DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2012

Dec 12, 2012

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Australian Securities Exchange Announcement

13 DECEMBER 2012

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

The Manager ASX Market Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

EXPLORATION ACCESS GRANTED AT BILLA KALINA

KEY POINTS

• Deed of Access granted by Defence Department for Billa Kalina IOCGU Project.

• Initial exploration focussed on the Peeweena Dam gravity anomaly.

• Exploration programs planned to commence in January 2013.

ERO Mining Limited ACN 119 031 864

Level 3, 100 Pirie Street Adelaide South Australia

Phone 61 7324 3195 Fax 61 8 8132 5576 Email info@eromining.com web www.eromining.com

The Board of ERO Mining Limited (“the Company”) is pleased to advise that a Deed of Access – Exploration has been granted by the Defence Department over EL 4854, part of the Billa Kalina Project in the Olympic Dam region of central South Australia. The Billa Kalina Project is being explored under the terms of a joint venture between the Company and Maximus Resources Limited (ASX:MXR) where the Company is earning a 50% interest in the tenements (ELs 4854,4463, and 4899) by expenditure of $3 million over the life of the Agreement. ERO Mining is the manager and operator of the Joint Venture.

The Billa Kalina Project is strategically located 70km north–northwest of the Olympic Dam copper–gold–uranium (IOCGU) mine, and 45 km east of the more recent discovery and mine development at Prominent Hill, South Australia (Figure 1). The project area

is situated within the recently defined Restricted Amber Zone of the larger Woomera Prohibited Area (WPA).

It is planned to commence on-ground exploration activities in January 2013 with a ground gravity survey designed to validate a significant 10 mgal gravity anomaly at Peeweena Dam, (first identified by a wide spaced 7 km x 7 km region survey completed in the 1970s). Confirmation of the Peeweena Dam gravity anomaly would be a highly significant result and justify a followup deep drilling program to test the anomaly for iron oxide, copper, gold +/- uranium (IOCGU) mineralisation.

The Company and our joint venture partner MXR are very pleased to have finally reached an agreement with the Defence Department at Woomera and to be able to recommence exploration at Billa Kalina after an absence of almost four years.

ERO Mining Limited 1

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----- Start of picture text ----- Prominent Hill  PEEWEENAPEEWEENA  Olympic DamOlympic DamOlympic DamOlympic DamDAMDAM CarapateenaCarapateenaCarapateenaCarapateenaG A W L E R  Punt HillPunt HilPunt HillPunt HillC R A T O NO'Driscoll lineaments G2 & G9 Mine Prospect0 100 200 kmG9G2----- End of picture text -----

Figure 1 Location of Peeweena Dam Gravity Anomaly in relation to IOCGU mines.

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Mr Kevin Lines Chief Executive Officer

13 December 2012

For further information please contact:

Duncan Gordon

Adelaide Equity Partners Ltd, t (08) 8232 8800, m 0404 006 444

Further information relating to ERO Mining Limited and its various exploration projects can be found on its website: www.eromining.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 Chief Executive Officer of the Company.

2 ERO Mining Limited