Carawine Resources : 134g/t Au Highest Grade to Date at Hercules

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ASX AND MEDIA RELEASE

10 March 2022

HIGHEST GOLD GRADE TO DATE AT HERCULES

KEY POINTS

• Latest assay results from Hercules include the highest gold grade and one of the best intervals returned to date, as follows1:
  o 4m @ 40.1g/t Au from 239m, including 1m @ 137g/t Au from 239m (TNDD014) o 1m @ 23.9g/t Au from 192m (TNDD013)
• High grade gold zone increased in size and remains open
• Diamond drilling program continuing to test for further extensions, with assays pending for three completed holes and at least five more holes planned

Gold and base metals explorer Carawine Resources Limited ("Carawine" or "the Company") (ASX:CWX) is pleased to announce the latest assay results from the ongoing drilling program at its Hercules prospect, which have returned the highest gold grade and one of the best intervals from drilling at the prospect to date (Figure 1). Hercules is part of Carawine's Tropicana North Project, located in the north-eastern goldfields of Western Australia.

Commenting on the outstanding results, Carawine Managing Director David Boyd said:

"Hercules has delivered, with today's results including the highest gold grade returned from the prospect to date and increasing the size of the high-grade gold zone, which remains open to the north, south and at depth. This supports our belief that Hercules is a significant gold discovery."

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"We will continue to target extensions to the main zone of high-grade mineralisation at Hercules, with assay results pending from three recently completed holes, and at least five more holes planned in the current program."

"We look forward to sharing the results of this drilling over coming months, along with results from recently completed drilling at the nearby Big Freeze and Beanie prospects, and the planned commencement of regional drilling programs across the Tropicana North Project."

Takeover Offer from QGold Pty Ltd

The Company refers to the unsolicited, on-market takeover offer by QGold Pty Ltd ("QGold") to acquire all fully paid ordinary shares on issue in the Company which QGold (and/or QGold's associates) do not already own or control at 21 cents per share ("the Offer"), as announced to the ASX on 22 February 2022.

On 8 March 2022, the Company released its Target's Statement in which the Company's Directors unanimously recommend that Carawine shareholders reject the Offer.

The reasons for the Directors' recommendation are detailed in the Target's Statement, which shareholders are urged to read in full, and to seek any independent financial, legal, taxation or other professional advice that they require before making a decision to accept or reject the Offer. A copy of the Target's Statement is available to download from the ASX Announcements page of the Company's website: www.carawine.com.au.

The Company will continue to keep all shareholders informed of material developments in relation to the Offer. Announcements relating to the Offer and Carawine can also be found on Carawine's ASX Announcement page at www.asx.com.au(ASX Code: CWX).

Hercules Results

Hercules is an advanced gold prospect held by Carawine's Thunderstruck Joint Venture ("Thunderstruck JV", Carawine 90% interest); part of the Company's large Tropicana North Project located in the northeastern goldfields of Western Australia (Figure 5). Gold mineralisation at Hercules is hosted by multiple parallel veins and shears within a wide, steeply dipping mineralised zone striking northeast (Figures 2 to 4). To date, mineralisation has been reported along a 340m strike length, extending from 35m to 250m below surface, and remains open (Figures 1 & 2).

The current drilling program at Hercules is focussed on defining the geology, structure and grade characteristics of the gold mineralisation, and extending it along strike and at depth. An additional five diamond holes are planned in the current program, including an extension to existing hole TNDD012, with drilling expected to continue through to the end of April 2022.

Assay results reported today are from diamond drill holes TNDD013 and TNDD014, targeting mineralisation along the north-east and south-west edges of the main mineralised zone respectively (Figures 1 & 2). Both drill holes returned high-grade mineralised intervals (>0.3g/t Au cut off), as follows:

• 1m @ 0.55g/t Au from 161m (TNDD013), and
  1m @ 23.9g/t Au from 192m, and
  1m @ 2.86/t Au from 407m.
• 1m @ 6.96g/t Au from 70m (TNDD014), and

4m @ 40.1g/t Au from 239m, including 1m @ 137g/t Au from 239m.

(geological boundaries and/or >0.3g/t Au, downhole widths, refer Figures 1 to 4, Table 1 and Appendix 1 for details)

The 4m @ 40.1g/t Au interval from 239m in TNDD014 is associated with multiple laminated quartz veins containing pyrite-chalcopyrite veinlets and disseminations, and specks of visible gold, within sheared chlorite and biotite-altered mafic granulite from 239m to 241.5m downhole, followed by a strongly chlorite-altered shear zone from 241.5m to 243m downhole. Individual 1m samples in this interval

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ASX AND MEDIA RELEASE

10 March 2022

returned assays of 137g/t Au (239m-240m),0.93g/t Au (240m-241m),15.9g/t Au (241m-242m) and 6.35g/t Au (242m-243m), indicating the extremely high grades associated with the laminated quartz veining and lower but still significant grade associated with the surrounding shear zone (with no veining).

Further up-hole in TNDD014, another sulphidic laminated quartz vein within weakly oxidised potassium- feldspar, feldspar and chlorite-altered intermediate granulite returned an interval of 1m @ 6.96g/t Au, from 70m.

The closest drill holes to TNDD014 on-section are 100m away up-dip, and 160m down-dip where an extension to drill hole TNDD007 was recently completed, with assay results pending. The Hercules mineralisation in this area therefore remains open to the southwest and at depth, and with the potential to add further mineralisation closer to surface (Figures 1 to 3).

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Figure 3: Cross section through TNDD014 (+/- 20m).

TNDD013 intersected a sulphidic quartz vein containing pyrite and chalcopyrite disseminations and specks of visible gold, with biotite and sericite-altered vein selvedges in felsic granulite, returning the interval of 1m @ 23.9g/t Au from 192m. This interval correlates with a lower-grade interval in TNDD010, 40m above TNDD013, with the main Hercules mineralised zone remaining open at depth and to the northeast (Figures 2 & 4).

Further down-hole in TNDD013 an additional mineralised zone returned an interval of 1m @ 2.86g/t Au from 407m, associated with a strong chlorite and biotite-altered shear zone interpreted to be the Hercules Shear Zone. This is approximately 80m northeast along strike from an interval of 30m @ 0.31g/t Au (cut to geological boundaries) previously reported from TNDD011, indicating the potential for additional mineralisation within the largely untested Hercules Shear Zone (refer to ASX announcement dated 15 February 2022).

For further details refer to Table 1 and Appendix 1.

Big Freeze, Beanie and Regional Drilling - Update

Follow-up RC drilling was recently completed at the Big Freeze and Beanie prospects on the Neale tenement, 8km and 1.5km away from Hercules respectively, with 18 holes drilled for 2,912m at Big Freeze and 2 holes for 396m completed at Beanie (Figure 5) (refer ASX announcement dated 15 February 2022). Results from this program are expected within the next 6 weeks.

Planning is also in progress for a large air core drilling program designed to test several historic gold anomalies and structural/magnetic target zones identified within the Neale tenement, and numerous

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targets recently identified on Carawine's other 100%-owned tenements in the Tropicana North Project including at Pleiades, Python and Tallows North (Figure 5) (refer ASX announcements 1 November 2021 and 4 March 2022).

Figure 4: Cross section through TNDD013 (+/- 20m).

About Tropicana North

Carawine's Tropicana North Project covers 80km strike of the Tropicana Belt, containing strike extensions of the same and similar rock units and structures to those hosting the large Tropicana gold mine (operated by AngloGold Ashanti Australia Ltd ("AGA") & Regis Resources Ltd ("Regis")1). Several early stage to advanced gold prospects have been identified within the Project, providing Carawine with a large pipeline of high-quality exploration targets on which to focus its exploration activities.

The Project comprises two granted exploration licences in the Thunderstruck JV (Neale and Don King), eight granted exploration licences (Dyno, Chicago, Westwood, Pleiades, Python, Bluebell South, Naries and Spackman), and three exploration licence applications (Rason, Blue Robin and Tallow), held 100% by Carawine (Figure 5). Combined, these cover an area of more than 1,900km2, making Carawine the second-largest tenement holder in the region behind AGA.

This announcement was authorised for release by the Company's Board of Directors.