Dundas Minerals : Quarterly Report and Cash Flow Statement

28 April 2022

Dundas Minerals Limited

Directors

Non-Executive Chairman

Mark Chadwick

Managing Director

Shane Volk

Technical Director

Tim Hronsky

Company Secretary

•

Shane Volk

Issued Capital (ASX: DUN)

Ordinary Shares: 60,180,216

ASX Quoted: 36,613,652

Escrow: 23,566,564

Listed Options: 30,090,138

Unlisted Options: 14,000,000

Highlights

• o AMT survey successfully completed with highly conductive anomalies identified at Central and Matilda South prospects

• o North-East prospect area infill gravity survey completed

• o 100m spaced airborne magnetic survey flown

• o Results from North-East prospect area soil sample program received, with zones of Ni-Cu-Co anomalism identified

• o Appointment of Petricore Solutions and experienced Fraser Range Senior Exploration Geologist

• o Free Loyalty Options allotted to all eligible shareholders

Dundas Minerals Limited (ASX: DUN) ("Dundas Minerals" or "the Company") is actively exploring for nickel, copper and gold in the prospective Albany-Fraser Orogen, Western Australia.

EXPLORATION OVERVIEW

During the quarter the Company's exploration activities predominantly focussed on the Matilda South prospect and the Central target in the North-East prospect area (Figure 1).

These two new nickel-copper prospects were identified by Dundas Minerals from the quality data that was obtained from two project-scale geophysical surveys completed during the previous quarter - a helicopter borne SkyTEMTM electromagnetic (EM) survey, and a ground gravity survey.

During the quarter Audiomagnetotelluric (AMT) surveys were completed at both the Matilda South prospect and the Central target, and an infill gravity survey was completed across North-East prospect area, which included the Central target. The primary purpose for the AMT surveys was to test for possible zones of sub-surface low resistivity (equivalent to high conductivity). If present, such zones may represent areas to drill test for the presence of possible nickel and / or copper mineralisation hosted in massive sulphides. The infill gravity survey assisted in the planning of the AMT survey.

The AMT surveys at both prospects were successful, with excellent results obtained. Zones of low resistivity (equivalent to high conductivity) were initially detected at the Central target, and then at Matilda South (details Page 3).

Subiaco, WA [e-mail]www.dundasminerals.com

Suite 13, 100 Railway Road Suite 13, 100 RailwSauybiRacooa,dWA 6008

As a result of these positive AMT survey results, the Company has decided to proceed to drilling at both prospects for possible mineralisation at the earliest opportunity.

The aim is for drilling to commence during late July or early August 2022. The actual timing for drilling commencement in not certain, it will ultimately be determined by when requisite approvals are obtained, weather (amount of winter rain), and drill rig availability. We are working to ensure that drilling commences as quickly as possible, and will keep shareholders informed of developments.

Additional exploration activity undertaken during the quarter included: (a) the completion of the Company's maiden drilling programs at the Kokoda (gold) and Jumbuck (nickel) prospects - assay results were expected during the quarter but are delayed due to unanticipated laboratory backlogs; (b) the completion of a first-ever soil sample program across the North-East prospect area, plus a soil sample program at the Central target - these samples are currently awaiting assay; and (c) the completion of a close spaced (100m lines) airborne magnetic survey to cover areas within the Dundas project that are not yet covered by 100m spaced data.

Figure 1 Location of Matilda South prospect and Central target (colour images gravity, background magnetics)

Central Target

(North- East prospect area)

Matilda South

Prospect

AMT SURVEY RESULTS AT MATILDA SOUTH AND CENTRAL

During the quarter the Company completed two extremely successful Audiomagnetotelluric (AMT) surveys, initially at its 100% owned Central nickel/copper exploration target, followed by a survey at its 100% owned Matilda South nickel/copper exploration prospect. The surveys were undertaken by Adelaide based Zonge Engineering Pty Ltd, which mobilised to site on 27 February 2022, and completed the surveys on 21 March 2022.

At the Central target, the AMT survey was designed to test, to a maximum depth of 1500m, conductive anomalies that were identified by the Company from a SkyTEM airborne electromagnetic survey that it completed in August 2021.

At Matilda South, the AMT survey was designed to investigate for zones of resistivity to a maximum depth of 1,500m, within the large circular gravity anomaly interpreted as almost certainly a mafic / ultramafic intrusion.

AMT Results - Central target

Very low resistivity values (equivalent to high conductivity) of less than 1 ohm/metre (Ω.m) were returned from the modelling of the two AMT survey lines (Figure 4) completed at the Central target during March 2022.

The zones of low resistivity (deep brown in colour) are illustrated in the sections (Figures 2 and 3) for the two AMT lines: 11000 and 12250. The low resistivity areas extend to a maximum depth of approximately 700m below the surface. The cause of the resistivity anomalies may be massive sulphides (which can host nickel, copper and other types of mineralisation), or possibly graphite. Drill testing is required to determine both the rock type and the cause of the anomalies.

The identification of the conductive anomalies at the Central target is extremely rewarding, and testament to the exploration methodology that the Company has been following.

As far as Dundas Minerals has been able to determine there has been no previous on-ground exploration conducted at the Central target, or in the surrounding area. However, access is excellent as a track was cleared for Norseman Gold PLC (tenement holder at the time) in 2010, for a planned reconnaissance drilling program in the area - but due to financial constraints the program never commenced.

During March 2022, in response to the positive AMT survey results, Dundas Minerals also completed a localised soil sample program (63 samples) at the Central target. Assay results from the program are expected during the current quarter and any elevated values returned from the program (e.g. nickel and/or copper) would be extremely encouraging.

Figure 2: Cross Section line 11000 (see Figure 4) showing modelled AMT data. The deep brown colour indicates areas of least resistivity (highest conductivity)

Surface

NW

SE

Figure 3: Cross Section line 12250 (see Figure 4) showing modelled AMT data. The deep brown colour indicates areas of least resistivity (highest conductivity)

Surface

NW

SE

Figure 4: Left:

Central Target showing location of planned AMT lines over interpreted SkyTEM conductors (shaded polygons), underlying image is gravity. AMT Lines 11000 and 12250 were completedRight: Location of Central Target (colour image gravity, background magnetics)

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AMT Results - Matilda South

Three AMT survey lines were completed at the Company's 100% owned Matilda South exploration prospect during the quarter (Figure 8), with low resistivity (equivalent to high conductivity) values returned from each line. Survey results are most encouraging, as resistivity values are interpreted as being consistent with a mafic / ultramafic intrusion. Pleasingly, distinct zones of low resistivity (equivalent to high conductivity) have been modelled on each of the three AMT lines that are shown in Figures 5, 6 and 7 (lines 9800, 10200 and 10600). These zones will be the focus for the planning of an initial drilling program at Matilda South to test for mineralisation.

The identification of resistivity anomalies at Matilda South is the outcome that Dundas was aiming for from the AMT survey program.. These encouraging results now provide us with distinct areas of focus, as we continue to progress Matilda South towards a maiden drilling program. The exploration history of the Matilda South area is quite intriguing. Much of the area that now sits within Dundas Minerals granted exploration licence E63/2056 was held by Canadian junior explorer IGC Resources Inc., from 2005 until 2009 (via its Australian subsidiary Goldport Pty Ltd). During this time a soil sampling campaign and a gravity survey were completed, which culminated in a wide-spaced air-core drilling program (44 holes spaced 1km or 2km apart (2006)). The deepest air-core drill hole was to 64m and only one hole was drilled within the area covered by the AMT survey, that hole was to a depth of 11m. Likewise, only one soil sample was taken from within the AMT survey area, and none of the soil samples taken by Goldport were assayed for nickel. Despite a recommendation being made to proceed to deeper drilling following completion of its 2006 air-core drill program1, no further drilling was ever undertaken, and no ground based exploration has taken place at, or in the vicinity of the Matilda South prospect since that time.

1

WAMEX Open File Report ITAR (https://www.dmp.wa.gov.au/WAMEX-Minerals-Exploration-1476.aspx) A76573 - Fraser Range Project Annual Technical Report for the period 1/07/2006 to 1/08/2007, EL63/885, 884 and 883 GOLDPORT PTY LTD