CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2018

Mar 18, 2018

ASX RELEASE

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SALE OF NON-CORE TENEMENTS

KalNorth Gold Mines Limited (ASX: KGM) (“KalNorth” or the “Company”) announces the sale of three (3) non-core tenements (M28/0378, E28/1477 and E28/2226) which form part of the larger Kurnalpi Gold Project.

In the December 2017 Quarterly Activities Report, the Company noted that it was reviewing the nickel / cobalt potential of tenements around the Grey Dam area. The Company has concluded that these tenements are non-core to the Kurnalpi Gold Project and has entered into a binding agreement for the sale of these tenements to Carnavale Resources Limited (ASX: CAV) for a cash amount of $110,000, subject only to Ministerial consent as required by the Mining Act 1978 (WA).

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Jiajun Hu Executive Chairman

KalNorth Gold Mines Limited (ASX: KGM) 224 Dugan Street Kalgoorlie WA Australia 6430 Telephone: +61 8 9021 8327 ABN 55 100 405 954

www.kalnorthgoldmines.com