Dreadnought Resources : First Drilling at Yin Intersects High-Grade Rare Earths

*The measurement of Rare Earth Elements using a pXRF is a method that has been used at Mangaroon and other REE projects in Australia. Performance to OREAS standards demonstrates a strong correlation between pXRF data and certified values. However, pXRF is only a preliminary indication of the expected order of magnitude for final REE analysis. The samples that are the subject of this report will be submitted for laboratory assay and some variation from the pXRF results presented herein should be expected.

16 June 2022

FIRST DRILLING AT YIN INTERSECTS SHALLOW, THICK, HIGH-GRADE RARE EARTHS

HIGHLIGHTS

only	• RC drilling has commenced at the Rare Earth Element ("REE") bearing ironstones and carbonatites prospects
	at the 100% owned Mangaroon Project.
	• Initial drilling of the >2.5km long, outcropping, Yin ironstone (66 holes, ~5,600m) has intersected thick, high-
	grade REE mineralisation in all six of the first drill holes. Significant preliminary pXRF* results from the first
use	line of drilling at Yin include:
• YINRC001: 33m @ 2.5% TREO from 1m, including 10m @ 6.3% TREO from 11m
	• YINRC003: 17m @ 2.2% TREO from 58m, including 9m @ 3.3% TREO from 58m
	• YINRC005: 34m @ 2.9% TREO from 95m, including 20m @ 4.20% TREO from 104m.
	• Drilling is expected to take 3 months to complete with regular updates throughout July to October 2022.
personal	• Samples from these first holes have been dispatched for rush analysis.
Dreadnought Resources Limited ("Dreadnought") is pleased to announce that RC drilling has commenced at the

REE ironstones and carbonatites, within its 100% owned Mangaroon Project in the Gascoyne Region of Western Australia.

Drilling is underway at the Yin REE ironstone where 66 holes for ~5,600m will be drilled. Drilling has intersected multiple ironstones from surface with upwards of 50m of combined mineralisation to a depth of 180m, with mineralisation remaining open at depth and along strike. All samples have been analysed in the field by a handheld pXRF unit indicating the tenor of the REE mineralisation. Samples have been dispatched for rush analysis. Further updates from Yin will be announced as additional drill lines are completed.

Dreadnought's Managing Director, Dean Tuck, commented: "Drilling of the rare earth ironstones at Mangaroon is off to a fantastic start with every hole of the first drill line intersecting significant thicknesses of mineralised ironstone. The intercepts have exceeded expectations and puts Yin on the path to be a significant REE discovery.

		Samples have been rushed for assay and as drilling progresses,
		we will provide additional updates. To achieve this result nearly
For	one year to the day of our first rock chips results at Yin is a
significant accomplishment and a testament to the hard-
		working Dreadnought team and our positive working
		relationships with all stakeholders involved."
		Figure 1: Dreadnought's Luke Blais, Frank Murphy, Matt Crowe and
		Sam Busetti holding the YINRC001 chip trays containing 34m of
		mineralised ironstone from 1m depth.

Dreadnought Resources Limited	www.dreadnoughtresources.com.au
Unit 1, 4 Burgay Court, Osborne Park WA 6017	[e-mail]
PO Box 646, West Perth WA 6872	[phone]

For personal use only

Figure 2: Cross section through Line 7350200 shows drilling has intersected a shallowly-dipping20-40m wide western, and a 10m-wide steeply dipping eastern ferroan-carbonatite that is weathered to an ironstone in the top 80 vertical metres.

Figure 3: Plan view image showing the location of the recently drilled line (red dots) and planned drilling (white dots) in

relation to the >2.5km long Yin outcropping ironstone over an orthoimage.

Dreadnought Resources Limited	www.dreadnoughtresources.com.au
Unit 1, 4 Burgay Court, Osborne Park WA 6017	[e-mail]
PO Box 646, West Perth WA 6872	[phone]

Figure 4: Chip tray from YINRC001 showing mineralised ironstone from 1-34mcontaining 2.5% TREO.

Technical Discussion: YINRC001-YINRC006

onlyYin is a >2.5km long, outcropping, REE bearing ironstone with possible extensions under cover. Yin shows evidence for parallel or stacked ironstone horizons (see figure 2). Rock chips collected in 2021 showed consistent mineralisation over the >2.5km of outcrop with values up to 13.0% TREO and a general trend of the neodymium and praseodymium to TREO ratio ("Nd2O3+Pr6O11:TREO") increasing to the north.

use

personalThe first line of drilling (at YINRC001-006) intersected a 20-30m wide ironstone dyke consisting of goethite and hematite near surface (top ~80m) grading into a fresh ferroan-carbonatite dyke, comprised of ankerite and siderite

below the base of oxidation. The ironstones are surrounded by a zone of fenitised country rock. Both the ironstone and the fenite immediately surrounding the ironstone are mineralised with each ironstone and ferroan-carbonatite containing a central interval of higher-grade mineralisation.

The drilling so far shows two trends of ironstones - a 20-30m-widehigh-grade western dyke that dips at about 40 degrees to the east, and an eastern 10m wide, steeply dipping dyke of moderate grade. Line 7350200 shows the dykes appearing to converge towards each other at depth, and may represent splays from a larger, singular parent

dyke (Figure 2). A similar observation can be seen in plan view, as a singular north-trending ironstone is interpreted

200m north of the current drilling, that appears to split into a western and eastern portion to the south (Figure 3).

Table 1: Significant (>0.5% TREO) preliminary pXRF results from 1m RC sample piles. Intervals with >2% TREO highlighted.

For		Hole ID			From			To			Interval			TREO			Prospect				Hole ID			From			To			Interval			TREO			Prospect
			(m)			(m)			(m)			(%)								(m)			(m)			(m)			(%)
	YINRC001		1			34			33			2.5							YINRC004	60		63		3		0.6
	Incl.			11			21			10			6.3							and	81		98		17		1.3
	YINRC002	23		25		2		0.9							Incl.			90			93			3			2.9
		and	24		55		31		1.2							YINRC005	18		29		11		0.8
		Incl.			29			31			2			4.5			Yin			and	88		90		2		1.3			Yin
		YINRC003	23		25		2		0.9					and			95			129			34			2.9
		and			58			75			17			2.2							Incl.			104			124			20			4.2
		Incl.			58			67			9			3.3							YINRC006	85		104		19		0.9
		YINRC004	3		6		3		0.6							and	139		165		26		1.4
		and	12		13		1		1.5							Incl.			157			164			7			3.0

Dreadnought Resources Limited	www.dreadnoughtresources.com.au
Unit 1, 4 Burgay Court, Osborne Park WA 6017	[e-mail]
PO Box 646, West Perth WA 6872	[phone]

For personal use only

REE ironstones and niobium-bearing veins Mangaroon (E09/2448, E09/2450, E09/2535: DRE 100%)

The Yangibana ironstones are readily accessible and located 5-20kms from the Cobra-Gifford Creek Road. The ironstones were first explored in 1972 for base metals. The REE potential of the ironstones was first assessed in 1985 and has seen substantial work by Hastings Technology Metals Ltd ("Hastings") since 2011 (Figure 10). The ~$450m Hastings (ASX.HAS) controls the Yangibana Ironstone Project and is Dreadnought's immediate neighbour being to the north of the Lyons River Fault.

Yangibana currently has a JORC 2012 Mineral Resource* of 27.42Mt @ 0.97% TREO with 0.33% Nd2O3+Pr6O11 and is under construction and development. The high proportion of Nd2O3+Pr6O11 (used for electric vehicle magnets and renewable power generation) are an important component of Yangibana's economics.

However, prior to Dreadnought, no significant REE exploration was undertaken south of the Lyons River Fault being the point at which the Yangibana REE ironstones were considered to terminate.

Mapping and interpretation of the recently flown magnetic and radiometric survey has highlighted Yin, Y2, Y3 and significant clusters of REE and niobium ironstones. Surface sampling undertaken at the end of 2021, utilising the recent survey, has resulted in the highest-grade rock chip to date (MNRK0529: 39.7% TREO (6.30% Nd2O3+Pr6O11)) from Y3 and the identification and confirmation of high-grade niobium ("Nb2O5") veins at both Y2 and Y3 with significant results including:

• MNRK0528: 15.2% Nb2O5, 21.5% ZrO2

• MNRK0526: 12.9% Nb2O5 and 0.67% TREO

Yin, Y2 and Y3 will be RC drill tested in June-August 2022 with an aim to deliver an initial JORC 2012 Resource.

*HAS.ASX: 5 May 2021 "Yangibana Project updated Measured and Indicated Resource tonnes up by 54%"

Figure 5: Dreadnought's Luke Blais, Dean Tuck and Nick Chapman (L to R) mapping and sampling an outcropping REE ironstone at Yin immediately after it was first identified just over a year ago - June 2021.

Dreadnought Resources Limited	www.dreadnoughtresources.com.au
Unit 1, 4 Burgay Court, Osborne Park WA 6017	[e-mail]
PO Box 646, West Perth WA 6872	[phone]

For personal use only

Current Knowledge on REE at Yin (E09/2448, E09/2450, E09/2535: DRE 100%)

Mineralogy:

Yin, like Yangibana, is unique to REE deposits globally due to the high proportion of neodymium and praseodymium in the total rare earth oxides, with rock chips from Yin containing up to a 48% Nd2O3+Pr6O11 ratio (Nd2O3+Pr6O11 content of the TREO). As shown in the charts below, Nd2O3 and Pr6O11 account for ~90% of the relative value of the REE despite comprising ~31% of the TREO inventory. These charts have been based on the average of all REE ironstone rock chips collected to date across the Yin Camp.

Figures 6 and 7: Two figures showing the average abundance of each REE in all rock chips collected to date

1. and the relative value of each element (R) highlighting Nd2O3+Pr6O11 as the dominate elements of economic importance.

Metallurgy:

One of the key matters to determine with REE projects is the ability to create a commercial product with economically recoverable REE. Dreadnought undertook early metallurgical test work to determine the amenability of the Yin ironstones to produce a commercially treatable monazite concentrate. No test work has yet been undertaken on the recently discovered carbonatite intrusions.

An initial flotation circuit using bulk surface samples from Yin performed well, achieving a recovery of 92.8% at a concentrate grade of 12.3% Nd2O3 and an average 40% TREO.

In addition, powder X-ray diffraction confirmed the type of minerals hosting the REE at Yin to be predominantly monazite. Monazite is well-known to be amendable to commercial processing and as a source of REE at commercial scales.

1Yin values are based on the average of all rock chips containing >0.1% TREO and may not reflect eventual Resource grades.

Dreadnought Resources Limited	www.dreadnoughtresources.com.au
Unit 1, 4 Burgay Court, Osborne Park WA 6017	[e-mail]
PO Box 646, West Perth WA 6872	[phone]