Desert Minerals Reports Robust Soil Gold Anomalies and Completes Scotty Lithium Drilling Program in Nevada

Mt Monger Gold Project Highlights Coherent Titan Anomaly from Soil Geochemistry

During the quarter, Desert Minerals received assay results from a 379-sample UltraFine+ soil program at Mt Monger Gold Project, revealing strong gold anomalism. The results delineated a north-northwesterly trending Titan anomaly spanning roughly 500 by 300 metres in the survey's central area. Gold concentrations peaked at 112 parts per billion, with the Titan anomaly correlating in parts with surface quartz veining. Notably, this anomaly aligns with a historical aircore intercept of 2 metres grading 3.8 grams per tonne gold from 49 metres depth in hole NMR550.

Additionally, the soil survey identified the Orion anomaly in the northern sector of Mt Monger. The spatial correlation of these geochemical trends with historic drilling and structural complexities has enhanced the company's understanding of mineralisation potential. These insights have directly informed the maiden drilling program at the Providence Prospect, for which all approvals are secured and a drilling contractor appointed. Drilling is scheduled to commence in August 2026, marking a key advancement in testing soil survey-identified anomalies.

Providence Prospect Drilling Set to Test Gold Targets After Approval Completion

Following the successful UltraFine+ soil survey, Desert Minerals has finalized all necessary approvals to initiate the maiden drilling program at Providence Prospect. The company appointed a drilling contractor and plans to begin drilling in August 2026. This program represents a critical transition from exploration and evaluation to direct testing of gold anomalies.

The drilling will target the Titan and Orion anomalies identified in the soil survey. By employing percussion or core drilling, Desert Minerals aims to evaluate subsurface geology, obtain samples for detailed logging and assays, and assess whether surface geochemical signatures correspond to economic mineralisation at depth. This focused drilling approach reflects the company's confidence in the quality of targets emerging from systematic exploration.

Scotty Lithium Project Drilling Completed with High Core Recovery and Consistent Stratigraphy

The Scotty Lithium Project drilling program concluded on time and within budget during the quarter, successfully targeting high-priority lithium zones through infill and step-out drilling. Guided by prior drilling, soil geochemistry, and magnetotelluric data, sonic drilling was employed, delivering high core recoveries and quality samples for geological logging and analysis.

All drill holes intersected consistent clay-hosted stratigraphy interpreted as potentially lithium-bearing, including lean green to olive-grey clay as the primary lithium unit, blue-green transitional clay at the oxidation-reduction boundary, and brown lithic-rich clay representing basement or near-basement material. The identification of basement material in multiple holes provides essential geological context. Assay results are pending, after which Desert Minerals plans to progress toward a maiden Mineral Resource Estimate for Scotty, contingent on results.

Scotty Lithium Project Exploration Target Indicates Substantial Resource Potential

The Scotty Lithium Project holds a JORC (2012) Exploration Target of 460 to 837 million tonnes grading 1,145 to 1,175 ppm lithium. The company emphasizes this target is conceptual, with insufficient exploration to estimate a Mineral Resource under JORC standards. It remains uncertain whether further exploration will yield a JORC-compliant Mineral Resource.

Nevertheless, the Exploration Target suggests significant tonnage potential, positioning Scotty as a key asset. Upcoming assay results will critically test the assumptions underpinning this target and inform progression toward a formal Mineral Resource Estimate. The timing of these results is a focal point for investors tracking project development.

Capital Raise Enhances Financial Position to Support Project Advancement

During the quarter, Desert Minerals raised $1.0 million through a placement at a premium to the prevailing share price to strengthen its balance sheet for advancing both Mt Monger and Scotty projects. The premium placement reflects investor confidence in the company’s exploration strategy and near-term milestones.

As of 30 June 2026, the company held approximately A$4.05 million in cash reserves, providing liquidity to fund ongoing exploration, including the Providence Prospect drilling scheduled for August 2026. Management continues to evaluate potential project and corporate opportunities to complement its portfolio, with the strengthened balance sheet enabling pursuit of value-accretive initiatives while advancing core exploration.

Strategic Focus on Tier 1 Jurisdictions and Advanced Exploration Techniques

Desert Minerals targets projects in Tier 1 mining jurisdictions in Australia and North America, including the Mt Monger Gold Project in Western Australia and the Scotty Lithium Project in Nevada, USA. These regions offer established infrastructure, transparent regulations, skilled labor, and mining histories.

The company employs a systematic, technology-driven exploration approach, utilizing advanced soil geochemistry such as UltraFine+ sampling, magnetotelluric datasets, and targeted drilling. This methodology aims to enhance targeting precision, reduce drilling costs, and improve the likelihood of discovering economic mineralisation. Desert Minerals focuses on advancing gold and lithium assets toward JORC-compliant resources to deliver shareholder value.

Quarterly Financial Overview Supports Exploration Initiatives

The Quarterly Cashflow Report (Appendix 5B) for the period ending 30 June 2026 details Desert Minerals’ financial activities, confirming a strong cash position of approximately A$4.05 million. This reflects the $1.0 million placement and prudent management of exploration expenditures.

Cashflow management supported completion of Scotty drilling on budget and progress at Mt Monger ahead of the Providence drilling program. With drilling set for August 2026, the company is well-positioned to manage the increased costs associated with drilling. Transparent quarterly reporting offers investors insights into capital deployment and financial sustainability.

Executive Commentary on Q2 Progress and Outlook

Executive Chairman Peretz Shapiro described the quarter as delivering solid progress across both projects. He highlighted encouraging UltraFine+ soil results at Mt Monger refining mineralisation understanding and readiness to commence Providence drilling. At Scotty, he noted the efficient drill program enhanced geological confidence, meeting or exceeding expectations on lithium potential.

Mr. Shapiro emphasized the strategic benefit of the capital raise, positioning the company to advance projects and anticipating upcoming results as key market catalysts. His remarks align with best practices for junior explorers, providing context and setting expectations for near-term milestones while underscoring operational discipline.

Upcoming Catalysts and Investor Focus

Investors will closely monitor the August 2026 start of drilling at Mt Monger’s Providence Prospect, which will test the Titan and Orion anomalies from the soil survey. Key metrics include drilling progress, hole locations, and assay results, providing the first subsurface data on gold mineralisation potential.

Additionally, pending assay results from Scotty Lithium Project drilling will inform progression toward a maiden Mineral Resource Estimate. These results will validate lithium grade and thickness assumptions and influence resource classification. Beyond project-specific catalysts, investors may watch for announcements on potential acquisitions or partnerships aimed at expanding Desert Minerals’ portfolio of high-quality mineral assets.