New Risk • Mar 03
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$9.4m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$9.4m free cash flow). Earnings have declined by 57% per year over the past 5 years. Shareholders have been substantially diluted in the past year (199% increase in shares outstanding). Revenue is less than US$1m (AU$1.3k revenue, or US$887). Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Market cap is less than US$100m (AU$45.7m market cap, or US$32.4m). Announcement • Feb 09
DeSoto Resources Limited (ASX:DES) agreed to acquire Yarakoura, Doutila and Moussaya Projects for $0.55 million. DeSoto Resources Limited (ASX:DES) agreed to acquire Yarakoura, Doutila and Moussaya Projects for $0.55 million on February 9, 2026. The consideration consists of $250,000 in cash and an aggregate 2,846,031 DeSoto fully paid ordinary shares in
three separate tranches if the following milestones are achieved, $150,000 and 948,677 Deferred Milestone Shares to be issued on the grant of Reconnaissance Authorisations No. 24670, 24715 and 24671 in favor of DESOTO or one of its subsidiaries, with any payment and any issuance of shares conditional upon the effective registration of the said authorisations in the name of DeSoto or one of its subsidiaries with the Mining Cadastre. $100,000 and 948,677 Deferred Milestone Shares to be issued on the grant of exploration permits in favour of DeSoto or one of its subsidiaries, it being expressly agreed that any payment and any issuance of shares shall be conditional upon the effective registration of said permits in the name of DeSoto or one of its subsidiaries in the Mining Cadastre. 948,677 Deferred Milestone Shares to be issued Twelve 12 months after the grant of the Exploration Permits Any issuance of shares shall occur only after the effective registration of said permits in the name of DeSoto or one of its subsidiaries in the Mining Cadastre. The transaction has been approved by the acquirer board of Directors. 
