DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2020

Jul 26, 2020

27 July 2020

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30 JUNE 2020 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

The Board of Dreadnought Resources Ltd (ASX:DRE) (“Dreadnought” or “the Company”) is pleased to provide a summary of activities for the quarter ended 30 June 2020. Activities and achievements during the quarter included:

Metzke’s Find: Bedrock gold mineralisation was intersected with significant drill intercepts including:

• MZRC015: 2m @ 12.8 g/t Au from 51m including 1m @ 24.8 g/t Au from 51m

• MZRC016: 8m @ 8.1 g/t Au from 84m including 3m @ 21.0 g.t Au from 85m

• MZRC017: 13m @ 4.2 g/t Au from 48m including 7m @7.5 g/t Au from 51m

• MZRC018: 5m @ 2.4 g/t Au from 71m including 1m @ 11.3 g/t Au from 71m

The mineralised lode remains open along strike and at depth and will be the subject of immediate followup drilling. This area contains targets that are fully permitted and ready for additional RC drilling.

Rocky Dam: A gold-in-soil anomaly was defined and an RC drilling program confirmed thick, shallow oxide mineralisation with significant intercepts including:

• RDRC001: 4m @ 4.1 g/t Au from 62m including 1m @ 13.8 g/t Au from 67m

• RDRC002: 29m @ 0.9 g/t Au from 34m including 9m @ 1.7 g/t Au from 40m

• RDRC006: 20m @ 0.6 g/t Au from 39m including 2m @ 3.0 g/t Au from 39m

• RDRC007: 2m @ 5.9 g/t Au from 95m

Additional RC drilling was undertaken during the quarter with assay results expected in August 2020.

Illaara VMS: During the quarter, a FLEM survey identified multiple discreet and highly conductive EM anomalies associated with outcropping gossans (Bismarck, Rodney, Warspite and Reindler’s) along the Western and Eastern VMS Horizons. Each of these targets was drilled during the quarter. Massive sulphides were intersected at Rodney, Warspite and Reindler’s indicating an active VMS system. The massive sulphides were dominated by pyrite and pyrrhotite returning low tenor base metal values. Dreadnought will next seek further advice from VMS experts to determine an exploration strategy to effectively and efficiently vector into higher tenor mineralisation.

Figure 1: Location of Dreadnought’s projects within Western Australia

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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

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Metzke’s Find (E29/1050) (100%)

Metzke’s Find consists of historic workings which extend over 700m in strike and sit within a 12km long orogenic gold corridor defined by the previous owner, Newmont. Metzke’s Find itself has seen limited exploration in the 1980s and 1990s and, to the extent undertaken, focused on and around the historic workings. No work has taken place along the corridor to the north and south.

In March 2020, results of a 12 hole RC drilling program around the historic workings confirmed bedrock gold mineralisation at Metzke’s Find with significant drill intercepts including:

• MZRC012: 2m @ 6.8 g/t Au from 79m including 1m @ 12.5 g/t Au from 80m

• MZRC010: 4m @ 1.9 g/t Au from 64m including 2m @ 3.1 g.t Au from 64m

During the quarter, an additional 6 RC holes (MZRC013-018) were drilled for an average depth of 95m and ~200m strike distance between the previous significant intercepts. This drilling targeted a bend in the mineralised structure and beneath deeper workings which are considered to have made historical, shallow drilling ineffective. All drill holes intersected the mineralised lode which consists of sugary recrystalised quartz-sulphide veining within a zone of intensely sheared and chlorite, sericite and biotite altered mafic metavolcanics.

Encouragingly, 4 holes from this program, returned high-grade results including:

• MZRC015: 2m @ 12.8 g/t Au from 51m including 1m @ 24.8 g/t Au from 51m

• MZRC016: 8m @ 8.1 g/t Au from 84m including 3m @ 21.0 g/t Au from 85m

• MZRC017: 13m @ 4.2 g/t Au from 48m including 7m @ 7.5 g/t Au from 51m

• MZRC018: 5m @ 2.4 g/t Au from 71m including 1m @ 11.3 g/t Au from 71m

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Figure 2: Long section of Metzke’s Find showing the extent of historic workings and follow up drill targets beneath the deeper workings

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

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Metzke’s Corridor (E29/1050) (100%)

During the quarter, infill soil sampling was undertaken along the 12km Metzke’s Corridor. Results highlighted the Longmore’s Find, Bald Hill and Black Oak prospects as well as the southern extension of the Metzke’s Shear for an additional ~1.2km of strike where it terminates against another northwest trending structure.

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Figure 3: Plan view of Metzke’s Corridor highlighting gold-in-soil anomalies over an image of magnetic intensity and recent drilling at Metzke’s Find shown as small black circles

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

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Illaara Central (E30/471) 100%

To date, Dreadnought has undertaken three ultra-fine fraction soil surveys and drilled two stratigraphic RC holes (IRC009, IRC010 at Illaara Central. These two holes were WA Government Exploration Incentive Scheme co-funded holes.

This work has resulted in multiple gold in soil anomalies with multi-element pathfinder associations and zonation indicative of an intrusion related gold system. The multi-element pathfinder association is comprised of a general SSW to NNE zonation containing high temperature Mo to lower temperature AsSb-Tl with Cs and Li alteration. These gold in soil anomalies are significant in scale and will be geologically mapped to further constrain targets for drill testing in 2020.

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Figure 4: Plan view of Central Illaara highlighting gold in soil anomalies over an image of magnetic intensity

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

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Illaara VMS (E29/965, E30/485) Option to Acquire 100% and (E30/471, E30/476) 100%

Illaara is emerging as part of a highly prospective VMS region, located 50 kms south-east of Cobre Ltd’s (ASX:CBE) highly prospective Perrinvale VMS project.

During the quarter, a FLEM survey identified multiple discreet and highly conductive EM anomalies associated with outcropping gossans (Bismarck, Rodney, Warspite and Reindler’s) along the Western and Eastern VMS Horizons. Each of these targets were drilled during the quarter. Massive sulphides were intersected at Rodney, Warspite and Reindler’s indicating an active VMS system. The massive sulphides were dominated by pyrite and pyrrhotite returning low tenor base metal values. Dreadnought is seeking further advice from VMS experts to determine an exploration strategy to effectively and efficiently vector into higher tenor mineralisation.

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Figure 5: Map of Illaara highlighting the VMS prospects in blue and gold prospects in yellow

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

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Rocky Dam E25/533 (100%)

Rocky Dam currently comprises a single granted tenement and 5 tenement applications covering ~115sq kms around the Yindarlgooda Dome within the Eastern Goldfields. The project is easily accessible, being located only 45kms east of Kalgoorlie and close to significant mining infrastructure and surrounded by active explorers.

Rocky Dam consists of mafic volcanics in the east and felsic-intermediate volcanics and volcaniclastics in the west with exhalative pyritic chert ridges and an unconformable epiclastic basin to the north. Rocky Dam is a favourable setting for gold and base metal rich VMS styles of mineralisation.

During the quarter a gold-in-soil anomaly was defined, confirming historical exploration and an RC drilling program confirmed thick, shallow oxide mineralisation with significant intercepts including:

• RDRC001: 4m @ 4.1 g/t Au from 62m including 1m @ 13.8 g/t Au from 67m

• RDRC002: 29m @ 0.9 g/t Au from 34m including 9m @ 1.7 g/t Au from 40m

• RDRC006: 20m @ 0.6 g/t Au from 39m including 2m @ 3.0 g/t Au from 39m

• RDRC007: 2m @ 5.9 g/t Au from 95m

Additional RC drilling was undertaken with assay results expected in August 2020.

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Figure 6: Cross section through CRA-North showing thick shallow mineralisation in the oxidised bed rock, the interpreted lode dipping off to the west and recently completed follow up RC drilling

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

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COVID19 Impact

Exploration work at Tarraji-Yampi was postponed due to the Kimberley being declared a Biosecurity Area. However, this designation was lifted on 5 June 2020. Approvals are well advanced to make use of the 2020 field season.

During the quarter, field work focused at Illaara and Rocky Dam due to the travel restrictions to the Kimberley.

CORPORATE

Corporate activities during the quarter included:

• Dreadnought was unsuccessful in its application for a Junior Minerals Exploration Incentive tax credit for the year ending 30 June 2021. The program was heavily over-subscribed and allocations limited.

• A capital raising of $500,000 (before costs) from professional and sophisticated investors through the issue of 125M shares at $0.004 per share.

• The Company also issued 40M unlisted options exercisable at $0.006 on or before 25 May 2023. The issue was made in lieu of a 12 month corporate mandate with Shaw and Partners.

• Directors subscribed $70,000 to the placement and, subsequent to the end of the quarter, exercised options for $137,500 bringing their total investment in the company to ~$1m

Appendix 5B Disclosures:

• The Company’s accompanying Appendix 5B (Quarterly Cashflow Report) includes the Executive Director salary (including superannuation) of $3k (Item 6.1) and $41k (Item 6.2) which were apportioned between corporate and exploration work respectively.

• During the period, the Company spent $314,000 on exploration activities in WA. The expenditure represents direct costs associated with the various surveys, drilling programs and associated assays outlined in this report.

• At the end of the quarter, the Company had an amount of $464,000 cash at bank.

ASX Announcements

During the quarter, the Company made 28 ASX announcements, 19 of which were market sensitive. These announcements were as follows:

• 25/06/2020 Drilling Compete at Metzke’s Find 15/06/2020 Drilling Update – Illaara Gold-VMS Project 04/06/2020 Successful EIS Drilling Grant for the Tarraji-Yampi Project 02/06/2020 Thick, Shallow Gold Mineralisation Intersected at Rocky Dam 29/05/2020 RC Drilling Commences at Illaara Gold-VMS Project

• 19/05/2020 Proposed Issue of Securities – DRE 19/05/2020 Proposed Issue of Securities – DRE 19/05/2020 May 2020 Corporate Presentation 19/05/2020 Illaara Gold-VMS Drilling Funded Following $500k Placement 15/05/2020 Trading Halt

• 11/05/2020 RC Drilling Completed at Rocky Dam Gold-VMS Project 05/05/2020 Multiple Gold-In-Soil Anomalies Over 12kms at Metzke’s Find

• 30/04/2020 Quarterly Activities Report 30/04/2020 Quarterly Cashflow Report 30/04/2020 Quarterly Cashflow Report 29/04/2020 Drilling of Significant Gold in Soil Anomaly at Rocky Dam 22/04/2020 Multiple Gold in Soil Anomalies at Central Illaara 15/04/2020 Multiple Conductors at the Illaara Gold-VMS Project 07/04/2020 Significant Gold in Soil Anomaly Rocky Dam Gold Project

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

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UPCOMING NEWSFLOW

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

July: Field trip to Tarraji-Yampi in preparation for 2020 drill activities (details pending) August: Assay results from RC drilling at Rocky Dam

August : Commencement of RC Drilling at Metzke’s Find at Illaara

August: 30 June 2020 JMEI Tax Credit Statements distributed to shareholders

August/September : Commencement of RC Drilling at Longmore’s Find and Black Oak at Illaara September: Assay results from Metzke’s Find at Illaara

September/October: Assay Results from Longmore’s Find and Black Oak at Illaara

~Ends~

For further information please contact: Dean Tuck Jessamyn Lyons Managing Director Company Secretary Dreadnought Resources Limited Dreadnought Resources Limited E:dtuck@dreadnoughtresources.com.au E:jlyons@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. Dean Tuck, who is a Member of the AIG, Managing Director, and shareholder of the Company. Mr. Tuck 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. Tuck 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

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SCHEDULE OF INTERESTS IN MINING TENEMENTS As at 30 June 2020

Tenement	Project	Location	Status	Interest Start ofQuarter	Interest End ofQuarter
E04/2315	Tarraji	Kimberley, WA	Granted	80% 80%1
E04/2508	Yampi	Kimberley, WA	Granted	100% 100%
E04/2557	Yampi	Kimberley, WA	Granted	100% 100%
E04/2572	Yampi	Kimberley, WA	Granted	100% 100%
E04/2608	Yampi	Kimberley, WA	Granted	100% 100%2
E04/2675	Yampi	Kimberley, WA	Application	- -
E04/2676	Yampi	Kimberley, WA	Application	- -
E04/2560	Wombarella	Kimberley, WA	Granted	100% 100%
E04/2573	West Kimberley	Kimberley, WA	Granted	100% 100%
E04/2574	West Kimberley	Kimberley, WA	Application	- -
E80/5363	South Kimberley	Kimberley, WA	Application	- -
E80/5364	South Kimberley	Kimberley, WA	Application	- -
E80/5365	South Kimberley	Kimberley, WA	Application	- -
E80/5366	South Kimberley	Kimberley, WA	Application	- -
E29/957	Illaara	Yilgarn, WA	Granted	100% 100%
E29/959	Illaara	Yilgarn, WA	Granted	100% 100%
E29/965	Illaara	Yilgarn, WA	Granted	0% 0%3
E29/1050	Illaara	Yilgarn, WA	Granted	100% 100%
E30/471	Illaara	Yilgarn, WA	Granted	100% 100%
E30/476	Illaara	Yilgarn, WA	Granted	100% 100%
E30/485	Illaara	Yilgarn, WA	Granted	0% 0%3
E25/533	Rocky Dam	Goldfields, WA	Granted	100% 100%
E25/599	Rocky Dam	Goldfields, WA	Application	- -2
E27/634	Rocky Dam	Goldfields, WA	Application	- -2
E28/2988	Rocky Dam	Goldfields, WA	Application	- -2
E28/2996	Rocky Dam	Goldfields, WA	Application	- -2
E28/2997	Rocky Dam	Goldfields, WA	Application	- -2
E28/3000	Rocky Dam	Goldfields, WA	Application	- -2
E28/3001	Rocky Dam	Goldfields, WA	Application	- -2

1. E04/2315 subject to an 80/20 JV with Whitewater Resources Pty Ltd

2. Applied for during the quarter

3. Subject to an option agreement (ASX Release 6/12/2019 “Consolidation of 75km Long Illaara Greenstone Belt”)

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