CARNABY RESOURCES LIMITED — Capital/Financing Update 2021

Nov 24, 2021

ASX Announcement 25 November 2021

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EXPLORATION UPDATE

Fast Facts

Shares on Issue 118.1M

10,000m OF DRILLING UNDERWAY AT STRELLEY GOLD AND GREATER DUCHESS COPPER GOLD PROJECTS

Market Cap (@ 24.5 cents) $28.9M Cash $5.6M[1 ]

1As of 31 September 2021

Board and Management

Carnaby Resources Limited (ASX: CNB) ( Carnaby or the Company ) is pleased to provide an exploration update for the 100% owned Strelley Gold Project in the Mallina Basin, Pilbara, WA and the 82.5-100% owned Greater Duchess Copper Gold Project in Mt Isa, Queensland.

Peter Bowler, Non-Exec Chairman Rob Watkins, Managing Director

Greg Barrett, Non-Exec Director & Company Secretary

Paul Payne, Non-Exec Director

Highlights

• 6,000m RC drilling program has commenced at the >4km long Strelley Gold Corridor targeting intrusion hosted “Hemi style” gold mineralisation intersected in the recent RC drilling program (see Table 1).

• The planned drilling includes holes to follow up previously reported intersections from the most recent RC drilling program including:

• 5 m @ 4.83 g/t Au from 110m (PLRC0051)

• 2m @ 5.21 g/t Au from 85m (PLRC0043)

• 10m @ 1.62 g/t Au from 115m (PLRC0035)

• Results from the previous RC program’s final holes received include:

• 5m @ 0.80 g/t Au from 60m (PLRC0055)

• 4m @ 0.55 g/t Au from 165m (PLRC0048)

• 4,000m RC and diamond drilling program will commence imminently at the Greater Duchess Copper Gold Project targeting first pass drill testing of Burke & Wills and Lady Fanny Prospects and direct extensions to Nil Desperandum following up previously reported intersections including:

• 87m @ 0.9 % Cu from 190m (NLRC017)

Company Highlights

• Proven and highly credentialed management team

• Tight capital structure and strong cash position

• Projects near to De Grey’s Hemi gold discovery on 442 km[2] of highly prospective tenure

• Greater Duchess Copper Gold Project, numerous camp scale IOCG deposits over 323 km[2] of 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 207,000 t @ 6.71 g/t gold for 44,600 ounces

• Proven and Probable Ore Reserves of 48,600 t @ 6.53 g/t gold for 10,200 ounces

Including 30m @ 1.8% Cu from 242m

The Company’s Managing Director, Rob Watkins commented:

“We are delighted to have secured drill rigs for the Strelley Gold and Greater Duchess Copper Gold Projects. We will be concurrently drilling both areas through to the end of the year and have very high expectations that both programs will deliver strong pivotal results that will propel Carnaby into the new year with a growing realisation as to the material significance of both gold and copper discoveries.”

Registered Office

78 Churchill Avenue Subiaco Western Australia 6008

T: +61 8 9320 2320

www.carnabyresources.com.au

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STRELLEY GOLD PROJECT (Carnaby 100%)

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Photo of Geologist looking at new RC drill chips and RC drilling underway at Strelley

A 6,000m RC drilling program has commenced at the >4km long Strelley Gold Corridor targeting the newly identified Bastion, Stockade and Alcazar Prospects where significant high grade gold mineralisation was intersected in the most recent RC drilling program (See ASX release 27 October 2021). Results from all drilling have now been received and are summarised in Table 1.

A total of 35 RC holes for a total of 6,000m of drilling is underway (Figure 1).

Drilling will target the >1.4km Bastion Prospect trend and extensions northeast of PLRC0043 where 2m @ 5.21 g/t gold was intersected within the Bastion intrusion in the northern most hole drilled, which remains completely open for over 1km to the north . To the south of PLRC0043 the eastern, potentially mineralised contact of the intrusion, remains untested for over 750m meters to the south. The drilling will also target significant new untested soil gold and pathfinder anomalies northeast of Bastion (Figure 1). The gold soil anomalies show a strong northeast orientation in addition to the main NNE striking regional shears. The northeast orientations may represent important linking structures associated with gold mineralisation and will be tested in the current RC drilling program.

At the Alcazar Prospect drilling will target extensions to high grade gold intersected in a single RC drill traverse which recorded up to 5m @ 4.83 g/t gold from 110m in PLRC0051 hosted within a 200m wide intrusion . The strike potential at Alcazar Prospect has not been tested with RC drilling for over 1.8km along strike from the result in PLRC0051.

At Stockade Prospect, follow up RC drilling will target broad zones of gold mineralisation interested in PLRC0035 of up to 10m @ 1.62 g/t gold from 115m.

Results from the remaining 8 RC holes from the previous 22 RC hole drilling program have all been received with new results summarised in Table 1 and new intercepts shown on Figure 1.

The recently completed RC drilling program was highly successful, intersecting high grade gold mineralisation at 3 locations along the > 4km long Strelley Gold Corridor which all remain

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wide open and are currently being followed up in the new RC drilling program, which has just commenced.

Significantly, the high-grade gold results from Bastion, Alcazar and Stockade are all from first pass deeper RC drilling beneath shallow aircore drilling that only tagged anomalous gold results mostly in the bottom of holes. The magnitude of the gold discovery along the >4km Strelley Gold Corridor, beneath the shallow aircore drilling, is only just emerging.

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Figure 1. Strelley Gold Corridor Plan showing location of planned RC holes (Green

squares) and gold soil anomaly image.

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DUCHESS COPPER GOLD PROJECT (Carnaby 82.5 - 100%)

A universal drilling rig has been secured to re-commence RC and diamond at the Greater Duchess Copper Gold project commencing in the last week of November. A total of 27 holes for 4,000m of drilling is planned targeting extensions of mineralisation at Nil Desperandum and first pass drill testing of the Burke & Wills and Lady Fanny Prospects (Figure 2 & 3).

NIL DESPERANDUM (CARNABY 82.5%)

At Nil Desperandum drilling will target the direct extension of the main southwest plunging lode that remains open from a previous exceptional result of 87m @ 0.9% copper including 30m @ 1.8% copper. Directly down plunge the NLIP4 chargeability anomaly will also be tested in the planned drilling program (Figure 2). The deepest drill hole to date is interpreted to have pierced the lower grade southeast margin of the high grade shoot recording a result of 48.2m @ 0.6% copper including 11.1m @ 1.4% copper (Figure 2).

Shallow up plunge extensions to the northeast of Nil Desperandum will also be tested as well as first pass drilling of other IP anomalies in the immediate vicinity of Nil Desperandum.

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Figure 2. Plan of Nil Desperandum Showing location of planned RC / diamond holes.

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LADY FANNY (CARNABY 100%) and BURKE & WILLS (CARNABY 82.5%) PROSPECTS

At Burke & Wills and Lady Fanny Prospects , 3km north of Nil Desperandum, first pass shallow RC drilling will be completed targeting directly beneath the significant historical workings and open pits (Figure 3).

At the Lady Fanny Prospect , RC drilling will target directly beneath 400m of continuous high grade copper gold mineralisation outcropping in shallow historical open pits where significant high grade, true width channel results up to 5m @ 2.7 % copper and 1.2m @ 9.0% copper have been recorded (See ASX release 25 October 2021).

At the Burke & Wills Prospect , RC drilling will target direct extensions under the 200m of continuous workings where the first RC hole drilled recorded 4m @ 2.3% copper from 36m.

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Figure 3. Plan of Lady Fanny and Burke & Wills Prospects showing planned RC holes.

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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

Competent Person Statement

The information in this document that relates to exploration results is based upon information compiled by Mr Robert Watkins. Mr Watkins is a Director of the Company and a Member of the AUSIMM. Mr Watkins consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears. Mr Watkins has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which is undertaken to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code).

Disclaimer

References may have been made in this announcement to certain ASX announcements, including references regarding exploration results, mineral resources and ore reserves. For full details, refer to said announcement on said date. The Company is not aware of any new information or data that materially affects this information. Other than as specified in this announcement and the mentioned announcements, the Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, Exploration Target(s) or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Previously released ASX Material References that relates to announcement include:

Strelley Gold Corridor Extended to Over 4km Strike, 27 October 2021

Greater Duchess Copper Gold Project Grows, 25 October 2021

Strelley Gold Project Interim Exploration Update, 15 October 2021

Mineralisation Extended Greater Duchess Copper-Gold Project, 16 September 2021 Significant Intrusion Hosted Gold Discovery 5m @ 8.55gt Gold, 8 September 2021 60m @ 1% copper at Greater Duchess, 13 August 2021

Further Broad Zones of Copper Sulphides at Greater Duchess, 22 July 2021

Greater Duchess Copper Project Continues to Grow, 5 July 2021

Outstanding Drill Results at Nil Desperandum, 24 June 2021

Quality Results At Mt Birnie, Sulphides Hit Nil Desperandum, 10 June 2021 Bastion Intrusion Extended to 1.4 km Strike, 28 May 2021

Nil Desperandum Strong IP Conductors, 7 May 2021

Intrusion Hosted Gold up to 3.2 g/t Intersected at Strelley, 5 May 2021 8,000m Drilling Program Commenced at Strelley, 4 March 2021 Greater Duchess Copper Gold Project Update, 17 February 2021 Compelling Strelley and Tick Hill Drill Results, 27 January 2021 Key Land Access Agreement Signed at Strelley, 23 December 2020 First Aircore Results Define Anomaly, 14 December 2020

Outstanding Historical Gold Drill Results at Strelley, 22 July 2020

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Spectacular Historical Drill Results – 11m @ 7.1% Cu, 11 June 2019

Tick Hill Key Target Area Update, 16 May 2019

Acquisition of Tick Hill Gold Project, Past Production 511koz @ 22.5g/t Gold, New Board Appointments, 12 March 2019

Table 1. Strelley RC Drill Results

Prospect	Hole ID	Easting	Northing	Azimuth	Dip	Depth From	Interval	Au (g/t)	Comments
Bastion	PLRC0027*	712655	7738873	122.1	-60.7				NSI
Bastion	PLRC0028*	712718	7738835	122.7	-59.5	85 146	5 1	0.90 3.57	5m Comp
Bastion	PLRC0029	712785	7738883	122.76	-60.62	120 Incl 125	6 1	0.25 0.50
Bastion	PLRC0030*	712885	7739073	120.5	-59.7	65 135	5 5	0.21 0.39	5m Comp 5mComp
Bastion	PLRC0032	712819	7738958	119.9	-60.29				NSI
Stockade	PLRC0033	712663	7738330	122.11	-61.08				NSI
Stockade	PLRC0034	712879	7738198	125.56	-60.99				NSI
Stockade	PLRC0035*	712613	7737726	152.63	-60.64	85 105 115	5 5 10	0.59 0.45 1.62	5m Comp 5m Comp 5mComp
Stockade	PLRC0036*	712642	7737668	150.12	-60.59				NSI
Stockade	PLRC0037	712883	7737681	122.12	-61.26				NSI
Bastion	PLRC0038*	713046	7738094	122.4	-61.3	30	5	0.14	5m Composite
Bastion	PLRC0041*	713444	7739489	120.5	-60.2	84	1	0.27
						87	1	0.27	BOH
Bastion	PLRC0042*	713384	7739525	122.3	-61.2	130	5	0.17	5m Composite
Bastion	PLRC0043*	713165	7739649	120.4	-61.2	85 Incl 85 130	2 1 4	5.21 9.75 0.50	Screen Fire Assay Screen Fire Assay
Bastion	PLRC0046*	713036	7739353	121.1	-61.5	163 176 187	2 1 2	0.30 0.55 0.38	1m Split 1m Split 1mSplit
Bastion	PLRC0048	712960	7739214	123.09	-60.91	165 Incl 167 180	4 1 5	0.55 1.68 0.37	Hole ended in wide intrusion and did not test contact
Alcazar	PLRC0049	711824	7736124	118.51	-61.63				NSI
Alcazar	PLRC0050*	712085	7735964	119.65	-60.45	50 60	5 5	0.11 0.17	5m Comp 5m Comp
Alcazar	PLRC0051*	711922	7736069	120.54	-60.43	110 125	5 5	4.83 0.34	5m Comp 5mComp
Alcazar	PLRC0053*	712022	7736009	120.15	-61.02				NSI
Bastion	PLRC0054*	712685	7738730	119.6	-60.4	70 92 Incl 92 130	5 4 1 5	0.35 0.53 1.46 0.54	5m Comp 1m Split 1m Split 5mCompBOH
Bastion	PLRC0055	712849	7738941	121.59	-60.94	60	5	0.8	5m Comp

• Previously reported result

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Section 1. Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	• Strelley Aircore samples were collected using a cyclone with a 1- 2kg scoop sub-sample taken from either individual metre intervals or over composite intervals of 2-10m. Where the composite result exceeded 50ppb, the individual 1m samples composing the composite were scoop sampled and submitted for analysis. • Strelley RC samples were collected via an adjustable cone splitter mounted below the cyclone. A 2-3kg sample was collected from each 1m interval. The remainder of the sample for each 1m interval was collected in a green plastic bag. Composite samples were collected from the green bags using a spear tube over a 5m interval. Where the composite result exceeded 50ppb, the 1m cone split samples comprising the interval were collected for analysis. • Strelley Diamond samples were collected from half cut core with the left side of the orientation line sampled. 1m sample intervals were taken with smaller intervals also taken within the mineralised zones. • Samples from aircore and RC (5m composites) were pulverised to obtain a 25g charge for aqua regia digest and ICP-MS analysis of Gold at trace level. The end of hole sample of every air core hole at Strelley was analysed for full-suite multi-elements using aqua regia digest and an ICP-MS finish at trace level in addition to gold. All 1m resampling of composite intervals at Strelley were pulverised to obtain a 50g charge and analysed using Fire Assay with an AAS finish at Ore Grade detection levels. • Diamond core at Strelley was pulverised to obtain a 30g charge and analysed using fire assay with an AAS finish to a detection limit of 0.01ppm Au. Soils Samples • Soil samples collected by Carnaby Staff. Involved the removal of 10cm of surface material and the collection of soil at the “B Horizon”. Approximately 1kg of soil was sieved to collect -2mm grain size fraction. Approximately 200g of the sieved soil was collected in soil geochemistry packets for analysis at the lab. • Sample submitted to Labwest for Ultrafine + method developed bythe CSIRO for exploration of blind deposits
Drilling techniques	• Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• Aircore drilling was undertaken by Bostech Drilling using a 3.5” aircore blade bit. A hammer bit was used in selected bottom of holes and to penetrate occasional resistive units in the weathered horizon. • RC drilling was undertaken by Ranger drilling and Mt Magnet using a 5.5” face sampling bit. • Diamond Drilling was undertaken by Seismic Drilling Services. Coring from surface was conducted using a HQ bit in the weathered zone before reducing to NQ2 size in fresh rock. Two holes were completed as NQ2 diamond tails from the bottom of existingRC holes.

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Criteria	JORC Code explanation	Commentary
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• For the diamond drilling both drilled and recovered metres were recorded for each drill run. Core recoveries of around 97% were recorded. • RC samples were dry and with high recoveries. The cone splitter was set to achieve an approximate 2-3 kg of sub sample for every metre drilled. • Aircore samples were recovered dry and with consistent high sample recovery observed in the field.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	• Historical logging was completed by geologists and is at a level sufficient to generate maps, plans and sections found in company reports. • All recent core and chips were logged with Maxgeo Logchief software and uploaded to the company hosted Maxgeo database. Logging recorded lithology, structure, veining, alteration, mineralisation and weathering. All core was orientated and structural measurements recorded. Core is photographed after mark up and prior to cutting. Soil Samples • Soils samples were logged in the field with respect to the regolith type and landform features.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material beingsampled.	• HQ & NQ2 drill core was half cut with core from the non-marked side of the orientation line taken for analysis. The majority of intervals of half cut core were 1m. • For RC samples, all individual samples were collected using a cone splitter mounted beneath the cyclone to collect a 2-3kg sample. RC composite samples >1m were sampled using a 50mm spear/tube from inside the bulk green bag sample. The sample collect was dry. • Aircore samples are scoop sampled from the ground shortly after leaving the cyclone. Samples collected are in the 1-2kg range. • The sample size collected is considered appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Air core and RC samples from Strelley were analysed at ALS in Perth using a 25g aqua regia digest and an ICP-MS finish for trace level gold. Carnaby selected standards of various levels were inserted at approximately every 50th sample and blanks at the start or every hole. 1m resamples of composite samples exceeding 50ppb will be sent to ALS Perth for analysis using a 50g charge and fire assay with an AAS finish at ore grade detection levels. For hole PLRC043, 1m samples in the 85-87m range were analysed using screen fire assay on a 1kg sample screened to 100um. A duplicate 30g assay was undertaken on screen undersize and the entire oversize fraction was assayed. • Diamond samples from Strelley were analysed at ALS in Perth using a 30g fire assay with an AAS finish to a detection limit of 0.01ppm Au. Carnaby selected standards were inserted at every 50th sample. • Acceptable levels of accuracy and precision have been established.

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Criteria	JORC Code explanation	Commentary
		Soil Samples • The Ultrafine + method developed by the CSIRO for exploration of blind deposits was considered an appropriate method for detecting gold and base metals given the shallow transported cover most of the Malmac project. • No standards were used in the reporting of results.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss anyadjustment to assaydata.	• At the prospect scale the quality of the Strelley data is currently considered acceptable for exploration purposes. Further investigation and validation will be undertaken as work programs progress.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Grid systems used for Strelley was MGA94/50. • Current RC holes were downhole surveyed by Reflex True North seeking gyro. • Soil Location points were collected using a Garmin handheld GPS with an accuracy of +/-3m.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Reconnaissance aircore and RAB drilling was completed at 640m x 80m spacing, closed up to 320m x 40 m. Minimum infill aircore hole spacing on some lines is 20m. RC drilling hole spacing on drill lines is typically around 100m. • Soil sampling was undertaken on lines spaced at 160m x 40m at Bastion Prospect and mostly 320m x 80m spacing at Big Hill Prospect.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• The southern half of the project containing the Tabba Tabba Shear strikes approximately NNE and is considered to be well tested with EW drill and soil sample lines. In the northern half of the project where the Tabba Tabba Shear bends to a NE orientation coincident with a NE fault, the orientation of the historical soil sampling and drill traverses is considered to be at a non-optimal orientation. • New aircore and RC drill lines at Strelley have been orientated perpendicular to the interpreted strike of the major shear zones to reduce any potential sampling bias of the zones being reported. • Measurements of orientated core at Strelley has determined the key structural orientations which will assist with future planning of drill holes.
Sample security	• The measures taken to ensure sample security.	• Drill samples for Strelley were dispatched by Carnaby staff directly to the transport company depot in Port Hedland for transport to ALS labs in Perth. • Soil and rock chip samples were transported from the field to the lab byCarnabyStaff.
Audits or reviews	• The results of any audits or reviews of samplingtechniques and data.	• No external audits or reviews have been undertaken of the recent samplingtechniques and data.

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Section 2. Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section).

Criteria	Explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• ELA45/5614 is an exploration licence application owned 100% by Carnaby Resources Ltd. • E45/4638 is a granted exploration license which is being transferred from Lithium Power WA Holdings Pty Ltd (LPWA) to Carnaby Resources Ltd as part of an agreement whereby LPWA’s parent, Lithium Power International Ltd retains certain mineral rights relating to Lithium minerals. Carnaby own 100% of the gold rights on the tenement and are liable for a 1% NSR royalty. Heritage surveys and plan of works have been completed on the tenement. • E45/4801 is a granted exploration license which is being transferred from Lawla Resources Pty Ltd to Carnaby Resources Ltd. Carnaby Resources own 100% of the mineral rights and are liable for a 1% NSR royalty. Heritage surveys have been completed.
Acknowledgment and appraisal of exploration by otherparties.	• Acknowledgment and appraisal of exploration by other parties.	• Shaw River Manganese Limited completed the original gold exploration on the tenement delineating several gold anomalies in soils and drilling.
Geology	• Deposit type, geological setting and style of mineralisation.	• The Strelley project is located in the northern part of the Archean Pilbara Craton. The tenement is located within the Mallina basin group greenstone and intrusives on the district scale Tabba Tabba Shear zone which hosts significant gold mineralisation to the SW within De Greys Mining Ltd’s tenure. The recent discovery of the intrusion related Hemi gold discovery by De Grey Mining Ltd has generated significant new interest in the Mallina Basin. Within the Strelley project late intrusive rocks equivalent in age to the Hemi gold discovery are present. Gold mineralisation intersected in the Strelley project to date is associated with silicification andquartz veining.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• Included in report. Refer to the report and Table 1.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated	• Strelley aircore intercepts were calculated using a lower cutoff of 0.05g/t and no internal dilution. Strelley RC significant intercepts were calculated using a lower cutoff of 0.10g/t and a maximum of 3m of internal dilution. Diamond core significant mineralised envelopes were calculated using a 0.1g/t lower cutoff and included internal dilution.

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Criteria	Explanation	Commentary
	and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	• All drill intercepts have been reported as downhole lengths and not enough information is present to know the true widths of these intersections.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• See the body of the announcement.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• The exploration results should be considered indicative of mineralisation styles in the region.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminatingsubstances.	• As discussed in the announcement
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	• Planned exploration works are in the process of being prepared.

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