CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2007

Nov 11, 2007

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12 November 2007

The Manager ASX Ltd Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir

NON-RENOUNCEABLE ENTITLEMENT OFFER OF OPTIONS

We advise that the Prospectus for the non renounceable entitlement offer of Options on a 1 for 1 basis at an issue price of 1 cent per Option has today been despatched to eligible shareholders.

Yours faithfully

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Ron Gajewski Executive Director

CARNAVALE RESOURCES LIMITED

ABN 49 119 450 243 30 Ledgar Road, Balcatta Western Australia 6021 T: +61 8 9240 6876 F: +61 8 9240 2406 E: admin @carnavaleresources.com W: www.carnavaleresources.com