Carnaby Resources : Major Discovery Confirmed at Nil Desperandum

MAJOR DISCOVERY CONFIRMED AT NIL DESPERANDUM FROM DRILLING AND IP GEOPHYSICAL SURVEYS

"It is highly encouraging and exciting to confirm that the high-grade copper gold mineralisation intersected in NLDD044 and now in NLRC066 are over exceptional true widths. This gives us great confidence in the plunge extension potential of the high-grade Nil Desperandum breccia shoot. This is especially significant given that the results from the first three extensional lines of IP all show strong and continuous chargeability anomalies, which we know is vectoring us to high grade copper gold mineralisation as seen in NLDD044. We look forward with incredible anticipation to the next drill hole and IP results."

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ASX Announcement 4 February 2022

Fast Facts

Shares on Issue 140.5M

Market Cap (@ $1.36) $191M

Board and Management

Peter Bowler, Non-Exec Chairman

Rob Watkins, Managing Director

Greg Barrett, Non-Exec Director &

Company Secretary

Paul Payne, Non-Exec Director

Company Highlights

• Proven and highly credentialed management team
• Tight capital structure and strong cash position
• Nil Desperandum and Lady Fanny Iron Oxide Copper Gold discoveries within the Greater Duchess Copper Gold Project, Mt Isa inlier, Queensland.
• Greater Duchess Copper Gold Project, numerous camp scale IOCG deposits over 1,022 km2 of tenure
• Projects near to De Grey's Hemi gold discovery on 442 km2 of highly prospective tenure
• 100% ownership of the Tick Hill Gold
  Project (granted ML's) in Qld, historically one of Australia highest grade and most profitable gold mines producing 511 koz at 22 g/t gold

Registered Office

78 Churchill Avenue Subiaco Western Australia 6008

1. +61 8 9320 2320 www.carnabyresources.com.au

Figure 1. Drill Section showing NLRC066 and associated IP chargeability anomaly.

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Figure 3. Plan of Nil Desperandum Showing location of NLRC066 and IP anomalies.

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NLRC065

NLRC065 was collared approximately 30m grid west of NLRC044 and intersected 47m of disseminated copper sulphide mineralisation from 197m and a further zone of 18m from 254m (Figure 1 & 3). The intervals intersected in NLRC065 are consistent with the lower grade western halo off the main high grade breccia shoot intersected in NLDD044 and NLRC066 to the east.

Further diamond drilling is required to delineate the western contact of the high-grade breccia shoot where a sharp drop off in copper mineralisation generally occurs and may be associated with an as yet unrecognised steeply dipping and northeast striking bounding fault.

NLRC043

NLRC043 was collared NNE from NLDD044 and drilled vertically to 300m (Figure 3). The hole had unplanned drift to the north and therefore did not hit the targeted main high grade breccia shoot plunge position, however did intersect the western halo copper mineralisation with visual copper sulphides recorded over a 25m downhole interval with up to 7% chalcopyrite logged.

An additional drill hole is underway to target the main high-grade plunging breccia shoot (Figure 3).

NLRC058

The final assay results from drilling completed at the end of 2021 have been received for drill hole NLRC058. The hole targeted an IP anomaly west of the Nil Desperandum main shoot (Figure 3). Encouragingly the hole intersected a new zone of disseminated copper sulphide mineralisation interpreted to be independent from the main Nil Desperandum shoot and therefore represents a new target zone. The mineralisation recorded in NLRC058 was 2m @ 0.7% copper from 165m within a broader zone of anomalous copper. The result potentially represents a halo intersection to a larger target to the northwest and that the original IP anomaly itself may be a halo chargeability anomaly. An additional line of IP has just been completed targeting 100m west of NLRC058. Results from the IP line are expected shortly.

INDUCED POLARISATION (IP) SURVEY RESULTS

Results from the first three lines of IP have been received. Full details of the IP results are presented in Appendix 2, JORC Table 1. IP data was acquired by Planetary Geophysics Pty Ltd and processing of data was carried out by Southern Geoscience Consultants.

The IP was completed on 100m spaced step out lines from the initial discovery hole NLDD044. Remodelling of the original IP line, that drill hole NLDD044 was targeted on, indicates a very strong relationship between the chargeability inversion anomaly and copper sulphide mineralisation (Figure 1).

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Results from an additional three IP lines are awaited and are expected shortly.

The three lines of IP completed south of the discovery hole NLDD044 have all produced significant chargeability anomalies delineating a continuous chargeability anomaly over >300m strike and open to the southwest where additional IP lines have been completed and results pending (Figure 3). The IP chargeability anomalies generally appear to line up with the extrapolated strike and southwest plunge of the main Nil Desperandum breccia shoot giving greater confidence that they reflect a continuation of the mineralisation down plunge.

Extensive drill testing of these new IP anomalies is planned to commence as soon as possible. Carnaby is currently awaiting the completion of a standard heritage survey in this area before additional drilling can take place targeting the new IP anomalies. Due to the spread of Covid- 19 throughout Queensland, short delays in completing heritage surveys are being experienced, however local land council are trying to complete the heritage surveys at their earliest availability.

L18900N

IP line L18900N was completed 100m south of the discovery hole NLDD044 (Figure 3). The inversion anomaly generated on this line clearly defines a chargeability anomaly target approximately 300m below surface and of similar magnitude to the NLDD044 discovery line chargeability anomaly (Figure 4). This anomaly presents an immediate drill target that may represent a continuation of the main Nil Desperandum breccia shoot.

Figure 4. IP line L18900N chargeability inversion section.

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