Desert Metals Completes 2,000m Drilling Phase, Raises $1.16M, Faces DM1O Suspension

Tiogo Drilling Targets Untapped Gold Zone

Desert Metals Limited (ASX:DM1) has wrapped up the first phase of its aircore drilling campaign at the Tiogo gold prospect in northern Côte d’Ivoire, completing 40 holes for approximately 2,000 metres. This initial effort zeroed in on a 900-metre stretch between two previously reported high-grade intercepts, including 12 metres at 4.20 grams per tonne (g/t) gold and 8 metres at 6.47g/t gold, which had never been drilled before. The Phase 1 results, expected in the first half of May 2026, will be critical to defining the mineralised corridor ahead of a potential maiden resource drill-out.

Tiogo sits strategically on the southern border of Perseus Mining’s (ASX:PRU) Sissingué gold mine permit, about 30 kilometres along strike, and directly between Perseus’s recent $23.69 million equity investment in Aurum Resources (ASX:AUE) and its 3 million-ounce Boundiali gold project. The proximity to these established players adds a layer of strategic interest to Desert Metals’ exploration efforts. The current drilling program also builds on a Gradient Array Induced Polarisation (GAIP) geophysics survey that revealed a +4-kilometre anomaly, with prior high-grade intercepts located on its margin, suggesting a significant mineralised system at Tiogo.

Most holes in this phase targeted coincident GAIP and soil geochemistry anomalies, with samples analysed via the Chrysos™ PhotonAssay technique. Local contractor FORAVIE SARL handled the drilling operations. The company plans to extend the program to a total of 120 holes and 6,000 metres across Tiogo and the nearby Kakologo prospect, which previously returned encouraging results such as 26 metres at 0.59g/t gold and 18 metres at 1.02g/t gold from 38 metres depth.

Stream Sediment Sampling Expands Adzope Targets

In southern Côte d’Ivoire, Desert Metals completed a permit-wide stream sediment sampling campaign at its Adzope gold project, collecting 256 samples across 228 square kilometres. Assay results are also expected in the first half of May 2026. This program aims to broaden the exploration pipeline beyond the King Kong prospect, where previous drilling yielded high-grade intercepts including 17 metres at 7.5g/t gold. The sampling was conducted by SEMS Exploration and analysed using bulk leach extractable gold (BLEG) methodology at Intertek Côte d’Ivoire, reflecting a systematic approach to uncovering new targets within the highly prospective Birimian greenstone belt.

$1.16 Million Raised to Fund Exploration Push

Desert Metals has successfully raised approximately $1.16 million through a combination of a fully underwritten non-renounceable entitlement offer and a share placement. The entitlement offer, which closed on 29 April 2026, issued up to 325 million new options at $0.001 each, exercisable at $0.015 before the end of 2027, and was underwritten by CPS Capital Group Pty Ltd. Earlier in January 2026, the company completed the second tranche of a placement raising $834,000 at $0.0065 per share to institutional and sophisticated investors. These funds are earmarked primarily for ongoing drilling at Tiogo and Kakologo, as well as working capital and offer expenses.

The company’s cash flow report shows a cautious but steady burn rate, with exploration and evaluation expenditure of $167,000 in the quarter and a closing cash balance of $662,000. Management has indicated plans to consider further fundraising options following receipt of assay results from the current programs.

ASX Suspends DM1O Securities Pending Compliance

In a separate but material development, ASX Compliance has suspended trading of Desert Metals’ DM1O securities effective immediately under Listing Rule 17.3.4, pending compliance with Listing Rule 2.5. The suspension applies solely to this class of securities and not to the company’s other quoted shares. The announcement does not specify the precise compliance issues or timeline for resolution, leaving some uncertainty around the suspension’s duration and impact on investor liquidity.

This regulatory action adds a note of caution amid Desert Metals’ active exploration and capital raising activities. Investors will be watching closely for updates on compliance progress and any potential implications for the company’s capital structure.

Desert Metals continues to advance its portfolio with a joint venture on the Agboville project, where it can earn up to 85% by funding exploration. The company is also reviewing acquisition opportunities to complement its Côte d’Ivoire assets, focusing on gold and critical minerals.

With assay results from both Tiogo drilling and Adzope sampling expected soon, Desert Metals is positioned at a pivotal moment. The market will be keen to see whether the initial Phase 1 drilling confirms the promise of the untested gold corridor and how the company navigates the regulatory suspension of its DM1O securities.

These developments come against a backdrop of regional consolidation and investment, highlighted by Perseus Mining’s recent stake in Aurum Resources, underscoring the evolving competitive landscape in Côte d’Ivoire’s gold sector.

Desert Metals’ recent funding and exploration activity build on its earlier successes, including high-grade intercepts at King Kong and promising results at Kakologo, positioning the company to potentially unlock significant value from its West African portfolio.

Investors should monitor forthcoming assay results and regulatory updates to gauge the trajectory of Desert Metals’ exploration campaign and the resolution of the ASX suspension.

$325K underwritten option offer and 120-hole drilling program plans provide context for the current activities and funding status.