CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2019

Jun 26, 2019

CARNAVALE RESOURCES LIMITED ASX release 27 June 2019

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Carnavale elects to proceed to acquire initial 51% interest in the Kikagati Tin Project, Uganda

Carnavale Resources Limited (ASX: CAV, Carnavale) is pleased to advise it has now completed the required minimum drilling requirements of 2,000m under the Option to Earn-In Agreement (Agreement) with African Panther Resources (U) Limited (APRU), to acquire up to 70% of the Kikagati Tin (Sn) Project, located in southern Uganda, Africa.

The drilling results show encouraging shallow tin mineralisation at both the main Kikagati and Hippo Hill prospects and Carnavale considers there is significant potential to define large tin resources which may be amenable to open pit mining methods.

At Kikagati, surface mapping has demonstrated a stockwork of mineralised quartz veins and associated alteration occurs over a continuous area of 3km strike by at least 100m average width and local artisanal miners are actively mining to shallow depths along the entire strike length of the deposit. The recent diamond drilling confirms the prospective quartz vein stockwork hosts visible cassiterite (tin bearing mineral) and veins extend at depth to a cumulative down dip extension of approximately 900m. Sampling of the individual veins indicates tin grades ranging from 0.4% up to 10% Sn.

At Hippo Hill, a smaller programme of diamond drilling and trenching has been completed along one section where historic artisanal mining had occurred. This drilling is complimented with along strike mapping and soil sampling. All results remain pending, however initial observations show visible cassiterite occurs in the drilling associated with a stockwork of smaller quartz veins. Mapping shows a series of artisanal workings along a 1.5km strike length and a potential stockwork corridor up to 150m wide.

Accordingly, APRU has been formally advised of Carnavale’s election to advance to earn 51% of APRU. All parties have agreed to target completion of the full Earn-in Agreement and Carnavale’s initial 51% equity in APRU as outlined in the Agreement by the end of August 2019.

Upon execution of the full Earn-in Agreement Carnavale will:

• have earned a 51% interest in APRU;

• have the right to earn an additional 19% interest in APRU; and

• be required to issue to the current owners of APRU a total of 30 million CAV shares.

Carnavale notes that it expects to receive assay results from the 3 diamond drill holes, trenches and soil sampling completed at Hippo Hill and further sampling of the earlier Kikagati drill core during the September 2019 quarter. Further exploration activities are planned to commence, subject to completion of the Rights Issue, which a prospectus is expected to be lodged with ASIC later today.

For further information contact:

Ron Gajewski Chairman

Andrew Beckwith

Director

P: +61 8 9380 9098

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

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CARNAVALE RESOURCES LIMITED ASX release 27 June 2019

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Competent Persons Statement

The information in this report that relates to Exploration Results is based on, and fairly represents information and supporting documentation prepared by Mr. Andy Beckwith, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr. Beckwith is a director of Carnavale Resources Limited. Mr. Beckwith has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr. Beckwith consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

Statements regarding Carnavale’s plans with respect to the mineral properties, resource reviews, programmes, economic studies and future development are forward-looking statements. There can be no assurance that Carnavale’s plans for development of its mineral properties will proceed any time in the future. There can also be no assurance that Carnavale will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Carnavale’s mineral properties.

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

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