Dart Mining NL : Dorchap Lithium Project Earn-In Agreement with SQM

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Figure 1 - Location of Dart Mining's tenements and the Dorchap Lithium / LCT pegmatite exploration project in Northeast Victoria.

Dart Mining geologists first identified the lithium prospectivity of pegmatite dykes in the Dorchap Range in 2016 (seeDTM ASX release May 2016; DTM ASX release August 2016). These are the first recorded lithium pegmatites identified in Victoria, and are believed to have been sourced from the nearby Mount Wills Granite. A regional sampling program has identified a strong fractionation trend across the Dorchap Range, resolving a 20×12 km zone of strongly fractionated pegmatites bearing enriched Li, Cs, Ta, Be and Sn mineralisation (seeDTM ASX release July 2021;DTM ASX release June 2022).

Dart Mining's sampling program has seen some rewarding results, including: 10m at 0.95% Li2O from the Eagle Dyke and 10m at 1.38% Li2O from the Holloway Dyke (Dorchap Range), and 10m at 1.22% Li2O from Scrubby Dyke, 1m at 838 ppm Cs2O and 0.46% SnO2, and a grab sample at 9.98% SnO2 from elsewhere in the Dorchap Range, in addition to 16m at >530 ppm Cs2O, 0.32% Li2O and 104 ppm Ta2O5, and grab samples at 1.57% Li2O and 0.1% Ta2O5 at the Bluejacket Dyke in Glen Wills (seeDart ASX release July 2021). An initial drilling

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program in 2019 has been followed by an airborne LiDAR mapping program in early 2021 (seeDart ASX release March 2021), which has allowed additional, detailed mapping of pegmatite dykes that were previously overlooked in pockets of dense bush across the Dorchap Range.

GLOBAL LITHIUM MARKETS

Global Lithium markets currently remain firm (Figure 2) as evidenced by recent auction results by Pilbara Minerals Ltd (ASX:PLS), reflecting ongoing strong demand from convertors and battery manufacturers for use in Electric Vehicles (EV's). Supply imbalances in the form of increased production have also, so far, failed to materialise. Given the outlook for demand and supply there is potential for these conditions to continue at least in the medium term.

Figure 2 - Five year monthly trends in Lithium concentrate commodity price (source: Market Economics).

KEY TERMS

The execution of the Earn In Agreement (Agreement) between Dart Mining and SQM validates Dart Mining's view of the prospectivity for its Dorchap Lithium Project. The agreed expenditure is intended to be at a level which should enable better definition around that prospectivity.

The key terms of the Agreement are:

• SQM has been granted the right, amongst other things, to explore, mine and treat lithium (and related) minerals within the Project (comprising Victorian exploration tenements EL5315, EL006277, EL006300 and EL006486)
• SQM also has the right, but not the obligation, to sole fund exploration expenditure totalling A$12million over the next 6 years
• During the first earn in period of 3 years, Dart Mining has granted SQM the right, but not the obligation, to earn an initial 30% interest in the Project by sole funding exploration expenditure of A$3million

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• SQM may elect to sole fund expenditure of a further A$9million over two further periods totalling 3 years to earn a further 40% interest in the Project:
• • If SQM elects to continue with the Agreement, a second earn in period until the fifth anniversary of the Commencement Date in which SQM may elect to spend A$3,500,000, to earn a further 21% interest in the Project
  • If SQM elects to continue with the Agreement, a third earn in period until the sixth anniversary of the Commencement Date in which SQM may elect to spend A$5,500,000, to earn a further 19% interest in the Project
• EL5315 is currently subject to renewal by the Minister: if the renewal is granted, SQM will pay the Company the sum of $300,000. If the renewal is not granted and SQM elects to continue to sole fund, then all funding amounts described above will be reduced by approximately 15% to reflect the area lost with EL5315. If EL5315 has not been renewed by the time SQM has spent A$1million, then it may elect to suspend funding exploration activities until the renewal is granted, and the initial 3-year earn in period is extended accordingly
• Dart Mining is appointed as the Manager for the earn in period to conduct exploration and development work on the Project
• SQM may at any time after it has earned an initial 30% interest in the Project elect to enter into a Joint Venture Agreement (JVA) with Dart Mining, on terms to be agreed and in accordance with principles set out in the Agreement. If a JVA is entered into SQM will cease earning a further interest and each party will be liable to fund their expenditure commitments in proportion to their then percentage interests in the Project
• The parties have agreed that Dart Mining retains all rights and obligations in relation to minerals within the tenements comprising the Project, except for lithium and related metals
• The parties agree to establish a Technical Advisory Committee to make decisions to progress of the Project with SQM as the funding party having a casting vote
• SQM and Dart has been granted a right of first refusal in the event that the other party wishes to sell its interest in the Project.

Note, the Company cannot give any assurance that EL5315 will be renewed by the Minister, as renewal is at the Minister's discretion. Nevertheless, to date, Dart Mining has not received any notification from the Department that EL5315 will not be renewed. The renewal applied for is a second renewal.

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