DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2011

Apr 14, 2011

==> picture [96 x 68] intentionally omitted <==

ASX Announcement

15 APRIL 2011

==> picture [74 x 10] intentionally omitted <==

----- Start of picture text ----- M I N I N G----- End of picture text -----

SPP OFFER CLOSES

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

ERO Mining 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@eromining.com web www.eromining.com

Media and investor relations contacts:

Shane Gale ERO Mining t (08) 8132 7911 m 0459 128 252

Duncan Gordon Adelaide Equity t (08) 8232 8800 m 0404 006 444

Kevin Skinner Field Public Relations t (08) 8234 9555 m 0414 822 631

Further information relating to ERO Mining Limited and its various exploration projects can be found on its website: www.eromining.com

Highlights

• The Board of ERO Mining Limited (ERO) is pleased to announce that the recent Share Purchase Plan (SPP) was supported by the Company’s shareholders and has closed

Subject to final verification of acceptances, the SPP will result in the issue of approximately 18.2 million new shares to raise approximately $545,000 before expenses. By participating in the SPP, shareholders will have increased their entitlement to receive bonus options under the Company’s forthcoming Bonus Option Issue.

First phase exploration commenced recently with sampling of water from local boreholes for chemical analysis, including for lithium and uranium. Samples from Comalco’s drillholes CF1 and CF2 are being retested for lithium and uranium content employing modern analytical techniques.

The Board would like to thank its shareholders for their support and the Adnyamathanha people for their encouragement and believe that the Company is well positioned to capitalise on exploration success and growth in 2011.

Funds raised pursuant to the SPP will be applied to the initial Wertaloona Lithium Project phase 1 drilling campaign and general working expenses.

The Wertaloona Lithium Project phase 1 application for Exploration Work Approval (EWA) has been approved by PIRSA and a Work Area Clearance Agreement has been negotiated and executed with the Adnyamathanha Traditional Lands Association (ATLA) allowing access to drill sites.

==> picture [139 x 57] intentionally omitted <==

Shane Gale Chief Executive Officer

The drilling plan is on schedule for May 2011 with two cored holes to be drilled to 150 metres, using sonic drilling techniques to ensure sample integrity.

15 April 2011



==> picture [173 x 186] intentionally omitted <==

----- Start of picture text ----- L A K E F R O M EEL4602EL4601R E G I O N A L R E S E R V ECF2WT2     - 31° CF1WT1W E R T A L O O N A0 10 kmS T A T I O NProposed drillhole Exploration licence Historic drillhole Pastoral Lease139°30' 139°45'----- End of picture text -----

Wertaloona Lithium Project proposed drillholes.

ERO Mining Limited 1