Carnaby Resources : Acquisition of Mount Hope Mining Lease

ACQUISITION OF MOUNT HOPE

MINING LEASE ML90240

Carnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to announce a highly accretive acquisition to the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

Highlights

• • Acquisition of 100% of the Mount Hope Mining Lease (ML90240) 9 km NNE of Carnaby's Lady Fanny and Nil Desperandum copper gold discoveries (Figure 1).

• • Mount Hope is interpreted to be hosted in the same highly prospective Iron Oxide Copper Gold (IOCG) structural corridor as Lady Fanny and Nil Desperandum.

• • Widespread copper mineralisation evident in shallow historical open pits mined mostly during the same period as Lady Fanny between 1967 and 1974.

• • Historical production of 322,000t @ 1.9% copper1+2.

• • Remarkable lack of any publicly available or verifiable historical exploration drilling.

• • Major first pass exploration drilling program to be expedited post settlement and expected to commence in Q2/Q3.

• • Consideration of $1M in cash and $1M worth of CNB Shares subject to 12 month escrow period.

The Company's Managing Director, Rob Watkins commented:

"Mount Hope is a highly accretive acquisition and another potential corner stone in the rapidly growing Greater Duchess Copper Gold Project. The similarities to Lady Fanny prior to Carnaby's first drilling campaign there are striking. It is hard to believe that an exploration opportunity like this still exists in the Mt Isa region today. Ultimately the planned first pass drilling at Mount Hope will tell the story, however the historical production from the shallow pits and the extensive copper mineralisation left in the pit walls and outcropping elsewhere within the mining lease is evidence enough as to its potential."

• 1 Duchess, QLD 4 Mile Geological Series, Bureau of Mineral Resources 1963

• 2 Geology of Duchess-Urandangi Region, Mount Isa Inlier, Queensland 1984

ASX Announcement 11 April 2022

Fast Facts

Shares on Issue 143.5M

Market Cap (@ $1.365) $196M

Cash $25.8M1

1Based on cash of A$5.8 million as at 31 December 2021 and A$20m gross proceeds from recent Placement, see ASX release dated 24 January 2022.

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 gold and lithium 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

T: [phone]www.carnabyresources.com.au

GREATER DUCHESS COPPER GOLD PROJECT

MOUNT HOPE ML90240 ACQUISITION (CNB 100%)

The Mount Hope Mining Lease ML90240 is located 9km NNE of Lady Fanny and Nil Desperandum copper gold discoveries (Figure 1). The granted Mount Hope Mining Lease covers approximately 0.5 km2 being 1km long by 500m wide.

On a regional scale Mount Hope is hosted within the Argylla Group rocks which host the Nil Desperandum and Lady Fanny mineralisation. Mount Hope is within the same NNE trending IOCG structural corridor as evidenced by a series of historical copper gold workings between Lady Fanny and Mount Hope (Figure 1).

Figure 1. Mount Hope ML90240 regional geological location plan.

MOUNT HOPE HISTORICAL PRODUCTION AND EXPLORATION

Mount Hope was first discovered at the turn of the century and has been intermittently mined from the early 1900's with the main production occuring in the period 1967-1973 by Koolamarra Mining Pty Ltd. The deposit was predominantly mined to produce cupriferous silica flux ore for the Mt Isa smelter totalling 309,000t @ 1.9% copper for 5,900 tonnes produced2. In addition, a total of 12,000t @ 5.5% copper ore was also mined2. Total historical recorded production at Mount Hope is 322,000t @ 2.1% copper producing 6,600 tonnes of copper1+2. Open pit mining at Mount Hope was predominantly from three main very shallow unengineered pits known as Mount Hope, Mount Hope North and Binna Binna (Figure 2).

Copper mineralisation historically mined and exposed in the walls at Mount Hope is predominantly secondary malachite and cuprite ore in a hematite-quartz gangue. The ore zones are noted to have formed along structural corridors associated with biotite schists and along the contacts of quartz reefs and felsic units.

Figure 2. Mount Hope ML90240 aerial photo showing location of historical open pits in yellow, quartz reefs in orange and felsic foliated intrusion / gneiss in pink.

• 1 Duchess, QLD 4 Mile Geological Series, Bureau of Mineral Resources 1963

• 2 Geology of Duchess-Urandangi Region, Mount Isa Inlier, Queensland 1984

Remakably little recorded historical exploration has been completed within the Mount Hope mining lease. No verifiable or publicly available drill hole records have been located to date. This is the exactly the same situation as Lady Fanny prior to Carnaby completing the maiden drilling program. Presumably this is due only to long standing periods of privately held mining lease ownership.

The only significant verifiable historical exploration completed at Mount Hope was by Queensland Minex NL in 1997 who completed three lines of Induced Polarisation (IP). Chargeability anomalies were defined on all three lines associated with the main open pits and quartz reefs to the west.

MOUNT HOPE MAIN PIT

The Mount Hope Main open pit forms a similar geometry to the Mount Hope North Pit resulting in an arcuate style intersection of mineralised orientations that have been mined over a 300m strike length to depths varying from 5-10m to a maximum depth of approximately 40m (Figure 3). As occurs at the Mount Hope North pit, extensive secondary copper mineralisation is evident in the walls of the Mount Hope Main pit suggesting broad zones of copper gold mineralisation. Due to the steep pit walls the high grade core zones mined historically are almost entirely obscured by wall rock rubble that has covered the floors of the opens pits.

Figure 3. Mount Hope Main Pit looking west.

Figure 4. Mount Hope Main Pit showing extensive malachite copper mineralisation

(green mineral) in the walls of the shallow pit.

Figure 5. Southwest end of Mount Hope Main Pit, looking NNW and showing a large quartz iron copper zone extending into the pit wall, also mined in a shaft from the edge of the pit.