CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2010

Mar 22, 2010

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23 March 2010

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

Dear Sir

NON-RENOUNCEABLE OPTION ENTITLEMENT OFFER - DISTRIBUTION OF SHORTFALL

Further to the Company’s announcement dated 3 March 2010, Carnavale Resources Limited is pleased to announce that it has placed the 11,360,788 Options shortfall under the Entitlement Issue.

We confirm that the issued capital of the Company is:

73,664,116 ordinary fully paid shares 73,664,116 options exercisable at 20 cents each on or before 28 February 2013.

Yours faithfully

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Paul Jurman Company Secretary

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