DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2018

Jan 30, 2018

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Australian Securities Exchange Announcement

31 January 2018

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

QUARTERLY REPORT

EXPLORATION & CORPORATE HIGHLIGHTS

• Company recapitalisation and Board restructure

• Equity issue to underpin Company’s financial position and enable thorough due diligence of acquisition opportunities

CORPORATE:

Last quarter, Tychean Resources completed a fully underwritten non-renounceable Entitlement Issue raising ~A$385,000. The Company would like to thank all those shareholders and underwriters who participated for their ongoing support.

Concurrent to this recapitalisation, Tychean underwent a Board restructure, as the Company continues to refocus its corporate strategy moving forward. Outgoing Board members Mr Robert Kennedy, Mr Ewan Vickery and Dr Kevin Wills resigned subsequent to the appointment of Mr Duncan Gordon as Non-executive Chairman and Mr Ian Gordon and Mr Paul Payne as Non-executive Directors. The Company wishes to sincerely thank the outgoing Board for their contribution to Tychean.

The incoming Board members all took part in the Company’s recent equity issue and hold the set of skills necessary to allow Tychean to capitalise on value-accretive investment opportunities as they arise without deviating from the Company’s’ core business in the mining and minerals space.

The funds raised through the recent Entitlement Issue have secured the Company’s financial position and enabled the new Board to pursue thorough due diligence on key acquisition targets, which is currently underway.

Tychean is actively progressing discussions with select parties across the minerals sector within Australia in relation to an anticipated acquisition of a new flagship project. The Company will continue to shareholders with updates as material progress is made in this area.

2

CURRENT EXPLORATION ACTIVITIES:

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

Tychean maintain their 15% interest in the Tanami-JV, with venture partner Ramelius Resources (ASX:RMS) where a maiden Aircore drilling programme has been completed at the Highland Rocks ELs totalling 5,780m. Goldrush, Goldrush South and Mount Solitaire EL’s (refer Figure 1) were granted in the previous September quarter however no additional field work was completed to date.

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Figure 1: Tanami Project location – showing all the joint venture tenements now granted

3

SCHEDULE OF INTERESTS IN MINING TENEMENTS

As at 31 December 2017

Project	Tenement	Lease Name	State	Status	% Owned by TYK	Holders
Spargoville	E15/967	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	E15/968	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/128	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	L15/255	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/395	Kambalda West	WA	Granted	100% Registered, nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Spargoville	M15/703	Kambalda West	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	P15/5953	Logan Dam	WA	Granted	49%Registered,nil beneficially owned	TYCHEAN RESOURCES LTD MAXIMUS RESOURCES LTD
Tanami	EL 26625	Suplejack	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27491	Highland Rocks	NT	Granted	15% Registered and Beneficially owned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27806	Talbot North	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27921	Groundrush	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27995	Officer Hills South	NT	Granted	15% Registered and Beneficially owned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 27997	Mount Solitaire	NT	Granted	15%beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 28493	Groundrush South	NT	Granted	15% beneficiallyowned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD
Tanami	EL 29829	Highland Rocks 2	NT	Granted	15% Registered and Beneficially owned	TYCHEAN RESOURCES LTD RAMELIUS RESOURCES LTD

For further information please contact:

Mr. Duncan Gordon Ms. Kaitlin Smith Chairman Company Secretary Tychean Resources Limited Tychean Resources Limited M: 0404 006 444 M: 0430 371 739

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 31 December 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 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	- (103) 1	(1) (177) 1
	(102)	(177)
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 (6 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	485 (15)	485 (15)
	470	470
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	90 (102) - 470	165 (177) - 470
	458	458

• 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)	458 - - -	90 - - -
	458	90

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		5
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

Directors fees of $5,000

7.	Payments to related entities of the entity and their	Current quarter
	associates	$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

• 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	- - - - 111 -
	111

• See chapter 19 for defined terms 1 September 2016

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

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	M15/1448 M15/1449 P15/5912 M15/1101 M15/1263 M15/1264 M15/1323 M15/1338 M15/1474 M15/1769 M15/1770 M15/1771 M15/1772 M15/1773 M15/1774 M15/1775 M15/1776 M15/1475	Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed	44.1% registered Nil beneficial 36.75% registered Nil beneficial 36.75% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial 49% registered Nil beneficial	Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
10.2 Interests in mining tenements and petroleum tenements acquired or increased

• See chapter 19 for defined terms 1 September 2016

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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.

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

Date: ..31/01/2018...................

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

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