DYNAMIC METALS LIMITED — Capital/Financing Update 2024

Sep 18, 2024

19 September 2024

ASX ANNOUNCEMENT

WIDGIEMOOLTHA GOLD EXPLORATION UPDATE

HIGHLIGHTS

• Dynamic continues to systematically evaluate and prioritise gold exploration targets across its Western Australian portfolio.

• Priority gold target for immediate exploration identified at Cognac West prospect.

• Two strong gold soil anomalies defined by recent soil sampling:

• Field mapping and rock chip sampling progressing;

• RC drill program to be refined with inputs from field observations.

• 3D modelling of Chalice South prospect with historic drill data and surface geochemical datasets underway.

• Dynamic well funded for exploration after receiving $4M from Mineral Resources as part of the Widgiemooltha lithium joint venture[1] .

Dynamic Metals Limited (ASX:DYM) (“ Dynamic ” or “the Company ”) is pleased to provide an update on gold exploration activities at its Widgiemooltha Project. Dynamic has been advancing gold target generation across its highly prospective goldfields tenement package while also laying the foundation for field testing at its generative projects across Western Australia.

Managing Director, Karen Wellman commented:

“I am excited to share our latest advancements in gold exploration at the Widgiemooltha Project. Our systematic approach has identified promising gold targets at Cognac West and Chalice South, where we are leveraging both historical data and new soil sampling results. The strategic location of our tenements adjacent to major gold producers highlights the potential for significant discoveries.

“With the continued integration of high-quality geological data, we are laying a solid foundation for future exploration and look forward to initiating drilling activities in early 2025.”

Widigemooltha Project

The Widgiemooltha Project is located in one of Australia’s most prolific mineral fields with Dynamic’s tenure stretching between Kambalda and Norseman. The Company’s tenements are adjacent to established gold producers and multiple million ounce gold deposits (Figure 1) including the Goldfields St Ives Gold Camp (JSE:GFI), Astral Resources Mandilla Project (ASX:AAR) and Westgold’s Higginsville Gold Camp and Chalice Gold Mine (ASX:WGX).

Dynamic is undertaking a systematic gold targeting exercise across its Widgiemooltha tenure. The gold targeting process has involved integrating historic exploration datasets, interpreted bedrock geology and structural interpretations built from high quality open file airborne magnetic survey data. Initial findings from the targeting work highlight the Cognac West and Chalice South prospects as two areas that require priority follow up.

ASX DYM

Level 1, 33 Richardson Street, West Perth WA 6005 .

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Figure 1. Dynamic Metals’ tenement map with gold prospects and major gold mines at Widgiemooltha

Cognac West

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[2] . Consequently, 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. The area subject to soil sampling is centered around structural complexity due to interpreted second order structures around a late felsic intrusion that is approximately 500m to the west of the major structure in the area, the Republican Thrust.

704 soil samples were taken and analysed for gold and a multielement suite. Two areas of +0.025ppm (25ppb) anomalism have been defined by the soil sampling (Figure 2) with significant results reported in Appendix A. The Company returned to the prospect last week to extend soil sampling lines to the east and in areas where previous soil samples had been insufficient. Further geological mapping and rock chip sampling was also undertaken whilst in the field, with assay results expected early next month.

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Figure 2. Cognac West prospect area with DYM gold soil sampling results

Chalice South

The Chalice South prospect area is located south of the Chalice Gold Mine (currently held by Westgold Resources ASX:WGX). The local geology is characterised by north-north-west striking, west dipping intercalated mafic and volcanic rock units, bounded by the Pioneer Dome to the east. The area has been subject to various iterations of surface geochemistry, shallow exploration drilling and specific deeper drilling since the discovery of the Chalice gold deposit. Dynamic’s exploration licence 15/1721 is coincident with 14km of greenstone geology and the same structural corridor that hosts the Chalice gold deposit.

The Chalice open pit was mined by Resolute Limited in the late 1990s with a total of 2.9Mt at 5.6g/t for 517,000 ounces produced[3] . A small underground mining operation by Avoca Resources Limited produced a further 993t at 3.91g/t[4] with the mine placed on care and maintenance in 2015.

Dynamic’s plans for this prospective trend begin with unravelling the complex geology and structure to generate targeted areas for further surface geochemistry or drill testing.

Next Steps

Once all new assay and mapping data is received the Company will collate all information to determine priority targets for drill testing and commence permitting in preparation for 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

Karen Wellman

Fiona Marshall

Managing Director White Noise Communications karen@dynamicmetals.com.au fiona@whitenoisecomms.com +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 05/03/2024: “Landmark $20M Lithium-Focused JV with Mineral Resources”

2 Information sourced from Coleman Resources Pty Ltd Annual Report for E15/1427 1 May 2017; publicly available through WAMEX

3 Information sourced from Westgold Resources Limited Final Surrender Report for E63/1071 dated 4 April 2018; publicly available through WAMEX

4 Information sourced from Westgold Resources Limited Annual Report for C111/2004 dated 29 November 2018; publicly available through WAMEX

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

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, iron ore and diamonds.

DYNAMIC METALS CAPITAL STRUCTURE

Share Price: $0.205/share

Cash 30/6/2024 : $2.92M (Pre-MinRes payment)

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Shares on Issue: 49M Market Cap : $10.0M

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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 Li, Ni, Cu, successful track drilling exploration Australia PGE and Au record commenced success

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ANNEXURE A

Significant soil sample results from Dynamic’s Cognac West prospect. Significant results are defined as greater than 0.025ppm/25ppb. Coordinates are MGA Zone 51.

SampleID	Coordinates (MGA)	Coordinates (MGA)	Au		SampleID	Coordinates (MGA)	Coordinates (MGA)	Au
	Northing	Easting	(g/t)			Northing	Easting	(g/t)
SP3750	6505300	392850	0.026		SP4120	6503700	393750	0.025
SP3751	6505300	392900	0.032		SP4122	6503700	393850	0.025
SP3752	6505300	392950	0.041		SP4129	6503500	392000	0.04
SP3755	6505300	393100	0.037		SP4130	6503500	392050	0.026
SP3756	6505300	393150	0.027		SP4131	6503500	392100	0.025
SP3792	6505100	392750	0.095		SP4132	6503500	392150	0.026
SP3821	6504900	392000	0.036		SP4133	6503500	392200	0.038
SP3826	6504900	392250	0.031		SP4134	6503500	392250	0.027
SP3828	6504900	392350	0.033		SP4135	6503500	392300	0.068
SP3838	6504900	392850	0.025		SP4152	6503500	393150	0.059
SP3870	6504700	392250	0.04		SP4153	6503500	393200	0.039
SP3906	6504500	391850	0.042		SP4154	6503500	393250	0.066
SP3907	6504500	391900	0.032		SP4155	6503500	393300	0.04
SP3908	6504500	391950	0.026		SP4156	6503500	393350	0.042
SP3926	6504500	392850	0.043		SP4157	6503500	393400	0.056
SP3950	6504300	391850	0.063		SP4158	6503500	393450	0.03
SP3951	6504300	391900	0.12		SP4160	6503500	393550	0.041
SP3952	6504300	391950	0.053		SP4162	6503500	393650	0.042
SP3953	6504300	392000	0.033		SP4164	6503500	393750	0.042
SP3955	6504300	392100	0.025		SP4165	6503500	393800	0.099
SP3956	6504300	392150	0.027		SP4166	6503500	393850	0.136
SP3958	6504300	392250	0.029		SP4167	6503500	393900	0.033
SP3959	6504300	392300	0.031		SP4202	6503300	393450	0.028
SP3995	6504100	391900	0.028		SP4203	6503300	393500	0.061
SP3996	6504100	391950	0.025		SP4204	6503300	393550	0.037
SP3999	6504100	392100	0.039		SP4207	6503300	393700	0.107
SP4001	6504100	392200	0.028		SP4208	6503300	393750	0.119
SP4014	6504100	392850	0.039		SP4209	6503300	393800	0.074
SP4018	6504100	393050	0.027		SP4210	6503300	393850	0.067
SP4038	6503900	391850	0.031		SP4246	6503100	393450	0.146
SP4039	6503900	391900	0.052		SP4247	6503100	393500	0.06
SP4043	6503900	392100	0.042		SP4248	6503100	393550	0.028
SP4044	6503900	392150	0.028		SP4249	6503100	393600	0.07
SP4045	6503900	392200	0.048		SP4250	6503100	393650	0.057
SP4080	6503900	393950	0.038		SP4251	6503100	393700	0.051
SP4081	6503900	394000	0.027		SP4252	6503100	393750	0.05
SP4084	6503700	391950	0.03		SP4253	6503100	393800	0.057
SP4085	6503700	392000	0.038		SP4254	6503100	393850	0.029
SP4088	6503700	392150	0.037		SP4255	6503100	393900	0.025
SP4089	6503700	392200	0.056		SP4256	6503100	393950	0.039
SP4090	6503700	392250	0.062		SP4289	6502900	393400	0.029
SP4091	6503700	392300	0.083		SP4290	6502900	393450	0.06
SP4098	6503700	392650	0.027		SP4291	6502900	393500	0.034
SP4112	6503700	393350	0.054		SP4299	6502900	393900	0.027
SP4113	6503700	393400	0.047

ANNEXURE B

JORC Code 2012 Edition Section 1 Soil Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut	•	Soil samples were collected at a depth of 30
Techniques	channels, random chips, or specific		cm below surface and sieved in the field to
	specialised industry standard measurement tools appropriate to the		<2mm, achieving a sample weight of approximately 200g.
	minerals under investigation, such as down	•	Rock chip samples were collected in the field
	hole gamma sondes, or handheld XRF		with sample size between 1 and 2 kg.
	instruments, etc). These examples should
	not be taken as limiting the broad meaning
	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 andgeotechnically logged to a		sample point for soils and rock chips.

			Criteria	JORC Code explanation	Commentary
				level of detail to support appropriate	•	There are no drilling results so no drill core or
				Mineral Resource estimation, mining		drill chips.
				studies and metallurgical studies.
				• Whether logging is qualitative or
				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	•	Soil samples were dry when taken.
			techniques	quarter, half or all core taken.	•	Soil samples were sieved in the field to <2mm.
			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. Gold was assayed via 50g fire assay with AA finish. Sample size considered appropriate for first pass exploration.
				• Measures taken to ensure that the
				sampling is representative of the in situ
				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 Kalgoorlie
			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 1/25.
				parameters used in determining the
				analysis including instrument make and
				model, reading times, calibrations factors
				applied and their derivation, etc.
				• Nature of quality control procedures
				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.
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			Criteria	JORC Code explanation	Commentary
				• 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	•	Sample locations surveys using handheld
				other locations used in Mineral Resource		GPS.
				estimation.
				• Specification of the grid system used.
				• Quality and adequacy of topographic
				control.
			Data spacing	• Data spacing for reporting of Exploration	•	Soil sampling occurred on lines spaced 200m
			and	Results.		apart, with samples taken every 50m on the
			distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and	•	line. This considered appropriate for early stage gold exploration. Rock chip samples were taken at select locations based on presence of subcrop or
				Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been	• •	outcrop. No compositing has been applied. No Mineral Resources have been estimated.
				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 placed in bulka bags and
			security	security.		freighted directly to ALS in Kalgoorlie 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 the remaining rights.
	royalties, native title interests, historical	•	No royalty interest isapplicable.
	sites, wilderness or national park and
	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 Avoca Mining.
Geology	• Deposit type, geological setting and style of	•	Historic exploration has primarily been for gold and
	mineralisation.		nickel.
Drill hole	• A summary of all information material to the	•	Not applicable as no drilling has occurred.
Information	understanding of the exploration results
	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	•	Significant results reported in Appendix A are above
aggregation	averaging techniques, maximum and/or		0.025g/t. No top-cutting has been applied.
methods	minimum grade truncations (eg cutting of	•	No weighted averages or assumptions on metal
	high grades) and cut-off grades are usually		equivalents have been made.
	Material and should be stated.
	• 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 enough information is known to comment on
		between	important in the reporting of Exploration		relationship of grade to drill hole angle, or geometry
		mineralisation	Results.		of potential mineralisation.
		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.
			and tabulations of intercepts should be
			included for any significant discovery being
			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 Au.
		reporting	Exploration Results is not practicable,	•	Soil samples are reported above 0.025g/t Au as that is
			representative reporting of both low and		deemed material to early stage gold exploration.
			high grades and/or widths should be
			practiced to avoid misleading reporting of
			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 extensions or large-scale step-out drilling).	•	lithium trend. 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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