DYNAMIC METALS LIMITED — Capital/Financing Update 2023

Aug 6, 2023

7 AUG 2023

ASX ANNOUNCEMENT

PRIORITY NICKEL TARGET DRILLING TO COMMENCE AT WIDGIEMOOLTHA

HIGHLIGHTS

• POW approved for high priority RC drilling at recently granted Democrat tenement[1] , part of the Company’s flagship Widgiemooltha Project

• 12-hole program designed to test interpreted fertile basal contact at nickel prospects D3 and D5

• Drill rig and exploration crew to mobilise to site by end of August

Dynamic Metals Limited ( ASX: DYM ) (“ Dynamic ” or “the Company”) is pleased to announce upcoming exploration plans at the Widgiemooltha Project (“ Widgiemooltha ” or the “ Project ”) in the Goldfields Region of Western Australia.

The Company is in final preparation stages for Reverse Circulation (RC) drilling at the D3 and D5 nickel prospects, at the Democrat area of the Widgiemooltha Project (Figure 1). The Widgiemooltha Project is a significant land holding in a world class nickel province where Dynamic is focussed on realising the potential of underexplored areas. Exploration Licence 15/1753 was granted in June[1 ] and subsequently Dynamic applied for a Programme of Work (PoW), approved in July.

A total of 12 RC holes are planned to be drilled for approximately 1,600m with intention to directly test for fresh rock nickel sulphide mineralisation associated with the ‘basal contact’ at the two prospects. In the context of exploring for Kambalda komatiite type massive sulphide nickel deposits, the basal contact position is a key vectoring tool and is best described as the location where the komatiite stratigraphy is in contact with the underlying basalt.

The Company has interpreted the position of the basal contact at D3 and D5 through field work completed to date, additionally informed by aeromagnetic and surface geochemistry. Confirming this interpretation through RC drilling is considered a high priority for Dynamic due to the strength of coincident geochemical and geophysical anomalies in a globally significant nickel province.

The program is expected to commence by the end of August and estimated to be complete before the quarter end.

ASX DYM

T 61 8 6558 0637 . E enquiry@dynamicmetals.com.au

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Figure 1. Plan view of part of Dynamic’s Widgiemooltha Project, with priority drill targets D3 and D5 against magnetics and known regional nickel deposits.

Democrat Background

Exploration Licence 15/1753 (‘Democrat’) is located within 20km of several Kambalda nickel projects including the Lanfranchi, Cameron, Stockwell, Jan, Foster, and Miitel deposits (Figure 1 & 2). Kambalda is well established as a world class nickel province, with high grade nickel sulphides being produced since it was first discovered in the 1960s[2] .

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Figure 2: Plan view of Dynamic’s Widgiemooltha project with nickel deposits and prospects highlighted

Democrat is located in a structurally complex area with the major regional Republican Thrust fault bisecting the tenement. It is bounded to the east by the Boulder-Lefroy Fault and to the west by the Bluebush ultramafic sequence. Locally, the geology is dominated by meta-sedimentary rocks to the north of the Republican Thrust, and a sequence of mafic and ultramafic rocks to the south.

In assessing the prospectivity of the tenement, the Company reviewed historic mapping and geophysical, geochemical and drilling datasets in the context of the Kambalda nickel ore deposit model and generated several targets for follow up. A key component of advanced nickel targeting is the identification of a fertile

basal contact between the komatiite and the underlying country rock which Dynamic was able to infer from the historic datasets mentioned above.

Observations from field reconnaissance activities carried out by the Dynamic team confirmed the validity of the interpreted basal contact, with the D3 and D5 prospects determined as high priorities for testing.

The D5 prospect presents as an exciting drill target with historic drilling establishing the potential for nickel mineralisation, with 20m @ 0.54% Ni returned in RD122[2] . More recently Mincor Resources’ (now Wyloo) drilling along strike to the south at the Patriot Prospect confirmed the fertility of the ultramafic with 2m @ 0.67% from 107m (MRC750) and 13m @ 0.64% from 19m and 16m @ 0.4% from 49m (MRC749)[3] . Importantly it should be noted that the geophysical signature at Dynamic’s D5 prospect is much stronger than at Patriot. Dynamic plans to drill six west dipping angled RC holes on five sections to test 1.3km strike of the interpreted basal contact.

The D3 prospect is located in the middle of the tenement where six holes will be drilled on three sections to test 400m of interpreted basal contact at depths up to 150m. Anomalous nickel identified in historic WMC drilling combined with magnetic interpretations and soil geochemistry provide the target rationale at D3.

Next Steps

The large regional lithium soil sampling program at Pioneer Dome (Widgiemooltha Project) is expected to finish this week with assays expected within two months[4] .

The Company is still awaiting assays for the Sunday Soak, Higginsville and Mandilla air core (AC) programs which were drilled late last quarter[1] with results anticipated to be received shortly.

Released with the authority of Dynamic Metals’ Board of Directors.

For further information on the Company and our projects, please visit: www.dynamicmetals.com.au

CONTACT

Karen Wellman

Managing Director enquiry@dynamicmetals.com.au +61 8 6558 0637

ABOUT DYNAMIC METALS

Dynamic Metals (ASX: DYM) is a dedicated

exploration company focused on advancing a highly prospective portfolio of future facing critical minerals projects in Australia. The Company completed a successful IPO in January 2023 raising $7 million to fully fund an aggressive exploration program across the portfolio.

Dynamic’s flagship project, Widgiemooltha, covers an extensive area of c.880km[2] extending between Norseman and Kambalda. The region is well known for its numerous nickel and gold mines, but more recently has emerged in significance for its lithium mineralisation and prospectivity.

DYNAMIC METALS CAPITAL STRUCTURE

Share Price: $0.235/share Cash 30 Jun 2023 : $4.41M Shares on Issue: 49M Market Cap : $11.5M

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Portfolio of Exposure to Substantial future-facing global exploration critical minerals decarbonisatio targets projects in n and battery generated Australia metals thematic across Li, Ni, Cu, PGE and Au

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Team has On-ground Attractive extensive activities valuation and experience and complete and leverage to successful track drilling exploration record commenced success

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REFERENCES

Additional details including JORC 2012 reporting tables, where applicable, can be found in the following releases lodged with ASX and referred to in this announcement:

1. Dynamic Metals ASX Announcement 16/06/2023: “Three more prospects drill tested at Widgiemooltha”

2. Dynamic Metals ASX Disclosure 12/01/2023: “Prospectus”

3. Mincor Resources ASX Announcement 26/07/2021: “Quarterly Activities Report”

4. Dynamic Metals ASX Announcement 05/07/2023: “Lithium exploration commences at Pioneer Dome”

COMPETENT PERSONS STATEMENT

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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 STATEMENT

This document may contain certain forward-looking statements. Forward-looking statements include but are not limited to statements concerning Dynamic Metals Limited’s (Dynamic’s) current expectations, estimates and projections about the industry in which Dynamic operates, and beliefs and assumptions regarding Dynamic’s future performance. When used in this document, the words such as “anticipate”, “could”, “plan”, “estimate”, “expects”, “seeks”, “intends”, “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 are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Dynamic and no assurance can be given that actual results will be consistent with these forward-looking statements.