Star of Mangaroon Shines Brighter with 36% High-Grade Upgrade

Key Concepts

• Star of Mangaroon: A high-grade, derised open-cut resource.
• Drill Program: Focused on adding ounces at the top of the resource in shallow areas.
• Updated Study: Expected in the next couple of weeks, showcasing the impact of shallow ounces on economics.
• Trucking Cost & Mining Cost: Quotes received provide higher confidence in financial numbers.
• Conceptual Underground Study: Investigating the potential of Star of Mangaroon and Mangaroon extensions at depth.
• Exploration Upside: Potential to extend Star at depth and to the north, as well as drilling other targets like Steves, Midday Moon, Midnight Star, Cullins, and Lego.
• RC Drilling Program: A substantial program targeting multiple prospects.
• Approvals: Mining and mine closure plan approvals submitted.
• Production: Expected throughout next year, generating cash.

Focus on Adding Shallow Ounces

The recent drill programs at Star of Mangaroon were strategically designed to increase the number of ounces in the shallower parts of the resource. This approach has a dual benefit:

1. Increased Cash Flow: Adding more ounces directly enhances potential cash flow.
2. Accelerated Profitability: By focusing on shallow ounces, the company aims to bring forward cash flow and profitability, thereby reducing the maximum cash drawdown required for mining operations.

Updated Study and Economic Impact

An updated economic study for Star of Mangaroon is anticipated within the next couple of weeks. This study will highlight the positive influence of the newly identified shallow ounces on the project's already strong economics.

Variables in the Updated Study

The upcoming updated study will incorporate several key variables:

• Impact of Increased and Shallower Ounces: Quantifying the effect of the recent drilling success.
• Updated Costing: Over the past 6-12 months, the company has gathered more precise quotes for trucking and mining costs. These received bids provide a higher level of confidence in the financial projections, ensuring more up-to-date and accurate numbers.
• Updated Resource Numbers: Reflecting the latest drilling results.

Conceptual Underground Study and Future Exploration

In parallel with the updated study, the company is initiating a conceptual underground study. This study will explore the potential of extending the Star of Mangaroon and Mangaroon discoveries at depth. The findings from this conceptual study will inform the strategy for future drilling programs aimed at testing these deeper extensions, with some drill holes already scheduled for the coming weeks. The exploration efforts will also focus on extending mineralization to the north.

Development Timeline and Approvals

With the current resource data available, the updated economic study can be completed. This will facilitate the finalization of commercial discussions and agreements for the development of Star of Mangaroon. Importantly, the company has already submitted all necessary approvals for the mining and mine closure plan. The expectation is to receive all approvals by the end of the current year, paving the way for production to commence throughout the following year and for the project to generate cash during that period.

Exploration Upside Beyond Star of Mangaroon

While Star of Mangaroon is described as a "fantastic high-grade derised open cut resource" expected to generate significant income for Dreadnought, the project offers substantial exploration upside due to its vastly underexplored nature.

• Extensions of Star of Mangaroon: Drilling is underway to extend the Star at depth and to the north.
• Substantial RC Drilling Program: The company is currently engaged in a significant Reverse Circulation (RC) drilling program targeting several other prospects:
  • Steves
  • Midday Moon
  • Midnight Star
  • Cullins
  • Lego

These targets represent some of the first defined through modern exploration efforts and hold the potential for large-scale discoveries. The company expresses significant excitement about the potential impact of such discoveries on the Mangaroon Project.

Conclusion

The Mangaroon Project, particularly the Star of Mangaroon resource, is progressing towards development with a clear strategy to enhance economics through shallow ounce additions and updated costings. The company is concurrently exploring significant upside potential through deeper extensions of existing discoveries and a broad RC drilling program targeting multiple new prospects. With key approvals anticipated by year-end, production and cash generation are projected for the following year, underscoring the project's promising future.