CARBINE RESOURCES LIMITED — Capital/Financing Update 2021

Jul 21, 2021

22 July 2021

ASX / MEDIA ANNOUNCEMENT

Carbine Completes Acquisition of the Muchea West Silica Sand Project

HIGHLIGHTS

==> picture [10 x 9] intentionally omitted <==

• Carbine has now completed the 100% acquisition of the Muchea West Silica Sand Project

==> picture [10 x 9] intentionally omitted <==

• Successful raising of $3 million (before costs) at $0.03 per share

• Fully funded for two years of exploration activities at Muchea West Project

• Current cash approximately $5.2 million

==> picture [10 x 9] intentionally omitted <==

• Mapping and drilling has defined a target area of 100km[2] with 82 drill holes returning white sand profiles of greater than 99.0% SiO2 and over 80% returning white sand profiles greater than 99.6% SiO2

==> picture [10 x 9] intentionally omitted <==

• Significant recent drilling results include:

• Hole Aus011: 9m at 99.8% SiO2 from 1m

• Hole Aus013: 9m at 99.8% SiO2 from 1m

• Hole Aus014: 9m at 99.9% SiO2 from 1m

• Hole Aus044: 19m at 99.7% SiO2 from 1m

• Hole Aus068: 15m at 99.6%SiO2 from 5m

==> picture [10 x 9] intentionally omitted <==

• Muchea West Project is located directly to the west of Muchea and only 40km NNE from Perth with excellent infrastructure

• VRX Silica Ltd’s (ASX: VRX) Muchea Silica Sand Project, host to an Indicated Resource of 29Mt at 99.6% SiO2 and Inferred Resource of 179Mt at 99.6% SiO2 for a global resource of 208Mt at 99.5% SiO2[1] , is the northern portion of the Muchea West dune system.

==> picture [10 x 9] intentionally omitted <==

• Applications submitted to Department of Mines for the next phase of drilling designed to enable estimation of a maiden resource

==> picture [10 x 9] intentionally omitted <==

• New team appointed to drive strategy forward with Peter Main as Non-Executive Chairman and Peter Batten as Managing Director

Carbine Resources Limited (ASX: CRB) (the Company ) is pleased to advise that it has now completed the 100% acquisition of the Muchea West Silica Sand Project following its transaction with Australian United Silica Corporation Pty Ltd ( Ausco ) to acquire 100% of the issued capital in Ausco as announced on 1 April 2021 ( Transaction ).

In connection with the Transaction, the Company has successfully raised $3 million (before costs) at an issue price of $0.03 per share pursuant to a public offer under a prospectus and is now fully funded to

1 VRX Silica Ltd, ASX Release, 17 June 2019 “ Muchea Mineral Resource Estimate Upgrade"

ABN 81 122 976 818 Suite 23, 513 Hay Street Subiaco WA 6008 +61 8 6142 0986

admin@carbineresources.com.au www.carbineresources.com.au

for a proposed two year exploration program at the Muchea West Project. Current cash at bank is now approximately $5.2 million.

MUCHEA WEST SILICA SAND PROJECT

The Muchea West Project is located approximately 40km north-northeast of Perth and approximately 500m to the west of Muchea. Direct access from the tenure is via the Brand Highway thence via farm tracks and fence lines. Both the Brand Highway and the Moora-Kwinana Railway provide a direct connection with the Kwinana Bulk Terminal. The Muchea West Project is located directly adjacent to VRX Silica Ltd’s Muchea Project.

The Muchea West Project covers a land area of 102km[2] and consists of a single granted exploration licence, E70/4905.

==> picture [288 x 469] intentionally omitted <==

Figure 1: Project Location Plan

Project Geology

The Project is underlain by the Bassendean Sand Formation, which extends over large areas of the Swan Coastal Plains of the Perth Basin from about 23 km north of Jurien, to about 15km southwest of Busselton. The Bassendean Sand Formation is considered to have a maximum thickness of about 45 m, and the unit is found as a strip parallel to the coast, having a width of about 10-20 km, and its western edge about 5-10km inland. Concretionary ferruginous material, locally known as “coffee rock”, is developed discontinuously in the sand near the groundwater table. In the Tenement, good quality silica sand overlies iron rich brown sand, occasionally interspersed with ferruginous nodules.

The upper units of the Bassendean Sand Formation are typically clean, wellrounded and well sorted sands. At depth, it is commonly brown to dark brown with high iron contents, however closer to the surface the sand is cream/white. The physical, chemical and mineralogical

==> picture [272 x 294] intentionally omitted <==

Figure 2: Project Geological Setting

characteristics of the Bassendean Sands can vary considerably, resulting in variation in the quality of the sand regionally as well as locally. In general, the Bassendean Sand Formation is covered with very little or no overburden.

The region surrounding the Project has been explored for both silica sand and mineral sands.

Recent Exploration Activities

A total of 82 aircore drill holes (78 drill holes to depth of 10m and 4 to depth of 15 to 20m) were drilled at nominal 200m spacing on six drill lines along existing tracks (as shown in Figure 3 below within the Tenement area). Of this total, all holes intersected white sand profiles with silica contents above 99.0% SiO2 and 66 holes returned profiles with silica contents greater than 99.6% SiO2. Results have also returned low levels of impurities (Fe2O3 and Al2O3).

Significant results from drilling include:

• Hole Aus011: 9m at 99.8% SiO2 from 1m

• Hole Aus013: 9m at 99.8% SiO2 from 1m

• Hole Aus014: 9m at 99.9% SiO2 from 1m

• Hole Aus044: 19m at 99.7% SiO2 from 1m

• • Hole Aus068: 15m at 99.6%SiO2 from 5m

The drilling encountered unconsolidated sand and was terminated either at designated depth or the water table. One metre downhole samples were collected at each drilling location. Aircore drill samples are collected in a plastic tub and homogenised, rotary split into one larger sample bag (~3kg) and 2 smaller 250g subsamples. One of the subsamples is prepared for laboratory and the other is retained

for repeat analysis and QA/QC purposes. The bulk sample is retained for later metallurgical test work. The sample splitter and cyclone are cleaned regularly to prevent sample contamination.

The sample assays were carried out to determine the major and trace elements such as SiO2 (%), Fe2O3 (%), Al2O3 (%), CaO (%) MgO (%), K2O(%), TiO2(%) and LOI(%). Major and trace elements in exception to SiO2 were analysed using a four-acid digest followed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry (ICP-OES) analysis. Loss on Ignition (LOI) at 1000[0] C was analysed by Thermal Gravimetric Analyser. SiO2 was back calculated by subtracting all ICP major and trace elements plus LOI from 100%.

==> picture [483 x 342] intentionally omitted <==

Figure 3: Drill Collar Plan

This announcement is approved for release by the Board of the Company.

For further information, please contact:

Peter Batten

Managing Director +61 (8) 6142 0986

COMPETENT PERSON’S STATEMENT

The exploration results in this announcement were reported by the Company in accordance with listing rule 5.7 on 1 April 2021. The Company confirms it is not aware of any new information or data that materially affects the information included in the previous announcement.