DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2017

Jul 30, 2017

==> picture [69 x 57] intentionally omitted <==

Australian Securities Exchange Announcement

31 July 2017

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

QUARTERLY REPORT

EXPLORATION & CORPORATE HIGHLIGHTS

• Withdrawal from acquisition of Blom Diamonds

CORPORATE:

Last quarter Tychean Resources advised the market the proposed acquisition of South African based Blom Diamonds, as originally announced to the ASX on the 25[th] January 2017, will be deferred until such time as the Company finalises its engagement process with the ASX regarding completion of the transaction.

Communication with the ASX over the past quarter has highlighted concerns with the potential for this transaction not to comply with ASX's interpretation of certain ASX Listing Rules, in particular with respect to ‘back door listing’ regulations regarding any change in nature and scale of the Company’s activities. Although Tychean does not necessarily take the same view as the ASX, in the interests of protecting shareholder value and in terms of moving forward with smaller exploration and mining activities, we believe it is in Tychean's best interest to defer this process until a positive opinion has been agreed with the ASX and where there is consensus that an amended proposition satisfies ASX's guidelines.

Tychean and Blom continue to work collaboratively and informally throughout the resolution process and additionally in conducting due diligence on other potential growth opportunities, in order to reach future positive outcomes for shareholders. Tychean will continue to inform shareholders with any ongoing developments in the mining and exploration space.

2

EXPLORATION ACTIVITIES:

Tanami Joint Venture (NT) – Ramelius 85%, Tychean 15%.

Tychean maintain a 15% interest in the project, with partner Ramelius Resources (ASX:RMS) who have completed a maiden Aircore drilling programme at the Highland Rocks ELs totalling 5,780m. No field work was completed at the tenements during the past quarter. Scheduled reconnaissance drilling within the Tanami Joint Venture’s ELs has been delayed pending heritage surveys. With Ramelius focusing on work commitments elsewhere, the surveys are not anticipated to be completed before the start of the 2018 field season.

==> picture [336 x 232] intentionally omitted <==

Figure 1: Highland Rocks ELs recent Ramelius Aircore drilling and historical Newmont drilling over the Renton & Higgs prospects, overlain on a 1VD-RTP aeromagnetic data image.

3

SCHEDULE OF INTERESTS IN MINING TENEMENTS

As at 30 June 2017

Project	Tenement	Lease Name	State	Status	% Owned by TYK	Holders
Spargoville	M15/1475	Eagles Nest	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	E15/967	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	E15/968	KambaldaWest	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/128	KambaldaWest	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/255	KambaldaWest	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/395	KambaldaWest	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/703	KambaldaWest	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/5860	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1448	Hilditch	WA	Granted	44.10% Registered,nil beneficially owned	BULLABULLING PTY LTD (10%) TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1449	Larkinville	WA	Granted	36.75% Registered, nil beneficially owned	PIONEER RESOURCES LTD (25%) TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/5912	VillaDeste	WA	Granted	36.75% Registered, nil beneficially owned	PIONEER RESOURCES LTD (25%) TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1101	WattleDam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1263	WattleDam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1264	Wattle Dam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1323	Wattle Dam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1338	Wattle Dam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1474	WattleDam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1769	WattleDam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1770	WattleDam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1771	Wattle Dam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1772	Wattle Dam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD

4

Spargoville	M15/1773	WattleDam	WA	Granted	49%Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1774	Wattle Dam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/1775	WattleDam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Spargoville	M15/1776	Wattle Dam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	P15/5953	Logan Dam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUSRESOURCESLTD
Tanami	EL 26625	Suplejack	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27491	HighlandRocks	NT	Granted	15% Registered	TYCHEAN RESOURCES LTD RAMELIUSRESOURCESLTD
Tanami	EL 27806	Talbot North	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27921	Groundrush	NT	Pending	15% beneficially owned	TYCHEAN RESOURCES LTD RAMELIUSRESOURCESLTD
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 owned	TYCHEAN RESOURCES LTD RAMELIUSRESOURCESLTD
Tanami	EL 28493	Groundrush South	NT	Pending	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 29829	Highland Rocks 2	NT	Granted	15% Registered	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD

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, 01/05/13, 01/09/16

Name of entity

Tychean Resources Limited

ABN

Quarter ended (“current quarter”)

40 119 031 864 30 June 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (129) 1	(2) (456) 3
	(128)	(455)

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment
	(b) tenements (see item 10)
	(c) investments
	(d) other non-current assets

• See chapter 19 for defined terms

1 September 2016

Page 1

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- -	353 (21)
	-	332
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	293 (128) - - -	288 (455) - 332 -
	165	165

• See chapter 19 for defined terms 1 September 2016

Page 2

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

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	165 - - -	293 - - -
	165	293
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 - 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		-
		-
7. Payments to related entities of the entity and their associates Current quarter $A'000 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
		Current quarter $A'000
		-
		-

• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	- - - - 74 -
	74

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced
10.2 Interests in mining tenements and petroleum tenements acquired or increased

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

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

==> picture [344 x 59] intentionally omitted <==

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

31 July 2017
Sign here: ......................................... Date: ......................
(Company secretary)
----- End of picture text -----

Print name: Kaitlin Smith........................................

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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5