Directors of Dart Mining NL, the directors of the Company declare that:

1. The financial statements and notes, as set out on pages 7 to 13 are in accordance with the Corporations Act 2001, and

2. a. comply with Australian Accounting Standard AASB 134: Interim Financial Reporting; and

3. b. give a true and fair view of the financial position as at 31 December 2021 and of the performance for the half-year ended on that date.

4. In the Directors opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable

Signed in accordance with the resolution of the Directors made pursuant to section 303(5) of the Corporations Act 2001.

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James Chirnside Chairman / Managing Director

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Luke Robinson Non-Executive Director

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Carl Swensson Non-Executive Director

Melbourne 15[th] March 2022

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF DART MINING NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Dart Mining NL (the Entity), which comprises the consolidated statement of financial position as at 31 December 2021, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the Directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Entity is not in accordance with the Corporations Act 2001 including:

• i. giving a true and fair view of the Entity’s financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and

• ii. complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

Directors’ Responsibility for the Half-Year Financial Report

The Directors of the Entity are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the Directors' determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Entity's financial position as at 31 December 2021 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of the Entity, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

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MORROWS AUDIT PTY LTD

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I.L. JENKINS

Director

Melbourne: 15[th] March 2022