Caravel Minerals Limited provided Pre-feasibility Study Update (PFS) on Caravel Copper Project. The PFS outlined opportunities for improvements to the process plant, including consolidation of the plant into a single approximately 27Mtpa throughput train, the use of High-Pressure Grinding Rolls ("HGPR") to replace Semi-Autogenous Grinding ("SAG") Mills and the adoption of Coarse Particle Flotation ("CPF"). Results of Single Train Option Study: The Caravel Copper Project Pre-Feasibility Study ("PFS") defined a robust copper project capable of producing over 60,000tpa of copper in concentrate at low cost (C1 approximately USD 1.72/lb Cu), generating strong cashflows over an initial 28-year mine life.

Technical, environmental and commercial studies completed for the PFS indicate that the Project can be built and operated with low technical risks, minimal environmental impact and positive economic and social outcomes. The PFS identified a number of options to improve project economics and operability, including: Consolidation of the proposed dual train process plant into a simplified, Single Train design; Replacement of Semi-Autogenous Grinding (SAG) mills with High-Pressure Grinding Rolls (HPGR) in the primary comminution circuit; and Inclusion of Coarse Particle Flotation (CPF) in the flotation circuit. Ausenco, the engineers to the PFS, have investigated these options and finalised their assessment.

Consolidating the flotation circuit into a single train design provides significant efficiencies in construction and operation, resulting in forecast capital savings of around AUD 77 Million and operating costs savings of around AUD 0.46 /t ore. The use of High-Pressure Grinding Rolls (HPGR) as an alternative to Semi-Autogenous Grinding (SAG) mills reduces consumption of both power and operating consumables and results in a AUD 0.68/t reduction in operating costs and an estimated AUD 23 million saving in upfront capital. The inclusion of CPF the circuit will further reduce operating and capital costs through lower power usage due to the coarser grind size and reduced volumes through the flotation plant.

Additional benefits will accrue through improved tailings characteristics and better water returns, lowering overall water requirements, but the financial impacts of this have not yet been included in the costings. The cumulative impact on the Project's financial model is as follows: Processing unit costs are reduced by AUD 1.23/t ore, primarily due to lower power costs relating to the use of HPGR and CPF. This increases annual free cashflow by approximately AUD 35 million, or AUD 870 million over life of mine; Capital costs are reduced by AUD 100 million, primarily due to capital efficiency in the Single Train design; The operating cost reductions result in a C1 Cost of USD 1.54/lb and an AISC of USD 2.37/lb; The changes to cashflows and capital result in an increase in Project NPV (7%) to AUD 1.5 billion (range AUD 1.3 billion to AUD 1.7 billion).

The three options studied have all demonstrated substantial benefits to the Project and are now incorporated into the project base case design and financial model to be used in the DFS. There is no change (or delay) to project or mine scheduling resulting from the improvements. The study outcomes presented in this report are based on changes to the comminution and flotation circuits within the process plant.

The material assumptions in respect of these PFS financial forecasts and production targets continue to apply with no material change to these assumptions. 81.6% of the Project's mine life remains in Ore Reserve with 18.4% as Inferred Mineral Resources.