DREADNOUGHT RESOURCES LTD — Regulatory Filings 2011

Jul 28, 2011

Appendix 5B

Rule 5.3

Year to date

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

ERO Mining Limited

ABN

40 119 031 864

Quarter ended ("current quarter") 30 June 2011

Current quarter

Consolidated statement of cash flows

Cash flows related to operating activities		\$A'000	(12 months)
1.1	Receipts from product sales and related debtors		\$A'000 207
1.2	Payments for
	(a) exploration & evaluation	(356)	(830)
	(b) development
	(c) production (d) administration		(345)
1.3	Dividends received	(243)	(910)
1.4	Interest and other items of a similar nature
	received	5	16
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)		263
	Net Operating Cash Flows	(594)	(1, 599)
1.8	Cash flows related to investing activities Payment for purchases of:
	(a) prospects
	(b) equity investments
	(c) other fixed assets
1.9	Proceeds from sale of:
	(a) prospects
	(b) equity investments
	(c) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities		75
1.12	Other (provide details if material)
	Net investing cash flows		75
1.13	Total operating and investing cash flows
	(carried forward)	(594)	(1, 524)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(594)	(1,524)
1.14 1.15 1.16 1.17 1.18	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	472	1,282
1.19	Other (provide details if material) Net financing cash flows	472	1,282
	Net increase (decrease) in cash held	(122)	(242)
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	241	361
1.22	Cash at end of quarter	119	119

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 SA'000
1.23	Aggregate amount of payments to the parties included in item 1.2	45
1.24	Aggregate amount of loans to the parties included in item 1.10
$\sim$ $\sim$ $\sim$	.

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

$\overline{\phantom{a}}$

Financing facilities available

⁺ 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 security (see note	Amount paid up per security (see note 3)
7.1	Preference			$3)$ (cents)	(cents)
	*securities (description)
7.2	Changes during
	quarter (a) Increases
	through issues
	(b) Decreases through returns
	of capital, buy-
	backs, redemptions
7.3	*Ordinary
	securities	348,298,731	348,298,731
7.4	Changes during
	quarter (a) Increases	121,508	121,508	\$0.060	\$0.060
	through issues
	(b) Decreases through returns
	of capital, buy- backs
7.5	+ Convertible
	debt securities
7.6	(description) Changes during
	quarter
	(a) Increases through issues
	(b) Decreases
	through securities
	matured,
7.7	converted Options			Exercise price	Expiry date
	(description and	86,824,029	86,824,029	\$0.060	28/09/2012
	conversion factor)	196,250,000 228,000		\$0.050 \$0.220	31/10/2011 20/03/2012
		50,000		\$0.220	19/11/2012
		313,000 441,666		\$0.165	05/03/2013
7.8	Issued during			\$0.028	03/02/2014
	quarter	86,945,537	86,824,029	\$0.060	28/09/2012
7.9	Exercised during quarter	(121, 508)	(121, 508)	\$0.06	28/09/2012
7.10	Expired during quarter	(26, 785, 714)		\$0.30	30/06/2011
7.11	Debentures (totals only)

⁺ 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 $ASK$ (see note 4).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here:

f Munix 1 Company Secretary

Date: 29 July 2011

Print name:

Peter J Kupniewski

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.