Dart Mining NL : Annual Financial Report June 2017 posted by Dart Mining on 21 Sep 2017

Directors' Report 3

Corporate Governance Statement 12

Auditor's Independence Declaration 13

Consolidated Statement of Comprehensive Income 14

Consolidated Statement of Financial Position 15

Consolidated Statement of Changes in Equity 16

Consolidated Statement of Cash Flows 17

Notes to the Consolidated Financial Statements 18

Directors' Declaration 40

Auditor's Report 41

ASX Additional Information 43

ABN 84 119 904 880

Address Level 6, 412 Collins Street Melbourne VIC 3000

Telephone +61 2 6076 2336

Email info@dartmining.com.au Website www.dartmining.com.au

The Directors of Dart Mining NL submit their report for the year ended 30 June 2017 and to the date of this report.

Operating and Financial Review

The year to 30 June 2017 has been a year of progress in several ongoing corporate and operational areas.

Dart's dispute with Aus. Industry moved forward with a substantial reduction in the company's potential liability in relation to R&D concessions paid to the company over 2012 and 2013 financial years. The company's disputed amount has reduced to approximately $320 k from circa $2m previously. Dart is in ongoing discussions in relation to this issue.

Dart announced in February its acquisition of 50/50 joint-venture tenements covering Gold and Lithium properties from Northern Mine Ventures. Transfer of these joint-venture leases to Dart's 100% benefit are now subject to Ministerial approval and we hope to finalise this in September or October 2017.

More Lithium prospective ground has been applied for EL006486 (Mt. Creek), in and around our pre-existing leases. Leases EL006277 (Glen Wills) and EL006300 (Eskdale) have now been officially granted. In addition, EL5315 (Mitta) has been renewed for a further period.

The company has pursued exploration and development activities within its three defined strategies - Lithium, Porphyries, Orogenic Gold. As previously communicated, development focus in these areas is pointed towards joint-venture arrangements, with suitable partners, who have technical and financial capacity to progress each strategy. Joint-venture discussions in relation to each of the strategies have been, and continue to be, pursued with vigor.

Exploration work has continued, particularly on the Lithium tenements, with encouraging identification of sizeable pegmatite dykes and the positive identification of Spodumene mineralisation along with good Lithium grades. To date we have only taken random rock-chip samples but we anticipate more definitive and specific sampling over the months ahead. Now that we have the granted EL's 006277, and 006300 we are no longer as constrained in our exploration activities.

The company's administrative cost base has been reduced over the year and we see little room for further productive expenditure cuts.

Commodity tailwinds in Lithium, Copper, and Gold are driven by both demand and supply side factors. This is constructive and adds further credence to the company's valuable portfolio of prospective leases.

The year ahead, we hope, will bring progress at all levels and particularly in the Lithium and Porphyry exploration areas.

The board sincerely thanks Dart's shareholders for their continuing support and encouragement and we trust that we can make a difference to the company's fortunes over the next 12 months.

Operating results for the year

The loss for the consolidated entity after income tax was $715,393 (2016: loss $717,334). This result is consistent with expectations of costs associated with the exploration and development programs budgeted and undertaken that reflect:

• costs associated with managing the exploration program;

• reduced activity on research and development exploration expenditure associated with the Polygonal Vortex Model; and

• corporate overheads associated with statutory and regulatory requirements as a consequence of being listed on the Australian Securities Exchange.

Review of financial position

At the end of the financial year, a proportion of the funds raised in prior financial years were held by the Group as cash investments for use in future financial periods. The Group strives to maximise the return on these funds for exploration purposes by investing surplus funds and minimising expenditure on corporate overheads.

Cash flows

The cash flows of the Group consist primarily of payments to suppliers and employees used in advancing the Unicorn Project, together with payments both for exploration activities on tenements held by the Group and the maintenance of the corporate head office. Primarily, head office manages existing projects as well as costs involved in investigating new exploration opportunities.

During the year under review, the Group raised $1,008,095 (net of capital raising costs) through the issue of 111,461,335 ordinary shares (2016: 56,765,732 ordinary shares).

The names and details of the Company's Directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated.

James Chirnside Chairman / Managing Director

Appointed 18 June 2015

James Chirnside has been involved in financial and commodity markets over a thirty---year period. Before studying at Edith Cowan University in Western Australia James worked for Mt Newman Mining in the Pilbara as a geologist's assistant.

During the early part of his formal career he worked for global commodity trading house Bunge where he traded in a range of food, fiber, steel and metal commodities. James went on to run the overnight commodity---trading desk in Melbourne for Bell Commodities where mining clients would hedge metal production on the London Metal Exchange. James worked for Investment Bank County NatWest in London where during the first gulf war he traded crude oil for the firm. James then moved to Hong Kong with Regent Pacific Group where he was responsible for resources investment across Asia Pacific as well as the firm's proprietary activities in base and precious metals trading.

Since returning to Australia and establishing his own asset management company in 2002, James has been involved in investment across the Asia Pacific region.

In 1994 James' Regent Pacific Hedge fund was ranked 1st in the world by S&P Micropal for Emerging Market Funds.

In 2006 James was awarded 1st place in the Australian Hedge Fund awards for best performing fund.

In 2008 James' fund was ranked 1st place out of 495 funds investing across the Asia Pacific region and returned 30% for investors that year.

Other current directorships of listed companies

Mercantile Investments Ltd WAM Capital Ltd

Cadence Capital Ltd Ask Funding Ltd

Former directorships of listed companies in the last three years

Murchison Metals Ltd

Luke Robinson Non-executive Director

Appointed 18 June 2015

Luke Robinson has worked in Financial Markets for 20 years with a number of stockbroking and advisory firms including Phillip Capital and Citi Group.

Recently he has worked as an executive director of Melanesian Exploration, a privately held company, where he was responsible for researching, identifying and acquiring mainly petroleum assets in Papua New Guinea. Luke was a senior client advisor with Philip Capital where he was responsible for advising Institutional and Sophisticated individual investors in the Australian share market. Luke's main focus was in resources companies including mining and energy where he originated and distributed capital raisings for small and mid- sized companies. Luke holds a B. Sc. in Microbiology from the University of Melbourne.

Other current directorships of listed companies

None.

Former directorships of listed companies in the last three years

None.

Russell Simpson Non-executive Director

Appointed 18 June 2015

Russell Simpson has been a successful Riverena Farmer, Merino breeder and irrigator from two Murray River water irrigation schemes for over 40 years. Taking a keen interest in commodity markets, particularly agricultural, gold and metals for the past 20 years, he has been an investor in Dart Mining since 2008 and a substantial shareholder since 2009.

Other current directorships of listed companies

None.

Former directorships of listed companies in last three years

None.

Meredith Lyons Alternate Non-executive Director

Appointed 23 June 2015

Meredith was appointed as an alternate Director by Russell Simpson to act on his behalf when he is not able to exercise his powers as a Director. Her appointment will continue until Mr Simpson revokes it or ceases to be a Director, whichever occurs first.

Other current directorships of listed companies

None.

Former directorships of listed companies in last three years

None.

Julie Edwards Company Secretary

Appointed 1 July 2015

Julie Edwards was appointed as the Chief Financial Officer of Dart on 8 July 2015. She has had over 20 years' experience and involvement in the management of accounting and finance functions. She holds a Bachelor of Commerce degree, is a member of CPA Australia, holds a CPA Public Practice Certificate and is a registered Tax Agent.

Other current directorships of listed companies

None.

Former directorships of listed companies in last three years

None.