HAWSONS IRON LTD — Board/Management Information 2020

Nov 24, 2020

==> picture [223 x 64] intentionally omitted <==

==> picture [159 x 104] intentionally omitted <==

25 November 2020

Letter from Joint Venture Partner

Carpentaria Resources Limited (ASX: CAP) advises that it has received the appended letter from Starlight Investment Company Pty Ltd relating to its commitment to fund its proportionate share of the bankable feasibility study relating to the Hawsons Iron Project. (Refer to announcement of 2 September 2020).

Released by authority of the Managing Director and the Company Secretary Carpentaria Resources Ltd +61 7 3220

ABN : 63 095 117 981 ASX : CAP info@capex.net.au PO Box 10919, carpentariares.com Adelaide St Brisbane Qld 4000

Carpentaria Resources Limited Level 6, 345 Ann Street Brisbane Qld 4000

1

Starlight Investment Company Pty Ltd ACN 166 007 674

18 November 2020

The Directors Carpentaria Resources Limited ACN 095 117 981 Level 7, 333 Adelaide Street Brisbane QLD 4000

Dear Directors,

Uncertainty of intention for Hawsons Iron Project - Review of Funding Commitment

We refer to our recent discussions concerning the announcement of the requisition dated 10 November 2020 of certain shareholders of Carpentaria for the removal of Paul Cholakos as a director.

Although the composition of the board of Carpentaria is of course a matter for the shareholders of Carpentaria, as Carpentaria’s joint venture partner in the Hawsons Iron Project we have a strong interest in the strength and stability of the management and board of Carpentaria, such that the project is capable of proceeding on the basis represented to us at the time the joint venture was agreed to earlier this year.

Since the announcement, we have sought to ascertain from both management and directors the reasoning for the move to remove Paul Cholakos as a director, and whether it represents a change in Carpentaria’s intention for Hawsons and the joint venture.

In our view, Paul Cholakos has played an instrumental role in both the negotiations of the joint venture and in oversight of the operation of the project. During the negotiations, Paul Cholakos demonstrated to us his experience and understanding in the development of large scale resources projects globally, and at the same time (working closely with Quentin Hill (Managing Director) and Bob Hair (Company Secretary)) instilled into our relationship trust, integrity and confidence, which cumulated in the signing of the joint venture.

As at no time during (or after) the negotiations did we meet the other current members of the board, we are unable to comment on what impact they would have had on the negotiations if Paul Cholakos was not involved. Having said that, if not for Paul Cholakos’ involvement we very much suspect that there would not have been an agreement.

1

==> picture [520 x 770] intentionally omitted <==