DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2020

May 18, 2020

19 May 2020

==> picture [149 x 85] intentionally omitted <==

ILLAARA GOLD-VMS DRILLING FULLY FUNDED FOLLOWING $500,000 PLACEMENT

HIGHLIGHTS

• $500,000 (before costs) raised through professional and sophisticated investors

• Proceeds to be used for RC drilling of nine gold and VMS targets at Illaara and Rocky Dam

• Board and management to maintain 23% ownership by investing $70,000 subject to shareholder approval, total investment to date of $850,000

• Drilling to commence May 2020, with initial assay results expected July 2020

Dreadnought Resources Limited (“ Dreadnought ”) is pleased to announce that a placement has raised $500,000 at $0.004 per share before costs (23% discount to 10-day VWAP). The placement will provide the funds required to test nine high quality gold and VMS targets at Illaara and Rocky Dam.

Drilling will commence in late May 2020 at the Rodney, Warspite, Bismarck and Reindler’s VMS targets (6 holes and 1,100 metres) which all contain outcropping gossans and conductive EM plates. Drilling will then proceed to Metzke’s Find (6 holes and 450 metres) to infill 250m of strike beneath the deepest workings associated with a 15 degree bend in the mineralised structure where previous drilling intersected 2m @ 6.8 g/t Au and 4m @ 1.9 g/t Au.

Once drilling is complete, Dreadnought will undertake additional target definition work within the Illaara Central Corridor, Metzke’s Corridor and Rocky Dam followed immediately by additional RC drilling in July/August 2020.

Dreadnought Managing Director, Dean Tuck, commented: “Dreadnought, in its first 12 months of operations, has been extremely active, with over 80% of its funds going into the ground. Dreadnought has acquired and consolidated significant landholdings over prospective underexplored terrain and defined thirty drill ready targets while drilling nine previously defined targets.

This funding will be used specifically to test nine of our highest ranked targets commencing in late May 2020.”

==> picture [372 x 197] intentionally omitted <==

Figure 1: Long section of Metzke’s Find showing the location of planned drill intercepts.

Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014

www.dreadnoughtresources.com.au info@dreadnoughtresources.com.au

+61 (0) 428 824 343

==> picture [149 x 85] intentionally omitted <==

Capital Structure Post Placement:

Shares on Issue	Market Cap (@ $0.006)	Cash (unaudited)	Unlisted Options (~$0.007 strikeprice)	Convertible Note*
1,891,680,768	11.4 Million	$600,000	163,000,000	$600,000

*600,000 @ $1.00, 10%pa coupon, convertible @ $0.0055, redeemable 21 June 2021

Funds will be specifically applied as follows:

• Illaara VMS RC drilling and DHEM:

• Rodney (1 hole and 180 metres)

• Reindler’s (2 holes and 370 metres)

• Warspite (2 holes and 370 metres)

• Bismarck (1 hole and 180 metres)

• Metzke’s Find RC drilling: (6 holes and 450 metres)

• Target Generation at Illaara Central Corridor, Metzke’s Corridor and Rocky Dam:

• Additional RC Drilling based on results from drilling and target generation: (1,000m)

==> picture [333 x 416] intentionally omitted <==

Figure 2: Plan view of Illaara showing the location of gold and VMS targets

Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014

www.dreadnoughtresources.com.au info@dreadnoughtresources.com.au

+61 (0) 428 824 343

==> picture [149 x 85] intentionally omitted <==

For further information please refer to previous ASX announcements:

• 24 June 2019

• 17 January 2020

• 75 km Long Illaara Greenstone Belt Acquired from Newmont

• Metzke’s Find and Wombarella Completion and Cleansing Notice

• 19 March 2020 RC Drilling Hits High Grade Gold at Metzke’s Find

• 15 April 2020 Multiple Conductors at the Illaara Gold-VMS Project

• 22 April 2020 Multiple Gold in Soil Anomalies at Illaara Central

• 5 May 2020 Multiple Gold in Soil Anomalies over 12km Long Corridor at Metzke’s

UPCOMING NEWSFLOW

May: Geological mapping at Illaara Central and along Metzke’s Find corridor to further constrain targets for drill testing

May: Commence RC drilling programs for the deeper bedrock targets at Metzke’s Find and the VMS targets at Rodney, Warspite, Bismarck and Reindler’s

May: Results of magnetic and gravity 3D inversions at Tarraji

Early June: Assay results from RC drilling program at Rocky Dam

May/June: Results of EIS applications for RC drilling at Chianti-Rufina and diamond drilling at Texas part of the Tarraji-Yampi Project in the Kimberley

June/July: Drill targets from geological mapping at Illaara Central and Metzke’s Find corridor work

July: Assay results from RC drilling programs at the VMS targets at Rodney, Warspite, Bismarck and Reindler’s

July: Assay results from RC drilling programs at the deeper bedrock targets at Metzke’s Find

~Ends~

For further information please contact:

Dean Tuck Nick Day Managing Director Company Secretary Dreadnought Resources Limited Dreadnought Resources Limited E:dtuck@dreadnoughtresources.com.au E:info@dreadnoughtresources.com.au

This announcement is authorised for release to the ASX by the Board of Dreadnought.

Competent Person’s Statement

The information in this announcement that relates to geology and exploration results and planning was compiled by Mr. Oliver Judd, who is a Member of the AusIMM, exploration manager and shareholder of the Company. Mr. Judd 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. Judd 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 Person’s findings are presented have not been materially modified from the original reports.

Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014

www.dreadnoughtresources.com.au

info@dreadnoughtresources.com.au

+61 (0) 428 824 343

==> picture [149 x 85] intentionally omitted <==

INVESTMENT HIGHLIGHTS

Kimberley Ni-Cu-Au Projects

Dreadnought controls the second largest land holding in the highly prospective West Kimberley region of WA. The main project area, Tarraji-Yampi, is located only 85kms from Derby and has been locked up as a Defence reserve since 1978. The area was only recently opened under the Commonwealth Government’s co-existence regime that balances Defence’s needs with the requirements of others including Aboriginal groups, the resources industry, pastoralists and State Governments.

Tarraji-Yampi presents a rare first mover opportunity with known outcropping mineralisation and historic workings from the early 1900s which have seen no modern exploration.

Three styles of mineralisation occur at Tarraji-

==> picture [236 x 322] intentionally omitted <==

Yampi including: volcanogenic massive sulphide (“ VMS ”); Proterozoic Cu-Au (“ IOCG ”); and magmatic sulphide Ni-Cu-PGE. Numerous high priority nickel, copper and gold drill targets have been identified from recent VTEM surveys, historical drilling and surface sampling of outcropping mineralisation.

Illaara Gold & VMS Project

Illaara is located 190km northwest of Kalgoorlie in the Yilgarn Craton and covers 75kms of strike along the Illaara Greenstone Belt. Illaara is prospective for typical Archean mesothermal lode gold deposits and base metals VMS mineralisation.

Dreadnought has consolidated the Illaara Greenstone Belt mainly through an acquisition from Newmont. Newmont defined several camp-scale targets which were undrilled due to a change in corporate focus. Prior to Newmont, the Illaara Greenstone Belt was predominantly held by iron ore explorers and has seen minimal gold and base metal exploration since the 1990s. Illaara contains several drill ready gold targets. In addition, the Eastern and Western VMS Horizons are expected to produce exciting drill targets with the application of modern exploration technology.

Rocky Dam Gold & VMS Project

Rocky Dam is located 45kms east of Kalgoorlie in the Eastern Goldfields Superterrane of Western Australia. Rocky Dam is prospective for typical Archean mesothermal lode gold deposits and Cu-Zn VMS mineralisation. Rocky Dam has known gold and VMS occurrences with drill ready gold targets including the recently defined CRA-North Gold Prospect.

Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014

www.dreadnoughtresources.com.au info@dreadnoughtresources.com.au

+61 (0) 428 824 343