Announcement PDF ASX ANNOUNCEMENT: ASX: DAL 15 April 2025 Dalaroo prepares maiden work program for Blue Lagoon Zirconium, Niobium and Rare Earth Project in Greenland ________________________________________________________________________________ Highlights • Dalaroo has advanced planning for upcoming maiden field season at the Blue Lagoon ZrNb-REE project, Greenland. Field work will be conducted towards the end of June 2025. • A program of auger drilling, stream sediment and soil sampling and reconnaissance mapping and sampling has been designed to follow up on historical highly anomalous values returned in a regional stream sediment program undertaken by the Greenland and Denmark Geological Society (‘GEUS”) for uranium in 1979 (refer to ASX release 20th Feb, 2025). • No follow-up work on these results has ever been reported on the tenement. • Dalaroo has secured the services of highly respected and experienced Greenland geologist Ole Christiansen, who has been instrumental in the modern development of metals in Greenland, including Critical Metal’s (NASDAQ: CRML Critical Metals Corp) Tanbreez project. • The Blue Lagoon Project has similar geochemical anomalous footprint to the Kvanefjeld (ASX: ETM Energy Transition Metals) and Kringlerne/Tanbreez multi-element deposits in South Greenland, showing enrichment in critical minerals and high value LREE elements from regional stream sediment sampling. These projects are all hosted within the southwest north-east trending Gadar alkaline intrusive province where Blue Lagoon Is also located. • US administration has continued to show considerable interest in Greenland, highlighting the importance Greenland has for critical metals and their ownership. • Auger drilling to sample alluvial and colluvial material will form a key part of the program. In situ weathering of the alkaline granite might provide bulk tonnage options from beachlike deposits, providing potential low-cost options for mining and separation. Characterising these deposits geochemically is the first step of the evaluation of this potential. ________________________________________________________________________________ Dalaroo Metals Ltd (ASX: DAL, “Dalaroo” or “Company”) is pleased to provide an update on planned activities at the Blue Lagoon Project in Greenland. Dalaroo Metals MD & CEO, Mike Brown commented “We are excited to have advanced a maiden field program at Blue Lagoon, and also secured the services of renowned Greenland geologist Ole Chistiansen. Auger drilling of weathered granite areas will be a key objective of the program. Stream, soil and rock chip sampling and prospecting over the tenement will complete the program. This should provide the first insight into the potential of the project to host heavy mineral sands type deposits of strategic metals and REEs. Placer deposits have obvious benefits on the cost of mining. With the Project being located on the coast with ice free water we are looking forward to getting onto the ground to commence exploration activities in June and report results when in hand.” Figure 1: Project location, GEUS regional stream sediment location and neodymium assay results The large and highly anomalous zirconium, niobium and REE geochemical anomalies over the Project area provides a compelling multi-commodity exploration target. The Vendor has identified the presence of potential bulk tonnage ‘placer’ type deposits from in-situ weathered granite. This is characterised by highly anomalous LREE and Nb signature, which is very similar to the geochemical signature that coincides with 3 other significant REE deposits in South Greenland associated with Gadar Block alkaline intrusives. The Company is looking forward to reporting the results of the work program as they come to hand. HISTORICAL EXPLORATION RESULTS A GEUS regional stream sediment sampling program took a total of 9 stream sediment samples from the current tenement area in 1979. These indicate the area as being anomalous in zirconium, niobium and REEs, particularly the magnetic rare earth neodymium (see Figure 1). Significantly the samples returned background to very low-level uranium and thorium content, which is critical for shipping and permitting. There is no record of any exploration having been undertaken on the tenement area to follow-up the anomalous results. Table 1: Selected assay results from all GEUS stream sediment sampling within MEL 2022-07. Source (https://eng.geus.dk) REE LREE HREE La (ppm) Ce (ppm) Nd (ppm) Sm (ppm) Eu (ppm) Tb (ppm) Yb (ppm) Lu (ppm) Th (ppm) U (ppm) Nb (ppm) Zr (ppm) 281028 270 410 200 35 2.8 4.7 14 1.3 21 5.6 129 2059 281030 600 870 360 65 4.7 11 39 5 51 18 294 1063 281031 590 990 410 65 4.2 11 31 3 61 14 279 5054 281032 220 290 160 28 2.7 4.4 18 2.4 22 7.1 193 3773 282850 710 1300 520 79 12 12 60 5.2 88 14 326 9360 282851 550 870 390 66 5 9.7 39 4.2 45 11 13 246 118 3520 Sample_ID 282852 282853 780 1800 500 80 5.9 11 44 4.7 64 10 126 3286 282854 660 1400 500 75 9.9 11 49 5.3 73 18 200 7240 WORK PROGRAM Dalaroo is pleased to announce it has engaged the services of renowned Greenland geologist Ole Christiansen for exploration work on the project. Mr Christiansen has over 35 year’s experience exploring Greenland, and is currently a consulting geologist, which has included work for the Tanbreez deposit. He has spent considerable time exploring for gold, base metals as well as critical metals within alkalic complexes, including carbonatite and syenite complexes. He was the former CEO of Nuna Minerals A/S, a crowned company that became listed on Nasdaq OMX Copenhagen in 2008. Two principal work streams will be conducted. The first will involve auger drilling of beach like deposits around the Blue Lake shore and surrounds. This will be undertaken to test their potential to host weathered finer grained heavy mineral sands/fractions, where elements such as niobium, zirconium and REEs would be expected to be concentrated by weathering. The second will consist of a program of detailed geochemical sampling (stream, soils and rocks) and prospecting over the whole tenement area. Results from the sampling will be used to vector a follow-up field program. Subject to these results being positive and received in a timely manner it may be possible to complete a second field trip, with field season typically open until the end of September 2025. GEOLOGICAL SETTING The Paleoproterozoic Province in South Greenland is a cratonic rift province consisting of sandstones, and a variety of alkaline volcanic and plutonic igneous rocks. The Mesoproterozoic Gadar alkaline intrusive complexes intruded into this rift setting. The MEL 2022-07 exploration licence lies within the Helene granite unit, which forms the westernmost exposure of the large Nunarsuit Complex. The Nunarsuit Complex is the largest and amongst the youngest of numerous Gardar age intrusions in South Greenland. It is comprised of alkaline syenite and granitic units (see Figure 2). The Project lies within the mapped Helene alkaline granite, which forms the westernmost unit of the Nunarsuit Complex. It is bounded to the east by an extensive alkalic syenite. Figure 2: SW Greenland Geology and mineral deposits and occurrences. Blue Lagoon association with Gadar Block alkaline intrusives with a similar setting to other major multi-metallic deposits. Modified from Steenfelt et al 2016 NEXT STEPS AND INDICATIVE NEWSFLOW Assay results from the sampling program are expected to be received from mid-August 2025 onwards. It is anticipated that if these results are favourable, a follow-up field trip would be conducted prior to the end of September 2025. A portable XRF will assist the teams to identify any anomalous or mineralised areas, which should expedite the planning for follow-up work prior to receipt of assays. The exploration season in this part of Greenland is more extensive than most of Greenland, running from May to September each year. Figure 3: Colluvial and alluvial weathering accumulations from granitic country rock surrounding Blue Lake. Source: Vendor Figure 4: Coarse crystal rich 'beach' at Blue Lake. Source: Vendor. ENDS Authorised for release to the ASX by the Board of Dalaroo Metals Ltd. For more Information: Please visit our website for more information: www.dalaroometals.com.au Michael Brown, Managing Director on +61 8 6185 2004 CAUTIONARY STATEMENT: • • • The historical results included in this announcement are being reported in accordance with the JORC Code 2012 for the first time; Whilst a Competent Person has not done sufficient work to verify the results through additional sampling, nothing has come to the attention of the Company that has caused it to question the accuracy or reliability of the GEUS’s previous historical results. Verification via stream, soil, rock chip and auger drilling will be undertaken during the work program the Company is planning to undertake this season. A review of the sampling procedures has led the CP to consider these results are credible and reliable, having been extensively verified by a GEUS led review in 1999, and there is nothing that would indicate these results should not be relied upon. Given they are regional stream sediments, which by nature are standard industry practice for first pass reconnaissance to identify potential areas of interest, and there is sufficient information to disclose these historical results in accordance with the JORC Code 2012, they have been included (see Appendix Tables 1A-3A). COMPETENT PERSON The information in this release that relate to the historical results on the Project is based on information compiled by Dalaroo Metals Ltd and reviewed by Mr Michael Brown who is a Geologist and Member of the AIG. Mr Brown has sufficient experience that is relevant to the style of mineralisation, the type of deposit under consideration and to the activities undertaken to qualify as a Competent person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Brown consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. Where reference is made to previous releases of exploration results in this announcement, the Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and all material assumptions and technical parameters underpinning the exploration results included in those announcements continue to apply and have not materially changed. FORWARD-LOOKING INFORMATION This release may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning the planned exploration program and other statements that are not historical facts. When used in this report, the words "could", "plan", "estimate", "expect", "intend", "should" and similar expressions are forward-looking statements. Although Dalaroo believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forwardlooking statements. CAUTIONARY NOTE The statements and information contained in this release are not investment or financial product advice and are not intended to be used by persons in deciding to make an investment decision. In releasing this report, Dalaroo has not considered the objectives, financial position or requirements of any particular recipient. Accordingly, potential investors should obtain financial advice from a qualified financial advisor prior to making an investment decision. Appendix Table 1A: Stream Sediment Sampling locations (WGS84 / UTM Zone 22N) Sample_ID 281028 281030 281031 281032 282850 282851 282852 282853 282854 Easting 652519 651619 651716 653211 651372 652040 651912 651072 652192 Northing 6742530 6742267 6741981 6742385 6744257 6745797 6745462 6746316 6746743 Table 2A: Tenement Details Lic code Owner name Applic date Applic code Grant_date MEL 202207 Ox Resources Pty Ltd Greenland 2021-12-16 M-MLSA325 2022-05-20 Lic_type Mineral Exploration Licence (MEL) Expiry date Lic status Lic type id 2027-0519 Active License 268 Table 3A: JORC Code, 2012 Edition – Table 1 and 2- Exploration results Table 1 Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF 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 Stream Samples • All stream sediment samples collected in the reconnaissance geochemical mapping programme were treated in the same way. They were collected in paper bags, which were dried in the field, wrapped in newspaper, packed in boxes, and subsequently shipped to GGU in Copenhagen. • Figure 1 shows the locations of samples, which are considered to be sufficient for regional geochemical surveying. 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 techniques • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, facesampling bit or other type, whether core is oriented and if so, by what method, etc). Drill sample • Method of recording and assessing core 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 geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining 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• If core, whether cut or sawn and sampling whether quarter, half or all core taken. techniques • If non-core, whether riffled, tube and sample sampled, rotary split, etc and whether preparation sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • NA • NA • NA • Samples were prepared at the GGU secured facility in Copenhagen. The samples were dried at 60C and sieved into three grain size fractions. The < 0.1 mm fraction has been used for analysis, the fraction from 0.1 to 1 mm has been retained in storage, while the fraction above 1 mm has been discarded. Quality of assay data and laboratory tests • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • 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. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the 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. • No duplicates were taken from sample location. • Samples were assayed via Instrumental Neutron Activation Analysis (Act INA) at Activation Laboratories Ltd. (Act), Ancaster, Ontario, Canada. • Zirconium and niobium were assayed for Radio-isotope excited energydispersive X-ray Fluorescence Spectrometry using a cadmium (XCD) methodology at the Risø National Laboratory, Roskilde, Denmark. o The sieved sample fractions (<0.15 or <0.1 mm) were poured directly into the sample containers consisting of an aluminium ring with a bottom of thin mylar foil. The sample container would typically contain 20-30 g material, although only the layer close to the mylar foil (area ca. 38 cm2) would be exposed to the X-rays. The results may have been affected by bias introduced during the filling of samples into the containers because the heavy minerals tend to be concentrated in the bottom layer (closest to the detector). The analyses were monitored by internal lab standards and repeated analysis showed that results were fairly reproducible. • Both laboratories used internal standards for calibrations. A subsequent validation in 1999 of the entire stream sediment database taken by GEUS reviewed all laboratory results and considered them within acceptable levels (Compilation of data sets for a geochemical atlas of West and South Greenland based on stream sediment surveys 1977 to 1997.” GEUS, 1997-41. Agnette Steenfelt). Verification of sampling and assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. • No verification has been undertaken by the CP since that undertaken by GEUS in 1999. • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • 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 assessed and reported if material. • The measures taken to ensure sample security. • Streams sampling is based on streams being present and trying to get a representative picture of surrounding landform- there is no sampling density applied. • Field locations were plotted on aerial photos and subsequently digitized- as such they are not considered accurate, but are appropriate given they are from a regional stream sediment program. • WGS 84/UTM Zone 22N • Assay data underwent extensive review in the 1999 compilation to ensure internal consistency between all reported data given regional samples were taken over a period of 20 years and assayed between 1991-1997 at different laboratories and using different techniques. • All samples reported were collected in the same field program in 1979, and are thus considered consistent and reliable. • Samples were flown and kept in a secured facility in Copenhagen. Complete sample security protocols with respect to delivery to the laboratories is unknown. Audits or reviews • The results of any audits or reviews of sampling techniques and data. • Note reference to large study to review and compile all stream sediments for the GUES national database. Table 2 Reporting of Exploration Results Criteria JORC Code explanation Commentary Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical 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. • The project consists of one Mineral Exploration, MEL 2022-07, licence ID# 268.. • It was granted to Ox Resources Pty Ltd Greenland on 20/05/2022 and expires on 19/5/2027. MELs can be renewed by an additional 5 years. • Dalaroo entered into a Binding Heads of Agreement with Ox Resources Pty Ltd on Feb 19th 2025. Subject to meeting certain payments and meeting work commitments: HEADS OF AGREEMENT TERMS The key terms of the Agreement are as follows: • An exclusive Option to acquire a 100% legal and beneficial interest in the Project (“Option”); • In consideration for the Option, Dalaroo agrees to pay the Vendor an Option fee of A$50,000; • The Option is exercisable by Dalaroo at any time prior to the Option expiring on 31 December 2025; • If Dalaroo exercises its Option (“Completion”) on or before 31 December 2025 then it agrees to pay the Vendor: o A$150,000 in cash; o Reimbursement of exploration expenditure incurred by the Vendor in the two years prior to the execution date of the Agreement, up to a maximum of $150,000, in either cash or shares in Dalaroo, at the election of Dalaroo. If paid in shares the shares will be valued on the 5-day VWAP of Dalaroo prior to the date of issue, subject to obtaining shareholder approval for the issue of the shares. o The Vendor will, subject to shareholder approval, be entitled to the following shares on the achievement of the relevant milestones below:  A$125,000 of shares subject to Dalaroo announcing a Ground Penetrating Radar Program determining the volume of loose material or the first drilling program on the Project within 24 months from Completion;  A$150,000 of shares subject to Dalaroo announcing a Maiden Mineral Resource Estimate on the Project within 24 months form Completion, at a deemed issue price equal to the lower of the 5-day VWAP prior to the date of issue or A$0.05 per share; and  A$175,000 of shares subject to Dalaroo releasing a Maiden Scoping Study on the Project within 24 months from Completion, at a deemed issue price equal to the lower of the 5-day VWAP prior to the date of issue or $0.10 per share,(together, the “Milestone Shares”). • The ‘Conditions Precedent’ include Dalaroo: o undertaking exploration expenditure of not less than A$150,000 on the Project; o Completing legal and technical due diligence on the Project to the satisfaction of Dalaroo; o obtaining all regulatory approvals or waivers pursuant to the ASX Listing Rules, Corporations Act or any other applicable law to the allow the transaction to occur; o obtaining a waiver from ASX Listing Rule 7.3.4 to permit the issue of the Milestone Shares outside the 3-month period for the date that shareholder approval is obtained; o obtaining shareholder approval for the purposes of ASX Listing Rule7.1 for the issue of the Milestone Shares; and o obtaining all third-party approvals and consents necessary to complete the transaction. • Post Completion the title and risk in the Project will pass to Dalaroo and it is obligated to spend A$500,000 on exploration expenditure on the Project within the first 12 months, inclusive of the Option Expenditure Commitment previously expended by the Purchaser, and a further A$500,000 in the second 12 months after that. • The Vendor, nor its associated parties, are permitted to apply for any new tenements with 5 kilometres of the Project during the period of the Agreement. Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • There has been no reported exploration undertaken other than a site visit to Blue Lake area by the owners. • GEUS staff sampled the area in 1979 as part of a regional stream sediment program for uranium. These samples and results are reported above. The results are publicly available on the GEUS web portal (https://eng.geus.dk) Geology • Deposit type, geological setting and style of mineralisation. The project area has been mapped on GEUS regional 1:100,000. MEL 2022-07 lies within the westernmost exposure of the large Nunarsuit Complex, which is part of the Mesoproterozoic Gadar alkaline intrusive complexes. These intruded into this rift setting. The Nunarsuit Complex is the largest and amongst the youngest of numerous Gardar age intrusions in South Greenland. It is comprised of alkaline Drill hole Information Data aggregation methods syenite and granitic units (see Figure 2). The Project lies within the mapped Helene alkaline granite, which forms the westernmost unit of the Nunarsuit Complex. It is bounded to the east by an extensive alkalic syenite. Based on the stream geochemistry alkaline intrusive/pegamatite hosted REE and other metals deposit type is supposed. • NA • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o 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. • In reporting Exploration Results, • NA- no drilling weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually 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 metal equivalent values should be clearly stated. Relationship • These relationships are particularly between important in the reporting of mineralisation Exploration Results. widths and • If the geometry of the mineralisation intercept with respect to the drill hole angle is lengths 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) 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 reporting Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other • Other exploration data, if meaningful substantive and material, should be reported exploration including (but not limited to): data geological observations; 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 work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. • No drilling or rock chip sampling undertaken- not relevant. • See Figure 1 for location of samples • Not relevant- but al reported samples taken are presented. • Project has no previous information reported other than stream sediment samples. • Dalaroo will be conducting geochemical sampling over the entire tenement area to validate/confirm the GEUS sampling results. This is expected to include stream sediments, soil sediments where soils horizons are present and rock chip and float sampling. • Dalaroo is also expecting to undertake auger drilling of alluvial material deposited around lakes that have been noted from the site inspection by the Vendor.