DREADNOUGHT RESOURCES LTD — Regulatory Filings 2007

Mar 6, 2007

EROMANGA URANIUM LIMITED ACN 119 031 864

AND CONTROLLED ENTITY

INTERIM FINANCIAL REPORT For the half-year ended 31 December 2006

INDEX

Directors Report	2
Auditors Independence Declaration	3
Consolidated Interim Income Statement	4
Consolidated Interim Balance Sheet	5
Consolidated Interim Statement of Changes in Equity	6
Consolidated Interim Cash Flow Statement	7
Condensed Notes to the Consolidated Interim Financial Statements	8
Directors Declaration	10
Indepenent Review Report	11

DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

Your directors submit the interim financial report of the consolidated entity for the half-year ended 31 December 2006

Directors

The names of directors who held office during or since the end of the half-year:

• Mr Robert Michael Kennedy (Chairman)
• Mr Kevin James Lines
• Dr Kevin John Anson Wills
• Mr Ewan John Vickerv
• Mr Adam Bannister (Alternate for E J Vickery)

Review of Operations

Director & Chairman since 29 March 2006 Director since 29 March 2006 Director since 29 March 2006 Director since 29 March 2006 Alternate Director since 22 May 2006

The Eromanga Uranium IPO was completed successfully with the company listing on the ASX on the 31 October 2006. The Directors of the company were very pleased with the broad support for the Eromanga IPO not only from shareholders of Maximus Resources Ltd and Flinders Diamonds Ltd but across the wider investment community. The IPO raised \$14.75 million.

Eromanga initiated exploration with the completion, on 24 December, of a 4000 line/km airborne electromagnetic survey over the entire Marree Project. This survey utilised the new REPTEM system and has provided high quality data for use in the definition of buried palaeodrainages that are potential sites for roll-front style uranium deposits. This data will undergo computer processing/enhancement/modelling before drill targets are selected for testing during the first quarter of 2007. Aboriginal heritage site clearance surveys were completed at Billa Kalina and will allow drilling to commence as soon as a suitable drill rig is available.

The company has established itself in new offices in Norwood SA and has made excellent progress with the recruitment of key personnel and the acquisition of essential items of plant and equipment.

Auditor's Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, Grant Thornton, to provide the directors of Eromanga Uranium Limited with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is made on the following page.

Signed in accordance with a resolution of the directors.

Robert M Kennedv Chairman

Signed at Adelaide this 27 day of February 2007

Grant Thornton ®

AUDITOR'S INDEPENDENCE DECLARATION TO THE DIRECTORS OF EROMANGA URANIUM LIMITED & CONTROLLED ENTITY

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the review of Eromanga Uranium Limited for the half-year ended 31 December 2006. I declare that, to the best of my knowledge and belief, there have been:

• no contraventions of the auditor independence requirements of the Corporations Act $(a)$ 2001 in relation to the audit; and
• no contraventions of any applicable code of professional conduct in relation to the $(b)$ audit.

GRANT THORNTON South Australian Partnership Chartered Accountants

SJGRAY Partner

Signed at Adelaide this 27 day of February 2007

Level 1 67Greenhill Road Wayville SA 5034 GPO Box 1270 Adelaide SA 5001 DX 275 Adelaide T (08) 8372 6666 F (08) 8372 6677 E info@gtsa.com.au W www.grantthomton.com.au

Grant Thornton South Australian Partnership ABN 27 244 906 724

F/IAR/Fromanga Uranium Ltd A LDec 06 LH.doc

As independent South Australian partnership entitled to trade under the name Grant Thornton. Grant Thornton is a trademark owned by Grant Thornton International and used under licence by independent firms and entities throughout the world.

CONSOLIDATED INTERIM INCOME STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	31 December 2006 \$
Revenue	213,638
Marketing expenses Occupancy expenses Administrative expense Finance costs Other expenses	(184, 616) (36, 292) (330, 980) (1,201) (2,946)
Loss before inome tax	(342, 397)
Income tax expense	(287, 601)
Loss for the period attributable to shareholders of the company	(629,998)
Basic earnings / (loss) per share (cents) Diluted earnings / (loss) per share (cents)	(1.12) (1.12)

The income statement is to be read in conjunction with the condensed notes to the consolidated interim financial report.

CONSOLIDATED INTERIM BALANCE SHEET FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	31 December 2006 \$	30 June 2006 \$
CURRENT ASSETS
Cash & cash equivalents	13,646,010	511,100
Trade & other receivables	156,394	8,013
Other current assets		79,399
TOTAL CURRENT ASSETS	13,802,404	598,512
NON-CURRENT ASSETS
Property, plant & equipment	64,479
Exploration & evaluation expenditure	9,804,641
TOTAL NON-CURRENT ASSETS	9,869,120
TOTAL ASSETS	23,671,524	598,512
CURRENT LIABILITIES
Trade & other payables	93,546	49,587
Short-term provisions	1,820
TOTAL CURRENT LIABILITIES	95,366	49,587
TOTAL LIABILITIES	95,366	49,587
NET ASSETS	23,576,158	548,925
EQUITY
Issued capital	23,543,734	581,503
Reserves	695,000
Retained earnings	(662, 576)	(32, 578)
TOTAL EQUITY	23,576,158	548,925

The balance sheet is to be read in conjunction with the condensed notes to the consolidated interim financial report

CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	Issued Capital \$	Share Option Reserve \$	Retained Earnings \$	Total \$
Balance at 1 July 2006	581,503		(32, 578)	548,925
Loss for the period	u.	$\blacksquare$	(629.998)	(629, 998)
Shares issued during the period	23,638,300	$\blacksquare$		23,638,300
Options issued during the period		690,000		690,000
Transaction costs (net of tax)	(676,069)	5.000		(671,069)
Balance at 31 December 2006	23,543,734	695.000	(662.576)	23.576,158

The statement of changes in equity is to be read in conjunction with the condensed notes to the consolidated interim financial report.

CONSOLIDATED INTERIM CASH FLOW STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

	31 December 2006 \$
CASH FLOW FROM OPERATING ACTIVITIES Interest received Payments to suppliers and employees	102,693 (497, 026)
Net cash provided by (used in) operating activities	(394, 333)
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Payment for exploration activities	(64, 783) (247, 587)
Net cash provided by (used in) investing activities	(312, 370)
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Capital Raising Costs	14,758,300 (916, 687)
Net cash provided by (used in) financing activities	13,841,613
Net increase in cash held Cash at beginning of period	13,134,910 511,100
Cash at end of financial period	13,646,010

The cash flow statement is to be read in conjunction with the condensed notes to the consolidated interim financial report

CONDENSED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

NOTE 1 - BASIS OF PREPARATION

Reporting entity

Eromanga Uranium Limited (the "Company") is a company domiciled in Australia. The consolidated interim financial report of the Company as at and for the six months ended 31 December 2006 comprises the Company and its subsidiary (together referred to as the "consolidated entity").

The annual financial report of the entity as at and for the year ended 30 June 2006 is available upon request from the Company's registered office at 62 Beulah Road, Norwood SA or at www.eromangauranium.com.

Statement of compliance

The consolidated interim financial report is a general purpose financial report which has been prepared in accordance with AASB 134: Interim Financial Reporting and the Corporations Act 2001.

The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the annual financial report as at and for the year ended 30 June 2006.

Significant accounting policies

The accounting policies applied by the consolidated entity in this consolidated interim financial report are the same as those applied by the consolidated entity in its consolidated in the financial report as at and for the year ended 30 June 2006.

Incorporation

The company was incorporated on 29 March 2006.

NOTE 2 - SIGNIFICANT EVENTS

On 31 October 2006 the company listed on the Australian Stock Exchange.

During the period the following shares and options were issued:

No. on issue	\$
21,972,003	581,503
80,000	10,000
59,033,200	14.758,300
44.357.143	8,870,000
	(676,069)
125,442,346	23,543,734
18,750,000	5,000
8,035,714	690,000
26,785,714	695,000

CONDENSED NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2006

NOTE 3 - ACQUISITION OF SUBSIDIARY

Pursuant to a contract between the company and Maximus Resources Limited, and with the satisfaction of the conditions within the contract, on 31 October 2006 the company acquired 100% of the issued capital in Eromanga Uranium Resources Pty Ltd from Maximus. Eromanga Uranium Resources Pty Ltd holds interests in Joint Ventures in uranium exploration tenements.

The acquisition had the following effect on the consolidated entity's assets and liabilities:

			Recognised value on acquisition S
Cash
Exploration Assets			9.626.536
Net identifiable assets and liabilities			9,626,537
Consideration paid:
- Ordinary shares at fair value			8.870.000
- Options at fair value			690,000
Transaction costs on acquisition			66,537
Goodwill on acquisition
Purchase Consideration	No. of shares Fair value		S
Ordinary shares	44.357.143	\$0.20	8.870.000
Options	8.035.714	\$0.09	690.000

9,560,000

DIRECTORS' DECLARATION FOR THE HALF YEAR ENDED 31 DECEMBER 2006

The directors of the company declare that:

• $\mathbf{1}$ The financial statements and notes, as set out on pages 4 to 9, are in accordance with the Corporations Act 2001 and:
• Comply with Accounting Standard AASB 134 Interim Financial Reporting and the $(a)$ Corporations Regulations; and
• $(b)$ Give a true and fair view of the consolidated entity's financial position as at 31 December 2006 and of its performance for the half-year ended on that date.
• $2₁$ In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

. . . . . . . . . . . . . . . . . . . .

Robert M Kennedy Director

Signed at Adelaide this 27 day of February 2007

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF EROMANGA URANIUM LIMITED & CONTROLLED ENTITY

Scope

Report on the financial report

We have reviewed the accompanying interim financial report of Eromanga Uranium Ltd and Controlled Entity, which comprises the consolidated interim balance sheet as at 31 December 2006, the income statement, statement of changes in equity, cash flow statement for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes and the directors' declaration.

Directors' responsibility for the Financial Report

The directors' of the company are responsible for the preparation and fair presentation of the interim financial report in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the interim financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors' responsibility

Our responsibility is to express an opinion on the interim financial report based on our review. We conducted our review in accordance with the Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the interim financial report in not presented fairly, in all material respects, in accordance with the Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. As the auditor of Eromanga Uranium Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Level 1 67Greenhill Road Wayville SA 5034 GPO Box 1270 Adelaide SA 5001 DX 275 Adelaide T (08) 8372 6666 $F$ (08) 8372 6677 E info@gtsa.com.au W www.oranthomton.com.au

Grant Thornton South Australian Partnership ABN 27 244 906 724

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of Eromanga Uranium Limited is not in accordance with the Corporations Act 2001, including:

• giving a true and fair view of the consolidated entity's financial position as i. at 31 December 2006 and of its performance for the half-year ended on that date: and
• ii. complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

GRANT THORNTON South Australian Partnership Chartered Accountants

SJ GRAY Partner

Signed at Adelaide this 27 day of February 2007