DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2019

Jun 23, 2019

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24 June 2019

75 KM LONG ILLAARA GREENSTONE BELT ACQUIRED FROM NEWMONT

HIGHLIGHTS

• Illaara Greenstone Belt (“Illaara”) acquired from a wholly owned subsidiary of Newmont Goldcorp Corporation, Newmont Goldcorp Exploration Pty Ltd (“Newmont Goldcorp”).

• Extensive (~75km long, 726 sq kms) and underexplored project located ~240kms north-west of Kalgoorlie, WA.

• Easy access to and within the project.

• High quality targets are drill ready - heritage cleared and 33kms of tracks installed.

• Major 10km long gold anomaly at Illaara Central.

Dreadnought Resources Ltd (“Dreadnought” or “the Company”) is pleased to announce the acquisition of the Illaara Greenstone Belt from Newmont Goldcorp. The 75km long Illara Greenstone Belt is located ~160km north-west of Kalgoorlie with access mainly along sealed and shire-maintained roads. A north-south track travels the length of the tenements (see Figure 1). Illaara is an Archean Greenstone Belt within the Southern Cross Domain of the Youanmi Terrane, ~60km west of the Ida Fault.

The project contains five target areas including the large 10km long gold anomaly at Illaara Central. This anomaly is located over a blind intrusion at a major structural intersection and contains strong pathfinders.

Dreadnought Managing Director, Dean Tuck, commented “Acquiring a project of this quality and with such potential scale is a significant achievement for Dreadnought. The drill ready Illaara Central anomaly is particularly exciting. Illaara is a project that can be readily accessed all year round and compliments our Kimberley Tarraji-Yampi project in that Illaara can be worked during the Kimberley wet season. Dreadnought’s strategy is to progress high quality projects with genuine scale potential. We expect to generate strong news flow for investors from both Illaara and Tarraji-Yampi.”

Background on the Illara Greenstone Belt

Illaara comprises four tenements (E30/471, E30/476, E29/957 and E29/959) which are being acquired 100%.

Dreadnought Resources Limited DIRECTORS CORPORATE STRUCTURE Suite 5, 16 Nicholson Road Paul Chapman Non-Executive Chairman ASX Code: DRE Subiaco WA 6008 Dean Tuck Managing Director Shares on Issue: 1,110M T: +61 (0) 428 824 343 David Chapman Non-Executive Director E: info@dreadnoughtresources.com.au Ian Gordon Non-Executive Director W: www.dreadnoughtresources.com.au Paul Payne Non-Executive Director

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Figure 1: Map showing access to the Illaara Greenstone Belt from Kalgoorlie.

Newmont Goldcorp’s initial interest in Illaara came from a ~55km long Au-As-Sb anomaly generated from regional regolith sampling by the Geological Survey of Western Australia. This anomaly was associated with an under-explored, upper greenschist to lower amphibolite facies greenstone belt with good potential host rocks (BIF, mafic volcanics and gabbroic intrusions). In addition, previous explorers had identified zones of anomalous gold and pathfinder elements in soils, vacuum soils and RAB programs.

Recognizing the project’s potential, Newmont Goldcorp applied for four tenements covering 75kms of strike over the Illaara Greenstone Belt. These tenements were granted in 2016 and Newmont subsequently completed proprietary surface geochemical surveys and regolith mapping. This work identified four significant gold anomalies (Illaara Central, Metzke’s North, Lawrence’s Find and Homestead) and one VMS target (Eastern BIFs) (see Figure 2). Shallow historical workings are evident at Metzke’s Find (northern end of Illaara) and at Lawrences’s Find (southern end of Illaara).

During 2017, heritage surveys were undertaken and 33kms of drill lines were cleared and installed over the high priority Illaara Central anomaly. In 2018, rig availability delayed scheduled drilling at Illaara Central. A change of corporate priorities created the opportunity for Dreadnought to acquire the project in June 2019.

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Metzke’s North
Homestead
Illaara Central
Lawrence’s Find
Eastern BIFs
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Figure 2: Map showing the location of major orogenic gold anomalies on the Illaara Greenstone Belt.

Acquisition Terms

Newmont Goldcorp Exploration Pty Ltd entered into a Sale and Purchase Agreement dated 15 May 2019 with IronRinger (Illaara) Pty Ltd, a company associated with a director, Mr Paul Chapman.

Dreadnought has acquired an interest in the Sale and Purchase Agreement by taking an assignment of the Sale and Purchase Agreement. Mr Chapman excused himself from the final decision to proceed with the acquisition and the acceptance of the interest in the Sale and Purchase Agreement, given his personal interest in the transaction. The Company can also confirm that no consideration or financial benefit is being paid to IronRinger (Illaara) Pty Ltd or Mr Chapman in return for the assignment of the interest in the Sale and Purchase Agreement.

Acquisition terms include the following key terms: reimbursement of external costs to date ($120,000); 2.5% Net Smelter Royalty; assignment of any environmental liabilities (minimal as cleared lines left open for pastoralist); and obtaining approvals regarding the tenement transfers and their good standing.

Completion of the transaction is expected to occur in June/July 2019.

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Next Steps

Transaction completion is expected to occur in June/July 2019. Planning will then be undertaken for field operations to commence in the second half of 2019. Drilling will be preceded by targeted magnetic and gravity surveys to further define drill targets.

An initial aircore drilling campaign of ~200 holes for 5,000m over the 10km long Illaara Central anomaly is anticipated.

Planned Activities

Dreadnought has planned a busy schedule for the remainder of 2019 including:

• Released: 2019 field program commences at Tarraji-Yampi;

• Released: FLEM survey lights up strong conductors at Chianti WMS Target;

• Released: FLEM shows strong conductor at Texas Ni-Cu-PGE Target;

• Released: High grade Cu-Au rock chip results from Grants IOCG Target;

• Released: High-grade Cu-Ag-Sn rock chip results at the Chianti VMS Target;

• Released: Acquisition of 100% ownership of Dreadnought subsidiary;

• Released: Funding plan for future growth;

• June: Results from larger surface sampling campaign at Tarraji-Yampi;

• June/July: Share Purchase Plan;

• June/July: Final approvals for drilling and refined drill targets at Tarraji-Yampi;

• • June/August: Unmarketable Parcel Share Sale Facility;

• July: General Meeting of shareholders;

• July/August: Commence diamond drilling of priority targets at Tarraji-Yampi;

• August/September: Drilling results from Tarraji-Yampi;

• September/October: Follow up Tarraji-Yampi drilling; and

• September/December: Illaara Greenstone Belt drilling program.

Dreadnought looks forward to reporting a strong news flow for the remainder of 2019.

Competent Person’s Statement

The information in this announcement that relates to geology and exploration results and planning was compiled by Mr. Dean Tuck, who is a Member of the AIG and a director and shareholder of the Company. Mr. Tuck has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify 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. Tuck consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Persons findings are presented have not been materially modified from the original reports.

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INVESTMENT HIGHLIGHTS

Tarraji-Yampi Ni-Cu-PGE Project

Dreadnought controls over 870 sq kms of the highly prospective West Kimberley located only 85 kms from Derby, Western Australia. The project area was locked up as a Defence reserve for >40 years and has only recently been opened up under the Commonwealth Government’s coexistence regime that balances Defence needs with the requirements of others including Aboriginal groups, the resources industry, pastoralists and State Governments. Defence usage in that period has been light with no unexploded ordnance mapped in the area. The area has seen minimal exploration since the 1950s and has numerous pre-WW1 workings and outcropping mineralisation.

Three styles of mineralisation occur at Tarraji-Yampi including: volcanogenic massive sulphide (VMS); Proterozoic Cu-Au (IOCG); and magmatic sulphide Ni-Cu-PGE. Within these mineralisation styles, numerous high priority Ni-Cu-PGE targets have been identified from recent VTEM surveys, historical geochemical sampling and outcropping mineralisation. Other highlights include:

• area has seen minimal exploration since the 1950s;

• large scale Ni-Cu-PGE opportunity with numerous, high priority targets identified from 2015 airborne VTEM survey and supported by 1960’s geochemical sampling; and

• successful EIS grant of $120,000 awarded via independent, competitive process.

Illara Greenstone Belt Au

• Extensive (~75km long, 726 sq kms) and underexplored project located ~160kms north-west of Kalgoorlie, WA, acquired from Newmont Goldcorp; and

• Major 10km long gold anomaly at Illaara Central is drill ready - heritage cleared and 33kms of tracks installed.

Rocky Dam Au

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• Gold and base metal prospectivity defined by previous exploration; and

• Surrounded by Riversgold; Northern Star; Sumitomo and Aruma with gold targets identified by CRA and Delta Gold.

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JORC Code, 2012 Edition – Table 1 Report Template

Section 1 Sampling Techniques and Data

JORC TABLE 1

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria		JORC Code Explanation		Commentary
Sampling		Nature and quality of sampling (e.g. cut channels,	Newmont Goldcorp
techniques		random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as	 	Newmont Goldcorp surface sampling consisted. Newmont Goldcorp proprietary DSG (deep sensing geochemistry) technique collected on a 1km x 1km offset grid, closed in to 750m x 750m
		limiting the broad meaning of sampling. Include reference to measures taken to ensure		over some areas. Standard Mag Lag samples analysed by ALS
		sample representivity and the appropriate calibration of any measurement tools or systems used.		(ALS Code ME-MS41 and ME-MS61L). Conventional soil sampling analysed by ALS (ALS Code Au-ICP22 and ME-MS61L).
		Aspects of the determination of mineralisation that are Material to the Public Report.		Details of the sample collection process is unknown.
		In cases where ‘industry standard’ work has been
		done this would be relatively simple (e.g. ‘reverse
		circulation drilling was used to obtain 1 m samples
		from which 3 kg was pulverised to produce a 30 g
		charge for fire assay’). In other cases more
		explanation may be required, such as where there
		is coarse gold that has inherent sampling
		problems. Unusual commodities or mineralisation
		types (e.g. submarine nodules) may warrant
		disclosure of detailed information.
Drilling		Drill type (e.g. core, reverse circulation, open-hole	Newmont Goldcorp
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or		No drilling undertaken.
		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	Newmont Goldcorp
recovery		sample recoveries and results assessed. Measures taken to maximise sample recovery and		No drilling undertaken.
		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.
Logging		Whether core and chip samples have been	Newmont Goldcorp
		geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical		Unknown, regolith mapping was undertaken by Newmont personnel.
		studies.
		Whether logging is qualitative or quantitative in
		nature. Core (or costean, channel, etc.)
		photography.
		The total length and percentage of the relevant

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Criteria		JORC Code Explanation		Commentary
		intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter,	Newmont Goldcorp
techniques and sample preparation	  	half or all core taken. If non-core, whether riffled, tube sampled, rotary split, 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	  	Sampling techniques and sample preparation for the DSG samples is proprietary and unknown. Sampling techniques and sample preparation for the MagLags are unknown. For conventional soils, duplicates were collected on a 1:20 basis. No other information is known.
		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	Newmont Goldcorp
data and laboratory tests		assaying and laboratory procedures used and whether the technique is considered partial or total.		The DSG technique is proprietary and no information is known.
	 	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.	  	ALS technique ME-MS41 is an aqua regia digest which provides gold and multielement data. Aqua Regia is a partial digest. ALS technique ME-MS61L is a four acid digest with an ICP-MS finish. Four acid digest is considered a near total digest for most elements. Au-ICP22 is a fire assay with ICP-AES finish for gold analysis. Fire Assay is considered a total digest for Au.
Verification of		The verification of significant intersections by	Newmont Goldcorp
sampling and assaying		either independent or alternative company personnel. The use of twinned holes.		Verification of geochemical anomalies was carried out by Newmont Goldcorp staff.
		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	Newmont Goldcorp
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.	 	Surface geochemical sample locations were positioned with a hand held GPS which has an accuracy of +/- 5m. GDA94 MGAz51.
Data spacing and		Data spacing for reporting of Exploration Results.	Newmont Goldcorp
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.	 	Surface geochemical sample spacing ranges from 1km x 1km (DSG and mag lags) to 400m x 50m spacing (conventional soils). The surface sampling spacing and distribution is not sufficient to establish the degree of geological and grade continuity appropriate for a
				Mineral Resource.

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Criteria		JORC Code Explanation		Commentary
Orientation of		Whether the orientation of sampling achieves	Newmont Goldcorp
data in relation to geological structure		unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 	Gridded surface samples potentially provide an indication of the strike direction of mineralisation. Conventional soil samples were collected perpendicular to the strike of project geology and dominate structures.
Sample security		The measures taken to ensure sample security.	Newmont Goldcorp
				Unknown.
Audits or reviews		The results of any audits or reviews of sampling	Newmont Goldcorp
		techniques and data.
				Newmont Goldcorp internally	reviewed	the
				results of its sampling programs	and results.

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Section 2 Reporting of Exploration Results

(Criteria in this section apply to all succeeding sections)

Criteria		JORC Code Explanation		Commentary
Mineral tenement		Type, reference name/number, location and		The Illaara Project consists of	4 granted
and land tenure		ownership including agreements or material issues		Exploration Licenses	(E30/471,
status		with third parties such as joint ventures, partnerships,		E30/476, E29/957, E29/959).
		overriding royalties, native title interests, historical		All tenements are currently held 100%
		sites, wilderness or national park and environmental		by Newmont Goldcorp and would
		settings.		become 100% owned by Dreadnought
		The security of the tenure held at the time of		Resources, or its nominated and wholly
		reporting along with any known impediments to		owned subsidiary.
		obtaining a licence to operate in the area.		The tenements are subject to a 2.5%
				NSR retained by Newmont Goldcorp.
				There are currently no Native Title
				Claims over the Illaara Project.
Exploration done		Acknowledgment and appraisal of exploration by		Newmont Goldcorp has undertaken
by other parties		other parties.		exploration activities since 2016 which
				are mentioned in this report.
				A review of historical exploration prior to
				Newmont would be undertaken post
				completion.
Geology		Deposit type, geological setting and style of		The Illaara Project is located within the
		mineralisation.		Illaara Greenstone Belt within the
				Southern Cross Domain of the Youanmi
				Terrane approximately 60kms west of
				the Ida Fault.
				The Illaara Project is prospective for
				orogenic gold, VMS and potentially
				komatiite hosted nickel mineralisation.
Drill hole		A summary of all information material to the	Newmont Goldcorp
information		understanding of the exploration results including a tabulation of the following information for all Material		No drilling reported.
		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	Newmont Goldcorp
methods		techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off		No drilling reported.
		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
Relationship		These relationships are particularly important in the	Newmont Goldcorp
between mineralisation		reporting of Exploration Results. If the geometry of the mineralisation with respect to		No drilling was undertaken.
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		Refer to figures within		this report.
		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	Newmont Goldcorp
		Results is not practicable, representative reporting of both low and high grades and/or widths should be		No assays reported, see diagrams.
		practiced to avoid misleading reporting of Exploration
		Results.
Other substantive		Other exploration data, if meaningful and material,		No other substantive exploration data at
exploration data		should be reported including (but not limited to):		this time.
		geological observations; geophysical survey results;
		geochemical survey results; bulk samples – size and
		method of treatment; metallurgical test results; bulk
		density, groundwater, geotechnical and rock
		characteristics; potential deleterious or contaminating
		substances.
Further work		The nature and scale of planned further work (e.g.		Dreadnought	plans	to	undertake
		tests for lateral extensions or depth extensions or		prospect specific geophysics to assist in
		large-scale step-out drilling).		refining drill	targets	within the Illaara
		Diagrams clearly highlighting the areas of possible		Central Prospect.
		extensions, including the main geological		Once drill targets are		refined,	first pass
		interpretations and future drilling areas, provided this		exploration	AC/RC	drilling	will	be
		information is not commercially sensitive.		undertaken.

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