Carnaby Resources : Lady Fanny Prospect - LFRC008 40m @ 1.0%Cu And 11m @ 1.7%Cu

Extensive Induced Polarisation (IP) surveys are commencing today testing for the southwest extension of the spectacular discovery hole NLDD044 of 41m @ 4.1% copper, 0.5 g/t gold (Figure 4).

DESPERANDUM PROSPECT

AND11m @ 1.7% Cu FROM 71m

LADY FANNY PROSPECT - LFRC008

40m @ 1.0% Cu FROM SURACE

onlyCarnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to announce additional drill results from the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

Highlights

• Strong assay results have been received from a further six holes drilled

	at Lady Fanny and Burke & Wills Prospects defining a strike length of
	>200m each prospect, and completely open in all directions. All holes
useintersected significant shallow high grade copper gold mineralisation.
	Significant results include;
LADY FANNY PROSPECT
• LFRC008 - 40m @ 1.0% Cu, 0.1 g/t Au from Surface
	o Incl. 13m @ 1.5% Cu, 0.1 g/t Au from 20m
	o And 11m @ 1.7% Cu, 0.2 g/t Au from 71m
	o Incl. 4m @ 3.6% Cu, 0.1 g/t Au from 72m
• LFRC021 - 10m @ 1.2% Cu, 0.1 g/t Au from 10m
	o Incl. 2m @ 4.8% Cu, 0.4 g/t Au from 13m
BURKE & WILLS PROSPECT
• BWRC006 - 5m @ 2.2% Cu, 0.2 g/t Au from 44m
personal	o Incl. 1m @ 8.8% Cu, 0.4 g/t Au from 46m
BWRC005 - 4m @ 2.1% Cu, 0.2 g/t Au from 41m
For

NIL

•

The Company's Managing Director, Rob Watkins commented:

"The Lady Fanny, Burke & Wills and Nil Desperandum discoveries are rapidly emerging as a major new and vastly underexplored Iron Oxide Copper Gold corridor with untold size potential. We are looking forward to the commencement of the IP geophysical surveys today and the start of drilling by week's end."

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ASX Announcement 17 January 2022

Fast Facts

Shares on Issue 125.2M

Market Cap (@ $1.62) $203M

Cash $5.6M1

1As of 30 September 2021

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
• 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. [phone] www.carnabyresources.com.au

For personal use only

GREATER DUCHESS COPPER GOLD PROJECT

LADY FANNY PROSPECT (CARNABY 100%)

Results from the four remaining RC holes drilled at Lady Fanny at the end of 2021 have all recorded strong high-grade copper gold results (Figure 1, 2, 3 & 4, Table 2). Significant results include;

LFRC008

• 40m @ 1.0% Cu, 0.1g/t Au from Surface including 13m @ 1.5% Cu, 0.1 g/t Au from 20m and 11m @ 1.7% Cu, 0.2g/t Au from 71m including 4m @ 3.6% Cu, 0.1g/t Au from 72m

Figure 1. Lady Fanny Drill Section showing new drill result from LFRC008.

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For personal use only

LFRC008 was drilled under the ~10m deep Lady Fanny east pit intersecting two significant parallel lodes with high grade copper and gold mineralisation over broad widths (Figure 1). Shallow workings were intersected in the top part of the hole where stope voids were recorded from 22-23m and 32-33m (Figure 3). Mineralisation was intersected from the start of the hole and additional drilling is required to step back and test the full width of mineralisation at the surface.

LFRC022

• 25m @ 0.7% Cu, 0.1 g/t Au from 0m
  5m @ 1.0% Cu, 0.2 g/t Au from 44m
  14m @ 0.8% Cu, 0.2 g/t Au from 70m Including 5m @ 1.3% Cu, 0.3 g/t Au from 70m

LFRC022 was drilled under the ~10m deep Lady Fanny east pit intersecting two significant parallel lodes with broad widths of copper and gold mineralisation intersected (Figure 2). Mineralisation was intersected from the start of the hole and additional drilling is required to step back and test the full width of the western mineralised shoot. LFRC022 was drilled on section and up dip from LFRC009 which intersected 27m @ 2.8% copper, 0.8 g/t gold from 61m (see ASX release 13 January 2022).

LFRC021

• 10m @ 1.2% Cu, 0.1 g/t Au from 10m Including 2m @ 4.8% Cu, 0.4 g/t Au from 13m

LFRC004

• 7m @ 1.3% Cu, 0.05 g/t Au from 31m Including 3m @ 2.4% Cu, 0.04g/t Au from 31m

LFRC021 and LFRC004 were drilled south of the main Lady Fanny workings and have intersected a continuous lode horizon now defined by drilling over greater than 200m strike. The Lady Fanny line of lode remains completely open south of LFRC021 where the outcropping mineralisation tracks under shallow alluvium and remains completely undrilled.

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For personal use only

The Lady Fanny prospect is rapidly emerging as a significant IOCG discovery only 3 km north of the spectacular Nil Desperandum discovery. To date first pass RC drilling has only scoped out the southern 200m strike of the workings where every drill hole has intersected significant mineralisation and broad zones of copper gold mineralisation in some stunning drill intersections. Extensive workings exist for a further 200m strike north from the closest drilling and remain undrilled due only to the drill rig not completing the planned program prior to the Christmas break.

Carnaby plans to complete a major drill out of the Lady Fanny prospect over the 400m known strike and explore for lateral and depth extensions using IP geophysics for targeting which has proved very successful at Nil Desperandum and is yet to be trialled at Lady Fanny.

Figure 2. Plan of Lady Fanny and Burke & Wills Showing location of new drill results.

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For personal use only

Figure 3. Plan showing location of Lady Fanny and Nil Desperandum IOCG corridor.

BURKE & WILLS PROSPECT (CARNABY 82.5%)

The Burke & Wills prospect is located approximately 400m west of Lady Fanny, representing a parallel north south striking outcropping copper gold lode that has been shallowly worked in several turn of the century workings, but has remarkably had no modern-day exploration and had never been drilled prior to the first drill hole Carnaby completed late last year. Assays from an additional two RC holes completed have produced the following results;

BWRC006

• 5m @ 2.2% Cu, 0.2g/t Au from 44m Including 1m @ 8.8% Cu, 0.4 g/t Au from 46m

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