CARNABY RESOURCES LIMITED — Capital/Financing Update 2020

Oct 11, 2020

ASX Announcement

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12 October 2020

Fast Facts

TICK HILL TAILINGS DAM EXTRACTION PERMIT RECEIVED

Carnaby Resources Limited (ASX: CNB) ( Carnaby or the Company ) is pleased to announce that the amendment to the Tick Hill mining lease permit has been approved for the extraction of the historical tailings dam stockpiles.

Shares on Issue 107M

Market Cap (@ 33 cents) $35.2M

Cash $8.9M[1 ]

1As of 30 June 2020 plus $1.25M received first cash instalment for Tick Hill Tailings Stockpile Sale and $1.5M cash receivable as a result of Tick Hill permit approval (excludes remaining ~$3.25M cash receipts from Tailings Sale & NSR Royalty Agreement, refer ASX release 3 August 2020), Tranche 1 Placement proceeds of $2.65M (Refer ASX release 9 September 2020) and $2M SPP proceeds.

Board and Management

The received permit for the tailings dam will now result in a further $1.5M cash payment being received by Carnaby under the sale agreement with BIM Metals Pty Ltd ( BIM ) (see ASX release 3 August 2020).

Site works by BIM are expected to commence shortly with first ore extraction from the tailings dam stockpile anticipated to occur in late October 2020 which will result in the final upfront cash payment of $1.25M being received. Carnaby also looks forward to receiving additional payments from a 5% net smelter return gold royalty for all gold produced from the stockpiles.

Peter Bowler, Non-Exec Chairman Rob Watkins, Managing Director Greg Barrett, Non-Exec Director Paul Payne, Non-Exec Director Ben Larkin, Company Secretary

Company Highlights

• Proven and highly credentialed management team

• Tight capital structure and strong cash position

• Commencing drilling at the Mallina Basin in the Pilbara of WA

The Company’s Managing Director, Rob Watkins commented:

“We could not be in a better position than we are in right now, having monetised the Tick Hill tailings dam stockpile during record gold prices and being fully funded to aggressively explore and advance our highly prized Strelley and Tick Hill gold targets. We look forward with great anticipation to the results from the drilling programs that will commence over the coming days”

Further information regarding the Company can be found on the Company’s website www.carnabyresources.com.au

For further information please contact: Robert Watkins, Managing Director +61 8 9320 2320

• Projects near to De Grey’s Hemi gold discovery on 254 km[2] of highly prospective tenure

• 100% ownership of the Tick Hill Gold Project (granted ML’s) in Qld, historically one of Australia highest grade and most profitable gold mines

• Past production of 511 koz at 22 g/t gold

• Indicated and Inferred Mineral Resource of 845,000 t @ 2.47 g/t gold for 67,100 ounces[2]

• Proven and Probable Ore Reserves of 459,900 t @ 1.89 g/t gold for 28,000 ounces[2]

• 323 km[2] surrounding exploration package containing numerous gold and copper targets

  • 2Refer ASX release 5 June 2020, to be adjusted following Tailings Sale & NSR Royalty Agreement, refer ASX release 3 August 2020

Registered Office

78 Churchill Avenue Subiaco Western Australia 6008

T: +61 8 9320 2320

www.carnabyresources.com.au

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