DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2014

May 20, 2014

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Australian Securities Exchange Announcement

21 May 2014

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

TYCHEAN TO RAISE UP TO $1.9M TO PROGRESS GOLD EXPLORATION ACTIVITY

HIGHLIGHTS:

• Firm commitments received for Placement raising $0.4M

• Tychean to undertake a 1:3 Nonrenounceable Entitlements Issue to raise up to $1.5M

• Proceeds to be used primarily to advance

  • exploration activity at the Spargoville and

Valley Floor Gold Projects

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Tychean Resources Ltd (“Tychean”, ASX:TYK), is pleased to announce a capital raising of up to $1.9 million comprising:

• A placement (“Placement”) of approximately 136.5 million fully paid ordinary shares at $0.003 per share to raise approximately $0.4 million, with 1 free option being issued for every 2 new shares subscribed for under the Placement; and

• A non-renounceable 1 for 3 entitlements issue (“Entitlements Issue” or “Offer”) at $0.003 per share to raise up to approximately $1.5 million, with 1 free option being issued for every 2 new shares subscribed for under the Entitlements Issue.

The options to be issued under the Placement and Entitlements Issue will be exercisable at $0.006 on or before 30 June 2015 (“New Options”). The Company will apply for official quotation of the New Options.

Tychean Resources Limited ACN 119 031 864 | Level 3, 100 Pirie Street, Adelaide SA 5000 | Phone 61 8 7324 3195| Fax 61 8 8312 5576| Email info@tycheanresources.com | web www.tycheanresources.com

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Use of Proceeds

The Company will use the funds raised under the Placement and Entitlements Issue to:

• Conduct exploration and resource definition Air Core and Reverse Circulation drilling at the Spargoville Gold Project;

• Conduct exploration Air Core and Reverse Circulation drilling at the Valley Floor Gold Project; and

• Provide working capital to the Company.

Placement

The placement is being made to sophisticated and professional investors under the Company’s existing 15% placement capacity. It is anticipated that the Placement shares will be issued on Wednesday, 28 May 2014. New shares issued under the Placement will rank equally with existing shares in Tychean. It is expected that the New Options will be issued on the same date as the shares and quoted on Tuesday, 1 July 2014.

Entitlements Issue

The Entitlements Issue will constitute an offer of approximately 500.5 million new fully paid ordinary shares in the Company on the basis of 1 new share for every 3 existing shares held by eligible shareholders on the Record Date. The offer price will be the same as that offered under the Placement, being $0.003 per new share, representing a 25% discount to the closing price of the Company’s shares on the ASX on Tuesday, 20 May 2014. New shares issued under the Entitlements Issue will rank equally with all existing fully paid ordinary shares in the Company.

Subscribers to the Entitlements Issue will also receive 1 free option for every 2 new shares subscribed for, exercisable at $0.006 on or before 30 June 2015.

Shareholders with an address in Australia or New Zealand on the Company’s register at the close of business on Tuesday, 3 June 2014, will be eligible to participate in the Entitlements Issue (“Eligible Shareholders”).

The Directors reserve the right to place the remaining shortfall at their discretion within three months after the close of the Offer. Eligible Shareholders’ entitlements pursuant to this Entitlements Issue are non-renounceable and accordingly, they may:

• take up their rights in full or in part;

• do nothing; in which case their rights will lapse; or

• take up their rights in full and apply for additional new shares.

Full details of the Entitlements Issue will be set out in the Prospectus which will be lodged by the Company with ASIC and ASX on Wednesday, 28 May 2014.

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Existing optionholders will need to exercise their options and be a registered holder of shares at the close of business on Tuesday, 3 June 2014 if they wish to participate in the Entitlements Issue.

The Company has decided that it is unreasonable to make the Offer to shareholders who have a registered address in a country outside of Australia or New Zealand having regard to the number of shareholders in such places, the number and value of the new shares that would be offered and the substantial costs of complying with the legal and regulatory requirements in those jurisdictions.

The proposed timetable for the Entitlements Issue is as follows:

EVENT	DATE
Prospectus lodged with ASIC and ASX		Wednesday, 28 May2014
“Ex” Date		Friday, 30 May2014
Record Date		Tuesday, 3 June 2014
Dispatch of Prospectus, and Entitlement &
Acceptance Forms to Shareholders, Entitlements		Friday, 6 June 2014
Issue opens
ClosingDate		Monday, 23 June 2014
Securities Quoted on a Deferred Settlement Basis		Tuesday, 24 June 2014
ASX Notified of anyUnder Subscriptions		Thursday, 26 June 2014
Issue Date		Monday, 30 June 2014
New Shares and Options commence tradingon ASX		Tuesday, 1 July2014

The above dates are indicative only. Subject to the ASX Listing Rules, the Directors reserve the right to withdraw the Offer at any time, close the Entitlements Issue early or extend the Closing Date for the Offer at their discretion. Should the Offer be closed early or extended, there will be a consequential effect on the anticipated date of issue for the new shares and New Options.

Joe Houldsworth Managing Director

For further information please contact:

Mr Joe Houldsworth Mr Duncan Gordon Managing Director Executive Director Tychean Resources Ltd Adelaide Equity Partners Limited M: 0487 924 326 M: 0404 006 444

Further information relating to Tychean Resources Ltd and its various exploration projects can be found at its website: www.tycheanresources.com