DREADNOUGHT RESOURCES LTD — Regulatory Filings 2007

Apr 29, 2007

aosanaran Damilin

MARITY CONTRACT

PERIOD ENDING 31 MARCH 2007

HIGHLIGHTS

• $\cdot$ Successful completion of over 4000 line/km of airborne EM surveys at the Marree Uranium Project in northern South Australia delineated a previously unknown and unexplored palaeodrainage system.
• This buried river system, located entirely within Eromanga's tenements, has over 100km of deeper channels capable of hosting sandstone hosted (rollfront) uranium deposits.
• Processing of airborne radiometric data identified an area 20km x 10km containing a cluster of six (6) discrete anomalies. This area lies at the margins of the recently discovered Marree Palaeodrainage.
• · Based on exploration results the company has applied for two additional exploration licences covering approximately 1870 sq km immediately to the west of current tenement holdings at Marree.
• As at the 31st March 2007 the company held cash of \$12.803 million.
• $\bullet$ Eromanga is positioned for a very active June Quarter, with major programs of airborne EM at Billa Kalina and Abminga and the commencement of drilling at Billa Kalina and Marree scheduled for May and June 2007.

REVIEW OF OPERATIONS

CORPORATE ACTIVITIES

The March Quarter of 2007 has been very pleasing for the company with the receipt of exciting exploration results at Marree. These results have validated the company's exploration strategy and proven the concept that large scale airborne EM surveys can rapidly, and cost effectively, identify previously undiscovered palaeodrainages with the potential to host uranium deposits. During the quarter the company has also been able to strengthen it's technical team

Eromanga Uranium Limited ACN 119 031 864

62 Beulah Road Norwood South Australia 5067

PO Box 3126 Norwood South Australia 5067

Phone 61 8 8132 7970

Fax 61 8 8132 7999

Email info@eromangauranium.com

web www.eromangauranium.com

with the appointments of Dr Stephen Abbott as Senior Exploration Geologist and Mr Rod Evans as Geological Consultant. These two gentlemen bring excellent skills and experience. (detailed below) to Eromanga and the company is delighted to have been able to acquire their services in a very competitive market.

FINANCE

As at 31st March 2007, Eromanga had available funds of \$12,803 million of which the majority is held in term deposits with an Australian bank. During the December quarter total net expenditure by the company was \$0.447 million.

EXPLORATION ACTIVITIES

MARREE PROJECT

(Eromanga earning 70% under Eromanga Basin JV Agreement with Maximus)

EM SURVEY

The Marree Project covers approximately 4000 sq km of granted tenements immediately to the east of the township of Marree in northern South Australia (Figure 1). During the reporting period Eromanga received the results of the 4000 line/km airborne EM survey completed over the entire granted tenement holding at Marree. This EM survey has defined a previously unknown palaeodrainage system, centred in the Eromanga tenements at Marree (Figure 2). This ancient/buried river system, the "Marree Palaeodrainage", is located in a broadly

Marree Project Area Location Plan

Figure 2 Electromagnetic imaging of the Marree palaeodrainage (approximately 60 metres below surface).

similar area to the modern day Frome River catchment and drains to the west and northwest. However, unlike the modern drainage, the Marree Palaeodrainage is constrained to the west by a major basement fault. Interpretation of the survey data suggests that this fault structure was a major barrier to water flow and caused the development of an ancient swamp or lake system. The company believes this type of palaeo-environment would result in an excellent site for later development of rollfront style uranium mineralisation. Channel development within the deeper portions of the Marree Palaeodrainage totals in excess of 100km and presents the company with an excellent portfolio of targets for future drill testing and supplementary geophysical evaluation. The airborne EM survey has not defined the channel system below a

depth of approximately 75 metres and a critical aspect of early drill testing will be to delineate the base of the ancient drainage system.

AIRBORNE RADIOMETRICS

Eromanga Uranium has completed the reprocessing of airborne radiometric data over the Marree Project. This data was originally acquired, in 1993, as part of the State Government sponsored South Australian Exploration Initiative (SAEI) and covers the entire tenement position at the Marree Project. The SAEI multi-channel radiometric data has been re-processed, using various ratios, to identify areas of anomalous or elevated gamma responses which may be due to the presence of uranium at surface. This work has identified an area approximately 20km x 10km in which six

discrete anomalies (Area A-F) are grouped in close proximity (Figure 3 and 4).

Each of the radiometric anomalies has been inspected in the field in order to validate the anomaly utilising hand-held scintillometers and to determine, where possible, the source of the radiometric response. Whilst each of the six anomalies was confirmed. on-ground the anomalies at Area A and Area B returned the most encouraging insitu gamma responses. At Area A and Area B the scintillometers recorded peak gamma counts of 3,400cps (counts per second) and 3,600cps respectively, against a local background of 100cps. Based on these positive gamma responses thirty two (32) grab/rock-chip samples were collected from in-situ bedrock and were submitted for uranium analysis.

Figure 3 Marree Project - re-processed SAEI multi-channel radiometric image.

Figure 4 Location of the six discrete anomalies including Area A with the re-processed SAEI multichannel radiometric data. (hotter colours indicate greater gamma response)

Analytical results returned a best value of 85ppm uranium (2 samples) with 6 of the 32 samples assaying in excess of 50ppm uranium. These anomalous uranium results, whilst not economic, are important for the Marree Project by confirming the presence of elevated uranium concentrations in bedrock over a substantial area. When considered in conjunction with the recent discovery by the company of the extensive Marree Palaeodrainage these new results continue to support the company's belief that the Marree Project area is an entirely new field with the potential to host economic deposits of uranium.

FUTURE EXPLORATION

Based on the combined results of the airborne EM survey and radiometric analysis the company has applied for two additional exploration licences covering approximately 1870 sq km immediately to the west of the current tenement holding at Marree.

Negotiations with the relevant Traditional Owners at Marree are progressing and drilling of the Marree Palaeodrainage and the new radiometric anomalies will commence as soon as practical after all the necessary clearances are in hand.

BILLA KALINA PROJECT

(Eromanga earning 50% under the Billa Kalina JV with Maximus)

A suitable contractor has been identified to undertake the drilling of two deep (800m) diamond drill holes to test the Billa Kalina Gravity Anomaly. This gravity anomaly is similar to those at Carrapateena and Prominent Hill and is considered prospective for Iron Oxide Copper/Gold/ Uranium style mineralisation. Based on

current estimates from the contractor the drilling should commence at Billa Kalina within the next 4 to 5 weeks. A water bore, required before the diamond drilling can commence will be drilled in the first week of May. All other permits and site preparations have been completed and drilling will commence immediately the drill rig becomes available.

ILLOGWA CREEK PROJECT

(Eromanga earning 70% under Eromanga Basin JV Agreement with Maximus)

During the reporting period the Company has received notification from Central Land Council that a first meeting with the Traditional Owners at Illogwa Creek has been scheduled for the second week of May. Provided that the response from the Traditional Owners at this meeting is positive there will be a requirement for a second meeting and subsequent Heritage Clearances before on-ground exploration can commence.

GENERAL

As discussed above the company is very pleased to have secured the services of Dr Stephen Abbott and Mr Rod Evans. Each of these gentlemen brings skills and experience to Eromanga that will be critical to our ongoing exploration and project generation efforts.

MR ROD EVANS GEOLOGICAL CONSULTANT

Rod is an Adelaide based Geologist with over 30 years of experience in exploration for a wide variety of commodities. Most importantly Rod worked from 1977 to 1982 for Urangesellschaft, the global

German uranium company, culminating with his appointment to the role of Chief Geologist overseeing all of the company's Australian uranium exploration projects. Rod will consult to Eromanga for a minimum of 10 days per month and will initially focus on geological aspects of the Abminga Project.

DR STEPHEN ABBOTT SENIOR EXPLORATION GEOLOGIST

Stephen is a geologist with over 15 years of experience. He holds a PhD (James Cook University) in sedimentary geology with a particular focus on sedimentary basin analysis. Stephen's skills will be essential in deriving maximum understanding of depositional environments and the best sites for uranium deposition across the full portfolio of Eromanga projects.

Eromanga believes that it now has in place an extremely strong technical team with the right balance of direct uranium exploration experience, geophysical capability, and community/environmental awareness.

Mr Kevin Lines MANAGING DIRECTOR

27 April 2007

For further information please contact Kevin Lines on 08 8132 7970 or 0419 801010

Further information relating to Eromanga Uranium Limited and its various exploration projects can be found on the Eromanga website:

www.eromangauranium.com

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Kevin Lines who is a Member of the Australasian Institute of Mining and Metallurgy, and who has sufficient experience relevant to the style of mineralisation, the type of deposit under consideration, and the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore-Reserves (the JORC Code). This report is issued in the form and context in which it appears with the written consent of the Competent Person, who is Managing Director of the Company.

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Eromanga Uranium Limited

ABN

40 119 031 864

Quarter ended ("current quarter")

Year to date (9 months)

\$A'000

31 March 2007

Current quarter

\$A'000

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 and
	evaluation	(447)	(604)
	(b) development
	(c) production (d) administration	(152)	(698)
1.3	Dividends received
1.4	Interest and other items of a similar nature
	received	72	175
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(527)	(1, 127)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects
	$(b)$ equity
	investments
	(c)other fixed
	assets	(218)	(283)
1.9	Proceeds from sale of: (a) prospects
	$(b)$ equity
	investments
	(c) other fixed
1.10	assets Loans to other entities
1.11	Loans repaid by other entities	(98)	(98)
1.12	Other (provide details if material)
	Net investing cash flows	(316)	(381)
1.13	Total operating and investing cash flows
	(carried forward)	(843)	(1,508)

$\div$ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(843)	(1,508)
1.14 1.15 1.16 1.17 1.18 1.19	Cash flows related to financing activities Proceeds from issues of shares, options, etc. Proceeds from sale of forfeited shares Proceeds from borrowings Repayment of borrowings Dividends paid Other (provide details if material)		13,800
	Net financing cash flows		13,800
	Net increase (decrease) in cash held	(843)	12,292
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	13,646	511
1.22	Cash at end of quarter	12,803	12,803

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	-97
1.24	Aggregate amount of loans to the parties included in item 1.10

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• $2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available \$A'000	Amount used \$A'000
-3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

		\$A'000
4.1	Exploration and evaluation
		2,500
4.2	Development
	Total	2,500

Reconciliation of cash

	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.	Current quarter \$A'000	Previous quarter \$A'000
5.1	Cash on hand and at bank	17	37
5.2	Deposits at call	12.786	13.609
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	12,803	13,646

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or increased

⁺ See chapter 19 for defined terms.

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	Amount paid up per
				security (see note 3)	security (see note 3)
				(cents)	(cents)
7.1	Preference
	i securities
	(description)
7.2	Changes during
	quarter (a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	+ Ordinary securities	125,442,346	61,339,203
7.4	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy- backs
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			Exercise price	Expiry date
	conversion	26,785,714		\$0.30	30/6/2011
	factor)	283,000		\$0.22	20/3/2012
7.8	Issued during
	quarter	283,000		\$0.22	20/3/2012
7.9	Exercised during
7.10	quarter Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured
	notes (totals
	only)

$\div$ See chapter 19 for defined terms.

Compliance statement

• $\mathbf{1}$ 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 4).
• $\overline{\mathcal{L}}$ This statement does give a true and fair view of the matters disclosed.

RWCWill

(Director/Company secretary)

Sign here:

Date: 23rd April 2007

Print name:

Richard W C Willson

Notes

• $\mathbf{1}$ 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.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining 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, 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.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting 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.