Announcement PDF ` DALAROO METALS LTD ACN 648 476 699 Financial Statements For the Year Ended 30 June 2024 DALAROO METALS LTD ACN 648 476 699 CONTENTS PAGE Page Corporate Directory 3 Chairman’s Review 4 Directors’ Report 5 Auditor’s Independence Declaration 35 Statement of Profit or Loss and Other Comprehensive Income 36 Statement of Financial Position 37 Statement of Changes in Equity 38 Statement of Cash Flows 39 Notes to the Financial Statements 40 Consolidated Entity Disclosure 62 Directors’ Declaration 63 Independent Audit Report 64 ASX Additional Information 69 2 DALAROO METALS LTD ACN 648 476 699 CORPORATE DIRECTORY Directors David Quinlivan – Non Executive Chairman Joshua Gordon – Non Executive Director (appointed 28 June 2024) Bilal Ahmad – Non Executive Director (appointed 28 June 2024) Robert Beeck – Non Executive Director (resigned 28 June 2024) Harjinder Kehal – Managing Director Company secretary John Arbuckle Annual General Meeting 11.00 am Friday 29 November 2024 at Level 2 9 Havelock Street West Perth WA 6005 Registered office Suite 1, 346 Barker Road Subiaco, WA 6008 Principal place of business Suite 1, 346 Barker Road Subiaco, WA 6008 Share register Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 , Auditor Hall Chadwick 283 Rokeby Road Subiaco, WA 6008 Solicitors AGH Law Level 1, 50 Kings Park Road West Perth, WA 6005 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 am pleased to present the Annual Report for the financial year ending 30 June 2024. Our maiden aircore drilling program at the Goodbody West prospect has discovered a gold system underneath high-grade gold-bearing outcropping quartz veins within a gold soil geochemical anomaly at Goodbody extending over a strike length of 6km at the Company’s Lyons River Project in the Gascoyne Province of Western Australia. This first pass drilling shows that the gold mineralisation at Goodbody West remains open along strike and at depth. Drilling has outlined gold mineralisation over a strike length of least 200m with encouraging grades of 5m @ 0.85g/t from 9m including 1m @ 1.83g/t from 9m and 2m @ 1.23g/t from 12m in the oxide zone. I am also pleased to announce that subsequently Dalaroo’s application for exploration funding in Round 29 of the Western Australian Government’s Exploration Incentive Scheme (“EIS”) was successful. Dalaroo’s $100,000 EIS grant will be used to co-fund 50% of the direct diamond drilling cost to test its new gold system discovery at Goodbody West. Diamond drilling to be undertaken at Goodbody pursuant to this grant will greatly enhance our geological knowledge of the structural features controlling gold mineralization. During the year Dalaroo completed a deep diamond drilling program at its Browns prospect, Lyons River Project. Four deep diamond core holes have tested a highly prospective and a very compelling Pb-Zn-Ag base metal target 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. At Browns, significant Pb-Zn sulphide intercepts of 10m @ 1.04% Pb, 0.49% Zn, 2.85g/t Ag from 37m including 1m @ 3.13% Pb, 0.24% Zn, 5g/t Ag from 38m and 63m @ 1.76g/t Ag from 16m were returned from Dalaroo’s shallow AC drilling in completed 2022. The diamond drill program was partly funded by the EIS with a grant for an amount of $180,000. Dalaroo 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 a Proterozoic Age basin setting covering an area of 30km by 10km. High grade copper assay results of 54.8% coupled with silver grades of 80g/t were returned from rock chip sampling program completed during the year over the south-western part of the Browns prospect. 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. This highlights possible potential for copper within the Lyons River Project. In December 2023, Dalaroo executed a Sale Agreement with Delta Lithium Limited (ASX: DLI) to sell the rights to lithium, caesium and tantalum minerals (Lithium Minerals) at its Lyons River Project (Lithium Mineral Rights). The consideration of $1,000,000 for the transaction comprised $500,000 in cash and $500,000 of DLI ordinary shares. In addition to the consideration, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River Project tenements (a commitment of $280,000 per annum at the date of the Sale Agreement) for a period of 3 years from Completion Our disciplined and methodical approach to exploration using the latest techniques during the year continues delineate a number of exciting prospects that are worthy of next phase of drilling and we look forward to actively pursuing our exploration programs in these areas in the year ahead. In closing 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 2024 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 2024. 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 Chairman of Silver Lake Resources (ASX:SLR). 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 Non-Executive 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 Harjinder Kehal - Managing Director BSc (Hons), MMEE, MAusIMM, HAIG Mr Kehal is a geologist with over 30 years’ experience in the mineral resources sector in Australia, Chile, India and Vietnam. Mr Kehal has a proven track record in project management and evaluation, feasibility studies, joint venture negotiations and statutory reporting and played a leading role in the discovery of a number of gold and base metal deposits in Western Australia and the Northern Territory, including the 1 million ounce Golden Cities deposit, 600,000 ounce Tooheys Well gold deposit and Erayinia VMS lead-zinc deposit. Currently, Mr Kehal is also Managing Director of Serena Minerals Limited. Previous positions include Chief Operating Officer of AXG Mining Ltd and Executive Director and Chairman of Altera Resources Ltd. Mr Kehal was appointed as a Director on 5 March 2021. Mr Joshua Gordon - Non-Executive Director (appointed 28 June 2024) 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 Traka Resources Limited and a Non-Executive Director of Advance Metals Limited. Mr Bilal Ahmad - Non-Executive Director (appointed 28 June 2024) MrAhmad 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. 5 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Mr Robert Beeck - Non-Executive Director MBA, Associate Member of the AusIMM (resigned 28 June 2024) Mr Beeck has over 30 years’ experience in mineral processing operations management in Australia with relation to nickel, diamonds, gold and iron ore. Mr Beeck has held senior roles in mine operations, feasibility studies, engineer design and construction of ore processing and infrastructure projects. Mr Beeck is an associate member of the AusIMM and Master of Business Administration (University of Western Australia). Currently, Mr Beeck is General Manager of API Management, the manager of the joint venture of the West Pilbara Iron Ore Project. Mr Beeck is not considered to be an independent director given he is a Director of Serena Minerals Limited and Shenton Resources Limited, both substantial shareholders of the Company. Mr Beeck was appointed as a Director on 5 March 2021. 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 $1,541,538 (2023: $2,472,701). The Company continues to undertake exploration and evaluation activities on its tenements located in Western Australia. REVIEW OF OPERATIONS Dalaroo’s Lyons River and Namban projects occupy a large strategic land position totalling 1,275 km2 with scale to host significant sized orebodies located in the Tier 1 jurisdiction of Western Australia (Figure 1). Lyons River in the Gascoyne Region of Western Australia Dalaroo’s Lyons River Project is a strategic (100% owned) land position of 838 km2 within the Proterozoic Mutherbukin Zone of the Gascoyne Province, located 220km north-east of Carnarvon (Figure 2). Lyons River is prospective for vein/shear related gold, base metals (Pb-Zn-Ag), copper and rare earths deposits (Figure 3). 6 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 1: Dalaroo Metals projects Location 7 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 2: Lyons River Project location 8 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 3: Gascoyne Province gold, rare earth and lithium companies and prospects Gold System Discovery at Goodbody Gold mineralization has been outlined in outcropping quartz veins at Goodbody within robust gold in soil anomalies with peak gold values of 132ppb Au at Goodbody West, 93ppb Au at Goodbody Central and 50ppb Au at Goodbody East. The footprint of the Goodbody prospects lies within a broader, 6km long, gold in soil anomaly at 2ppb threshold (Figure 4) (refer DAL ASX Announcement from 26 February 2024). 9 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 4. Location of recent rock chip samples within the Goodbody gold prospect area and soil geochemical anomalies. Overlaid on greyscale Total Magnetic Intensity (TMI)1VD basemap imagery. Air-core drilling Aircore (AC) drilling was undertaken at the Goodbody West prospect in March Quarter 2024 to test the down-dip extension of surface mineralisation defined through geological mapping and surface sampling completed in 2023. Exploration work by Dalaroo has identified outcropping, WNW-trending mineralised quartz veins (up to 6.25g/t Au) over 200m strike, hosted within a metasedimentary rock package comprising pelitic schist, chert, ironstone, and BIF (refer DAL ASX Announcement from 28 November 2022). Veins at surface are typically developed parallel to foliation and locally contain ferruginous oxide phases. A program of 19 AC holes (867m) was completed on five north-south traverses covering 300m strike, to a maximum vertical depth of 42m (Figure 5) (refer DAL ASX Announcement from 16 April 2024). Significant (> 0.1g/t Au) results from the program included: • • • • • LRAC047: 5m @ 0.85g/t Au from 9m, including 1m @ 1.83g/t from 9m LRAC048: 21m @ 0.21g/t Au from 24m, including 1m @ 0.55g/t Au from 26m LRAC049: 1m @ 0.98g/t Au from 3m LRAC051: 7m @ 0.36g/t Au from 17m, including 1m @ 1.17g/t Au from 19m LRAC052: 19m @ 0.23g/t Au from 24m 10 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 5: Goodbody West gold prospect and interpreted regional structures. Overlaid on aerial photography. In this figure white text refers to rock chip assay values and black text refers to soil assays values. Drilling in the eastern part of the Goodbody West prospect, below the main area of outcropping gold mineralisation, intercepted several zones of sub-parallel, moderately north-dipping quartz veins, within a sequence of pelitic schist and lesser interbedded psammitic rocks. Veins are commonly emplaced within or adjacent to high-strain zones and are encouragingly associated with broad widths of silica-sericite (+/hematite-carbonate) alteration. Veins contain variable quantities of ironstone and gossanous sulphide. Primary sulphides are not preserved at the shallow drilled depths. Higher gold grades, up to 1.83g/t (drill-hole LRAC047) are typically associated with sulphide-bearing quartz veins. However, broad widths of anomalous mineralisation (e.g. 21m @ 0.21g/t Au in drill-hole LRAC048) may also integrate alteration zones adjacent to vein sets (Figure 6). Significant Arsenic (As) anomalism, up to 1420ppm is also associated with gold mineralisation (refer DAL ASX Announcement from 16 April 2024). Turbo Well gold A new gold prospect has been defined at Turbo Well with gold-in-soil anomalism extending over a strike length of 2km, adjacent to a regional ESE structural trend (Figure 7). A peak value of 47ppb Au is defined from results of both historical soil sampling and follow-up sampling by Dalaroo during 2023 (refer DAL ASX Announcements from 9 November 2023). 11 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 6: Drill cross section – interpretation geology and gold intercepts. Figure 7: Location of Goodbody prospect in relation to additional gold prospects and interpreted regional structures within Lyons River Project area. Overlaid on greyscale Total Magnetic Intensity (TMI) 1VD base map. 12 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Browns Pb-Zn-Ag Emerging Broken Hill Type (“BHT”) /Sedimentary Exhalative (“SEDEX”) Deposit Setting Dalaroo has completed a deep diamond drilling program at its Browns prospect, Lyons River Project. The diamond drill program was partly funded by the Exploration Incentive Scheme sponsored by the Government of Western Australia with a grant for an amount of up to $180,000. Dalaroo 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 a Proterozoic Age basin setting covering an area of 30km by 10km (Figure 8). Figure 8: Lyons River Project, Browns prospect and other five Pb-Zn soil geochemical prospects /targets over greyscale 1 Vertical Derivative Aeromagnetics image. AC drilling completed during 2022 has highlighted the prospectivity for discovery of a significant BHTSEDEX-style deposit at Browns prospect. Evidence that Pb-Zn-Ag mineralizing fluids have circulated at the basin-wide scale five kilometres east from the already drilled Four Corners Prospect strongly supports this theory. This leads Dalaroo to the conclusion there may be multiple base metal deposits to be defined at the Lyons River Project. Four deep diamond core holes have tested a highly prospective and a very compelling Pb-Zn-Ag base metal target covering an area of 3km X 2km. Diamond drilling and analysis of core samples will: • Highlight the geological transition to more pyritic and phyllosilicate-rich units identified at the southern limits of the tested area (from 80m depth in LRAC021). This is interpreted to represent a transition in the pre-metamorphic protolith stratigraphy to lower energy sedimentary units, considered more prospective for base metal deposits. The current diamond drilling will investigate and test southwards into this domain, which also coincides with the “trough” structure epicentre 13 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT • (refer DAL ASX Announcement from 14 February 2023). This was identified from detailed gravity survey plus airborne magnetics geophysical data (Figure 9). Confirm the presence of economic Pb-Zn-Ag mineralisation at the Browns Prospect at Lyons River in the Gascoyne Province. Browns Pb-Zn-Ag Prospectivity and Potential 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. Two phases of AC drill programs by Dalaroo at the Browns Prospect have tested a very compelling broad Pb-Zn soil and rock chip geochemical anomaly (max 1445ppm Pb, 1080 Zn ppm) 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. Detailed gravity work has complemented historical surveys by BHP and show a coincident gravity low suggesting an area of possible deepening basin development. An interpreted sub-basin fold or trough structure at Browns may represent a deeper portion of the paleo-basin architecture and a favourable environment for the formation of prospective host stratigraphy (Figure 9). Dalaroo’s AC drill programs at Browns have been successful in intersecting zones of interbedded psammitic to pelitic lithologies together with multiple zones of disseminated base metal sulphides such as galena and sphalerite. More than 800m of strike length lead-zinc mineralisation has been outlined at Browns which remains open in all directions. Ag intercepts are coincident with Pb and Zn assays and further support the presence of BHT/SEDEX-style of mineralisation (Figure 9). AC drilling programs have intersected thick zones of variably-pyritic, biotite-quartz gneiss, likely representing metamorphosed shales, and found to be enriched in silver, returning 63m @ 1.76g/t Ag from 16m and 16m @ 1.43g/t Ag from 68m and has outlined the footprint of the Pb-Zn-Ag mineralized system at Browns to approximately 400m in thickness at its central portion. Significant Pb-Zn sulphide intercepts of 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 adds weight to this thesis. Copper potential High grade copper assay results of 54.8% coupled with silver grades of 80g/t have been returned from rock chip sampling program over the south-western part of the 3.5km X 2km Browns base metal prospect (Figures 10 and photo 1). Gossanous outcrops sampled to the east of the AC drilled area have returned lead (Pb) values of up to 0.53% complemented by anomalous zinc (1140ppm) and copper (420ppm) (Refer DAL ASX Announcements from 31 October 2023). Copper assays of 1.64% accompanied by silver assays of 21.5g/t have also been recorded from rock chip sampling (photo 2) previously completed at the Four Corners prospect located 5km to the west of Browns (Refer DAL ASX Announcements from 16 March 2022). Previous historical shallow RC drill program in 2008 at Four Corners returned an intersection of 3m @ 0.50% Cu including 1m @ 0.92% Cu from 56m, with mineralisation associated chalcopyrite (Figure 10) (Refer DAL ASX Announcements from 16 March 2022). 14 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 9: Map view of aircore drilling completed at Browns on ground gravity data basemap. Note location of newly reported mineralized intersections and structural interpretation. Photo 1: Copper-oxide (malachite) mineralisation in surface excavation and malachite rich rock chips at Browns prospect Photo 2: Outcropping copper oxide mineralisation (malachite) at Four Corners prospect 15 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Four Corners Browns Figure 10: Browns prospect, Pb soil geochemical anomalies (previously reported) and Pb rock chip sample assays, high-grade copper rock chip sample location and proposed Induced Polarisation survey lines. Rare Earths Two significant rare earth (REE) anomalies have been outlined at the View Hill and 32 Mile Well prospects. The REE anomalism with a peak value of 1,043ppm TREO has a strike length of 2.2km, average width of 500m and coincides with a large NW trending thorium high identified in detailed radiometric imagery data flown by the Company. The second REE anomaly with a peak value of 2,025 ppm TREO has a current strike length of over 3km and an average width of 300m (Figure 11) (Refer DAL ASX Announcement dated 4 April 2023). Importantly both REE anomalies lie adjacent to a major NE-trending structure, compatible with relationships seen at Kingfisher Mining’s Mick Well REE discovery. The anomalies have no recorded drilling and could therefore represent either potential hard rock or near surface clay hosted mineralisation drill targets. Lithium Dalaroo executed a binding agreement (Sale Agreement) with Delta Lithium Limited (ASX: DLI or Delta Lithium) to sell the rights to lithium, caesium and tantalum minerals (Lithium Minerals) at its Lyons River Project (Lithium Mineral Rights). The consideration of $1,000,000 for the transaction comprised $500,000 in cash and $500,000 of DLI ordinary shares. In addition to the consideration, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River Project tenements (a commitment of $280,000 per annum at the date of the Sale Agreement) for a period of 3 years from Completion. The Company will still retain ownership of the Lyons River Project tenure and hold rights to all other metals and minerals apart from the Lithium Minerals (Refer ASX announcement dated 1 December 2023). 16 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Figure 11: TREO results on radiometrics thorium/google image (note coincident large thorium and TREO anomaly at View Hill prospect). 17 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT During the year structural mapping within the Lyons River Project identified several major shear zones, each over 30km long and 6km wide, that formed during the Neoproterozoic Edmundian Orogeny. This orogeny was the fundamental driver of deformation along the nearby Ti Tree Shear Zone, and it was responsible for the emplacement of spodumene pegmatites in the Yinnetharra District, which are now the focus of Delta Lithium’s resource drilling activity. Pegmatites emplaced during the Edmundian Orogeny are associated with granite intrusions of the Thirty Three Supersuite (TTS) and recent mapping has confirmed that intrusive rocks of the TTS were also emplaced within shear zones at the Lyons River Project (Figure 12). The TTS intrusions comprise granite stocks and granitic pegmatite (microcline-quartz-muscovitetourmaline – photo 3). Figure 12: Lyons River Project – Major shear zone/corridor active during the Edmundian Orogeny, with potential for lithium bearing pegmatites. Photo 3: Thirty Three Supersuite pegmatites with (microcline-muscovite +/- tourmaline assemblage) and photo 1b dominated by microcline and muscovite mica “books”. 18 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT A follow-up/infill soil geochemical survey was completed on a 200m X 100m pattern (first pass sampling was completed on lines 1km X 100m) at the View Hill prospect. A total of 813 soil samples were collected. One of the lithium targets (3km long and 0.5km) had a peak value of 334 ppm Li2O and is comparable to lithium anomalism obtained by Dalaroo’s neighbours (Refer MI6 ASX Announcement dated 25 July 2023 and 10 October 2023). Importantly, the lithium targets lie within the large pegmatite cluster measuring 9km X 6km in the eastern part of the project, where pegmatites up to 100m wide and 3km long have been mapped. The significant lithium anomalism outlined to date remains open to the south, west and east (Figures 13 and 14). View Hill Lithium targets See Fig 14 Figure 13: Structural domain map with north-south faults and significant lithium targets outlined at View Hill Lyons River Project. Next Steps at Lyons River Goodbody – gold target Dalaroo’s application for exploration funding in Round 29 of the Western Australian Government’s Exploration Incentive Scheme (“EIS”) was successful. The $100,000 EIS grant awarded to Dalaroo will be used to co-fund 50% of the direct diamond drilling cost to test its new gold system discovery at the Goodbody West prospect. Four diamond drill holes for an aggregate 700m are planned. The identification of sulphide-bearing quartz veins, in association with wide silica-sericite alteration haloes and strong Au-As anomalism from the current shallow levels of drilling are considered indicative of a significant hydrothermal system. Mineralisation remains open at depth and to the east and requires deeper drilling to assess the potential for structurally controlled high-grade zones. It is noted that surface anomalism at Goodbody West coincides with the intersection of WNW and NNE-trending structures (refer DAL ASX Announcement from 8 November 2023). 19 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Such intersection zones represent potential sites of intensified deformation and hydrothermal fluid movement and will be a priority for deeper drill targeting using the EIS co-funded diamond drilling at Goodbody West. View Hill lithium targets Figure 14: View Hill: lithium soil geochemistry showing main anomalous trends, open to the south, west and east. Browns – Pb-Zn-Ag Browns EIS drill core has been cut and dispatched for multi-element analysis with assay results awaited. Copper potential Assess copper targets outlined from rock chip sampling over the Lyons River Project. Further gecohem surveys and rock chip sampling to outline drill targets. REE Potential Follow up geochemical sampling at View Hill and Marloo River prospects to be completed define drill targets for clay hosted REE deposits. 20 DALAROO METALS LTD ACN 648 476 699 DIRECTORS’ REPORT Namban Project Manning Ni-Cu-PGE Prospectivity and Potential The Manning prospect is located 150km north of Perth and 90km north of Chalice Mining’s world class Julimar Ni-Cu-PGE Project (Figures 16). The drilling program was designed to test large Ni-Cu-PGE*+Au geochemical anomalies (Pd soil anomaly with a peak value of 28 ppb coincident with Cu peak value of 605 ppm and Ni peak value of 206 ppm) covering an area of 2km X 0.5km that are coincident with Induced Polarisation (IP) anomalies with high chargeability values of up to 40 mV/V. The diamond drill program was partly funded by Dalaroo’s successful application in Round 26 of the Exploration Incentive Scheme sponsored by the Government of Western Australia. The grant was for an amount of up to $175,000, structured as a contribution towards 50% of direct drilling cost. Diamond drilling programme of four holes (MNDD001 to MNDD004) totalling 828.9m was completed at the Manning Prospect (Figure 15). The holes ranged in depth from 178.1m to 267.4m (Table 1). Table 1: Manning - Drill hole locations. Hole Id Easting Northing RL Final/Depth Azimuth Dip (GDA Z50) (GDA Z50) (m) (m) (Degrees) (Degrees) MNDD001 410400 6610975 290 203.9 266 -65 MNDD002 409250 6610300 290 178.1 090 -60 MNDD003 410189 6611072 290 179.4 090 -60 MNDD004 409890 6611075 290 267.4 065 -60 Elevated copper, gold and silver assays up to 0.11% Cu, 0.61 g/t Au and 14.5 g/t Ag were intersected in the drilling program (Table 2). Table 2: Manning prospect - Significant assays Hole Id From To Interval (m) Au g/t Ag g/t Cu ppm (m) (m) MNDD001 0.00 0.50 0.5 NSR 14.5 NSR MNDD002 173.0 174.0 1.0 0.61 NSR NSR NSR NSR NSR NSR NSR 749 MNDD003 MNDD004 21.4 22.25 0.85 Incl. 21.4 21.70 0.30 1061 + 21.95 22.25 0.30 1044 NSR – denotes no significant result above 0.5 g/t Au, 10 g/t Ag or 0.05% Cu 21 DALAROO METALS LTD ACN 648 476 699