DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2008

Mar 5, 2008

ASX Announcement

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6 March 2008

The Manager Companies Announcements Office Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

EXPLORATION UPDATE

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The Company is pleased to provide an update on the progress of its dual drilling programs in the Marla region of northern South Australia. Both programs are progressing broadly in line with previous guidance from the Company (ASX release 31/01/2008) with diamond drilling of the first hole at Welbourn Hill, EWHD1 at 256 metres (as NT QLD at 5.00pm 5/03/08) and 3 rotary-mud drill ~~Illog~~ wa Creek holes completed Abminga ~~Abm~~ inga East to-date over the SA Eromanga Basin prospective Atlas/ Kingoonya ~~Ma~~ rree Baco palaeodrainage Gawler Craton Billa Kalina systems. NSW 500km VIC

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WA
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Figure 1 Location of the Welbourn Hill and Abminga East Project areas.

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NT QLD
VIC
Northern Gawler Craton
��������������� � ������� � Welbourn HillWelbourn HillWelbourn HiWelbourn Hi ll IOCG Project
TAS Marla
Welbourn Hill Coober Pedy ����������������
(Eromanga Uranium 100%) ���� Prominent Hill
The Welbourn Hill Project is located Gawler ���� Olympic Dam
approximately 40kms east of the township Craton Carrapeteena ��� �
of Marla in far northern South Australia
Ceduna
(Figure 1) and forms part of the company’s ��������������� �
Port Augusta ��������������� �
Northern Gawler Craton IOCGU Initiative.
This exciting target is defined by coincident
high order gravity and magnetic anomalies
at the north-western limits of the Gawler
Craton and is considered to be prospective Port Lincoln ��������������� � AdelaideAdelaideAdelaideAdelaide �������������� � �
for iron oxide-copper-gold-uranium 200 km
mineralisation similar to that at the Olympic
Dam, Prominent Hill and Carrapateena
Figure 2 Northern Gawler Craton IOCG Project
deposits to the south-east (Figure 2). Area.
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Eromanga Uranium Limited ACN 119 031 864

62 Beulah Road Norwood South Australia 5067

PO Box 3126 Norwood South Australia 5067

Phone 61 8 8132 7970 Fax 61 8 8132 7999 Email info@eromangauranium.com web www.eromangauranium.com

Eromanga is drilling two deep diamond drill holes (EWHD1 & 2), to 800m depths, as an initial test of the Welbourn Hill anomaly (Figure 3). Both holes have been successfully pre-collared through the Mesozoic cover sediments to depths of approximately 200m. This has been an important outcome for the Company as it has been these upper units of the cover sequence that have previously prevented successful drill testing of Welbourn Hill.

After some initial delays the diamond drill rig is now set up over the pre-collar for EWHD1 and as at 5.00pm on the 5th March 2008 had reached a depth of 256m.

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EL4020 ELA
2007/532
B
6,980,000 mN6,980,000 mN6,980,000 mN6,980,000 mN
Nicholson-2Nicholson-2Nicholson-2Nicholson-2 ������� �
EWHD-2EWHD-2EWHD-2EWHD-2 ������� �
Target Body ������������ � �� � EWHD-1EWHD-1EWHD-1EWHD-1
WHD-2WHD-2WHD-2WHD-2
6,970,000 mN6,970,000 mN6,970,000 mN6,970,000 mN
A
������� � Proposed Drillhole
������� � Existing Drillhole 2 km
Fault
400,000 mE400,000 mE400,000 mE400,000 mE 410,000 mE410,000 mE410,000 mE410,000 mE
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Figure 3 Welbourn Hill Gravity Image.

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The Atlas/Baco drainages are located approximately 100km north/north-east of Marla SA (Figure 1) and form part of over 250km of interpreted palaeodrainage development in the Abminga area (Figure 4). These drainages are considered to be highly prospective for sandstone-hosted uranium mineralisation similar to that currently being mined at the Beverly deposit in the Frome Embayment SA.

Logging of the available drill core indicates that the current drill hole has intersected cover sediments that are in line with the company’s expectations. Target depths to intersect the top of the modelled gravity anomaly at Welbourn Hill are approximately 650 metres with the Company anticipating that this will require another 6 to 8 days of drilling (on double shift).

The Company is also pleased to advise that the Welbourn Hill and Nicholson projects which form part of Eromanga’s Northern Gawler Craton IOCGU Initiative have received the maximum grant of $100,000 in the recently announced round of 2008 PACE funding. This support, under the South Australian Government’s exploration initiative, for the Company’s exploration programs in the Marla region is very pleasing.

The current drill program has been designed to confirm and enhance the understanding of the drainage geometries interpreted from the geophysical data sets as well as directly testing for the presence of uranium mineralisation. First results from the drill program are expected towards the end of March 2008.

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ABMINGA EAST – ATLAS/BACO Palaeodrainages

(Eromanga Uranium 100%)

Rotary-mud drill testing of the Atlas/Baco palaeodrainage systems has commenced with the first 3 holes of a planned initial program of 25-30 holes having been completed as at 5/03/08.

Mr Kevin Lines Managing Director

6 March 2008

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EL3602
Mount Anthony EL3982
Mount Treloar
Miller
Gassendi
Eromanga Uranium 100%
EL3186 Maximus Resources JV
Warrataddy Hill Delambre
-26º30' Caldera Resources JV
Palaeochannel
EL3601
Black Hill Dam
20 km
EL3964
Enungarenna Hill
ELA 594/07 Lambina
Kepler
Baco
Julius
Lambert
Euler
Franklin
Capella
Zeno
Atlas
Halley
Isidorus
134º 134º30'
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Figure 4 New palaeodrainages identified, outside of the current targets in the Atlas/Baco systems

For further information please contact Kevin Lines on 08 8132 7970 or 0419 801010

Further information relating to Eromanga Uranium Limited and its various exploration projects can be found on the Eromanga website: www.eromangauranium.com

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Kevin Lines who is a Member of the Australasian Institute of Mining and Metallurgy, and who has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration, and the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (the JORC Code). This report is issued in the form and context in which it appears with the written consent of the Competent Person, who is Managing Director of the Company.

Drilling Welbourn Hill precollars - February 2008.