DREADNOUGHT RESOURCES LTD — Regulatory Filings 2014

Jan 19, 2014

Ql JAR $F \in \mathbb{R}^n$ Y REPORT.

Period ending 31 December 2013

KEY EVENTS

• TYK completed an Air Core Reconnaissance Drilling Program at its Valley Floor Prospect (Lake Lefroy) identifying significant supergene horizons.
• TYK completed an extensive Close Spaced Auger Drilling Program at its Fugitive and Déjà vu Prospects (Spargoville) successfully highlighting exciting gold anomalies.
• TYK completed a RAB Drilling Program at its Core Farm; 8500N and Golden Orb East Prospects (Spargoville) intercepting highly anomalous gold values at the Core Farm Prospect (4m @ 22 g/t Au).
• TYK will commence an extensive Air Core Drilling Program beginning Feb 2014 at three high priority targets -Core Farm; Fugitive and Déjà vu.

REVIEW OF OPERATIONS

CORPORATE ACTIVITIES

Tychean Resources Limited's subsidiary, ERO Metals Pty Ltd which holds certain tenements within the Tanami region of the Northern Territory, has changed its name to Tychean Tanami Pty Ltd.

Tychean Resources Limited ACN 119 031 864 | Level 3, 100 Pirie Street Adelaide South Australia 5000 Phone +61 8 7324 3195 | Fax +61 8 8312 5576 | Email info@tycheanresources.com | Web www.tycheanresources.com

$\overline{1}$

EXPLORATION ACTIVITIES

Western Australia

Valley Floor Gold Prospect

Significant supergene horizons have been identified within the reconnaissance Air core drilling completed at the Valley Floor Gold Prospect.

The Company recently (October 2013) completed an Air core drilling programme at the Company's 100% owned Valley Floor Gold Prospect located approximately 10 kms south of the town of Kambalda, on Lake Lefroy, in the Eastern Goldfields of Western Australia.

A total of 54 Air core drill holes were completed for 3,747m at a drill spacing of 80m x 200m. The drilling was completed to test two areas within E15/1249 where structures interpreted from aeromagnetic data cross cut and offset lithologies of the basement Archaean sedimentary sequence, the Merougil Beds. The drilling intersected an average of 60m (maximum 85m) of transported and lake sediment, associated with Lake Lefroy, overlying the Archaean basement. Penetration and subsequent sampling of the Archaean basement was limited to an average of 4m within the drilling, underneath the transported cover. The completed drilling should be treated as a first pass reconnaissance geochemical program completed to determine the level of prospectivity of the Archaean basement underlying Lake Lefroy.

The completed drilling within the southern area of the drilled areas intersected several anomalous intercepts within the Archaean sedimentary basement and will be the focus of further drilling early in the New Year. The anomalous intercepts are interpreted to be associated with supergene dispersion of

Figure 1 Air core drilling at the Valley Floor Gold Prospect.

Figure 2 Drill results from the Valley Floor Gold Prospect.

gold mineralisation along the contact of transported sediments and underlying weathered Archaean basement and/or primary mineralisation within the Archaean basement. More significant supergene horizons have been interpreted within the drilling in the southern drilled area which remains open along strike to the north and south.

For a first pass drilling program on Lake Lefroy, that is comparable to an auger sampling program conducted in areas of outcropping and/or residual material, it is very encouraging to get $>1$ g/t gold results within the Archaean basement. The interpreted significant supergene horizons require further evaluation by Air core drilling in order to further define and extend, prior to potential RC drilling. Follow-up drilling is planned for first quarter 2014.

Fugitive/Déjà vu Gold Prospects

Exciting gold anomalies highlighted by close spaced auger drilling completed at Fugitive and Deja Vu prospects

A total of 1,333 auger samples were collected within the Kambalda West tenements of the Spargoville Project during November 2013. The auger sampling was successful in further defining areas of surface Au anomalism, which are to be targeted with detailed Air core drilling in order to evaluate the potential for high grade Wattle Dam style mineralisation. The majority of the auger sampling was focused on the Deja Vu and Fugitive Prospects at spacings of 20m x 50m where existing surface geochemistry from previous explorers was broader spaced, more erratic and inconsistent, due to being completed over several programs and by different sampling and assaying techniques. Several broader spaced auger lines were also completed in areas where limited, to no, previous surface geochemistry existed.

Results have now been received from the recent auger sampling which has highlighted two coherent zones of >100ppb auger gold anomalism at Deja Vu and Fugitive respectively.

At Deja Vu, a zone of >100ppb gold was identified over approximately 300 metres which trends north-northwest to the north, sub-parallel to geological strike and more southwest to the south, sub-parallel to an interpreted structure crosscutting the area. At the interpreted intersection point of the two trends, a maximum result of 586ppb gold has been received. A coincident zone of demagnitised ultramafic lithologies has been interpreted from aeromagnetic data within the area. Limited drilling has been completed at Deja Vu to date. Further drilling is required to effectively test the auger gold anomalism identified.

The results of the auger drilling from Fugitive have highlighted a coherent zone of >100ppb gold that trends for approximately 750 metres, sub-parallel to geological strike, in a northnorthwest orientation. Two core areas of >250ppb gold are located with the broader >100ppb gold auger anomaly at Fugitive. The northern >250ppb gold zone which extends for 200m and has a maximum result of 430ppb Au from the auger sampling, has been the focus of previous exploration drilling to a drill spacing of 20m x 50m. The completed drilling has identified a discontinuous and discrete >1g/t sub-vertical gold mineralised zone over approximately 350m strike length.

The southern >250ppb gold zone at Fugitive, which extends for 200m and returned a maximum result of 533ppb Au within the auger sampling, has received preliminary evaluation by previous explorers within RAB drilling to a 40m x 100m drill spacing. The completed drilling in the southern gold zone has highlighted a >1g/t gold mineralised zone over 200m (to date) which requires further drilling to close off and/or extend to the north and south. Significant intervals within the mineralised zone include results such as $2m \omega$ 4.3g/t Au from 36m and 1m @ 8.3g/t Au from 32m. A zone of demagnitised mafic/ ultramafic lithologies has been interpreted from aeromagnetic data within the area. Further drilling is required within this zone to infill to a maximum drill spacing of 20m x 50m, in order to gain a better understanding of the mineralisation, in particular the potential for high grade mineralisation.

Several single point >100ppb gold anomalies have also been identified from the auger sampling which are interpreted to be a lower priority than the identified Fugitive and Deja Vu auger gold anomalies

Future exploration at Fugitive and Deja Vu is envisaged to comprise Air core drilling which will target the identified >100ppb Au mineralised zone identified by the completed auger sampling, in areas which require initial or further drill evaluation to evaluate the area for high grade Wattle Dam style mineralisation. It is also envisaged that further auger sampling will be completed between the Fugitive and Deja Vu prospects in order to evaluate the area as existing surface geochemistry is very broad at a grid spacing of 100m x 200m.

Follow-up air core drilling planned for first quarter 2014.

Figure 3 Auger results summary for Fugitive and Déjà vu Prospects.

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Core Farm, Fugitive and Déjà vu Prospects

Highly anomalous gold intercepts of 4m @ 22.0g/t Au from 12m and 8m @ 1.72g/t Au from 24m returned from the Core Farm Prospect.

A recent RAB drilling programme has returned a highly anomalous gold intercept at its Core Farm Prospect: approximately 400m to the northeast of the Wattle Dam Gold Mine at the Company's wholly owned Spargoville Gold Project in the Eastern Goldfields of Western Australia.

A total of 93 RAB drill holes for 4,305 metres were completed during November 2013 in order to infill and extend previous drilling at the Golden Orb East, Core Farm and 8500N Prospects, targeting localised high grade gold mineralisation. similar to that mined at the Wattle Dam Gold Mine.

The drilling predominantly intercepted ultramafic lithologies in contact with intrusive felsic rocks which strike roughly north northwest. Within the drilling, a sequence of transported cover was intersected, of up to 25 metres vertically with a basal sequence comprising quartz rich, sands and gravels.

Composite results have been received from the completed drilling which has returned several significant intercepts, including a highly anomalous result of 4m @ 22.0g/t Au from 12m, from RAB drill hole SPRB0064. This highly anomalous result has been received spanning the contact between the transported sands and gravels and the residual weathered Archaean bedrock. As a result it is unclear at this stage whether the mineralisation is associated with the paleochannel sands and gravels or supergene related along the contact between the transported cover and bedrock or hosted entirely within the bedrock.

Other anomalous results from the drilling includes, 8m @ 1.72g/t Au from 24m to End of Hole [EOH], from RAB drill hole SPRB0056, also from the Core Farm Prospect. This intercept is hosted within the weathered felsic intrusive, adjacent to the western contact with ultramafic lithologies. The intercept is located 50m along strike to the southeast of an historical intercept by ACM Gold of 1m @ 6.2g/t Au from 37m and remains open to the southeast.

A comparison between the density of drilling completed to date and the results returned within the area and that completed and returned from Wattle Dam at a similar level of exploration, highlights the potential for high grade gold mineralisation within the area and supports the case for further exploration drilling.

This is now a High Priority Drill Target that will be the subject of close spaced Air Core Drilling in Q1 2014, along with two other recently defined High Priority Targets at Fugitive and Déjà vu prospects. (ASX Release 4 Dec 2013).

Figure 4 Spargoville Gold Project RAB drilling results summary.

Figure 5 Spargoville Project gold prospects and targets.

Northern Territory

No activity occurred on the Tanami Gold project during the reporting period.

me Haulchan

Joe Houldsworth MANAGING DIRECTOR

For further information please contact:

Mr Joe Houldsworth Managing Director, Tychean Resources Limited on 0487 924 326 or

Investor relations: Mr Duncan Gordon, Executive Director, Adelaide Equity Partners on 0404 006 444

Further information relating to Tychean Resources Ltd and its various exploration projects can be found on its website: www.tycheanresources.com

Compatent Persons Statement

The information contained in this release that relates to exploration results, mineralisation and larget generation. is based on information compiled by Mr Matthew Svensson, who is a Member of the Australasian Institute of Geologists (MAIG) and a consulting geologist to the
Company, Mr. Svensson has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to quality 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 Svensson consents to the inclusion in this release of the matters based on his information in the form and context in which it appears

Disclaimer

This report contains forward looking statements that are subject to risk factors associated with the exploration and mining industry.

It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a variety of variables which could cause actual results or tremots to differ makemally.

Rule 5.3

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Appendix 5B

Mining exploration entity quarterly report

$\mathsf{I}$

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

TYCHEAN RESOURCES LTD

ABN

40 119 031 864

Quarter ended ("current quarter") 31 DECEMBER 2013

Τ

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter \$A'ooo	Year to date (6 months) \$A'ooo
1.1	Receipts from product sales and related debtors	23	55
1, 2,	Payments for (a) exploration & evaluation (b) development (c) production	(379)	(540)
	(d) administration	(271)	(509)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	4	7
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Royalties received	$\boldsymbol{0}$	32
	Net Operating Cash Flows	(623)	(955)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects
	(b) equity investments
(c) other fixed assets Proceeds from sale of: (a) prospects 1.9 (b) equity investments (c) other fixed assets		(0)	(2)
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(0)	(2)
1.13	Total operating and investing cash flows
	(carried forward)	(623)	(957)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought forward)	(623)	(957)
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	2	1,627
1.19	Cost of capital	(49)	(85)
	Net financing cash flows	(47)	1,542
	Net increase (decrease) in cash held	(670)	585
1.20 1.21	Cash at beginning of quarter/year to date Exchange rate adjustments to item 1.20	1,659	404
1.22	Cash at end of quarter	989	989

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'ooo
1.23	Aggregate amount of payments to the parties included in item 1.2	140
1.24	Aggregate amount of loans to the parties included in item 1.10

Explanation necessary for an understanding of the transactions 1.25

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on $2.1$ consolidated assets and liabilities but did not involve cash flows

Details of outlays made by other entities to establish or increase their share in projects in $2,2$ which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

⁺ See chapter 19 for defined terms.

		Amount available sA'ooo	Amount used \$A'ooo
3,1	Loan facilities	-	$\bullet$
7.2	Credit standby arrangements	-

Estimated cash outflows for next quarter

		\$A'ooo
4.1	Exploration and evaluation	295
4.2	Development	-
4.3	Production
4.4	Administration	309
	Total	604

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'ooo	Previous quarter \$A'ooo
5.1	Cash on hand and at bank	989	1,659
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	989	1,659

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
				security (see	Amount paid up per security (see
				note 3) (cents)	$note$ 3) (cents)
	Preference
7.1	+ securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	+Ordinary	1,354,589,736	1,354,589,736
	securities
7.4	Changes during	302,230,107	302,230,107	\$0.003 per share	Fully paid
	quarter
	(a) Increases	321,695	321,695	\$0.006 per share	Fully paid
	through issues
	(b) Decreases
	through returns of capital, buy-
	backs
	*Convertible
7.5	debt
	securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through
	securities
	matured,
	converted
7.7	Options			Exercise price	Expiry date
	(description and	270,532,217	270,532,217	\$0.006	24/09/14
	conversion	441,666	Nil	\$0.028	03/02/14
	factor)
7.8	Issued during	151,115,064	151,115,064	\$0.006	24/09/14
	quarter
7.9	Exercised	321,695	321,695	\$0.006	24/09/14
	during quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)

⁺ See chapter 19 for defined terms.

7.12	Unsecured notes (totals only)

Compliance statement

• $\mathbf{I}$ 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 $\varsigma$ ).
• This statement does give a true and fair view of the matters disclosed. $\overline{2}$

Sign here:

(Dirgetor/Company secretary)

Date: 20 January 2014

Print name: Justin Nelson

Notes

• $\mathbf{I}$ 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.
• The "Nature of interest" (items 6.1 and 6.2) includes options in respect of $\overline{2}$ 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.
• Issued and quoted securities The issue price and amount paid up is not 3 required in items 7.1 and 7.3 for fully paid securities.
• The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of $\overline{4}$ Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.
• Accounting Standards ASX will accept, for example, the use of International 5 Financial Reporting 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.