DYNAMIC METALS LIMITED

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2024 Annual Report

Year ending 30 June 2024

ASX:DYM dynamicmetals.com.au

ABN 37 659 154 480

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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

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

Registered Office & Principal Place of Business

Level 1 33 Richardson Street West Perth, WA 6005

PO Box 247 West Perth, WA 6872

Securities Exchange Listing

The Company is listed on:

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

ASX Code: DYM

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

Chairman’s Letter	4
Review of Operations	6
Directors’ Report	18
Consolidated Statement of Profit or Loss and other Comprehensive Income	33
Consolidated Statement of Financial Position	34
Consolidated Statement of Changes in Equity	35
Consolidated Statement of Cash Flows	36
Notes to the Consolidated Financial Statements	37
Directors’ Declaration	61
Auditor’s Independence Declaration	62
Independent Auditor’s Report	63
Additional Infomation	68

CHAIRMAN’S LETTER

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Dear Fellow Shareholders,

The 2024 financial year saw a number of significant achievements by Dynamic Metals against the backdrop of challenging equity and commodity market conditions.

with a further $1 million to follow in July 2025. Mineral Resources may increase its stake to 65% by sole funding an additional $15 million of exploration expenditure over the next four years, and may elect to increase its stake to 80% by sole funding expenditure through to a decision to mine.

In particular, the entire battery metals complex has come under significant pricing pressure, exacerbated by supply chain issues, slower than expected update of electric vehicles (EVs) and, in the case of nickel, a flood of cheap supply from Indonesian laterite mines. These developments have effectively raised the bar for an economic discovery of nickel and lithium within the Company’s portfolio, necessitating a re-focussing of our attention on the potential for other minerals.

We are very pleased to have secured the support of a partner of the calibre of Mineral Resources. The arrangement has not only provided the Company with a valuable source of nondilutive capital for its broader exploration and development programme: it has also allowed us to benefit from the expertise of a true pioneer of the lithium industry in Australia.

Fortunately, the Widgiemooltha Project, strategically positioned within a renowned mineral corridor, has shown encouraging results. Our recent drilling at the Higginsville and Mandilla Gold Prospects highlighted substantial gold intercepts, underscoring the project’s potential. Notable intercepts include 1m @ 5.61 g/t Au and 4m @ 1.59 g/t Au at Higginsville, and 1m @ 3.1 g/t Au at Mandilla. These results are promising as we continue to explore and expand our understanding of these prospects.

Beyond Widgiemooltha, we have continued to investigate the lithium and nickel potential of the Lake Percy Project, with extensive soil sampling confirming a substantial lithium anomaly, highlighting the project’s potential in the growing critical minerals market.

The Dynamic Board is committed to being a responsible operator on the traditional lands on which we operate, and as such when faced with cultural heritage concerns at the Deep Well Project, the planned surveys were immediately terminated and we are now exploring alternative prospects within the project area.

A key development for the company was the formation in March 2024 of a new joint venture with Mineral Resources Limited to explore for lithium at Widgiemooltha. Completion of the joint venture arrangements in July saw the Company receive an immediate cash injection of $4 million,

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4 • Dynamic Metals

In Tasmania, the Prospect Ridge Magnesite Project, in which the Company retains a 20% interest, continued to progress with promising Phase 1 drilling results at the Arthur River deposit. The high-grade magnesium deposit results are a testament to the project’s potential, with further drilling and studies planned to enhance resource confidence.

“Our recent drilling at the Higginsville and Mandilla Gold Prospects highlighted substantial gold intercepts, underscoring the project’s potential. “

Throughout the year, we have strategically managed our generative projects, including the sale of the Mulga Tank tenement and continued studies at the Lindsays Project. These efforts reflect our ongoing commitment to maximizing value from our assets and positioning Dynamic Metals for future growth.

As we move into the next year, we remain dedicated to advancing our projects and exploring new ones that align with our strategic objectives. Our solid balance sheet position provides us with flexibility to capitalise on opportunities as they may arise.

I extend my sincere gratitude to my fellow board members, the Dynamic team of employees, contractors, consultants and advisors and a special thank you to our shareholders for their support in what has been a challenging year for many investors.

Justin Mannolini Non-Executive Chairman

2024 Annual Report • 5

REVIEW OF OPERATIONS

WIDGIEMOOLTHA PROJECT

The Widgiemooltha Project is located approximately 550km east of Perth and centred 100km south of Kalgoorlie (Figure 1). 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 area has emerged as a significant lithium belt with three lithium-caesium tantalum (LCT) pegmatite related mines developed in the past few years.

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Figure 1. Widgiemooltha Project tenement map

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6 • Dynamic Metals

Higginsville Gold Prospect

The Higginsville prospect is located within 1km of Westgold Resources’ (ASX: WGX) Higginsville Mining Operations. The prospect was first identified in the early 2000’s when WMC defined a 1.3km gold anomaly from surface geochemistry and completed wide spaced aircore (AC) drilling based on structural interpretation suggesting the presence of an interpreted fault complex[1] . An intercept of 4m @ 3.42g/t was returned in drillhole WID42534 from this drilling.

In June 2023 the Company completed 16 AC drillholes for 659m in an 80m x 50m pattern over Dynamic’s tenement to systemically collect bedrock geochemical information and determine the significance of this target given its close proximity to an existing gold operation[2] (Figure 2).

Several significant intercepts were recorded including 1m @ 5.61 g/t at 44m in a bottom of hole sample from HGA0112, which was geologically logged as quartz vein with visible sulphides. Additionally, a composite sample towards the bottom of the weathering profile in HGA015 returned 4m @ 1.59 g/t at 20m.

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Figure 2. Dynamic’s Higginsville prospect and recently completed drilling coloured by max Au in hole. Significant Au results (> 0.25g/t) highlighted

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1 Dynamic Metals ASX Disclosure 12 January 2023: Prospectus 2 Dynamic Metals ASX Announcement 16 June 2023: Three More Prospects Drill Tested at Widgiemooltha

2024 Annual Report • 7

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Figure 3. Dynamic’s Mandilla prospect with interpreted bedrock geology (adapted from ASX: AAR 20/07/2023) with recently completed drill holes coloured by max Au in hole, with significant Au results (> 0.25g/t) highlighted

Mandilla Gold Prospect

Dynamic’s exploration licence 15/1645 lies adjacent to Astral Resources (ASX: AAR) 1.25Moz Mandilla Project[3] . The Company completed an exploration program to determine whether mineralisation extended onto DYM tenure and drilled 16 AC holes for 804m in a 40m by 40m pattern[4] (Figure 3).

During the September quarter, results from the exploration program[5] indicated mineralisation may extend onto the tenure with significant assay results including:

1m @ 3.1g/t Au in MDA011 (bottom of hole at 56m)
4m @ 0.35 g/t Au in MDA004 from 44m
5m @ 0.46g/t Au in MDA012 from 40m including 1m @ 0.34 g/t Au in MDA012 (bottom of hole at 44m)
1m @ 0.30 g/t in MDA011 (bottom of hole at 50m)

3 Astral Resources ASX Announcement 20 July 2023: Mandilla Gold Resource Surpasses 1.25Moz Following Fifth Successive Resource Upgrade

4 Dynamic Metals ASX Announcement 16 June 2023: Three More Prospects Drill Tested at Widgiemooltha

5 Dynamic Metals ASX Announcement 23 August 2023: High-grade Gold Assays Received at Higginsville Project

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8 • Dynamic Metals

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Figure 4. Plan view of part of Dynamic’s Widgiemooltha Project, with priority drill targets D3 and D5 against magnetics and known regional nickel deposits

D3 & D5 Nickel Prospects

During the September quarter the Company completed nine reverse circulation (RC) holes for a total of 1,092m with intention to directly test for fresh rock nickel sulphide mineralisation associated with the ‘basal contact’ at the two prospects.

The Company interpreted the position of the basal contact at D3 and D5 through field work, and additionally informed by aeromagnetic and surface geochemistry.

Post the September quarter end, the Company announced drilling at the D5 prospect supports the Kambalda ore deposit model with the basal contact intersected in the two northern-most drill lines[6] .

At the D3 prospect the observed geology did not correspond with Dynamic’s geological interpretations, with the first three holes dominated by volcaniclastics, with no basal contact intercepted. As a result, additional proposed holes were not completed, and no further drilling is planned at D3.

6 Dynamic Metals ASX Announcement 23 October 2023: Nickel exploration update

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2024 Annual Report • 9

Sunday Soak Nickel Prospect

During the September 2023 quarter, assay results were received from a 16 AC hole drill program completed in June at the Sunday Soak nickel prospect[4] . The low MgO content of the ultramafic and lack of significant nickel assays has downgraded the prospectivity of this target.

Dordie Far West Nickel Prospect

The Company commenced drilling at the Dordie Far West (DFW) nickel prospect shortly after listing in January 2023[7] , with the program 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’.

In the first drill campaign, five RC holes were drilled on four sections over a strike length of approximately 300m intersecting multiple significant assays greater than 1% Ni, including 16m @ 1.96% Ni including 5m @ 2.84% Ni[8] .

An additional two RC holes were drilled to the south-west to test for the extension of mineralisation into the fresh rock[9] in the previous quarter but failed to intercept the basal contact as modelled.

Assays were returned during the September 2023 quarter with no significant intercepts (Ni>1%) to report.

7 Dynamic Metals ASX Announcement 31 January 2023: Rig mobilises for first drill program at Widgiemooltha

8 Dynamic Metals ASX Announcement 02 May 2023: Strong nickel grades confirmed at DFW

9 Dynamic Metals ASX Announcement 16 June 2023: PGE Assays Support Strong Nickel Results at Lake Percy

10 • Dynamic Metals

LAKE PERCY

The Lake Percy Project is located approximately 120km to the west of Norseman, along the HydenNorseman 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[10] . The project is near the Mt Day LCT pegmatite field 20km 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[11] ).

Phase 2 drilling was completed at the Lake Percy Project in December 2023 with a total of five RC holes for 924m at the LP1 and LP2 targets being drilled[12] . Four RC holes were drilled on four sections 250 to 300m apart testing the nickel and Platinum Group Element (PGE) anomaly at depth at the LP2 target. The fifth hole targeted the strongest nickel and copper anomaly at the northern extent of drilling. Drill holes were cased for optionality of downhole electromagnetic (DHEM) surveys. Assays were returned during the March 2024 quarter with no significant nickel results intercepted.

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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”

10 Charger Metals ASX Announcement 22 February 2023: Charger confirms High Grade Lithium at Medcalf

11 Covalent Lithium Mount Holland Mine information accessed at https://www.covalentlithium.com/

12 Dynamic Metals ASX Announcement 08 December 2023: Phase 2 Nickel Drilling Complete at Lake Percy

2024 Annual Report • 11

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Figure 6. Lake Percy Lithium soil sampling results with anomaly of >100ppm Li2O contoured. Historic drill collars in white

During the June 2024 quarter, the Company confirmed and extended a large historical lithium soil anomaly at the Lake Percy Project[13] , part of its strategy to systematically evaluate the lithium potential of Dynamic’s substantial land package in Western Australia. An infill and orientation soil sampling program was completed at the project with a total of 762 samples taken at 40m spacings on sample lines, with line spacings between 200m and 400m apart (Figure 6). The results from this program confirmed the presence of a significant lithium anomaly greater than 100ppm Li2O over an area of 2.5km by 2km.

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13 Dynamic Metals ASX Announcement 25 June 2024: Significant Lithium Soil Anomaly at Lake Percy Project

12 • Dynamic Metals

DEEP WELL

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.

In the June 2024 quarter Dynamic embarked on the first heritage survey at the Deep Well Project with the Yugunga-Nya People, recognised as the Traditional Owners of the land upon which the project is situated, with the goal to minimise potential impacts on cultural heritage.

During the survey, a culturally sensitive discovery was made. With due respect to the Yuguna-Nya people, Dynamic chose to pause, then terminate the planned survey. The Company is considering alternative prospects at Deep Well.

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Figure 7. Plan view of Deep Well Project tenements

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2024 Annual Report • 13

JOINT VENTURE PROJECTS

The Dynamic Metals self-funding exploration model divests non-core assets, retaining exposure to upside via the exploration activities by partners. The Company has the following Joint Venture and Farm-In Agreements (Table 1).

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Project Commodity Company DYM Interest
Deep Well Nickel-Copper-PGE M61 Holdings Pty Ltd 80%
Prospect Ridge Magnesite 30%
GWR Group
Joyners Find Iron Ore 20%
Future Battery Minerals
Leinster Nickel 20%
Limited
Torque Gold Torque Metals Limited 20%
Voltaic Strategic
Bundie Bore Gold 20%
Resources Limited
Forrestania Resources
Forrestania Nickel, lithium 20%
Limited
MTM Critical Minerals
Salt Creek Gold 20%
Limited
Odessa Minerals
Aries Diamond 10%
Limited
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Table 1. Summary of Farm-In and Joint Venture interests

Widgiemooltha Lithium JV – 60% DYM / 40% MIN

In March 2024[14] , Dynamic entered into a binding terms sheet for a farm-in and joint venture (“Agreement”) with ACN 654 242 690 Pty Ltd (“HoldCo”), a wholly-owned subsidiary of Mineral Resources Limited (“MinRes”), and MinRes (as guarantor of the initial cash payments), under which the Company was to, following the satisfaction of certain conditions precedent, sell 40% of all lithium mineral rights held by Dynamic on the Widgiemooltha tenement package (see Annexure B) (“Tenements”) for $5M cash consideration (the “MinRes Transaction”).

Following completion (15 July 2024)[15] , HoldCo and Dynamic formed a 40% / 60% unincorporated joint venture. HoldCo can increase its stake to 65% by sole funding an additional $15M of exploration expenditure on the Tenements over the 4 years following completion. HoldCo has the further ability to elect to increase its stake to 80% by sole funding expenditure through to a Decision to Mine. Upon HoldCo earning 80% interest Dynamic must elect to either remain in Joint Venture and contribute to Joint Venture expenses or convert its interest into a royalty.

The MinRes Transaction only covers the lithium rights for the Widgiemooltha Project, with Dynamic retaining the rights for all other minerals.

15 Dynamic Metals ASX Announcement 5 March 2024: Landmark $20M Lithium-focused JV with Mineral Resources

16 Dynamic Metals ASX Announcement 15 July 2024: Landmark Lithium Focused JV with Mineral Resources Complete

14 • Dynamic Metals

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Pioneer Dome Lithium Prospect

During the September 2023 quarter, the Company completed a large first pass regional soil program to obtain appropriate geochemical data for target generation[16] .

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Granted
Pending
Lithium
Dynamic Metals Occurences
Mt Marion
Lithium
66.1 Mt @ 1.4% Li2O Major Prospects/Deposits
Highway
Kambalda Road
Railway Line
Spargos East
Mandilla East
Faraday
1.96 Mt @ 0.69% Li2O
Franks Far Southeas t
Pioneer Dome
11.2 Mt @ 1.2% Li2O
Pioneer Dome West
N
Sinclair
0 20km
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Results from the soil program identified a large 2.8km soil anomaly at the Pioneer Dome West prospect[17] and follow up auger sampling commenced. The auger sampling produced significant results at the PDWS01 target, where assay results demonstrate coincident lithium, rubidium and caesium anomalies peaking at 182ppm Li, 328 ppm Rb, and 70ppm Cs[18] .

Franks Far Southeast and Spargos East Prospects

Approximately 880 soil samples were taken at the Spargos East and Franks Far Southeast prospects in November 2023 targeting LCT type pegmatites associated with the contact between volcaniclastic and mafic/ultramafic units. Soil samples were taken on lines 400m apart with 40m spacing on each line.

The results from the first 300 assays returned over the Spargos East area and announced to the market in December[19] defined a robust and consistent lithium anomaly in soils over 100ppm Li with a peak returned assay of 190 ppm Li (equivalent of 409ppm Li2O). The potential for LCT mineralisation is supported by rubidium (up to 492 ppm Rb), tantalum (up to 57 ppm Ta) and caesium (up to 64 ppm Cs).

The bulk of the remaining soil sampling results are located at Franks Far Southeast where two large anomalies have been identified, each over 1,000m in strike length and 300m to 600m wide. Additionally, the southernmost target has strong support from historic rock chip samples assaying up to 1,010ppm Li (equivalent of 2,172 ppm Li2O)[20] .

17 Dynamic Metals ASX Announcement 5 October 2023: 2.8km Lithium Anomaly Defined at Pioneer Dome 18 Dynamic Metals ASX Announcement 27 November 2023: Positive Lithium Auger Results at Pioneer Dome 19 Dynamic Metals ASX Announcement 11 December 2023: Maiden Soil Assays up to 409ppm Li2O at Spargos East

20 Dynamic Metals ASX Announcement 23 January 2024: Soil Sampling Identifies New lithium Trends at Widgiemooltha

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2024 Annual Report • 15

Prospect Ridge JV - 70% GWR / 30% DYM

The Prospect Ridge Magnesite project area is located in northwest Tasmania, 40 km southwest of the Port of Burnie. It sits upon granted Exploration Licence EL5/2016 and covers 51 km[2] . The project consists of two magnesite deposits, the Arthur River and Lyons River deposits, containing the third largest magnesite inventory in Australia.

The Arthur River prospect is a large high-grade magnesium deposit where previous exploration has identified an Inferred Mineral Resource estimate of 25.1Mt @ 42.4% MgO[21] .

During the June 2024 quarter, GWR released significant Phase 1 diamond drilling results at the Arther River deposit, which consisted of four HQ3 diamond drill holes for 485.3 m (AR035 to AD038), including[22] :

AR035, 118.7 m at 43.3% MgO from 6.3 m
AR036, 61.5 m at 42.9% MgO from 11.3 m
AR037, 30.8 m at 43,7% MgO from 92.7 m

Subsequent to the end of the June quarter, a Phase 2 drilling program commenced at the Arthur River deposit[22] consisting of six holes for 900m, with a third phase drilling program comprising of an additional 21 holes proposed to be undertaken. The Phase 3 drilling program will assist in increasing the confidence in the current JORC resource at the Arthur River deposit.

In parallel to the current and planned drilling programs, a Scoping Study[23] was initiated using inputs from previous feasibility studies, recent drilling and from the Federal government funded Regional Research Collaboration Grant.

In addition, metallurgical testwork by Nagrom and CODES commenced with 97 sample pulps submitted to Nagrom, Perth for Au, Ag, Cu, Pb, Zn and Ni analysis to follow up anomalous sulphur and iron intercepts from the 2023 program and to investigate Iron Oxide CopperGold (IOCG) potential[24] .

AR038, 34.5 m at 42.1% MgO from 75.5 m

GENERATIVE PROJECTS

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.

The Company continuously reviews the Generative projects and is actively pursuing opportunities to capitalise non-core assets. During the September 2023 quarter the Company negotiated the sale of

the Mulga Tank tenement to Western Mines Group (WMG) for $20,000 cash, 100,000 shares, 200,000 options and a 1% Net Smelter Royalty[25] .

The Company initiated desktop studies at its Lindsays Project in the December 2023 quarter, which includes recently granted exploration licence 31/1316. Following on from the studies, target generation based on gold and lithium prospectivity commenced in the June 2024 quarter.

21 Jindalee Lithium ASX Announcement 10 October 2017: Arthur River Magnesite Deposit JORC (2012) Resource Estimate

22 GWR Group ASX Announcement 8 May 2024: Thick Intersections up to 118m @ 43.3% Mg - Prospect Ridge

23 GWR Group ASX Announcement 2 July 2024: Metallurgical Drilling Commences at Prospect Ridge

24 GWR Group ASX Announcement 21 June 2024: Drilling & Scoping Study Commences – Prospect Ridge Magnesium

25 Western Mines Group ASX Announcement 03 October 2023: WMG Consolidates Entire Mulga Tank Complex

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16 • Dynamic Metals

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, 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.

2024 Annual Report • 17

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 2024.

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 profit of the Group after providing for income tax for the year ended 30 June 2024 was $2,890,923 (2023: loss $838,876).

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

There were no significant changes in the state of affairs of the Group other than as referred to elsewhere in this consolidated financial report and in the accounts and notes attached thereto, other than as follows.

On 1 July 2024 the Company issued a total of 449,338 performance rights to employees under the Company’s Employee Securities Incentive Plan (“ESIP”).

Review of operations

The review of operations is contained on page 6 of this Annual Report.

Financial

The net assets of the Group have increased by $3,030,031 (2023: $8,584,917) over the period.

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

Events since the end of the financial year

No matter or circumstance has arisen since 30 June 2024 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years, other than as follows.

On 1 July 2024 the Company issued a total of 449,338 performance rights to employees under the Company’s ESIP plan.

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18 • Dynamic Metals

DIRECTORS’ REPORT

Disclosure of business strategies and prospects – material business risks

The material business risks faced by the Company that are likely to have an effect on the financial prospects of the Company are disclosed below along with how the Company manages these risks:

Title Risk:

As at the date of this report there are various exploration licence applications that have not yet been granted. There is a risk that the exploration licences may not be granted in their entirety or only granted on conditions deemed unacceptable to the Company or that such grant will be delayed.

Tenure Risk:

The Company’s tenements are subject to the applicable mining acts and regulations in Western Australia, pursuant to which mining, and exploration tenements are subject to periodic renewal. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. There is no guarantee that current or future tenements or future applications for production tenements will be approved.

Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the Company’s projects. The imposition of new conditions or the inability to meet those conditions may adversely affect the operations, financial position or performance of the Company. There can be no guarantee that a renewal will be approved. If the Company is unable to secure a renewal for these tenements this may impact the Company’s exploration plans for the projects and may adversely Impact the Company or the value of its shares. Prior to any development on any of its properties, the Company must receive licences from appropriate governmental authorities.

There is no certainty that the Group will hold all licences necessary to develop or continue operating at any particular property. The Company considers the likelihood of tenure forfeiture to be low given the laws and regulations governing exploration in Western Australia and the ongoing expenditure being budgeted by the Company. However, the consequences of forfeiture or involuntary surrender of a granted tenement for reasons beyond the control of the Company could be significant.

Similarly, the rights to mining tenure carry with them various obligations which the holder is required to comply with in order to ensure the continued good standing of the licence and, specifically, obligations in regard to minimum expenditure levels and responsibilities in respect of the environment and safety.

Failure to observe these requirements could prejudice the right to maintain title to a given area and result in government action to forfeit a licence or licences. There is no guarantee that current or future exploration applications or existing licence renewals will be granted, that they will be granted without undue delay, or that the Company can economically comply with any conditions imposed on any granted exploration permits. The tenements may be relinquished either in total or in part even though a viable mineral deposit may be present, in the event that:

exploration or production programs yield negative results;
insufficient funding is available;
environmental offsets are required;
such a tenement is considered by the Company to not meet the risk / reward or other criteria of the Company;
its relative perceived prospectivity is less than that of other tenements in the Company’s portfolio, which take a higher priority; or
a variety of other reasons.

Further, a number of the tenements are pending applications. There is a risk that the applications for tenements may not be granted in their entirety or only granted on conditions unacceptable to the Company

Nature of Mineral Exploration:

Mineral exploration and development is considered a high-risk undertaking. There is no guarantee that exploration of the projects will result in the discovery of an economically viable resource. Even if an apparently viable resource is discovered, there is no guarantee that the resource can be economically exploited. Exploration on the Company’s projects may be unsuccessful, resulting in a reduction of the value of those projects, diminution in the cash reserves of the Company and possible relinquishment of such projects.

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2024 Annual Report • 19

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

The proposed exploration costs of the are based on certain assumptions with respect to the method and timing of exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the actual costs may materially differ from these estimates and assumptions. Accordingly, no assurance can be given that the cost estimates and the underlying assumptions will be realised in practice which may materially and adversely affect the Company’s ability to complete the exploration programs as planned.

Operational Risk:

The operations of the Company may be affected by various factors, including failure to locate or identify mineral deposits, failure to achieve predicted grades in exploration and mining, operational and technical difficulties encountered in mining, difficulties in commissioning and operating plant and equipment, mechanical failure or plant breakdown, unanticipated metallurgical problems which may affect extraction costs, adverse weather conditions, industrial and environmental accidents, industrial disputes and unexpected shortages or increases in the costs of consumables, spare parts, plant and equipment.

Even though the Directors have between them significant mineral exploration and operational experience, no assurance can be given that the Company will achieve commercial viability through the successful exploration and mining of its tenements. Until the Company is able to realise value from its projects, it likely to incur ongoing operating losses.

Private land, Reserve Land and Land Access Risk:

The Company's interests in the tenements are subject to Commonwealth and applicable state legislation and cannot be guaranteed. The Company may be required to obtain the consent of and / or compensate holders of third-party interests which overlay areas within the tenements. The tenements overlap certain third-party interests that may limit the Company's ability to conduct exploration activities including Crown land, proposed Crown reserves, pastoral leases and areas covered by native title determinations.

Project Delays and Cost Overruns:

The Company's ability to successfully explore, develop and potentially commercialise its projects may be affected by factors including project delays and costs overruns. If the Company experiences project delays or cost overruns, this could result in the Company not realising its operational or development plans or result in such plans costing more than expected or taking longer to realise than expected.

Native Title and Aboriginal Heritage:

In relation to the tenements or any tenements that the Company may in the future acquire an interest in, there may be areas over which legitimate common law Native Title rights may exist. If such Native Title rights do exist, the ability of the Company to gain access to such tenements (through obtaining consent of any relevant native title holders) or to progress from the exploration phase to the development and mining phase of operations may be adversely affected.

As at the date of this report, a number of the tenements are subject to Native Title determinations and others are subject to Native Title claims. The grant of any future tenure to the Company over areas that are covered by registered claims or determinations will require engagement with the relevant claimants or native title holders (as relevant) in accordance with the Native Title Act. In addition, determined native title holders may seek compensation under the Native Title Act for the impacts of acts affecting native title rights and interests after the commencement of the Racial Discrimination Act 1975 (Cth) on 31 October 1975.

The State of Western Australia has passed liability for compensation for the impact of the grant of mining tenements under the Mining Act onto mining tenement holders pursuant to section 125A of the Mining Act. Outstanding compensation liability will lie with the current holder of the tenements at the time of any award of compensation pursuant to section 125A of the Mining Act or, in the event there is no holder at that time, the immediate past holder of the relevant tenements. Compensation liability may be determined by the Federal Court or settled by agreement with native title holders, including through ILUAs (which have statutory force) and common law agreements (which do not have statutory force).

At this stage, the Company is not able to quantify any potential compensation payments, if any. In addition, the Company must comply with Aboriginal heritage legislation requirements which include the requirement to conduct heritage survey work prior to the commencement of operations. The Company is aware of various areas of indigenous significance and Aboriginal heritage sites of considerable cultural value both to the local indigenous communities and the broader community which affect a number of tenements. It is also likely that additional Aboriginal heritage sites may be identified

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20 • Dynamic Metals

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

on the land the subject of the tenements. These Aboriginal heritage sites require the Company to comply with all relevant sections of the Aboriginal Heritage Acts in respect of any ground disturbing activities and any applicable agreements that may be in place with the relevant Traditional Owners. The Company is a party to heritage agreements with the determined Native Title holders which covers a majority of the tenements. Prior to commencing significant ground disturbing activities, including exploration, the Company will need to consult with the relevant local Traditional Owners regarding the likely impact that the proposed activities may have on such areas. There is no guarantee that the Company will be able to deal with Aboriginal heritage issues in a satisfactory or timely manner and accordingly such issues may increase the proposed time periods for the conduct of the Company’s proposed activities, lead to increased costs for such activities (in obtaining the required consents and/or approvals) and also limit the Company’s ability to conduct its proposed activities on the relevant Tenement.

The Aboriginal Cultural Heritage Act 2021 (WA) (ACH Act), had proposed to strengthen the Western Australian Government’s authority to regulate land use (including mining activities) with respect to areas and objects of cultural significance to Aboriginal and Torres Strait Islander people in accordance with their traditional laws and customs, was passed by the Parliament of Western Australia in December 2021 and took effect on 1 July 2023. However, on 8 August 2023 the Western Australian Government confirmed its intention to repeal the ACH Act and revert back to the previous Aboriginal Heritage Act 1972 (WA) (AH Act) (with limited amendments), with the Aboriginal Heritage Legislation Amendment and Repeal Bill 2023 (WA) (Repeal Bill) introduced into Parliament on 9 August 2023and received royal assent on 24 October 2023.

The Registrar of Aboriginal Sites maintains a register of Aboriginal Sites protected under the AH Act in addition to a record of other heritage places which may have cultural significance to Aboriginal people but are yet to be assessed for the purposes of the AH Act, or fail to satisfy the criteria specified under the AH Act. An ‘Aboriginal Site’ under the AH Act may be an archaeological site, a sacred or ceremonial site or a place of importance or significance which is associated with Aboriginal people and should be preserved because of its significance to the cultural heritage of the State and to Aboriginal people.

Under the AH Act, it is an offence to damage or in any way alter an ‘Aboriginal Site’ without the consent of the Minister for Aboriginal Affairs (Minister) under section 18, with a further obligation to inform the Minister of any new information the holder becomes aware of in relation to the relevant Aboriginal Site to which the Section 18 consent relates. Importantly, if the Minister is informed of new information by way of notification from the holder of a Section 18 consent, the Minister must make a decision in respect of that new information. The Minister may suspend the Section 18 consent while making a decision, during which period the holder will not be able to rely on its authority.

Reliance on Key Personnel:

Recruiting and retaining qualified personnel are important to the Company’s success. The number of persons skilled in the exploration and development of mining properties is limited and competition for such persons is strong. There can be no assurance that there will be no detrimental impact on the Company if such persons employed by the Company from time to time cease their employment with the Company.

Commodity prices:

The Company’s future prospects and the share price will be influenced by the prices obtained for the commodities produced and targeted in the Company’s development and exploration programs. Commodity prices fluctuate and are impacted by factors including the relationship between global supply and demand for minerals, forward selling by producers, costs of production, geopolitical factors (including trade tensions), hostilities and general global economic conditions. Commodity prices are also affected by the outlook for inflation, interest rates, currency exchange rates and supply and demand factors. These factors may have an adverse effect on Company’s production and exploration activities and any subsequent development and production activities, as well as its ability to fund its future activities.

Future funding requirements:

The Company’s activities will require expenditure going forward and any additional equity financing required may be undertaken at lower prices than the current market price or may involve restrictive covenants which limit the Company’s operations and business strategy. Although the Company believes additional funding can be obtained, no assurances can be made appropriate funding will be available on terms favourable to the Company or at all. If Company is unable to obtain additional financing as required, it may be required to scale back its exploration and development program. In addition, the Company’s ability to continue as a going concern may be diminished.

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2024 Annual Report • 21

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Economic factors:

The operating and financial performance of the Company is influenced by a variety of general economic and business conditions, including levels of consumer spending, oil prices, inflation, interest rates and exchange rates, supply and demand, industrial disruption, access to debt and capital markets and government fiscal, monetary and regulatory policies. Changes in general economic conditions may result from many factors including government policy, international economic conditions, significant acts of terrorism, hostilities or war or natural disasters. A prolonged deterioration in general economic conditions, including an increase in interest rates or a decrease in consumer and business demand, could be expected to have an adverse impact on the Company’s operating and financial performance and financial position. The Company’s future possible revenues and share price can be affected by these factors, which are beyond the control of the Company.

Occupational health and safety:

Exploration and production activities may expose the Company’s staff and contractors to potentially dangerous working environments. Occupational health and safety legislation and regulations differ in each jurisdiction. If any of the Company’s employees or contractors suffers injury or death, compensation payments or fines may be payable and such circumstances could result in the loss of a licence or permit required to carry on the business. Such an incident may also have an adverse effect on the Company’s business and reputation.

Environmental Regulation:

The Group’s operations are subject to environmental regulation under the law in Australia. The Directors monitor the Group’s compliance with environmental regulation under law, in relation to its exploration and future mining activities. The Directors are not aware of any compliance breach arising during the year and up to the date of this report.

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 2024, however reporting requirements may change in the future.

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22 • Dynamic Metals

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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	Nil
Former directorships in last 3years	Jindalee Lithium Limited - resignation effective 01/02/2024 iCetana Limited – resignation effective 11/05/2021
Special responsibilities	Chairman
Interests in shares and options	Ordinary Shares Options	350,000 500,000

L Dudfield B.ScNon-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 Lithium Limited – Executive Director
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 Lithium 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 anyinfluence.	750,000 500,000

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2024 Annual Report • 23

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

Information on Directors (continued)

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 Lithium 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

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 2024, and the number of meetings attended by each director were:

Name	Board of Directors	Board of Directors
	Meetings Held	Meetings Attended
J Mannolini	7	7
K Wellman	7	7
L Dudfield	7	7

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.

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24 • Dynamic Metals

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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 2024 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 23 - 24.

(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 2024.

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 or performance rights. Options or performance rights 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.

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2024 Annual Report • 25

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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 ESIP 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.

	2024	2023
Total Comprehensive profit/ (loss) for the year	2,890,923	(838,876)
Profit/ (loss) per share (cents)	5.90	(3.66)
Share Price	$0.15	$0.32
Market Capitalisation	$7.35M	$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 and performance rights, subject to approval by Shareholders.

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

Dynamic received 100% of “yes” votes on its Remuneration Report for the 2023 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.

(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.

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26 • Dynamic Metals

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

		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	2024	50,000	-	5,500	-	27,295	82,795	32.97%
	2023	22,917	-	2,406	-	27,704	53,027	52.25%
L Dudfield	2024	30,000	-	-	-	27,295	57,295	46.99%
	2023	13,750	-	1,444	-	27,704	42,898	64.58%
Executive Directors
K Wellman	2024	240,000	11,045	26,400	1,186	52,706	331,337	15.91%
	2023	110,769	31,941	11,631	861	171,294	326,496	52.46%

(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 was on and from the Company’s successful listing on the ASX. Mr Mannolini’s appointment is contingent upon successful reelection 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. 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 was 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 and Performance Rights over shares in Dynamic Metals Limited are granted under the Group’s ESIP. 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 or performance rights 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.

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2024 Annual Report • 27

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:

Name	Number of options granted	Grant date	Vesting date and exercisable date	Expiry date	Exercise price	Fair value per option at grant 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.

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28 • Dynamic Metals

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Unlisted Options - 2,000,000 - - - 2,000,000 1,000,000 1,000,000	Ordinary fully paid shares - - - - 250,000 250,000 - -	K Wellman	Unlisted Options - 500,000 - - - 500,000 250,000 250,000	Ordinary fully paid shares1 - - - - 750,000 750,000 - -	L Dudfield	Unlisted Options - 500,000 - - - 500,000 250,000 250,000	Ordinary fully paid shares - - - - 250,000 250,000 - -	J Mannolini	year	options during the	compensation exercise of forfeited year	Name the year as year on the expired/ during the the year	the start of Shares granted during the options changes the end of exercisable	2023 Balance at Options/ Received Number of Other Balance at Vested and Unvested	Unlisted Options 2,000,000 - - - - 2,000,000 2,000,000 -	Ordinary fully paid shares 250,000 - - - - 250,000 - -	K Wellman	Unlisted Options 500,000 - - - - 500,000 500,000 -	Ordinary fully paid shares1 750,000 - - - - 750,000 - -	L Dudfield	Unlisted Options 500,000 - - - - 500,000 500,000 -	Ordinary fully paid shares 250,000 - - - 100,000 350,000 - -	J Mannolini	year	options during the	compensation exercise of forfeited year	Name the year as year on the expired/ during the the year	the start of Shares granted during the options changes the end of exercisable	2024 Balance at Options/ Received Number of Other Balance at Vested and Unvested	financial year by key management personnel and their associated related parties.	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	*(j)* *Equity instruments held by key management personnel*

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2024 Annual Report • 29

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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.

(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 $33,000 (2023: $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 09/12/2022 500,000 09/12/2022 500,000 09/12/2022 100,000 09/12/2022 100,000 16/01/2023 1,212,500	Date vested & exercisable 16/01/2023 16/01/2024 16/01/2024 16/01/2024 16/01/2024 16/01/2024 16/01/2024 16/01/2024 16/01/2023	Expiry Date 16/01/2026 16/01/2026 16/01/2026 16/01/2026 16/01/2026 16/01/2026 16/01/2026 16/01/2026 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.

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30 • Dynamic Metals

DIRECTORS’ REPORT

DYNAMIC METALS LIMITED

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

Grant Date 01/07/2024 01/07/2024	Number Expiry Date Vesting Condition 350,000 30 June 2027 Each Class A Performance Right will vest on 30 June 2025 upon the Company achieving a volume weighted average price for 20 consecutive trading days on which trades of the Shares are recorded on ASX (20 Day VWAP) exceeding AUD$0.30 at any time between 1 July 2024 and 30 June 2025 (Class A Milestone) 99,338 30/06/2027 Vests immediately

No performance right holder has any right under the performance right 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 or performance rights 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 2024 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 .

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 2024 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.

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2024 Annual Report • 31

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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 62.

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

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K Wellman Managing Director

Perth 18 September 2024

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32 • Dynamic Metals

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2024

Note Other Income Interest income Fair value movement on financial assets 10 Gain / (loss) on Tenement Sale 7 Expenses Share-based payment expense 16 Employee benefits expense Corporate and regulatory expenses Exploration Expenditure Depreciation and amortisation expense 8, 9 Finance costs Gain / (loss) on sale of property plant & equipment Other expenses 3 Total Expenses Profit/ (Loss) before income tax Income tax expense 4 Profit/ (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 profit/ (loss) per share (cents per share) 17 Diluted profit/ (loss) per share (cents per share) 17	2024 $ 2023 $
	124,778 85,101 111,641 17,647 4,421,675 -
	4,658,094 102,748
	(139,108) (327,256) (204,186) (79,864) (284,360) (268,147) (64,111) - (53,864) (17,137) (4,672) (2,283) (8,659) - (285,830) (246,937)
	(1,044,790) (941,624)
	3,613,304 (838,876) (722,381) -
	2,890,923 (838,876)
	2,890,923 (838,876)
	5.90 (3.66) 5.90 (3.66)

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

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2024 Annual Report • 33

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2024

Note CURRENT ASSETS Cash and cash equivalents 5 Trade and other receivables 6 Prepayments Total Current Assets NON-CURRENT ASSETS Trade and other receivables 6 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 Income tax payable 4 Total Current Liabilities NON-CURRENT LIABILITIES Lease liabilities 8 Provisions – employee entitlements 12 Deferred tax liability 4 Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS/ (LIABILITIES) EQUITY Contributed equity 14 Retained earnings/ (accumulated losses) Reserves 15 TOTAL EQUITY	2024 $ 2023 $
	2,171,429 4,413,493 3,978,141 133,990 8,878 17,109
	6,158,448 4,564,592
	1,000,000 - 5,212,225 3,916,370 25,785 66,792 56,596 54,485 442,092 282,353
	6,736,698 4,320,000
	12,895,146 8,884,592
	458,884 188,016 74,975 52,243 31,414 37,466 65,311 -
	630,584 277,725
	- 31,414 3,435 1,427 657,070 -
	660,505 32,841
	1,291,089 310,566
	11,604,057 8,574,026
	8,962,304 8,962,304 2,041,592 (849,331) 600,161 461,053
	11,604,057 8,574,026

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

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34 • Dynamic Metals

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2024

Consolidated Notes Balance at 1 July 2022 Total comprehensive loss for the year: Loss for the period 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 Total comprehensive profit for the year: Profit for the year Total comprehensive profit for the year Transactions with owners in their capacity as owners Share-based payments 15 Balance at 30 June 2024	Contributed equity Share-based payment reserve Retained earnings/ (Accumulated losses) Total equity $ $ $ $
	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
	- - 2,890,923 2,890,923
	- - 2,890,923 2,890,923
	- 139,108 - 139,108
	8,962,304 600,161 2,041,592 11,604,057

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

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2024 Annual Report • 35

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2024

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 Proceeds from the disposal of tenements Proceeds from the disposal of property, plant and equipment 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	2024 $ 2023 $
	(313,535) (399,719) 114,036 85,101
	(199,499) (314,618)
	(2,406,800) (1,672,629) (32,900) (12,077) - 251,713 430,000 - 9,273 -
	(2,000,427) (1,432,993)
	(42,138) (10,443) - 6,171,547
	(42,138) 6,161,104
	(2,242,064) 4,413,493 4,413,493 -
	2,171,429 4,413,493

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

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36 • Dynamic Metals

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

1. CORPORATION INFORMATION

These financial statements of Dynamic Metals Limited for the year ended 30 June 2024 were authorised for issue in accordance with a resolution of directors on 17 September 2024.

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. MATERIAL 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 2024 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.

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2024 Annual Report • 37

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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

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38 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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.

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2024 Annual Report • 39

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

DYNAMIC METALS LIMITED

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.

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.

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40 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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.

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2024 Annual Report • 41

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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, performance rights 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.

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42 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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.

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2024 Annual Report • 43

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

Issued capital

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares, performance rights 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 2024. 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.

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44 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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.

3. OTHER EXPENSES

Other expenses include the following specific expenses:

OTHER EXPENSES her expenses include the following specific expenses:
Investor relations expense Insurance expense Other	2024 $ 2023 $ (185,835) (77,387) (21,178) (33,766) (78,817) (135,784)
	(285,830) (246,937)

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2024 Annual Report • 45

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

4. TAXATION

(a) Income tax expense Current tax Deferred tax Recognition of prior year deferred taxes 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 Recognition of prior year deferred taxes Closing Balance – deferred tax (asset)/ liability (b) Numerical reconciliation of income tax expense to prima facie tax payable Profit/ (loss) before income tax: Income tax expense/(benefit) at the Australian tax rate of 30% (2023: 30%) Tax effect of amounts which are not deductible in calculating taxable income: Non-deductible (income)/expenses Share-based payments Recognition of prior year deferred taxes Income tax losses not recognised Total income tax expense	2024 $ 2023 $
	65,311 - 1,058,847 - (401,777)
	722,381 -
	- -
	- -
	- - 1,058,847 - (401,777) -
	657,070 -
	3,613,304 (838,876)
	(1,083,991) (251,663) (1,565) 9,780 41,732 98,177 (401,777) - - 143,706
	722,381 -

Dynamic Metals Limited has Group carried forward revenue tax losses of $Nil as at 30 June 2024 (30 June 2023: carried forward losses $1,887,355) and carried forward capital losses of $nil (30 June 2023: $0).

Dynamic Metals Limited is considered to be not a base rate entity for income tax purposes and is therefore subject to income tax at a rate of 30% (2023: 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.

5. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Cash at bank Cash on deposit Other	2024 $ 2023 $ 1,127,536 4,371,298 1,020,763 20,000 23,130 22,195
	2,171,429 4,413,493

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46 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

6. TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES
Current Trade receivables1 Receivable from Jindalee Lithium Ltd (‘JRL’)2 GST Receivable Other Non-Current Trade receivables	2024 $ 2023 $ 3,960,000 - - 36,000 - 83,392 18,141 14,398 1,000,000 -
	4,978,141 133,990

1 The Group received the funds on 15th July 2024.

2Reimbursement receivable from JRL in accordance with the Implementation Deed signed between JRL and Dynamic Metals Limited on 16 November 2023. The Implementation Deed was signed to facilitate the spin-out between JRL and the Group completed on 16 January 2024.

7. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE

Balance at beginning of year Exploration acquired Exploration expenditure incurred Exploration expenditure sold during the year Exploration expenditure written off Balance at the end of the year	2024 $ 2023 $ 3,916,370 - - 2,246,581 2,055,961 1,669,789 (666,422) - (93,684) -
	5,212,225 3,916,370

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

On 1 March 2024 the Company executed a binding Joint Venture and farm in agreement with a 100% owned subsidiary of Mineral Resources Limited (ASX: MIN) (“MinRes”), whereby, Dynamic sold 40% of its lithium rights on the Widgiemooltha Project (“Project”) tenements for a purchase price of $5M (excl GST). Of the purchase price, $400k (excl GST) was paid immediately as a signing fee and $3.6M (excl GST) in cash that occurred on 15[th] July 2024, with a deferred payment of $1M (excl GST) on 1 July 2025.

During the period the Group sold various tenements and mineral rights generating the following financial impacts:

Gross profit Exploration expenditure sold during the year Gain/ (loss) on tenement sale	2024 $ 5,088,097 (666,422)
	4,421,675

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

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2024 Annual Report • 47

FOR THE YEAR ENDED 30 JUNE 2024

8. OFFICE LEASE

a) Right-of-use asset Right-of-use asset - at cost Less: accumulated amortisation Balance at the end of the year 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	2024 $ 2023 $ 77,044 77,044 (51,259) (10,252)
	25,785 66,792
	66,792 - - 77,044 (41,007) (10,252)
	25,785 66,792
	68,880 - - 77,044 4,672 2,283 (42,138) (10,447)
	31,414 68,880
	2024 $ 2023 $ 31,414 37,466 - 31,414
	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 Disposals Less: depreciation expense for year Carrying amount at end of year	2024 $ 2023 $
	74,442 61,542 (17,846) (7,057)
	56,596 54,485
	54,485 50,390 32,900 10,980 (14,968) - (12,857) (6,885)
	56,596 54,485

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48 • Dynamic Metals

FOR THE YEAR ENDED 30 JUNE 2024

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Opening balance Additions1 Fair value movement Closing balance	2024 $ 2023 $
	282,353 - 48,098 264,706 111,641 17,647
	442,092 282,353

1In 2024, shares in the capital of Western Mines Group Ltd (ASX:WMG) acquired on the sale of the Mulga Rock tenement. In 2023, shares 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.

11. TRADE AND OTHER PAYABLES

. TRADE AND OTHER PAYABLES
Trade payables Accruals	2024 $ 2023 $
	429,983 99,693 28,901 88,323
	458,884 188,016

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

. PROVISIONS – EMPLOYEE ENTITLEMENTS
Current Liability Provision for annual leave Non-Current Liability Provision for long service leave	2024 $ 2023 $
	74,975 52,243 3,435 1,427
	78,410 53,670

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2024 Annual Report • 49

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

DYNAMIC METALS LIMITED

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

Profit/ (loss) after income tax Share-based payments Depreciation and amortisation Finance costs Fair value movement on financial assets Gain on sale of tenement Exploration expenditure Provisions - Employee benefits Income tax expense Change in operating assets and liabilities during the financial year: Decrease in trade and other receivables Increase in prepayments Decrease in payable to Jindalee Lithium Limited Increase/ (decrease) in trade and other payables Net cash outflow from operating activities 14. CONTRIBUTED EQUITY 2024 Shares Ordinary shares - fully paid 48,985,001 Movements in ordinary share capital Details Date 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 Lithium 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 Balance 30 June 2024	2023 Shares 48,985,001 Shares 1 35,000,000 1,485,000 4,813,510 7,686,490 48,985,001 48,985,001		2024 $	2024 $	2023 $
			2,890,923 139,108 53,864 4,672 (111,641) (4,421,675) 64,111 - 722,381 115,849 8,231 - 334,678		(838,876) 327,256 17,137 2,283 (17,647) - - 53,670 - 356,053 (16,388) (64,899) (133,207)
			(199,499)		(314,618)
			2024 $ 8,962,304 Issue price $0.2 $0.2 $0.2 $0.2		2023 $ 8,962,304 $
			Issue price $0.2 $0.2 $0.2 $0.2
					10 7,000,000 297,000 962,702 1,537,298 (834,706)
					8,962,304
					8,962,304

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.

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50 • Dynamic Metals

FOR THE YEAR ENDED 30 JUNE 2024

15. 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	2024 $ 2023 $ 461,053 - - 133,797 139,108 327,256 600,161 461,053

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 $139,108 (2023: $327,256).

Employee Securities Incentive Plan

Dynamic Metals Limited ESIP 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 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 ESIP allows the Group to issue free options or performance rights 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 ESIP.

Summary of Options

Set out below are summaries of options granted during the current and prior 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 3,000,000 - 1,200,000 - - - 1,200,000 1,200,000 - 1,212,500 - - - 1,212,500 1,212,500 -
	5,412,500 - - - 5,412,500 5,412,500 -

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
3,000,000
-
1,200,000
-
-
-
1,200,000
1,200,000
-
1,212,500
-
-
-
1,212,500
1,212,500
-

5,412,500
-
-
-
5,412,500
5,412,500
-

Weighted average exercise price: $0.30

The weighted average remaining contractual life of share options outstanding at the end of the financial year was 1.6 years (2023: 2.6).

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2024 Annual Report • 51

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

16. SHARE BASED PAYMENT TRANSACTIONS (continued)

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

	Optionsgranted	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 (16 January2023).		The options will vest one year after the date of admission of the Company to the Official List of the ASX (16 January2023).	The options vested on the date of admission of the Company to the Official List of the ASX (16 January 2023).	The options will vest one year after the date of admission of the Company to the Official List of the ASX (16 January2023).
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

		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(16 January2023).		Vest immediately
Number issue to		Mr Mannolini (Non-executive director): 500,000 Mr Dudfield(Non-executive director): 500,000		Lead managers (consultants): 1,212,500

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52 • Dynamic Metals

FOR THE YEAR ENDED 30 JUNE 2024

17. LOSS PER SHARE

. LOSS PER SHARE
Profit/ (loss) used in calculation of basic and diluted loss per share Basic profit/ (loss) per share (cents per share) Diluted profit/ (loss) per share (cents per share) Weighted average number of ordinary shares used as the denominator in calculating basic and diluted loss per share.	2024 $ 2023 $
	2,890,923 (838,876) 5.90 (3.66) 5.90 (3.66) 48,985,001 22,949,138

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 2024 (2023: 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.

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2024 Annual Report • 53

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

(c) Categories of Financial Instruments

Financial Assets Current Cash and cash equivalents Trade and other receivables Total Current Financial Assets Non-current Trade and other receivables Financial assets at fair value through profit and loss Total Non-Current Financial Assets Financial Liabilities Current Trade and other payables Lease liabilities Total Current Financial Liabilities Non-current Lease liabilities Total Non-Current Financial Liabilities	2024 $ 2023 $
	2,171,429 4,413,493 3,978,141 133,990
	6,149,570 4,547,483
	1,000,000 - 442,092 282,353
	1,442,092 282,353
	458,884 188,016 31,414 37,466
	490,298 225,482
	- 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 4.85%	2024 $ 2023 $
	1,127,536 4,393,493 1,043,893 20,000
	2,171,429 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.

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54 • Dynamic Metals

NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

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

2024 Trade and other payables Lease liability Total 2023 Trade and other payables Lease liabilities Total	Carrying Amount $ Contractual Cash Flows $ Less than 1 Year $ 2-5 Years $ >5 Years $
	458,884 458,884 458,884 - - 31,414 31,414 31,414 - -
	490,298 490,298 490,298 - -
	188,016 188,016 188,016 - - 68,880 68,880 37,466 31,414 -
	256,896 256,896 225,482 31,414 -

(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

2024 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 $
	2,171,429 - - 2,171,429 4,978,141 - - 4,978,141 442,092 - - 442,092
	7,591,662 - - 7,591,662
	458,884 - - 458,884 31,414 - - 31,414
	490,298 - - 490,298

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2024 Annual Report • 55

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

19. FINANCIAL AND CAPITAL RISK MANAGEMENT (continued)

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 $ Level 3 $ 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

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	2024 $ 331,045 32,687 1,186 107,296	2023 $ 179,377 15,481 861 226,702
	472,214	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	2024 $ 29,500	2023 $ 25,000
	29,500	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.

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56 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

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 (2023: $3,947,537):

2024	Due within	Due within	Due within	Due within	Due after
	1	year	1	- 5 years	5 years		Total
	$		$		$		$
Commitments		1,367,798		2,635,704		-	4,003,502

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.

Refer to Note 20 for Key Management Personnel compensation. Detailed remuneration disclosures are provided in the remuneration report on page 24 to 30.

During the prior 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 in the year ended 30 June 2024 $
	2,000,000 224,000 52,706 500,000 55,000 27,295 500,000 55,000 27,295
	3,000,000 334,000 107,296

Refer to Note 16 Share based payments for further detail.

d) Transactions with other related parties

Other transactions with Jindalee Lithium Ltd

1. Expenses paid by Jindalee Lithium 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	2024 2023 $ $
	6,756 419,853 - 45,108 - 249,760 - -
	6,756 714,721

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2024 Annual Report • 57

FOR THE YEAR ENDED 30 JUNE 2024

25. PARENT ENTITY FINANCIAL INFORMATION

The following details information related to the parent entity, Dynamic Metals Limited, at 30 June 2024 and 30 June 2023.

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 Retained earnings/ (accumulated losses) Reserves Total equity Financial Performance Profit/ (loss) for the year Other comprehensive income Total comprehensive profit/ (loss)	2024 2023 $ $
	6,158,447 4,306,009 6,918,469 4,561,065
	13,076,916 8,867,074
	630,584 277,719 956,445 32,843
	1,587,029 310,562

	11,489,887 8,556,512
	8,962,304 8,962,304 1,927,422 (866,845) 600,161 461,053
	11,489,887 8,556,512
	2,783,376 (856,390) - -
	2,783,376 (856,390)

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

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58 • Dynamic Metals

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

26. CONTROLLED ENTITIES

						Investment	at Cost
	% of	held		Country of	Date of	2024	2023
Controlled Entity	2024	2023	Class	Incorporation	Acquisition	$	$
HiTec Minerals Pty Ltd	100%	100%	Ord	Australia	11/01/2023	962,702	962,702

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

No matter or circumstance has arisen since 30 June 2024 that has significantly affected the Group’s operations, results or state of affairs, or may do so in future years, other than as follows.

On 1 July 2024 the Company issued a total of 449,338 performance rights to employees under the Company’s ESIP plan.

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2024 Annual Report • 59

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

29. CONSOLIDATED ENTITIES DISCLOSURE

		% of share capital	% of share capital	Country of	Country of
			held		residency for
Controlled Entity	Type of entity	2024	2023	Incorporation	taxpurposes
HiTec Minerals Pty Ltd	Body corporate	100%	100%	Australia	Australia

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60 • Dynamic Metals

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 2024 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.
The consolidated entity disclosure statement in page 60 is true and correct as at 30 June 2024.

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:

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K Wellman

Managing Director 18 September 2024 at Perth, Western Australia

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2024 Annual Report • 61

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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 2024, 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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HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA
Director
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Dated this 18[th] day of September 2024 Perth, Western Australia

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62 • Dynamic Metals

DYNAMIC METALS LIMITED INDEPENDENT AUDITOR’S REPORT AUDITOR’S INDEPENDENCE DECLARATION

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 2024, 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 material accounting policy information, the consolidated entity disclosure statement and the director’s 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 2024 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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60
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2024 Annual Report • 63

DYNAMIC METALS LIMITED INDEPENDENT AUDITOR’S REPORT

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 Expenditure As disclosed in note 7 to the financial statements, during the year ended 30 June 2024 the Company capitalised exploration and evaluation expenditure was carried at $5,212,225. The recognition and recoverability of the exploration and evaluation expenditure was considered a key audit matter due to: • The significance of the balance to the Consolidated Entity’s financial position; • The level of judgement required in evaluating management’s application of the requirements of AASB 6_Exploration for and_ Evaluation of Mineral Resources (“AASB 6”). AASB 6 is an industry specific accounting standard requiring the application of significant judgements, estimates and industry knowledge. This includes specific requirements for expenditure to be capitalised as an asset and subsequent requirements which must be complied with for capitalised expenditure to continue to be carried as an asset; and • The assessment of impairment of mineral exploration expenditure being inherently difficult.	Our audit procedures included but were not limited to: • Assessing management’s determination of its areas of interest for consistency with the definition in AASB 6 Exploration and Evaluation of Mineral Resources (“AASB 6”); • Assessing the Consolidated Entity’s rights to tenure for a sample of tenements; • By reviewing the status of the Consolidated Entity’s tenure and planned future activities, reading board minutes and discussions with management we assessed each area of interest for one or more of the following circumstances that may indicate impairment of the mineral exploration expenditure: • 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.

Key Audit Matter

How our audit addressed the Key Audit Matter

Capitalised Exploration and Evaluation
Expenditure
As disclosed in note 7 to the financial statements,
during the year ended 30 June 2024 the Company
capitalised exploration and evaluation expenditure
was carried at $5,212,225.
The recognition and recoverability of the exploration
and evaluation expenditure was considered a key
audit matter due to:
•
The significance of the balance to the
Consolidated Entity’s financial position;
•
The level of judgement required in evaluating
management’s
application
of
the
requirements of AASB 6_Exploration for and_
Evaluation of Mineral Resources (“AASB 6”).
AASB 6 is an industry specific accounting
standard
requiring
the
application
of
significant
judgements,
estimates
and
industry knowledge. This includes specific
requirements for expenditure to be capitalised
as an asset and subsequent requirements
which must be complied with for capitalised
expenditure to continue to be carried as an
asset; and
•
The assessment of impairment of mineral
exploration expenditure being inherently
difficult.

Our audit procedures included but were not limited
to:
•
Assessing management’s determination of its
areas of interest for consistency with the
definition in AASB 6 Exploration and Evaluation
of Mineral Resources (“AASB 6”);
•
Assessing the Consolidated Entity’s rights to
tenure for a sample of tenements;
•
By reviewing the status of the Consolidated
Entity’s tenure and planned future activities,
reading board minutes and discussions with
management we assessed each area of interest
for one or more of the following circumstances
that may indicate impairment of the mineral
exploration expenditure:
• 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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64 • Dynamic Metals

DYNAMIC METALS LIMITED INDEPENDENT AUDITOR’S REPORT

Key Audit Matter Gain/(loss) on tenement sale As disclosed in note 7 to the financial statements, the Group sold 40% of its Lithium rights on the Widgie Mooltha Project for a purchase price of $5 million. The Company has recorded gain on tenement sale totalling $4,421,675.

We considered this as a key audit matter because of the size and nature of the transactions.

How our audit addressed the Key Audit Matter

As part of our audit procedures, the following audit procedures were performed:

Analysing agreements to identify the key terms and conditions of sale;
• Evaluated the substance of the sale using the terms and conditions of the underlying transaction agreements;
• Verify cash consideration to bank statements;
• Ensuring that capitalized exploration expenditure that relates to the sold tenements were offset against the sales proceeds
• Assessing the adequacy of the disclosures included in notes 7 to the financial statements.

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 2024, 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.

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2024 Annual Report • 65

DYNAMIC METALS LIMITED INDEPENDENT AUDITOR’S REPORT

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, and the consolidated entity disclosure statement that is true and correct and is free of 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.

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

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66 • Dynamic Metals

DYNAMIC METALS LIMITED INDEPENDENT AUDITOR’S REPORT

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.

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 2024. 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 2024, complies with section 300A of the Corporations Act 2001.

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HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA
Director
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Dated this 18[th] day of September 2024 Perth, Western Australia

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64
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2024 Annual Report • 67

ADDITIONAL INFORMATION

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 6 September 2024:

	Number of Shareholders	Number of Ordinary Shares
1 – 1,000	19	2,779
1,001 – 5,000	60	203,463
5,001 – 10,000	68	604,516
10,001 – 100,000	182	8,281,941
100,001 and over	51	39,892,302
	380	48,985,001

There are 48 shareholders holding unmarketable parcels (being a minimum $500 parcel at $0.155 per unit) totalling 73,930 shares.

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

	Number of Ordinary Shares	% of Ordinary Shares
JINDALEE LITHIUM LIMITED	12,500,001	25.52%
OCEANVIEW ROAD PTY LTD	5,992,234	12.23%

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 ($)	QuanPty	Number of Holders
16/1/2026	0.30	5,412,5000	7

Performance Rights

As at the date of this report, the unissued ordinary shares of Dynamic Metals Limited under performance rights is 449,338 held by 5 holders.

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.

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68 • Dynamic Metals

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Performance Rights

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

Restricted Securities

There are currently the following restricted securities on issue:

Restricted Securities There are currently the following restricted securities on issue:
DESCRIPTION	NUMBER
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 6 September 2024

Name	Number of Ordinary Fully Paid Shares Held	% of Issued Ordinary Capital Held
JINDALEE LITHIUM LIMITED	12,500,001	25.52%
OCEANVIEW ROAD PTY LTD	5,992,234	12.23%
Mr Patrick Michael Loghnan	2,350,000	4.80%
SSH - Pillage Investments PtyLtd	2,000,000	4.08%
Amrita Capital PtyLtd	1,845,705	3.77%
TBB NSW PTY LTD	1,080,000	2.20%
KAREN JENNIFER PITTARD	1,000,000	2.04%
JAYLEAF HOLDINGS PTY LTD	1,000,000	2.04%
KALE CAPITAL CORPORATION LIMITED	900,000	1.84%
MOUNTS BAY INVESTMENTS PTY LTD	775,000	1.58%
LindsayDudfield	750,000	1.53%
MR MICHAEL PATRICK LYNCH	716,205	1.46%
MR ERIC ANTHONY FREDERICK BENNIK	662,346	1.35%
BNP PARIBAS NOMINEES PTY LTD	582,569	1.19%
SPACEFACE PTY LTD	522,500	1.07%
ROSSDALE SUPERANNUATION PTY LTD	447,500	0.91%
MORYTON PTY LTD	400,000	0.82%
CHIODO TRADING PTY LTD	387,500	0.79%
Justin Mannolini	350,000	0.71%
RECO HOLDINGS PTY LTD	350,000	0.71%
Total	34,611,560	70.66%

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2024 Annual Report • 69

DYNAMIC METALS LIMITED Additional information

Tenement List

Tenement	Status	Location	% Owned by Dynamic Metals Limited
E15/1563	Granted	Western Australia	100%
E15/1624	Granted	Western Australia	100%
E15/1645	Granted	Western Australia	100%
E15/1680	Granted	Western Australia	100%
E15/1691	Granted	Western Australia	100%
E15/1697	Granted	Western Australia	100%
E15/1700	Granted	Western Australia	100%
E15/1705	Granted	Western Australia	100%
E15/1712	Granted	Western Australia	100%
E15/1713	Granted	Western Australia	100%
E15/1720	Granted	Western Australia	100%
E15/1721	Granted	Western Australia	100%
E15/1722	Granted	Western Australia	100%
E15/1736	Granted	Western Australia	20%
E15/1747	Granted	Western Australia	20%
E15/1752	Granted	Western Australia	20%
E15/1753	Granted	Western Australia	100%
E15/1754	Granted	Western Australia	100%
E15/1765	Granted	Western Australia	100%
E15/1789	Granted	Western Australia	100%
E15/1802	Granted	Western Australia	100%
E15/1816	Granted	Western Australia	100%
E15/1818	Granted	Western Australia	100%
E15/1838	Application	Western Australia	100%
E15/1840	Application	Western Australia	100%
E15/1865	Application	Western Australia	100%
E15/1880	Application	Western Australia	100%
E15/2074	Application	Western Australia	100%
E16/575	Application	Western Australia	100%
E16/610	Application	Western Australia	100%
E16/620	Application	Western Australia	100%
E16/621	Application	Western Australia	100%
E16/640	Application	Western Australia	100%
E16/641	Application	Western Australia	100%
E16/642	Application	Western Australia	100%
E16/643	Application	Western Australia	100%
E20/1001	Application	Western Australia	100%
E25/562	Granted	Western Australia	20%
E27/651	Application	Western Australia	100%
E27/652	Granted	Western Australia	100%
E27/666	Granted	Western Australia	100%
E27/693	Application	Western Australia	100%
E28/3138	Granted	Western Australia	100%
E28/3150	Granted	Western Australia	100%

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70 • Dynamic Metals

DYNAMIC METALS LIMITED Addition

E28/3151	Granted	Western Australia	100%
E28/3152	Granted	Western Australia	100%
E28/3153	Granted	Western Australia	100%
E28/3223	Granted	Western Australia	100%
E28/3430	Application	Western Australia	100%
E30/548	Application	Western Australia	100%
E30/578	Application	Western Australia	100%
E31/1299	Granted	Western Australia	100%
E31/1316	Granted	Western Australia	100%
E31/1324	Application	Western Australia	100%
E36/895	Granted	Western Australia	100%
E36/953	Granted	Western Australia	100%
E36/994	Granted	Western Australia	100%
E37/1414	Granted	Western Australia	100%
E37/1472	Application	Western Australia	100%
E37/1502	Application	Western Australia	100%
E38/3540	Application	Western Australia	100%
E38/3714	Application	Western Australia	100%
E38/3725	Application	Western Australia	100%
E38/3849	Application	Western Australia	100%
E38/3917	Application	Western Australia	100%
E39/2350	Application	Western Australia	100%
E40/405	Granted	Western Australia	100%
E40/430	Application	Western Australia	100%
E45/5381	Application	Western Australia	100%
E51/1909	Granted	Western Australia	20%
E51/1946	Granted	Western Australia	20%
E51/1977	Granted	Western Australia	80%
E51/2073	Application	Western Australia	80%
E53/2129	Granted	Western Australia	100%
E53/2131	Granted	Western Australia	100%
E53/2148	Application	Western Australia	100%
E63/1981	Granted	Western Australia	100%
E63/2005	Granted	Western Australia	100%
E63/2088	Granted	Western Australia	100%
E63/2237	Granted	Western Australia	100%
E63/2238	Application	Western Australia	100%
E63/2261	Granted	Western Australia	100%
E70/6169	Granted	Western Australia	100%
E77/2575	Granted	Western Australia	20%
E77/2576	Granted	Western Australia	20%
E77/2701	Granted	Western Australia	20%
E77/2887	Granted	Western Australia	100%
E80/5027	Granted	Western Australia	10%
M53/1078-I	Granted	Western Australia	20%
P15/6112	Granted	Western Australia	100%
P15/6246	Granted	Western Australia	100%
P15/6268	Granted	Western Australia	100%

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2024 Annual Report • 71

DYNAMIC METALS LIMITED Addition

P15/6342	Granted	Western Australia	100%
P15/6367	Granted	Western Australia	100%
P15/6584	Granted	Western Australia	100%
P15/6585	Granted	Western Australia	100%
P15/6586	Granted	Western Australia	100%
P15/6587	Granted	Western Australia	100%
P51/3145	Granted	Western Australia	20%
P51/3146	Granted	Western Australia	20%
P51/3147	Granted	Western Australia	20%
E36/1100	Application	Western Australia	0%
E27/737	Application	Western Australia	0%
EL5/2016	Granted	Tasmania	30%
E31/1399	Application	Western Australia	0%
E31/1400	Application	Western Australia	0%
E31/1401	Application	Western Australia	0%

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72 • Dynamic Metals

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2024 Annual Report • 73

ASX:DYM dynamicmetals.com.au

ABN 37 659 154 480

AI assistant

DYNAMIC METALS LIMITED — Annual Report 2024

64809_rns_2024-09-17_482767de-b0c2-4fae-9e12-e005b1ddc5ae.pdf

2024 Annual Report

CORPORATE DIRECTORY

Board and Management

Legal Advisors

Share Registry

Registered Office & Principal Place of Business

Securities Exchange Listing

Auditors

CONTENTS

CHAIRMAN’S LETTER

Dear Fellow Shareholders,

The 2024 financial year saw a number of significant achievements by Dynamic Metals against the backdrop of challenging equity and commodity market conditions.

REVIEW OF OPERATIONS

WIDGIEMOOLTHA PROJECT

Higginsville Gold Prospect

Mandilla Gold Prospect

D3 & D5 Nickel Prospects

Sunday Soak Nickel Prospect

Dordie Far West Nickel Prospect

LAKE PERCY

DEEP WELL

JOINT VENTURE PROJECTS

Widgiemooltha Lithium JV – 60% DYM / 40% MIN

Pioneer Dome Lithium Prospect

Franks Far Southeast and Spargos East Prospects

Prospect Ridge JV - 70% GWR / 30% DYM

GENERATIVE PROJECTS

COMPETENT PERSONS STATEMENT

FORWARD-LOOKING STATEMENTS

DIRECTORS’ REPORT

Directors

Principal activities

Financial results

Dividends

Significant changes in the state of affairs

Review of operations

Financial

Events since the end of the financial year

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

Disclosure of business strategies and prospects – material business risks

Title Risk:

Tenure Risk:

Nature of Mineral Exploration:

DYNAMIC METALS LIMITED

Operational Risk:

Private land, Reserve Land and Land Access Risk:

Project Delays and Cost Overruns:

Native Title and Aboriginal Heritage:

DYNAMIC METALS LIMITED

Reliance on Key Personnel:

Commodity prices:

Future funding requirements:

Economic factors:

Occupational health and safety:

Environmental Regulation:

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

DYNAMIC METALS LIMITED

(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

DYNAMIC METALS LIMITED

DIRECTORS’ REPORT

(h) Service Agreements

J Mannolini

L Dudfield

DYNAMIC METALS LIMITED Annual Report 2024