Announcement PDF ` DALAROO METALS LTD ACN 648 476 699 Financial Statements For the Year Ended 30 June 2025 DALAROO METALS LTD ACN 648 476 699 CONTENTS PAGE Page Corporate Directory 3 Chairman’s Review 4 Directors’ Report 5 Auditor’s Independence Declaration 36 Statement of Profit or Loss and Other Comprehensive Income 37 Statement of Financial Position 38 Statement of Changes in Equity 39 Statement of Cash Flows 40 Notes to the Financial Statements 41 Consolidated Entity disclosure 65 Directors’ Declaration 66 Independent Audit Report 67 ASX Additional Information 72 2 DALAROO METALS LTD ACN 648 476 699 CORPORATE DIRECTORY Directors David Quinlivan – Non Executive Chairman Joshua Gordon – Non Executive Director Bilal Ahmad – Non Executive Director Harjinder Kehal – Managing Director (resigned 21 October 2024) Michael Brown – Managing Director (appointed 21 October 2024 and resigned 30 April 2025) Company secretary John Arbuckle Annual General Meeting 11.00 am Friday 28 November 2025 at 1260 Hay Street West Perth WA 6005 Registered office Level 50, 108 St Georges Terrace Perth, WA 6000 Principal place of business Level 50, 108 St Georges Terrace Perth, WA 6000 Share register Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 Auditor Hall Chadwick 283 Rokeby Road Subiaco, WA 6008 Solicitors Steinepreis Paganin Level 14, 250 St Georges Terrace Perth, WA 6000 Stock Exchange Listing Dalaroo Metals Ltd is listed on the Australian Securities Exchange. The home exchange is Perth, Western Australia (ASX code: DAL) Website www.dalaroometals.com.au Company Information The Company was incorporated and registered under the Corporations Act 2001 in Western Australia. The Company is domiciled in Australia. 3 DALAROO METALS LTD ACN 648 476 699 CHAIRMAN’S REVIEW Dear Shareholder On behalf of the Board of Dalaroo Metals Ltd (“Dalaroo” or the “Company”), I present the Annual Report for the financial year ending 30 June 2025. The successful completion of a $2.65 million share placement (before costs) and the appointment of new directors - Mr Josh Gordon and Mr Bilal Ahmat - to the Board in late June 2024 saw Dalaroo well-funded to progress the next stage of its exploration strategy at its Lyons River Gold & REE Project in the Gascoyne Province of Western Australia. Proceeds from the placement also enabled Dalaroo to commence a process to identify and assess new complementary projects for the Company. The Company’s maiden diamond drilling program at the Browns Prospect, to test a lead-zinc-silver anomaly, confirmed the presence of Broken Hill type host rocks with significant intervals of sulphides through the sequence and returned encouraging base metal assay results up to 1.1% Zn. In line with the Company’s strategy to identify and assess new complementary projects, in February 2025 Dalaroo announced that it had secured an option to acquire one hundred percent of the Blue Lagoon Zirconium-Niobium-Rare Earth Element Project in the Gadar Province of Greenland, Subsequent to year end (in July 2025), the Company commenced its maiden on ground exploration program in Greenland. In addition to securing an option over the Greenland Rare Earth Element Project, in June 2025, Dalaroo also announced that it had, subject to a range of conditions precedent being satisfied, announced that it had entered into an agreement to acquire up to an eighty percent interest in the Bongouanoa Gold Project in Cote d’Ivoire. At year end the Company was continuing to progress its due diligence process on the Bongouanoa Gold Project. In closing, in what has been a year of significant activity on many fronts I would like to thank all our shareholders, employees and contractors for your continued support of Dalaroo throughout the year Yours sincerely David Quinlivan Chairman 26 September 2025 4 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT The directors present their report, together with the financial statements, of Dalaroo Metals Ltd (referred to hereafter as the 'Company' or 'Dalaroo') at the end of, and during, the year ended 30 June 2025. DIRECTORS The following persons were directors of the company during the whole of the reporting year and up to the date of this report, unless otherwise stated: Mr David Quinlivan - Non-Executive Chairman B.App Sci, MinEng, Grad. Dip. Fin Serv, FAusImm, FFINSA, MMICA Mr Quinlivan is a mining engineer with significant mining and executive leadership experience, having held 11 years of service at WMC Resources Limited, followed by a number of high-profile mining development positions. Since 1989, Mr Quinlivan has served as Principal of Borden Mining Services, a mining and consulting services firm, where he has worked on a number of mining projects in various capacities. Currently, Mr Quinlivan is Non-Executive Director of Vault Minerals Ltd after a merger with Silver Lake Resources (ASX:SLR) during the year. Previously, Mr Quinlivan served as Chief Executive Officer of Sons of Gwalia Ltd (post appointment of administrators), Chief Operating Officer of Mount Gibson Iron Ltd, President, Chief Executive Officer of Alacer Gold Corporation, Chairman of Churchill Mining PLC and NonExecutive Director of Ora Banda Mining. Mr Quinlivan is considered to be an independent Director. Mr Quinlivan was appointed as a Director on 5 March 2021. Mr Joshua Gordon - Non-Executive Director Mr Gordon is an experienced corporate finance professional who has raised capital for many small and emerging resource and energy companies on the ASX. Mr Gordon is well versed in all facets of the Equity Capital Market transaction lifecycle with deep experience in transaction origination, structuring, execution and distribution. Mr Gordon holds a Bachelor or Commerce (Finance) from Monash University and a Master of Management (Accounting) from the University of Melbourne. Mr Gordon is also a Non-Executive Director of Advance Metals Limited and a Non-Executive Director of Critical Resources Ltd, and a former Non-Executive Director of Traka Resources Limited. Mr Bilal Ahmad - Non-Executive Director Mr Ahmad is an accomplished investor with an extensive 15-year track record of strategic investments in ASX-listed companies and private ventures. His focus spans the resources, technology, and life science sectors, where he has consistently deployed capital to support growth and innovation of emerging companies. Mr Ahmad holds a Bachelor of Medicine and a Bachelor of Surgery. Mr Ahmad is currently Chairman of Critical Resources Ltd and Non-Executive Director of Altair Mineral Ltd. Mr Harjinder Kehal - Managing Director BSc (Hons), MMEE, MAusIMM, HAIG (appointed as a Director on 5 March 2021, resigned 21 October 2024) Mr Michael Brown – Managing Director BSc (Hons), BA, MBA, MAusIMM (appointed as a Director on 21 October 2024, resigned 28 April 2024) 5 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT COMPANY SECRETARY Mr John Arbuckle B.Bus, CPA Mr Arbuckle is an accountant with over 30 years’ experience in the resource industry with extensive experience in Company Secretary, Chief Financial Officer and Non-Executive Director roles in ASX listed companies. He has previously held senior financial management roles with CRA Ltd, North Ltd, Anaconda Nickel Ltd and was the Chief Financial Officer of Perilya Ltd and Mt Gibson Iron Ltd before starting his own company secretarial and corporate advisory business. PRINCIPAL ACTIVITIES During the financial year the principal activities of the company consisted of exploration activities at the company’s exploration tenements situated in Western Australia. There were no other significant changes in these activities during the financial year. RESULTS OF OPERATIONS The net loss for the Company after providing for income tax amounted to $2,727,898 (2024: $1,541,538). The Company continues to undertake exploration and evaluation activities on its tenements located in Western Australia. REVIEW OF OPERATIONS During the financial year Dalaroo Metals has continued to explore the Lyons River and Namban projects in Western Australia whilst conducting due diligence on two new potential projects. BLUE LAGOON - GREENLAND The Blue Lagoon Project, located in southern Greenland, has similar geochemical anomalous footprint to the Kvanefjeld (Energy Transition Metals) and Kringlerne/Tanbreez critical minerals/LREE deposits. These projects are all hosted in the southern alkaline intrusive province where Blue Lagoon is located. The US has long viewed Greenland and its critical mineral endowment as a strategically important asset. Greenland's mineral wealth presents an economic opportunity for Dalaroo to aid the U.S. in diversifying its supply chains and reduce reliance on China. Greenland continues to present as a focus of the US administration and is garnering significant interest from President Trump directly. European Lithium has been offered US$120M loan from the US Export-Import Bank to develop their REE project in Greenland. Demonstrating the level of interest from the US in Greenland as a source of critical minerals. Large and highly anomalous zirconium, niobium and REE geochemical anomalies over the Project area provide 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. 6 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 1: Project location, GEUS regi Figure 2: Project location, GEUS regional stream sediment location and neodymium assay results 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 (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. 7 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT 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 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 were conducted. Sediment Samples Twenty-six sediment samples were collected using a plant spoon, in some cases using a spade. Sediments are dominated by coarse grained grey feldspar minerals with a grain size in the order of 2 cm. Sediment samples were sampled using 20 cm steel sieves with 2 mm mesh and stored in Heavy Sentry sample bags. Auger Sampling Seven Auger samples were collected using a handheld coarse sand auger. Auger sampling is difficult because of the frequent alternating layers of coarse gravel. Sonic drilling or RC drilling are alternative sampling methods to consider in the future. 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 (Figure 3). 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. 8 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 2: Map showing sampling locations. Figure 3: 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 9 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Next Steps Assay results from the sampling program are expected to be received from mid-October 2025 onwards. It is anticipated that if these results are favourable, a follow-up field trip will be conducted prior to the end of October 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 October each year. BONGOUANOA PROJECT – COTE D’IVOIRE The Bongouanoa Project in Cote d’Ivoire comprising a 400km² application permit located in the richly gold endowed Sefwi-Comé Belts. Dalaroo will be leveraging years of historical exploration data. The Project has had significant historical exploration conducted including soil geochemistry, rock chip sampling and extensive aircore and diamond drilling (refer DAL ASX announcement dated 10 June 2025). The historic work returned significant gold mineralisation that represent immediate follow up targets for Dalaroo to test. The Bongouanoa Project is located in southeast Cote d’Ivoire, covering 400km² in a permit under application. The permit is located in the Sefwi-Comé Belt that is host to multi-million ounce gold deposits and covers the Sefwi-Comé Shear and N’Guessan Shear zones. Previous exploration conducted in the Bongouanoa Project included stream sediment sampling, soil sampling, aircore drilling and diamond drilling. The geology is characterised by strongly deformed flysch, metasediments and metavolcanics along with diorite and granitic intrusives. Structurally, two main shears traverse the project; Sefwi-Comé Shear and N’Guessan Shear with associated complex secondary structures. The project currently has 10 active sites of artisanal workings and 5 abandoned sites. These sites appear to be focussed on secondary cross structures and splaying off the primary shears. Summary of Historic Geochemical Sampling Both stream and soil sampling programs have been conducted over the southern half of the project. Both these programs have highlighted the prospectivity of the area to host economic gold mineralisation. The regional streams program returned results as high as 189ppb Au which focused the follow up gridded soil program in the southern portion of the permit. The subsequent soil sampling program was conducted on a 400 x 50m gridded pattern and returned significant robust, contiguous gold in soil anomalism >50ppb Au over a 16km X 10km area along with parallel anomalies. The anomaly includes some spectacularly high grades, peaking at 95g/t Au (Figure 5). Sampling of outcrops also produced outstanding gold results including 70.68g/t Au & 68.55g/t Au. Whilst some of these samples were taken from areas of active workings, significant grades were also returned from un-worked quartz veins. 10 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 4: Location map showing the Bongouanoa Project Summary of Reconnaissance Drilling A 94-hole, shallow reconnaissance aircore drilling program tested several localised areas of the gold in soil anomaly. Results from this program led to the targeting of follow up diamond drilling (Figure 6). The aircore returned gold intercepts including;    BOAC00043 BOAC00084 BOAC00035 4m @ 9.24 g/t Au from 24m 4m @ 2.08 g/t Au from 36m 4m @ 1.23 g/t Au from 36m 11 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 5: Rock sample locations and peak gold results with underlying >50ppb gold in soil anomalism. A targeted diamond drilling program consisting of 3,949m, tested 5 locations (Figure 6). This drilling program returned highly encouraging results that represent high priority targets to follow up with additional drilling. 12 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 6: Location and highlights of previous drilling. Significant results included;  BODD00021        17m @ 6.79g/t Au from 113m incl; 3m 34.29 g/t Au from 123m BODD00016 18m @ 1.28g/t Au from 70m and 30m @ 0.61 g/t Au from 33m BODD00017 9m @ 1.71g/t Au from 39m and 4m @ 1.55 g/t Au from 57m BODD00010A 2m @ 60.47 g/t AU from 39m BODD00001 4m @ 2.63 g/t Au from 23m and 1m @ 12.51 g/t Au from 90m BODD00022 5m @ 1.48 g/t Au from 80m BODD00002 4m @ 1.60 g/t Au from 48m BODD00020 2m @ 2.29 g/t Au from 70m 13 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 7: Cross-section of gold mineralisation in the Bongouanoa Project. Encouraging assay results from recent diamond drilling program highlight multiple priority areas for our future exploration efforts (Figures 7 & 8). The Company’s focus will be on further delineating the gold mineralization at the advanced targets. In parallel, the Company willl also be actively exploring its promising pipeline of earlier-stage targets. These results provide a strong foundation for the Company’s upcoming exploration activities. 14 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 8: Cross-section of gold mineralisation in the Bongouanoa Project. Next Steps Subject to the permit being granted in coming months, the Company intends to aggressively advance its exploration programs on the Bongouanoa Project. Dalaroo's management brings valuable experience operating in West Africa, complemented by its strong local technical team. Initial exploration efforts will include: • Aggressive drill testing of existing targets • Additional gridded geochemical sampling in the northern portion of the permit area • Detailed mapping and trenching across identified gold-in-soil anomalies • Regional drilling programs testing new targets areas The objective of this work is to delineate and define an initial JORC compliant resource that can potentially lead to future mine development and gold production. 15 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT LYONS RIVER PROJECT Geographically the Lyons River Project is located approximately 1,100km north of Perth and approximately 220km to the north-east of Carnarvon and comprises a strategic (100% owned) land position of 838km2 within the Proterozoic age Mutherbukin Zone of the Gascoyne Province in Western Australia. The Gascoyne Province is a deformed and high-grade metamorphic core zone of the early Proterozoic Capricorn Orogen. Figure 9: Dalaroo Metals, Lyons River Project prospects in the Gascoyne Province showing neighbouring companies and their prospects. 16 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Broken Hill Type prospectivity confirmed - EIS Diamond Drilling at Browns Dalaroo completed a diamond drilling program at its Browns prospect, Lyons River Project which intersected a Broken Hill Type mineralised sequence with encouraging assay results of up to 1.1% Zn. Four deep diamond core holes totalling 994.4m tested a prospective Pb-Zn-Ag base metal target covering an area of 6km2 (3km X 2km). The Company believes the district is an emerging Broken Hill Type (BHT) / Sedimentary Exhalative (“SEDEX”) deposit setting. The Browns Prospect is one of six Pb-Zn soil geochemical prospects identified at Lyons River within the Proterozoic Age basin setting covering an area of 300km2 (30km by 10km) (Figure 9). The Browns Prospect represents the second site of Pb-Zn-Ag intersections discovered by bedrock drilling in the Mutherbukin Zone, 5km east of Dalaroo’s Four Corners Pb-Zn-Ag prospect. The Browns Prospect comprises a broad Pb-Zn soil (max 1445ppm Pb, 1080 Zn ppm) and rock chip geochemical anomaly covering an area of 3km X 2km, associated with extensive iron-rich and high-grade gossanous material at surface with results of up to 39.6% Pb, up to 0.71% Zn and up to 82g/t Ag (refer DAL ASX Announcement from 15 February 2022). Dalaroo’s Aircore (AC) drill programs at Browns testing the geochemical anomalism have been successful in intersecting zones of interbedded psammitic to pelitic lithologies together with zones of disseminated base metal sulphides such as galena and sphalerite. Significant AC drilling Pb-Zn sulphide intercepts have included 10m @ 1.04% Pb, 0.49% Zn, 2.85g/t Ag from 37m (LRAC010) Including 1m @ 3.13% Pb, 0.24% Zn, 5g/t Ag from 38m and 63m @ 1.76g/t Ag from 16m (refer DAL ASX Announcement from 14 February 2023). Figure 10: Lyons River, Browns prospect and five other Pb-Zn soil geochemical prospects /targets over greyscale 1 Vertical Derivative Aeromagnetics image. Four diamond core holes totalling 994.4 m (Figure 11) tested a prospective Pb-Zn-Ag base metal target covering an area of 3km X 2km. The holes ranged in depth from 142.3m to 300m and tested separate zones below the AC drill anomalies and prospective coincident gravity/geochemical targets (Table 2). 17 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Table 2: Browns prospect EIS diamond drill holes locations. Nominal RL Dip (°) 7285202 281 378102 7285294 LRDD007 378102 LRDD008 377733 Azimuth (mag) Depth (m) Tenement -56 180 300 E09/2102 281 -60 180 300 E09/2102 7285045 283 -60 180 252.1 E09/2102 7284791 286 -60 180 142.3 E09/2102 Drillhole MGAE MGAN LRDD005 378333 LRDD006 Figure 11: Lyons River Project – Browns prospect EIS diamond drill hole and AC drill hole plan draped over gravity image. EIS drilling has defined an interbedded sequence of garnet-and sillimanite-bearing pelitic to psammo-pelitic schists, intermediate to felsic gneiss, and meta-sandstones, analogous to the host rock sequences at Broken Hill. Akin to Broken Hill the rocks have undergone high-grade metamorphism, to generate the quartz-biotite-feldspar-garnet-muscovite-sillimanite assemblage. The main lithologies identified are shown in Figure 11. The sequence has been intruded by granitic pegmatite and lesser, serpentinised, ultramafic dykes. 18 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 12: Browns drill section 378100E Intervals of disseminated, blebby and veinlet pyrite occur throughout the sequence and are typically more abundant with argillaceous, pelitic lithologies (biotite-quartz schist). The thickest sequences of these argillaceous, pelitic to psammo-pelitic rocks occur in the northern part of the prospect and broadly correlate with the main (northern) Pb-Zn-Ag surface anomaly. In addition, several zones of silica-pyrite alteration have been logged throughout the sequence. Better base-metal intercepts include: • 1m @ 0.55% Pb and 0.11% Zn from 58m (LRDD005) • 3m @ 0.33% Pb and 0.12% Zn from 62m (LRDD006) • 1m @ 0.13% Pb, 0.7% Zn and 2ppm Ag from 81m (LRDD006) • 1m @ 0.19% Pb and 1.09% Zn from 146m (LRDD006) • 5m @ 277ppm Pb and 1324ppm Zn from 127m (LRDD007) The better results were returned from holes LRDD005 and LRDD006 in the northern part of the Browns Prospect. Drilling in this area intercepted several zones of argillaceous, pelitic schist up to 65m thick that contain up to 5% pyrite. Such lithologies are commonly more prospective in BHT systems, and at Browns, these zones exhibit broad widths of base metal anomalism, that include discrete, higher-grade zones, including 1.09% Zn and 0.55% Pb over 1m intervals. Aeromagnetic data and structural analysis of drill-core suggest a possible NE structural control to mineralisation, although additional drilling would be required to confirm this. Copper Potential A review of Lyons River Project copper potential was undertaken using the project wide historical soil geochemical and rock chip samples. High grade copper assay results of 54.8% coupled with silver grades of 80g/t were returned from rock chip sampling program in 2023 associated with malachite rich zone over the south-western part of the Browns prospect (refer DAL ASX Announcement from 31 October 2023). 19 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Copper assays of 1.64% accompanied by silver assays of 21.5g/t have previously been recorded from rock chip sampling completed at the Four Corners prospect located 5km to the west of Browns. In other parts of the Lyons River Project copper values from rock chip samples have returned assays ranging from 505ppm to 2617 ppm (0.26%). Historical shallow RC drill program in 2008 by previous explorers at Four Corners had returned an intersection of 3m @ 0.50% Cu including 1m @ 0.92% Cu from 56m, with mineralisation associated chalcopyrite (refer DAL ASX Announcements from 16 March 2022). Field reconnaissance of copper anomalous areas was undertaken in the December Quarter 2024 with a total of 32 new samples collected. Multi-element analysis has returned high grade copper with assay results of up to 16.2% Cu. High grade copper is coupled with gold values of up to 0.24g/t Au and 3 g/t Ag (Table 3). Outcropping surface malachite copper mineralisation has been observed over a strike distance of 60m. This highlights potential for the discovery of copper within the Lyons River Project (Figures 13 and 14). Figure 13: Total Magnetic Intensity 1st Vertical Derivative image overlain by project wide soil geochemical samples (anomalous copper) and rock chip sample with copper assays above 500ppm. In addition, a soil geochemical sampling program was undertaken over the Lyons River Project over a number of conceptual target areas with potential for copper with a total of 467 samples collected. Copper values of up to 169ppm Cu have been returned (Figures 13 and 14). 20 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 14: Total Magnetic Intensity image overlain by historical and new soil geochemical samples (anomalous copper) and rock chip sample result with copper assays of 16.2% Cu and 0.24 g/t Au. Table 3: Lyons River Project, Browns prospect rock chip sample assays. Sample_ID Easting Northing Au_ppb Ag_ppm Cu_ppm Cu% 81023-1 376575 7283838 104 1 34100 3.41 81023-2 376573 7283839 20 81023-3 376570 7283843 240 <0.5 4070 0.407 3 162000 16.2 81023-4 376567 7283850 14 <0.5 2110 0.211 81023-5 376565 7283849 92 0.5 39000 3.90 81023-6 376567 7283852 56 <0.5 14300 1.43 81023-7 376554 7283859 12 <0.5 1930 0.193 81023-8 376581 7283835 6 <0.5 878 DM002191 382198 7288975 6 <0.5 192 DM002192 382469 7288994 8 <0.5 302 0.3 DM002193 382306 7289128 4 <0.5 630 0.63 DM002194 381295 7289144 6 <0.5 660 0.66 0.19 NAMBAN PROJECT The Manning Prospect is located 150km north of Perth and 90km north of Chalice Mining’s world class Julimar Ni-Cu-PGE Project (Figure 15). 21 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 15: Namban Project Location along the northern extent of the arcuate Julimar – Yule Corridor, truncated by the Darling Fault (dark blue) to the west. Image is 1VD-RTP magnetics draped with Bouger Gravity 22 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT RISKS AND UNCERTAINTIES The Company is subject to risks that are specific to the Company and the Company’s business activities, as well as general risks. Future funding risks Whilst the Company has a cash and cash equivalents balance of $454,826 and net assets of $1,224,634 and is able to continue on a going concern basis, there is risk that the Company may require substantial additional financing in the future to sufficiently fund potential exploration and development resource acquisition, general working capital and any other longer-term objectives. The Company has the ability to control the level of its current operations and hence the level of its expenditure over the next 12 months. Management is confident that they can reduce the level of expenditure in order to retain appropriate cash balances. Management remains very diligent in their ongoing monitoring of cash balances day by day. The Company’s ability to raise additional funds will be subject to, among other things, factors beyond the control of the Company and its Directors, including cyclical factors affecting the economy and share markets generally. If for any reason the Company was unable to raise future funds when required, its operations could be significantly affected. The Directors regularly review the spending pattern and ability to raise additional funding to ensure the Company’s ability to generate sufficient cash inflows to settle its creditors and other liabilities. Taxation risks Changes in tax law, or changes in th