DREADNOUGHT RESOURCES LTD — Capital/Financing Update 2021

Apr 11, 2021

Proposed issue of securities

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Announcement Summary

Entity name

DREADNOUGHT RESOURCES LTD

Announcement Type

New announcement

Date of this announcement

Sunday April 11, 2021

The Proposed issue is:

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An offer of securities under a securities purchase plan

Total number of +securities proposed to be issued for an offer of securities under a securities purchase plan

Maximum Number of ASX +security code +Security description +securities to be issued DRE ORDINARY FULLY PAID 27,777,778

+Record date

Friday April 9, 2021

Offer closing date

Friday April 30, 2021

+Issue date

Tuesday May 11, 2021

Refer to next page for full details of the announcement

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Part 1 - Entity and announcement details

1.1 Name of +Entity

DREADNOUGHT RESOURCES LTD

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

Registration Number

ABN 40119031864

1.3 ASX issuer code

DRE

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Sunday April 11, 2021

1.6 The Proposed issue is:

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An offer of +securities under a +securities purchase plan

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Part 4 - Details of proposed offer under securities purchase plan

Part 4A - Conditions

4A.1 - Are any of the following approvals required for the offer of +securities under the +securities purchase plan issue to be unconditional?

+Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 4B - Offer details

Class or classes of +securities that will participate in the proposed issue and class or classes of +securities proposed to be issued

ASX +security code and description

DRE : ORDINARY FULLY PAID

Will the proposed issue of this +security include an offer of attaching +securities? No

Details of +securities proposed to be issued

ASX +security code and description

DRE : ORDINARY FULLY PAID

Maximum total number of those +securities that could be issued if all offers under the +securities purchase plan are accepted 27,777,778

Will the offer be conditional on applications for a minimum number of +securities being received or a minimum amount being raised (i.e. a minimum subscription condition)? No

Will the offer be conditional on applications for a maximum number of +securities being received or a maximum amount being raised (i.e. a maximum subscription condition)? Yes

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Describe the maximum subscription condition $500,000
Will individual security holders be required to accept the offer for
a minimum number or value of +securities (i.e. a minimum
acceptance condition)?
Yes
Is the minimum acceptance unit based or dollar based?
Dollar based ($)
Please enter the minimum acceptance value
$ 500
Will individual security holders be limited to accepting the offer
for a maximum number or value of +securities (i.e. a maximum
acceptance condition)?
Yes
Is the maximum acceptance unit based or dollar based?
Dollar based ($)
Please enter the maximum acceptance value
$ 5,000
Describe all the applicable parcels available for this offer in number of securities or dollar value $500, $1,000, $2,500 and $5,000
Offer price details
Has the offer price been determined?
Yes
In what currency will the offer What is the offer price per
be made? +security?
AUD - Australian Dollar AUD 0.01800
Oversubscription & Scale back details
Will a scale back be applied if the offer is over-subscribed?
Yes
Describe the scale back arrangements The Board reserves the right to reject or scale back any applications in whole or in part. The Company may in its absolute discretion determine to apply the Scale back to the extent and in the manner it sees fit.
Will these +securities rank equally in all respects from their issue date with the existing issued
+securities in that class?
Yes

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Part 4C - Timetable

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4C.1 Date of announcement of +security purchase plan

Monday April 12, 2021

4C.2 +Record date

Friday April 9, 2021

4C.3 Date on which offer documents will be made available to investors

Friday April 16, 2021

4C.4 Offer open date

Friday April 16, 2021

4C.5 Offer closing date

Friday April 30, 2021

4C.6 Announcement of results

Wednesday May 5, 2021

4C.7 +Issue date

Tuesday May 11, 2021

Part 4D - Listing Rule requirements

4D.1 Does the offer under the +securities purchase plan meet all of the requirements of listing rule 7.2 exception 5 or do you have a waiver from those requirements? Yes

Part 4E - Fees and expenses

4E.1 Will there be a lead manager or broker to the proposed offer? No

4E.2 Is the proposed offer to be underwritten? No

4E.3 Will brokers who lodge acceptances or renunciations on behalf of eligible +security holders be paid a handling fee or commission? No

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4E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed offer N/A Part 4F - Further Information 4F.01 The purpose(s) for which the entity intends to use the cash raised by the proposed issue Drilling at Tarraji-Yampi, ongoing target definition at Illaara and Mangaroon Projects and corporate administration and general working capital. 4F.1 Will the entity be changing its dividend/distribution policy if the proposed offer is successful? No 4F.2 Countries in which the entity has +security holders who will not be eligible to accept the proposed offer The offer is only available to residents in Australia and New Zealand. The company also has security holders in Malaysia, Singapore, United Arab Emirates, United Kingdom and United States of America. 4F.3 URL on the entity's website where investors can download information about the proposed offer https://www.dreadnoughtresources.com.au/investors/asx-announcements/ 4F.4 Any other information the entity wishes to provide about the proposed offer N/A

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