Desert Minerals Reports Robust Gold Anomalies and Completes Nevada Lithium Drilling, Secures $1M Capital Raise

Mt Monger Gold Project Highlights Titan Anomaly Through Extensive Soil Geochemistry

During Q2 2026, Desert Minerals received assay results from a 379-sample UltraFine+ soil program at Mt Monger Gold Project, revealing strong gold anomalism. The Titan anomaly, trending north-northwest, covers roughly 500 by 300 metres centrally within the survey area. Gold concentrations reached up to 112 parts per billion, with the anomaly aligning with surface quartz veining and coinciding with a historic aircore intercept of 2 metres at 3.8 g/t gold from 49 metres depth in hole NMR550.

An additional anomaly named Orion was identified in the northern sector of Mt Monger. These coherent geochemical trends, combined with their spatial relation to historical drill intercepts and structural complexity, have enhanced Desert Minerals’ understanding of mineralisation potential. These findings have directly informed the maiden drilling program at the Providence Prospect, where all approvals are in place and a contractor appointed, with drilling set to commence in August 2026.

Providence Prospect Drilling to Test Gold Targets Following Approval Completion

Following the successful soil survey, Desert Minerals secured all necessary permits for the maiden drilling at Providence Prospect, marking a critical step from exploration to direct testing of gold anomalies. A drilling contractor has been engaged, with operations scheduled to start in August 2026. This program aims to test the Titan and Orion anomalies through percussion or core drilling to evaluate subsurface geology, collect samples for detailed logging and assays, and assess the potential for economic mineralisation at depth.

This drilling represents a strategic shift from broad reconnaissance to targeted exploration, reflecting confidence in the quality of identified targets from systematic soil geochemistry.

Scotty Lithium Project Drilling Completes With High Core Recovery and Consistent Stratigraphy

The Scotty Lithium Project drilling program concluded on time and within budget during the quarter, targeting priority lithium zones via infill and step-out holes. Utilizing sonic drilling, the company achieved high core recoveries, enabling detailed geological logging and analysis. Consistent clay-hosted stratigraphy was intersected in all holes, including green to olive-grey lithium-bearing clay, blue-green transitional clay at the oxidation-reduction boundary, and brown lithic-rich clay near basement.

Assay results are pending, and upon receipt, Desert Minerals plans to initiate a maiden Mineral Resource Estimate for Scotty, contingent on favorable outcomes.

Scotty Lithium Project Exploration Target Indicates Significant Potential in Nevada Basin

The Scotty Lithium Project holds a JORC (2012) Exploration Target estimated between 460 and 837 million tonnes grading 1,145 to 1,175 ppm lithium. This target is conceptual, with insufficient exploration to define a JORC-compliant Mineral Resource. The company notes uncertainty regarding future resource estimation outcomes.

Nonetheless, the substantial tonnage potential positions Scotty as a key asset. Upcoming assay data will be pivotal in validating the Exploration Target assumptions and advancing toward formal resource definition, a critical focus for investors.

Capital Raise Enhances Financial Position to Support Dual Project Development

Desert Minerals raised $1.0 million via a placement at a premium to market price during Q2 2026, strengthening its balance sheet to progress both Mt Monger and Scotty projects. The premium placement indicates investor confidence in the company’s exploration strategy and upcoming milestones.

As of 30 June 2026, the company held approximately A$4.05 million in cash, providing liquidity for ongoing exploration, including the Providence Prospect drilling scheduled for August 2026. Management continues to evaluate potential acquisitions or partnerships to complement its portfolio, supported by this robust financial position.

Strategic Focus on Tier 1 Jurisdictions and Advanced Exploration Techniques

Desert Minerals targets projects in Tier 1 mining jurisdictions—Western Australia and Nevada—known for strong infrastructure, regulatory transparency, and mining heritage. The Mt Monger Gold Project and Scotty Lithium Project are situated within these established mining regions.

The company employs a systematic, technology-driven exploration approach, integrating UltraFine+ soil geochemistry, magnetotelluric data, and targeted drilling to enhance accuracy, reduce costs, and increase discovery potential. The objective is to advance gold and lithium assets toward JORC-compliant resources, delivering shareholder value through disciplined exploration.

Quarterly Financial Overview Supports Exploration Momentum

The Quarterly Cashflow Report (Appendix 5B) for the period ending 30 June 2026 shows Desert Minerals in a strong financial position with approximately A$4.05 million cash reserves. This reflects the $1.0 million placement and controlled exploration expenditures, enabling advancement of exploration programs without immediate capital needs.

Cash management supported the Scotty drilling completion and preparatory activities at Mt Monger ahead of Providence drilling. Transparent quarterly reporting provides investors with insight into capital deployment and financial sustainability as the company progresses its projects.

Executive Chairman Highlights Progress and Outlook

Executive Chairman Peretz Shapiro described Q2 2026 as a period of solid progress. He highlighted encouraging UltraFine+ soil results at Mt Monger refining mineralisation understanding and readiness to begin Providence drilling. At Scotty, he noted the efficient drill program enhanced geological confidence, meeting or exceeding expectations.

Mr. Shapiro emphasized the strategic advantage of the capital raise in positioning the company to advance both projects and anticipated near-term catalysts, including Providence drilling outcomes and pending Scotty assay results. His commentary aligns with best practices for junior explorers, providing context and setting expectations for upcoming milestones.

Upcoming Catalysts to Drive Investor Interest

Key near-term events include the August 2026 commencement of drilling at Mt Monger's Providence Prospect, directly testing the Titan and Orion anomalies. Investors will monitor drilling progress and assay results, which will provide critical subsurface data on gold mineralisation potential.

Additionally, assay results from the Scotty Lithium Project drilling will inform progression toward a maiden Mineral Resource Estimate. Beyond project-specific developments, investors will watch for announcements regarding potential acquisitions or partnerships aimed at expanding Desert Minerals’ high-quality mineral asset portfolio.