DeSoto Resources Limited provided an update on its Northern Territory Gold and Lithium Projects, as well as its manganese project generation activities. Fenton Gold Project: Fixed Loop Electrical Magnetic (FLEM) and Induced Polarisation (IP) geophysical surveys to be completed in April across key structures controlling the Fenton gold trend in advance of a +3,000m Diamond Drill (DD) Program. Re-processing of high-resolution aeromagnetic data (70m line spacing) and evaluation of historic Airborne EM has been completed.

Structural information from historic drilling confirms the broadly antif formal structure with a major fault interpreted along the eastern limb of the Fenton fold complex, separating high and low magnetic intensity signatures. The work completed to date has demonstrated that geophysics is a powerful exploration tool at Fenton, with current and future work designed to identify key structures which have the potential to host iron sulphide rich gold mineralised zones. Historic drilling by Homestake Gold returned good grades at Fenton including FEND18 (55m at 0.89g/t gold from 418m incl.

20m at 1.74 g/t gold from 423m) and FEND14 (17m at 0.71g/t gold from 610m). In the mid-1990's Homestake Gold, previously a 50% owner of the Super Pit in Kalgoorlie, the Plutonic gold mine and the +40Moz Lead Gold deposit in South Dakota, was undertaking a global search for "Lead-style" gold deposits. Fenton was identified as having similarities with the host rocks and structure at Lead, especially in the South Alligator Group, with specific similarities between the Koolpin Formation and Homestake Formation, which hosts the Lead deposit.

Shoobridge Lithium Project: Ground reconnaissance, mapping and field work to begin over the Company's Shoobridge Lithium Project (Shoobridge) in advance of a regional-scale stream sampling program targeting lithium potential approximately 1-3km outboard of mapped granite c ontacts. Shoobridge directly abuts the Company's Fenton Gold Project and Core Lithium's Shoobridge Project, located within the Tipperary pegmatite district, including the Shoobridge pegmatite field and the Plateau Point pegmatite field. Shoobridge pegmatites are considered analogous to those in the Bynoe pegmatite district and presents potential for lithium-rich pegmatite systems. Tenements EL33188 and EL33225 were still in application at the time of the Desoto initial public offering, however both are now granted and form a central part of the Company's Lithium exploration in the Northern Territory.

Fenix Regional Lithium Sampling Program: First-pass stream (129) and rock chip (8) sampling has been completed at the Company's Fenix Project, located in the Northern Territory, and has identified two broad areas of lithium anomalism. New areas of interest show elevated Lithium responses with pathfinder element support, including elevated Cs, Be, Ta, Rb, Sn, W and Tl. A single granite sample returned a ratio that indicates a high degree of fractionation (K/Rb <150 & Mg/Li <30) providing potential to host (Lithium-Caesium-Tantalum) LCT mineralisation.

This first pass lithium exploration program has identified areas of interest, and demonstrated evidence of granite fertility and fractionation, particularly in the south of the project. Lithium reconnaissance stream, soil and rock sampling programs testing areas of interest will recommence as soon as the wet season allows. Emerald Springs Gold Target: A 1,500m Reverse Circulation (RC) drilling program is planned to test for prospective Pine Creek gold mineralised structures as part of the 2023 Northern Territory drill programs. At the Emerald Springs anticline gold target, a coherent >20ppb Au anomaly with associated As halo (>150ppm As) has been defined over a 900m strike length and will be tested.

Manganese Project Generation The Company has identified its highest priority manganese project and country target areas. Priority targets are focused on high-value battery metal focused manganese-rich opportunities with due diligence and groundwork underway. DeSoto will continue to pursue a range of manganese targets generated from its global review of manganese opportunities, as it believes manganese and specifically manganese sulphate to be a key material for the current global energy transition.

Fenix Regional Lithium Sampling Program (Detailed): Lithium exploration commenced at DeSoto's Pine Creek Conceptual Lithium project in late 2022 and included a regolith terrain analysis, rock chip sampling, and a subsequent stream sediment sampling programme. This first pass lithium exploration program has identified areas of interest, and demonstrated evidence of granite fertility and fractionation, particularly in the south of the project. Follow-up lithium reconnaissance stream, soil and rock sampling programs testing areas of interest will recommence as soon as the wet season allows.

In addition, these programs will be expanded to explore the recently granted Shoobridge West licences, and the Shoobridge East area. An initial regolith assessment identified a well-developed stream network over the Proterozoic Birrindudu Basin and Pine Creek Orogen sediments and granites in the project area. The stream network incises outcropping granites and sediments, along with areas of shallow sand cover.

The position of these sands in the landscape suggested that they are colluvial rather than alluvial and that they would be appropriate for first pass stream sediment sampling. Elevated remnants of an older lateritic land surface located in the SE and NW of the project were assessed to require rock and soil sampling including in the recently granted Shoobridge West licence areas. Following the initial regolith assessment, stream sediment sampling was determined to be an appropriate sampling method for the granted eastern licences.

The first pass stream sampling program was designed with a sample density of 1 sample per 2.8sqkm over catchments in EL31356, EL31899, EL32148 and EL32884 for a total of 129 samples. In addition to the streams a total of 8 rocks comprising 7 granite and 1 pegmatite, were also collected from the area. All samples were analysed for a 61 multi-element suite including rare earths in order to assess granite prospectivity and fertility for lithium mineralisation.

The stream geochemical results indicate that although absolute lithium concentrations are low (max 63.9ppm; PCSS173), two areas of elevated Li (>30ppm) were identified by the survey, one in the north and one in the south. The southern area has strongest pathfinder element support with Li associated with elevated Cs, Be, Ta, Rb, Sn, W and Tl. Creek samples in this area drain the Umbrawarra granite.

For the rock samples absolute lithium values were again low, similar to the streams, with the most significant result of 46ppm Li (DSRK0076) returned from a single sample of Umbrawarra granite within the southern area of interest identified by the stream survey.