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CARNAVALE RESOURCES LIMITED Capital/Financing Update 2010

Jan 31, 2010

64607_rns_2010-01-31_008dfeda-5f64-4a28-877f-847303e7847d.pdf

Capital/Financing Update

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1 February 2010

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Dear Shareholder

Non-Renounceable Entitlements Issue

On 12 January 2010 the Company announced the details of a non-renounceable entitlements issue of up to 73,664,116 options (exercisable at 20 cents each on or before 28 February 2013) ( Option ) at an issue price of $0.005 per Option on the basis of 1 Option for every 1 Share held on the record date, to raise approximately $368,000 ( Offer ).

The prospectus relating to the Offer ( Prospectus ) has been lodged with ASX and the Australian Securities and Investments Commission ( ASIC ) and is available on the ASX website, www.asx.com.au.

The timetable and important dates of the Offer are set out below:

www.asx.com.au.The timetable and important dates of the Offer are set out below:
Lodgement of Prospectus and Appendix 3B 29 January 2010
“Ex” Date 2 February 2010
Record Date 8 February 2010
Opening Date and Dispatch of Prospectus 11 February 2010
Closing Date 26 February 2010
Advise ASX of under-subscription 3 March 2010
Deferred settlement trading ends and dispatch date 9 March 2010
Note: The Directors may extend the Closing Date by giving at least 6 Business Days notice
to ASX prior to the Closing Date. As such, the date the Shares are expected to commence
trading on ASX may vary with any change in the Closing Date.

The purpose of the Offer is to raise approximately $368,000 which will be applied firstly to meet the expenses of the Offer ($33,000) and the remainder will be used to identify, evaluate and acquire advanced mineral projects and / or oil and gas opportunities and for working capital.

The entitlement offer is open for participation only by shareholders with a registered address in Australia or New Zealand. Shareholders in other countries will be provided with a copy of the prospectus for information purposes only.

A copy of the Prospectus together with a personalised Entitlement and Application Form will be mailed to all shareholders eligible to participate in the Offer.

Yours sincerely

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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