DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2010

Dec 8, 2010

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

9 December 2010

Dear Sir/Madam

NOTICE UNDER SECTION 708A OF THE CORPORATIONS ACT 2001

On 8 December 2010, ERO Mining Limited ( Company ) issued 11,250,000 ordinary shares ( Shares ) and 11,250,000 unlisted options at 5 cents each expiring 31 October 2011 ( Options ) by way of private placement.

The Company gives notice under section 708A(5)(e) of the Corporations Act 2001 (Cth) ( Act ) that:

1. The Company issued the Shares and Options without disclosure to investors under Part 6D.2 of the Act;

2. As at the date of this notice, the Company has complied with:

   • 2.1. The provisions of Chapter 2M of the Act as they apply to the Company; and

   • 2.2. Section 674 of the Act; and

3. As at the date of this notice, there is no information to be disclosed which is excluded information (as defined in section 708A(7) of the Act), that is reasonable for investors and their professional advisers to expect to find in a disclosure document.

Yours faithfully

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David W Godfrey Company Secretary

ERO Mining Ltd ABN 40 119 031 864

62 Beulah Road PO Box 3126 telephone 61 8 8132 7970 Norwood 5067 Norwood 5067 facsimile 61 8 8132 7999 South Australia South Australia email info@eromining.com

62 Beulah Road