DREADNOUGHT RESOURCES LTD — Regulatory Filings 2019

May 6, 2019

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6 May 2019

Mr Alex Sutton Advisor, Listings Compliance ASX Compliance Pty Limited 20 Bridge Street SYDNEY NSW 2000

By email: ListingsComplianceSydney@asx.com.au .

ASX ANNOUNCEMENT

APPENDIX 5B QUERY

We refer to your letter dated 2 May 2019 in relation to Dreadnought Resources Limited’s (ASX:DRE, ‘the Entity’) Appendix 5B.

The Entity responds as follows to your questions:

1. Does DRE expect that it will continue to have negative operating cash flows for the time being and, if not, why not?

Yes. The Entity does not generate income other than interest at present. The Company may contemplate to raise further capital upon satisfactory preliminary exploration results on it newly acquired Yampi/Rocky Dam projects.

2. Has DRE taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Yes. The Entity will contemplate a further capital raise upon satisfactory exploration results. The Entity also retains majority of its placement capacity under listing Rule 7.1 and 7.1A. The entity raise has raised $26,000 in the following quarter to date.

3. Does DRE expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

The Entity believes that it is able to continue its current operations and meet its current business objectives for the reasons outlined in questions 1 and 2. It also notes that the expected forecast exploration expenditure is recorded as its maximum potential outlay. Subject to changes in the program of work and preliminary exploration results, the expenditure exposure may be reduced.

Dreadnought Resources Limited Ground Floor, 70 Hindmarsh Square Adelaide SA 5000 08 8232 8865

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4. Please confirm that DRE is complying with Listing Rule 3.1 and that there is no information about its financial condition that should be given to ASX in accordance with that rule that has not already been released to the market.

The Entity is complying with Listing Rule 3.1. There is no information about its financial condition that should be given to ASX in accordance with that Rule that has not already been released to the market.

5. Please confirm that DRE’s responses to the questions above have been authorised and approved under its published continuous disclosure policy or otherwise by its board or an officer of TYK with delegated authority from the board to respond to ASX on disclosure matters.

The Entity confirms that the responses requested by the ASX and provided above, have been made by an officer of the Entity with delegated authority from the Board to respond to the ASX on disclosure matters.

Yours faithfully

Kaitlin Smith Company Secretary

Dreadnought Resources Limited Ground Floor, 70 Hindmarsh Square Adelaide SA 5000 08 8232 8865

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2 May 2019

Ms Kaitlin Smith Company Secretary Dreadnought Resources Ltd Ground Floor 70 Hindmarsh Square Adelaide SA 5000

By email:

Dear Ms Smith

Dreadnought Resources (‘DRE’): Appendix 5B Query

ASX refers to DRE’s Appendix 5B quarterly report for the period ended 31 March 2019 lodged with ASX Market Announcements Platform on 30 April 2019 (the ‘Appendix 5B’).

ASX notes that DRE has reported:

• negative net operating cash flows for the quarter of $129,000;

• cash at the end of the quarter of $343,000; and

• estimated cash outflows for the next quarter of $285,000.

It is possible to conclude, based on the information in the Appendix 5B that if DRE were to continue to expend cash at the rate indicated by the Appendix 5B, DRE may not have sufficient cash to continue funding its operations.

In view of that, ASX asks DRE to respond separately to each of the following questions and requests for information:

1. Does DRE expect that it will continue to have negative operating cash flows for the time being and, if not, why not?

2. Has DRE taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

3. Does DRE expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

4. Please confirm that DRE is complying with Listing Rule 3.1 and that there is no information about its financial condition that should be given to ASX in accordance with that rule that has not already been released to the market.

5. Please confirm that DRE’s responses to the questions above have been authorised and approved under its published continuous disclosure policy or otherwise by its board or an officer of DRE with delegated authority from the board to respond to ASX on disclosure matters.

When and where to send your response

This request is made under Listing Rule 18.7. Your response is required as soon as reasonably possible and, in any event, by no later than 4:00 PM AEST Monday, 6 May 2019 . If we do not have your response by then, ASX will have no choice but to consider suspending trading in DRE’s securities under Listing Rule 17.3. You should note that if the information requested by this letter is information required to be given to ASX under Listing Rule 3.1 and it does not fall within the exceptions mentioned in Listing Rule 3.1A, DRE’s obligation is to disclose

ASX Customer Service Centre 131 279 | asx.com.au

ASX Limited [[Listings]]

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the information “immediately”. This may require the information to be disclosed before the deadline set out in the previous paragraph.

ASX reserves the right to release a copy of this letter and your response on the ASX Market Announcements Platform under Listing Rule 18.7A. Accordingly, your response should be in a form suitable for release to the market.

Your response should be sent to me by e-mail at ListingsComplianceSydney@asx.com.au . It should not be sent directly to the ASX Market Announcements Office. This is to allow me to review your response to confirm that it is in a form appropriate for release to the market, before it is published on the ASX Market Announcements Platform.

Listing Rule 3.1 and Listing Rule 3.1A

Listing Rule 3.1 requires a listed entity to give ASX immediately any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities. Exceptions to this requirement are set out in Listing Rule 3.1A. In responding to this letter, you should have regard to DRE’s obligations under Listing Rules 3.1 and 3.1A and also to Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B . It should be noted that DRE’s obligation to disclose information under Listing Rule 3.1 is not confined to, nor is it necessarily satisfied by, answering the questions set out in this letter.

Trading halt

If you are unable to respond to this letter by the time specified above, you should discuss with us whether it is appropriate to request a trading halt in DRE’s securities under Listing Rule 17.1. If you wish to request a trading halt, you must tell us:

• the reasons for the trading halt;

• how long you want the trading halt to last;

• the event you expect to happen that will end the trading halt;

• that you are not aware of any reason why the trading halt should not be granted; and

• any other information necessary to inform the market about the trading halt, or that we ask for.

We may require the request for a trading halt to be in writing. The trading halt cannot extend past the commencement of normal trading on the second day after the day on which it is granted.

You can find further information about trading halts in Guidance Note 16 Trading Halts & Voluntary Suspensions .

Enquiries

If you have any queries or concerns about any of the above, please contact me immediately.

Kind regards

Alex Sutton

Compliance Adviser, Geology, Listings Compliance (Sydney)

2/2 ASX Customer Service Centre 131 279 | asx.com.au