DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2017

Nov 20, 2017

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Tychean Resources Limited Level 3, 100 Pirie St Adelaide SA 5000 e info@tycheanresources.com w www.tycheanresources.com

21 November 2017

Dear Shareholder

On 20 November 2017, Tychean Resources Limited (Tychean or the Company ) announced a non-renounceable Entitlement Issue to shareholders of 1 new share for every 2 existing shares held at an issue price of $0.002 per new share ( Rights Issue or Offer ).

The Rights Issue seeks to raise up to $385,000 (approximately) before costs through the issue of up to 192,385,461 new fully paid ordinary shares in the Company.[1]

Forward Strategy:

It is proposed to invite new Directors and management to manage the Company, details of which are set out in the Rights Issue Offer Booklet.

The funds raised will primarily be used to strengthen Tychean’s financial position, to enable increased expenditure on due diligence of prospective acquisition targets and provide the Company with sufficient working capital. Funds will be allocated as follows:

• Strategic review of current portfolio and assets

• Extensive due diligence on new targeted acquisition opportunities

• Working capital and administration costs

The Offer is made to Eligible Shareholders being shareholders of the Company registered on the Company’s share register at the Record Date (as at 5.00pm AEDT Thursday, 23 November 2017).

The Rights Issue price reflects an approximate 54% discount to the 30-day volume weighted average price (VWAP) of the Company’s shares for the period ending 15 November 2017.

Underwriting:

The Entitlement Offer has been fully underwritten by Adelaide Equity Partners Limited ( Underwriter ). The Underwriter has entered into sub-underwriting agreements for the balance of rights not taken up by existing shareholders. Further information on the underwriting arrangements can be found in the Offer Booklet.

1 The figures for the number of new shares and the amount to be raised assumes all shareholders on the Record Date are Eligible Shareholders.

2

Ineligible Shareholders:

The Company is of the view that it is unreasonable to extend the Offer to Shareholders with registered addresses outside Australia or New Zealand, having regard to;

• i. The small number of Shareholders with registered addresses outside Australia and New Zealand;

• ii. The number and value of the New Shares which would be offered to ineligible Shareholders; and

• iii. The cost of complying with the legal requirements of the regulatory authorities, in the respective overseas jurisdictions.

Accordingly, shareholders who do not have a registered address in Australia or New Zealand are not eligible to participate in the Offer.

Unfortunately, according to our records, you do not satisfy the eligibility criteria for an Eligible Shareholder. Accordingly, the Company wishes to advise you that it will not be extending the Offer to you and you will not be able to subscribe for New Shares under the Offer.

You are not required to do anything in response to this letter.

If you have any questions regarding this non-renounceable Entitlement issue, please telephone the Company on (08) 7324 3195.

Thank you for your ongoing support of the Company.

Yours sincerely

Robert Kennedy

Chairman

Tychean Resources Limited