DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2016

Jan 28, 2016

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Australian Securities Exchange Announcement

29 January 2016

ASX Market Announcements Australian Securities Exchange 20 Bridge Street SYDNEY NSW 2000

QUARTERLY REPORT

EXPLORATION & CORPORATE HIGHLIGHTS

• In October 2015, Farm-in partner Ramelius Resources Limited (ASX: RMS, ‘Ramelius’) conducted 1346m of drilling over priority Suplejack tenement North of NT based Callie Gold mine

• Farm-in partner Ramelius received notice of intention to grant three key exploration licenses within the Tanami Joint Venture Project from the Department of Mines and Energy Northern Territory

• Farm-in partner Maximus Resources Limited (ASX:MXR, ‘Maximus’) conducted a comprehensive exploration review of ‘Eagles Nest’ Spargoville tenements in WA highlighting numerous exploration targets for follow up drilling

• In November 2015 Tychean completed a 1 for 10 share consolidation

• On 17 November 2015 Maximus achieved its Spargoville Gold project expenditure milestone and earnt a 51% equity interest by meeting Stage 1 of the earn-in commitment

• On 9 December 2015, Maximus announced completion of the Eagles Nest drilling program

• In December 2015 Tychean finalized a placement to sophisticated and professional investors totaling $135,000 for working capital and due diligence on new opportunities

2

EXPLORATION ACTIVITIES

Spargoville Gold Project Farm-in Agreement (WA)

During the quarter, Maximus achieved the Stage 1 earn-in of the Spargoville Project by expending $200,000 on exploration to secure 51% equity in the project. Under the terms of the Farm-In Agreement, Maximus will manage all future exploration activities and expenditure allocations and can increase equity in the tenements to 90% within 3 years from commencement by investing a further $600,000 in exploration.

Maximus also commenced its maiden drilling program on the Eagles Nest tenement in the Spargoville project area. A total of 8 holes were completed for a total of 809 metres to test for strike and depth extensions to known mineralisation in the Eagles Nest goldfield. One drill hole was cancelled due to difficulties accessing the location with the large drill rig available to complete the program. This hole may be completed in a subsequent drill program when a smaller unit is available. Samples have been submitted to the Assay laboratory for analysis and Tychean awaits these results.

The Annual Environmental Review for Wattle Dam, within the Spargoville tenement package, was completed and submitted to the WA Department of Mines and Petroleum.

Tanami Farm-in and Joint Venture (NT)

During the quarter, Ramelius conducted 1346m of drilling over the priority Suplejack tenement North of Callie Gold mine. Anomalous gold was encountered in assay samples confirming prospectively of wider Suplejack targets.

Three Exploration Licences (ELs) 27995, 27511 and 29829 were granted during the quarter. Work progressed on submitting a Mine Management Plan to the Northern Territory Department of Mines and Energy and liaising with the Central Land Council to allow reconnaissance exploration to proceed during the 2016 field season.

Tychean continues to investigate new project opportunities and is reviewing its Valley Floor Project with a view to seeking, amongst other things, a Joint Venture partner to further exploration activities in the area.

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3

SCHEDULE OF INTERESTS IN MINING TENEMENTS

As at 31 December 2015

Project	Tenement	Lease Name	State	Status	% Held by TYK	Holders
Spargoville	M15/1475	Eagles Nest	WA	Granted	49%Registered	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	E15/967	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	E15/968	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/128	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/255	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/395	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/703	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/5860	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/4884	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/4885	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/4963	Kambalda West	WA	Granted	49% beneficially held - No Nickel Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1448	Hilditch	WA	Granted	44.10% Registered	BULLABULLING PTY LTD TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1449	Larkinville	WA	Granted	36.75% Registered 39.2% Ni Rights	PIONEER RESOURCES LTD TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LT
Spargoville	P15/5912	Villa Deste	WA	Granted	36.75% Registered 39.2% Ni Rights	PIONEER RESOURCES LTD TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LT
Spargoville-	M15/97	North Widgie	WA	Granted	49% AU rights only	SALT LAKE MINING LTD
Spargoville	M15/99	North Widgie	WA	Granted	49% AU rights only	SALT LAKE MINING LTD
Spargoville	M15/100	North Widgie	WA	Granted	49% AU rights only	SALT LAKE MINING LTD
Spargoville	M15/101	North Widgie	WA	Granted	49% AU rights only	SALT LAKE MINING LTD
Spargoville	M15/102	North Widgie	WA	Granted	49% AU rights only	SALT LAKE MINING LTD
Spargoville Spargoville	M15/653 M15/1271	North Widgie North Widgie	WA WA	Granted Granted	49% AU rights only 49% AU rights only	SALT LAKE MINING LTD SALT LAKE MINING LTD

4

Spargoville	M15/1101	Wattle Dam	WA	Granted	49%Registered & 39.2%Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1263	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1264	Wattle Dam	WA	Granted	49%Registered & 39.2%Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1323	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1338	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1474	Wattle Dam	WA	Granted	49%Registered –all rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1769	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1770	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1771	Wattle Dam	WA	Granted	49%Registered & 39.2%Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1772	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1773	Wattle Dam	WA	Granted	49%Registered & 39.2% Ni Rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1774	Wattle Dam	WA	Granted	49%Registered –all rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1775	Wattle Dam	WA	Granted	49%Registered –all rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1776	Wattle Dam	WA	Granted	49%Registered –all rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/5953	Logan Dam	WA	Granted	49%Registered – all rights	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Valley Floor	E15/1249	Lake Lefroy	WA	Granted	100%	VALLEY FLOOR RESOURCES PTY LTD
Valley Floor	E15/1399	Lefroy South	WA	Granted	100%	VALLEY FLOOR RESOURCES PTY LTD
Valley Floor	E15/1434	ValleyFloor Ext	WA	Granted	100%	TYCHEAN RESOURCES LTD
Valley Floor	E15/1438	Valley Floor Ext	WA	Granted	100%	TYCHEAN RESOURCES LTD
Tanami	EL 26625	Suplejack	NT	Granted	15% beneficially held	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27511	Highland Rocks	NT	Granted	15%Registered	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27806	Talbot North	NT	Granted	15% beneficially held	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27921	Groundrush	NT	Pending	15% beneficially held	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27995	Officer Hills South	NT	Granted	15%Registered	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27997	Mount Solitaire	NT	Pending	15% beneficially held	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 28493	Groundrush South	NT	Pending	15% beneficially held	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 29829	Highland Rocks 2	NT	Granted	15%Registered	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD

5

For further information please contact

Mr. Robert Kennedy Mr. Duncan Gordon Chairman Executive Director Tychean Resources Limited Adelaide Equity Partners Limited M: 0418 836 965 M: 0404 006 444

Further information relating to Tychean Resources Ltd and its various exploration projects can be found at its website: www.tycheanresources.com

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

TYCHEAN RESOURCES LIMITED

ABN 40 119 031 864

Quarter ended (“current quarter”) 31 December2015

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & 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) R&D Tax Concession Net Operating Cash Flows	Current quarter $A’000	Year to date (6 months) $A’000
	(27) (143) -	(334) (255) 48
	(170)	(541)
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)		220 1
	-	221
	(170)	(320)

• See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(170)	(320)
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	135	285
	135	285
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 ofquarter	(35) 102 -	(35) 102 -
	67	67

Payments to directors of the entity, associates of the directors, 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
		-
		-
1.25	Explanation necessaryfor an understandingof the transactions

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	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

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

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

• 3.1 Loan facilities

• 3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A’000
		2
		50
	Total	52

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production

• 4.4 Administration

Reconciliation of cash

Reco show to th	nciliation of cash at the end of the quarter (as n in the consolidated statement of cash flows) e related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 5.2 5.3 5.4	Cash on hand and at bank Deposits at call Bank overdraft Other (provide details)	67	102
	Total: cash at end of quarter(item 1.22)	67	102

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.

• 5.1 Cash on hand and at bank

• 5.2 Deposits at call

• 5.3 Bank overdraft

• 5.4 Other (provide details)

• See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 3

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Changes in interests in mining tenements and petroleum tenements

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed	Tenement reference and location	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
	M15/1475 Eagles Nest E15/967 Kambalda West E15/968 Kambalda West L15/128 Kambalda West L15/255 Kambalda West M15/395 Kambalda West M15/703 Kambalda West P15/5860 Kambalda West P15/4884 Kambalda West P15/4885 Kambalda West P15/4963 Kambalda West M15/1448 Hilditch M15/1449 Larkinville P15/5912 Villa Deste M15/1101 Wattle Dam M15/1263 Wattle Dam M15/1264 Wattle Dam M15/1323 Wattle Dam M15/1338 Wattle Dam * M15/1474 Wattle Dam *	Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced	75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 67.5% 56.25% (60% Ni rights) 56.25% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights)	49% 49% 49% 49% 49% 49% 49% 49% 49% 49% 49% 44.10% 36.75% (39.2% Ni rights) 36.75% (39.2% Ni rights) 49%(39.2 % Ni rights) 49%(39.2 % Ni rights) 49%(39.2 % Ni rights) 49%(39.2 % Ni rights) 49%(39.2 % Ni rights) 49% (all rights)

• See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

6.1 Cont. Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements and petroleum tenements acquired or increased	Tenement reference and location	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	M15/1769 Wattle Dam M15/1770 Wattle Dam 15/1771 Wattle Dam M15/1772 Wattle Dam M15/1773 Wattle Dam M15/1774 Wattle Dam M15/1775 Wattle Dam M15/1776 Wattle Dam P15/5953 Logan Dam M15/97 North Widgie M15/99 North Widgie M15/100 North Widgie M15/101 North Widgie M15/102 North Widgie M15/653 North Widgie * M15/1271 North Widgie *	Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced Reduced	75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights) 75% (60% Ni rights 75% (60% Ni rights) 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75%	49%(39.2 % Ni rights) 49% (39.2% Ni rights) 49% (39.2% Ni rights) 49%(39.2 % Ni rights) 49%(39.2 % Ni rights) 49% 49% 49% 49% 49% AU rights 49% AU rights 49% AU rights 49% AU rights 49% AU rights 49% AU rights 49% AU rights
	* Relevant Change in interest pursuant to Spargoville Farm-in agreement with Maximus Resources Limited.

• See chapter 19 for defined terms.

01/05/2010 Appendix 5B Page 5

Appendix 5B Mining exploration entity and oil and gas 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 note3) (cents)	Amount paid up per security (see note3) (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	284,408,766	284,408,766
	33,750,000	33,750,000	$0.004	Fully Paid
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	16,769,833	16,769,833	Exercise price $0.04	Expiry date 4 June 2016
7.11 Debentures (totals only)

• See chapter 19 for defined terms.

Appendix 5B Page 6

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.12 Unsecured notes (totals only)

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 5).

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

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Sign here: ..................................................... (Company secretary)

Date: 29 January 2016.

Kaitlin Smith

Print name: …..................................................

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 and petroleum 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 or petroleum 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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

01/05/2010 Appendix 5B Page 7