2021

ANNUAL REPORT

CORPORATE DIRECTORY

Directors

Robert Reynolds

Non-Executive Chairman

Leigh Junk

Managing Director

Eduard Eshuys

Non-Executive Director

Mick Wilkes

Non-Executive Director

Company Secretary

Kevin Hart

Registered Office and Principal Place of Business

Alluvion

Level 19

58 Mounts Bay Road

Perth WA 6000 Australia

Telephone:

08 6323 9000

Facsimile:

08 6323 9099

Website:

www.daciangold.com.au

Email:

info@daciangold.com.au

Auditor

BDO Audit (WA) Pty Ltd

38 Station Street

Subiaco WA 6008 Australia

Share Registry

Computershare Investor Services Pty Ltd

Level 11

172 St Georges Terrace

Perth WA 6000

Australia

Stock Exchange Listing

The Company's shares are quoted on the Australian Securities Exchange. The home exchange is Perth, Western Australia.

ASX Code

DCN - Ordinary shares

Domicile and Country of Incorporation

Australia

ACN

154 262 978

ANNUAL REPORT 2021

CONTENTS

CORPORATE DIRECTORY

INSIDE COVER

COMPANY HIGHLIGHTS

2

CHAIRMAN'S LETTER

3

BOARD AND GOVERNANCE

4

OUR SUSTAINABILITY FOOTPRINT

7

REVIEW OF OPERATIONS

10

EXPLORATION AND GROWTH

16

MINERAL RESOURCES AND ORE RESERVES

23

ANNUAL FINANCIAL STATEMENTS

28

DIRECTOR'S REPORT

31

REMUNERATION REPORT (AUDITED)

40

AUDITOR'S INDEPENDENCE DECLARATION

50

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

51

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

52

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

53

CONSOLIDATED STATEMENT OF CASH FLOWS

54

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

55

DIRECTORS' DECLARATION

87

INDEPENDENT AUDITOR'S REPORT

88

ASX ADDITIONAL INFORMATION

93

1

COMPANY HIGHLIGHTS FY2021

Consolidation of the operation and our financial position through an updated mine plan and significant debt and hedge reduction.

Operational

Financial

GOLD PRODUCTION

CASH FLOW FROM OPERATIONS

106,919 ounces

$55.5M

AISC

REPAID DEBT DURING THE YEAR

$1,556 per ounce

$47.9M

ORE RESERVES AND MINERAL

ABSORBED SIGNIFICANT MARK-TO-MARKET

RESOURCES UNDERPINNING THE

COST OF HEDGE BOOK

COMPANY'S FIVE YEAR MINE PLAN

$29.4M

Ore Reserves

0.4Moz

CASH AND GOLD ON HAND

Mineral Resources

$41.8M

2.5Moz

REMAINING DEBT

$16.2M

2 ANNUAL REPORT 2021

CHAIRMAN'S LETTER TO SHAREHOLDERS

Dear Fellow Shareholders

On behalf of your Board of Directors I am pleased to present to you Dacian Gold Limited's 2021 Annual Report.

The 2021 financial year has been a challenging one with COVID-19 and significant changes to the Board. Foundation directors, Ian Cochrane and Barry Patterson, both stepped down during the year due to health issues. Sadly, both Ian and Barry passed away shortly after retirement from the Dacian Board and our deepest sympathies are with Ian's and Barry's families.

Work continued during the 2021 financial year to strengthen the Company's position as a gold producer in the north-eastern goldfields of Western Australia. A substantial investment in drilling programs and technical personnel was dedicated to our Mineral Resources, culminating in our 30 June 2021 Mineral Resource and Ore Reserve estimates, that provided the foundation for our expanded five-year mine plan.

This updated mine plan includes the planned recommencement of underground mining at Mt Morgans, complemented by exploration success in the extension of the Mt Marven open pit, as well as the March 2021 acquisition of the nearby Redcliffe Gold Project via a merger with NTM Gold Limited.

Following the merger with NTM the Company welcomed Eduard Eshuys to the Board, and in September 2021 also welcomed Mick Wilkes to the Board.

In the 2021 financial year the Company produced 106,919 ounces of gold at an AISC of $1,556 per ounce, generating $55.5 million in operating cash flow, up from $23.0 million in the previous year. This positive result is after accounting for $29.4 million in forgone revenue from the delivery of 57,265 ounces of gold hedging related to the original project finance debt facility.

In addition to extinguishing 68% of the hedge position during the year, the Company also repaid $47.9 million of debt to significantly improve the Company's financial position.

During the year the Company ramped up its exploration activities as it looks to discover the next generation of deposits at Mt Morgans and Redcliffe. Dacian looks forward to building on its foundations as an established gold producer with a large processing facility and major land holding in the Leonora-Laverton gold district.

On behalf of the Board I would like to thank our executive management team and all our employees and contractors for their tremendous effort during 2021. I would also like to thank all our stakeholders, and in particular our shareholders, for their support throughout the year. We are confident that the effort put into the business in 2021 provides the platform to realise the full potential of Dacian's assets.

Robert Reynolds

Non-Executive Chairman

3

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Dacian Gold Limited published this content on 22 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2021 07:43:07 UTC.