Announcement PDF Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au ASX ANNOUNCEMENT 5 February 2025 $4.1M Funding to Advance Mangaroon Gold HIGHLIGHTS • Firm commitments have been received for $3.1M (before costs) at an issue price of $0.01 per share (10% discount to the 10-day VWAP) from sophisticated investors and directors. • Directors have committed to investing $0.22M (subject to shareholder approval) bringing their total cash investment to date over $7.0M. • As announced on 3 February 2025, Dreadnought has also entered into a share purchase agreement with Black Cat Syndicate Ltd (ASX: BC8, “Black Cat”) for $1,000,000 at a share price of $0.01 to secure a first right to negotiate with and agree terms on the development of the Star of Mangaroon (key terms shown later in this announcement). • Dreadnought recently announced a Resource and scoping study for the Star of Mangaroon that includes an initial production target of ~20koz at 10g/t Au delivering robust financials including a maximum cash drawdown of ~$10M at a AISC of $1,800/oz and a post capital and tax operating cashflow of ~$40M at a $4,100/oz gold price increasing to ~$50M at forward gold prices of $4,600/oz (ASX 27 November 2024, 28 January 2025). • Mineralisation at the Star of Mangaroon remains open along strike and depth with significant potential to add ounces on and around Star of Mangaroon. • This is a strong endorsement by Black Cat and a key step towards the development of gold operations at the Star of Mangaroon. • Dreadnought is now funded to deliver its self-funded explorer strategy by bringing the high-grade Star of Mangaroon gold mine into production. The use of funds will be focused on delivering the following: • Remaining mining approvals for the Star of Mangaroon • Adding ounces on the existing mining leases (Star of Mangaroon extensions, Popeye, Pritchard etc) • Fill the discovery pipeline with new targets (Bordah, High Range) • Progressing the REE and Nb Gifford Creek Carbonatite Complex to commercial assessment • RC and diamond drilling of gold targets, including Star of Mangaroon extensions, Popeye and Pritchard’s, to commence in March/April 2025. Dreadnought Resources Ltd (“Dreadnought”) is pleased to announce that firm commitments have been received for a placement to raise $3.1M @ $0.01 per share (before costs) in addition to the $1.0M raised via the subscription agreement with Black Cat Syndicate Ltd to advance the 100% owned Mangaroon Project (“Mangaroon”), in the Gascoyne region of WA. Dreadnought’s Managing Director, Dean Tuck, commented: “Dreadnought is in a great position to capitalize on the Australian gold price surpassing $4,600. That is already $500 more per ounce than considered in the Scoping Study put out just two weeks ago. With funding in place and working closely with Black Cat on the development of the Star of Mangaroon, we can focus on delivering our self-funded strategy by getting the Star of Mangaroon into production, adding minable ounces on our mining leases and filling the discovery pipeline with compelling gold targets. With the rigs spinning from March/April 2025, we look forward to kicking off our year focused on delivering our strategy and transitioning to a self-funded explorer.” Placement Details Firm commitments have been received to raise $3.1m (before costs) via a placement to sophisticated investors and directors. The placement will comprise the issue of 388,000,000 new fully paid ordinary shares at an issue price of $0.01 per share representing a 20% discount to last trade price and a 10% discount to the 10-day VWAP. Completion of the placement is expected to occur on or around 10 February 2025. In addition, 22,000,000 shares are being subscribed for by directors and will be issued subject to shareholder approval to be sought as soon as practicable. As a consequence, directors have increased their total investment to over $7.0m. The placement shares (other than those being issued to directors) have been issued pursuant to the Company’s 10% capacity under Listing Rule 7.1A. The lead manager to the placement was Shaw and Partners. ASX:DRE Dreadnought Resources Ltd 1 Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au Star of Mangaroon Gold Camp (100%, First Right to develop with Black Cat Syndicate) The Star of Mangaroon Gold Camp consists of 5 granted mining leases and 3 exploration leases covering ~130 km2 of the ~4,500km2 Mangaroon Project located ~330km by road from the Paulsens Gold Operation in the Gascoyne Region of WA. The Star of Mangaroon is the largest historical producer of the region and was mined from 1960-1983 and produced a total of 7,464oz @ 34.8 g/t Au. Anecdotal and partially documented evidence suggests that ~2,000oz was produced from Pritchard’s, ~1,000oz was produced from both Two Peaks and the Lead Gold Mine by prospectors. Fractured, small-scale ownership has limited previous gold exploration with only 200-300m of combined strike of the gold camp having been shallowly drilled. This area is a focus for Dreadnought and Black Cat. In July 2024, Dreadnought announced its gold commercialisation strategy and the commencement of good faith discussions with Black Cat. Since then, Dreadnought has delivered on its milestones in transitioning to a self-funded explorer. Key milestones include: • November 2024: initial Resource of 23,300 oz @ 12.8g/t Au (84% Indicated) which remains open at depth and along strike. • January 2025: robust scoping study which shows Operating Cashflow after all Capital of >$40M @ $4,100oz with a max cash drawdown of ~$10M and rising to ~$50M using the forward price of $4,600oz. • February 2025: Subscription agreement with Black Cat to secure a first right to develop the Star of Mangaroon Dreadnought’s focus is now on adding further ounces on the existing mining leases to extend operations and build on the already robust financials. Drilling will be undertaken to extend the Star of Mangaroon open pit and to add mineralisation along strike and at depth. Drilling is also planned at Popeye which intersected 3m @ 22.8 g/t Au from 13m (POPRC001), Pritchard’s and others commencing in March/April 2025. Dreadnought’s objective is to commence open pit mining at Star of Mangaroon in 2025 and process material at Black Cat’s Paulsens processing facility. The agreement with Black Cat is a strong endorsement of the project and a key step towards the development of gold operations at and around the Star of Mangaroon. With this funding now in place Dreadnought is funded to deliver its self-funded explorer strategy by bringing the high-grade Star of Mangaroon gold mine into production. Figure 1: Long Section from Popeye through the Star of Mangaroon showing the location of historic and recent drilling highlighting the lack of drilling along strike and at depth at the Star of Mangaroon. ASX:DRE Dreadnought Resources Ltd 2 Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au Background on Mangaroon (E08/3178, E08/3229, E08/3274, E08/3275, E09/2290, E09/2359, E09/2370, E09/2383, E09/2384, E09/2405, E09/2422, E09/2433, E09/2448, E09/2449, E09/2450, E09/2467, E09/2473, E09/2478, E09/2535, E09/2616, E08/3539, E08/3740, E09/2994, E09/2989, E09/2982, M09/91, M09/146, M09/147, M09/174, M09/175: 100%) Mangaroon (Figure 2) covers >4,500kms2 of the Mangaroon Zone in the Gascoyne Region of Western Australia and is comprised of: • >45km long Money Intrusion (Ni-Cu-Co-PGE): containing high tenor magmatic Ni-Cu-Co-PGE. • Mangaroon Gold Camp (Au, Cu-Zn-Ag): Containing 5 granted mining leases where fractured, small-scale ownership has limited previous gold exploration with only ~200m of the >12km long Mangaroon Shear Zone having been drilled. This area also contains the ~12km x 6km Bordah and ~50km long High Range prospects where limited previous exploration has identified outcropping gold and base metal mineralisation. • ~43km long Yin Ironstone (REE): which already contains: an independent Resource of 20.06Mt @ 1.03% TREO (ASX 5 Jul 2023) over only ~4km of the ~43km of ironstones including an initial Indicated Resource of 5.52Mt @ 1.23% TREO over only ~250m of strike (ASX 5 Jul 2023). • ~17km long Gifford Creek Carbonatites (REE-Nb-Ti-P-Sc): which contains a suite of critical minerals including the Stinger Nb Discovery and an initial independent Inferred Resource of 10.84Mt @ 1.00% TREO at C3 (ASX 28 Aug 2023). Figure 2: Plan view map of Dreadnought’s 100% owned Mangaroon Project: the >45km long Money Intrusion (Ni-Cu-CoPGE); the Mangaroon Gold Camp (Cu-Zn-Ag-Au); Yin Ironstone Complex (REE) and the Gifford Creek Carbonatites (REE-Nb) in relation to major structures, geology and roads. ASX:DRE Dreadnought Resources Ltd 3 Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au Capital Structure Post Placement (including directors and BC8 Subscription Agreement) Quoted Securities Fully Paid Ordinary Shares Options @ $0.065 expiring 14/07/2025 Options @ $0.094 expiring 9/10/2025 Options @ $0.1575 expiring 16/12/2025 Options @ $0.12 expiring 02/03/2026 Options @ $0.075 expiring 14/06/2026 Options @ $0.0225 expiring 29/11/2028 Performance Rights (Class D, E & G) exp 31/12/2025 Performance Rights (Class H & I) exp 31/12/2025 Performance Rights (Class J) exp 31/12/2026 Performance Rights (Class K) exp 31/12/2027 4,181,133,333 Unquoted Securities 6,500,000 6,000,000 853,098 1,223,151 1,979,167 3,771,176 7,837,500 30,200,000 15,100,000 15,100,000 Dreadnought’s planned transition to self-funded explorer Mar 2025 Quarter Jun 2025 Quarter Star of Mangaroon Open Pit Scoping Study Mining, Haul, Process Agreement Additional Resource Drilling Granted Mining Leases including: Star of Mangaroon extensions, Popeye, Pritchard’s, Lead and Two Peaks Gold Exploration Target Generation Bordah and High Range Sep 2025 Quarter Dec 2025 Quarter Approvals and Commencement of Production Target Definition Bordah and High Range Exploration Drilling For further information please refer to previous ASX announcements: • • • • • • • • • • • • 25 November 2020 15 March 2021 17 May 2021 12 September 2022 7 June 2023 13 March 2024 26 July 2024 26 July 2024 1 October 2024 14 October 2024 27 November 2024 28 January 2025 Mangaroon Ni-Cu-PGE & Au Project Exploration Commences at Mangaroon Ni-Cu-PGE & Au Project Update on Mangaroon Ni-Cu-PGE & Au Project Star of Mangaroon Acquisition & Consolidation Mangaroon Gold Review and Further Consolidation Star of Mangaroon Camp Scale Gold Prospect Expands to ~15km x 10km Strategic & Prospective Consolidation Consolidation, Growth & Commercialisation Shallow, High-Grades at Star of Mangaroon & Popeye Exceptional Gold Recoveries from Star of Mangaroon Shallow, High-Grade, 84% Indicated Au Resource Robust Scoping Study for Star of Mangaroon ~Ends~ For further information please contact: Dean Tuck Managing Director Dreadnought Resources Limited E: dtuck@dreres.com.au Jessamyn Lyons Company Secretary Dreadnought Resources Limited E: jlyons@dreres.com.au This announcement is authorised for release to the ASX by the Board of Dreadnought. ASX:DRE Dreadnought Resources Ltd 4 Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au Snapshot – Mangaroon Gold (100%) Mangaroon Gold is 100% Owned by Dreadnought • Mangaroon covers >4,500kms2 with an initial focus on the gold system situated over the Mangaroon Shear Zone between the crustal scale Minga Bar and Edmund Faults with multiple phases of intrusions. Numerous historical workings along the Mangaroon Shear Zone have only seen limited, shallow drilling along ~200m of strike near the Star of Mangaroon mine. This area also contains the ~12km x 6km Bordah and ~50km long High Range prospects where limited previous exploration has identified outcropping gold and base metal mineralisation. Self-Funded Explorer Strategy • Dreadnought’s strategy is to transform into a self-funded explorer. This involves a high-grade open pit at the Star of Mangaroon where funding, development, haulage & processing are outsourced to third parties. This is a common model in WA given the robust gold price. Once successful, extend this model to Popeye, Two Peaks, Lead, Pritchard Well, etc. In this way, there is reduced reliance on market funding and internal cashflows are aimed at making life-changing discoveries. Consolidation Provides for First Ever Modern Exploration • All historical workings and known gold occurrences relate to outcropping mineralisation. There has been minimal historical and modern exploration due to fractured, small-scale ownership with Dreadnought now undertaking modern exploration for the first time. Significant, Step-change, Growth Potential • Five historical mines developed on outcropping mineralisation and dozens of gold occurrences along highly prospective structural corridors. • Dreadnought is deploying modern geochemical and geophysical techniques to explore for mineralisation under shallow cover. These techniques have already generated new prospects with stronger and larger signatures than the historical mines, including the region’s largest high-grade producer at the Star of Mangaroon mine. • Project-wide stream sediment sampling and geophysical surveys have identified additional camp scale prospects at Bordah and High Range. Shallow, High-grade Gold • The Resource contains shallow, high-grade gold as defined in Table 1 below: Table 1: Resource (2g/t Au cut-off grade) - Numbers may not add up due to rounding. Type Transition Fresh Total • Indicated Tonnes 1,900 42,500 44,400 Au (g/t) 26.9 13.0 13.6 Inferred Au (Oz) 1,700 17,800 19,500 Tonnes 12,200 12,200 Au (g/t) 9.8 9.8 Total Au (Oz) 3,900 3,900 Tonnes 1,900 54,700 56,600 Au (g/t) 26.9 12.3 12.8 Au (Oz) 1,700 21,700 23,400 Popeye, located <1km from the Star of Mangaroon, also contains significant shallow high-grade gold intersections including: POPRC001: 3m @ 22.8 g/t Au from 13m POPRC002: 1m @ 1.6 g/t Au, 15.5g/t Ag from 11m Exceptional Metallurgical Recoveries • The region is known for its free gold. Accordingly, metallurgical work at Star of Mangaroon produced exceptional recoveries from standard gravity and carbon in leach circuits averaging 96.7% combined recovery including an average 74.4% gravity recovery (ASX 14 October 2024). ASX:DRE Dreadnought Resources Ltd 5 Unit 1, 4 Burgay Court, Osborne Park, WA 6017 +61 8 9473 8345 info@dreres.com.au www.dreadnoughtresources.com.au Cautionary Statement This announcement and information, opinions or conclusions expressed in the course of this announcement contains forecasts and forward-looking information. Such forecasts, projections and information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially from those expressed or implied. There are a number of risks, both specific to Dreadnought, and of a general nature which may affect the future operating and financial performance of Dreadnought, and the value of an investment in Dreadnought including and not limited to title risk, renewal risk, economic conditions, stock market fluctuations, commodity demand and price movements, timing of access to infrastructure, timing of environmental approvals, regulatory risks, operational risks, reliance on key personnel, reserve estimations, native title risks, cultural heritage risks, foreign currency fluctuations, and mining development, construction and commissioning risk. Competent Person’s Statement – Mineral Resources The information in this announcement that relates to the Star of Mangaroon Mineral Resource is based on information compiled by Mr. Paul Payne, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Payne is a full-time employee of Payne Geological Services Pty Ltd and is a shareholder of Dreadnought Resources Limited. Mr. Payne has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’. Mr. Payne consents to the inclusion in the announcement of the matters based on his information in the form and context that the information appears. Competent Person’s Statement – Exploration Results The information in this announcement that relates to geology, exploration results and planning, and exploration targets 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 announcement 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 further new information or data that materially affects the information included in the original market announcements by Dreadnought Resources Limited referenced in this report and in the case of Mineral Resources and Production Targets, that all material assumptions and technical parameters underpinning the estimates or forward-looking statements in the relevant market announcements continue to apply and have not materially changed. To the extent disclosed above, the Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. RESOURCES SUMMARY Yin Ironstone Complex – Yin, Yin South, Y2, Sabre Measured, Indicated and Inferred Resources Table 2: Summary of Yin Resources at 0.20% TREO Cut-off. Resource Classification Geology Measured Oxide Measured Fresh Measured Subtotal Indicated Oxide Indicated Fresh Indicated Subtotal Inferred Oxide Inferred Fresh Inferred Subtotal Total Oxide Total Fresh TOTAL Resource (Mt) 2.47 2.70 5.17 13.46 7.67 21.13 1.51 2.17 3.68 17.44 12.54 29.98 TREO (%) 1.61 1.09 1.34 1.06 0.95 1.02 0.75 0.75 0.75 1.11 0.95 1.04 Nd2O3+Pr6O11 (kg/t) 4.6 3.0 3.8 3.1 2.8 3.0 1.9 2.1 2.0 3.2 2.7 2.9 NdPr:TREO Ratio (%) 29 27 28 29 29 29 25 28 27 29 29 29 Contained TREO (t) 39,700 29,500 69,300 142,600 72,800 215,400 11,200 16,300 27,600 193,600 118,700 312,300 Contained Nd2O3+Pr6O11 (t) 11,400 8,100 19,500 41,000 21,300 62,300 2,800 4,500 7,300 55,300 33,900 89,300 Gifford Creek Carbonatite – Inferred Resource Table 3: Summary of the Gifford Creek Carbonatite Inferred Resource at various % TREO Cut-offs. Cut-Off (%TREO) 0.90 0.70 0.50 0.30 ASX:DRE Resource (Mt) 5.73 10.84 20.55 45.87 TREO (%) 1.18 1.00 0.80 0.58 NdPr:TREO (%) 21 21 21 21 Nb2O5 (%) 0.25 0.22 0.15 0.10 P2O5 (%) 3.8 3.5 3.0 2.7 TiO2 (%) 5.4 4.9 3.9 3.0 Sc (ppm) 92 85 68 52 Contained TREO (t) 67,500 108,000 164,600 265,300 Contained Nb2O5 (t) 14,500 23,700 31,100 44,800 Dreadnought Resources Ltd 6