DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2020

Jan 28, 2021

29 January 2021

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31 DECEMBER 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 31 December 2020. Activities and achievements during the quarter included:

Metzke’s Find: High-grade gold mineralisation was extended with significant drill intercepts including:

• MZRC028: 1m @ 10.9 g/t Au from 89m • MZRC030: 2m @ 10.8 g/t Au from 102m

Also, during the quarter a follow up extensional RC drilling program and maiden diamond drilling program were undertaken at Metzke’s Find with program assays pending. Encouragingly multiple diamond holes hit visible gold.

Longmore’s Find: High-grade gold, 1m @ 100g/t Au from 56m , was intersected in hole LMRC005 at Longmore’s Find, located ~8kms north of Metzke’s Find. A follow up RC drilling program was undertaken with significant intercepts including:

• LMRC014: 1m @ 5.8 g/t Au from 49m

• LMRC030: 1m @ 5.7 g/t Au from 66m

The RC drilling and preliminary assessment of diamond drill at Longmore’s Find indicates that the veins run sub-parallel to the drill direction and/or is intensely folded.

In addition to RC and Diamond drilling, a first pass target generation soil sampling program was undertaken at Lawrence’s Corridor and regionally across Illaara, covering a number of significant anomalies and the prospective VMS horizon. Results are pending.

Mangaroon Ni-Cu-PGE-Au: Dreadnought consolidated a >4,000 sq km ground position in the Mangaroon Zone of the Gascoyne Region of Western Australia. The Mangaroon Project is host to high-grade gold mineralisation and high-tenor outcropping Ni-Cu-PGE sulphide mineralisation.

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Figure 1: Image of visible gold through a hand lens from MZDD001 hosted within a laminated quartz-sulphide vein.

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 or south.

During the quarter, an 8 hole, 948m RC and 6 hole, 954.8m diamond drilling program was carried out to extend bedrock gold mineralisation at Metzke’s Find. Due to backlogs at the lab, assays are still pending and expected in February 2021.

Encouragingly, a number of visible gold bearing veins were intersected in diamond drilling (Figure 1) with assays also expected in February 2021.

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Figure 2: Long section of Metzke’s Find highlighting extents of current drilling and the target to the north.

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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Longmore’s Find (E29/957) (100%)

During the quarter, 13 RC holes for 999m and a single diamond twin hole (66.4m) were drilled at Longmore’s Find within the ~10km long Metzke’s Corridor. Results included:

• LMRC014: 1m @ 5.8 g/t Au from 49m • LMRC025: 1m @ 5.7 g/t Au from 66m

The drilling at Longmore’s Find was designed to follow up on a previous high-grade drill intercept, testing a ~N-S foliation parallel lode orientation. High-grade results were patchy and showed limited to no correlation between sections. However, lower-grade results clearly define the host mineralised shear zone.

As part of the wider program, a diamond hole was drilled at Longmore’s Find, twinning hole LMRC005 (1m @ 100g/t Au) to obtain structural information and assist with follow up drilling. Near the target depth, the drill core showed multiple quartz-sulphide veins in two main orientations (~N-S and E-W), with the E-W vein not continuing across the core. This indicates that the vein runs sub-parallel to the drill direction and/or is intensely folded which means that the current drill program may have been inconclusive.

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Assay results are pending for the diamond hole. Once received, a follow up drill program will be designed to test the ~E-W lode orientation by rotating the drill rig to a more appropriate angle to adequately test for mineralised lodes. This program is expected to commence in February 2021.

Figure 3: Plan view of Longmore’s Find showing drill collar locations in relation to the extent of historical workings and significant results.

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 (E29/957, E29/959, E29/1050) 100%

During the quarter, first-pass RC fence line drilling was completed (20 holes for 1,620m) at the priority gold-in-soil anomalies to the south and southwest of Metzke’s Find (see Figure 4). This drilling was designed to identify additional shallow high-grade lodes within the Metzke’s Corridor.

At the south-west target, 5 RC fence lines (20 holes for 1,620m, average depth 81m) were drilled across a coherent ~1.5km long gold-in-soil anomaly with associated Bi-W-Te-Cu pathfinder associations along a structural splay off the Metzke’s Shear. Encouragingly, drilling intersected several quartz-sulphide vein sets, including one 10m wide zone, in a series of fine and medium-grained mafic amphibolites.

A further 26 holes for 2,106m (average depth 81m) were drilled as part of 4 fence lines along the ~1.2km long continuation of gold-in-soil anomalism south of Metzke’s Find. This drilling also intersected multiple quartz-sulphide veins in fine and medium-grained, strongly sheared amphibolites as well as significant zones of biotite and epidote alteration, similar to that seen at Metzke’s Find. Results are expected in February 2021.

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Figure 4: Plan view map showing the location of planned drilling (blue dots) around Metzke’s Find

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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Lawrence’s Find Soil Sampling (E30/476: 100%, E30/485: Option to Acquire 100%)

Illaara’s previous owner, Newmont, identified three ~10kms long orogenic gold anomalies at Illaara being Metzke’s Find, Lawrence’s Find and Central Illaara. Dreadnought defined drill targets at these anomalies through ultrafine fraction soil geochemistry. Importantly, Metzke’s Find is only the first of these anomalies to be drilled.

During the quarter, drill target generation work commenced at Lawrence’s Find where historical workings were developed on sugary high-grade quartz sulphide veins in mafic rocks, identical to Metzke’s Find. Located ~45kms south of Metzke’s Find, Lawrence’s Find is potentially another multiple deposit gold camp at Illaara.

First pass, ultrafine soil sampling (at 400x50m) commenced to define drill targets at Lawrence’s Find by March 2021, (see Figure 5). Targets defined at Lawrence’s Find will be drilled along with targets along the Metzke’s Corridor including Black Oak and Bald Hill commencing in the March 2021 quarter.

Regional Soil Sampling (see Figure 5)

In addition to the ultrafine soil sampling around Lawrence’s Find, a first pass regional soils program (at 800x50m or 400x50m) was partially completed across Illaara covering all the Newmont orogenic gold anomalies and prospective areas along the VMS horizons. Sampling will re-commence in January 2021 with results expected from February through April 2021.

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Figure 5: Plan view of Illaara showing the planned soil survey in relation to gold and VMS targets.

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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Mangaroon Ni-Cu-PGE-Au Project (E08/3178, E08/3274, E08/3275, E09/2370, E09/2384, E09/2433, E09/2448, E09/2449, E09/2450, E09/2467, E09/2473, E09/2478: 100%)

The Mangaroon Ni-Cu-PGE-Au project covers >4,000 sq kms of the Mangaroon Zone in the Gascoyne Region of Western Australia. The Mangaroon Zone is host to high-grade gold mineralisation and outcropping Ni-Cu-PGE mineralisation.

During both of Western Australia’s major gold rushes, 1890s and 1930s, this region never received an operating state battery despite pleas from local government and prospectors. As a result, gold was mined but had to be transported to Meekatharra at a high cost thus significantly hampering gold exploration. Despite these handicaps, the region still managed to produce small-scale high-grade gold on the order of multiple ounces to the tonne. During the quarter, high-grade gold was confirmed at Cullen’s Find and Mitchell’s Find which will be the focus of early target definition work during 2021 in accordance with other priorities and as tenements are granted.

During the quarter, high-tenor three phase sulphides with pentlandite, chalcopyrite and pyrrhotite were confirmed from the Money Intrusion. The Money Intrusion has been dated at ~770Ma indicating that it is potentially an early primitive pulse of the Mundine Well Dyke Swarm. The Money intrusion was also confirmed to have a slightly different orientation and magnetic signature to the Mundine Well Swarms. This recognition led to the acquisition of new tenements, covering the entire ~50-60kms of strike of the Money Intrusion. The Money Intrusion will be the focus of target generation and definition work for NiCu-PGEs during 2021 in accordance with other priorities and as tenements are granted.

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Figure 6: Location of the Mangaroon Project in relation to regional projects and infrastructure.

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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- Tarraji Yampi (E04/2315) 80% and (E04/2508) 100%

No work was undertaken during the quarter due to the onset of the Kimberley wet season.

RC and Diamond drilling at the Tarraji-Yampi Project is scheduled to commence from May/June 2021, after the Kimberley wet season, at Texas and Orion Ni-Cu-PGE, Fuso and Paul’s Find Cu-Au and ChiantiRufina targets Cu-Pb-Zn-Ag Targets.

Rocky Dam (E25/533) (100%)

No work was undertaken during the quarter. Rocky Dam is currently under review to determine the next steps forward.

CORPORATE

Corporate activities during the quarter included:

A capital raising of $3,500,000 (before costs) from professional and sophisticated investors through the issue of 125M shares at $0.028 per share.

A total of 41m options were exercised early during the quarter with Directors exercising 11m of these options for $105,000 bringing their total investment in the company to ~$1.2m.

Appendix 5B Disclosures:

The Company’s accompanying Appendix 5B (Quarterly Cashflow Report) includes the Executive Director salary (including superannuation) of $17k (Item 6.1) and $44k (Item 6.2) which were apportioned between corporate and exploration work respectively.

During the period, the Company spent $1.6m 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 $2.6m cash at bank.

ASX Announcements

During the quarter, the Company made 33 ASX announcements, 14 of which were market sensitive. These announcements were as follows:

16/12/2020	Gold Activities Update – Illaara Gold-VMS-Iron Ore Project
30/11/2020	Exploration Update Illaara Gold-VMS-Iron Ore Project
25/11/2020	Mangaroon Ni-Cu-PGE & Au Project
09/11/2020	Drilling Commenced at Longmore’s Find and Metzke’s Find
30/10/2020	Quarterly Cashflow Report
30/10/2020	Quarterly Presentation
30/10/2020	Quarterly Activities Report
22/10/2020	Yilgarn Programs Funded Following Oversubscribed Placement
22/10/2020	Proposed Issue of Securities
20/10/2020	Trading Halt
13/10/2020	100 g/t Au from Maiden Drill Program at Longmore’s Find
12/10/2020	Trading Halt
08/10/2020	Further High-Grade Gold from Metzke’s Find
06/10/2020	Trading Halt

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

January to February 2021: Results from RC and diamond drilling at Illaara

January to February: Ground Sub-Audio Magnetics (“SAM”) survey to be trialled at Metzke’s Find and to the south and southwest of Metzke’s Find, detailed airborne magnetics survey to be flown over Metzke’s and Lawrence’s Corridor

January: Quarterly Activities and Cashflow Report

January to February: Results from target generation using regional soils across Illaara

16-18 February: RIU Explorers Conference, Fremantle WA

February to March: RC and diamond drilling at Illaara (including new drill targets at Longmore’s Find, Black Oak and Bald Hill)

January to May: Target definition and generation at work at Mangaroon Ni-Cu-PGE & Au Project

March: Half year accounts

April: Target generation work, including three FLEM surveys over the Orion Ni-Cu-PGE target at TarrajiYampi

April/May: Commence diamond drilling at Texas Ni-Cu-PGE target at Tarraji-Yampi

May/June: Commence RC drilling at Orion Ni-Cu-PGE, Fuso and Paul’s Find Cu-Au and Chianti-Rufina VMS targets

~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 31 December 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%
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 RockyDam Goldfields,WA Granted 100% 100%
E25/599 RockyDam Goldfields,WA Application - -
E27/611 RockyDam Goldfields,WA Granted 100% 100%
E27/612 RockyDam Goldfields,WA Granted 100% 100%
E27/634 RockyDam Goldfields,WA Application - -
E28/2988 RockyDam Goldfields,WA Application - -
E28/2996 RockyDam Goldfields,WA Application - -
E28/2997 RockyDam Goldfields,WA Application - -
E28/3000 RockyDam Goldfields,WA Application - -
E28/3001 RockyDam Goldfields,WA Application - -
E28/3061 RockyDam Goldfields,WA Application - -
E09/2370 Mangaroon Gascoyne,WA Granted - 100%
E09/2384 Mangaroon Gascoyne,WA Application - -
E09/2433 Mangaroon Gascoyne,WA Application - -
E09/2448 Mangaroon Gascoyne,WA Application - -
E09/2449 Mangaroon Gascoyne,WA Application - -
E09/2450 Mangaroon Gascoyne,WA Application - -
E09/2467 Mangaroon Gascoyne,WA Application -2 -2
E09/2473 Mangaroon Gascoyne,WA Application -2 -2
E09/2478 Mangaroon Gascoyne,WA Application -2 -2
E08/3178 Mangaroon Gascoyne,WA Application - -
E08/3274 Mangaroon Gascoyne,WA Application - -
E08/3275 Mangaroon Gascoyne,WA Application - -

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

2. Acquired during to 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