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DREADNOUGHT RESOURCES LTD Capital/Financing Update 2016

Oct 10, 2016

64785_rns_2016-10-10_fa7e1c0a-6095-45ae-a926-51d5892804e2.pdf

Capital/Financing Update

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Australian Securities Exchange Announcement

11 October 2016

Share Purchase Plan

Summary

Tychean Resources Limited ( Tychean or the Company ) is pleased to announce a Share Purchase Plan ( SPP ) to raise up to $500,000.

Proceeds raised through the SPP will provide the Company with the requisite working capital to progress detailed due diligence on project opportunities.

The SPP is scheduled to open on 21 October 2016 and close on 9 November 2016.

SPP Terms

The issue of shares under the SPP will be limited to 71,428,571 new fully paid ordinary shares at $0.007 each to raise a maximum of $500,000. If applications for more than 71,428,571 new fully paid ordinary shares are received, the Company may, in its absolute discretion, undertake a scale-back to the extent and in the manner it sees fit.

The issue price of $0.007 per share under this SPP represents 80.0% of the 5-day volume weighted average market price of the Company’s shares on the Australian Stock Exchange ( ASX ) taken as at market close 10 October 2016.

The SPP offer provides existing shareholders the opportunity to acquire additional ordinary shares in the Company up to a maximum value of $15,000, or intervals of $500, $1,000, $2,000, $5,000 and $10,000.

Tychean directors reserve the right to close the SPP early. Applications will be accepted and allocated on a first come, first accepted basis, as the Company’s directors decide. Participation in the SPP is optional and the right to participate is not transferable.

The complete terms and conditions of the SPP will be distributed in the next week.

Tychean notes that shareholders with an address on the Company’s register in Australia or New Zealand at the close of business on 10 October 2016 ( Eligible Shareholders ) can purchase SPP shares without incurring brokerage costs.

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Indicative SPP Timetable

Event Date
SPP Record Date 10 October 2016
SPP Announcement 11 October 2016
SPP Opening Date 21 October 2016
SPP Offer documentsdespatched 21 October 2016
SPP Closing Date 9 November 2016
Issue of New Shares 16 November 2016

The timetable above is indicative only and may be subject to change. Tychean reserves the right to vary the timetable without notice. The commencement of trading of new shares is subject to confirmation from the ASX.

For further information, please contact:

Kaitlin Smith Company Secretary Tychean Resources 08 8223 8800 [email protected]

Duncan Gordon Investor Relations Adelaide Equity Partners +61 404 006 444 [email protected]