DART MINING NL — Regulatory Filings 2012

Mar 4, 2012

DART MINING NL AND CONTROLLED ENTITIES ABN 84 119 904 880 Interim Financial Report for The Half-Year Ended 31 December 2011

DART MINING NL AND CONTROLLED ENTITIES

ABN: 84 119 904 880

Interim Financial Report For The Half-Year Ended 31 December 2011

CONTENTS	Page
Directors' Report	1
Auditor's Independence Declaration	7
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	10
Consolidated Statement of Cash Flows	11
Notes to the Consolidated Financial Statements	12
Directors' Declaration	15
Independent Auditor's Review Report	16

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES DIRECTORS' REPORT

The Directors of Dart Mining NL submit herewith the financial report of Dart Mining NL and its subsidiary (the Group) for the half- year ended 31 December 2011. In order to comply with the provisions of the Corporation Act 2001, the Directors report as follows:

The names of the Directors of the Group during or since the end of the half year are:

Christopher J Bain Dean G Turnbull Lindsay J Ward Richard G Udovenya Stephen G Poke

Review of Operations

During the half-year ended 31 December 2011, the Company announced its maiden JORC Indicated and Inferred Resource, the main focus of the Company's activities for the reporting period. Not withstanding the Company also pursued exploration of its remaining tenements and was active in securing further tenements to add to its portfolio (refer to pages 2 to 6 for a comprehensive review).

Capital Raising

During the half-year ended 31 December 2011, the Company raised \$2,159,299 through the issue of 30,632,841 fully paid ordinary shares. \$554,819 was raised through a Share Purchase Plan during August 2011, a further \$550,000 was raised from a private placement, also during August 2011 and \$1,054,480 was raised from the exercise of the Company's listed options which expired on 31 December 2011. The Company's listed options were underwritten by Bell Potter Securities Limited (Bell Potter) and the shortfall was allocated to them under the terms of the option underwriting agreement during January 2012, refer to note 6 for further details.

Financial Position

The net assets and cash reserves of the Group as at 31 December 2011 were \$8,520,230 and \$1,916,544 respectively. The Company's financial position is largely attributed to the successful capital raisings that were completed during the reporting period. The Board continues to maximise the return on the Group's funds by investing surplus funds and minimising expenditure on corporate overheads in order to pursue its exploration program and the Unicorn project.

Auditor's Independence Declaration

The auditor's independence declaration for the half-year ended 31 December 2011 has been received and can be found on page 7 of the half-year Financial Report.

Signed in accordance with a resolution of directors made pursuant to s306(3) of the Corporation Act 2011.

On behalf of the Directors

Christopher J Bain

Director

Melbourne, 01 March 2012

Level 2, 395 Collins Street Melbourne VIC 3000 T (03) 9621 1299 F (03) 9620 0070 E info@dartmining.com.au www.dartmining.com.au

Review of Operations

Highlights

• ⁿ Third diamond drilling program completed at Unicorn that confirmed the presence of three high grade stacked molybdenum horizons;
• ⁿ Maiden Unicorn JORC Resource announced Indicated + Inferred;
• ⁿ Scoping level study metallurgical report completed;
• ⁿ Regional exploration confirms further potential within the Unicorn-Morgan corridor;
• ⁿ Dart Mining receives community support for its plans at Unicorn;
• ⁿ \$2 million cash at bank as at 31 December 2011.

Maiden unicorn JORC resource – Indicated + Inferred announced – October 2011

After a number of years of exploration it is gratifying to have formally declared Indicated and Inferred Resources for Dart Mining's Unicorn project. The initial Indicated Resource from surface to some 250m depth for the M1 & M2 Grade Zones is 29 million tonnes with a Molybdenum equivalent (MoEq) grade of 0.09% (refer Table 1). Tonnages are expected to increase considerably with further infill drilling planned for early in 2012. This work was carried out by Dart Mining in conjunction with AMC Consultants Pty Ltd (AMC) and reported in accordance with the JORC Code.

The Total Resource of 105 million tonnes with a Molybdenum equivalent grade of 0.07% is better than many other Australian Moly explorers and remains open at depth below 450 metres. This means the potential for substantially increased resource tonnes particularly when you compare Unicorn to similar deposits such as the Henderson mine in Colorado USA which shows increasing resource grades with depth (refer Figure 1 below). Hole 8 was the first hole drilled at depth through the middle of the Unicorn deposit and intersected 40m @ 0.09% MoEq including a zone of 18m @ 0.12% MoEq – this hole ended in mineralisation.

Photograph 1 DUNDD008 Average Mo grade of 0.08% over a 40 metre intersection (348 – 387.9m). Visible molybdenum mineralisation (blue veins) in dense quartz stock work veins which is typical of the high grade Mo intersection

Photograph 2 DUNDD008 Example of strong coarse molybdenite mineralisation in quartz stock work veining – (2m @ 0.3% Mo and 29.1 g/t Ag – 368 -370m)

A summary of the Resource Estimation Procedure can be found on the Dart Mining website www.dartmining.com.au, along with the full AMC Pty Ltd Resource Estimation report.

JORC CLASSIFICATION	TONNAGE (Mt)	Mo Cutoff ppm)	Mo (ppm)	Cu (ppm)	Ag (g/t)	Mo Eq1 (ppm)
INDICATED	29	200	500	900	4.2	900
INFERRED	76	200	350	450	2.7	570
TOTAL	105	200	400	570	3.1	670

Table 1: Unicorn Mineral Resource Summary (October 2011)

Variables and factors that influence Table 1

• ⁿ MoEq1 (Molybdenum Equivalent) = Mo + Cu/3.65 + Ag x36.4 (assumes equal metallurgical recovery for each metal) – see Note 1 below.
• ⁿ Estimated by ordinary kriging on 50 x 50 x 50m blocks at 200ppm Mo Cutoff grade (Cutoff considered to represent a level at which the combined value of recoverable metals clearly shows reasonable prospects for eventual economic extraction. Top Cutting has been applied to high grade drill intersections at different values for each metal, such that grades utilised in the Resource do not rise above the following upper limits:
• ^o Molybdenum Cutoff: 3000ppm (0.3% Mo). Maximum value in drill hole samples 6260ppm Mo
• ^o Copper Cutoff: 5300ppm (0.53% Cu). Maximum value in drill hole samples 10,300ppm Cu
• ^o Silver Cutoff: 40ppm (40 g/t Ag). Maximum value in drill samples 170g/t Ag
• ⁿ Only the M1 and M2 mineralised zones are reported within the Indicated Resource.
• ⁿ Specific Gravity assigned by lithology. Silica Cap 2.72 g/cm³ and Quartz Feldspar Porphyry / Porphyry Breccia 2.67 g/cm3 and Polymict Breccia 2.73 g/cm3 based on 14 samples representative of each style of lithology / mineralisation estimated in the Resource.

Note 1: Molybdenum Equivalent Assumptions: Based on relative value (with reference to the average price) of each metal in the 3 months 1st July to 30th September 2011 listed on the LME for Molybdenum and Copper and average price for the same period for Silver as follows:

• ⁿ Mo US\$33,127.27 per tonne
• ⁿ Cu US\$9061.32 per tonne
• ⁿ Ag US\$38.90 per ounce

The Molybdenum Equivalent grade should not be interpreted as actual molybdenum grade as the conversion ratios vary with the volatile prices of Mo, Cu and Ag. However, it is the Company's opinion that elements considered here have a reasonable prospect to be recovered.

Figure 1.

Unicorn Mineral Resource (Left) showing the 5,978,100mN cross section with the M1, M2 and M3 Grade Zones highlighted within the host quartz feldspar porphyry. Also defines the Indicated Mineral Resource area (M1 & M2) from surface to 600m RL (approximately 250m below surface) and the Inferred Mineral Resource between 600 mRL and 400 mRL (approximately from 250m to 450m below surface). The conceptual Henderson style Target associated with multiple intrusive centres is also illustrated. The Henderson Mine Geological cross section (Right) at the same scale is shown for comparison (Modified composite section compiled from: Wallace 1978- 1995, Seedorf & Einaudi 2004 and Banks 2009.

Further grade and tonnage potential

The initial Resource estimated for the Unicorn deposit is interpreted to represent only the upper limits of a very large intrusive porphyry system which has already shown multiple stacked high grade molybdenum zones (M1, M2 and M3) which are typical of these large mineralised porphyry systems. Unicorn is comparable to a style of deposit that typically shows economic mineralisation extending well below 1000m depth. A series of deeper diamond drill holes are being planned to test the system below 450m in 2012.

Limited exploration drilling has extended outside the porphyry contacts to date, however surface geochemistry and drilling has already highlighted significant Mo, Cu and Ag grades in the mineralised wall rocks and southern breccia zone. This mineralised zone has not been included in the Indicated or Inferred Resource as yet.

Further drilling will start to define the extent of the mineralisation surrounding the main porphyry with the intent to include this material in future updates to the Resource.

Dart Mining is confident there is far more to be discovered at Unicorn in the near future.

Board visits Unicorn in 2011. Left-Right: Chris Bain, Lindsay Ward, Dean Turnbull, Richard Udovenya.

Metallurgical report improves Unicorn development potential – November 2011

Dart Mining is very pleased with recent test results from a metallurgical scoping study carried out by Minmet Metallurgical Laboratories Pty Ltd (AMML). The test work is ongoing however a summary report has been received from AMML that highlights:

• ⁿ The two representative ore samples utilised were very amenable to high Mo and Cu recoveries by flotation with recoveries of up to 92.3% Mo / 96.1% Cu / Ag 82.6% achieved
• ⁿ Mo and Cu are two distinctly separate phases, both are relatively coarse and not mineralogically linked in any way
• ⁿ Reagent suite for Mo and Cu flotation was simple and relatively inexpensive
• ⁿ Grind size of 75 microns was used to achieve these recoveries. This is a typical grind size but a coarser grind, while maintaining high metal recoveries, appears achievable
• ⁿ Saleable grades of Mo and Cu / Ag concentrates were produced and with further test work it is expected that the metal percentages (especially Cu) can be improved
• ^o 51% Mo metal in concentrate
• ^o 23% Cu metal in concentrate plus Ag
• ⁿ Ore was indicated to be amenable to upgrading by dense media separation.

Based on this initial scoping study metallurgical test work and the JORC resource, the Unicorn deposit is estimated to contain approximately 38,000 tonnes of recoverable Mo metal, 58,000 tonnes of recoverable Cu metal and 8.6 million ounces of recoverable Ag metal.

Bell Potter Securities underwrites exercise of listed options – October 2011

Dart Mining entered into an agreement with Bell Potter Securities Limited (Bell Potter) in October, whereby Bell Potter agreed to underwrite any of the short fall (i.e. where shareholders choose not to exercise the options themselves) in the remaining Listed Options in Dart Mining that are exercisable at \$0.10, expiring on 31st December 2011. The Underwriting Agreement with Bell Potter was on usual and customary terms including an underwriting fee of 5.00% and, subject to the terms of that agreement, will guarantee the receipt of approximately \$1.54 million for further exploration.

It isn't easy for exploration companies to raise capital so having a broker with the reputation, size and reach of Bell Potter to back our vision and underwrite the listed options is a very strong vote of confidence in Dart Mining and its projects.

The final outcome of the capital raising is documented elsewhere in the interim financial report.

Dart Mining successfully raises \$1.1 million – August 2011

Dart Mining successfully raised \$1.1 million through the issue of 10.9 million fully paid ordinary shares at 5.5 cents per share under its Share Purchase Plan (SPP) and by the placement of 10.0 million fully paid ordinary shares at 5.5 cents per share to sophisticated investors in Australia and overseas.

Along with the company's loyal shareholders, Dakota Corporation (a Singapore and UK-based private wealth management company) and Mr Wes Maas (owner of the NSW-based Maas Group – a major supplier of plant and equipment to infrastructure and mining projects throughout the eastern seaboard www.maasgroup.com.au) have all shown their confidence in the Unicorn Project by investing significantly in this round of capital raising.

Media Spotlight on Dart Mining – September 2011

Journalists from Channel 7, AFR, BRW and The Australian attended a site visit hosted by Dart Mining on the 8th September, along with key personnel from Bell Potter Securities and Paterson Stockbroking.

The site visits are a very good way to clearly demonstrate the benefits of Unicorn other than grade and tonnes as visitors are able to clearly understand the advantages that Unicorn has over other similar projects due to the availability of key infrastructure (renewable power, water and roads) the support Dart Mining has within the community and the benefits of having an outcropping deposit which could be extracted through open cut mining all within 20 kilometres of an established rural community with an available workforce.

Resulting from this site visit, Dart Mining figured prominently in a Channel 7 evening news article on Corryong and was rated a speculative buy by Criterion in the Australian on 9th September. To view all press resulting from the visit, please refer to the Dart Mining website:

http://www.dartmining.com.au/investor-centre/media-centre

Community Meeting in Corryong – July 2011

Dart Mining held a community meeting in Corryong on the evening of Wednesday 13 July 2011 to inform the local community about Dart Mining's progress towards a maiden JORC resource which may result in a mine being established at Mt Unicorn within the next 5 years.

About 110 local residents (10% of the population of Corryong) including Towong Shire Mayor and CEO met with Dart Mining representatives, including Chairman Chris Bain and Managing Director Lindsay Ward.

Dart Mining was very pleased with the size of the turn out and the over whelming support the community gave to the concept of a mine at Mt Unicorn, subject to the project receiving the necessary approvals and Dart Mining continuing to meet with and consider community concerns.

New core facility (at the Innovation Park) and office in Corryong.

Regional exploration exposes further potential within the Unicorn-Morgan corridor – November 2011

Dart Mining's exploration team has worked together with an independent Consulting Geologist to carry out a comprehensive review of its most recent regional exploration program, along with historical geochemistry, mining records and aerial geophysics data. This has enabled a complete reassessment of the prospectivity of Dart Mining's tenements in NE Victoria to be carried out and will ensure future exploration is better targeted.

Peer review has confirmed the highly prospective nature of the Unicorn – Morgan structural corridor (refer diagram below). The targets along these structural corridors are in addition to Dart Mining's principle project, the Unicorn Mo + Cu + Ag deposit, as well as the previously identified Morgan porphyry project. In addition to these two out-cropping mineralised porphyries the stream sediment sampling program identified Cu + Pb + Zn anomalies around the Dart Pluton String, which may represent additional mineralised porphyry opportunities.

The interpretation of the geochemical and geophysical dataset over the northern half of the tenements, a review of the Morgan Porphyry prospect geochemical signature suggests that previous drilling has only passed through the upper part of an extensive mineralised system. A 3 km by 2 km soil grid across Morgan has shown extensive anomalous zones of Tin, Bismuth and Tellurium (in addition to Mo / Cu / Ag / Au) which are known, world-wide markers. For comparison the Unicorn and Morgan geochemical grids are presented below at the same scale.

The Unicorn – Morgan structural corridor contains a number of unexplored topographic highs and multiple discrete spot magnetic highs that offer the greatest probability for further discoveries of other mineralised porphyritic stocks similar and in close proximity to Unicorn. Dart is currently evaluating the application of a heli-borne, geophysics survey over an area covering approximately 18 kilometres by 10 kilometres (corresponding with the Unicorn – Morgan Corridor).

The geochemical and historical data review also re-confirmed the potential of the North Mammoth project in the very south of Dart Mining's tenements. Drilling intersected the porphyry below a major regional thrust fault, indicating the system continues into the tenement toward a further target area known as Donovan's Hill. Historic diamond drilling into the Mammoth Porphyry to the south intersected some 74m @ 0.44 g/t Au (hole B6) with additional zones of significant Ag, Cu and Zn. Dart Mining rates this as warranting further exploration.

A gold anomaly has been identified around the Cattlemen's Creek area, the source of which is not yet known. The highly anomalous bulk leach extractable gold (BLEG) sample yielded a result of 156ppb Au, where 10 ppb normally warrants further investigation. Historically there is no reference to mining around the Cattleman's creek area. This anomaly will be further explored in coming months. Stream sediment sampling has proven to be an excellent regional exploration tool, it is recommended that the southernmost portions of ELs 4726 and 5132 are covered with BLEG gold and multielement stream sediment sampling.

The nature of Climax style porphyry intrusives is that they typically occur in clusters with fingers of igneous rock (porphyry) pushing up from the more deeply buried magma chamber, some of which are expressed on surface like Unicorn and Morgan whilst others remain hidden below the surface as "blind deposits" and as such do not express a geochemical footprint that can be identified by regional scale stream sediment sampling.

Competent Person Statement

Information in this report that relates to a statement of Exploration Results and Mineral Resources of the Company is based on information compiled by Dean Turnbull B.App.Sc.(Geol) Hons. M. AIG. Mr Turnbull is a Director and full time employee of Dart Mining NL and has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity he has undertaken to qualify as a competent person as defined in the Edition of the Australasian Code for Reporting of Mineral Resources and Ore Reserves" (or "JORC Code"). Mr Turnbull has provided written consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Level 2 108 Power Street Hawthorn Victoria Australia

$T + 61398194011$ F +613 9819 6780 W raggweir.com.au E info@raggweir.com.au

Postal Address: PO Box 325 Hawthorn Victoria 3122

AUDITOR'S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF DART MINING NL AND CONTROLLED ENTITIES

I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2011 there have been:

• no contraventions of the auditor independence requirements as set out in the Corporations $(i)$ Act 2001 in relation to the review; and
• no contraventions of any applicable code of professional conduct in relation to the review. $(ii)$

MET RapaWei

MSI RAGG WEIR Chartered Accountants

Sulare.

L. S. WONG Partner

Melbourne: 01 March 2012

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Consolidated Group
	31 December 2011	31 December 2010
	\$	\$
Revenue	36,038	12,091
Exploration costs written off	(7,781)	(7,593)
Employment related costs	(333,710)	(296,027)
Professional fees	(148,234)	(42,476)
Depreciation expenses	(166)	(3,254)
Office expenses	(17,647)	(8,808)
Administration expenses	(53,634)	(74,287)
Travel expenses	-	(13,060)
Other expenses	(37,620)	(8,741)
Loss before income tax	(562,754)	(442,155)
Income tax expense Loss for the period	-	-
	(562,754)	(442,155)
Other comprehensive income:
Other comprehensive income	-	-
Other comprehensive income for the period, net of tax	-	-
Total comprehensive income for the period	(562,754)	(442,155)
Total comprehensive income attributable to:
Members of the parent entity	(562,754)	(442,155)
Non-controlling interest	-	-
	(562,754)	(442,155)
Earnings per share
From continuing operations
Basic earnings per share (cents)	(0.42)	(0.49)
Diluted earnings per share (cents)	(0.39)	(0.49)

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

	Consolidated Group
	31 December 2011	30 June 2011
	\$	\$
ASSETS
CURRENT ASSETS
Cash and cash equivalents	1,916,544	1,096,081
Trade and other receivables	49,618	45,529
Prepayments	9,340	17,485
TOTAL CURRENT ASSETS	1,975,502	1,159,095
NON-CURRENT ASSETS
Other receivables	90,505	48,000
Property, plant and equipment	61,813	74,973
Deferred exploration and evaluation costs	6,577,556	5,898,385
TOTAL NON-CURRENT ASSETS	6,729,874	6,021,358
TOTAL ASSETS	8,705,376	7,180,453
LIABILITIES CURRENT LIABILITIES
Payables	165,233	402,296
Provisions	19,913	33,312
TOTAL CURRENT LIABILITIES	185,146	435,608
TOTAL LIABILITIES	185,146	435,608
NET ASSETS	8,520,230	6,744,845
EQUITY COMPANY INTEREST
Issued capital	12,150,934	9,812,795
Reserves	75,642	75,642
Accumulated losses	(3,706,346)	(3,143,592)
TOTAL EQUITY	8,520,230	6,744,845

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Ordinary Share Capital	Share-based Payment Reserves	Accumulated losses	Total
Consolidated Group	\$	\$	\$	\$
Balance at 1 July 2010	7,984,615	231,310	(2,848,514)	5,367,411
Loss for the period	-	-	(442,155)	(442,155)
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	-	-	(442,155)	(442,155)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period	1,000,000	-	-	1,000,000
Capital Raising Costs	(68,235)	-	-	(68,235)
Options issued	-	31,450	-	31,450
Total transactions with owners and other transfers	931,765	31,450	-	963,215
Balance at 31 December 2010	8,916,380	262,760	(3,290,669)	5,888,471
Balance at 1 July 2011	9,812,795	75,642	(3,143,592)	6,744,845
Loss for the period	-	-	(562,754)	(562,754)
Other comprehensive income for the period	-	-	-	-
Total comprehensive income for the period	-	-	(562,754)	(562,754)
Transactions with owners, in their capacity as owners, and other transfers
Shares issued during the period	2,379,299	-	-	2,379,299
Capital raising costs	(41,160)	-	-	(41,160)
Option rights issued	-	220,000	-	220,000
Option rights exercised	-	(220,000)	-	(220,000)
Total transactions with owners and other transfers	2,338,139	-	-	2,338,139
Balance at 31 December 2011	12,150,934	75,642	(3,706,346)	8,520,230

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

	Consolidated Group 31 December 2011 \$	31 December 2010 \$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received	28,788	12,870
Payments to suppliers and employees	(484,232)	(410,312)
Net cash provided by/(used in) operating activities	(455,444)	(397,442)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration	(825,891)	(661,796)
Purchase of property, plant and equipment	(16,340)	(3,870)
Net cash provided by/(used in) investing activities	(842,231)	(665,666)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares	2,159,299	1,000,000
Payments for capital raising costs	(41,161)	(73,626)
Net cash provided by/(used in) financing activities	2,118,138	926,374
Net increase(decrease) in cash held	820,463	(136,734)
Cash and cash equivalents at beginning of the period	1,096,081	1,186,319
Cash and cash equivalents at end of the period	1,916,544	1,049,585

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Note 1 Summary of Significant Accounting Policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 'Interim Financial Reporting'. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. The halfyear financial report does not include all the notes of the type usually included in an annual financial report. It is recommended that this financial report be read in conjunction with the financial report for the year ended 30 June 2011 and any public announcements made by the Company since 30 June 2011 in accordance with any continuous disclosure obligations arising under the Corporations Act 2001.

Basis of 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.

The Group has adopted all new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations. The adoption of these Standards has not resulted in any restatement to the results of previous periods presented.

Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements, except in relation to the matters discussed below.

Critical Accounting Estimates and Judgments

The critical estimates and judgments are consistent with those applied and disclosed in the June 2011 annual report, except in relation to the following matter:

Impairment – carbon price

There is presently uncertainty in relation to the impacts of the carbon pricing mechanism recently introduced by the Australian Government. This carbon pricing system could potentially affect the assumptions underlying value-in-use calculations used for asset impairment testing purposes. The consolidated entity has not incorporated the effect of any carbon price implementation in its impairment testing at 31 December 2011.

(a) Exploration and Development 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 an abandoned area are written off in full against profit 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 are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to capitalise costs in relation to that area of interest.

(b) Government Grants

Government grants are not recognised until there is reasonable assurance that the Group complies with the attached conditions and that the grant will be received.

Government grants that are conditional on costs already incurred or receivable for the purpose of giving financial support to the Group with no future related costs are recognised as revenue in the period they become receivable.

Government grants conditional on the completion of projects relating to identifiable area of interest are recognised as a reduction in the accumulated costs of the area in the statement of financial position.

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

(c) New and Revised Accounting Requirements Applicable to the Current Half-year Reporting Period

For the half-year reporting period to 31 December 2011, a number of new and revised Accounting Standard requirements became mandatory for the first time, some of which are relevant to the Group. A discussion of these new and revised requirements that are relevant to the Group is provided below:

– AASB 124: Related Party Disclosures (December 2009)

AASB 124 (December 2009) introduces a number of changes to the accounting treatment of related parties compared to AASB 124 (December 2005, as amended), including the following:

• The definition of a "related party" is simplified, clarifying its intended meaning and eliminating inconsistencies from the definition, including:
• the definition now identifies a subsidiary and an associate with the same investor as related parties of each other;
• entities significantly influenced by one person and entities significantly influenced by a close member of the family of that person are no longer related parties of each other;
• the definition now identifies that, whenever a person or entity has both joint control over a second entity and joint control or significant influence over a third party, the second and third entities are related to each other; and
• the definition now clarifies that a post-employment benefit plan and an employer sponsor of such a plan are related parties of each other.
• A partial exemption is provided from the disclosure requirements for government-related entities. Entities that are related by virtue of being controlled by the same government can provide reduced related party disclosures.

Application of AASB 124 (December 2009) did not have a significant impact on the financial statements of the Group.

– AASB 2010–4: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13]

This Standard details numerous non-urgent but necessary changes to Accounting Standards arising from the IASB's annual improvements project. Key changes include:

• clarifying the application of AASB 108 prior to an entity's first Australian-Accounting-Standards financial statements;
• adding an explicit statement to AASB 7 that qualitative disclosures should be made in the context of the quantitative disclosures to better enable users to evaluate an entity's exposure to risks arising from financial instruments;
• amending AASB 101 to clarify that disaggregation of changes in each component of equity arising from transactions recognised in other comprehensive income is required to be presented, but is permitted to be presented in the statement of changes in equity or in the notes;
• adding a number of examples to the list of events and transactions that require disclosure under AASB 134; and
• making sundry editorial amendments to various Standards and Interpretations.

Application of the amendments in AASB 2010–4 did not have a significant impact on the financial statements of the Group.

– AASB 1054: Australian Additional Disclosures and AASB 2011–1: Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project [AASB 1, AASB 5, AASB 101, AASB 107, AASB 108, AASB 121, AASB 128, AASB 132 & AASB 134 and Interpretations 2, 112 & 113]

AASB 1054 sets out the Australian-specific disclosures that are additional to IFRS disclosure requirements.

The disclosure requirements in AASB 1054 were previously located in other Australian Accounting Standards.

Application of AASB 1054 did not have a significant impact on the financial statements of the Group.

Note 2 Dividends

No dividends have been paid, declared or recommended for payment.

Note 3 Issuances, repurchases and repayments of equity securities

During the half-year ended 31 December 2011, the Company issued 10,088,014 fully paid ordinary shares for a consideration of \$554,819 through a Share Purchase Plan, 10,000,000 fully paid ordinary shares for a consideration of \$550,000 through a private placement and 10,544,827 for a consideration of \$1,054,480 via the exercise of the Company's formally listed options.

In addition, the Company granted 2,000,000 incentive rights, following share holder approval of the Company's Incentive Rights Plan, to its Managing Director. Each incentive right on exercise carries the right to one fully paid ordinary share in Dart Mining NL. The incentive rights were exercised in October 2011 and 2,000,000 fully paid ordinary shares were issued with a fair value at grant date of \$0.11 per share totalling \$220,000.

The Company had 15,584,621 listed options on issue during the reporting period. These listed options had an expiry of 31 December 2011. During the reporting period option holders exercised 10,544,827 listed options. The remaining balance of 5,039,794 was allocated and subsequently exercised by Bell Potter under the terms of the option underwriting agreement entered into with the Company. At 31 December 2011 no listed options remained on issue.

The Company issued 3,350,000 options with an expiry of 31 December 2013 and a exercise price of \$0.15 in lieu of fees for corporate services provided to the Company. These options are not listed.

There were no other movements in the ordinary share capital or other issued share capital of the company in the current reporting period.

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Contingencies and commitments Note 4

No contingent liabilities or assets existed at the date of this report except under tenement licences in Victoria where the company is required to rehabilitate each licence area to its original state subsequent to any exploration works.

Under the terms of the exploration tenement licences held by the Company, the Company has a commitment to meet a minimum expenditure requirement in order to keep its rights current. The minimum expenditure requirement is not recognised as a liability in the statement of financial position of the Company as the Company may relinquish its right to a particular tenement thereby removing the requirement to meet the minimum expenditure requirement.

\$

Exploration expenditure as at 1 July 2011	1,510,000
Less: exploration expenditure during the 6 months ended 31 December 2011	(686,952)
Committed at the reporting date but not recognised as liabilities	823,048

Note 5 Segment Information

The Group's activities consist of base metal and gold exploration currently in one geographic region, North-East Victoria. There are no other significant classes of business, either singularly or in aggregate. Internal monthly management reports are provided to the Group's Managing Director that consolidate operations in one segment. Therefore the Group's activities are classed as one business segment and therefore operating results and financial information are not separately disclosed in this note.

Note 6 Events After the Reporting Period

As previously announced on 26 September 2011, Bell Potter entered into an underwriting agreement with the Company whereby Bell Potter agreed to underwrite the 15,422,121 listed options exercisable at 10 cents that were on issue at the date of the Company entering into the agreement. The options not exercised by optionholders ("shortfall") was 5,039,794. Bell Potter made valid applications in January 2012 for this shortfall under the terms of the underwriting agreement, resulting in 5,039,794 fully paid ordinary shares being issued to Bell Potter, raising a further \$503,979 before expenses.

The Directors are not aware of any other events subsequent to the reporting period.

Note 7 Related Party Transactions

• (a) The Company's main related parties are as follows:
• (i) Key Management Personnel:

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key management personnel.

(ii) Other Related Parties

Other related parties include entities controlled by the ultimate parent entity and entities over which key management personnel exercise significant influence.

(b) Transactions with related parties:

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

		31 December 2011 \$	31 December 2010 \$
	(i) Director related Company
	- Remuneration paid to Mr Richard Udovenya is paid to ResourcesLaw International, of which Mr Udovenya is a partner.	25,483	6,745
	- Remuneration paid to Mr Dean Turnbull is paid to North East Geological Contractors Pty Ltd, a Company of which Mr Turnbull is a director and shareholder.	13,500	13,500
	- Remuneration paid to Mr Andrew Draffin is paid to Draffin Walker & Co., a Company of which Mr Draffin is a director and shareholder.	14,000	-
	(c) Amount due to related parties as at 31 December 2011.
	ResourcesLaw International	-	8,640
	Draffin Walker & Co.	11,000	7,000

DART MINING NL ABN: 84 119 904 880 AND CONTROLLED ENTITIES DIRECTORS' DECLARATION

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 8 to 14, are in accordance with the Corporations Act 2001 including:
• (a) complying with Accounting Standard AASB 134: Interim Financial Reporting; and
• (b) giving a true and fair view of the consolidated entity's financial position as at 31 December 2011 and of the performance for the half-year ended on that date.
• 1. 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 a resolution of the Directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors

Christopher J Bain Director Melbourne 01 March 2012

Level 2 108 Power Street Hawthorn Victoria Australia

T +613 9819 4011 F +613 9819 6780 W raggweir.com.au E info@raggweir.com.au

Postal Address: PO Box 325 Hawthorn Victoria 3122

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF DART MINING NL AND CONTROLLED ENTITIES

Report on the Half-year Financial Report

We have reviewed the accompanying half-year financial report of Dart Mining NL and controlled entities (the group), which comprises the consolidated statement of financial position as at 31 December 2011, the consolidated statement of comprehensive income, consolidated statement of changes in equity, the 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.

Directors' Responsibility for the Half-Year Financial Report

The directors of Dart Mining NL and controlled entities 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 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 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 interim and other financial reports 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 half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of Dart Mining NL and controlled entities' financial position as at 31 December 2011 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 Dart Mining NL and controlled entities, 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 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.

Level 2 108 Power Street Hawthorn Victoria Australia

T +613 9819 4011 F +613 9819 6780 W raggweir.com.au E info@raggweir.com.au

Postal Address: PO Box 325 Hawthorn Victoria 3122

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF DART MINING NL AND CONTROLLED ENTITIES CONTINUED

Conclusion

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 Dart Mining NL and controlled entities is not in accordance with the Corporations Act 2001 including:

• giving a true and fair view of Dart Mining NL and controlled entities' financial position as $(i)$ at 31 December 2011 and of its performance for the half-year ended on that date; and
• complying with AASB 134: Interim financial reporting and the Corporations Regulations $(ii)$ 2001.

MESI Rapy Vei

MSI RAGG WEIR Chartered Accountants

L.S. WONG Partner

Melbourne: 01 March 2012