CNB: Nil Desperandum Continues To Grow

Extensive drilling and IP surveys are ongoing and are now focussing on the Lady Fanny target. Short Covid related delays to heritage surveys are being experienced and the surveys are required before drilling of the new IP anomalies at Nil Desperandum can take place southwest of NLDD044.

(refer Table 1 & 2 in Appendix 1 of this report).

RC drill hole NLRC067 has intersected a 63m down hole zone of copper sulphide mineralisation from 169m, containing from 1 to 18% chalcopyrite based on visual estimates with results pending (refer Table 1 & 2 in Appendix 1 of this report).

Results from the remaining three Induced Polarisation (IP) lines at Nil Desperandum have extended the chargeability anomaly southwest of NLDD044 to over 400m long (see Figure 1). The source of a very strong resistivity anomaly on the last three IP lines south of NLDD044 remains unknown.

NIL DESPERANDUM CONTINUES TO

onlyCarnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to report further exploration success at its major copper gold discovery at the

GROW FROM STRONG VISUAL

RESULTS AND IP GEOPHYSICS

Nil Desperandum Prospect within the Greater Duchess Copper Gold Project in

useMt Isa, Queensland.

Highlights

• RC drill hole NLRC069 has intersected a 70m down hole zone of copper sulphide mineralisation from 195m, containing from 1 to 18% chalcopyrite based on visual estimates with results pending

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ForThe Company's Managing Director, Rob Watkins commented:

"The Nil Desperandum discovery continues to grow. The continuity of the wide zones of copper mineralisation is excellent and the copper grades are clearly increasing at depth to the southernmost hole drilled which intersected 41m @ 4.1% copper in NLDD044. While we must wait to complete heritage surveys before we can target the IP anomalies over 400m strike southwest of NLDD044, we have no shortage of quality drill targets to pursue at the Lady Fanny Prospect, where six lines of IP are in progress targeting below shallow drill results of up to 27m @ 2.8% copper, 0.8 g/t gold in LFRC009. We eagerly await results from drilling at Nil Desperandum and IP geophysics from Lady Fanny."

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ASX Announcement 11 February 2022

Fast Facts

Shares on Issue 143.5M

Market Cap (@ $1.86) $267M

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

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GREATER DUCHESS COPPER GOLD PROJECT

NIL DESPERANDUM PROSPECT (CARNABY 82.5%)

Figure 1. Plan of Nil Desperandum Showing location of NLRC067, NLRC069 and IP.

NLRC069

RC hole NLRC069 has recorded a 70m downhole interval of copper sulphide (chalcopyrite) mineralisation from 195m, containing from 1 to 18% chalcopyrite based on visual estimates with results pending (refer Table 1 & 2 in Appendix 1 of this report).

NLRC069 was collared ~40m northeast of the discovery hole NLDD044 which intersected 41m

• 4.1% copper (see ASX release 29 December 2021) and the follow up hole NLRC066 which intersected 50m of copper sulphides with results pending (see ASX release 4 February 2022).

Importantly the broad zones of copper sulphide mineralisation intersected in NLRC069 confirm the robust continuity and orientation of the mineralisation. The geometry of the Nil Desperandum deposit from the surface to the deepest down plunge intersection in NLDD044 is remarkably consistent in dimensions, however the copper grade is clearly

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increasing at depth and remains completely open southwest from the highest grade intersection to date in NLDD044 (Figure 3).

Figure 2. Drill Section showing location of drill hole NLRC069.

Figure 3. Drill Section showing location of drill hole NLDD044 and NLRC066.

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NLRC067

NLRC067 was collared approximately 75m northeast of NLDD044 and intersected 63m of copper sulphide mineralisation from 169m, containing from 1 to 18% chalcopyrite based on visual estimates with results pending (refer Table 1 & 2 in Appendix 1 of this report).

NLRC067 was drilled to test the high-grade plunge position between NLDD044 which intersected 41m @ 4.1% copper and NLRC017 which intersected 87m @ 0.9% copper including 30m @ 1.8% copper. The hole deviated slightly west of the planned pierce point however it intersected broad zones of copper mineralisation confirming robust continuity of the high- grade breccia shoot between sections.

Figure 4. Drill Section showing location of drill hole NLRC067.

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NLRC055

NLRC055 was collared approximately 500m northeast of Nil Desperandum, targeting an area of historical IP coincident with a northeast trending surface soil geochemical anomaly (Figure 1). The hole encountered a similar host unit to Nil Desperandum and recorded anomalous halo style disseminated copper sulphide mineralisation with results pending (refer Table 1 & 2 in Appendix 1 of this report).

INDUCED POLARISATION (IP) SURVEY RESULTS

Results from the remaining three lines of IP at Nil Desperandum 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.

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 targeting the new IP anomalies can take place. Due to the spread of Covid- 19 throughout Queensland, short delays in completing heritage surveys are being experienced, however the local land council is trying to complete the heritage surveys at their earliest availability.

A program of six 100m spaced IP lines are currently being completed at the Lady Fanny prospect where stunning drill results up to 27m @ 2.8% copper and 0.8 g/t gold were received from first pass RC drilling three kilometres north of Nil Desperandum (see ASX release 13 January 2022).

Figure 5#. Nil Desperandum 3D IP chargeability inversion model looking southeast.

# All recent drill holes where assay results have not yet been received are not shown in the 3D diagram

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