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DYNAMIC METALS LIMITED Capital/Financing Update 2024

Oct 27, 2024

64809_rns_2024-10-27_4926fcb8-88f5-4eea-8ebd-894ff6eca44a.pdf

Capital/Financing Update

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28 October 2024

ASX ANNOUNCEMENT

SIGNIFICANT HIGH-GRADE ROCK CHIPS RESULTS FROM COGNAC WEST

HIGHLIGHTS

  • 39 rock chip sample assays from priority gold prospect Cognac West, where three soil anomalies were recently identified[1] , have returned high-grade results including:

  • 2,040g/t Au in DM1007

  • 53.1g/t Au in DM1010

  • 5.91g/t Au in DM1006

  • 8.95g/t Au in DM1008

  • 3.27g/t Au in DYM2424091006

  • Infill soil sampling has commenced to refine drill targets for 2025

  • Dynamic well-funded for exploration with a cash balance of $5.3M[2]

Dynamic Metals Limited ( ASX: DYM ) (“ Dynamic ” or “the Company ”) is pleased to provide an update on gold exploration activities on its Goldrush tenement (E15/1753), which includes the Cognac West prospect, part of the broader Widgiemooltha Project located in the Western Australian goldfields.

The Company previously announced results from soil sampling completed at the Cognac West prospect where three strong gold anomalies were identified with several high-grade results including 2.1g/t Au, 0.49g/t Au and 0.22g/t Au in soils[1] .

Assays have now returned from rock chip sampling of float, sub crop and outcrop across the Goldrush tenement with encouraging results from multiple locations at Cognac West, including an exceptional 2,040g/t Au in DM1007.

Managing Director, Karen Wellman commented:

"We are thrilled with these bonanza rock chip results as they robustly reflect the mineral prospectivity that our exploration ground holds. One of the best pathfinders for gold is the presence of gold itself and it would appear we have exceptional potential for further discoveries at our aptly named Goldrush tenement.

“The area now has multiple indicators pointing to potential significant gold mineralisation at a time when the gold price has hit $4,000/oz, including our large soil anomalies, these latest rock chip sample results and recent gold finds reported by prospectors.

“We are extremely optimistic and excited about our ongoing exploration activities at Cognac West, with infill soil sampling currently underway to inform our drill target definition for testing in early 2025 .”

T 61 8 6558 0637 . E [email protected]

Cognac West Prospect

The Cognac West prospect area has been subject to near surface historic exploration dating back to the 1970s including soil sampling and shallow drilling, with historic data sets often incomplete and limited to gold assays only. A peak historic drill hole gold assay from the 1990s includes 1m @ 91.3g/t from 41m in JSA025[3] . The area is structurally complex with interpreted second order structures around a late felsic intrusion that is approximately 500m to the east of the major structure in the area, the Republican Thrust. Dynamic has begun gathering new, high-confidence data as part of the Company’s systematic approach to exploration.

For the first step in this process, Dynamic completed a soil sampling program over an area approximately 3km long and 2km wide and collected samples every 50m along 200m spaced east-west lines. Assay results highlighted two areas of +0.025ppm (25ppb) gold anomalism[3] , Anomaly A and Anomaly B. The Company returned to the prospect in early October 2024 to extend soil sampling lines to the east and in areas where previous soil samples had been insufficient, and subsequently identified a third high-grade anomaly[1] .

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Figure 1. Cognac West soil and rock chip sampling results

During this field campaign the Company undertook mapping and rock chip sampling across the Cognac West area. Mapping around the eastern +25ppb Au soil anomaly (Anomaly A) established that the majority of the surface geology is residual soil with limited felsic volcaniclastic outcrop. Using the initial round of soil sampling as a guide, field crews identified a sub cropping northeast trending quartz vein adjacent to anomalous gold in soil results. Eight rock chip/float samples were taken along 50m of the exposed quartz trend.

Sample DM1007 ( 2,040 g/t Au ) was taken from a shallow (<1m deep) pit at the NE end of the outcropping vein (Figure 2) and quartz dominated samples DM1006 (5.91g/t Au) and DM1008 (8.95g/t Au) are immediately southwest and northwest respectively, defining a very high-grade trend. Sample DM1010 (53.1g/t Au) was located approximately 40m east of the northeast gold trend defined by samples DM1006-1008 and could be indicative of a second parallel Au mineralised structure that is poorly exposed.

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Figure 2. Sample DM1007 @ 2,040g/t Au. Hole from where DYM1007 was taken (left), quartz sample sent to lab (top right) and gold panned from dollied sample in the field

# Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Mapping around the western +25ppb Au soil anomaly (Anomaly B) identified discrete outcropping gabbro intrusions, the margins of which show evidence of a network of highly weathered shear zones within mafic volcanics that may be related to a gold mineralising system. The mapping work confirmed that outcrop and residual soil dominate the surficial geology allowing the Company to employ infill soil sampling to further define the geometry of the gold anomalism established to date. Rock chips samples were taken from outcropping geology with the best result to date coming from an iron rich brecciated quartz vein (sample DYM24091006 - 3.27g/t Au).

Exploration licence 15/1753 is referred to by the Dynamic team as the “Goldrush” tenement due to the extensive gold prospecting activities that have taken place on the tenement. Over 68 nuggets have been reported as located on the tenement to the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) in the preceding 9 months, including the examples noted in Figure 3 below.

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Figure 3. Examples of gold detected and reported by prospectors on E15/1753

# Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.

Background

Dynamic has a dominant land position in the well-established, multicommodity Widgiemooltha mineral field, prospective for gold, lithium and nickel (Figure 4). Gold was first discovered in the region in 1892 and since then multiple million-ounce gold deposits have been delineated.

Dynamic’s tenements are located adjacent to the St Ives Gold Camp (JSE: GFI), Mandilla gold project (ASX: AAR) and the Higginsville & Chalice gold mines (ASX: WGX).

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Figure 4 Widgiemooltha Project tenement map with gold prospects and major deposits

Next Steps

Infill soil sampling has commenced on 100m spaced lines with 25m between samples which will inform drill target definition for testing. The Company will then initiate permitting processes in anticipation of drilling in early 2025.

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

Fiona Marshall

Karen Wellman

Managing Director White Noise Communications [email protected] [email protected] +61 8 6558 0637 +61 400 512 109

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 9/10/2024: “High grade gold soil anomaly identified at Cognac West”

  2. Dynamic Metals ASX Announcement 18/10/2024: “Quarterly Activities Report”

  3. Dynamic Metals ASX Announcement 19/09/2024: “Widgiemooltha Gold Exploration Update”

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.

ABOUT DYNAMIC METALS

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Dynamic Metals (ASX: DYM) is a dedicated exploration company focused on advancing an underexplored portfolio of minerals critical to decarbonisation and the growing battery metals market.

Dynamic’s flagship project, Widgiemooltha, covers an extensive area of ~800km[2] extending between Norseman and Kambalda. The Widgiemooltha region is highly prospective for nickel and gold and more recently emerged in significance for its lithium mineralisation and prospectivity. In July 2024, Dynamic completed a binding joint venture and farm-in agreement with Mineral Resources Limited (ASX: MIN) (MinRes), whereby Dynamic sold 40% of its lithium rights on the Widgiemooltha Project for $5m. MinRes can increase its interest to 65% by spending $15m and then to 80% by sole funding to a Decision to Mine.

In addition to Widgiemooltha, Dynamic holds an extensive portfolio of exploration tenure in Western Australia, including several joint venture positions in Western Australia where other parties are funding ongoing exploration to earn an interest in the project. These projects are prospective for gold, nickel, lithium, and iron ore.

DYNAMIC METALS CAPITAL STRUCTURE

Share Price: $0.195/share

Cash 30/9/2024 : $5.32M Shares on Issue: 49M Market Cap : $9.55M

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Portfolio of Exposure to global Substantial Team has On-ground Attractive future-facing decarbonisation exploration extensive activities valuation and critical minerals and battery targets generated experience and complete and leverage to projects in metals thematic across Au, Li, Ni, successful track drilling exploration Australia Cu and PGE record commenced success

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ANNEXURE A

All rock chip and grab sample results from Dynamic’s Cognac West prospect. Coordinates are MGA Zone 51. All results are reported for transparency although not all samples were expected to contain gold.

Prospect Sample ID Northing Easting Au ppm Short Description
Cognac West DYM24090702 6504390 391885 0.11 Quartz vein with biotite
Cognac West DYM24090703 6504473 391946 0.009 Weathered gabbro
Cognac West DYM24090704 6504481 392015 0.009 Felsic intrusive
Cognac West DYM24090801 6504898 391875 0.009 Schist float from surface
Cognac West DYM24090802 6504050 392032 <0.005 Quartz vein
Cognac West DYM24090901 6504594 391985 0.049 Quartz float, subsurface
Cognac West DYM24091001 6504189 391972 <0.005 Quartz and outcropping gabbro
Cognac West DYM24091002 6504112 392501 <0.005 Gabbro, fresh
Cognac West DYM24091003 6504099 392139 0.009 Quartz float
Cognac West DYM24091004 6504077 392143 0.088 Quartz float
Cognac West DYM24091005 6504071 392102 <0.005 Weathered quartz vein
Cognac West DYM24091006 6504074 392178 3.27 Breccia quartz vein, iron rich
Cognac West DYM24091007 6504018 392174 0.014 Bucky quartz vein
Cognac West DYM24091008 6504340 391883 0.011 Quartz breccia
Cognac West DYM24091009 6504446 391869 0.036 Quartz subcrop
Cognac West DYM24091010 6504473 391994 <0.005 Milky yellow quartz
Cognac West DYM24091011 6504395 392087 0.427 Quartz float, close proximity to vein
Cognac West DYM24091012 6504461 392130 <0.005 Quartz float
Cognac West DYM24091013 6504970 391968 <0.005 Quartz float
Cognac West DYM24091014 6505004 391931 0.007 Breccia quartz vein
Cognac West DYM24091015 6505007 391983 <0.005 Quartz float
Cognac West DYM24091016 6505027 392030 <0.005 Quartz float
Cognac West DYM24091201 6503770 393716 0.024 Bucky quartz vein
Cognac West DYM24091202 6503097 393544 <0.005 Quartz float
No name DYM24091203 6509253 393862 1.13 Saprolite, volcaniclastics
Cognac West DM1001 6503419 393122 <0.005 Quartz float
Cognac West DM1002 6503426 393123 1.34 Quartz float
Cognac West DM1003 6503430 393127 <0.005 Quartz reef
Cognac West DM1004 6503436 393130 <0.005 Quartz reef
Cognac West DM1005 6503441 393135 0.03 Quartz reef
Cognac West DM1006 6503446 393138 5.91 Quartz reef
Cognac West DM1007 6503450 393142 2,040 Quartz float, subsurface ~0.6m deep
Cognac West DM1008 6503455 393144 8.95 Quartz float
Cognac West DM1009 6503458 393148 0.091 Quartz float
Cognac West DM1010 6503440 393180 53.1 Reef of 80% iron, 20% quartz
Courvoisier DM1011 6508083 394099 0.197 Quartz float
Courvoisier DM1012 6508080 394101 0.547 Quartz float
Courvoisier DM1013 6508074 394103 0.069 Quartz float
Courvoisier DM1014 6508071 394103 0.037 Quartz float

ANNEXURE B

JORC Code 2012 Edition Section 1 Rock Chip Sampling Techniques and Data

Criteria JORC Code explanation Commentary Commentary
Sampling Nature and quality of sampling (eg cut Rock chip samples are used to obtain a point
Techniques channels, random chips, or specific sample of float, sub crop or outcrop at the
specialised industry standard
measurement tools appropriate to the
prospect.
Rock chip samples generally taken at surface
minerals under investigation, such as down unless otherwise stated.
hole gamma sondes, or handheld XRF Rock chip samples were taken across a broad
instruments, etc). These examples should range of rock types to increase understanding
not be taken as limiting the broad meaning of the geology at the prospect.
of sampling.
Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any
measurement tools or systems used.
Aspects of the determination of
mineralisation that are Material to the
Public Report.
In cases where ‘industry standard’ work
has been done this would be relatively
simple (eg ‘reverse circulation drilling was
used to obtain 1 m samples from which 3 kg
was pulverised to produce a 30 g charge for
fire assay’). In other cases more
explanation may be required, such as
where there is coarse gold that has
inherent sampling problems. Unusual
commodities or mineralisation types (eg
submarine nodules) may warrant
disclosure of detailed information.
Drilling Drill type (eg core, reverse circulation, open- Not applicable as no drilling undertaken.
Techniques hole hammer, rotary air blast, auger, Bangka,
sonic, etc) and details (eg core diameter, triple
or standard tube, depth of diamond tails, face-
sampling bit or other type, whether core is
oriented and if so, by what method, etc).
Drill sample Method of recording and assessing core Not applicable as no drilling undertaken.
recovery and chip sample recoveries and results
assessed.
Measures taken to maximise sample
recovery and ensure representative nature
of the samples.
Whether a relationship exists between sample
recovery and grade and whether sample bias
may have occurred due to preferential
loss/gain of fine/coarse material.
Logging Whether core and chip samples have been Field observations were recorded at each
geologically and geotechnically logged to a
level of detail to support appropriate
sample point for soils and rock chips.
Photos were taken of all samples and sample
Mineral Resource estimation, mining locations.
Criteria JORC Code explanation Commentary
studies and metallurgical studies. Rock chip samples will not be used to support
Whether logging is qualitative or Mineral Resource estimation.
quantitative in nature. Core (or costean,
channel, etc) photography.
The total length and percentage of the
relevant intersections logged.
Sub-sampling If core, whether cut or sawn and whether Samples were dry when taken.
techniques quarter, half or all core taken. Average sample weight was 1.05kg.
and sample
preparation
If non-core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet
or dry.
For all sample types, the nature, quality
and appropriateness of the sample
preparation technique.
Quality control procedures adopted for all
sub-sampling stages to maximise
representivity of samples.



Samples pulverized to <75um at the
laboratory.
Multi-element analysis for 36 elements
undertaken by aqua regia digest followed by
ICP-AES (ME-ICP61).
Gold was assayed via 50g fire assay with AAS
finish (Au-AA24).
Overrange gold assayed by fire assay with
gravimetric finish (Au-GRA21 (30g sample) and
Au-GRA22 (50g sample))
Measures taken to ensure that the
sampling is representative of the in situ
Sample size considered appropriate for first
pass exploration.
material collected, including for instance
results for field duplicate/second-half
sampling.
Whether sample sizes are appropriate to
the grain size of the material being
sampled.
Quality of The nature, quality and appropriateness of Samples were submitted to ALS Laboratories
assay data the assaying and laboratory procedures in Perth.
and used and whether the technique is No standards were submitted by Dynamic.
laboratory considered partial or total. Field duplicates were taken at a rate of 1/50
tests For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
during soil sampling.
Standards were used by ALS at 1/10, blanks
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations factors
applied and their derivation, etc.
were 1/20 and duplicates at 1/25.
After high grade gold was identified additional
QAQC was applied with bulk reject samples
reassayed to check sample contamination did
Nature of quality control procedures not occur.
adopted (eg standards, blanks, duplicates,
external laboratory checks) and whether
acceptable levels of accuracy (ie lack of
bias) and precision have been established.
Verification of The verification of significant intersections Field checking of anomalies has been
sampling and by either independent or alternative completed by staff.
assaying company personnel. Sampling personnel movements are logged
The use of twinned holes.
Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.


via GPS.
Results are stored as reported by the
laboratory.
No adjustments to assay data have been
made.
Discuss any adjustment to assay data
Location of Accuracy and quality of surveys used to Locations are reported in metres GDA94 MGA
data points locate drill holes (collar and down-hole Zone 51.
surveys), trenches, mine workings and
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dynamicmetals.com.au
Criteria JORC Code explanation Commentary
other locations used in Mineral Resource Sample locations are surveyed using
estimation. handheld GPS.
Specification of the grid system used. Samples will not be used for Mineral
Quality and adequacy of topographic Resource estimation.
control.
Data spacing Data spacing for reporting of Exploration Spacing of rock chip samples is ad hoc as it is
and Results. dependent on geological features and
distribution Whether the data spacing and distribution
is sufficient to establish the degree of
geological and grade continuity

available outcrop.
No compositing has been applied.
No Mineral Resource has been estimated.
appropriate for the Mineral Resource and
Ore Reserve estimation procedure(s) and
classifications applied.
Whether sample compositing has been
applied.
Orientation of Whether the orientation of sampling There is not enough information to make
data in achieves unbiased sampling of possible assumptions regarding orientation of
relation to structures and the extent to which this is potential mineralised structures.
geological known, considering the deposit type.
structure If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assess and reported if material.
Sample The measures taken to ensure sample Samples were freighted directly to ALS in
security security. Perth by DYM field personnel.
Audits or The results of any audits or reviews of No audits have been completed at this stage.
reviews sampling techniques and data.
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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary Commentary
Mineral Type, reference name/number, location and E 15/1753 is 100% owned by Dynamic Metals Limited.
tenement ownership including agreements or Mineral Resources Limited have purchased 40%
and land material issues with third parties such as interest in the lithium rights in E15/1753, Dynamic
tenure status joint ventures, partnerships, overriding Metals retains 100% of the remaining rights including
royalties, native title interests, historical gold
sites, wilderness or national park and No royalty interest is applicable.
environmental settings.
The security of the tenure held at the time of
reporting along with any known
impediments to obtaining a licence to
operate in the area.
Exploration Acknowledgment and appraisal of Exploration has been undertaken by several
done by other
exploration by other parties.
companies over time including but not limited to
parties WMC and Acacia Resources.
Geology Deposit type, geological setting and style of Historic exploration has primarily been for gold and
mineralisation. nickel.
Exploration is targeting orogenic and intrusive
related gold deposit styles.
Drill hole A summary of all information material to the Not applicable as no drilling is being reported in this
Information understanding of the exploration results announcement.
including a tabulation of the following
information for all Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified
on the basis that the information is not
Material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain
why this is the case.
Data In reporting Exploration Results, weighting All results have been reported for transparency
aggregation averaging techniques, maximum and/or although not all results were expected to carry grade.
methods minimum grade truncations (eg cutting of
high grades) and cut-off grades are usually
Material and should be stated.

No top-cutting has been applied.
No weighted averages or assumptions on metal
equivalents have been made.
Where aggregate intercepts incorporate
short lengths of high grade results and
longer lengths of low grade results, the
procedure used for such aggregation should
be stated and some typical examples of
such aggregations should be shown in
detail.
The assumptions used for any reporting of
Criteria JORC Code explanation Commentary
metal equivalent values should be clearly
stated.
Relationship These relationships are particularly Not applicable as no drilling is being reported.
between important in the reporting of Exploration
mineralisation Results.
widths and
intercept
lengths
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole
length, true width not known’).
Diagrams Appropriate maps and sections (with scales) See main body of announcement for plan including
and tabulations of intercepts should be sample locations.
included for any significant discovery being Summary tables are included in Appendix 1.
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
Balanced Where comprehensive reporting of all All results have been reported as g/t or ppm Au.
reporting Exploration Results is not practicable, All samples are reported for transparency, although
representative reporting of both low and
high grades and/or widths should be
practiced to avoid misleading reporting of
not all samples were expected to carry gold.
All sample locations are shown on diagram in body of
announcement.
Exploration Results.
Other Other exploration data, if meaningful and No additional observations at this time.
substantive material, should be reported including (but
exploration not limited to): geological observations;
data geophysical survey results; geochemical
survey results; bulk samples – size and
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
Further work The nature and scale of planned further Infill soil sampling will be used to infill the identified
work (eg tests for lateral extensions or depth gold anomalies.
extensions or large-scale step-out drilling). Preparations for permitting for drilling initiated.
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future
drilling areas, provided this information is
not commercially sensitive.
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