CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2019

Aug 27, 2019

CARNAVALE RESOURCES LIMITED

ASX release 28 August 2019

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NON-RENOUNCEABLE ENTITLEMENT ISSUE PLACEMENT OF SHORTFALL

Further to the Company’s announcement dated 24 July 2019, Carnavale Resources Limited (ASX: CAV, Carnavale) (“Company”) is pleased to announce that it has completed the placement of the Shortfall Securities arising from the non-renounceable entitlements issue offered on the basis of 1 new share for every 1 share held at $0.003 per share (together with one free attaching option for every two New Shares subscribed for and issued) ( Rights Issue ) and has issued 352,576,814 shares and 176,288,402 options raising a further $1.058 million, for a total raising of $2.227 million from the Rights Issue.

The Shortfall Securities were issued to overseas and sophisticated investors who had previously expressed interest in taking up the shortfall arising from the Rights Issue.

We confirm that the issued capital of the Company is:

• 1,485,403,629 ordinary fully paid shares (CAV);

• 408,702,011 listed options exercisable at $0.007 on or before 30 September 2020. (CAVOA);

• 60,000,000 unlisted options exercisable at $0.02 on or before 30 December 2019; and

• 36,000,000 performance rights expiring 30 June 2021

An Appendix 3B is attached with respect to the new securities issued.

Yours faithfully

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Paul Jurman

Company Secretary

For further information contact:

Ron Gajewski Chairman P: +61 8 9380 9098

Andrew Beckwith Director

Carnavale Resources Limited ABN 49 119 450 243 Level 2, Suite 9, 389 Oxford Street, Mt Hawthorn, WA, 6016 T + 61 8 9380 9098 F + 61 8 9380 6761 E: admin@carnavaleresources.com W : www.carnavaleresources.com

1

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12, 04/03/13

Name of entity

Carnavale Resources Limited

ABN

49 119 450 243

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Ordinary shares and options.
	352,576,814 shares and 176,288,402 options.
	Fully paid ordinary shares ranking equally with existing shares. Each option is to subscribe for one ordinary share at an issue price of $0.007, with an expiry date of 30 September 2020.

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

4 Do the[+] securities rank equally in all respects from the[+] issue date with an existing[+] class of Yes, the ordinary shares rank equally with existing quoted shares (CAV). quoted[+] securities? Each option is to subscribe for one ordinary share at If the additional[+] securities do an issue price of $0.007, with an expiry date of 30 not rank equally, please state: September 2020 (CAVOA). • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration Shares: $0.003. Options: One free attaching option for every 2 shares applied for. 6 Purpose of the issue To provide funding for ongoing exploration (If issued as consideration for activities at the Company’s existing projects, meet the acquisition of assets, clearly expenses of the Rights Issue and for ongoing identify those assets) working capital. 6a Is the entity an[+] eligible entity Yes. that has obtained security holder approval under rule 7.1A? If Yes, complete sections 6b – 6h in relation to the[+] securities the subject of this Appendix 3B , and comply with section 6i 6b The date the security holder 27 November 2018. resolution under rule 7.1A was passed 6c Number of[+] securities issued Nil. without security holder approval under rule 7.1 6d Number of[+] securities issued Nil. with security holder approval under rule 7.1A

• See chapter 19 for defined terms.

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6e Number of+securities issued with security holder approval under rule 7.3, or another specific security holder approval (specify date of meeting) 6f Number of+securities issued under an exception in rule 7.2 6g If+securities issued under rule 7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the +issue date and both values. Include the source of the VWAP calculation.	N/A.	N/A.
	352,576,814 shares and 176,288,402 options issued from the shortfall arising from the non-renounceable entitlement offer.
	N/A.
6h If+securities were issued under rule 7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements	N/A
6i Calculate the entity’s remaining issue capacity under rule 7.1 and rule 7.1A – complete Annexure 1 and release to ASX Market Announcements 7 +Issue dates Note: The issue date may be prescribed by ASX (refer to the definition of issue date in rule 19.12). For example, the issue date for a pro rata entitlement issue must comply with the applicable timetable in Appendix 7A. Cross reference: item 33 of Appendix 3B.	Listing rule 7.1 – 76,060,544. Listing rule 7.1A – 139,040,362.
	28 August 2019
8 Number and +class of all +securities quoted on ASX (_including_the +securities in section 2 if applicable) 9 Number and +class of all +securities not quoted on ASX (_including_the +securities in section 2 if applicable)
	Number	+Class
	1,485,403,629 408,702,011	Ordinary Shares (CAV). Options exercisable at $0.007 on or before 30 September 2020. (CAVOA).
	Number	+Class
	60,000,000 36,000,000	Unlisted Options exercisable at $0.02 on or before 30 December 2019. Performance Rights expiring 30 June2021

• See chapter 19 for defined terms.

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10 Dividend policy (in the case of a No plans to pay dividends at this stage. trust, distribution policy) on the increased capital (interests)

Part 2 - Pro rata issue – Not Applicable

	Part 2 - Pro rata
11	Is security holder approval
	required?
12	Is the issue renounceable or non-
	renounceable?
13	Ratio in which the+securities
	will be offered
14	+Class of+securities to which the
	offer relates
15	+Record date to determine
	entitlements
16	Will holdings on different
	registers (or subregisters) be
	aggregated for calculating
	entitlements?
17	Policy for deciding entitlements
	in relation to fractions
18	Names of countries in which the
	entity has security holders who
	will not be sent new offer
	documents
	Note: Security holders must be told how their
	entitlements are to be dealt with.
	Cross reference: rule 7.7.
19	Closing date for receipt of
	acceptances or renunciations
20	Names of any underwriters
21	Amount of any underwriting fee
	or commission
22	Names of any brokers to the
	issue

• See chapter 19 for defined terms.

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23	Fee or commission payable to
	the broker to the issue
24	Amount of any handling fee
	payable to brokers who lodge
	acceptances or renunciations on
	behalf of security holders
25	If the issue is contingent on
	security holders’ approval, the
	date of the meeting
26	Date entitlement and acceptance
	form and offer documents will be
	sent to persons entitled
27	If the entity has issued options,
	and the terms entitle option
	holders to participate on
	exercise, the date on which
	notices will be sent to option
	holders
28	Date rights trading will begin (if
	applicable)
29	Date rights trading will end (if
	applicable)
30	How do security holders sell
	their entitlements_in full_through
	a broker?
31	How do security holders sell_part_
	of their entitlements through a
	broker and accept for the
	balance?
32	How do security holders dispose
	of their entitlements (except by
	sale through a broker)?
33	+Issue date

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of[+] securities

• ( tick one )

• (a) √ +Securities described in Part 1 – ordinary shares and options.

• See chapter 19 for defined terms.

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(b)[All other ][+][securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000

1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

38 Number of[+] securities for which +quotation is sought

39 +Class of +securities for which quotation is sought

• See chapter 19 for defined terms.

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• 40 Do the[+] securities rank equally in all respects from the[+] issue date with an existing[+] class of quoted +securities?

If the additional[+] securities do not rank equally, please state:

• the date from which they do

• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another[+] security, clearly identify that other[+] security)

Number +Class

• 42 Number and +class of all +securities quoted on ASX ( including the[+] securities in clause 38)

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Quotation agreement

1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted +quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document is not available now, we will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

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Sign here: ........................................................... Date: 28 August 2019. (Director/Company secretary) Print name: P Jurman

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• • See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Appendix 3B – Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for eligible entities

Introduced 01/08/12 Amended 04/03/13

Part 1

Rule 7.1 – Issues exceeding 15% of capital

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Part 1	Part 1
Rule 7.1 – Issues exceeding 15% of capital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnumber of fully paid+ordinary securities on issue 12 months before the+issue date or date of agreement to issue	647,999,560
Addthe following: • Number of fully paid+ordinary securities issued in that 12 month period under an exception in rule 7.2 • Number of fully paid+ordinary securities issued in that 12 month period with shareholder approval • Number of partly paid+ordinary securities that became fully paid in that 12 month period Note: • Include only ordinary securities here – other classes of equity securities cannot be added • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	389,827,255 fully paid ordinary shares issued on 26 July 2019 to holders of securities who participated in the Non-Renounceable Entitlement Issue. 352,576,814 fully paid ordinary shares issued on 28 August 2019 to investors who participated in the shortfall arising out of the Non-Renounceable Entitlement Issue.
Subtractthe number of fully paid+ordinary securities cancelled during that 12 month period	Nil
“A”	1,390,403,629
Step 2: Calculate 15% of “A”
“B”	0.15_[Note: this value cannot be changed]_
Multiply“A” by 0.15	208,560,544

• See chapter 19 for defined terms.

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Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used

Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used	Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period_not_ counting_those issued: • Under an exception in rule 7.2 • Under rule 7.1A • With security holder approval under rule 7.1 or rule 7.4 _Note: • This applies to equity securities, unless specifically excluded – not just ordinary securities • Include here (if applicable) the securities the subject of the Appendix 3B to which this form is annexed • It may be useful to set out issues of securities on different dates as separate line items	10 million ordinary shares issued on 30 August 2018 as a facilitation fee for the Kikagati Project. 10 million ordinary shares issued on 24 December 2018 as an Option extension fee for the Kikagati Project. 75 million ordinary shares issued on 31 May 2019 and 37.5 million free attaching options issued on 26 July 2019 as part of a private placement to sophisticated investors.
“C”	132,500,000
Step 4: Subtract “C” from [“A” x “B”] to calculate remaining placement capacity under rule 7.1
“A” x 0.15 Note: number must be same as shown in Step 2	208,560,544
Subtract“C” Note: number must be same as shown in Step 3	132,500,000
Total[“A” x 0.15] – “C”	76,060,544 [Note: this is the remaining placement capacity under rule 7.1]

“A” x 0.15	208,560,544
Note: number must be same as shown in Step 2
Subtract“C”	132,500,000
Note: number must be same as shown in Step 3
Total[“A” x 0.15] – “C”	76,060,544
	[Note: this is the remaining placement capacity
	under rule 7.1]

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

Part 2

Rule 7.1A – Additional placement capacity for eligible entities

Step 1: Calculate “A”, the base figure from which the placement capacity is calculated

Part 2	Part 2
Rule 7.1A – Additional placement capacity for eligible entities
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
“A” Note: number must be same as shown in Step 1 of Part 1	1,390,403,629
Step 2: Calculate 10% of “A”
“D”	0.10 Note: this value cannot be changed
Multiply“A” by 0.10	139,040,362
Step 3: Calculate “E”, the amount of placement capacity under rule 7.1A that has already been used
Insertnumber of+equity securities issued or agreed to be issued in that 12 month period under rule 7.1A Notes: • This applies to equity securities – not just ordinary securities • Include here – if applicable – the securities the subject of the Appendix 3B to which this form is annexed • Do not include equity securities issued under rule 7.1 (they must be dealt with in Part 1), or for which specific security holder approval has been obtained • It may be useful to set out issues of securities on different dates as separate line items	Nil.
“E”	-
Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A
“A” x 0.10 Note: number must be same as shown in Step 2	139,040,362
Subtract“E” Note: number must be same as shown in Step 3	-
Total[“A” x 0.10] – “E”	139,040,362 Note: this is the remaining placement capacity under rule 7.1A

capacity under rule 7.1A
“A” x 0.10	139,040,362
Note: number must be same as shown in Step 2
Subtract“E”	-
Note: number must be same as shown in Step 3
Total[“A” x 0.10] – “E”	139,040,362
	Note: this is the remaining placement capacity
	under rule 7.1A

• See chapter 19 for defined terms.

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