Highlights

• Desert Minerals used its quarterly report for the period ended 30 September 2026, released on 29 October 2026.

• The headline technical item was the maiden JORC (2012) Mineral Resource for Scotty, which the company reported to.

• Desert also described an Exploration Target of 218 to 327 million tonnes at 990 to 1,490 ppm lithium.

• At Providence, the company completed five reverse-circulation holes totalling 1,020 metres to test extensions to the existing Mineral.

Desert Minerals (ASX:DSM) — used its quarterly report for the period ended 30 September 2026, released on 29 October 2026, to set out progress at two projects: a maiden lithium Mineral Resource at Scotty in Nevada and a reverse-circulation drilling program at Providence, part of its Mt Monger gold project in Western Australia. The company said all five Providence holes intersected mineralisation above 0.5 g/t gold.

Scotty lithium project

The headline technical item was the maiden JORC (2012) Mineral Resource for Scotty, which the company reported to the ASX on 24 August 2026. It totals 264.9 million tonnes at 1,006 parts per million lithium. Of that, 139.8 million tonnes at 1,002 ppm is classified as Indicated and 125.1 million tonnes at 1,011 ppm as Inferred.

Desert also described an Exploration Target of 218 to 327 million tonnes at 990 to 1,490 ppm lithium, located to the north-west of the resource. The company was explicit that this target is conceptual and that there has been insufficient exploration to estimate a Mineral Resource from it; it said it is uncertain whether further exploration will result in one. The best intercept highlighted was hole SC23-003, which returned 124.97 metres at 1,237 ppm lithium and sits outside the resource boundary. Desert said follow-up drilling of the target could increase the size and grade of the resource base. Its Scotty claims are held 51 per cent through NEVLITH LLC.

Mt Monger gold drilling

At Providence, the company completed five reverse-circulation holes totalling 1,020 metres to test extensions to the existing Mineral Resource. All five intersected mineralisation above 0.5 g/t gold. A post-quarter result of 1 metre at 28.2 g/t gold was also reported. Holes 26MNRC0039 to 0041 are interpreted by the company as a new shallow structure at around 50 metres depth that remains open to the north-west. The existing Providence resource is also open to the north-west and south-west.

The Mt Monger tenements are 80 per cent owned, with the remaining 20 per cent held by entities connected with GoldArc. The company noted that several tenements have expired and remain live only pending mining lease conversion applications.

Cash and spending

Cash at 30 September 2026 was A$3.399m, compared with A$4.050m at the end of the previous quarter. Operating outflow was A$147,000, and investing outflow was A$505,000, of which A$503,000 was exploration and evaluation. There were no financing flows and no unused financing facilities. Payments to related parties were about A$31,000 covering directors' fees, salaries and consulting. The Appendix 5B estimates a funding runway of 5.2 quarters.

The report also compared actual spending with the prospectus dated 21 August 2025. Desert has raised A$6.0m, made up of a A$5.0m public offer and a A$1.0m capital raising in July 2026. Exploration spending of A$1.31m compares with a A$2.85m budget, and director and management fees of A$132,000 compare with A$450,000 budgeted. Repayment of the LLM loan was A$275,000 against A$200,000 budgeted, an overrun of A$75,000.

Reading the figures

Cash fell mainly because of exploration spending, with the company reporting no new financing during the quarter.

Governance

At the general meeting on 19 August 2026, all resolutions passed, including ratification of an earlier placement and approval of director performance rights. The company said it is assessing project and corporate opportunities. The annual report, corporate governance statement and Appendix 4G were lodged on 30 September 2026.

Risks and what to watch

The report gave no dated milestones. Items it points to include decisions on the pending Mt Monger mining lease conversions, further Providence drilling and extension work, and follow-up drilling at the Scotty Exploration Target. Risks include the conceptual nature of the Exploration Target, the tenure position at Mt Monger, the partial ownership structure at both projects, and a funding runway of just over five quarters at the current rate.