CNB:Lady FannyIP Survey Lights Up StrongChargeabilityTargets

LADY FANNY IP SURVEY LIGHTS UP STRONG CHARGEABILITY TARGETS

Carnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to report further exploration results at its 100% owned Lady Fanny copper gold discovery within the Greater Duchess Copper Gold Project in Mt Isa, Queensland.

Highlights

• Induced Polarisation (IP) results have been received from the first
only	three lines at Lady Fanny completed on ~200m spaced east-west
	traverses. Results from a further three IP lines are awaited.
• The IP results have recorded several strong undrilled inversion
	chargeability anomalies of exceptional potential and completely
	open at depth and along strike (Figure 1, 2, 3 & 4).
• Strong near surface IP chargeability inversion anomalies correlate
use	extremely well with outcropping copper mineralisation confirming
that the IP is almost certainly identifying the strong copper sulphide
	mineralisation at surface and at depth.
• A major RC drilling program at Lady Fanny is underway to drill out
	the top 100m depth over a >400m strike and target the new IP
	anomalies.
• Heritage surveys at the Nil Desperandum Prospect were successfully
personal	completed yesterday, clearing the way for follow up drilling of the
400m long IP anomaly southwest of the 41m @ 4.1% copper in
NLDD044 to commence shortly.
The Company's Managing Director, Rob Watkins commented:
For

"The Lady Fanny IP results are extremely encouraging and are suggestive of a much larger copper sulphide bearing system at depth and along strike. The IP at Lady Fanny appears to be working as well as it did at Nil Desperandum which led to the high-grade discovery. This bodes well for the follow up drilling at Lady Fanny which is underway. The strength of the Lady Fanny inversion chargeability anomalies is stronger than in the high-grade discovery IP section at Nil Desperandum. While the strength of the chargeability inversion anomalies cannot be used as a guide for copper grades or widths, the strength of the Lady Fanny IP chargeability anomalies is certainly a positive sign. With this in mind, we are genuinely excited about what lies ahead at Lady Fanny and Nil Desperandum and the broader Greater Duchess Copper Gold Project in the weeks and months ahead."

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ASX Announcement 17 February 2022

Fast Facts

Shares on Issue 143.5M

Market Cap (@ $1.45) $208M

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 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%)

Figure 1. Lady Fanny Plan Showing new IP inversion chargeability anomalies.

Results from the first three lines of IP at Lady Fanny have outlined several strong inversion chargeability anomalies across all three lines (Figure 1, 2, 3 & 4). Data from an additional three infill and extension IP lines have been received and inversion modelling of the data is underway and will be reported shortly. The IP lines were completed over 1.4km long east-west traverses covering the entire Lady Fanny to Burke & Wills lines of workings.

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For personal use only

IP LINE 7649250N

IP line 7649250N is the southern most IP line completed at Lady Fanny (Figure 1). This IP line is south of any previous drilling and is on the edge of where thin alluvial cover masks the southern strike potential of the main Lady Fanny Lodes (Figure 1 & 5).

The results highlight a very strong inversion chargeability anomaly from near surface to approximately 150m below surface. The strength of the IP anomaly is stronger than the IP anomaly generated on the discovery IP line 19000N at Nil Desperandum. The strength of chargeability is governed by many variables and can't be used as a guide to copper grades or widths however it is considered highly encouraging.

No known historical drilling or IP is present south of this IP line for three kilometres to the Nil Desperandum discovery with shallow alluvium cover masking most of the highly prospective corridor in between the two discoveries. Future exploration will no doubt target this gap, especially given the IP results on the southern most known extension at Lady Fanny.

Preparations are underway to drill the chargeability inversion target on IP line L7649250N.

Figure 2. IP line L7649250N chargeability inversion showing location of anomaly.

IP LINE 7649450N

IP line 7649450N was completed over the central Lady Fanny workings area with the line bisecting drill holes LFRC012 and LFRC013, which intersected 17m @ 2.1% copper, 0.9 g/t gold from 74m and 20m @ 2.3% copper, 0.5g/t gold from 30m respectively.

The results from the IP show a very strong shallow chargeability anomaly coincident with the location of the outcropping copper gold mineralisation indicating that the IP is modelling copper sulphide mineralisation as it does at Nil Desperandum 3km to the south.

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For personal use only

Further modelling of the IP is in progress to investigate the near surface modelling effects of this very strongly chargeable zone.

Of considerable interest is the presence of a deeper chargeability inversion anomaly at approximately 200m depth and about 150m west of the main near surface chargeability anomaly. This deeper target appears to connect with a similar feature in next IP line 225m to the north. No drilling has yet targeted this new chargeability anomaly.

Figure 3. IP line L7649450N chargeability inversion showing location of anomalies.

IP LINE 7649675N

IP line 7649675N was completed over the northern end of the Lady Fanny workings (Figure 1). No drilling at all has yet been completed in this area with the closest drill hole being 200m to the south which interested 20m @ 2.3% copper, 0.5g/t gold in LFRC013.

The results highlight two extremely strong and shallow chargeability anomalies on the edge of the historical workings with maximum modelled inversion chargeability's of 47 and 37 m/sec (Figure 4).

Further modelling of the IP is in progress to investigate the near surface modelling effects of these very strongly chargeable zones.

A deeper chargeability inversion anomaly at 373925E may represent a continuation of the eastern Lady Fanny lode surface IP anomaly and will be drill tested shortly.

Of great interest is the IP inversion chargeability anomaly at about 100m depth at approximately 373700E (Figure 4). This anomaly appears to coincide with a similar magnitude IP chargeability anomaly on the IP line 7649450N, 225m to the south (Figure 1 & 3). It is not yet known whether this new chargeable zone approximately 100m west of the main Lady Fanny line of lode is a new parallel lode horizon and only future drilling will tell.

Soon to be received results from an infill IP line will also verify the connectivity of this new chargeability anomaly immediately west of Lady Fanny.

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For personal use only

The three IP lines across the Burke & Wills line of lode, 400m west of Lady Fanny, in general were fairly subdued in the shallow depths with only a weak chargeability anomaly generated at shallow depths on IP line 7649675N (Figure 4). However, a strong deep chargeability anomaly was generated directly beneath the Burke & Wills lode at approximately 373400E and will be investigated with drilling in the future (Figure 4).

Figure 4. IP line L7649675N chargeability inversion showing location of anomalies.

Figure 5. Location Plan of Lady Fanny and Nil Desperandum Discoveries

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