Dalaroo Metals Ltd. announced recently identified high-grade base metal and silver assay results ahead of the commencement of follow up (second phase) AC drilling program at the Browns prospect. The ferruginous and gossanous rock units hosting the anomalous rock chip samples reported were discovered during recent geological site inspections of the Browns July 2022 AC drill zone. During this field work, geologists identified previously unsampled ironstone/ferruginous and locally gossanous rock units and float rock over a strike of approximately 60m, within the vicinity of drillholes intersecting Pb, Zn and/or Ag mineralization.

These units have returned the highly anomalous base metal (up to 39.6% Pb, up to 0.71% Zn) and silver (up to 82 g/t Ag) concentrations reported herein. Furthermore, it is noted that numerous mineralized samples contained co-enrichments of Cadmium (18 ppm), Thallium (32.9ppm) and Manganese (8400ppm) - an element suite associated with large-scale sedimentary rock hosted base metal mineralized systems (e.g. Large et al., 19991). Additionally, geologists have noted surface expressions of nickeliferous ultramafic rock units intersected in drilling (including 49m @ 0.24% Ni from 12 m [LRAC007]; as weathered ultramafic caprock units that extend eastwards over 100m beyond the drilled intersections.

Browns was targeted as one of six significant base metal (Pb-Zn) anomalies in soils identified across the 100% owned Lyons River project (703 km2) through staged systematic soil geochemical surveys. Browns 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. Combined, the anomalous soil base metal zones span a 30 km x 10 km area of Paleoproterozoic basin stratigraphy within the Mutherbukin Zone, Gascoyne Province.

The first pass AC drilling program completed in July 2022 outlined a new and significant BHT/Sediment hosted-style Pb-Zn-Ag mineralization, which has been defined over approximately 800m of strike length and remains open in all directions. Significant Pb-Zn sulphide intercepts from the July 2022 Browns AC drilling (ASX: DAL - see release from 12 September 2 Drill hole LRAC010: 16m @ 0.72% Pb, 0.35% Zn and 2g/t Ag from 32m, including 8m @ 1.1% Pb and 2.50 g/t Ag from 36m. Drill hole LRAC008: 28m @ 0.41 % Pb, 0.20% Zn from 0m, including 8m @ 0.75% Pb, 0.20% Zn and 1.25 g/t Ag from 16m.

First pass AC drill program has only tested the northern part of the 2 km x 1 km zone of Pb-Zn soil/rock chip anomalism at Browns. Early geological interpretation of the recent drilling results and the available gravity and magnetics data outline an interpreted sub-basin fold or trough structure south of current drilling. Such a structure may represent a deeper portion of the paleo-basin architecture and a favourable environment for formation of prospective host stratigraphy.

Significantly, this interpreted structure spatially coincides with elevated lead and zinc in soil and ironstone subcrop rock chip samples. The significant results of Pb-Zn-Ag rock chips and AC drilling to date continue to confirm the potential for multiple Pb-Zn discoveries in the Lyons River project, an emerging new Broken Hill Type (BHT) /Sediment-hosted deposit-style terrain in Western Australia. Exploration activities planned for the Browns prospect for the remainder of 2022 include a focused follow up 2nd phase AC drill program comprising 24 angled AC drill holes for approximately 2,000 metres.

The Company's AC drill program at the Browns prospect is designed to test the following: Up dip and step out from LRAC010 significant intersection of 8m of 1.1% Pb and 2.5g/t Ag. Northern limb of interpreted synclinal fold closure defined by detailed gravity, coincident with NW-striking and stratigraphy-parallel trend of anomalous Pb-Zn in soils and rock chips from outcropping ferruginous bands. A NE-trending structural feature adjacent to drilled Pb-Zn-Ag mineralized intercepts, interpreted from gravity/magnetic and aerial imagery datasets.

Untested discrete Zn-in-soil anomalism Systematic and detailed rock chip sampling is underway in areas of Rare Earth anomalism including area with previously reported results of up to 0.15% TREO at Lyons River. A program of field geological mapping and rock chip sampling of outcropping pegmatites on the high priority lithium targets, generated by multi-element data review is underway. Soil geochemical sampling programs at the lithium targets is being completed.

Results from the field geological mapping coupled with rock chip sampling and subsequent infill soil geochemical sampling programs will guide the next phase of exploration.