DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2007

Jan 30, 2008

QUARTERLY REPORT period ending 31 December 2007

==> picture [163 x 87] intentionally omitted <==

Highlights

• New Exploration Licences granted at Welbourn Hill and Nicholson (ERO 100%), on the northern Gawler Craton, targeting iron oxide-copper-golduranium mineralisation.

• Drill testing of Welbourn Hill to commence in early February 2008 with two 800m deep diamond holes. Gravity survey at Nicholson contracted for mid-February 2008.

• Over 250km of new palaeodrainages identified at the Abminga East/ Abminga projects considered highly prospective for sandstone-hosted uranium.

• Drilling of the Atlas/Baco palaeodrainage systems at Abminga East to start in the second week of February 2008 with 25-30 holes planned.

• Excellent project portfolio with programs ongoing at Marree, Billa Kalina and Kingoonya likely to generate multiple new exploration targets.

Eromanga Uranium Limited ACN 119 031 864

62 Beulah Road Norwood South Australia 5067

• As at 31st December 2007 the company held cash of $9.24 million.

==> picture [346 x 234] intentionally omitted <==

----- Start of picture text -----

• Following a very active December Quarter
the company is now positioned to
embark on a dynamic 2008
with major drilling programs
contracted at Welbourn
Hill (IOCGU) and NT
Illogwa Creek QLD
Abminga East
(Uranium). Abminga East
WA Eromanga Basin
Abminga Welbourn Hill
SA
Kingoonya Marree
Gawler
Craton Billa Kalina
NSW
500km
VIC
Uranium
Copper, gold, uranium
TAS
----- End of picture text -----

Figure 1 Location of Projects

PO Box 3126 Norwood South Australia 5067

REVIEW OF OPERATIONS

Phone 61 8 8132 7970

Corporate Activities

Fax 61 8 8132 7999

Email info@eromangauranium.com web www.eromangauranium.com

Finance

As at 31st December 2007, Eromanga had available funds of $9.24 million of which the majority is held in term deposits with an Australian bank. During the December quarter total net expenditure by the company was $1.051 million.

300m of sedimentary breccias, increasingly iron rich towards the bottom of the hole, of unknown age. Previous exploration by Newcrest, drill hole WHD2 (Figure 2), failed at a depth of 507m having intersected, in the last seven(7) metres, a sandstone unit containing abundant steely/specular hematite veining.

EXPLORATION ACTIVITIES

~~Iron oxide-copper-gold-uranium~~

Welbourn Hill Project

(Eromanga 100% in EL 4020)

The Welbourn Hill Project is located approximately 40 km east of the township of Marla in far northern South Australia (Figure 1) and forms part of the company’s Northern Gawler Craton IOCGU Initiative. This exciting target is defined by coincident high order gravity and magnetic anomalies at the northern limits of the Gawler Craton and is considered to be prospective for iron oxide-coppergold-uranium mineralisation similar to that at the Olympic Dam, Prominent Hill and Carrapateena deposits to the south-east. During the quarter the company has completed detailed geophysical modelling over a number of areas on the northern Gawler Craton considered to have IOCGU potential. On the basis of this modelling the company has applied for, and has now been granted, exploration licences EL 4020 and EL 4019 covering the Welbourn Hill and Nicholson anomalies respectively. After further review the company has also made application for an additional tenement, ELA 2007/532, to consolidate our landholdings in the area.

Eromanga is confident that it can overcome previous drilling problems by the use of rotary-mud drilling in the upper 250m of the drill holes, where the sediments are not fully consolidated.

Future Exploration

Aboriginal Heritage surveys have been completed over the area and Eromanga has drilling contracts in place for the drilling of two deep diamond holes to commence on, or about, the 1st February 2008. Both holes will be pre-collared to depths of approximately 250m, using rotary-mud techniques, with diamond drilling to complete the holes to a final depth of approximately 800 metres.

Nicholson Project

(Eromanga 100% in EL 4019)

The Nicholson Project is located approximately 35km northeast of Welbourn Hill and 60km from the township of Marla in far northern South Australia (Figure 3). The project is defined by a significant regional gravity anomaly centred over a large elliptical magnetic feature that is currently interpreted as a volcanic complex within older basement rocks (Figure 4). The character of the magnetic data suggests that the basement rocks may be at

The Welbourn Hill exploration model indicates that the geophysical anomalies are best explained by the presence of a significant body of elevated specific gravity (density) at a depth of approximately 650m below surface (Figure 2). The specific gravities used by Eromanga in its modelling fall within the range of densities observed in known IOCGU deposits. Overlying the target at Welbourn Hill is a sequence of younger sediments consisting initially of 200-250m of Mesozoic sands and shales followed by

==> picture [528 x 316] intentionally omitted <==

----- Start of picture text -----

Welbourn Hill is a sequence of younger sediments consisting
initially of 200-250m of Mesozoic sands and shales followed by
������� ���������
����������� ������������
����
�� 7,000,000 mN
Coongra 1Coongra 1Coongra 1Coongra 1 ����
Nicholson TargetNicholson TargetNicholson TargetNicholson Target
���� Nicholson 1Nicholson 1Nicholson 1Nicholson 1 ���� EOB 2EOB 2EOB 2EOB 2
�� ����
EL4019EL4019EL4019EL4019
�
����
EL4020EL4020EL4020EL4020
�������
������������������ 6,980,000 mN
���������� ������� ������������ ���������������� ���� Nicholson 2Nicholson 2Nicholson 2Nicholson 2
�������
���������� ����� EWHD 2EWHD 2EWHD 2EWHD 2 ��� � ������ EWHD 1EWHD 1EWHD 1EWHD 1 ELA 532/07
��������������������������� Welbourn HillWelbourn HillWelbourn HillWelbourn Hill WHD 2WHD 2WHD 2WHD 2 ��� � Proposed Drillhole
�������� �������� ����� TargetTargetTargetTarget ���� Historic Drillhole
������� Fault
������ 0 5 km Gravity Contour
���
����� 6,960,000 mN
����
��
����
��������
����
��������
���
���
��
����� �����������
���������������������������
��
��� ����
���
��
�����
400,000 mE 420,000 mE
----- End of picture text -----

Figure 3 Gravity contours over the magnetic image at Welbourn Hill and Nicholson

Figure 2 Schematic section of the Welbourn Hill geophysical model.

shallower depths than at Welbourn Hill however the area has not been subject to any previous exploration. Access to the project area is good, the relationship with local pastoralists is excellent and Aboriginal Heritage clearance has been received which all combines to facilitate rapid and cost effective exploration.

commence during the second week of February 2008 and has been designed to both confirm the regional gravity signature and provide sufficient detail to allow initial drill testing. Dependant on survey results the company is hoping to complete initial drill testing in early-mid March 2008, following the drilling program at Welbourn Hill.

Future Exploration

The first phase of exploration at the Nicholson Project will involve the completion of a ground gravity survey covering the entire area of interest (Figure 4). This gravity survey is contracted to

==> picture [253 x 244] intentionally omitted <==

----- Start of picture text -----

7,010,000 mN
EL4019EL4019
7,000,000 mN Planned GravityPlanned GravityPlanned Gravity Planned Gravity
Survey LinesSurvey LinesSurvey Lines Survey Lines
-470
-460
-560
-550
-500
-410
-480
-450
-420
-430
-510
-400
-440
-520
-540
-530
-510
-490
-390
-500
-520
-490
-520
Fault
420,000 mE 430,000 mE
----- End of picture text -----

Figure 4 Gravity contours over the magnetic image at Nicholson.

~~Sandstone-Hosted Uranium Exploration~~

Abminga East Project

(Eromanga 100% in ELs 3982, 3964 and ELA 594/07)

The Abminga East Project (1867km[2] ) is located approximately 100km north/north-east of the township of Marla in far northern South Australia (Figure 1) and is contiguous with, and immediately east of, the larger Abminga Project (7000km[2] ) where Eromanga is earning 70% equity from Maximus Resources Ltd. The entire area is considered to be highly prospective for sandstone-hosted (roll-front) style uranium mineralisation similar to that currently being mined at the Beverly deposit in the Frome Embayment SA. Airborne EM coverage over the entire Abminga East project area was completed in 2007 and immediately identified the Atlas/Baco drainage systems as a priority target. Ongoing data processing, analysis and interpretation of the EM data has now identified 14 new palaeodrainages in the immediate environs of the Atlas/Baco systems (Figure 5). This palaeodrainage network totals in excess of 250km of interpreted drainage available for testing.

Future Exploration

Aboriginal Heritage surveys have been completed and drilling contracts are in place that will allow the completion of a first phase of rotary-mud drill testing of the Atlas/Baco palaeodrainages. Drilling will commence in the second week of February 2008 and will involve the drilling of 25-30 holes across the Atlas/Baco

==> picture [528 x 247] intentionally omitted <==

----- Start of picture text -----

EL3602
Mount Anthony EL3982
Mount Treloar
Miller
Gassendi
Eromanga Uranium 100%
EL3186 Maximus Resources JV
Delambre
Warrataddy Hill
Caldera Resources JV
-26º30'
Palaeochannel
EL3601
Black Hill Dam
20 km
EL3964
Enungarenna Hill
ELA 594/07 Lambina
Kepler
Baco
Julius
Lambert
Euler
Franklin
Capella
Zeno
Atlas
Halley
Isidorus
134º 134º30'
----- End of picture text -----

Figure 5 New palaeodrainages identified, outside of the current targets in the Atlas/Baco systems

systems. This program has been designed to confirm and enhance the understanding of the drainage geometries interpreted from the geophysical data sets as well as directly testing for the presence of uranium mineralisation.

Abminga Project

(Eromanga earning 70% under the Eromanga Basin JV Agreement with Maximus Resources Ltd in ELs 3575,3599,3600,3601,3602,25163 and 25166. Eromanga earning 100% of the uranium rights from Caldera Resources on EL 3186).

The Abminga Project covers approximately 7000km[2] of continuous tenements extending from south of Marla SA across the SA/NT border (Figure 6) and is considered to be highly prospective for the discovery of sandstone-hosted uranium mineralisation. (Note: geologically the Abminga and Abminga East project areas are of similar geological potential and are only separated to clarify the ownership position of Eromanga Uranium Ltd). A number of the new palaeodrainages identified by the recently completed airborne EM survey (Figure 5) are located either totally or partially within the Abminga Project and will receive initial testing as part of the upcoming rotary-mud drilling program discussed above.

Considerable potential exists for the discovery of additional new palaeodrainage systems both to the north and south of the area detailed in Figure 5 and computer processing of the extensive airborne EM data sets is ongoing at the company’s Adelaide office.

==> picture [253 x 334] intentionally omitted <==

----- Start of picture text -----

Lilla Creek
Finke
Umbeara
Kulgera
Northern Territory
26°S
South Australia
Tieyon
Agnes Creek Mount Irwin
Lambina
Granite Downs
27°S
Marla
Welbourn Hill
Wallatinna
20km
133°E 134°E
----- End of picture text -----

Future Exploration

It is envisaged that exploration for sandstone-hosted uranium deposits will continue, on a campaign basis, throughout 2008. This exploration will be predominantly drill based with priorities determined by the results received and the subsequent assessment of overall discovery potential.

Marree Project

(Eromanga earning 70% under the Eromanga Basin JV Agreement with Maximus Resources Limited in ELs 3574, 3577, 3578 and 3579. Eromanga 100% of ELs 3962 and 3963 )

The Marree Project is located 40km east of the township of Marree in northern South Australia (Figure 1) and consists of six granted exploration licences covering 5779 km[2] . Eromanga’s primary exploration target at the Marree Project is sandstone-hosted uranium deposits similar to those at the Beverley and Four Mile discoveries. Exploration during the quarter has been limited to analysis of the results of initial drilling completed earlier in 2007, the design of second phase drill testing and the completion of further Aboriginal Heritage surveys.

Comparison of the results of the Marree airborne EM survey (the first REPTEM survey ever undertaken) with those from later surveys at Abminga, Kingoonya and Billa Kalina has indicated that an improved understanding of the geology at Marree would be obtained from the re-processing of the Marree data. This task will be completed in early 2008 and the results integrated into the company’s exploration programs.

Future Exploration

Aboriginal Heritage surveys have been successfully completed and the second rotary-mud drilling program at Marree has been program for completion towards the end of the first quarter of 2008. This drilling program will focus on areas where thicker sequences of the target Algebuckina Sandstone have developed as well as testing shallower units of the Coorikiana Sandstone.

Kingoonya Project

(Eromanga Uranium earning 70% under the terms of the Eromanga Basin JV from Maximus Resources in ELs 3573. 3576, 3590, 3591 and 3613)

The Kingoonya Project is located approximately midway between the townships of Glendambo and Coober Pedy, South Australia and consists of five granted exploration licences covering 4060km[2] . The company’s main exploration targets at Kingoonya are sandstone-hosted uranium and unconformity-related uranium deposits.

The last of four major airborne EM survey undertaken by Eromanga Uranium was completed over the entire Kingoonya tenement area in the second half of 2007. This data set is currently undergoing detailed computer processing and imaging in Adelaide. Preliminary results are encouraging and further work is being undertaken that will allow the identification of discrete targets for testing in the second half of 2008.

Figure 6 Location of the Abminga Project with airborne EM image.

Billa Kalina

(Eromanga Uranium earning 50% under the terms of the Billa Kalina JV from Maximus Resources Ltd in ELs 3526, 3525, 3170, 3337 and 3338)

The Billa Kalina Project is located 70km north-north-west of the Olympic Dam copper-gold-uranium (IOCGU) mine, and 45km east of the more recent discovery and mine development at Prominent Hill, South Australia (Figure 1). Eromanga is exploring for IOCGU deposits in the deeper basements rocks and for sandstonehosted uranium mineralisation in the shallower sedimentary cover sequences.

Eromanga completed an airborne EM survey over the entire Billa Kalina project area in the second half of 2007 and this data is currently being processed in Adelaide. This EM data will be used in conjunction with new detailed gravity data (collected by PIRSA) and magnetics to review the potential of the Billa Kalina tenements to host IOCGU mineralisation. Drilling of the Billa Kalina Gravity anomaly in 2007 highlighted the relatively shallow depths of sedimentary cover in this region and the strategic positioning of the Billa Kalina Project between Olympic Dam and Prominent Hill suggests that the exploration potential remains substantial.

The EM data sets will also be used to identify the development of palaeodrainages in both the Mesozoic and Permian cover sequences capable of hosting secondary uranium mineralisation.

==> picture [253 x 375] intentionally omitted <==

Summary

Eromanga is delighted with the positioning of the company entering 2008. The extensive foundations laid over the last year have resulted in two exciting targets, at Welbourn Hill and Abminga East, being ready for immediate drill testing. Eromanga Uranium has 100% ownership of both these projects and is highly leveraged to exploration success. The extensive data sets generated from the 22,000 line/km of airborne EM surveys completed in 2007 means that the company has an excellent pipeline of new projects and the capability to continue to generate new opportunities in-house. The company is well funded to actively explore it’s tenement portfolio and has the people, systems and equipment that are pre-requisite to success.

==> picture [103 x 61] intentionally omitted <==

Mr Kevin Lines Managing Director

29 January 2008

For further information please contact Kevin Lines on 08 8132 7970 or 0419 801010

Further information relating to Eromanga Uranium Limited and its various exploration projects can be found on the Eromanga website:

www.eromangauranium.com

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Kevin Lines who is a Member of the Australasian Institute of Mining and Metallurgy, and who has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration, and the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (the JORC Code). This report is issued in the form and context in which it appears with the written consent of the Competent Person, who is Managing Director of the Company.

EM hoist used to fly the airborne EM survey over the Billa Kalina Project area.

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

	Name of entity
	Eromanga Uranium Limited
	ABN 40 119 031 864 Consolidated statement of cash flows
			31 December 2007
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (6 months) $A’000
		(946) (379) 274		(2,627) (595) 497
		(1,051)		(2,725)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		(30) (10)		(70) (10)
		(40)		(80)
		(1,091)		(2,805)

• See chapter 19 for defined terms.

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,091)	(2,805)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(1,091) 10,327	(2,805) 12,041
	9,236	9,236

1.22 Cash at end of quarter , ,	1.22 Cash at end of quarter , ,	1.22 Cash at end of quarter , ,	1.22 Cash at end of quarter , ,
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.23 1.24		Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
			120
1.25 Explanation necessaryfor an understandingof the transactions Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest		Explanation necessaryfor an understandingof the transactions
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest

• See chapter 19 for defined terms.

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available	Amount used
$A’000	$A’000

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	1,000
Total	1,000

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	136 9,100	27
		10,300
Total: cash at end of quarter(item 1.22)	9,236	10,327

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	EL3962 EL3963 EL3964 EL3982	Granted Granted Granted Granted	Nil Nil Nil Nil	100% 100% 100% 100%

• See chapter 19 for defined terms.

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	125,442,346	63,335,203
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	26,785,714 283,000 225,000		Exercise price $0.30 $0.22 $0.22	Expiry date 30/6/2011 20/3/2012 19/11/2012
	225,000		$0.22	19/11/2012
7.11 Debentures (totals only)
7.12 Unsecured notes(totals only)

• See chapter 19 for defined terms.

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here:

==> picture [112 x 48] intentionally omitted <==

Date: 21 January 2008

(Director/Company secretary)

Print name: Richard W C Willson

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 5

30/9/2001