DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2012

May 2, 2012

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3 May 2012

ASX ANNOUNCEMENT

Notification of Shortfall under Rights Issue

ERO Mining Limited (ASX:ERO) gives notice of the shortfall in subscriptions under its 1 for 1 non-renounceable rights issue announced on 15 March 2012:

Total number of shares offered: 366,139,761 Final number of shares accepted: 191,186,480 Shortfall: 174,953,281

The directors may issue the shortfall in their discretion, within 3 months after the close of the rights issue (30 April 2012).

ERO Mining Limited ACN 119 031 864 | Level 3, 100 Pirie Street, Adelaide SA 5000 | PO Box 3126 Norwood South Australia 5067 Phone 61 8 7324 3195| Fax 61 8 8312 5576| Email info@eromining.com | web www.eromining.com

PJK Doc: 41118