CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2020

Aug 30, 2020

CARNAVALE RESOURCES LIMITED

==> picture [86 x 57] intentionally omitted <==

31 August 2020

The Manager ASX Market Announcements ASX Ltd Level 4, 20 Bridge Street Sydney, NSW 2000

LISTED OPTIONS EXPIRING 30 SEPTEMBER 2020 (ASX CODE: CAVOA)

Carnavale Resources Limited (ASX: CAV) (“Carnavale” or the “Company”) advises that the attached letter (accompanied by the Option Exercise Form) has been sent to holders of listed options (ASX: CAVOA) exercisable at $0.007 expiring on 30 September 2020.

Please note that the last date for quotation of the CAVOA options on the ASX will be Thursday 24 September 2020.

For further information please contact the Company Secretary on +61 8 9380 9098 or alternatively via email on admin@carnavaleresources.com.

This release is approved by the Board of Carnavale Resources Limited.

Carnavale Resources Limited ABN 49 119 450 243

1

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

CARNAVALE RESOURCES LIMITED

==> picture [86 x 57] intentionally omitted <==

31 August 2020

Optionholder Name Optionholder Address Optionholder Address

Dear Option Holder

LISTED OPTIONS EXPIRING 30 SEPTEMBER 2020 (ASX CODE: CAVOA)

The Company’s records indicate that you are the holder of options to subscribe for fully paid ordinary shares in the Company (ASX: CAVOA Class). Your option holding may be exercised in whole or in part by payment of $0.007 for each option by no later than 30 September 2020. If payment is not received by 5:00pm (WST) on 30 September 2020 the options will lapse and all rights under the options will cease at that time.

Some of the courses of action available to you as a holder of these soon to expire options are:

• a) Exercise the options on or before 30 September 2020.

• b) Sell your options. Quotation of the options on ASX will cease at the close of trading on Thursday 24 September 2020.

• c) Do nothing (i.e. allow your options to expire). If you do not exercise or sell your options they will expire on 30 September 2020 and your right to subscribe for ordinary shares in Carnavale Resources Limited at $0.007 per share will lapse.

There is no obligation on option holders to exercise their options. However, under paragraph 5.1 of Appendix 6A of the Australian Securities Exchange ( ASX ) Listing Rules, the Company is required to advise option holders of the information contained in this notice.

The closing market sale price of ordinary shares in the Company on ASX was $0.008 on 28 August 2020, being the last trading day prior to the date of this notice.

During the three (3) months preceding the date of this notice:

• the highest market sale price of ordinary shares on ASX was $0.009 on 27 August 2020; and

• the lowest market sale price of ordinary shares on ASX was $0.002 on 25 June 2020.

Attached to this notice and forming part of the notice is a CAVOA option exercise form that is personalised to show your holding of CAVOA. To exercise your options please follow the instructions set out on the form.

The Company encourages you to seek your own independent professional advice in deciding whether or not to exercise your options.

Yours faithfully

Paul Jurman Company Secretary

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

2

All Registry Communication to:

==> picture [281 x 56] intentionally omitted <==

Carnavale Resources Limited ABN 49 119 450 243

==> picture [97 x 90] intentionally omitted <==

GPO Box 5193, Sydney NSW 2001 1300 288 664 (within Australia) +61 2 9698 5414 (international)

corporate.actions@automicgroup.com.au

www.automicgroup.com.au

[EntityRegistrationDetailsLine1Envelope] [EntityRegistrationDetailsLine2Envelope] [EntityRegistrationDetailsLine3Envelope] [EntityRegistrationDetailsLine4Envelope] [EntityRegistrationDetailsLine5Envelope] [EntityRegistrationDetailsLine6Envelope]

SRN/HIN: [HolderNumberMasked]

Security Code: CAVOA

Number of Options held: [CAVOAHolding]

Option Expiry Date: 30 September 2020

Exercise Price: $0.007

NOTICE OF EXERCISE OF OPTIONS

I/we hereby exercise the following number of options and make payment in Australian currency for the amount payable. Please allot me/us Ordinary Shares calculated on the basis of one Ordinary Share for every one Option which I/we exercise. I/We agree to accept such Shares subject to the Constitution of Carnavale Resources Limited.

1. Number of Options to be Exercised Total payment required @ $0.007 per Option exercised , , A$ , , .

If the dollar amount paid results in a fraction of a share then the shares allotted will be rounded down.

2. Payment: You can pay either by BPAY, EFT or cheque

Option A – BPAY Option B – Electronic Funds Transfer (EFT)

==> picture [36 x 55] intentionally omitted <==

Biller Code: 337022 Ref No: [BPayCRN]

® Registered to BPAY Pty Ltd ABN 69079137518

Contact your financial institution to make your payment from your cheque or savings account.

Note: You do not need to return this form if you have made payment via BPAY®. Your BPAY® reference number will process your payment to your options exercise electronically.

You should check the processing cut -off time for BPAY® transactions with your bank, credit union or building society to ensure your payment will be received by the Share Registry in time.

The unique reference number which has been assigned to your Application is: CAVOA[HolderId] Funds are to be deposited directly to following bank account: Account name: Automic Pty Ltd Account BSB: 036011 Account number: 607208 Swift Code: WPACAU2S IMPORTANT: You must quote your unique reference number as your payment reference/ description when processing your EFT payment. Failure to do so may result in your funds not being allocated to your application and shares subsequently not issued.

Please email your completed Application Form and payment receipt to the Share Registry at corporate.actions@automicgroup.com.au

Cheque Number BSB Account Number -

If paying by cheque, bank draft or money order, complete and return the completed Notice of Exercise with your payment. The completed Notice of Exercise with your payment must be received by the Registry to Automic Group, GPO Box 5193, Sydney NSW 2001, before 5.00pm (WST) on 30 September 2020.

3. Contact details

Telephone Number Contact Name (PLEASE PRINT) ( ) Email Address SUPPORT YOUR COMPANY: By providing your email address, you elect to receive all communications despatched by the Company electronically (where legally permissible).

4. Please sign below and return the form to corporate.actions@automicgroup.com.au

Securityholder 1 Securityholder 2 Securityholder 3 Sole Director and Company Secretary Director / Company Secretary Director / Company Secretary NOTE: When signed under Power of Attorney, the attorney states that they have not received a notice of revocation. A certified copy of the Power of Attorney must be lodged with this exercise form.