ASX Announcement

18 April 2012

Grosvenor West Coke Test Results HIGHLIGHTS

? Initial coke testing completed for Grosvenor West Hard Coking Coal (HCC) project

? Results further confirm Grosvenor West will produce a prime HCC product

? CSR of >70 ranks Grosvenor West HCC amongst highest of world traded coking coals

1. GROSVENOR WEST COKE TESTING

Carabella Resources Limited ("Carabella") is pleased to announce the results from coke testing of hard coking coal product for its Grosvenor West project. Testing was carried out using bulk samples of coal collected from cores taken from a representative location within the deposit and washed to produce a 10% ash coking coal product.
The strength and durability of coke is of particular interest to end-users of coking coal. Coke testing is conducted to assess the potential performance of coke in a blast furnace. Product coal is inserted into a pilot oven where it is transformed into coke, which is subsequently assessed for key performance characteristics.

Figure 1: Grosvenor West Coke being pushed Figure 2: Grosvenor West Coke after cooling

The recent testing of Grosvenor West coal at the ALS Global facility at Riverview (Figs 1 and 2) was conducted on separate samples of the GL and GLB seams each weighing approximately 60kg. A twin box charge process was used to test the samples simultaneously. Test results are summarised as follows.

Carabella Resources Limited P +61 7 3135 9900 F +61 7 3216 1138 Level 1, 1 Breakfast Creek Road, Newstead Qld 4006

Locked Bag 7, Fortitude Valley B.C. Qld 4006 ACN 143 355 471 www.carabellaresources.com.au

ASX Announcement

18 April 2012

Table 1: Grosvenor West Coke Test Parameters

Parameter

GL Seam

GLB Seam

Coke yield

dry coal basis %

76.2

76.6

Mean coke size

mm

63.2

59.6

NSC Coke Reactivity Index: CRI

mean of 2 tests

17.4

15.3

NSC Coke Strength after Reaction: CSR

mean of 2 tests

71.3

71.2

ASTM Tumbler Test Stability Factor

%

53.4

56.7

ASTM Tumbler Test Hardness Factor

%

59.2

64.0

JIS Drum Test 30 revs /15mm

%

94.0

93.9

JIS Drum Test 150 revs/15mm

%

81.3

82.1

The results show that Grosvenor West hard coking coal can be expected to produce a very high strength coke as indicated by CSR values of >70. This parameter ranks amongst the highest of internationally traded coals (see Figure 3).

Figure 3: CSR Comparison of World Traded HCC

Source: Queensland Coal 13th edition 2001, QLD Gov and Carabella Marketing information

All other parameters fall within the expected range for premium hard coking coals. These outcomes, combined with the coal quality results previously reported, confirm that Grosvenor West prime hard coking coal will be a world-class product.

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ASX Announcement

18 April 2012

2. COMMENTARY

Anthony Quin, Carabella's Managing Director said:
"The demonstration of the excellent coking properties for Grosvenor West coal further confirms that this is a world class hard coking coal, which will be highly sought after by coal customers. We expect this to be reflected in the value achieved for the Grosvenor West product anticipated at or close to benchmark hard coking coal prices.
"These results position Carabella favourably compared to similar Australian coal companies and validate our confidence in this robust project.
"We are pleased with the solid progress on the Grosvenor West project this year having undertaken significant work since the initial Concept Study results were announced. We remain on-track to enter feasibility by mid 2012 following mining method decision."

CONTACT:

Anthony Quin Kylie Anderson Managing Director Company Secretary Tel: +61 7 3135 9900 Tel: +61 458 488 009

Web: www.carabellaresources.com.auEmail: kylie@anderssonlyne.com

COMPETENT PERSONS STATEMENT

The information presented in this announcement relating to exploration results, coal resources and exploration targets is based on information compiled by Mr Bruce Robertson who is a member of the Australian Institute of Mining and Metallurgy and is an employee of the Carabella Resources Limited. Mr Robertson is a qualified mining engineer and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the Australasian Code for Reporting of Mineral Resources and Ore Reserves published by the Joint Ore Reserves Committee (JORC Code). Mr Robertson has given his consent for the inclusion of this information, and has reviewed all statements pertaining to this information in the form and context in which it appears.

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