CARNAVALE RESOURCES LIMITED - Capital/Financing Update 2021

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Carnavale to acquire the Barracuda PGE-Ni-Cu Project in Western Australia and Placement to raise $2.22M.

Carnavale Resources Limited (ASX: CAV) is pleased to advise that it has agreed to acquire 100% of the Barracuda Platinum-Palladium-Nickel-Copper (PGE-Ni-Cu) Project (granted license E58/551) located 60km east of the gold mining town of Mt Magnet in the Murchison district of Western Australia.

Highlights

The Barracuda PGE-Cu-Ni Project (48km[2] ) is in the fertile Windimurra mafic ultramafic igneous complex
Outcropping mineralisation on the contact between mafic (gabbroic) and olivine-rich ultramafic rocks assaying up to 8.27g/t platinum group elements (‘PGE’)[6] .
PGE-sulphide minerals identified by WA Geological Survey within the Project area[2] .
Only 1,811m of drilling ever completed by Pancontinental Mining Ltd (‘Pancon’), and no drilling since 1988.[6]
No ground electromagnetic (‘EM’) or Induced Polarisation (‘IP’) geophysical surveys ever conducted.
Project covers multiple coincident Pt-Pd-Cu-Ni soil anomalies identified by Pancon that remain untested.
Commitments received for a capital raising from high net worth overseas, sophisticated and professional investors to raise $2.1 million (‘Placement’).
CAV Directors, Mr Ron Gajewski and Mr Andrew Beckwith have committed to subscribe for a total of $126,000 which will be additional to and on the same terms as the Placement (‘Director Placement Securities’).

The funds raised will be used to acquire the Project, fund the initial exploration work and provide working capital. The exploration program will include an airborne EM survey and detailed review of the Project geochemistry and aeromagnetics.

Chairman Ron Gajewski commented:

“We are delighted to have been able to acquire a new Platinum, Palladium, Nickel, Copper exploration project in Western Australia with high-grade PGE mineralisation identified at surface. The Company will now contract an airborne electromagnetic survey, to be followed swiftly up by ground EM and analysis of the geochemistry to identify drill targets as soon as possible. This new project is a great fit with our existing exploration opportunities in nickel and gold.”

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Barracuda Ni Cu PGE Project

Outcropping PGE mineralisation assaying 8.27g/t PGE was discovered by Pancon in 1987 on the contact between mafic and olivine-rich ultramafic rocks. Subsequently, PGE-sulphide minerals were identified in the rocks by the Western Australia Geological Survey in 2016.

This highly prospective area has the potential to host substantial magmatic, mafic-ultramafic intrusionrelated Pt-Pd-Ni-Cu sulphide deposits and has received no attention since Pancon drilled 1,811m of diamond and shallow (<100m) RC holes in 1988[6] .

CAV intends to apply the latest airborne EM technology to delineate conductors for drill testing as no ground-based electrical geophysical surveys (EM, IP) have ever been conducted within E58/551.

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Figure 1, Location of the Barracuda PGE-Ni-Cu Project Area (E58/551)

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Historical Exploration

Pancon held exploration licenses over most of the Windimurra Igneous Complex between 1985 and 1990 and targeted magmatic PGE-Ni-Cu sulphide mineralisation. Their exploration culminated in the discovery of outcropping magmatic PGE-Cr-Ni-Cu mineralisation in October 1987[5] within the area now secured by E58/551.

Pancon initially conducted geological mapping and drainage sampling to identify and delineate PGE anomalous catchments and favourable geology. These areas were then followed-up with traverses of close-spaced (10m) soil sampling (-80 mesh) on lines 200m to 800m apart. Unfortunately, this soil assay data (Cu, Ni, Pt, Pd) was only ever presented graphically (analogue) as stacked line profiles[6] . It is possible to rebuild digital assay tables from the Pancon diagrams to enable advanced data manipulation and reinterpretation – a process that CAV will undertake, and it is likely to identify new drill targets when interpreted in conjunction with new, and the first ground EM survey data.

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Figure 2, Location of Pancon. Drill Holes (yellow) and rock chip samples (blue)

Pancon drilled seven diamond (WO-1 to W0-7) and 15 RC percussion (WP-1 to WP-15) holes (Table 1) for a total of 1,811m, and concluded that the Wondinong area (now within E58/551) contains some of the most fertile (least evolved), metal-rich (PGE-Ni-Cu), olivine-bearing mafic (gabbroic) and ultramafic rocks within the Windimurra Igneous Complex. Rock-chip samples assayed up to 3.15g/t Platinum and 4.30g/t Palladium, 0.38g/t Rhodium and 0.34g/t Rubidium (Figure2 and 3), and PGE-sulphide minerals were identified in rock samples by Pancon[6] , and subsequently confirmed by the Western Australia Geological Survey in 2016[2] .

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Pancon’s drilling in 1988 intersected broad intervals (>20m) of olivine-bearing gabbroic rocks that contain anomalous copper (200 to 800ppm Cu), nickel (200 to 800ppm Ni) and platinum-palladium (100 to 500ppb Pt+Pd), which further highlights the fertility of the system, and a number of higher-grade intervals associated with magmatic sulphide were delineated by their limited drilling (tabulated below).

Hole No.	Interval(m)	Ptppb	Pdppb	Pt + Pd
WO-2	10-11	430	1200	1.63g/t
WP-3	40-41	760	680	1.44g/t
WP-12	20-21	215	580	795ppb

No further holes were drilled and no further exploration for magmatic PGE-Ni-Cu sulphide has been conducted within the area since 1990. Pancon relinquished its exploration license (E58/41) in August 1991.

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Figure 3, Outcropping PGE mineralization at the Barracuda PGE-Ni-Cu Project.

Location: 634164E 6901306N, Zone 50, GDA-94

Pancon had a focused drilling campaign following the discovery of the outcropping PGE mineralisation. However, CAV intends to take a broader approach to evaluating this fertile intrusive sequence of maficultramafic rocks by applying technologies that were not available to Pancon at the time such as helicopterborne airborne EM.

Exploration Strategy

CAV intends to undertake initial fieldwork at the Barracuda project as soon as possible. The proposed work program includes;

Fly the Project area with airborne EM (used by Chalice Mining Limited (ASX:CHN) to define the Julimar PGE- Ni-Cu-Co-Au discovery).
Digitally capture the Pancontinental soil geochemistry and contour the PGE, Ni,and Cu data to define metal-anomalous trends.
Follow-up airborne EM anomalies with ground EM, with priority given to areas with established, coincident PGE-Cu-Ni soil anomalism.
Drill-test targets subject to results.

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Project Acquisition Terms

CAV has agreed to acquire 100% of the Barracuda PGE-Ni-Cu Project E58/551, from Corporate & Resource Consultants Pty. Ltd (‘CRC’) and Bruce Legendre (‘BL’) (‘Vendors’). The Vendors are not a related party of the Company.

CAV has paid a $10,000 non-refundable deposit, with the balance of $40,000 in cash and 20 million fully paid ordinary shares in CAV payable at settlement to the Vendors of the Project (pursuant to CAV’s existing placement capacity under Listing Rule 7.1).

Settlement will occur 5 business days after Ministerial consent has been granted for the transfer and the Vendors have transferred the title of E58/551 to CAV.

In addition, CAV will also grant the vendors a 0.5% Net Smelter Return (‘NSR’) royalty on minerals produced from the tenement.

Capital raising

CAV has received support for a Placement from overseas, sophisticated and professional investors to raise $2.1 million (‘Placement’). CAV proposes to issue 300 million shares at an issue price of $0.007 per share, together with 150 million free attaching options (exercisable at $0.01 on or before 31 July 2022).

Golden Triangle Capital Pty Ltd (‘GTCap’) has been appointed as Lead Manager for the Placement. For managing the capital raising (including obtaining the firm commitments), GTCap (or its nominee) will receive a 6% capital raising fee and subject to shareholder approval, 40 million unlisted options exercisable at $0.01 each on or before 31 July 2022.

The funds raised will be used to acquire the Project, fund the initial exploration program at the Barracuda project, fund ongoing and planned exploration programs at the Company’s existing projects and provide working capital. The exploration program will include an airborne EM survey and detailed review of the Project geochemistry and aeromagnetics.

200 million ordinary shares will be issued under the Company’s existing placement capacity under Listing Rule 7.1A and 100 million ordinary shares under Listing Rule 7.1. The Placement is scheduled to close on or around 16 March 2021. 150 million free attaching options will be issued to the participants of the Placement subject to shareholder approval, at a general meeting of shareholders scheduled for May 2021.

Director participation

CAV Chairman, Mr Ron Gajewski has committed to subscribe for 15 million new ordinary shares (and 7.5 million attaching options) totalling $105,000 and CAV director, Mr Andrew Beckwith has committed to subscribe for 3 million new ordinary shares (and 1.5 million attaching options) totalling $21,000 (“Director Placement Securities”). The Director Placement Securities require the approval of shareholders pursuant to Listing Rule 10.11.

All new shares issued pursuant to the Placement will rank equally with existing fully paid ordinary shares in the Company.

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

For further information contact:

Ron Gajewski Humphrey Hale

Chairman

Managing Geologist

P: +61 8 9380 9098

Competent Persons Statement

The information that relates to Exploration Results for the projects discussed in this announcement represents a fair and accurate representation of the available data and studies; and is based on, and fairly represents information and supporting documentation reviewed by Mr. Humphrey Hale, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr. Hale is a Consultant to Carnavale Resources Limited. Mr. Hale 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. Hale 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, programs, 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

References

1 BARNES, S.J., HILL, R.E.T., (Eds.) 1991. Mafic-Ultramafic Complexes of Western Australia, Sixth International Platinum Symposium Excursion Guidebook No. 3. Geological Society of Australia (W.A. Division).

2 IVANIC, T.J. 2016. A field guide to the mafic-ultramafic intrusions of the Youanmi Terrane, Yilgarn Craton. GSWA Record 2016/6.

3 IVANIC, T.J., WINGATE, M.T.D., KIRKLAND, C.L., VAN KRANENDONK, M.J., WYCHE, S. 2010. Age and significance of voluminous mafic-ultramafic magmatic events in the Murchison Domain, Yilgarn Craton. Australian Journal of Earth Sciences 57, 597-614.

Pancontinental Mining Ltd. reports

4 WAMEX A21081 , First Annual Report Windimurra Project June 1986 to June 1987. Company Report

5 WAMEX A23847 , Second Annual Report Windimurra Project June 1987 to June 1988. Company Report

6 WAMEX A28015 , Third Annual Report Windimurra Project June 1988 to June 1989. Company Report

7 WAMEX A33863 , Fourth Annual Report Windimurra Project June 1989 to June 1990. Company Report

8 WAMEX reports can be viewed on the Department of Mines, Industry Regulation and Safety website and at the following address https://www.dmp.wa.gov.au/Geological-Survey/Mineral-explorationReports-1401.aspx

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Table 1. Holes drilled by Pancontinental Mining Limited 1988 (WAMEX A28015[6] )

Hole No.	Hole Type	East GDA-94 z50	North GDA-94 z50	Grid East	Grid North	Angle (deg)	Azimuth (mag)	Depth (m)
WO-1	Diamond	633771	6901478	14600	19230	-55	310	210
WO-2	Diamond	634192	6901259	14700	18766	-55	310	98
WO-3	Diamond	634465	6900904	14600	18330	-55	310	174
WO-4	Diamond	634320	6901154	14700	18601	-55	310	165
WO-5	Diamond	633370	6901809	14600	19750	-55	310	34
WO-6	Diamond	633274	6901889	14600	19875	-55	310	110
WO-7	Diamond	633652	6901576	14600	19385	-55	310	89
WP-1	RC Perc	634611	6900783	14600	18140	-55	310	51
WP-2	RC Perc	634624	6901551	15200	18620	-55	310	65
WP-3	RC Perc	634662	6901519	15200	18570	-55	310	63
WP-4	RC Perc	634601	6901570	15200	18650	-55	310	60
WP-5	RC Perc	633794	6899771	13300	18125	-55	310	62
WP-6	RC Perc	633840	6899733	13300	18065	-55	310	63
WP-7	RC Perc	633755	6899803	13300	18175	-55	310	25
WP-8	RC Perc	633350	6900528	13600	18950	-55	310	81
WP-9	RC Perc	633396	6900490	13600	18890	-55	310	75
WP-10	RC Perc	634380	6900974	14600	18440	-55	310	51
WP-11	RC Perc	634341	6901006	14600	18490	-55	310	57
WP-12	RC Perc	634197	6901255	14700	18760	-90	vertical	28
WP-13	RC Perc	633671	6901820	14800	19525	-55	310	81
WP-14	RC Perc	635093	6903499	17000	19500	-55	310	69
WP-15	RC Perc	634577	6901589	15200	18680	-55	310	100
							Total (m)	1811

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JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

( Criteria in this section apply to all succeeding sections )

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
*Sampling*		Nature and quality of sampling (e.g.	Drilling (Pancontinental Mining Limited,
*techniques*		cut channels, random chips, or		1987-1989 WAMEX A28015)
		specific specialised industry standard measurement tools		Pancontinental Mining Limited (Pancon) has not recorded the name of the company that
		appropriate to the minerals under		conducted the drilling in their historical
		investigation, such as down hole		1980’s annual reports.
		gamma sounds, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.		A total of 1811m of drilling was completed in 1988, comprising 7 diamond holes (880m) and 15 RC percussion (931m). Holes were drilled grid north (310deg magnetic) at either
		Include reference to measures taken		-55deg (diamond holes) or -60deg (RC
		to ensure sample representivity and		holes). One RC hole (unsuccessful water
		the appropriate calibration of any		bore) was vertical.
		measurement tools or systems used.		Drill hole positions were recorded by Pancon relative to a surveyed local grid (no GPS
		Aspects of the determination of		system available at the time), and many
		mineralisation that are Material to		have subsequently been located and
		the Public Report.		positioned by Corporate & Resource
		In cases where ‘industry standard’		Consultants Pty Ltd (CRC) using a hand-
		work has been done this would be		held GPS. PVC collars could still be found in
		relatively simple (e.g. ‘reverse		many cases. Once the precise location
		circulation drilling was used to		(GDA-94) of some holes were established
		obtain 1 m samples from which 3 kg		from recording the location of PVC collars,
		was pulverised to produce a 30 g		the location of other holes with no PVC
		charge for fire assay’). In other		collar protruding could then be determined
		cases more explanation may be		to an estimated +/- 10m accuracy. This
		required, such as where there is		accuracy was confirmed for these unmarked
		coarse gold that has inherent		holes from the RC chips located lying on the
		sampling problems. Unusual		surface even though a drill hole collar could
		commodities or mineralisation types		not be identified.
		(e.g. submarine nodules) may warrant disclosure of detailed		RC drill cuttings were collected in a cyclone and split on-site, and the cuttings were
		information.		sampled on 1m intervals. Nominal 3kg
				samples was sent to Genalysis in Perth for a
				total mix and grind and then Pt, Pd and Au
				determined using a 50g charge fire assay
				(lead collection) ICP/MS. Cu and Ni
				determined by single acid digest AAS.
				NQ diamond core was sawn in the field and
				half-core sampled on 1m intervals. Assay
				methods were the same as those used for
				the RC chips (dot point above).
				The samples were collected by Pancon
				staff, and the samples were always kept
				under the direct control of Pancon staff.
				Samples were transported to the laboratory
				(Genalysis) in Perth by Pancon staff.
			Soils 1987 Program (Pancontinental Mining
				Limited, WAMEX A23847)
				Soil samples (the total number has not been
				determined)were collectedin 1987by

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Criteria	JORC Code explanation	Commentary	Commentary
			trained and experienced Pancon field
			technicians.
			Samples were collected at 10m intervals
			along lines spaced 200m to 800m apart.
			The samples were collected by digging and
			removing soil from shallow holes (~15cm
			deep). The soil from each sample pit was
			sieved to minus 165 microns using stainless
			steel sieves and approximately 200g of the
			sieved material collected in craft (paper)
			bags.
			The QA/QC data collected over the course
			of the program indicate no issues were
			encountered with the analytical method and
			assay results.
			The data (sample number, grid location,
			comments) was collected and stored
			manually (written onto sample sheets) in the
			field.
			Samples were assayed in Perth by
			Genalysis. The nominal 200g samples went
			through a total mix and grind and then Pt,
			Pd and Au determined using a 50g charge
			for fire assay (lead collection) ICP/MS. Cu
			and Ni were determined by single acid
			digest AAS.
		Drainage Samples (Pancontinental Mining
			Limited)
			Drainage samples were collected by trained
			and experienced Pancon field technicians,
			at a nominal sample density of 10 sample
			sites per square km.
			The samples were collected by digging and
			removing soil from shallow holes (~10cm
			deep). The stream sediment from each
			sample pit was then sieved to minus 165
			microns using a stainless-steel sieve and
			approximately 200g of the sieved material
			collected in craft (paper) bags.
			Heavy mineral trap sites were avoided as
			sample sites.
			The QA/QC data collected over the course
			of the program indicate no issues were
			encountered with the analytical method and
			assay results.
			The data (sample number, grid location,
			comments) was collected and stored
			manually in the field.
			Samples were assayed in Perth by
			Genalysis. The nominal 200g samples went
			through a total mix and grind and then Pt,
			Pd and Au determined using a 50g charge
			for fire assay (lead collection) ICP/MS. Cu
			and Ni determined by single acid digest
			AAS.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
			Rock-chip Samples (Pancontinental Mining
				Limited)
				Each sample is a composite of
				approximately 5 pieces of rock collected
				within a 3m radius of the recorded sample
				point to give a total sample weight of
				approximately 3kg.
				The samples were secured at the Pancon
				camp-site before being driven to the
				laboratory (Genalysis in Perth) by Pancon
				staff.
				The laboratory’s standard QA/QC
				procedures were carried out.
				The samples went through a total mix and
				grind and then Pt, Pd and Au was
				determined using a 50g charge for fire assay
				(lead collection) ICP/MS. Cu and Ni
				determined by single acid digest AAS.
				Pt, Pd, Rh, Ru, Os, Ir was determined for a
				few samples by 30g fire assay (nickel
				sulphide collection) ICP/MS.
*Drilling techniques*		Drill type (e.g. core, reverse		RC percussion and diamond core were the
		circulation, open-hole hammer,		drilling methods chosen by Pancon. Aircore
		rotary air blast, auger, Bangka,		was not considered an appropriate drilling
		sonic, etc.) and details (e.g. core		method because of the shallow depth of
		diameter, triple or standard tube,		weathering.
		depth of diamond tails, face-		The RC holes were drilled with a face-
		sampling bit or other type, whether core is oriented and if so, by what method, etc.).		sampling hammer using industry practice drilling methods. Diamond NQ drill core was collected using
				double tube and all other industry practice
				methods.
*Drill sample*		Method of recording and assessing		This information was not reported by
*recovery*		core and chip sample recoveries		Pancon, but recoveries were very high due
		and results assessed.		to the absence of ground water, thin (<2m)
		Measures taken to maximise		or absent transported cover, absence of
		sample recovery and ensure representative nature of the		faults and shears, and the high competency (unbroken nature) of the gabbroic rocks.
		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.
*Logging*		Whether core and chip samples		Comprehensive drill logs for all holes have
		have been geologically and		been reported by Pancon (WAMEX
		geotechnically logged to a level of		A28015).
		detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.		Cumulate terminology was used where the model proportions of olivine (o), clinopyroxene (a), orthopyroxene (b),
		Whether logging is qualitative or		plagioclase (p), chromite (c) and sulphide (s)
		quantitative in nature. Core (or		were recorded for each igneous stratigraphic
		_costean, channel, etc.) photography. _		unit. ‘C’ was used to distinguish cumulate

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		The total length and percentage of		phases from post-cumulus poikilitic phases
		the relevant intersections logged.		(*). Pegmatoidal, non-cumulus units were
				also logged (peg).
*Sub-sampling*		If core, whether cut or sawn and		RC drill cuttings were collected in a cyclone
*techniques and*		whether quarter, half or all core		and split on-site, and the cuttings were
*sample preparation*		taken.		sampled by Pancon staff on 1m intervals.
	   	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	 	Nominal 3kg drill-chip samples were sent to Genalysis in Perth for a total mix and grind and then Pt, Pd and Au determined using a 50g charge for fire assay (lead collection) ICP/MS. Cu and Ni determined by single acid digest AAS. NQ diamond core was sawn in the field and half-core sampled on 1m intervals. Assay methods were the same as that used for the RC chips. The samples were collected by Pancon staff, and the samples were always under the direct control of Pancon staff.
		duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	 	Samples were transported to the laboratory (Genalysis) in Perth by Pancon staff. The sample sizes were considered appropriate for early-stage exploration.
*Quality of assay*		The nature, quality and
*data and* *laboratory tests*		appropriateness of the assaying and laboratory procedures used and		Laboratory QA/QC samples involving the use of blanks, duplicates, standards
		whether the technique is considered		(certifies reference materials) and replicates
		partial or total.		were uses as part of in-house procedures.
		For geophysical tools, spectrometers, handheld XRF		Check samples were also sent to Germany for check analyses by Pancon’s JV project
		instruments, etc., the parameters		partner, Degussa Ag.
		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.
*Verification of*		The verification of significant		Results were verified by Pancon project
*sampling and*		intersections by either independent		management.
*assaying*		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.
*Location of data*		Accuracy and quality of surveys		The drillcollarpositionswererecorded

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
*points*		used to locate drill holes (collar and		relative to a surveyed local grid.
		down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.		Hole positions have subsequently been recorded using a hand-held GPS as the PVC collars for most holes could be located
		Specification of the grid system		in the field trip undertaken in 2021, and the
		used.		position of these holes were then used to
		Quality and adequacy of topographic control.		establish the position of the survey grid to an accuracy of +/- 20m.
				The grid has now been positioned (+/- 20m)
				in GDA-94, Zone 50.
				Variation in topography is approximately
				20m within the drill zone.
*Data spacing and*		Data spacing for reporting of		Drill holes were positioned to test specific
*distribution*		Exploration Results.		parts of the igneous stratigraphy that gave
		Whether the data spacing and distribution is sufficient to establish		an anomalous Cu-Ni-Pt-Pd response in the soil geochemistry.
		the degree of geological and grade		No ground electrical geophysical techniques
		continuity appropriate for the		(EM or IP) were used to target drill holes.
		Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	 	Pancon geologists supervised all drilling. No resource estimation drilling was undertaken.
		Whether sample compositing has
		been applied.
*Orientation of data*		Whether the orientation of sampling		Surface sampling and the positions of the
*in relation to*		achieves unbiased sampling of		drill holes, sampling techniques and the
*geological*		possible structures and the extent to		intervals sampled (all intervals drilled) are
*structure*		which this is known, considering the		considered appropriate for the early-stage
		deposit type.		exploration of a large mafic-ultramafic
		If the relationship between the		igneous complex.
		drilling orientation and the		Due to the shallow depth of weathering,
		orientation of key mineralised		surface depletion or enrichment of metals in
		structures is considered to have		the weathered zone was not considered to
		introduced a sampling bias, this		be a significant issue.
		should be assessed and reported if
		material.
*Sample security*		The measures taken to ensure		Chain of Custody was managed by Pancon
		sample security.		staff. The samples were taken directly to the
				laboratory (Genalysis, Perth) by Pancon
				staff with appropriate documentation listing
				sample numbers, sample batches, and
				required analytical methods and element
				determinations.
*Audits or reviews*		The results of any audits or reviews		No additional QA/QC has been conducted
		of sampling techniques and data.		on the drilling as the core, RC chip residues,
				and the drainage, soil and rock-chip sample
				pulps are no longer stored and they are
				presumed lost due to the age of the drilling
				(conducted 34 years ago) and a series of
				company mergers and the delisting of
				Pancontinental Mining Limited.
				Carnavale considers the Pancon assay data
				to be highly reliable and accurate given the
				analytical method used by Pancon to
				determine Pt, Pd and Au – fire assay (lead
				collection) ICP/MS.

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Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	*Commentary*	*Commentary*
*Mineral tenement*		Type, reference name/number,		E58/551 is registered to Corporate &
*and land tenure*		location and ownership including		Resource Consultants Pty Ltd and BR
*status*		agreements or material issues with		Legendre, and 100% ownership is to be
		third parties such as joint ventures,		transferred once Ministerial Approval has been
		partnerships, overriding royalties,		granted.
		native title interests, historical sites, wilderness or national park and environmental settings.		The exploration license (E58/551) is in good standing and payment of all statutory fees is managed by CRC.
		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.		E58/551 is currently in its first year (license granted 7 July 2020) and the first year’s minimum expenditure commitment has been met.
				There are no known impediments to operating
				in this area.
				There are no Native Title Claims.
				The tenement area falls on two Pastoral
				properties – Challa and Wondinong.
*Exploration done*		Acknowledgment and appraisal of		No exploration (soil sampling, drilling) for Pt-
*by other parties*		exploration by other parties.		Pd-Cu-Ni mineralisation has been undertaken
				within the area now covered by E58/551 since
				Pancon’s work in the late 1980’s.
				The area has been held by other companies,
				but no substantive additional exploration work
				appears to have been undertaken.
*Geology*		Deposit type, geological setting and		The project is considered to be prospective for
		style of mineralisation.		mafic-ultramafic hosted, magmatic, Pt-Pd-Ni-
				Cu sulphide deposits. Orogenic gold deposits
				associated with the north-trending shear-
				zones will also be considered and evaluated.
*Drill hole*		A summary of all information		All Pancon drill hole information is on the
*Information*		material to the understanding of the		public record and can be found in WAMEX
		exploration results including a		reports A21081 (1986-1987), A23847 (1987-
		tabulation of the following		1988), A28018 (1988-1989) and A33863
		information for all Material drill		(1990-1991).
		holes:
		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.
*Data aggregation*		In reporting Exploration Results,		Carnavale is not aware of any new information
*methods*		weighting averaging techniques,		or data that materially affects the information
		maximum and/or minimum grade		in this announcement.
		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	 	Carnavale has no reason to question the accuracy or veracity of the information reported by Pancon. Pancon’s chosen analytical techniques for Pt, Pd, Rh, Ru, Os and Ir are industry best- practice: fire assay (lead collection) ICP/MS for Pt and Pd, and fire assay (nickel sulphide collection)ICP/MS for Pt,Pd,Rh,Ru,Os and

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Criteria	JORC Code explanation	JORC Code explanation	*Commentary*	*Commentary*
		used for such aggregation should be		Ir.
		stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any	 	No data has been aggregated in the reporting of the historical exploration results. No metal equivalents have been used.
		reporting of metal equivalent values
		should be clearly stated.
*Relationship*		These relationships are particularly		The historical drilling by Pancon was
*between*		important in the reporting of		reconnaissance in nature and designed to test
*mineralisation*		Exploration Results.		Cu-Ni-Pt-Pd soil anomalies in prospective
*widths and* *intercept lengths*		If the geometry of the mineralisation with respect to the drill hole angle is		mafic and ultramafic igneous rocks of the Windimurra Igneous Complex.
		known, its nature should be		The geology (lithological associations, metal
		reported.		associations, fractionation sequences and
		If it is not known and only the down hole lengths are reported, there should be a clear statement to this		fractionation reversals) has been determined to be consistent with that of a large, potentially mineralised (Cu-Ni-PGE), mafic-ultramafic
		effect (e.g. ‘down hole length, true width not known’).		magmatic system. The initial and only phase of drilling (Pancon,
				1987) was designed to investigate the
				potential for Ni-Cu-Pt-Pd magmatic sulphide
				mineralisation to be present beneath the soil
				anomalies, and this was confirmed by Pancon.
				The absence of historical ground electrical
				surveys (EM, IP) has left the potential for
				untested, subcropping or blind, more massive
				accumulations of Ni-Cu-Pt-Pd sulphide to be
				present within the project area.
*Diagrams*		Appropriate maps and sections (with		All diagrams are designed to give the reader
		scales) and tabulations of intercepts		an accurate and comprehensive overview of
		should be included for any		the project location, work-programs
		significant discovery being reported		(completed and planned) and discovery
		These should include, but not be		potential as new targets are defined (e.g.
		limited to a plan view of drill hole		geophysical anomalies).
		collar locations and appropriate
		sectional views.
*Balanced reporting*		Where comprehensive reporting of		Comprehensive and detailed exploration
		all Exploration Results is not		reporting by Pancon in available on the public
		practicable, representative reporting		record and can be found in WAMEX reports
		of both low and high grades and/or		A21081 (1986-1987), A23847 (1987-1988),
		widths should be practiced to avoid		A28018 (1988-1989) and A33863 (1990-
		misleading reporting of Exploration		1991).
		Results.
*Other substantive*		Other exploration data, if meaningful		Ground-based Electrical Geophysical
*exploration data*		and material, should be reported		Surveys (IP, EM):none ever completed.
		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		Aeromagnetics:The WA Geological Survey state aeromagnetic data, which was downloaded from the government Data Centre, has been re-imaged to enhance features that are relevant to the geology and style of mineralisation being investigated. Flight line spacing for this data is 200m.
		characteristics; potential deleterious
		or contaminating substances.
*Further work*		The nature and scale ofplanned		Carnavaleplans to surveythe area with high-

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JORC Code explanation	JORC Code explanation	*Commentary*	*Commentary*
	further work (e.g. tests for lateral		resolution helicopter-borne EM, and to
	extensions or depth extensions or		reconstruct digital data files from the analogue
	large-scale step-out drilling).		plots of soil geochemistry (histogram line
	Diagrams clearly highlighting the		profiles) reported by Pancon (A23847).
	areas of possible extensions,		Both sources of data will then be used to
	including the main geological		establish priority areas for follow-up ground
	interpretations and future drilling		EM surveys and the drill testing of the
	areas, provided this information is		modelled conductive plates if considered
	not commercially sensitive.		robust investment opportunities.

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AI assistant

CARNAVALE RESOURCES LIMITED Capital/Financing Update 2021

64607_rns_2021-03-10_5fa0785e-fe64-46a3-9c04-ee6dc66a7b6a.pdf

Carnavale to acquire the Barracuda PGE-Ni-Cu Project in Western Australia and Placement to raise $2.22M.

Highlights

Chairman Ron Gajewski commented:

Barracuda Ni Cu PGE Project

Historical Exploration

Exploration Strategy

Project Acquisition Terms

Capital raising

Director participation

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

For further information contact:

Ron Gajewski Humphrey Hale

Competent Persons Statement

Forward Looking Statements

Information relating to Previous Disclosure

References

Pancontinental Mining Ltd. reports

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

AI assistant

CARNAVALE RESOURCES LIMITED — Capital/Financing Update 2021

64607_rns_2021-03-10_5fa0785e-fe64-46a3-9c04-ee6dc66a7b6a.pdf

Carnavale to acquire the Barracuda PGE-Ni-Cu Project in Western Australia and Placement to raise $2.22M.

Highlights

Chairman Ron Gajewski commented:

Barracuda Ni Cu PGE Project

Historical Exploration

Exploration Strategy

Project Acquisition Terms

Capital raising

Director participation

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

For further information contact:

Ron Gajewski Humphrey Hale

Competent Persons Statement

Forward Looking Statements

Information relating to Previous Disclosure

References

Pancontinental Mining Ltd. reports

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Section 2 Reporting of Exploration Results

More from CARNAVALE RESOURCES LIMITED

CARNAVALE RESOURCES LIMITED Capital/Financing Update 2021