CARNAVALE RESOURCES LIMITED

ASX Release 23 May 2019

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High grade tin confirms large scale potential (Tier 1) at Kikagati Project, Uganda

Carnavale Resources (ASX: CAV) is pleased to advise priority assay results from recent diamond drilling confirms high grade tin mineralisation associated with the large stockwork of quartz veins at the Kikagati Tin Project, located in the Isingiro District of southern Uganda.

Quartz veins show peak grade to 10% Sn and average 1.2% Sn
Large scale target dimensions (Tier 1)
Vein density ranging from 14 - 22% by volume
Significant open pit potential from surface

Tier 1 Scale Potential

Carnavale’s drilling confirms mineralised quartz veins extend 3,000m along strike and approximately 900m down dip and the host sequence is 100m thick and remains open at depth and along strike. Overall project dimensions provide scope to define a large scale deposit (Tier 1).

Dimensions 3,000m strike length x 900m down dip x 100m thickness

The mineralised quartz veins are hosted in a quartzite unit(s) up to 100m thick with quartz vein densities ranging from 14% to 22% by volume. The dimensions and mineralisation potential are strongly supported by continuous and extensive artisanal workings along the entire 3,000m strike length to an estimated depth of 30m. Tin, in the form of the mineral cassiterite (SnO2) continues to be hand mined from the deposit by artisanal miners.

The large scale and high grade potential ranks favourably against all current producing tin mines around the world and warrants continued evaluation.

Earn-in Rights Extended

Carnavale has been granted a further extension to 30 June, 2019, for CAV to earn an initial 51% equity in African Panther Resources (U) Limited (APRU), the 100% owner of the Kikagati (Isingiro) project tenements (refer to ASX release “Carnavale to Acquire Large-Scale Tin Project, Uganda” 24 April 2018). Under the agreement, Carnavale is required to complete 2,000m of drilling on the project and to date, Carnavale has completed 1,695m of diamond drilling, with 305m remaining to be completed prior to 30 June 2019.

Andy Beckwith, Managing Director commented

“Kikagati is a very rare and large outcropping tin system with substantial open pit potential.

Recent drilling has ticked all the boxes:

1. confirms the high grade nature of mineralisation,

2. frequency of quartz veining and

3. potential scale of the geological target.

Our immediate task is to complete the required drilling programme to earn Carnavale’s 51% equity. Beyond June, the next step will be to complete additional infill drilling to establish an initial inferred resource and assess the potential for bulk open pit mining methods.

Ore sorting of the quartzite from the mineralised tin bearing quartz vein material is also seen as an immediate economic aspect to evaluate.”

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: [email protected] W : www.carnavaleresources.com

CARNAVALE RESOURCES LIMITED

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Drilling and Results

Diamond drilling, at the Kikagati Tin Project, now totals 10 holes for 1,695m of the planned 2,000m programme (Table 3). The more recent drill holes (KKDD006 - KKDD010) were designed to intersect the maximum number of stacked and mineralised quartz veins hosted within a thick quartzite unit(s) which is approximately 100m thick (Fig 1).

Figure 1 Composite schematic cross section illustrating drilling completed over approximately 2,500m of strike length and demonstrating 900m down-dip mineralisation potential

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The quartzite unit(s) are bounded by phyllites and extend for 3,000m along a prominent hill. Figure 1 also highlights the distinct dip slope (45° east) of the hill that is potentially conducive to simple open pit mining methods with a low strip ratio due to the geometry and low overburden to the host quartzites.

The tin mineralisation occurs as very coarse grained cassiterite with crystals ranging from 1mm to 60mm in drilling through to 40cm in previous hand-specimens taken from the workings. The mineralisation occurs within a stockwork of stacked “ladder style” quartz veins and is associated with intense muscovite and tourmaline alteration (refer to photographs).

Seventy four (74) selected and priority samples covering a range of alteration, mineralised quartz veins and host rock types were prepared in the Johannesburg laboratory and then sent for detailed XRF analyses in the Vancouver laboratory, Canada.

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CARNAVALE RESOURCES LIMITED

The following Table 1 highlights tin grade from samples containing quartz veining and visible cassiterite .

Table 1 Samples with quartz veins and visible cassiterite logged in drill core

HoleID	SampleID	From(m)	To(m)	Sn(PPM)	Sn(%)	Lithology
KKDD003	A7296	109.04	109.23	4,180	0.418	Quartz vein
KKDD006	A7465	87	87.4	1,850	0.185	Quartz vein
KKDD006	A7475	95.4	96	60	0.006	Quartz vein
KKDD006	A7476	96	96.35	6,970	0.697	Quartz vein
KKDD006	A7498	132.4	132.7	6,890	0.689	Quartz vein
KKDD007	A7533	125.27	125.57	130	0.013	Quartz vein
KKDD007	A7534	125.57	126	4,730	0.473	Quartz vein
KKDD007	A7589	176.85	177.35	16,700	1.67	Quartz vein
KKDD007	A7597	184.31	184.53	9,020	0.902	Quartz vein
KKDD007	A7610	201.35	201.46	130	0.013	Quartz vein
KKDD009	A7743	102.27	102.51	220	0.022	Quartz vein
KKDD009	A7744	102.51	102.76	9,610	0.961	Quartz vein
KKDD009	A7751	117.87	118.01	99,600	9.96	Quartz vein
			Average	12,315	1.23

The average tin grade of the quartz veins with visible cassiterite averages 1.23% Sn using a zero lower cutoff grade and 1.8% Sn using a 0.1% Sn lower cut-off grade. The cassiterite is highly nuggetty by nature which implies all quartz veins have potential to host tin mineralisation, even if no significant mineralisation was reported in a sample. In general, the visible cassiterite noted in the core and mapped in the artisanal workings occurs along the margins of the quartz veins and within the intense muscovite-tourmaline alteration selvages (Fig 4 photos 1, 2, 5, 6). Occasionally, and generally as larger crystals, cassiterite is evident within the actual quartz vein (Fig 4 photos 3,4). The following Table 2 highlights anomalous tin results in other rock types.

The extensive shallow artisanal workings provide support in that most quartz veins at surface are mined in some form along their entire strike lengths. Statistically, larger volume sampling is normally the method to better define the overall grade within a system having a strong “nugget’ effect. Accordingly, the Company is considering several bulk sampling techniques to better define an overall grade of mineralisation.

Table 2 Samples showing anomalous tin (>300ppm) without visible cassiterite *no visible cassiterite logged in quartz veins

HoleID	SampleID	From(m)	To(m)	Sn(PPM)	Sn(%)	Lithology
KKDD006	A7494	122.8	123.4	2240	0.224	Quartz Vein*
KKDD006	A7514	150.62	150.86	300	0.03	Quartz Vein*
KKDD001	A7076	73	73.6	520	0.052	Quartzite
KKDD001	A7090	89.88	90.4	370	0.037	Quartzite
KKDD006	A7450	71.46	72	410	0.041	Quartzite
KKDD006	A7483	99.9	100.26	450	0.045	Quartzite
KKDD006	A7511	145.75	146.15	420	0.042	Quartzite
KKDD001	A7108	102.45	102.67	320	0.032	Shear
KKDD003	A7279	88.32	88.55	460	0.046	Shear
KKDD003	A7299	109.47	109.96	2760	0.276	Shear
KKDD006	A7497	128.76	128.87	410	0.041	Shear
KKDD003	A7351	88.55	89	410	0.041	Yellow Band
KKDD004	A7376	56.9	57.2	310	0.031	Yellow Band
KKDD006	A7520	87.4	88.5	710	0.071	Yellow Band

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CARNAVALE RESOURCES LIMITED

The anomalous tin result in sample A7494 provides an example of a quartz vein with elevated tin where no cassiterite was logged. Sample A7299 is particularly encouraging, as it shows the shear zone may host potentially economic tin mineralisation that would form an orebody parallel to bedding and is supported with other anomalous tin values greater than 300ppm. The samples from the yellow band, also interpreted to represent the large fluid conduits or “plumbing system” for the tin mineralisation are considered anomalous and contains arsenopyrite rich sulphides which are typically associated with tin mineralisation in other large tin deposits around the world.

Figure 2 Drill hole geology logging showing veins and priority XRF assay results.

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Assays in red >0.1%Sn and green >0.004%Sn (400ppm)
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CARNAVALE RESOURCES LIMITED

Multi-element assays have been completed on 277 samples across the initial 6 holes (KKD001 - 006) aiming to understand the mineral potential, fluid flow pathways and associated pathfinder elements for this system. This data remains to be assessed in detail however early assessment supports a large fluid flow through the yellow band and sheared rocks with the tin mineralisation depositing along these structures and the open spaced quartz filled brittle style tension veins within the quartzite unit(s).

Figure 3 Drill hole locations

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CARNAVALE RESOURCES LIMITED

Figure 4 Visible coarse grained cassiterite crystals in drill core

Cassiterite alongside a small quartz vein with lesser amounts of mica, tourmaline and arsenopyrite.
A small “bleb” of mica, graphite and some cassiterite within the quartzite.
Large cassiterite crystal approximately 5cm across within a quartz vein.
Cassiterite within a milky quartz vein with very little associated mica or tourmaline.
Euhedral cassiterite crystal on the boundary of a quartz vein and the altered quartzite host rock.
Small cassiterite crystals developed within the muscovite-rich vein selvage.

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CARNAVALE RESOURCES LIMITED

Forward Programme

Initially, Carnavale intends to complete

the original 2,000m diamond drilling programme with 305m remaining to be completed by 30 June 2019 to earn an initial 51% equity in APRU;
completion of detailed and systematic sampling and assays;
larger volume RC drilling and larger sample volumes are proposed to test the mineralisation to better define a representative overall tin grade of the deposit. Additional programmes of trial mining bulk sampling are also being considered; and
Ore sorting to separate the mineralised quartz veins, cassiterite and associated alteration envelopes from the distinctly different massive fine grained quartzite unit is to be assessed, as this may provide a beneficial processing upgrade. Ore sorting techniques have improved markedly over the last few years with many projects benefiting from material improvements in economics resulting from a reduced volume of rock requiring final processing (crushing) and improved concentrated grades delivered to the final stages of the processing plant.

For further information contact:

Ron Gajewski Andrew Beckwith Chairman Director

P: +61 8 9380 9098

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 an employee 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.

Information relating to Previous Disclosure

Information relating to Exploration Results associated with previous disclosures relating to the Kikagati Project in this announcement has been extracted from the following ASX announcements:

“Multiple visible cassiterite occurrences in drilling at the Kikagati Tin Project, Uganda”, 13 March 2019 ‘Extension to Option term for Kikagati Project , Uganda” 24 December 2019 “Cassiterite (tin mineral) observed in diamond drilling, Kikagati Project, Uganda”, 27 November 2018 “Carnavale advances Kikagati Tin Project, Uganda”, 30 August 2018 “Carnavale to acquire large-scale Tin Project, Uganda”, 24 April 2018

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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CARNAVALE RESOURCES LIMITED

Table 3 Drill hole location details

PROSPECT	HOLE	DEPTH FROM	DEPTH TO	COLLAR(Arc1960/ UTM 36S)	COLLAR(Arc1960/ UTM 36S)	RL	AZIMUTH	INCLINATION	LENGTH
				EASTING	NORTHING
Kikagati-Katanga	KKDD001	0	141	240490	9885245	1242	255.5	-70	141
Kikagati-Katanga	KKDD002	0	165	240333	9885538	1271	245.7	-70	165
Kikagati-Nyarabungo	KKDD003	0	171.5	239695	9886106	1359	225	-69.3	171.5
Kikagati-Nyarabungo	KKDD004	0	113	239375	9886460	1509	245	-70	113
Kikagati-Nyarabungo	KKDD005	0	47.5	239699	9886111	1359	245	80	47.5
Kikagati-Katanga	KKDD006	0	185.5	240496	9885247	1242	250	80	185.5
Kikagati-Katanga	KKDD007	0	250.5	240496	9885247	1242	255	65	250.5
Kikagati-Nyarabungo	KKDD008	0	279.5	239695	9886106	1359	279	70	279.5
Kikagati-Nyarabungo	KKDD009	0	211	239120	9886991	1604	235	70	211
Kikagati-Katanga	KKDD010	0	131	240534	9885075	1212	271	72	131

Table 4 Selective priority sampling results (XRF technique)

HoleID	SampleID	From(m)	To(m)	Sn(PPM)	Sn(%)
KKDD001	A7031	38.74	38.81	330	0.033
KKDD001	A7041	46.25	46.7	320	0.032
KKDD001	A7042	46.7	46.84	280	0.028
KKDD001	A7054	56.03	56.1	170	0.017
KKDD001	A7075	72.83	73	120	0.012
KKDD001	A7076	73	73.6	520	0.052
KKDD001	A7077	73.6	73.8	280	0.028
KKDD001	A7090	89.88	90.4	370	0.037
KKDD001	A7108	102.45	102.67	320	0.032
KKDD002	A7176	116.16	116.73	280	0.028
KKDD002	A7179	121.75	123	190	0.019
KKDD002	A7181	124.54	125.03	230	0.023
KKDD002	A7187	131.45	131.57	280	0.028
KKDD002	A7189	132.15	132.45	-50	-0.005
KKDD002	A7191	132.45	132.67	130	0.013
KKDD002	A7192	132.67	132.97	170	0.017
KKDD003	A7242	44.81	46	230	0.023
KKDD003	A7244	46.21	46.65	230	0.023
KKDD003	A7279	88.32	88.55	460	0.046
KKDD003	A7351	88.55	89	410	0.041
KKDD003	A7296	109.04	109.23	4180	0.418
KKDD003	A7297	109.23	109.4	280	0.028
KKDD003	A7299	109.47	109.96	2760	0.276
KKDD004	A7376	56.9	57.2	310	0.031
KKDD004	A7377	57.2	57.5	240	0.024
KKDD004	A7379	58.3	58.75	190	0.019
KKDD004	A7407	96.45	96.8	170	0.017
KKDD005	A7426	34.6	35	160	0.016
KKDD006	A7450	71.46	72	410	0.041
KKDD006	A7454	79.05	79.6	250	0.025
KKDD006	A7456	80.4	81.04	110	0.011
KKDD006	A7465	87	87.4	1850	0.185

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CARNAVALE RESOURCES LIMITED

HoleID	SampleID	From(m)	To(m)	Sn(PPM)	Sn(%)
KKDD006	A7520	87.4	88.5	710	0.071
KKDD006	A7466	88.5	89	200	0.02
KKDD006	A7469	90	90.5	170	0.017
KKDD006	A7470	90.5	91	120	0.012
KKDD006	A7475	95.4	96	60	0.006
KKDD006	A7476	96	96.35	6970	0.697
KKDD006	A7477	98	98.45	190	0.019
KKDD006	A7478	98.45	98.9	220	0.022
KKDD006	A7481	99.4	99.8	240	0.024
KKDD006	A7482	99.8	99.9	150	0.015
KKDD006	A7483	99.9	100.26	450	0.045
KKDD006	A7484	103.13	103.3	240	0.024
KKDD006	A7494	122.8	123.4	2240	0.224
KKDD006	A7495	124.96	125.07	260	0.026
KKDD006	A7496	127.78	128.27	120	0.012
KKDD006	A7497	128.76	128.87	410	0.041
KKDD006	A7498	132.4	132.7	6890	0.689
KKDD006	A7506	141.5	141.9	240	0.024
KKDD006	A7507	141.9	142.54	150	0.015
KKDD006	A7508	144.25	144.53	220	0.022
KKDD006	A7511	145.75	146.15	420	0.042
KKDD006	A7514	150.62	150.86	300	0.03
KKDD007	A7532	124.64	125.27	90	0.009
KKDD007	A7533	125.27	125.57	130	0.013
KKDD007	A7534	125.57	126	4730	0.473
KKDD007	A7535	126	126.27	70	0.007
KKDD007	A7553	137.75	138.5	180	0.018
KKDD007	A7588	176.35	176.85	-50	-0.005
KKDD007	A7589	176.85	177.35	16700	1.67
KKDD007	A7590	179.9	180.17	140	0.014
KKDD007	A7591	180.17	180.7	250	0.025
KKDD007	A7592	180.7	181.38	130	0.013
KKDD007	A7593	181.38	181.55	190	0.019
KKDD007	A7597	184.31	184.53	9020	0.902
KKDD007	A7610	201.35	201.46	130	0.013
KKDD009	A7742	100.9	102.27	140	0.014
KKDD009	A7743	102.27	102.51	220	0.022
KKDD009	A7744	102.51	102.76	9610	0.961
KKDD009	A7745	102.76	103.06	270	0.027
KKDD009	A7750	117.48	117.87	50	0.005
KKDD009	A7751	117.87	118.01	99600	9.96
KKDD009	A7752	118.01	118.24	50	0.005
“-50” equates to below detection limit.

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Table JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
*Sampling techniques*	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	• Diamond core sampling completed for 10 holes with priority samples submitted to the independent laboratory. • All drilling and sampling undertaken in an industry standard manner. • All core is geologically logged and photographed, HQ and PQ drill core is cut in half, with one half sent to the laboratory for assay and the other half retained on site. • Holes are sampled over potentially mineralised intervals on a nominal 1m basis and down to 0.1m geological boundaries. • Samples are sent to an independent laboratory with the entire sample pulverised and sub-sample analysed.
*Drilling techniques*	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	• The diamond drill holes comprised NQ, HQ or PQ sized core.
*Drill sample recovery*	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• Core recovery is measured for each drilling run by the driller and then checked by the Company geological team during the mark up and logging process. • Samples have been marked out and are considered representative with generally 95- 100% recovery. • Cavities have been intersected on the occasional locality and is presumed to represent artisanal workings. Cavities are recorded as no core returned.
*Logging*	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged.	• The entire hole has been geologically and geotechnically logged and photographed by consultant geologists, with systematic priority sampling to be undertaken on the prospective parts of the stratigraphy based on rock type and alteration observed.

Criteria	JORC Code explanation	Commentary
*Sub-sampling* *techniques and* *sample preparation*	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Priority sampling of the holes has been completed and dispatched to the laboratory. Results are reported in this report. • Drill core is collected from the diamond drill rig, logged and photographed, drill core is then cut in half using a core saw, with one half sent to the laboratory for assay and the other half retained on site. • Holes are sampled over mineralised intervals to geological boundaries down to 0.1m and on a nominal 1m basis where applicable. • Industry prepared independent certified Sn standards are inserted approximately 1 in 20 samples. • Two additional site prepared standards have been submitted as a comparison of assay techniques.
*Quality of assay data* *and laboratory tests*	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• The samples have been submitted to a commercial independent laboratory in Johannesburg, South Africa and then selected samples sent to Vancouver laboratory for XRF analysis. • The priority samples have been assayed by two methods: initially using a four-acid digest performed on 25g sample to quantitatively dissolve most geological materials. Analysis is then via ICP-MS + ICP-AES. This technique provides multi-element data however is not suited to mineralised tin samples. Follow-up analysis is then under taken on samples using XRF spectroscopy using lithium metaborate - lithium tetraborate flux containing 20% NaNO3 with an XRF finish. • The techniques are considered quantitative in nature. • As discussed previously certified reference standards have been inserted by the Company and the laboratory also carries out internal standards within individual batches. • The sampling and analytical techniques are considered normal industry practice and suitable for resource estimation.
*Verification of* *sampling and* *assaying*	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• Sample results will be merged by the company’s database consultants. • Results will be uploaded into the company database, checked and verified. • Standards are checked and validated against the certified preferred value.
*Location of data* *points*	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Drill hole collar locations are located by handheld GPS to an accuracy of +/-5m. • Locations are given in UTM 36S. • Diagrams and location table are provided in the report. • Topographic control is by a 30m resolution DTM.

Criteria	JORC Code explanation	Commentary
*Data spacing and* *distribution*	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• Drilling is along the strike of the mineralised zone generally on sections between 500m to 1000m apart. • All holes are monitored in regard to location, dip and downhole azimuth, then geologically logged in detail and provide a strong basis for geological control and continuity of mineralisation.
*Orientation of data in* *relation to geological* *structure*	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Two drilling inclinations are used: 1) To target lithological boundaries of the mineralised zone (quartzite) approximately perpendicular to the bedding planes. 2) To target the mineralised veins the holes are oblique to the bedding planes and closer to perpendicular to the quartz veins. • In some cases, drilling is not at right angles to the dip of mineralised structures and as such true widths are less than downhole widths. This will be allowed for in resource estimates when geological interpretations are completed.
*Sample security*	• The measures taken to ensure sample security.	• Samples are collected by on site company personnel/contractors and delivered direct to the laboratory via a transport contractor.
*Audits or reviews*	• The results of any audits or reviews of sampling techniques and data.	• No audits have been completed. Review of QAQC data is carried out by database consultants and company geologists.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
*Mineral tenement* *and land tenure* *status*	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.	• Kikagati drilling is on ML1430 and EL1380 which are in the Isingiro District in South- West Uganda. • The licences are 100% owned by African Panther Resources (U) Limited. • Carnavale has the right to earn 51% of the project by drilling 2,000m of diamond core, with the right to earn up to 70% by sole funding to completion of a Bankable Feasibility Study. • All the land associated with the drilling has compensation agreements in place and there are no known land issues.
*Exploration done by* *other parties*	• Acknowledgment and appraisal of exploration by other parties.	• APRU have completed several pitting programmes to test the colluvial gravels. • No hard-rock drilling has been undertaken on any of the licences prior to Carnavale involvement. • This drilling programme is the first ever known on the project
*Geology*	• Deposit type, geological setting and style of mineralisation.	• At the Kikagati Prospect, the geology is composed of a quartzite sequence over and underlain by phyllites. The sequence has been folded and is east dipping at the drill target. Mineralisation targeted is within a series of west dipping quartz veins where

Criteria	JORC Code explanation	Commentary
		cassiterite occurs within veins and along the altered wall rock on vein boundaries. Additional potential for layer parallel mineralization is interpreted to occur in fine grained units within the quartzite sequence.
*Drill hole Information*	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	• Drill hole location and directional information is provided in the attached report.
*Data aggregation* *methods*	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Priority sample results are provided in this report.
*Relationship* *between mineralisa-* *tion widths and* *intercept lengths*	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down _hole length, true width not known’). _	• Drilling is not always perpendicular to the dip of mineralisation and true widths are less than downhole widths.
*Diagrams*	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	• Representative plans and sections are provided in this report.
*Balanced reporting*	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	• The report is considered balanced and provided in context. • Further drilling, mapping, sampling and other exploration activities are required to fully understand the deposit in greater detail. • Results shows highgrade tin mineralisation is

Criteria	JORC Code explanation	Commentary
		host in the quartz veins stockwork which are hosted dominantly within the quartzite units.
*Other substantive* *exploration data*	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• No meaningful previous work has been done on the project except as described in the report and previous reports. • Extensive artisanal working to approximately 30m depth occur along the entire 3km strike length.
*Further work*	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• The company plans to complete the 2,000m drilling programme with the remaining 305m planned to be completed by 30 June 2019. • Follow up infill drilling to increase the definition of the mineralisation is being planned. • Bulk sampling is currently being assessed to assess the nuggetty cassiterite and provide a more representative overall grade. • Ore sorting is to be assessed as the quartz veins hosting the tin mineralisation are distinct from the quartzite in character. Any positive ore sorting characteristics may improve possible future mining methods and economics.

AI assistant

CARNAVALE RESOURCES LIMITED Capital/Financing Update 2019

64607_rns_2019-05-22_78d305dc-2e25-4c42-8217-2aaf85e2b866.pdf

High grade tin confirms large scale potential (Tier 1) at Kikagati Project, Uganda

Tier 1 Scale Potential

Dimensions 3,000m strike length x 900m down dip x 100m thickness

Earn-in Rights Extended

Drilling and Results

Figure 1 Composite schematic cross section illustrating drilling completed over approximately 2,500m of strike length and demonstrating 900m down-dip mineralisation potential

CARNAVALE RESOURCES LIMITED

CARNAVALE RESOURCES LIMITED

Figure 2 Drill hole geology logging showing veins and priority XRF assay results.

CARNAVALE RESOURCES LIMITED

Figure 3 Drill hole locations

CARNAVALE RESOURCES LIMITED

Figure 4 Visible coarse grained cassiterite crystals in drill core

CARNAVALE RESOURCES LIMITED

Forward Programme

For further information contact:

Competent Persons Statement

Forward Looking Statements

Information relating to Previous Disclosure

CARNAVALE RESOURCES LIMITED

Table 3 Drill hole location details

Table 4 Selective priority sampling results (XRF technique)

CARNAVALE RESOURCES LIMITED

Table JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

AI assistant

CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2019

64607_rns_2019-05-22_78d305dc-2e25-4c42-8217-2aaf85e2b866.pdf

High grade tin confirms large scale potential (Tier 1) at Kikagati Project, Uganda

Tier 1 Scale Potential

Dimensions 3,000m strike length x 900m down dip x 100m thickness

Earn-in Rights Extended

Drilling and Results

Figure 1 Composite schematic cross section illustrating drilling completed over approximately 2,500m of strike length and demonstrating 900m down-dip mineralisation potential

CARNAVALE RESOURCES LIMITED

CARNAVALE RESOURCES LIMITED

Figure 2 Drill hole geology logging showing veins and priority XRF assay results.

CARNAVALE RESOURCES LIMITED

Figure 3 Drill hole locations

CARNAVALE RESOURCES LIMITED

Figure 4 Visible coarse grained cassiterite crystals in drill core

CARNAVALE RESOURCES LIMITED

Forward Programme

For further information contact:

Competent Persons Statement

Forward Looking Statements

Information relating to Previous Disclosure

CARNAVALE RESOURCES LIMITED

Table 3 Drill hole location details

Table 4 Selective priority sampling results (XRF technique)

CARNAVALE RESOURCES LIMITED

Table JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

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CARNAVALE RESOURCES LIMITED Capital/Financing Update 2019