DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2018

Nov 6, 2018

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Australian Securities Exchange Announcement

7 November, 2018

Tychean to acquire highly prospective base metal and gold assets in Western Australia

Highlights

• Tychean to acquire IronRinger Resources which holds substantial exploration projects on granted tenements in Kimberley and Kalgoorlie regions of Western Australia

• Yampi base metal project located 95kms north-east of Derby, in the west Kimberley:

• Over 877 km2 of tenements covering the same geology as Buxton Resources’ (ASX:BUX) Double Magic discovery

• Numerous high priority nickel-copper-cobalt targets defined by existing VTEM survey

• First mover advantage within the Yampi Defence Reserve which has seen no systematic exploration since the late 1950’s.

• Drilling of priority targets planned for early in the 2019 field season

• Rocky Dam gold project 55km east of Kalgoorlie:

• Adjacent to Aruma Resources’ (ASX: AJJ) Slate Dam gold project

• Bedrock gold mineralisation has been defined by previous drilling

• Potential for development of massive pyrite mineralisation

• Highly experienced mining executives, Paul Chapman and David Chapman to join the Board of Tychean

Tychean Resources Limited (ASX:TYK) “Tychean or the Company” is pleased to announce that it has entered into an agreement to acquire two new Western Australian “WA” projects, the Yampi project in the west Kimberley, and the Rocky Dam project near Kalgoorlie, by the acquisition of private company IronRinger Resources Pty Ltd “IronRinger” (see Table 1).

The acquisition will be made by the issue of shares to the shareholders of IronRinger, a company associated with Paul Chapman, David Chapman and Nicholas Day.

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Yampi Base Metal Project

The Yampi base metal project is located 95 km NE of Derby in WA and adjoins Buxton Resources advanced Double Magic project located immediately to the SW. The project comprises two granted Exploration licences (“EL”) and four EL applications with contiguous tenements covering over 729km[2] and an additional 148km2 over prospective stratigraphy within the vicinity of Double Magic.

The project is highly prospective for mafic intrusive hosted nickel sulphides within the Ruins Dolerite, and copper-gold mineralisation within a package of felsic volcanic and sedimentary rocks. Much of the area is within the Yampi Defence Reserve which until recently was inaccessible for exploration and therefore the area has seen no systematic exploration since the mid 1950’s. The company now has a genuine first mover advantage.

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Figure 1: Yampi Project, West Kimberley Region

At its Double Magic Project, Buxton Resources is actively drilling nickel-copper sulphides discovered at the Merlin prospect, located 37km to the SE of the Yampi project. Like Tychean, Buxton’s targets were based on airborne EM anomalies and the discovery of highgrade nickel within massive sulphides has validated the prospectivity of the Tychean tenements.

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Geology

The ancient rocks of the of the Kimberley region in WA have had an extremely complex geological history and provide a first-class geological setting for the formation of major deposits.

The West Kimberley area has been an important producer of nickel, zinc, lead, iron ore and diamonds and remains prospective for these and a variety of other minerals, including gold, bauxite, copper, tungsten and tin.

The Yampi Project lies within the King Leopold Orogen which comprises Paleoproterozoic schists and igneous rocks of the Hooper Complex, and the deformed margins of the Speewah and Kimberley Basins. Within the Hooper complex, schists of the Marboo Formation are intruded by thick sills of Ruins Dolerite which hosts the nearby Double Magic massive sulphide mineralisation. The Ruins Dolerite is very similar in age and composition to the rocks that host the Savannah Nickel Project operated by Panoramic Resources Limited (ASX:PAN).

Within the Marboo Formation, volcanogenic massive sulphide (“VMS”) base metal mineralisation has also been recognised. The black slates and phyllites of the formation are also prospective for sedimentary – exhalative (“SEDEX”) and vein-style copper mineralisation.

Other prospective units of the Hooper Complex are the Whitewater Volcanics and Ruins Dolerite. The Whitewater Volcanics have potential to host hydrothermal and volcanogenic gold mineralisation.

A large number of historic workings and mineral occurrences have been identified at Yampi. These highlight the prospectivity of the area and are shown in Figure 2.

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Figure 2: Yampi Project Geology and Prospects, West Kimberley Region

Previous Exploration

The sediments of the Marboo Formation host the extensive gossans and small-scale historic copper-gold workings which extend over a strike length of at least 13km. These were the target of exploration by WMC in the 1950’s. The WMC work included drainage sampling, soil sampling, trench sampling, and ground geophysical surveys.

At the Grants Prospect, WMC completed a successful six hole drilling program in which all six holes intersected chalcopyrite mineralisation hosted by silicified and brecciated metasediments and associated quartz veins.

The WMC drilling was not assayed for gold or nickel and no exploration for nickel or gold was carried out by WMC. Access to the area for exploration was restricted from 1978 when the area was designated a military reserve. IronRinger has secured Access Agreements to explore within this reserve.

In 2015 Rio Tinto carried out a VTEM and aeromagnetic survey over the region. Rio’s survey covered 206 km[2] and resulted in 901 line kms of data on a 250m line spacing. IronRinger has acquired the data from Rio Tinto covering the area of the Yampi project and adjacent tenements prospective for Ni-Cu sulphides.

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– Exploration Targets 5 high Priority Targets Defined

The coincident magnetic and EM anomalies identified in the VTEM survey within the Ruins Dolerite represent high-order targets for magmatic sulphide mineralisation (See Figure 3). They are similar to those which led to the discovery of thick zones of sulphide mineralisation at Double Magic. Tychean considers that the Buxton discovery has validated the targets on the Yampi tenements and will immediately progress programs with the aim of drilling the anomalies in early 2019.

Ni-Cu sulphide potential is highlighted by the airborne geophysics where anomalism is coincident with the Ruins Dolerite. Five high priority coincident VTEM and magnetic targets for Ni-Cu sulphides have been defined where they are coincident with Ruins Dolerite and an additional five medium priority targets.

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Figure 3 - Example of coincident magnetic (left), EM (centre) anomalies within Ruins Dolerite (right), located on E04/2315

Further, separate copper-gold targets have been defined by rock chip sampling and previous drilling by WMC in the 1950’s. These are also drill ready and will be prioritised to be tested immediately after the nickel-copper-cobalt targets in the Ruins Dolerite.

Rocky Dam Project

The Rocky Dam Project is located approximately 55km east of Kalgoorlie and is highly prospective for gold, in addition to hosting a historically defined pyrite deposit.

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Figure 4: Rocky Dam project location

Geology

The Rocky Dam project is underlain by Archean age metasediments and felsic volcanics of the Black Flag Group which host numerous gold deposits throughout the Eastern Goldfields. The project is adjacent to the Slate Dam Project of Aruma Resources where a large-scale geochemical anomaly is being explored for Invincible-style sediment-hosted gold mineralisation.

Previous Exploration

Previous drilling has identified gold mineralisation within the tenement, which will be followed up with further exploration.

Rocky Dam also hosts a massive pyrite deposit, the uses of which include the production of sulphuric acid for use in the nickel laterite extraction process. The deposit was drilled in the 1970s by Swiss Alumina and potential exists for upgrading the deposit to a JORC compliant resource with limited further drilling.

Exploration Targets

Drill targets have been identified where the NE trending East Fault and Mark’s Fault may intersect the Rocky Dam pyrite horizon. Previous drilling in those areas has already identified anomalous gold mineralisation.

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Transaction Terms

Tychean Resources Limited has agreed to acquire 100% of the shares in IronRinger Resources Pty Ltd, a private company associated with Mr Paul Chapman, Mr David Chapman and Mr Nicholas Day for the following consideration:

• 350m ordinary shares in Tychean Resources Limited

• 50m, 5 year options exercisable at 1 cent per share

• $70,000 in cash

The agreement to acquire IronRinger Resources Pty Ltd is subject to a number of conditions including:

• Shareholder approval for the issue of the shares to IronRinger

• Approval to the change of control of IronRinger pursuant to the Military Reserve Access Agreements that relate to the Yampi exploration licences

Table 1: Tenements held by IronRinger

Project	Tenement No	Interest	Status	Area KM2
Yampi	E04/2315	80%	Granted	92
Yampi	E04/2508	100%	Granted	380
Yampi	E04/2557	100%	Application	223
Yampi	E04/2572	100%	Application	34
Yampi	E04/2574	100%	Application	132
Yampi	E04/2573	100%	Application	16
RockyDam	E25/533	100%	Granted	30

Board Changes

It is anticipated that Paul Chapman and David Chapman will join the Board of Tychean once the transaction is completed.

Concluding Comments

Tychean Resources is extremely pleased to be able to acquire the Yampi base metal project within a proven terrain that has had limited exploration completed and targets that are ready to drill early in 2019.

In addition, the Rocky Dam project adds the opportunity to add gold and pyrite to the Company’s commodity mix.

Tychean looks forward to exploring these highly prospective projects over the coming six months.

Contact:

Duncan Gordon Ian Gordon Chairman Director Ph: +61 404 006 444 Ph: +61 477 306 669

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Competent Persons Statement

‘The information in the release that relates to Exploration Results, Mineral Resources, Ore Reserves or targets is based on information compiled by Mr Paul Payne, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Payne is a director and shareholder of the Company and has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Payne consents to the inclusion of the information in this report in the form and context in which it appears.’

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

JORC TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation			Commentary	Commentary	Commentary
Sampling		Nature and quality of sampling (e.g. cut channels,		WMC Limited		completed percussion
techniques		random chips, or specific specialised industry		drilling at Yampi		in the	1950s. The WMC
		standard measurement tools appropriate to the		intersected	copper mineralization – but
		minerals under investigation, such as down hole		sampling techniques are not known.
		gamma sondes, or handheld XRF instruments, etc.).
		These examples should not be taken as limiting the		Swiss Alumina		completed percussion
		broad meaning of sampling.		drilling at the Rocky Dam pyrite deposit
		Include reference to measures taken to ensure		in the 1970s. Sampling techniques are
		sample representivity and the appropriate calibration		not known.
		of any measurement tools or systems used.
		Aspects of the determination of mineralisation that are		Versatile time domain			electromagnetic
		Material to the Public Report.		(VTEM)	and	aeromagnetic		data
		In cases where ‘industry standard’ work has been		acquired for Rio Tinto			in October 2015
		done this would be relatively simple (e.g. ‘reverse		were flown	by UTS Geophysics using an
		circulation drilling was used to obtain 1 m samples		A-star 350	B3 helicopter with a VTEM
		from which 3 kg was pulverised to produce a 30 g		max receiver		and	transmitter	and
		charge for fire assay’). In other cases more		Geometrics cesium vapour magnetic
		explanation may be required, such as where there is		sensor.
		coarse gold that has inherent sampling problems.
		Unusual commodities or mineralisation types (e.g.
		submarine nodules) may warrant disclosure of
		detailed information.
Drilling techniques		Drill type (e.g. core, reverse circulation, open-hole		Percussion	drilling
		hammer, rotary air blast, auger, Bangka, sonic, etc.)
		and details (e.g. core diameter, triple or standard
		tube, depth of diamond tails, face-sampling bit or
		other type, whether core is oriented and if so, by what
		_method, etc.). _
Drill sample		Method of recording and assessing core and chip		Not known
recovery		sample recoveries and results assessed.
		Measures taken to maximise sample recovery and
		ensure representative nature of the samples.
		Whether a relationship exists between sample
		recovery and grade and whether sample bias may
		have occurred due to preferential loss/gain of
		fine/coarse material.

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Criteria		JORC Code explanation		Commentary
Logging		Whether core and chip samples have been		Not known
		geologically and geotechnically logged to a level of
		detail to support appropriate Mineral Resource
		estimation, mining studies and metallurgical studies.
		Whether logging is qualitative or quantitative in
		nature. Core (or costean, channel, etc.) photography.
		The total length and percentage of the relevant
		intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half		Not known
techniques and		or all core taken.
sample		If non-core, whether riffled, tube sampled, rotary split,
preparation		etc. and whether sampled wet or dry.
		For all sample types, the nature, quality and
		appropriateness of the sample preparation technique.
		Quality control procedures adopted for all sub-
		sampling stages to maximise representivity of
		samples.
		Measures taken to ensure that the sampling is
		representative of the in situ material collected,
		including for instance results for field
		duplicate/second-half sampling.
		Whether sample sizes are appropriate to the grain
		size of the material being sampled.
Quality of assay		The nature, quality and appropriateness of the		Not known
data and		assaying and laboratory procedures used and
laboratory tests		whether the technique is considered partial or total.
		For geophysical tools, spectrometers, handheld XRF
		instruments, etc., the parameters used in determining
		the analysis including instrument make and model,
		reading times, calibrations factors applied and their
		derivation, etc.
		Nature of quality control procedures adopted (e.g.
		standards, blanks, duplicates, external laboratory
		checks) and whether acceptable levels of accuracy
		(i.e. lack of bias) and precision have been
		established.
Verification of		The verification of significant intersections by either		Not known
sampling and		independent or alternative company personnel.
assaying		The use of twinned holes.
		Documentation of primary data, data entry
		procedures, data verification, data storage (physical
		and electronic) protocols.
		Discuss any adjustment to assay data.
Location of data		Accuracy and quality of surveys used to locate drill		Not known
points		holes (collar and down-hole surveys), trenches, mine
		workings and other locations used in Mineral
		Resource estimation.
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing and		Data spacing for reporting of Exploration Results.		Not known
distribution		Whether the data spacing and distribution is sufficient
		to establish the degree of geological and grade
		continuity appropriate for the Mineral Resource and
		Ore Reserve estimation procedure(s) and
		classifications applied.
		Whether sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves		2015 VTEM data were acquired in three
data in relation to		unbiased sampling of possible structures and the		blocks on lines orientated 137° (Block A),
geological		extent to which this is known, considering the deposit		164° (Block B) and 000° (Block C),
structure		type.		slightly oblique to the strike of the
		If the relationship between the drilling orientation and		predominant structural/geological trend.
		the orientation of key mineralised structures is

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Criteria		JORC Code explanation		Commentary
		considered to have introduced a sampling bias, this
		should be assessed and reported if material.
Sample security		The measures taken to ensure sample security.		Not known
Audits or reviews		The results of any audits or reviews of sampling		No external audits or reviews of
		techniques and data.		sampling techniques and data collection
				have been undertaken.

Section 2 Reporting of Exploration Results

(Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary	Commentary
Mineral tenement		Type, reference name/number, location and		Tychean has entered into an agreement
and land tenure		ownership including agreements or material issues		to purchase	the tenements held		by
status		with third parties such as joint ventures, partnerships,		IronRinger Resources Pty Ltd (see main
		overriding royalties, native title interests, historical		text of release).
		sites, wilderness or national park and environmental
		settings.
		The security of the tenure held at the time of
		reporting along with any known impediments to
		obtaining a licence to operate in the area.
Exploration done		Acknowledgment and appraisal of exploration by		Limited drilling was completed by WMC
by other parties		other parties.		Limited at Yampi in the 1950s.
				A variety of exploration companies have
				undertaken work on the Rocky Dam
				project including drilling.
Geology		Deposit type, geological setting and style of		N/A
		mineralisation.
Drill hole		A summary of all information material to the		Drilling was completed in the 1950s			and
information		understanding of the exploration results including a		1970s and	limited	information	is
		tabulation of the following information for all Material		available.
		drill holes:	.
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		If the exclusion of this information is justified on the
		basis that the information is not Material and this
		exclusion does not detract from the understanding of
		the report, the Competent Person should clearly
		explain why this is the case.
Data aggregation		In reporting Exploration Results, weighting averaging		N/A
methods		techniques, maximum and/or minimum grade
		truncations (e.g. cutting of high grades) and cut-off
		grades are usually Material and should be stated.
		Where aggregate intercepts incorporate short lengths
		of high grade results and longer lengths of low grade
		results, the procedure used for such aggregation
		should be stated and some typical examples of such
		aggregations should be shown in detail.
		The assumptions used for any reporting of metal
		equivalent values should be clearly stated.

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Criteria		JORC Code explanation		Commentary	Commentary	Commentary
Relationship		These relationships are particularly important in the		N/A
between		reporting of Exploration Results.
mineralisation		If the geometry of the mineralisation with respect to
widths and		the drill hole angle is known, its nature should be
intercept lengths		reported.
		If it is not known and only the down hole lengths are
		reported, there should be a clear statement to this
		_effect(e.g. ‘down hole length, true width not known’). _
Diagrams		Appropriate maps and sections (with scales) and
		tabulations of intercepts should be included for any
		significant discovery being reported These should
		include, but not be limited to a plan view of drill hole
		collar locations and appropriate sectional views.
Balanced reporting		Where comprehensive reporting of all Exploration		N/A
		Results is not practicable, representative reporting of
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of Exploration
		Results.
Other substantive		Other exploration data, if meaningful and material,		Rio Tinto Exploration completed a
exploration data		should be reported including (but not limited to):		versatile	time domain electromagnetic
		geological observations; geophysical survey results;		(VTEM)	and	aeromagnetic	survey
		geochemical survey results; bulk samples – size and		covering	206	sq km of the	Yampi
		method of treatment; metallurgical test results; bulk		tenements for		901 line kilometres of
		density, groundwater, geotechnical and rock		data using 125		and 250 m line spacing.
		characteristics; potential deleterious or contaminating		Targets	from the VTEM survey are
		substances.		shown in	Figure 3 in the release.
				Whitewater Resources completed rock
				chip sampling		of copper gossans in
				2013.
Further work		The nature and scale of planned further work (e.g.		Tychean	is planning further to conduct
		tests for lateral extensions or depth extensions or		further work at		the project which may
		large-scale step-out drilling).		include	geophysics, sampling and
		Diagrams clearly highlighting the areas of possible		drilling
		extensions, including the main geological
		interpretations and future drilling areas, provided this
		information is not commercially sensitive.