CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2007

Nov 4, 2007

==> picture [112 x 83] intentionally omitted <==

5 November 2007

ASX Announcement

CARNAVALE ARRANGES SHARE PLACEMENT TO FUND AGGRESSIVE EXPLORATION CAMPAIGN ON BRAZILIAN PROJECTS

The Board of Carnavale Resources Limited (ASX: CAV) is pleased to announce that the Company has entered into subscription agreements with International and Australian investors, many of whom are institutional funds, for the issue of up to 6.7 million shares at an issue price of $1.40 per share.

The funds raised of up to $9.38 million will be used for intensive exploration programs planned for the Company’s Brazilian iron ore, molybdenum and gold projects in calendar year 2008 and to provide working capital.

The Company anticipates completing the placement and issuing the securities by 7 November 2007. The Company confirms that the participants in this share placement will be entitled to participate in the non-renounceable entitlement offer of options on the basis of one option for every one share held at an issue price of one cent per option as per the ASX announcement on 22 October 2007.

For further information in respect of Carnavale, please contact:

Ron Gajewski	Paul Jurman	Jill Thomas
Director	Company Secretary	Investor Relations
Tel:+61 8 9240 6876	Tel:+61 8 9240 6876	Tel:+61 8 9388 0944
Email:gajewskir@crcpl.com.au	Email:jurmanp@crcpl.com.au	Email:jthomas@pprwa.com.au

Carnavale Resources website: www.carnavaleresources.com.au

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