CARNAVALE RESOURCES LIMITED — Share Issue/Capital Change 2014

Oct 9, 2014

CARNAVALE RESOURCES LIMITED ASX RELEASE 10 OCTOBER 2014

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IS S UE O F S EC URITIES

C A RNA VA L E RES O URC ES

A C N 119 450 243

ASX Code: C A V

Shares: 201.7M Options: 166.5M Cash: $1.56M Sept 2014 M.Cap $4.84M (@ $0.024)

Directors

Ron Gajewski (Chairman) Andrew Beckwith (MD)

Klaus Eckhof (NED) Rhett Brans (NED)

Carnavale Resources Limited is an exploration and development company based in Perth, Western Australia.

Carnavale Resources Limited ( A S X: C A V ) (“Carnavale” or the “Company”) is pleased to advise that, following receipt of shareholder approval on 26 September 2014 it has issued the following securities:

 28,663,202 attaching options have been issued to the participants of the Tranche 1 placement, which was undertaken in August 2014;

• 5,969,182 shares at 1.5 cents each together with 5,969,182 free attaching options were issued to nominees of directors, Mr Gajewski and Mr Beckwith raising $89,537; and

 720,000 shares were issued to a nominee of director, Mr Gajewski pursuant to the terms of the Implementation agreement with Tojo Minerals Pty Ltd (“Tojo”), with the shares issued subject to voluntary escrow for a 6 month period. CAV had previously issued 9,780,000 shares to the non-related Tojo shareholders as consideration for the grant of an option to acquire 100% of the share capital of Tojo on or before 28 February 2015, and required shareholder approval before issuing the shares to a nominee of Mr Gajewski.

An Appendix 3B is attached with respect to the new securities issued and the Company gives notice that:

• it issued the securities without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (“Act”);

• this notice is being given under section 708A(5)(e) of the Act;

Carnavale has entered an option to acquire Tojo Minerals Pty Ltd, which has rights to acquire two highly prospective gold-silvercopper projects in Arizona and Nevada, USA.

O ffic e

Level 1, Suite 5 The Business Centre 55 Salvado Rd. Subiaco, WA 6008

P ost

PO Box 131 Subiaco, WA 6008

C ontac tD etails

• as at today’s date, the Company has complied with:

• (i) the provisions of Chapter 2M of the Act as they apply to the Company; and

• (ii) section 674 of the Act; and

 as at today’s date there is no other information that is excluded information which is required to be set out in this notice pursuant to section 708A(6)(e) of the Act.

Yours faithfully

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Paul Jurman

Company Secretary

Ph +61 8 9380 9098 Fax +61 8 9380 6761 admin@carnavaleresources.com

A ppendix 3B N ew issu e annou ncement

Ru le 2.7 ,3.10.3,3.10.4,3.10.5

A ppendix3 B

New issuea nnouncement, a pplica tionforquota tionofa dditiona lsecurities a nda greement

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.

Introd u ced 01/07 /96 O rigin:A ppend ix 5 A mend ed 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

N ame ofentity

C arnavale Resou rces L imited A B N 49 119 450 243

W e (the entity)give A SX the followinginformation.

P a rt1 - A llissues

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

1 +C lass of +secu rities issu ed or to be issu ed 2 N u mberof +secu rities issu ed orto be issu ed (if known)ormaximu m nu mberwhichmaybe issu ed 3 P rincipalterms of the +secu rities (e.g.if options,exercise price and expiry d ate; if partly paid +secu rities,the amou ntou tstand ing and d u e d ates for payment; if +convertible secu rities, the conversion price and d ates for conversion)	1. O rd inaryshares and u nlisted options. 2. O rd inaryshares 3. Unlisted options
	1. 5,969,18 2 O rd inary shares and 5,969,18 2 u nlisted options. 2. 7 20,000 O rd inaryshares 3. 28,663,202 Unlisted options.
	Fu lly paid ord inary shares ranking equ ally with existingshares. Eachu nlisted option is to su bscribe forone ord inary share atan issu e price of 3cents,withan expiryd ate of30 N ovember2016.

+See chapter19 ford efined terms.

A ppend ix 3B P age 2

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A ppendix 3B N ew issu e annou ncement

4 D o the +secu rities rank equ ally in allrespects from the +issu e d ate with an existing +class of qu oted +secu rities? If the ad d itional+secu rities d o not rankequ ally,please state:  the d ate from whichtheyd o  the extent to which they participate for the next d ivid end ,(in the case of atru st, d istribu tion) or interest payment  the extentto whichthey d o not rank equ ally, other than in relation to the next d ivid end , d istribu tionorinterestpayment 5 Issu e price orconsid eration 6 P u rpose ofthe issu e (If issu ed as consid eration for the acqu isition of assets, clearly id entifythose assets) 6a Is the entity an +eligible entity that has obtained secu rity hold er approvalu nd erru le 7 .1A ? If Y es,complete sections 6b –6h in relation to the +securities the subject of this Appendix 3B,and complywithsection6i 6b The d ate the secu rity hold er resolu tion u nd er ru le 7 .1A was passed	The ord inary shares rank equ ally with existing qu oted shares (C A V ). The u nlisted options d o notrank equ ally with an existingclass ofqu oted secu rities.
	1. O rd inary shares at1.5 cents eachwithfree attachingoptions. 2. N on-cash issu e - shares comprise consid eration forthe grantof an option to acqu ire 100% of the share capitalof Tojo M inerals P ty L td (referA SX annou ncement d ated 30 Ju ly2014). 3. N on-cashissu e –options issu ed free as part of the secu rities placementcompleted on 4 A ugu st2014.
	1. To assist with fu nd ing the expend itu re requ ired to satisfy the initialcommitment amou ntin relation to the Tojo P rojects and generalworkingcapital. 2. Issu ed pu rsu ant to settlement of Tojo Implementation A greement (refer A SX annou ncementd ated 30 Ju ly2014). 3. N on-cashissu e –options issu ed free as part of the secu rities placementcompleted on 4 A ugu st2014.
	Y es.
	12 N ovember2013.

+See chapter19 ford efined terms.

A ppend ix 3B P age 3

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A ppendix 3B N ew issu e annou ncement

6c N u mber of +secu rities issu ed withou t secu rity hold er approval u nd erru le 7 .1 6d N u mber of +secu rities issu ed with secu rity hold erapprovalu nd erru le 7 .1A 6e N u mber of +secu rities issu ed with secu rity hold erapprovalu nd erru le 7 .3, or another specific secu rity hold er approval (specify d ate of meeting) 6f N u mberof +secu rities issu ed u nd er anexceptioninru le 7 .2 6g If +secu rities issu ed u nd er ru le 7 .1A ,was issu e price atleast7 5% of 15 d ay V W A P as calcu lated u nd er ru le 7 .1A .3? Inclu d e the +issu e d ate and both valu es. Inclu d e the sou rce of the V W A P calcu lation. 6h If +secu rities were issu ed u nd er ru le 7 .1A for non-cash consid eration,state d ate on which valu ation of consid eration was released to A SX M arket A nnou ncements 6i C alcu late the entity’s remaining issu e capacity u nd er ru le 7 .1 and ru le 7 .1A – complete A nnexu re 1 and release to A SX M arket A nnou ncements 7 +Issu e d ates N ote:The issu e d ate may be prescribed by A SX (referto the d efinition of issu e d ate in ru le 19.12). For example, the issu e d ate for a pro rata entitlementissu e mu stcomply withthe applicable timetable inA ppend ix 7 A . C ross reference:item 33ofA ppend ix 3B . 8 N u mber and +class of all +secu rities qu oted on A SX (_including_the +secu rities insection 2 ifapplicable) 9 N u mber and +class of all +secu rities not qu oted on A SX (_including_the +secu rities insection 2 ifapplicable)	N il	N il
	N il
	1. 5,969,18 2 O rd inary shares and 5,969,18 2 u nlisted options. 2. 7 20,000 O rd inaryshares 3. 28 ,663,202 Unlisted options. The secu rities have been issu ed pu rsu antto prior sharehold erapprovalgranted atameetingheld on 26 September2014.
	N il.
	N /A .
	N /A
	L istingru le 7 .1 – 30,267 ,8 02. L istingru le 7 .1A –20,17 8 ,534.
	10 O ctober2014.
	N u mber	+C lass
	201,7 8 5,348 *	O rd inaryShares (C A V ).
	N u mber	+C lass
	166,458 ,8 36	Unlisted O ptions exercisable at3 cents on or before 30 N ovember 2016.

+See chapter19 ford efined terms.

A ppend ix 3B P age 4

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A ppendix 3B N ew issu e annou ncement

• Inclu d es 9,7 8 0,000 ord inaryshares thatare su bjectto avolu ntaryescrow foraperiod ofsix months from issu e,expiringon14 Febru ary2015and 7 20,000 ord inaryshares thatare su bjectto avolu ntary escrow foraperiod ofsix months from issu e,expiringon10 A pril2015.

• 10 D ivid end policy (in the case of a N o plans to payd ivid end s atthis stage. tru st,d istribu tion policy) on the increased capital(interests)

P a rt2 - P rora ta issue– NotA pplica b le

	**P a rt2 - P rora ta **
11	Is secu rity hold er approval
	requ ired ?
12	Is the issu e renou nceable or non-
	renou nceable?
13	Ratio in which the +secu rities will
	be offered
14	+C lass of +secu rities to which the
	offerrelates
15	+Record d ate to d etermine
	entitlements
16	W illhold ings on d ifferentregisters
	(or su bregisters) be aggregated for
	calcu latingentitlements?
17	P olicy for d ecid ing entitlements in
	relationto fractions
18	N ames of cou ntries in which the
	entity has secu rity hold ers who will
	notbe sentnew offerd ocu ments
	N ote: Secu rity hold ers mu st be told how their
	entitlements are to be d ealtwith.
	C ross reference:ru le 7 .7 .
19	C losing d ate for receipt of
	acceptances orrenu nciations
20	N ames ofanyu nd erwriters
21	A mou ntof any u nd erwriting fee or
	commission
22	N ames ofanybrokers to the issu e

+See chapter19 ford efined terms.

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A ppendix 3B N ew issu e annou ncement

23	Fee or commission payable to the
	brokerto the issu e
24	A mou ntofanyhand lingfee payable
	to brokers who lod ge acceptances
	or renu nciations on behalf of
	secu rityhold ers
25	If the issu e is contingenton secu rity
	hold ers’approval,the d ate of the
	meeting
26	D ate entitlement and acceptance
	form and offer d ocu ments willbe
	sentto persons entitled
27	If the entity has issu ed options,and
	the terms entitle option hold ers to
	participate on exercise,the d ate on
	whichnotices willbe sentto option
	hold ers
28	D ate rights trad ing willbegin (if
	applicable)
29	D ate rights trad ing will end (if
	applicable)
30	H ow d o secu rity hold ers selltheir
	entitlements in full throu gh a
	broker?
31	H ow d o secu rityhold ers sell_part_of
	their entitlements throu gh abroker
	and acceptforthe balance?
32	H ow d o secu rity hold ers d ispose of
	their entitlements (except by sale
	throu ghabroker)?
33	+Issu e d ate

P a rt3 - Q uota tionofsecurities

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

34 Type of[+] secu rities ( tick one ) (a) √ +Secu rities d escribed inP art1 –O rd inaryshares only. (b) A llother[+] secu rities

Example:restricted secu rities atthe end of the escrowed period ,partly paid secu rities thatbecome fu lly paid ,employee incentive share secu rities whenrestrictionend s,secu rities issu ed onexpiryorconversionofconvertible secu rities

+See chapter19 ford efined terms.

A ppend ix 3B P age 6

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A ppendix 3B N ew issu e annou ncement

Entitiestha tha vetickedb ox3 4 (a )

A dditionalsecu rities forminganew class of secu rities

Tick to indicate you are providing the information or documents

• 35 If the[+] secu rities are[+] equ ity secu rities,the names of the 20 largesthold ers of the ad d itional[+] secu rities,and the nu mberand percentage of ad d itional[+] secu rities held by those hold ers

36 If the +secu rities are +equ ity secu rities,a d istribu tion sched u le of the ad d itional +secu rities settingou tthe nu mberofhold ers inthe categories 1 -1,000 1,001 -5,000 5,001 -10,000 10,001 -100,000 100,001 and over

37 A copyofanytru std eed forthe ad d itional[+] secu rities

Entitiestha tha vetickedb ox3 4 (b )

38 N u mber of +secu rities for which +qu otationis sou ght 39 +C lass of +secu rities for which qu otationis sou ght

• 40 D o the[+] secu rities rankequ ally in all respects from the[+] issu e d ate withan existing[+] class ofqu oted[+] secu rities?

If the ad d itional[+] secu rities d o not rankequ ally,please state:

• the d ate from whichtheyd o

• the extent to which they participate forthe nextd ivid end , (in the case of a tru st, d istribu tion)orinterestpayment

• the extentto which they d o not rank equ ally, other than in relation to the next d ivid end , d istribu tionorinterestpayment

+See chapter19 ford efined terms.

A ppend ix 3B P age 7

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A ppendix 3B N ew issu e annou ncement

41 Reason for requ est for qu otation now Example:In the case of restricted secu rities,end of restrictionperiod (if issu ed u pon conversion of another +secu rity, clearly id entify thatother+secu rity) 42 N u mberand +class of all+secu rities qu oted on A SX (including the +secu rities inclau se 38 )
	N u mber	+C lass

+See chapter19 ford efined terms.

A ppend ix 3B P age 8

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A ppendix 3B N ew issu e annou ncement

Q u otation agreement

• 1 +Q u otation of ou rad d itional+secu rities is in A SX ’s absolu te d iscretion.A SX may qu ote the[+] secu rities onanycond itions itd ecid es.

• 2 W e warrantthe followingtoA SX .

• The issu e of the[+] secu rities to be qu oted complies withthe law and is not foranillegalpu rpose.

• There is noreasonwhythose[+] secu rities shou ld notbe granted[+] qu otation.

• A n offerof the[+] secu rities forsale within 12 months aftertheirissu e will notrequ ire d isclosu re u nd er section 7 07 (3) or section 1012C (6) of the C orporations A ct.

N ote:A n entity may need to obtain appropriate warranties from su bscribers forthe secu rities in ord erto be able to give this warranty

• Section 7 24 orsection 1016E of the C orporations A ctd oes notapplytoany applications received by u s in relation to any[+] secu rities to be qu oted and thatno-one has any rightto retu rn any[+] secu rities to be qu oted u nd er sections 7 37 ,7 38 or 1016F of the C orporations A ctatthe time thatwe requ estthatthe[+] secu rities be qu oted .

• If we are a tru st,we warrantthatno person has the rightto retu rn the +secu rities to be qu oted u nd ersection 1019B of the C orporations A ctatthe time thatwe requ estthatthe[+] secu rities be qu oted .

• 3 W e willind emnify A SX to the fu llestextentpermitted by law in respectof any claim,action or expense arising from or connected with any breach of the warranties inthis agreement.

• 4 W e give A SX the information and d ocu ments requ ired by this form. If any information or d ocu mentis notavailable now,we willgive itto A SX before +qu otation of the +secu rities begins. W e acknowled ge thatA SX is relyingon the informationand d ocu ments.W e warrantthattheyare (willbe)tru e and complete.

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Signhere: ........................................................... D ate:10 O ctober2014. (D irector/C ompanysecretary) P rintname: P Ju rman ==========

+See chapter19 ford efined terms.

A ppend ix 3B P age 9

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A ppendix 3B N ew issu e annou ncement

A 3B –A nnexu re 1 ppendix

C alcu lation ofplacementcapacityu nderru le 7 .1 and ru le 7 .1A foreligible entities

Introd u ced 01/08 /12 A mend ed 04/03/13

P art1

Ru le 7 .1 –Issu es exceeding15% ofcapital

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

P art1	P art1
Ru le 7 .1 –Issu es exceeding15% ofcapital
Step 1: Calculate “A”, the base figure from which the placement capacity is calculated
Insertnu mberoffu llypaid +ord inarysecu rities onissu e 12 months before the +issu e d ate or d ate ofagreementto issu e	8 7 ,7 39,7 08
Addthe following: • N u mberoffu llypaid +ord inarysecu rities issu ed inthat12 monthperiod u nd eran exceptioninru le 7 .2 • N u mberoffu llypaid +ord inarysecu rities issu ed inthat12 monthperiod with sharehold erapproval	13,930,661 fu lly paid ord inary shares issu ed on 28 O ctober 2013 to hold ers of secu rities who participated in the N on-Renou nceable EntitlementIssu e. 15,315,908 fu llypaid ord inaryshares issu ed on 4 N ovember2013 to investors who participated in the shortfallarisingou tofthe N on-Renou nceable EntitlementIssu e. 20 fu lly paid ord inary shares issu ed on 26 N ovember2013onconversionofoptions. 3,000,000 fu lly paid ord inary shares issu ed on 4 N ovember 2013,sharehold er approvalgiven at the annu al general meeting on 12 N ovember 2013. 36,666,667 fu lly paid ord inary shares issu ed on 27 N ovember 2013 pu rsu ant to a placement, sharehold erapprovalgiven atthe annu algeneral meetingon12 N ovember2013. 28 ,663,202 fu llypaid ord inaryshares issu ed on 4 A u gu st2014 as partof a private placementto sophisticated investors, sharehold er approval given atthe generalmeeting on 26 September 2014. 9,7 8 0,000 fu llypaid ord inaryshares issu ed on 14 A u gu st 2014 and 7 20,000 fu lly paid ord inary shares issu ed on 10 O ctober2014 as paymentof the O ption fee to acqu ire Tojo M inerals P ty L td . Sharehold er approval given at the general meetingon26 September2014.

+See chapter19 ford efined terms.

A ppend ix 3B P age 10

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A ppendix 3B N ew issu e annou ncement

	5,969,18 2 fu llypaid ord inaryshares issu ed to
	D irectors,M rGajewskiand M rB eckwithon10
	O ctober2014 as partofaprivate placementto
	sophisticated investors,sharehold erapproval
	givenatthe generalmeetingon26 September
	2014.
• N u mberofpartlypaid +ord inarysecu rities
thatbecame fu llypaid inthat12 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
Subtractthe nu mberoffu llypaid +ord inary	N il
secu rities cancelled d u ringthat12 monthperiod
“A ”	201,7 8 5,348
Step 2: Calculate 15% of “A”
“B ”	0.15
	[Note: this value cannot be changed]

Step 2: Calculate 15% of “A”
“B ”	0.15
	[Note: this value cannot be changed]
Multiply“A ”by0.15	30,267 ,8 02
Step 3: Calculate “C”, the amount of placement capacity under rule 7.1 that has
already been used
Insertnu mberof +equ itysecu rities issu ed or
agreed to be issu ed inthat12 monthperiod not
_counting_those issu ed :
• Und eranexceptioninru le 7 .2	N il.
• Und erru le 7 .1A
• W ithsecu rityhold erapprovalu nd erru le 7 .1
orru le 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

+See chapter19 ford efined terms.

A ppend ix 3B P age 11

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A ppendix 3B N ew issu e annou ncement

securities on different dates as separate line items
“C ”	N il.
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	30,267 ,8 02
Subtract“C ” Note: number must be same as shown in Step 3	N il.
Total[“A ”x 0.15] –“C ”	30,267 ,8 02 [Note: this is the remaining placement capacity under rule 7.1]

+See chapter19 ford efined terms.

A ppend ix 3B P age 12

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A ppendix 3B N ew issu e annou ncement

P art2

Ru le 7 .1A –A dditionalplacementcapacityforeligible entities

S tep1:C alcu late “A ”,the base figu re from whichthe placementcapacityis calcu lated

==> picture [414 x 158] intentionally omitted <==

----- Start of picture text -----

“A ” 201,7 8 5,348
Note: number must be same as shown in Step 1
of Part 1
Step 2: Calculate 10% of “A”
“D ” 0.10
Note: this value cannot be changed
Multiply “A ”by0.10 20,17 8 ,534
----- End of picture text -----

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

• Insert nu mberof[+] equ itysecu rities issu ed or N il. agreed to be issu ed inthat12 monthperiod u nd erru le 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

• “E ” N il.

Step 4: Subtract “E” from [“A” x “D”] to calculate remaining placement capacity under rule 7.1A

“A ”x 0.10 20,17 8 ,534 Note: number must be same as shown in Step 2 Subtract “E” N il. Note: number must be same as shown in Step 3

+See chapter19 ford efined terms.

A ppend ix 3B P age 13

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A ppendix 3B N ew issu e annou ncement

Total [“A ”x 0.10] –“E” 20,17 8 ,534. Note: this is the remaining placement capacity under rule 7.1A

+See chapter19 ford efined terms.

A ppend ix 3B P age 14

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