DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2021

Jun 20, 2021

==> picture [149 x 85] intentionally omitted <==

21 June 2021

DREADNOUGHT TO DIVEST ROCKY DAM GOLD PROJECT

HIGHLIGHTS

• Dreadnought has entered into an agreement to divest the Rocky Dam Gold Project (“Rocky Dam”) to Lycaon Resources Ltd (“Lycaon”), a pre-IPO company that is seeking to list on the ASX in the December 2021 quarter.

• Dreadnought will receive 500,000 Lycaon shares as consideration, plus a 1% net smelter return royalty over all minerals extracted from Rocky Dam.

• Divestment will allow Dreadnought to focus on its Kimberley, Mangaroon and Illaara Projects.

Dreadnought Resources Limited (“ Dreadnought ”) advises that it has entered into an agreement for the divestment of Rocky Dam to Lycaon.

The consideration for the transaction is 500,000 fully paid ordinary shares in Lycaon plus a 1% net smelter return royalty over all minerals extracted from Rocky Dam. The divestment is conditional upon (amongst other things) Lycaon completing its initial public offering and receiving conditional approval from the ASX to list, with completion of the divestment intended to occur immediately prior to Lycaon commencing trading on ASX.

In addition, the divestment of Rocky Dam reduces annual holding costs by ~$150,000 and allows Dreadnought to focus on advancing its core Kimberley, Mangaroon and Illaara Projects. The divestment also maintains Dreadnought’s leverage to Rocky Dam through the Lycaon shares and an ongoing royalty.

Dreadnought’s Managing Director, Dean Tuck, commented: “ Given the scale and potential of our

==> picture [300 x 316] intentionally omitted <==

Kimberley, Mangaroon and Illaara Projects, it was decided to divest Rocky Dam. Lycaon will be able to focus on Rocky Dam while Dreadnought maintains leverage to the upside.”

Background on Rocky Dam

Rocky Dam currently comprises three granted tenement and eight tenement applications covering ~190sq kms around the Kurnalpi Terrane within the Eastern Goldfields.

Figure 1: Location map showing Rocky Dam tenements in relation to Kalgoorlie and gold mining operations.

Dreadnought Resources Limited

www.dreadnoughtresources.com.au info@dreadnoughtresources.com.au

Suite 6, 16 Nicholson Road, Subiaco WA 6008 PO Box 1240, West Perth WA 6872

+61 (0) 428 824 343

==> picture [149 x 85] intentionally omitted <==

For further information please refer to previous ASX announcements:

• 7 April 2020 Significant Gold in Soil Anomaly at Rocky Dam Gold-VMS Project

• • 2 June 2020 Thick, Shallow Gold Mineralisation Intersected at Rocky Dam • 9 July 2020 Drilling Commenced at Rocky Dam

• 15 July 2020 Rocky Dam Drilling Complete and Previous Drilling Upgraded

• 12 August 2020 Rocky Dam Drilling Extends Shallow Oxide Gold

UPCOMING NEWSFLOW

June: Rock chip results from Peggy Sue LCT pegmatite swarm at Illaara

June: Results from target definition and generation work at Mangaroon

June: Commencement of diamond drilling at Texas Ni-Cu-PGE target at Tarraji-Yampi

June: Commencement of RC drilling at Orion Ni-Cu-PGE, Fuso and Paul’s Find Cu-Au and ChiantiRufina VMS targets

June: Commencement of additional FLEM surveys at Orion Ni-Cu-PGE

June/July: Additional rock chip results from REE targets at Mangaroon

July: Quarterly Activities and Cash Flow Report

July/August: Results of drilling at Tarraji-Yampi (Texas and Orion Ni-Cu-PGE, Fuso and Paul’s Find CuAu, and Chianti-Rufina VMS targets).

~Ends~

For further information please contact:

Dean Tuck Jessamyn Lyons Managing Director Company Secretary Dreadnought Resources Limited Dreadnought Resources Limited E:dtuck@dreadnoughtresources.com.au E:jlyons@dreadnoughtresources.com.au

This announcement is authorised for release to the ASX by the Board of Dreadnought.

Competent Person’s Statement

The information in this announcement that relates to geology and exploration results and planning was compiled by Mr. Dean Tuck, who is a Member of the AIG, Managing Director, and shareholder of the Company. Mr. Tuck has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify 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. Tuck consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Person’s findings are presented have not been materially modified from the original reports.

Dreadnought Resources Limited Suite 6, 16 Nicholson Road, Subiaco WA 6008 PO Box 1240, West Perth WA 6872

www.dreadnoughtresources.com.au

info@dreadnoughtresources.com.au

+61 (0) 428 824 343

==> picture [149 x 85] intentionally omitted <==

INVESTMENT HIGHLIGHTS

Kimberley Ni-Cu-Au Projects

Dreadnought controls the second largest land holding in the highly prospective West Kimberley region of WA. The main project area, Tarraji-Yampi, is located only 85kms from Derby and has been locked up as a Defence reserve since 1978.

Tarraji-Yampi presents a rare first mover opportunity with known outcropping mineralisation and historic workings from the early 1900s which have seen no modern exploration.

Three styles of mineralisation occur at Tarraji-Yampi including: volcanogenic massive sulphide (“ VMS ”); Proterozoic Cu-Au (“ IOCG ”); and magmatic sulphide Ni-Cu-PGE. Numerous high priority nickel, copper and gold drill targets have been identified from recent VTEM surveys, historical drilling and surface sampling of outcropping mineralisation.

==> picture [261 x 358] intentionally omitted <==

Illaara Gold, VMS & Iron Ore Project

Illaara is located 190km northwest of Kalgoorlie in the Yilgarn Craton and covers 75kms of strike along the Illaara Greenstone Belt. Illaara is prospective for typical Archean mesothermal lode gold deposits and base metals VMS mineralisation.

Dreadnought has consolidated the Illaara Greenstone Belt mainly through an acquisition from Newmont. Newmont defined several camp-scale targets which were undrilled due to a change in corporate focus. Prior to Newmont, the Illaara Greenstone Belt was predominantly held by iron ore explorers and has seen minimal gold and base metal exploration since the 1990s.

Mangaroon Ni-Cu-PGE, REE & Au Project

Mangaroon is a first mover opportunity covering ~4,500sq kms of tenure located 250kms south-east of Exmouth in the Gascoyne Region of Western Australia. Mangaroon is prospective for magmatic NiCu-PGE, high grade gold and ferrocarbonatite hosted REE.

Rocky Dam Gold & VMS Project

Rocky Dam is located 45kms east of Kalgoorlie in the Eastern Goldfields Superterrane of Western Australia. Rocky Dam is prospective for typical Archean mesothermal lode gold deposits and Cu-Zn VMS mineralisation. Rocky Dam has known gold and VMS occurrences with drill ready gold targets including the recently defined CRA-North Gold Prospect.

Dreadnought Resources Limited Suite 6, 16 Nicholson Road, Subiaco WA 6008 PO Box 1240, West Perth WA 6872

www.dreadnoughtresources.com.au

info@dreadnoughtresources.com.au

+61 (0) 428 824 343