METALSGROVE MINING LTD — Capital/Financing Update 2025

Mar 30, 2025

ASX RELEASE 31 March 2025

Desert Metals divests greenfields joint venture rights, focusing on Adzope and Tengrela South Gold Projects

Desert Metals Limited (ASX: DM1, Desert Metals or the Company ) is pleased to announce it has assigned the joint venture rights to the Vavoua, Vavoua West and Kounahiri West projects (the Projects ) in central Côte d'Ivoire to ASX-listed MetalsGrove Mining Limited (ASX: MGA, or MetalsGrove ) to allow Desert Metals to focus on exploration at its flagship Adzope and Tengrela South Gold Projects.

Vavoua, Vavoua West and Kounahiri West are all permit applications by Ivorian company Generale Des Mines Et Carrieres SARL ( GEMICA ) and Desert Metals has the right to earn a majority interest in each of the permits pursuant to existing joint venture arrangements (refer DM1 news release dated 4 December 2023). The Projects are all greenfield exploration projects that have not been subject to modern mineral exploration.

Desert Metals is assigning the joint venture rights to MetalsGrove for the following consideration:

1. A$50,000 cash upon the grant of the Vavoua licence;

2. A$50,000 cash upon the grant of either the Vavoua West or Kounahiri West licence (whichever is granted first);

3. A$1 million cash on the estimation of a JORC-compliant Mineral Resource of greater than 500,000 ounces of gold (or gold equivalent) and a grade of greater than 1 g/t gold (or gold equivalent) on any or all of the Projects (maximum amount payable of A$3 million); Subject to the mutual agreement of the parties and compliance with ASX Listing Rules, settlement may be by the issue of MGA shares; and

4. 1% net smelter royalty regarding production from the Projects capped at the greater of A$3 million or the royalty amount in respect of the first 125,000 ounces of gold production.

Desert Metals Managing Director Stephen Ross said:

“Throughout our exploration programs in Côte d'Ivoire since 2023, we have strategically concentrated our resources and expertise on our two flagship projects: the highly prospective Adzope gold project in the southern region and the advanced Tengrela South gold project in the north. While the GEMICA joint venture projects demonstrate significant potential for gold mineralisation, particularly given their location along the same structural corridor as the producing Abujar gold mine, we had earmarked them for future greenfields exploration pending the grant of permits as well as budget allocation.

“The opportunity to transfer these joint venture rights to MetalsGrove while maintaining exposure to future discoveries represents a significant strategic advantage for all stakeholders involved.”

REGISTERED OFFICE: Level 2, Suite 9, 389 Oxford Street, Mount Hawthorn WA 6016 T: +61 8 9383 9997 E: admin@desertmetals.com.au W: www.desertmetals.com.au ACN: 617 947 172

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For further information contact:
Stephen Ross	Kristin Rowe - NWR Communications
Managing Director	Investor Relations
P+61 8 9383 9997	P+61 0404 889 896
Estephen.ross@desertmetals.com.au	E kristin@nwrcommunications.com.au

About Desert Metals Limited

Desert Metals Limited is an ASX-listed (ASX:DM1) gold exploration and development company. DM1 has the right to earn a majority interest under low-cost joint venture arrangements in three gold projects covering 1,073.95km² of granted mineral permits and permit applications in Côte d’Ivoire, West Africa. DM1 currently owns 51% of the Tengrela South project 30km south of the operating Sissingué gold mine and is earning 80% of the highly prospective Adzope gold project in the south of the country.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which DM1 operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forwardlooking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by several factors and subject to various uncertainties and contingencies, many of which will be outside DM1’s control. DM1 does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of DM1, its directors, employees, advisors, or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by DM1. Nor does this announcement constitute investment or financial product advice (nor tax, accounting, or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

www.desertmetals.com.au

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