DYNAMIC METALS LIMITED

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ABN 37 659 154 480 ANNUAL FINANCIAL REPORT 30 JUNE 2023

dynamicmetals.com.au

CORPORATE DIRECTORY

Board and Management

Justin Mannolini Non-Executive Chairman Lindsay Dudfield Non-Executive Director Karen Wellman Managing Director & Chief Executive Officer Nerida Schmidt Company Secretary

Registered Office & Principal Place of Business

Level 1 33 Richardson Street West Perth, WA 6005

PO Box 247 West Perth WA 6872

Telephone: +61 (8) 6558 0637 Email: [email protected] Web: www.dynamicmetals.com.au

Auditors

Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco, WA 6008

Legal Advisors

Hamilton Locke L27, 152-158 St Georges Terrace Perth, WA 6000

Share Registry

Automic Group Level 5, 191 St Georges Terrace Perth, WA 6000 Telephone: +61 (2) 9698 5414

Securities Exchange Listing

The Company is listed on:

The Australian Securities Exchange Ltd (“ASX”) Home Exchange: Perth, Western Australia ASX Code: DYM

CONTENTS

DIRECTORS’ REPORT ........................................................................................................................................... 3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........................... 26 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ................................................................................... 27 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................................... 28 CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................ 29 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................................... 30 DIRECTORS’ DECLARATION ............................................................................................................................... 52 AUDITOR’S INDEPENDENCE DECLARATION...................................................................................................... 53 INDEPENDENT AUDITOR’S REPORT .................................................................................................................. 54

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

The Directors present their report on the consolidated entity consisting of Dynamic Metals Limited (“Dynamic” or “the Group”) and the entities it controlled at the end of, or during, the year ended 30 June 2023.

Directors

The following persons were directors of Dynamic Metals Limited [during the whole of the financial year and up to the date of this report, unless otherwise stated:

Lindsay Dudfield Karen Wellman Justin Mannolini

Principal activities

The principal activity of Dynamic Metals Limited during the year was mineral exploration in Australia. During the year there was no change in the nature of this activity.

Financial results

The consolidated loss of the Group after providing for income tax for the year ended 30 June 2023 was $838,876 (2022: loss $10,455).

Dividends

No dividends have been declared since the end of the previous financial year and no dividends have been recommended by the Directors.

Significant changes in the state of affairs

Significant changes in the state of affairs of the Group during the financial year were as follows.

Contributed equity increased by $8,962,294 (from $10 to $8,962,304) as a result of the Initial Public Offering (“IPO”) and spin-off from Jindalee Resources Limited (“JRL”), with Dynamic Metals Limited officially listing on the Australian Stock Exchange on 16 January 2023. Details of the changes in contributed equity are disclosed in note 14 to the financial statements.

Operations and financial review

OPERATIONS REPORT

Dynamic was listed on ASX on 16 January 2023. Dynamic’s strategy is to advance its portfolio of critical minerals projects through a systematic approach to exploration. During the period, the Group undertook exploration activities on its existing tenement holding and applied for prospective tenements in Western Australia which it will continue to explore.

The Company has had a successful first 6 months as a listed entity, commencing reverse circulation (“RC”) drilling almost immediately at the Dordie Far West (“DFW”) prospect at Widgiemooltha (refer to ASX Announcement 31 January 2023) before moving on to the aircore (“AC”) program at Lake Percy (refer to ASX Announcement 10 March 2023) (Figure 1). Three further drill campaigns were completed across Widgiemooltha for a total of 9,552m of drilling. A summary of field activities for the year can be found in Table 1 Table 1. Annual Field Activity Summary with a project location map for reference in Figure 1.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

EXPLORATION PROJECTS

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Figure 1. Map of Dynamic Metals projects in Western Australia

Project	Program	Number Completed	Metres
Widgiemooltha	AC Drilling	48	2,099
	RC Drilling	7	1,036
	Rock Chips	7	-
Lake Percy	AC Drilling	35	2,067
	RC Drilling	67	4,350
	Rock Chips	27	-

Table 1. Annual Field Activity Summary

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

WIDGIEMOOLTHA PROJECT

The Widgiemooltha Project is located approximately 550km east of Perth and centred 100km south of Kalgoorlie (Figure 1) and covers an area of 848.8km[2] . The project lies within a known corridor of world class komatiitic nickel sulphide deposits and orogenic gold deposits and historic exploration activities have been centred on these two commodities. More recently the project area has emerged as a significant lithium belt with three lithium-caesium-tantalum (“LCT”) pegmatite related mines developed in the past few years.

Dordie Far West Prospect

The Company commenced drilling at the DFW nickel prospect shortly after listing in January. DFW is located on the northwest margin of the Widgiemooltha dome on E15/1680, where anomalous nickel results were detected in RC drilling completed by Mincor Resources Limited (ASX: MCR) (“Mincor”) in the late 2000s (refer to Dynamic Metals disclosure in the IPO prospectus). After review of the historic data, a drill program was designed to test for Kambalda komatiite type massive sulphide mineralisation interpreted to occur where the base of the komatiite stratigraphy is in contact with the underlying basalt, known as the ‘basal contact’.

Five RC holes were drilled in the maiden program for a total of 736m at the prospect in February 2023, with drilling undertaken on four sections over a strike length of approximately 300m (Figure 2). Importantly, the thick widths and highgrade tenor intersected in Dynamic’s drilling compare favourably with the historic drilling, confirming and enhancing the potential for significant mineralisation along this trend.

Dynamic submitted 1m samples from the significant 3m composite intercepts to the laboratory for further assaying. Results from the 1m composites are summarised in Table 2.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 2. Drill hole positions and significant results at Dordie Far West

Hole	From	To	Interval	Ni %	Comments
WDR002	27	43	16	1.96	Including 5m @ 2.94% Ni
WDR003	29	35	6	1.60
WDR003	39	45	6	1.15
WDR003	48	63	15	1.56	Including 3m @ 2.06% Ni
WDR005	30	33	3	1.45

Table 2. Significant nickel intercepts from 1m composite samples (cut off 3m >1%Ni)

The geological model for DFW was updated with the latest geochemistry results, and an additional 2 RC holes were drilled to the south-west to test for the extension of mineralisation into the fresh rock.

Higginsville, Mandilla and Sunday Soak Prospects

A rig and crew were engaged to complete an AC campaign at Widgiemooltha with 48 drill holes planned to test three prospects across the Project area (refer to ASX Announcement 16 June 2023). A total of 2,099m was drilled with a breakdown of the completed drill programs summarised in Table 3. By year end all samples had been dispatched to the laboratory in Kalgoorlie for assaying.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Prospect	Target Commodity	Holes	Metres
Mandilla	Au	16	804
Higginsville	Au	16	659
SundaySoak	Ni	16	636
Total		48	2099

Table 3. Summary of June 2023 air core drill campaign at Widgiemooltha

Highly prospective exploration tenure granted

During the year, four Exploration Licences (“Els”) at the Widgiemooltha Project were granted (refer to ASX Announcement 31 May 2023). The four ELs cover an area of approximately 220 km[2] in a region richly endowed with numerous operating nickel, gold and lithium operations (Figure 4). Importantly, Dynamic holds 100% of the mineral interests for all commodities.

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Figure 3. Plan of recently granted tenure at Widgiemooltha Project

One of the newly granted tenements, E15/1721 (“Pioneer Dome West”), is adjacent to Essential Metals’ (ASX: ESS) Dome North lithium project and covers 20km of strike along the highly prospective western side of the Pioneer Dome (Figure 4).

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Previous exploration activities were focussed on gold and nickel potential, so limited historical geochemical information on lithium and related elements exists for this tenement.

The Company intends to follow its systematic approach to exploration by first accessing the tenements to complete surface reconnaissance mapping and sampling. This will be followed by regional soil and auger programs to obtain appropriate geochemical data for target generation. Targets generated will be assessed and priority ranked for drill testing.

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Figure 4. Plan view of Widgiemooltha tenement package with nearby lithium prospects and deposits and underlying interpreted geology. Recently granted Dynamic Minerals Exploration Licenses in light blue.

During the year, Exploration Licence 15/1753 was also granted. The tenement covers a geologically complex area dominated by a major regional structural fault (Republican Thrust) running northeast to southwest, with approximately 7km of highly prospective basal contact to explore. The Company has generated three nickel targets on this tenement and Programme of Work (POW) applications for drilling have been submitted to the Department of Mines, Industry Regulation and Safety (DMIRS).

Additionally, E15/1624 and E15/1697, which were both granted in the June quarter, are adjacent to the Bluebush corridor that hosts the Cameron and Stockwell nickel deposits, held by Mincor.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

LAKE PERCY PROJECT

The Lake Percy Project is located approximately 120km to the west of Norseman, along the Hyden-Norseman Road. The Company’s tenements are centred around the northern extension of the Lake Johnston greenstone belt, which hosts the Emily Ann and Maggie Hays nickel mines and the more recent Medcalf spodumene discovery by Charger Metals. The Project is near the Mt Day LCT pegmatite field 20km to the southeast, as well as the Earl Grey Lithium Project located approximately 60km to the west (currently under development by Covalent Lithium Pty Ltd, a joint venture between subsidiaries of Sociedad Quimica y Minera de Chile S.A and Wesfarmers Limited (ASX: WES)).

In March the Company announced commencement of a large AC program of 100 holes planned for up to 6,000m of drilling (refer to ASX Announcement 10 March 2023) (Figure 5).

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Figure 5. Plan view of Lake Percy Project tenement E63/1981 with maximum nickel in historic drilling against planned first phase AC program (white). Target areas are identified by prefix “LP”

A total of 102 holes for 6,372m were completed using a combination of AC and RC on 5 identified targets (LP1, LP2, LP4, LP6, LP8). The purpose of the program was to obtain fresh rock samples for geochemical analysis and utilise the results to improve the geological understanding and refine Dynamic’s nickel sulphide targeting across the ~10km strike extent of the western ultramafic unit.

The results of the drill program have inferred a fertile nickel sulphide system at LP1 and LP2 which the Company believes warrants further drill testing. Additionally, multiple pegmatites were intersected during the drilling which the Company will integrate with its existing pegmatite dataset for the Lake Percy area and plan further exploration.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 6. Drilling at Lake Percy Project, March 2023

LP1 Target

Drilling at the previously untested LP1 target has defined an approximately 600m long anomalous trend, defined by significant nickel assays and accompany results indicative of a fertile nickel sulphide system, between the northern most and third northern most drill lines (Figure 7). The anomalous trend remains open to the north. The results from DYR032 (16m @ 1.11% Ni and 645ppm Cu from 32m downhole) are particularly encouraging due to the grade and thickness of the nickel mineralisation and the anomalous copper (Figure 8). These significant results were from the weathering profile and Dynamic has interpreted the returned geochemistry to be a nickel gossan, the fresh rock extension of which was not intersected in drilling due to a pegmatite intrusion at the bottom of the hole.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 7. Oblique sectional view with significant intercepts and interpreted geology

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 8. Plan view of drill collar positions at LP1 and significant assay results against magnetics background

LP 2 Target

Significant nickel results were also received at the LP2 target which was defined by a 1.6km magnetic feature that is interpreted to be structurally separate from LP1 to the north. The LP2 area has been subject to historic rotary air blast (“RAB”), open hole percussion, RC and diamond drilling by previous explorers with high MgO results confirming the presence of ultramafic stratigraphy.

Drilling at LP2 intersected further encouraging indications of a fertile nickel sulphide system exemplified by the fresh rock bottom hole ultramafic geology and geochemistry of drill hole DYR065, which returned 0.35% Ni, 236ppm Cu and 38% MgO with a Ni:Cr ratio of 2.3 (Figure 9). Additionally, drill holes DYR062, DYR063 and DYR064, drilled on the same line as DYR064, returned a fresh rock Ni:Cr ratio of ~5 which is a strong indicator of nickel sulphide fertility. Further drilling is required to understand the potential of the ultramafic unit to host nickel sulphides.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 9 . Plan view of drill collar positions at LP2 and significant assay results (Dynamic dark blue, historic grey). Historic drilling is coloured by maximum nickel in hole.

Lake Percy Lithium Potential

During the year the Company completed first pass field mapping at Lake Percy to assess the project’s broader lithium prospectivity, with initial findings of limited outcrops in the area. A total of 27 rock chip samples of pegmatites and granites were taken for further analysis.

In addition, multiple intersections of pegmatites were encountered in the drill program, supporting observations in the field. Whilst several anomalous lithium assays greater than 300ppm were received, the geometry and zonation of these pegmatites will require significant follow up analysis and interpretation.

DEEP WELL PROJECT

The Deep Well Project is located approximately 30km east to southeast of Meekatharra and is a joint venture between M61 Holdings Pty Ltd (M61) and Dynamic. The project area covers the southern extension of the Gnaweeda Greenstone Belt which lies along the north-eastern most boundary of the Archaean Murchison Domain with the Southern Cross Domain part of the Youanmi Terrane within the Yilgarn Craton of Western Australia.

Dynamic plans to follow up on newly identified and untested nickel sulphide gossans outcropping along a 6km strike along the interpreted greenstone (Figure 10). During the year the focus for Deep Well has been on progressing land access requirements in preparation for exploration activities.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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Figure 10. Plan view of Deep Well Project tenements

GENERATIVE WA

As part of the long-term growth strategy, Dynamic makes opportunistic tenement applications adjacent to or along strike of existing mining operations or advanced projects. These tenements that do not fall into 1 of the 3 main projects (Widgiemooltha, Lake Percy or Deep Well) are referred to collectively as Generative.

No material work completed on Generative Projects this year.

JV PROJECTS

The Company has the following Joint Venture and Farm-In Agreements (Table 4). Material announcements relevant to Dynamic Metals include:

Great Western Exploration (GWE) (ASX: GWE) completed a 3,040m AC program at Firebird Gold Project, located in the Wiluna district, where GWE are earning up to 80% interest in E53/2129 (refer to ASX Announcement by GWE 19 May 2023)
Forrestania Resources (FRS) (ASX: FRS) intersected 63m of pegmatite during the maiden drill program at the Calypso prospect. DYM is the beneficial owner of a 20% interest of E77/2576 on which the Calypso prospect is located (refer to ASX Announcement by FRS 27 June 2023)

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Project	Commodity	Company	DYM Interest
Deep Well	Nickel-Copper-PGE	M61 Holdings Pty Ltd	80%
Prospect Ridge	Magnesite Iron Ore	GWR Group	30%
Joyners Find			20%
Joyners Find/Firebird	Gold	Great Western Exploration Limited	100%
Leinster	Nickel	Future Battery Minerals Limited	20%
Torque	Gold	Torque Metals Limited	20%
Bundie Bore	Gold	Voltaic Strategic Resources Limited	20%
Forrestania	Nickel, lithium	Forrestania Resources Limited	20%
Salt Creek	Gold	Mt Monger Resources Limited	20%
Aries	Diamond	Odessa Minerals Limited	10%

Table 4. Summary of Farm-In and Joint Venture interests

Financial

The net assets of the Group have increased by $8,584,917 over the period following the successful conclusion of the IPO in January 2023, which raised a total of $7 million (before costs).

The Directors believe the Group is in a sound financial position to continue its exploration endeavours.

Competent Persons Statement:

The information in this report that relates to Exploration Results is based on information compiled by Mrs Karen Wellman. Mrs Wellman is an employee of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Mrs Wellman has sufficient experience relevant to the styles of mineralisation and types of deposits under consideration, and to the activity being undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.’ Mrs Wellman consents to the inclusion in this report of the matters based on this information in the form and context in which it appears .

Forward-Looking Statements:

This document may include forward-looking statements. Forward-looking statements include but are not limited to statements concerning Dynamic Metals Limited’s (DYM) planned exploration program and other statements that are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should”, and similar expressions are forward-looking statements. Although Dynamic believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Events since the end of the financial year

No other matter or circumstance has arisen since 30 June 2023 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Likely developments and expected results of operations

The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years not already disclosed in this report.

Environmental regulation

The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the approval of the relevant government agencies, and with rehabilitation required on completion of exploration activities. These regulations are controlled by the Department of Mines and Petroleum.

There are a range of requirements that must be met when undertaking exploration activities, including seeking approval depending on the nature of the activities and undertaking rehabilitation once activities are complete. Bonds are payable prior to the commencement of exploration activities and are returned on satisfactory completion of rehabilitation. Dynamic Metals Limited conducts its exploration activities in an environmentally sensitive manner and the Group is not aware of any breach of statutory conditions or obligations.

Greenhouse gas and energy data reporting requirements

The Directors have considered compliance with both the Energy Efficiency Opportunity Act 2006 and the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June 2023, however reporting requirements may change in the future.

Information on Directors

J Mannolini B.Com/LLB(Hons), LLM(Cantab), GAICD, SF Fin.Non-Executive Chairman	J Mannolini B.Com/LLB(Hons), LLM(Cantab), GAICD, SF Fin.Non-Executive Chairman	J Mannolini B.Com/LLB(Hons), LLM(Cantab), GAICD, SF Fin.Non-Executive Chairman
Experience and expertise	Mr Mannolini was appointed to the Dynamic Board as Non-Executive Chairman on 24 May 2022. Mr Mannolini is a partner in the Corporate Advisory Company of Australian law firm Gilbert + Tobin. He was an Executive Director with Macquarie Capital, the investment banking division of the Macquarie Company from March 2013 to May 2016 and was responsible for cross-industry coverage of the Western Australian market. Prior to joining Macquarie, Mr Mannolini was Managing Director and head of Gresham Advisory Partners’ Perth office, and before that, a partner in the mergers and acquisitions Company of Australian law firm Freehills. In May 2016 Mr Mannolini was appointed to the board of the Northern Australia Infrastructure Facility, a $5B fund set up by the Australian Government to encourage population growth and economic development in northern Australia, a position which he held until September 2021. As a lawyer and investment banker, Mr Mannolini has more than 25 years’ experience in corporate finance rangingacross industrysectors.
Other current directorships	Jindalee Resources Limited - Non-executive Chairman
Former directorships in last 3years	iCetana Limited – resignation effective 11/05/2021
Special responsibilities	Chairman
Interests in shares and options	Ordinary Shares Options	250,000 500,000

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Information on Directors (continued)

L Dudfield B.Sc.Non-Executive Director	L Dudfield B.Sc.Non-Executive Director	L Dudfield B.Sc.Non-Executive Director
Experience and expertise	Mr Dudfield is a qualified geologist with over 40 years’ experience exploring for gold and base metals in Australia and abroad, including close involvement with a number of greenfields discoveries. Mr Dudfield is a member of the AusIMM,SEG,AIG and GSA.
Other current directorships	Energy Metals Limited - Non-Executive Director Alchemy Resources Limited – Non-Executive Chairman Jindalee Resources Limited – Executive Director/CEO
Former directorships in last 3years	None
Special responsibilities	None
Interests in shares and options	Ordinary Shares Options In addition to the above shares, it is noted that: - Mr Dudfield has a substantial shareholding in Jindalee Resources Limited, which holds 12,500,001 shares in Dynamic Metals Limited. - 350,000 shares are held by adult children whom Mr Dudfield neither controls nor exerts any significant influence on. - 250,000 shares are held by Jopan Management Pty Ltd, a company controlled by Mr Dudfield’s spouse, over which he is neither a director nor shareholder, nor does he exert any influence.	750,000 500,000

Karen Wellman BSc, BCom Managing Director and Chief Executive Officer	Karen Wellman BSc, BCom Managing Director and Chief Executive Officer	Karen Wellman BSc, BCom Managing Director and Chief Executive Officer
Experience and expertise	Ms Wellman is a Geologist with over 20 years’ experience covering all aspects of the mining cycle, from early-stage exploration, production and mine geology, through to resource definition and estimation in Australia and Europe. Previous roles include senior roles at Silver Lake Resources Limited and Doray Minerals Limited and CEO of Jindalee Resources Limited. Ms Wellman has a Bachelor of Applied Science/Bachelor of Commerce and a Master of Science (Energy and Mineral Economics) and is a Member of the Australasian Institute of Miningand Metallurgy (AusIMM).
Other current directorships	None
Former directorships in last 3years	None
Special responsibilities	None
Interests in shares and options	Ordinary Shares Options	250,000 2,000,000

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Company Secretary Information

Nerida Schmidt is an experienced Chartered Secretary having over the last 25 years provided Company Secretarial services to several ASX, TSX and AIM listed and unlisted companies, the majority of which operate in the resource sector in Australia and internationally. Ms Schmidt is a Certified Practising Accountant and Fellow member of Finsia and the Governance Institute of Australia (formerly Chartered Secretaries Australia).

Meetings of Directors

The number of meetings of the Group's Board of Directors ('the Board') and held during the year ended 30 June 2023, and the number of meetings attended by each director were:

Name	Board of Directors	Board of Directors
	Meetings Held	Meetings Attended
J Mannolini	5	5
K Wellman	5	5
L Dudfield	5	4

As at the date of this report, the Group did not have an Audit Committee of the Board of Directors. The Board considers that due to the Group’s size, an Audit Committee’s functions and responsibilities can be adequately and efficiently discharged by the Board as a whole, operating in accordance with the Group’s mechanisms designed to ensure independent judgement in decision making.

AUDITED REMUNERATION REPORT

The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors.

The remuneration report is set out under the following main headings:

(a) Key management personnel disclosed in this report
(b) Remuneration governance and the use of remuneration consultants
(c) Executive remuneration policy and framework
(d) Relationship between remuneration and the Group’s performance
(e) Non-executive director remuneration policy
(f) Voting and comments made at the Group’s 2023 Annual General Meeting
(g) Details of remuneration
(h) Service agreements
(i) Details of share-based compensation and bonuses
(j) Equity instruments held by key management personnel
(k) Loans to key management personnel
(l) Other transactions with key management personnel

(a) Key management personnel disclosed in this report

J Mannolini Non-Executive Chairman L Dudfield Non-Executive Director K Wellman Chief Executive Officer

For further details on each director see pages 16 -17.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

(b) Remuneration governance and use of remuneration consultants

The Group has a Remuneration Policy however has not established a separate Remuneration Committee. Due to the early stage of development and small size of the Group a separate Remuneration Committee was not considered to add any efficiency to the process of determining the levels of remuneration for directors and key executives. The Board considers that it is more appropriate to set aside time at a Board meeting each year to specifically address matters that would ordinarily fall to a remuneration committee such as reviewing remuneration, recruitment, retention and termination procedures and evaluating senior executives’ remuneration packages and incentives. A copy of the Remuneration Policy can be found on the Group’s website www.dynamicmetals.com.au

In addition, all matters of remuneration will continue to be in accordance with the Corporations Act requirement, especially with regard to related party transactions. That is, none of the directors participate in any deliberations regarding their own remuneration or related issues.

Independent external advice is sought from remuneration consultants when required, however no advice has been sought during the year ended 30 June 2023.

The Corporate Governance Statement provides further information on the Group’s remuneration governance. Further details on the Corporate Governance Statement can be found on the Group’s website www.dynamicmetals.com.au

(c) Executive remuneration policy and framework

In determining executive remuneration, the Board aims to ensure that remuneration practices are:

Competitive and reasonable, enabling the Group to attract and retain key talent
Aligned to the Group’s strategic and business objectives and the creation of shareholder value
Transparent and easily understood, and
Acceptable to shareholders.

All executives receive consulting fees or a salary in addition to superannuation, and from time to time, grants of options. Options issued to Directors are subject to approval by Shareholders. The Board reviews executive packages annually by reference to the executive’s performance and comparable information from industry sectors and other listed companies in similar industries.

Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits.

All remuneration paid to directors and specified executives is valued at the cost to the Group and expensed. Options are valued using the Black-Scholes methodology.

(d) Relationship between remuneration and the Group’s performance

The terms and conditions for the executive director were developed and approved by the Board and are considered appropriate for the current exploration phase of the Group’s development. Emoluments of Directors are set by reference to payments made by other companies of similar size and industry, and by reference to the skills and experience of directors. Fees paid to directors are not linked to the performance of the Group. This policy may change once the exploration phase is complete and the Group is generating revenue. At present the existing remuneration policy is not impacted by the Group’s performance including earnings and changes in shareholder wealth (dividends, changes in share price or returns of capital to shareholders). The Board has not set short term performance indicators, such as movements in the Group’s share price, for the determination of director emoluments as the Board believes this may encourage performance which is not in the long-term interests of the Group and its shareholders. The Board has structured its remuneration arrangements in such a way it believes is in the best interests of building shareholder wealth in the longer term. The Board believes participation in the Group’s Employee Share Option Plan motivates key management and executives with the long-term interests of shareholders.

The following table shows the share price and the market capitalisation of the Group at the end of each of the last financial period and year.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

	2023	2022
Total Comprehensive loss for the year	838,876	10,455
Loss per share (cents)	(3.66)	-
Share Price	$0.32	-
Market Capitalisation	$15.68M	-
Dividends (cents per share)	-	-

(e) Non-executive director remuneration policy

On appointment to the Board, all non-executive directors enter into a service agreement with the Group in the form of a letter of appointment. The letter summarises the Board policies and terms including remuneration, relevant to the office of director.

The Board policy is to remunerate non-executive directors at commercial market rates for comparable companies for their time, commitment and responsibilities.

The maximum aggregate amount of fees that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting and is currently set at $500,000 per annum.

Fees for non-executive directors are not linked to the performance of the Group. Non-executive directors’ remuneration may also include an incentive portion consisting of options, subject to approval by Shareholders.

(f) Voting and comments made at the Group’s Annual General Meeting

The Group listed during the year and has not yet had an Annual General Meeting. The Group did not therefore receive any specific feedback at an AGM neither throughout the year on its remuneration practices.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

(g) Details of remuneration

The following table sets out details of the remuneration received by the Group’s key management personnel for the current and previous financial year measured in accordance with the requirements of the accounting standards.

		Short-term	benefits	Post-	Long-	Share-		Remuner-
				employment	term	based		ation
				benefits	benefits	payment		consisting
								of options
		Directors	Other	Super-	Long
		Fees	short-term	annuation	Service	Options	Total	Percentage
Non-Executive		$	benefits	$	Leave	$	$	%
Director/Chairman			$		$
J Mannolini	2023	22,917	-	2,406	-	27,704	53,027	52.25%
	2022	-	-	-	-	-	-	-
L Dudfield	2023	13,750	-	1,444	-	27,704	42,898	64.58%
	2022	-	-	-	-	-	-	-
Executive Directors
K Wellman	2023	110,769	31,941	11,631	861	171,294	326,496	52.46%
	2022	-	-	-	-	-	-	-

(h) Service Agreements

Remuneration and other terms of employment for key management personnel are formalised in service agreements. The service agreements specify the components of remuneration, benefits and notice periods.

J Mannolini

Mr Mannolini was appointed a Non-Executive Chairman on 1 October 2022. Mr Mannolini is entitled to directors’ fees of $50,000 per annum plus statutory superannuation in accordance with his letter of appointment. Payment of fees is on and from the company’s successful listing on the ASX. Mr Mannolini’s appointment is contingent upon satisfactory performance and successful re-election by shareholders of the Group as and when required by the Constitution of the Group and the Corporations Act. Mr Mannolini is not entitled to any termination benefits.

L Dudfield

Mr Dudfield was appointed a Non-Executive director on 1 October 2022. Mr Dudfield is remunerated pursuant to the terms and conditions of a consultancy agreement entered into with Mr Dudfield and Jopan Management Pty Ltd trading as Western Geological Services. Payment of fees is on and from the company’s successful listing on the ASX. The agreement may be terminated by either party on the giving of three months’ notice or earlier in the event of a default not remedied within 14 days. Mr Dudfield is not entitled to any termination benefits.

K Wellman

Ms Wellman was appointed Chief Executive Officer effective 17 November 2022 and paid an annual salary of $240,000 per annum plus statutory superannuation pursuant to an Executive Services Agreement. Payment of fees is on and from the company’s successful listing on the ASX. Ms Wellman’s employment contract may be terminated by either party on the giving of three months notice. Upon termination of the contract, for any reason, the Group will pay leave entitlements due to Ms Wellman.

(i) Details of share-based compensation and bonuses

Options over shares in Dynamic Metals Limited are granted under the Group’s Employee Share Option Plan. Participation in the plan and any vesting criteria, is at the Board’s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. Any options issued to directors of the Group are subject to shareholder approval.

Details of options over ordinary shares in the Group provided as remuneration to each director of the Group are set out below.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Options

The terms and conditions of each grant of options over ordinary shares affecting remuneration of directors and other key management personnel in this financial year or future reporting years are as follows:

	Number of					Fair value
	options		Vesting date and			per option
						at grant
Name	granted	Grant date	exercisable date	Expiry date	Exercise price	date
					$	$
J Mannolini	500,000	9/12/ 2022	16/01/ 2024	16/01/ 2026	0.30	0.110
L Dudfield	500,000	9/12/ 2022	16/01/ 2024	16/01/ 2026	0.30	0.110
K Wellman	1,000,000	17/11/2022	16/01/ 2023	16/01/ 2026	0.30	0.112
K Wellman	1,000,000	17/11/2022	16/01/2024	16/01/ 2026	0.30	0.112

Options granted carry no dividend or voting rights.

The fair value of services received in return for share options granted to employees is measured by reference to the fair value of options granted. The estimate of the fair value of the services is measured based on Black-Scholes option valuation methodology. The life of the options and early exercise option are built into the option model.

No bonuses were paid during the year and there is currently no bonus scheme in place.

Further information on the fair value of share options and assumptions is set out in Note 16 to the financial statements.

(j) Equity instruments held by key management personnel

The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the Group that were held during the financial year and the previous financial year by key management personnel and their associated related parties.

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

2023	Balance at	Options/	Received	Number of	Other	Balance at	Vested and	Unvested
	the start of	Shares granted	during the	options	changes	the end of	exercisable
Name	the year	as	year on the	expired/	during the	the year
		compensation	exercise of	forfeited	year
			options	during the
				year
J Mannolini
Ordinary fully paid shares	-	-	-	-	250,000	250,000	-	-
Unlisted Options	-	500,000	-	-	-	500,000	250,000	250,000
L Dudfield
Ordinary fully paid shares1	-	-	-	-	750,000	750,000	-	-
Unlisted Options	-	500,000	-	-	-	500,000	250,000	250,000
K Wellman
Ordinary fully paid shares	-	-	-	-	250,000	250,000	-	-
Unlisted Options	-	2,000,000	-	-	-	2,000,000	1,000,000	1,000,000

1 In addition to the above shares, it is noted that Mr Dudfield has a substantial shareholding in Jindalee Resources Limited, which holds 12,500,001 shares in Dynamic Metals Limited. Further, 250,000 shares are held by Jopan Management Pty Ltd, a company controlled by Mr Dudfield’s spouse, over which he is neither a director nor shareholder, nor does he exert any influence.

Securities Policy

The Group has implemented a policy on trading in the Group’s securities designed to ensure that all directors, senior management and employees of the Group act ethically and do not use confidential inside information for personal gain. The policy states acceptable and unacceptable times for trading in Group securities and outlines the responsibility of directors, senior management and employees to ensure that trading complies with the Corporations Act 2001 , the Australian Securities Exchange (ASX) Listing Rules and Group Policy. A copy of this policy was lodged with the ASX and is available on the Group’s website.

Any transaction conducted by Directors with regards to shares of the Group requires notification to the ASX. Each Director has entered into an agreement to provide any such information with regards to Group dealings directly to the Company Secretary promptly to allow the Group to notify the ASX within the required reporting timeframes.

Shares provided on exercise of options

During the year no ordinary shares in the Group were provided as a result of the exercise of remuneration options.

For details on the valuation of the options, including models and assumptions used, please refer to Note 16.

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

(k) Loans to key management personnel

There were no loans to individuals or members of key management personal during the financial year or the previous financial year.

(l) Other transactions with key management personnel

During the year the Group paid a total of $15,194 to Western Geological Services (a division of Jopan Management Pty Ltd), the fees being for the provision of non-executive director services provided to the Group by Mr Lindsay Dudfield. Mr Dudfield’s spouse is the major shareholder of and the sole director and company secretary of Jopan Management Pty Ltd.

End of Audited Remuneration Report

Shares under option

Unissued ordinary shares of the Group under option at the date of this report are as follows:

Grant Date Number 17/11/2022 1,000,000 17/11/2022 1,000,000 17/11/2022 500,000 17/11/2022 500,000 9/12/2022 500,000 9/12/2022 500,000 9/12/2022 100,000 9/12/2022 100,000 16/01/2023 1,212,500	Date vested & exercisable Expiry Date 16/01/ 2023 16/01/ 2026 16/01/2024 16/01/ 2026 16/01/ 2023 16/01/ 2026 16/01/2024 16/01/ 2026 16/01/ 2024 16/01/ 2026 16/01/ 2024 16/01/ 2026 16/01/ 2023 16/01/ 2026 16/01/2024 16/01/ 2026 16/01/ 2023 16/01/ 2026	Exercise Price $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30 $0.30

No option holder has any right under the options to participate in any other share issue of the Group or any other entity.

Shares Issued on Exercise of Options

There were no shares issued on exercise of options during the year and up to the date of this report.

Directors and Officers insurance

Dynamic Metals Limited paid a premium during the year in respect of directors’ and officers’ liability insurance policy, insuring the directors and officers of the Group against a liability incurred whilst acting in the capacity of a director, secretary or executive officer to the extent permitted by the Corporations Act 2001 . The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the policy as such disclosure is prohibited under the terms of the contract of insurance.

Corporate Governance Statement

The Group’s 2023 Corporate Governance Statement has been released as a separate document and is located on the Group’s website at: https://dynamicmetals.com.au/about/corporate-governance/

Proceedings on behalf of the Group

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2001 .

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Non-audit services

The Group from time to time may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Group is important.

During the year ended 30 June 2023 and in the previous financial year there were no fees paid or payable for non-audit services provided by the auditor of Dynamic Metals Limited.

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required by section 307C of the Corporations Act 2001 is included on page 53.

This report is signed in accordance with a resolution of the Directors.

==> picture [91 x 30] intentionally omitted <==

K Wellman Managing Director

Perth 21 September 2023

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023

Note Other Income Interest income Fair value movement on financial assets 10 Expenses Share-based payment expense 16 Employee benefits expense Corporate and regulatory expenses Exploration Expenditure Depreciation and amortisation expense 8, 9 Finance costs Other expenses 3 Total Expenses Loss before income tax Income tax expense 4 Loss after income tax Total comprehensive loss for the year attributable to the ordinary equity holders of the Group Loss per share attributable to the ordinary equity holders of the Group Basic loss per share (cents per share) 17 Diluted loss per share (cents per share) 17	2023 $ 20221 $
	85,101 - 17,647 -
	102,748 -
	(327,256) - (79,864) - (268,147) (3,000) - (7,262) (17,137) (173) (2,283) - (246,937) (20)
	(941,624) (10,455)
	(838,876) (10,455) - -
	(838,876) (10,455)
	(838,876) (10,455)
	(3.66) n/a (3.66) n/a

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Note:

1Comparisons to the prior year are made to the non-standard period of 24 May 2022 (date of Dynamic Metals Limited incorporation) to 30 June 2022.

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023

Note CURRENT ASSETS Cash and cash equivalents 5 Trade and other receivables 6 Prepayments Total Current Assets NON-CURRENT ASSETS Capitalised exploration and evaluation expenditure 7 Right of use assets 8 Property, plant and equipment 9 Financial assets at fair value through profit and loss 10 Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 11 Provisions – employee entitlements 12 Lease liabilities 8 Total Current Liabilities NON-CURRENT LIABILITIES Lease liabilities 8 Provisions – employee entitlements 12 Payable to Jindalee Resources Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS/ (LIABILITIES) EQUITY Contributed equity 14 Accumulated losses Reserves 15 TOTAL EQUITY	2023 $ 2022 $
	4,413,493 - 133,990 4,717 17,109 723
	4,564,592 5,440
	3,916,370 - 66,792 - 54,485 50,390 282,353 -
	4,320,000 50,390
	8,884,592 55,830
	188,016 3,000 52,243 - 37,466 -
	277,725 3,000
	31,414 - 1,427 - - 63,275
	32,841 63,275
	310,566 66,275
	8,574,026 (10,445)
	8,962,304 10 (849,331) (10,455) 461,053 -
	8,574,026 (10,445)

The above statement of financial position should be read in conjunction with the accompanying notes.

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023

Consolidated Note s Balance at 24 May 2022 Share capital issued on incorporation Total comprehensive loss for the year: Loss for the period Total comprehensive loss for the year Transactions with owners in their capacity as owners Balance at 30 June 20221 Total comprehensive loss for the year: Loss for the year Total comprehensive loss for the year Transactions with owners in their capacity as owners Issue of shares 14 Share issue costs 14 Share-based payments 15 Balance at 30 June 2023	Contributed equity Share-based payment reserve Accumulated losses Total equity $ $ $ $
	- - - - 10 - - - - - (10,455) (10,455)
	- - (10,455) (10,455)
	- - - -
	10 - (10,455) (10,445)
	- - (838,876) (838,876)
	- - (838,876) (838,876)
	9,797,000 - - 9,797,000 (834,706) 133,797 - (700,909) - 327,256 - 327,256
	8,962,304 461,053 (849,331) 8,574,026

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Note:

1Comparisons to the prior year are made to the non-standard period of 24 May 2022 (date of Dynamic Metals Limited incorporation) to 30 June 2022.

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Note Cash flows from operating activities Payments to suppliers and employees Interest received Net cash outflow from operating activities 13 Cash flows from investing activities Payments for exploration and evaluation Payments for property, plant and equipment Proceeds for acquisition of subsidiary, net cash acquired Net cash outflow from investing activities Cash flows from financing activities Repayment of lease liabilities Proceeds from issue of shares net of costs Net cash inflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year 5	2023 $ 20221 $
	(399,719) - 85,101 -
	(314,618) -
	(1,672,629) - (12,077) - 251,713 -
	(1,432,993) -
	(10,443) - 6,171,547 -
	6,161,104 -
	4,413,493 - - -
	4,413,493 -

The above statement of cash flows should be read in conjunction with the accompanying notes.

Note:

1Comparisons to the prior year are made to the non-standard period of 24 May 2022 (date of Dynamic Metals Limited incorporation) to 30 June 2022.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1. CORPORATION INFORMATION

These financial statements of Dynamic Metals Limited for the year ended 30 June 2023 were authorised for issue in accordance with a resolution of directors on 21 September 2023.

The financial statements cover Dynamic Metals Limited and its controlled entities. Dynamic Metals Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange.

Unless otherwise stated, policies adopted in the preparation of the financial statements are consistent with those of the previous year.

2. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Historical cost convention

The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 25.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Dynamic Metals Limited ('Company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for the year then ended. Dynamic Metals Limited and its subsidiaries together are referred to in these financial statements as the 'Group’.

Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full, even if that results in a deficit balance.

Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Foreign currency translation

The financial statements are presented in Australian dollars, which is Dynamic Metals Limited's functional and presentation currency.

Foreign currency transactions

Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Revenue recognition

The Group recognises revenue as follows:

Interest

Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established. Revenue in relation to joint venture agreements is recognised over the period the services are rendered.

Income tax

The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a tr that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable p
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Dynamic Metals Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax consolidated Group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated Group continue to account for their own current and deferred tax amounts. The tax consolidated Group has applied the 'separate taxpayer within Group' approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated Group.

In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax consolidated Group.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated Group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated Group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.

Financial assets at fair value through profit or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Plant and equipment

3-8 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

Right-of-use assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

Exploration and Evaluation Expenditure

The Group’s policy with regards to exploration and evaluation expenditure, including the costs of acquiring licences and permits, is that such expenditure is capitalised as exploration and evaluation assets on an area of interest basis. Under this method exploration and evaluation expenditure is carried forward on the following basis:

i) Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or write off exploration and evaluation costs.
ii) Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to tenure of the area of interest are current and that one of the following conditions is met:
such evaluation costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sale; or
exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing.

Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct expenditure.

Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Lease liabilities

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Provisions

Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Employee benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Share-based payments

Equity-settled and cash-settled share-based compensation benefits are provided to employees.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Dividends

Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.

(Loss)/Earnings per share

Basic (Loss)/earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to the owners of Dynamic Metals Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2023. The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

2. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Share-based payment transactions

The Group measures the cost of equity-settled transactions by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equitysettled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to note 16 for further information.

Deferred tax balances

Deferred tax assets in respect of tax losses are not recognised in the financial statements as management considers that it is currently not probable that future taxable profits will be available to utilise those tax losses. Management reviews on a regular basis the future profitability of the Group to consider if tax losses should be recognised and to ensure that any tax losses recognised will be utilised .

Fair value measurement hierarchy

The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective.

The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs. Refer to note 19 for further information.

Incremental borrowing rate

Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is estimated to discount future lease payments to measure the present value of the lease liability at the lease commencement date. Such a rate is based on what the Group estimates it would have to pay a third party to borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms, security and economic environment.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

3. OTHER EXPENSES

Other expenses include the following specific expenses:

Investor relations expense Insurance expense Other 4. TAXATION (a) Income tax expense Current tax Deferred tax Deferred income tax expense included in income tax expense comprises: (Decrease)/increase in deferred tax liability Opening balance - deferred tax (asset)/ liability Movement for period Closing Balance – deferred tax (asset)/ liability (b) Numerical reconciliation of income tax expense to prima facie tax payable Loss before income tax: Tax at the Australian tax rate of 30% (2022: 30%) Tax effect of amounts which are not deductible in calculating taxable income: Non-deductible (income)/expenses Share-based payments Income tax losses not recognised Total income tax benefit	2023 $ 2022 $ (77,387) - (33,766) (20) (135,784) -
	(246,937) (20)
	2023 $ 2022 $
	- - - -
	- -
	- -
	- -
	- -
	- -
	(838,876) (10,455)
	(251,663) (3,137) 9,780 - 98,177 - 143,706 3,137
	- -

Dynamic Metals Limited has unrecognised deferred tax assets at year-end of $401,777 (2022: nil) representing unrecognised tax losses.

Dynamic Metals Limited has Group carried forward revenue tax losses of $1,887,355 as at 30 June 2023 and carried forward capital losses of $0.

Dynamic Metals Limited is considered a base rate entity for income tax purposes and is therefore subject to income tax at a rate of 30% (2022: 30%).

Net deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised. The Group’s ability to use losses in the future is subject to the Group satisfying the relevant tax authority’s criteria for using these losses.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

5. CASH AND CASH EQUIVALENTS

5. CASH AND CASH EQUIVALENTS
Cash at bank Cash on deposit Other 6. TRADE AND OTHER RECEIVABLES Receivable from Jindalee Resources Ltd (‘JRL’)1 GST Receivable Other	2023 $ 2022 $ 4,371,298 - 20,000 - 22,195 -
	4,413,493 -
	2023 $ 2022 $ 36,200 - 83,392 4,717 14,398 -
	133,990 4,717

1Reimbursement receivable from JRL in accordance with the Implementation Deed signed between JRL and Dynamic Metals Limited on 16 November 2022. The Implementation Deed was signed to facilitate the spin-out between JRL and the Group completed on 16 January 2023.

7. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE

Balance at beginning of year Exploration acquired1 Exploration expenditure incurred Balance at the end of the year	2023 $ 2022 $
	- - 2,246,581 - 1,669,789 -
	3,916,370 -

1Relates to exploration assets of $1,537,298 acquired from JRL as part of the spin-off transaction on 11 January 2023 and $439,283 from the acquisition of HiTec Minerals Pty Ltd. Refer to Note 27 for details on asset acquisition.

In addition, a further $270,000 was spent on the acquisition of 80% of the Deep Well project from M61 Holdings Pty Ltd.

The balance carried forward represents projects in the exploration and evaluation phase.

Ultimate recoupment of exploration expenditure carried forward is dependent on successful development and commercial exploitation, or alternatively, sale of respective areas.

8. OFFICE LEASE

a) Right-of-use asset Right-of-use asset - at cost Less: accumulated amortisation Balance at the end of the year	2023 $ 2022 $ 77,044 - (10,252) -
	66,792 -

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

Reconciliation of the Right-of-use asset Opening balance Additions Less: amortisation expense for year Closing balance b) Lease liability Opening balance Additions Interest expense Payments Closing balance Lease Liability Current Non-current Closing balance	- - 77,044 - (10,252) -
	66,792 -
	- - 77,044 - 2,283 - (10,447) -
	68,880 -
	37,466 - 31,414 -
	68,880 -

The Group’s West Perth office is leased under a lease agreement assigned to the Group commencing on 1 April 2023 for a period of two years and rental of $45,374 plus GST per year plus outgoings. The lease liability is measured at the present value of the remaining lease payments, discounted using the Group’s incremental borrowing rate as at 1 April 2023. The weighted-average rate applied was 10%.

9. PROPERTY, PLANT AND EQUIPMENT

Plant and equipment - at cost Less: accumulated depreciation Total property, plant and equipment Reconciliation of the carrying amount of property, plant and equipment: Carrying amount at beginning of year Additions Less: depreciation expense for year Carrying amount at end of year	2023 $ 2022 $
	61,542 50,563 (7,057) (173)
	54,485 50,390
	50,390 - 10,980 50,563 (6,885) (173)
	54,485 50,390

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

Opening balance Additions1 Fair value movement Closing balance	2023 $ 2022 $
	- - 264,706 - 17,647 -
	282,353 -

1Shares in the capital of GWR Group Ltd (ASX:GWR) acquired on the acquisition of HiTec Minerals Pty Ltd “HiTec”. The shares were previously acquired by HiTec as part-consideration for the sale of 70% of the Prospect Ridge Project. Refer to Note 27 for details on asset acquisition of HiTec.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

11. TRADE AND OTHER PAYABLES

Trade payables Accruals	2023 $ 2022 $
	99,693 - 88,323 3,000
	188,016 3,000

Trade and other payables are non-interest bearing and are normally settled on 30 day terms.

The carrying value of trade and other payables are assumed to be the same as their fair values, due to their short-term nature.

12. PROVISIONS – EMPLOYEE ENTITLEMENTS

Current Liability Provision for annual leave Non-Current Liability Provision for long service leave	2023 $ 2022 $
	52,243 - 1,427 -
	53,670 -

13. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

Loss after income tax Share-based payments Depreciation and amortisation Finance costs Fair value movement on financial assets Provisions - Employee benefits Change in operating assets and liabilities during the financial year: Decrease in trade and other receivables Increase in prepayments Decrease in payable to Jindalee Resources Limited Decrease in trade and other payables Net cash outflow from operating activities	2023 $ 2022 $
	(838,876) - 327,256 - 17,137 - 2,283 - (17,647) - 53,670 - 356,053 - (16,388) (64,899) (133,207) -
	(314,618) -

Loss after income tax
Share-based payments
Depreciation and amortisation
Finance costs
Fair value movement on financial assets
Provisions - Employee benefits
Change in operating assets and liabilities during the financial year:
Decrease in trade and other receivables
Increase in prepayments
Decrease in payable to Jindalee Resources Limited
Decrease in trade and other payables
Net cash outflow from operating activities

2023
$
2022
$

(838,876)
-
327,256
-
17,137
-
2,283
-
(17,647)
-
53,670
-
356,053
-
(16,388)
(64,899)
(133,207)
-

(314,618)
-

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

14. CONTRIBUTED EQUITY

2023 Shares Ordinary shares - fully paid 48,985,001 Movements in ordinary share capital Details Date Issue of shares on incorporation 24 May 2022 Balance 30 June 2022 Issue of shares on placement 11 Jan 2023 Issue of shares to vendors and joint lead managers 11 Jan 2023 Issue of shares to Jindalee Resources Limited - Acquisition of HiTec Minerals Pty Ltd (Note 27) 11 Jan 2023 - Acquisition of exploration licenses 11 Jan 2023 Less: transaction costs Balance 30 June 2023	2023 Shares 48,985,001

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

15. RESERVES

. RESERVES
Share-based payment reserve Balance at the beginning of the year Share issue costs1 Share-based payments (refer to note 16) Balance at the end of the year	2023 $ 2022 $
	- - 133,797 - 327,256 -
	461,053 -

1Options provided to joint lead managers on the Group’s listing on ASX.

Nature and purpose of the reserves:

The share-based payments reserve is used to recognise the grant date fair value of options issued but not exercised.

16. SHARE BASED PAYMENT TRANSACTIONS

Share based payments transactions are recognised at fair value in accordance with AASB 2. The expense in the year was $327,256 (2022: nil).

Employee Share Option Plan

Dynamic Metals Limited Employee Share Option Plan (“ESOP”) was established to encourage all eligible directors, executive officers and employees who have been continuously employed by the Group to have a greater involvement in the

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

achievement of the Group’s objectives and to provide an incentive to strive to that end by participating in the future growth and prosperity of the Group through share ownership.

The ESOP allows the Group to issue free options to eligible persons. The options can be granted free of charge and are exercisable at a fixed price in accordance with the rules of the ESOP.

Summary of Options

Set out below are summaries of options granted during the current financial year.

Grant Date Exercise Price 17 Nov 2022 $0.30 9 Dec 2022 $0.30 16 Jan2023 $0.30 Total	Balance at the start of the year Granted Exercised Expired/ forfeited/ other Balance at end of the year Options Vested at the end of the year Options unvested at the end of the year Number Number Number Number Number Number Number - 3,000,000 - - 3,000,000 1,500,000 1,500,000 - 1,200,000 - - 1,200,000 100,000 1,100,000 - 1,212,500 - - 1,212,500 1,212,500 -
	- 5,412,500 - - 5,412,500 2,812,500 2,600,000

Grant Date
Exercise
Price
17 Nov 2022
$0.30
9 Dec 2022
$0.30
16 Jan2023
$0.30
Total

Balance
at the
start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance
at end of
the year
Options
Vested at
the end of
the year
Options
unvested at
the end of the
year
Number
Number
Number
Number
Number
Number
Number
-
3,000,000
-
-
3,000,000
1,500,000
1,500,000
-
1,200,000
-
-
1,200,000
100,000
1,100,000
-
1,212,500
-
-
1,212,500
1,212,500
-

-
5,412,500
-
-
5,412,500
2,812,500
2,600,000

Weighted average exercise price $0.30 $0.30

The weighted average remaining contractual life of share options outstanding at the end of the financial year was 2.6 years (2022: n/a).

The fair value of the options was determined using a Black Scholes model and the following valuation model inputs:

	Optionsgranted	17 November 2022	Optionsgranted 9 December 2022	Optionsgranted 9 December 2022
	Tranche 1	Tranche 2	Tranche 1	Tranche 2
Number	1,500,000	1,500,000	100,000	100,000
Grant date	17 November 2022	17 November 2022	9 December 2022	9 December 2022
Expirydate	16 January2026	16 January2026	16 January2026	16 January2026
Share price at grant date	$0.19	$0.19	$0.19	$0.19
Exercise price	$0.30	$0.30	$0.30	$0.30
Volatility	105.51%	105.51%	105.17%	105.17%
Dividend yield	0%	0%	0%	0%
Risk-free rate	3.19%	3.19%	3.02%	3.02%
Fair Value at grant date	$0.112	$0.112	$0.110	$0.110
Condition	The options vested on the date of admission of the Company to the Official List of the ASX (12 January2023).	The options will vest one year after the date of admission of the Company to the Official List of the ASX (12 January2024).	The options vested on the date of admission of the Company to the Official List of the ASX (12 January 2023).	The options will vest one year after the date of admission of the Company to the Official List of the ASX (12 January2024).
Number issue to	Ms Wellman (Managing director): 1,000,000 Employees: 500,000	Ms Wellman (Managing director): 1,000,000 Employees: 500,000	Consultant: 100,000	Consultant: 100,000

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

	Optionsgranted 9 December 2022	Optionsgranted 16 January 2023
Number	1,000,000	1,212,500
Grant date	9 December 2022	16 January2023
Expirydate	16 January2026	16 January2026
Shareprice atgrant date	$0.19	$0.19
Exerciseprice	$0.30	$0.30
Volatility	105.17%	105.51%
Dividendyield	0%	0%
Risk-free rate	3.02%	3.20%
Fair Value atgrant date	$0.110	$0.109
Condition	The options will vest one year after the date of admission of the Company to the Official List of the ASX(12 January2024).	Vests immediately
Number issue to	Mr Mannolini (Non-executive director): 500,000 Mr Dudfield(Non-executive director): 500,000	Lead managers (consultants): 1,212,500

17. LOSS PER SHARE

Loss used in calculation of basic and diluted loss per share Basic loss per share (cents per share) Diluted loss per share (cents per share) Weighted average number of ordinary shares used as the denominator in calculating basic and diluted loss per share.	2023 $ 2022 $
	(838,876) (10,456) (3.66) n/a (3.66) n/a 22,949,138 1

Options on issue were not considered to be dilutive as their impact would have been to increase the loss per share.

18. DIVIDENDS

No dividend has been declared for the year ended 30 June 2023 (2022: nil).

19. FINANCIAL AND CAPITAL RISK MANAGEMENT

(a) Capital Risk Management

The Group manages its capital to ensure that it will be able to continue as a going concern.

In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity shareholders. In order to achieve this object, the Group seeks to maintain a capital structure that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. In making decisions to adjust its capital structure to achieve these aims, either through new share issues, or sourcing of debt, the Group considers not only its short-term position but also its long-term operational and strategic objectives.

The capital structure of the Group consists of cash and cash equivalents (Note 5) and equity attributable to equity holders of the Group, comprising contributed equity (Note 14), reserves (Note 15) and retained earnings (accumulated losses).

(b) Significant Accounting Policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 of the financial statements.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

(c) Categories of Financial Instruments

Financial Assets Current Cash and cash equivalents Trade and other receivables Total Current Financial Assets Non-current Financial assets at fair value through profit and loss Total Non-Current Financial Assets Financial Liabilities Current Trade and other payables Lease liabilities Payable to Jindalee Resources Limited Total Current Financial Liabilities Non-current Lease liabilities Total Non-Current Financial Liabilities	2023 $ 2022 $
	4,413,493 - 133,990 4,717
	4,547,483 4,717
	282,353 -
	282,353 -
	188,016 3,000 37,466 - - 63,275
	225,482 66,275
	31,414 -
	31,414 -

(d) Credit Risk Exposure

As at the reporting date, the Group has no significant concentrations of credit risk. The carrying amount reflected above represents the Group’s maximum exposure to credit risk.

(e) Interest Rate Risk Exposure

The Group’s exposure to interest rate risk arises from cash and cash equivalents. The Group manages market risk by monitoring levels of exposure to interest rate risk and assessing market forecasts for interest rates. No disclosure on the sensitivity check as any reasonable movement of the interest rate would not have any significant impact to the financial statements.

Variable rate instruments Interest rate Cash at bank - Fixed rate instruments Cash on deposit 2.55%	2023 $ 2022 $
	4,393,493 - 20,000 -
	4,413,493 -

(f) Price Risk

The Group is exposed to equity securities price risk. This arises from investments held by the Group and classified in the statement of financial position as financial assets at fair value through profit and loss. The Group is not exposed to commodity price risk. No disclosure on the sensitivity check as any reasonable movement of the price would not have any significant impact to the financial statements.

(g) Liquidity Risk

The liquidity position of the Group is managed to ensure sufficient liquid funds are available to meet our financial commitments in a timely and cost-effective manner. The Board reviews the Group’s liquidity position on a regular basis including cash flow statements to determine the forecast liquidity position and maintain appropriate liquidity levels.

There are no unused borrowing facilities from any financial institution.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

The following table detail the Group’s contractual maturity for its financial liabilities:

2023 Trade and other payables Lease liability Total 2022 Trade and other payables Lease liabilities Payable to Jindalee Resources Limited Total	Carrying Amount $ Contractual Cash Flows $ Less than 1 Year $ 2-5 Years $ >5 Years $
	188,016 188,016 188,016 - - 68,880 68,880 37,466 31,414 -
	256,896 256,896 225,482 31,414 -
	3,000 3,000 3,000 - - - - - - - 63,275 63,275 63,275 - -
	66,275 66,275 66,275 - -

(h) Fair Values and fair value hierarchy

Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable inputs for the asset or liability

2023 Financial Assets Cash and cash equivalents Trade and other receivables Financial assets at fair value through profit and loss Total Financial Assets Financial Liabilities Trade and other payables Lease liabilities Total Financial Liabilities	Level 1 $ Level 2 $ Level3 $ Total $
	4,413,493 - - 4,413,493 133,990 - - 133,990 282,353 - - 282,353
	4,829,836 - - 4,829,836
	188,016 - - 188,016 68,880 - - 68,880
	256,896 - - 256,896

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

2022 Financial Assets Trade and other receivables Total Financial Assets Financial Liabilities Trade and other payables Payable to Jindalee Resources Limited Total Financial Liabilities	Level 1 $ Level 2 $ Level 3 $ Total $
	4,717 - - 4,717
	4,717 - - 4,717
	3,000 - - 3,000 63,275 - - 63,275
	66,275 - - 66,275

20. Key management personnel disclosures

Compensation

The aggregate compensation made to directors and other member of key management personnel the Group is set out below:

Short-term employee benefits Post-employment benefits Long-term benefits Share-based payments	2023 $ 179,377 15,481 861 226,702	2022 $ - - - -
	422,421	-

21. Remuneration of auditors

During the financial year the following fees were paid or payable for services provided by Hall Chadwick WA pty ltd, the auditor of the Company, its network firms and unrelated firms:

Audit Services Audit or review of the financial statements	2023 $ 25,000	2022 $ -
	25,000	-

22. CONTINGENCIES

Contingent Liabilities

Claims of Native Title

To date the Group has been notified by the Native Title Tribunal of native title claims which cover some of the Group’s licence holdings. Until further information arises in relation to the claims and its likelihood of success, the Group is unable to assess the likely effect, if any, of the claims.

There are no other contingencies of the Group at balance date.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

23. COMMITMENTS

In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligations of the Group are subject to the minimum expenditure commitments required as per the Mining Act 1978, as amended, and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity relevant area of interest. Currently, the minimum expenditure commitments for the granted tenements are as follows (2022: nil):

2023 Commitments	Due within 1 year $ Due within 1 - 5 years $ Due after 5 years $ Total $
	1,163,853 2,783,684 - 3,947,537

24. RELATED PARTY TRANSACTIONS

(a) Parent entity

The parent entity within the Group is Dynamic Metals Limited.

(b) Subsidiaries Interests in subsidiaries are set out in Note 26.

During the year the Group paid a total of $13,750 to Western Geological Services (a division of Jopan Management Pty Ltd), the fees being for the provision of technical and management services provided to the Group by Mr Lindsay Dudfield (Non-Executive Director) (2022: $0). Mr Dudfield’s spouse is the major shareholder of and the sole director and company secretary of Jopan Management Pty Ltd.

Refer to Note 20 for Key Management Personnel compensation. Detailed remuneration disclosures are provided in the remuneration report on page 18 to 25.

During the year, the Group granted the following options to key management personnel:

Karen Wellman Justin Mannolini Lindsay Dudfield	Number of options Total Value at grant date $ Expense to 30 June 2023 $
	2,000,000 224,000 171,294 500,000 55,000 27,704 500,000 55,000 27,704
	3,000,000 334,000 226,702

Refer to Note 16 Share based payments for further detail.

d) Transactions with other related parties

Other transactions with Jindalee Resources Ltd

Spin-out from Jindalee Resources Limited

As announced to ASX on 16 January 2023, Dynamic Metals Limited completed a spin-out from Jindalee Resources Limited during the year. Refer to Note 14 for issue of share capital to Jindalee Resources Limited and Note 27 for the Acquisition of HiTec Minerals Pty Ltd, from Jindalee Resources Limited.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Expenses paid by Jindalee Resources Limited on behalf of the Group - For consultant fees, set up costs and share issue costs - Payroll reimbursement - Exploration expenditure incurred - Property, plant and equipment Total	2023 2022 $ $
	419,853 4,125 45,108 - 249,760 7,262 - 51,888
	714,721 63,275

25. PARENT ENTITY FINANCIAL INFORMATION

The following details information related to the parent entity, Dynamic Metals Limited, at 30 June 2023 and 30 June 2022.

Information presented here has been prepared using consistent accounting policies as presented in Note 1.

Financial Position Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Net assets Equity Issued capital Accumulated losses Reserves Total equity Financial Performance Loss for the year Other comprehensive income Total comprehensive loss	2023 20221 $ $
	4,306,009 5,440 4,561,065 50,390
	8,867,074 55,830
	277,719 3,000 32,843 63,275
	310,562 66,275

	8,556,512 (10,445)
	8,962,304 10 (866,845) (10,455) 461,053 -
	8,556,512 (10,445)
	(856,390) (10,455) - -
	(856,390) (10,455)

Dynamic Metals Limited had no commitments or contingent liabilities at year end other than those disclosed in Notes 22 and 23.

1Comparisons to the prior year are made to the non-standard period of 24 May 2022 (date of Dynamic Metals Limited incorporation) to 30 June 2022.

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

26. CONTROLLED ENTITIES

						Investment	at Cost
	% held			State of	Date of	2023	2022
Controlled Entity	2023	2022	Class	Incorporation	Acquisition	$	$
HiTec Minerals Pty Ltd	100%	0%	Ord	WA	11/01/2023	962,702	-

The date of incorporation of the controlled entity was on the 13/04/2016.

27. ACQUISITION OF HITEC MINERALS PTY LTD

On 11 January 2023, the Group acquired HiTec Minerals Pty Ltd (“HiTec”). HiTec held cash, a 30% interest in Prospect Ridge and financial assets at fair value through profit and loss (shares held in GWR).

The acquisition of HiTec has been treated as an asset acquisition. This was on the basis that the transaction failed the substantive process test within AASB 3 Business Combinations. The cost of the acquisition has therefore been allocated to the assets and liabilities acquired.

The cost of the acquisition was attributed to the following assets and liabilities:

Assets acquired and liabilities assumed at the date of acquisition Exploration Asset Cash and cash equivalents Financial assets at fair value through profit and loss Other identifiable net assets Net Assets Acquired at 11 January 2023 Consideration for the acquisition Share Capital Issued Total consideration costs paid	2023 $ 439,283 251,713 264,706 7,000
	962,702
	962,702
	962,702

28. EVENTS OCCURING AFTER THE REPORTING PERIOD

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Group in future financial years.

DYNAMIC METALS LIMITED Directors Declaration

In the Directors’ opinion:

The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity, accompanying notes, are in accordance with the Corporations Act 2001 , and:
(a) complying with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(b) giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its performance for the year ended on that date.
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.
The directors have been given the declarations as required by section 295A of the Corporations Act 2001.
Note 2 confirms that the financial statements also comply with International Reporting Standards as issued by the International Accounting Standards Board.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

==> picture [86 x 28] intentionally omitted <==

K Wellman

Managing Director 21 September 2023 at Perth, Western Australia

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To the Board of Directors,

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit Director for the audit of the financial statements of Dynamic Metals Limited for the financial year ended 30 June 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of:

the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.

Yours Faithfully

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

HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA
Director
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Dated Perth, Western Australia this 21[st] day of September 2023

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INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF DYNAMIC METALS LIMITED

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Dynamic Metals Limited (“the Company”) and its subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.

In our opinion:

a. the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2023 and of its financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter How our audit addressed the Key Audit Matter Capitalised Exploration and Evaluation Our review procedures included but were not Expenditure limited to: As disclosed in note 7 to the financial • Assessing management’s determination of its statements, during the year ended 30 June areas of interest for consistency with the 2023 the Company capitalised exploration definition in AASB 6 Exploration and Evaluation and evaluation expenditure was carried at of Mineral Resources (“AASB 6”); $3,916,370. • Assessing the Consolidated Entity’s rights to tenure for a sample of tenements;
The recognition and recoverability of the • By reviewing the status of the Consolidated
exploration and evaluation expenditure was Entity’s tenure and planned future activities,
considered a key audit matter due to: • The carrying value represents a reading board minutes and discussions with significant asset of the management we assessed each area of interest Consolidated Entity, we for one or more of the following circumstances considered it necessary to assess that may indicate impairment of the mineral whether facts and circumstances exploration expenditure:
The carrying value represents a significant asset of the Consolidated Entity, we considered it necessary to assess whether facts and circumstances existed to suggest the carrying amount of this asset may exceed the recoverable amount; and
• Determining whether impairment indicators exist involves significant judgement by management
The licenses for the rights to explore expiring in the near future or are not expected to be renewed;
Substantive expenditure for further exploration in the area of interest is not budgeted or planned;
Decision or intent by the Consolidated Entity to discontinue activities in the specific area of interest due to lack of commercially viable quantities of resources; and
Data indicating that, although a development in the specific area is likely to proceed, the carrying amount of the exploration asset is unlikely to be recorded in full from successful development or sale; and
We also assessed the appropriateness of the related disclosures in note 7 to the financial statements.

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Other Information

The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity’s annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements , that the financial report complies with International Financial Reporting Standards.

In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

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As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2023. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor’s Opinion

In our opinion, the Remuneration Report of Dynamic Metals Limited, for the year ended 30 June 2023, complies with section 300A of the Corporations Act 2001.

HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director

Dated in Perth, Western Australia this 21[st] day of September 2023

DYNAMIC METALS LIMITED Additional information

ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES

The Company presents the following additional information included in accordance with the listing requirements of the Australian Securities Exchange:

Shareholders

Distribution of shareholders as at 1 September 2023:

	Number of Shareholders	Number of Ordinary Shares
1 – 1,000	14	1,809
1,001 – 5,000	53	166,222
5,001 – 10,000	70	640,070
10,001 – 100,000	222	10,060,852
100,001 and over	63	38,116,048
	422	48,985,001

There are 27 shareholders holding unmarketable parcels (being a minimum $500 parcel at $0.23 per unit) totalling 25,840 shares.

The Company has the following substantial shareholders as at the date of this Report:

	Number of Ordinary Shares	% of Ordinary Shares
JINDALEE RESOURCES LIMITED	12,500,001	25.52%

Unlisted Options

As at the date of this report, the unissued ordinary shares of Dynamic Metals Limited under options are as follows:

Expiry date	Exercise price ($)	Quantty	Number of Holders
16/1/2026	0.30	5,412,5000	7

Voting Rights

The voting rights attached to each class of equity security are as follows:

Ordinary Shares

Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

Options

Unlisted options do not carry the right to vote until such time as they are exercised and converted to ordinary shares.

DYNAMIC METALS LIMITED Additional information

Restricted Securities

There are currently the following restricted securities on issue:

DESCRIPTION	NUMBER
ORDINARY SHARES ESCROWED FOR 12 MONTHS FROM 16/01/2023	1,000,000
ORDINARY SHARES ESCROWED FOR 24 MONTHS FROM 16/01/2023	12,985,001
UNLISTED OPTIONS EXERCISABLE AT $0.30 EXPIRING 16/1/2026 ESCROWED FOR 24 MONTHS FROM 16/01/2023	5,412,500

On-market Buy-back

There is no on-market buy-back currently being undertaken.

Twenty Largest Shareholders as at 1 September 2023

Name	Number of Ordinary Fully Paid Shares Held	% of Issued Ordinary Capital Held
JINDALEE RESOURCES LIMITED	12,500,001	25.52%
AUTUMN ORIGIN CAPITAL PTY LTD	2,435,100	4.97%
PILLAGE INVESTMENTS PTY LTD	2,000,000	4.08%
MS QIANYING SUN	1,813,229	3.70%
AMRITA CAPITAL PTY LTD	1,319,283	2.69%
MR PATRICK MICHAEL LOUGHNAN	1,130,000	2.31%
TBB NSW PTY LTD	1,080,000	2.20%
GALILEO MINING LTD	1,000,000	2.04%
KAREN JENNIFER PITTARD	1,000,000	2.04%
MORYTON PTY LTD	890,000	1.82%
MR LINDSAY GEORGE DUDFIELD & MRS YVONNE SHEILA DOLING DUDFIELD	750,000	1.53%
MR MICHAEL PATRICK LYNCH	720,000	1.47%
SPACEFACE PTY LTD	522,500	1.07%
JAYLEAF HOLDINGS PTY LTD	450,000	0.92%
ROSSDALE SUPERANNUATION PTY LTD	447,500	0.91%
BNP PARIBAS NOMINEES PTY LTD DRP>	426,763	0.87%
WILGUS INVESTMENTS PTY LTD	400,000	0.82%
CHIODO TRADING PTY LTD	387,500	0.79%
OCEANVIEW ROAD PTY LTD	350,000	0.71%
RECO HOLDINGS PTY LTD	350,000	0.71%
Total	29,971,876	61.19%

DYNAMIC METALS LIMITED Additional information

Tenement List

Tenement	Status	Location	% Owned by Dynamic Metals Limited
E 15/1552	Granted	Western Australia	100%
E 15/1563	Granted	Western Australia	100%
E 15/1624	Granted	Western Australia	100%
E 15/1626	Granted	Western Australia	100%
E 15/1645	Granted	Western Australia	100%
E 15/1680	Granted	Western Australia	100%
E 15/1691	Granted	Western Australia	100%
E 15/1697	Granted	Western Australia	100%
E 15/1700	Application	Western Australia	100%
E 15/1705	Granted	Western Australia	100%
E 15/1712	Granted	Western Australia	100%
E 15/1713	Application	Western Australia	100%
E 15/1720	Granted	Western Australia	100%
E 15/1721	Granted	Western Australia	100%
E 15/1722	Granted	Western Australia	100%
E 15/1736	Granted	Western Australia	20%
E 15/1747	Granted	Western Australia	20%
E 15/1752	Granted	Western Australia	20%
E 15/1753	Granted	Western Australia	100%
E 15/1754	Application	Western Australia	100%
E 15/1765	Application	Western Australia	100%
E 15/1789	Application	Western Australia	100%
E 15/1802	Granted	Western Australia	100%
E 15/1806	Granted	Western Australia	100%
E 15/1807	Granted	Western Australia	100%
E 15/1808	Application	Western Australia	100%
E 15/1816	Application	Western Australia	100%
E 15/1818	Granted	Western Australia	100%
E 15/1836	Application	Western Australia	100%
E 15/1838	Application	Western Australia	100%
E 15/1840	Application	Western Australia	100%
E 15/1865	Application	Western Australia	100%
E 15/1880	Application	Western Australia	100%
E 15/1889	Application	Western Australia	100%
E 15/1900	Application	Western Australia	0%
E 15/1907	Application	Western Australia	100%
E 15/1935	Application	Western Australia	100%
E 15/1936	Application	Western Australia	0%
E 15/1937	Application	Western Australia	100%
E 16/575	Application	Western Australia	100%
E 16/608	Application	Western Australia	100%
E 16/610	Application	Western Australia	100%
E 16/620	Application	Western Australia	100%

DYNAMIC METALS LIMITED Additional information

Tenement	Status	Location	% Owned by Dynamic Metals Limited
E 16/621	Application	Western Australia	100%
E 20/1001	Application	Western Australia	100%
E 20/992	Granted	Western Australia	100%
E 25/562	Granted	Western Australia	20%
E 25/572	Application	Western Australia	20%
E 25/597	Application	Western Australia	20%
E 27/651	Application	Western Australia	100%
E 27/652	Application	Western Australia	100%
E 27/666	Application	Western Australia	100%
E 27/693	Application	Western Australia	100%
E 28/3138	Application	Western Australia	100%
E 28/3150	Granted	Western Australia	100%
E 28/3151	Granted	Western Australia	100%
E 28/3152	Granted	Western Australia	100%
E 28/3153	Granted	Western Australia	100%
E 28/3222	Application	Western Australia	100%
E 28/3223	Application	Western Australia	100%
E 30/548	Application	Western Australia	100%
E 31/1299	Granted	Western Australia	100%
E 31/1316	Application	Western Australia	100%
E 31/1324	Application	Western Australia	100%
E 36/1060	Application	Western Australia	100%
E 36/895	Granted	Western Australia	100%
E 36/953	Granted	Western Australia	100%
E 36/994	Granted	Western Australia	100%
E 37/1370	Granted	Western Australia	100%
E 37/1414	Granted	Western Australia	100%
E 37/1472	Application	Western Australia	100%
E 37/1502	Application	Western Australia	100%
E 38/3540	Application	Western Australia	100%
E 38/3714	Application	Western Australia	100%
E 38/3725	Application	Western Australia	100%
E 38/3849	Application	Western Australia	100%
E 38/3851	Application	Western Australia	100%
E 39/2134	Granted	Western Australia	100%
E 39/2350	Application	Western Australia	100%
E 40/405	Granted	Western Australia	100%
E 40/430	Application	Western Australia	100%
E 45/5381	Application	Western Australia	100%
E 45/5958	Application	Western Australia	0%
E 45/6190	Application	Western Australia	0%
E 45/6195	Application	Western Australia	0%
E 45/6249	Application	Western Australia	0%
E 51/1909	Granted	Western Australia	20%
E 51/1946	Granted	Western Australia	20%
E 51/1977	Granted	Western Australia	80%
E 51/2073	Application	Western Australia	80%

DYNAMIC METALS LIMITED Additional information

Tenement	Status	Location	% Owned by Dynamic Metals Limited
E 51/2116	Application	Western Australia	100%
E 53/2129	Granted	Western Australia	100%
E 53/2131	Granted	Western Australia	100%
E 53/2148	Application	Western Australia	100%
E 63/1832	Granted	Western Australia	100%
E 63/1874	Granted	Western Australia	100%
E 63/1875	Granted	Western Australia	100%
E 63/1981	Granted	Western Australia	100%
E 63/2005	Granted	Western Australia	100%
E 63/2088	Granted	Western Australia	100%
E 63/2236	Application	Western Australia	100%
E 63/2237	Application	Western Australia	100%
E 63/2238	Application	Western Australia	100%
E 63/2252	Application	Western Australia	100%
E 63/2261	Application	Western Australia	100%
E 63/2337	Application	Western Australia	100%
E 70/6169	Granted	Western Australia	100%
E 77/2575	Granted	Western Australia	20%
E 77/2576	Granted	Western Australia	20%
E 77/2701	Granted	Western Australia	20%
E 77/2795	Application	Western Australia	100%
E 77/2800	Granted	Western Australia	0%
E 77/2887	Granted	Western Australia	100%
E 77/2958	Application	Western Australia	100%
E 80/5027	Granted	Western Australia	10%
M 53/1078-I	Granted	Western Australia	20%
P 15/6112	Granted	Western Australia	100%
P 15/6245	Granted	Western Australia	0%
P 15/6246	Granted	Western Australia	100%
P 15/6267	Granted	Western Australia	100%
P 15/6268	Granted	Western Australia	100%
P 15/6342	Granted	Western Australia	100%
P 15/6367	Granted	Western Australia	100%
P 15/6584	Granted	Western Australia	100%
P 15/6585	Granted	Western Australia	100%
P 15/6586	Granted	Western Australia	100%
P 15/6587	Granted	Western Australia	100%
P 25/2568	Granted	Western Australia	20%
P 51/3145	Granted	Western Australia	20%
P 51/3146	Granted	Western Australia	20%
P 51/3147	Granted	Western Australia	20%
EL5/2016	Granted	Tasmania	30%

AI assistant

DYNAMIC METALS LIMITED — Annual Report 2023

64809_rns_2023-09-21_4dfd5eff-6701-4327-8852-5c4baf27724a.pdf

DYNAMIC METALS LIMITED

Board and Management

Registered Office & Principal Place of Business

Auditors

Legal Advisors

Share Registry

Securities Exchange Listing

DIRECTORS’ REPORT

Directors

Principal activities

Financial results

Dividends

Significant changes in the state of affairs

Operations and financial review

OPERATIONS REPORT

EXPLORATION PROJECTS

WIDGIEMOOLTHA PROJECT

Dordie Far West Prospect

Higginsville, Mandilla and Sunday Soak Prospects

Highly prospective exploration tenure granted

LAKE PERCY PROJECT

LP1 Target

LP 2 Target

Lake Percy Lithium Potential

DEEP WELL PROJECT

GENERATIVE WA

JV PROJECTS

Financial

Competent Persons Statement:

Forward-Looking Statements:

Events since the end of the financial year

Likely developments and expected results of operations

Environmental regulation

Greenhouse gas and energy data reporting requirements

Information on Directors

Information on Directors (continued)

Company Secretary Information

Meetings of Directors

AUDITED REMUNERATION REPORT

(a) Key management personnel disclosed in this report

(b) Remuneration governance and use of remuneration consultants

(c) Executive remuneration policy and framework

(d) Relationship between remuneration and the Group’s performance

(e) Non-executive director remuneration policy

(f) Voting and comments made at the Group’s Annual General Meeting

(g) Details of remuneration

(h) Service Agreements

J Mannolini

L Dudfield

K Wellman

(i) Details of share-based compensation and bonuses

Options

(j) Equity instruments held by key management personnel

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

Securities Policy

Shares provided on exercise of options

(k) Loans to key management personnel

(l) Other transactions with key management personnel

End of Audited Remuneration Report

Shares under option

Shares Issued on Exercise of Options

Directors and Officers insurance

Corporate Governance Statement

Proceedings on behalf of the Group

Non-audit services

Auditor’s Independence Declaration

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023

DYNAMIC METALS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1. CORPORATION INFORMATION

2. SIGNIFICANT ACCOUNTING POLICIES

New or amended Accounting Standards and Interpretations adopted

Basis of preparation

Historical cost convention

DYNAMIC METALS LIMITED Annual Report 2023