24 Nov

Chairmans Address to Shareholders

Dreadnought Resources Limited www.dreadnoughtresources.com.au Suite 6, 16 Nicholson Road, Subiaco WA 6008 info @dreadnoughtresources.com.au PO Box 1240, West Perth WA 6872 +61 (0) 428 824 343 24 November 2021 CHAIRMAN’S ADDRESS TO SHAREHOLDERS Dear Fellow Shareholder, I thought I would use my address this year to reflect on the Dreadnought j ourne y and to perhaps explain how we came to be where we are today. The company was originally listed on the ASX in 2006 under the name Eromanga Uranium Ltd. with >20,000 sq kms of land in S A and the N T . During 2010 the company changed its name to ERO Mining Ltd. and changed its strategy to gold in the Tanami. During 2014 , there was another change of name , this to time to Tychean Resources Ltd with a focus on gold in the Eastern Goldfield s of WA. So, despite having had more names than the Artist Formerly Known As Prince, in February 2019, the company again changed its name ( hopefully for the last time ) to Dreadnought Resources Ltd. Now I think it is fair to say that not everyone loved the name , but it was considered better than IronRinger Resources which the company acquired in 2018 and which is the foundation of Dreadnought today . The military name of D readnought was chosen in recognition of some of our projects being located on Commonwealth Defence ground. I also like to harp on about names because they must mean something to you and in that way become a brand . The original HMS Dreadnought was a man - of war that was built in 1801 and was on the winning team in the 1805 battle of Trafalgar. Contrary to the views of some in the company, I am not actually old enough to have witnessed th at battle . Since 1801 , there have been six other HMS Dreadnoughts . W e focussed on the 1906 HMS Dreadnought which was so revolutionary in design that it became its own class of battleship. Dreadnought also captures both the scale of deposit we are seeking and the innovation being app lied in doing so . Finally, like the original Dreadnought, we like being on the winning team and interestingly, in old English Dreadnought means “fear nothing” . Dreadnought today has 2 . 8 b illion shares on issue and has already gone through a 10:1 consolidation in 2015 . I know some of our shareholders want us to go through a nother consolidation. Some think that shares on issue indicates that we do not care about dilution or that value is created by a consolidation . Th is is simply not true and directors have contributed $ 1 . 3 m to the company and own ~17 % of shares on issue. We are very much aligned with shareholders . Frankly, t here is no clear advantage in going through the cost of a consolidation and often it is to the detriment of shareholders. Large investors and corporates focus on market capitalisation and enterprise value, not number of shares on issue. So , there are no immediate plans for a consolidation. Dreadnought Resources Limited www.dreadnoughtresources.com.au Suite 6, 16 Nicholson Road, Subiaco WA 6008 info @dreadnoughtresources.com.au PO Box 1240, West Perth WA 6872 +61 (0) 428 824 343 I thought I would also talk today a bout some of the philosophies that have contributed to our success so far: - We are not a lifestyle company or if we are, it is a pretty poor lifestyle. Our goal is to make significant equity returns. That is where the real money is for us and hence our shar eholders. - If we go into an area, we want to dominate that area rather than to sit on a postage stamp. No big company is going to come after a postage stamp. So , we want to ensure that we have something that others may want to own someday. - We look to genera te a high level of real news flow. It has been clearly demonstrated that those junior explorers that do well are active and convey regular and meaningful information to investors. - If there is good project to be had , then go for it. If the project is good e nough, the funding will be found. - It does not matter what metal you find, just find metal. Do not be disappointed or embarrassed if you are looking for gold and find rare earths or tantalum or iron ore. We certainly are n o t. - Bring good people on board and remunerate them fairly with plenty of upside to equity success. We have a first - class team and the ir grounding at Dreadnought will see each of them be ing a star in their own right in future years. So , if you put all of this together , you have Dreadnought: - We acquired Illaara because the Kimberley wet season does not facilitate year - round news flow. We wanted a football and cricket season so that investors remain engaged. - We had no funds to acquire Illaara or Mangaroon . N ot an easy decision when you have no money and face criticism for lack ing focus or being distracted. Find some metal, have some success, raise some money, enter First Quantum and suddenly these decisions seem like no brainers. - We disposed of Rocky Dam as we were not in a position to dominate Kalgoorlie. Best left to the Northern Stars and Black Cats of the world. - We were fortunate enough to attract good people despite our li mited resources. To his credit, Dean c a me on board in a difficult time but saw the ground - floor opportunity . Despite our small size we have built a safe, strong and successful organization and culture. Can do , safely and with respect. - Our project s and people are now the envy of many of our peers and also a number of large global entities. Not to get too far ahead of ourselves, I think we are looking at a very exciting year in 202 2 . We have yet again set some lofty goals: - Determine maiden JORC 2 012 Resources for gold at Metzke’s Find, iron ore at the Kings prospect and rare earths at Yin; - D etermine the scale potential of the mineralisation system at Tarraji - Yampi (including Orion, Grant’s Find, Fuso, Texas and Rough Triangle); - A dvance our earlier stage prospects (Nelson base metals VMS, Peggy Sue Lithium - Caesium - Tantalum, Black Oak, Lawrence’s Corridor, CRA Homestead, Mangaroon gold ) ; - A ssess the economics of producing a saleable concentrate from the rare earths at Yin; and - E valua te other opportunities for adding shareholder value. Dreadnought Resources Limited www.dreadnoughtresources.com.au Suite 6, 16 Nicholson Road, Subiaco WA 6008 info @dreadnoughtresources.com.au PO Box 1240, West Perth WA 6872 +61 (0) 428 824 343 In closing, we would like to thank our stakeholders including traditional owners, local communities, employees, joint venture partners, suppliers and other business partners. We also would take this opportunity to thank our fellow shareholders for your ongoing support. In this regard, a special mention to our many friends on Hot Copper. In 2019, 2 comments on an announcement was outstanding. Recently we hit 536 comments and are looking forward to that being bettered in 2022. The team appreciates the guns blazing battleships ; the references to Andre Romelle Young (aka Dr Dre) ; and fun facts like the Kimberley being bigger than 28 countries in the world, Mangaroon 30 countries and Illaara 24 countries . Let’s continue to build a great company and have some fun along the way. Thank you. Paul Chapman Chairman ~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 B oard of Dreadnought.
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