CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2010

Mar 2, 2010

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3 March 2010

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

Dear Sir

NON-RENOUNCEABLE OPTION ENTITLEMENT OFFER - CLOSURE

Carnavale Resources Limited advises that the offer of 73,664,116 options (exercisable at $0.20 each on or before 28 February 2013) at an issue price of 0.5 cents each has been closed with offers for 62,303,328 options accepted leaving a shortfall of 11,360,788 options.

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