DYNAMIC METALS LIMITED — Capital/Financing Update 2024

Jul 14, 2024

15 July 2024

ASX ANNOUNCEMENT

DYNAMIC COMPLETES LANDMARK

LITHIUM FOCUSED JV WITH MINERAL RESOURCES

HIGHLIGHTS

• Dynamic Metals and Mineral Resources Limited (ASX:MIN) (“MinRes”) have satisfied all conditions precedent for the lithium-focused joint venture (“JV”) on the Widgiemooltha Project, with the parties effectuating completion

• Pursuant to the terms of the JV Dynamic has received $4M in cash payments from MinRes, with a further $1M to be paid in July 2025 in exchange for 40% of the lithium rights at Widgiemooltha (Stage 1)

• MinRes will shortly commence exploration activities with $15M to be sole funded over 4 years to increase its stake in the JV to 65% (Stage 2)

Dynamic Metals Limited (ASX:DYM) (“ Dynamic ” or “the Company ”) is pleased to advise that it has formed a lithium-focused joint venture on the Widgiemooltha Project with MinRes, as initially announced on 5 March 2024.

Dynamic’s Managing Director, Karen Wellman, commented:

“ We are very pleased to announce the successful formation of the significant joint venture with MinRes on our Widgimooltha Project lithium tenements.

“As a leader in Australia's lithium sector, MinRes brings invaluable technical expertise to the project, and we are looking forward to their commencement of the exploration program."

Landmark Lithium-Focused JV and Farm-in

In March 2024[1] , Dynamic entered into a binding term 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 has now sold 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 ”).

From completion, HoldCo and Dynamic have now formed a 40% / 60% unincorporated joint venture. HoldCo has the ability to 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.

ASX DYM

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

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Figure 1: Dynamic’s Widgiemooltha Project tenement map

The Company has received $4 million cash as consideration for the initial sale of 40% of the lithium rights at Widgiemooltha. A final payment of $1 million is due 1 July 2025.

The two parties will now negotiate and execute a formal joint venture agreement and mineral rights sharing agreement, based on the March binding term sheet.

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

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CONTACT

Karen Wellman

Andrew Rowell

Managing Director White Noise Communications karen@dynamicmetals.com.au andrew@whitenoisecomms.com +61 8 6558 0637 +61 400 466 226

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”

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.

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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 early 2024, Dynamic entered into 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-in interest in the project. These projects are prospective for gold, nickel, lithium, iron ore and diamonds.

DYNAMIC METALS CAPITAL STRUCTURE

Share Price: $0.135/share

Cash 31 Mar 2024 : $2.92M Shares on Issue: 49M Market Cap : $6.61M

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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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