DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2017

Nov 19, 2017

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Australian Securities Exchange Announcement

Fully Underwritten Non-Renounceable Entitlement Issue

Highlights:

• Fully underwritten Non-renounceable Entitlement Issue to raise approximately $385,000 at $0.002 per share

• Directors to participate in the issue as sub-underwriters

• Funds will be used to evaluate prospective acquisition opportunities within Australian minerals sector

Entitlement Offer:

Tychean Resources Limited ( Tychean or the Company ) is pleased to announce a capital raising by way of a fully underwritten non-renounceable Entitlement Issue ( Rights Issue or Entitlement Offer ) at an issue price of $0.002 (0.2 of a cent) per share on the basis of one (1) New Share for every two (2) ordinary shares held. Under the offer, a maximum of approximately 192,385,461 shares ( New Shares ) will be issued to raise approximately $385,000 (before costs).[1 ]

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.

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

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.

Eligibility to Participate:

The Offer is only open to shareholders of the Company who are registered as shareholders as at 7:00pm (AEST) on the Record Date and hold registered addresses in Australia or New Zealand ( Eligible Shareholders ).

Eligible Shareholders’ entitlements pursuant to this Rights Issue are non-renounceable and accordingly Eligible Shareholders may:

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.

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Tychean Resources Limited ACN 119 031 864 | Level 3, 100 Pirie Street, Adelaide SA 5000 | Phone 61 8 7324 3195| Fax 61 8 8232 8811| Email info@tycheanresources.com | web www.tycheanresources.com

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Australian Securities Exchange Announcement

• take up their rights in full or in part; or

• do nothing, in which case their rights will lapse.

Full details of the Rights Issue are set out in the Offer Booklet lodged by the Company with ASX on 20 November 2017 . The shares under the Rights Issue will rank equally with existing ordinary shares on issue.

The proposed timetable for the Rights Issue is as follows:

Event	Timing
ASX announcement of Entitlement Offer and lodgement of Appendix 3B,	Monday, 20 November 2017
Cleansing Notice and Offer Booklet with ASX
Despatch of notices to shareholders informing them of the Offer	Tuesday, 21 November 2017
Securities quoted on an ex-basis	Wednesday, 22 November 2017
Record Date to determine entitlements to New Shares	Thursday, 23 November 2017
Despatch of Offer Booklet and Entitlement and Acceptance Forms. Offer	Tuesday, 28 November 2017
Opens
Offer Closes	Monday, 11 December 2017
New Shares quoted on a deferred settlement basis	Tuesday, 12 December 2017
Company notifies shortfall to ASX	Thursday, 14 December 2017
Issue date for New Shares. Deferred settlement trading ends	Monday, 18 December 2017
Normal (T+2) trading starts	Tuesday, 19 December 2017

Tychean, with the consent of the Underwriter, reserves the right to amend any or all of these dates and times, subject to the Corporations Act, the ASX Listing Rules and other applicable laws and regulations. In particular, Tychean reserves the right to extend the Closing Date, to accept late applications under the Entitlement Offer (either generally or in particular cases) and to withdraw the Entitlement Offer without prior notice. Any extension of the Closing Date may have a consequential impact on the date that New Shares are issued and commence trading on the ASX. Applicants are encouraged to submit their acceptances as soon as possible after the Entitlement Offer opens. Tychean also reserves the right not to proceed with the whole or part of the Entitlement Offer at any time prior to the issue of the New Shares. In that event, application monies (without interest) would be returned to applicants.

Shareholder Enquiries:

Eligible shareholders will be sent further details about the Entitlement Offer in an Offer Booklet, a copy of which accompanies this announcement. Shareholders should read the Offer Booklet carefully before making any investment decision regarding the Entitlement Offer.

Yours faithfully,

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Robert Kennedy Chairman

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Tychean Resources Limited ACN 119 031 864 | Level 3, 100 Pirie Street, Adelaide SA 5000 | Phone 61 8 7324 3195| Fax 61 8 8232 8811| Email info@tycheanresources.com | web www.tycheanresources.com