Carnavale Resources Limited (ASX: CAV) is pleased to provide an update on exploration at our nickel projects in Western Australia

Grey Dam Nickel Sulphide Project (Grey Dam)

Ardea Resources Ltd (ASX: ARL or Ardea) new nickel sulphide discovery at Emu Lake highlights the prospective nature of the same ultramafic/mafic sequence along strike into CAV's Grey Dam project.

5 copper / nickel in soil anomalies identified by UFF soil sampling along 10km of the prospective ultramafic / mafic sequence.

Passive seismic program underway over soil anomalies to determine depth of cover to assist EM program design.

Ground EM survey is planned to commence in the March quarter, targeting nickel sulphide conductors and any priority EM conductors to be subsequently drill tested.

Barracuda PGE-Ni-Cu Project

Detailed Heli VTEM survey completed.

Results from the VTEM survey are indicative of conductive cover and paleochannels CEO Humphrey Hale commented: 'The five copper and nickel anomalies at Grey Dam are encouraging and provide an initial focus for the planned EM surveys along this prospective sequence. This northern mafic / ultramafic sequence has never been systematically explored within the project areas due to the transported cover. The UFF soils have been able to look through the transported cover and the passive seismic data aims to delineate the thickness of cover prior and help in planning EM survey configuration. Importantly, the recent nickel sulphide discovery at Emu Lake, by Ardea, confirms the ultramafic / mafic sequence CAV is targeting is prospective for Kambalda style copper nickel sulphide mineralisation.'

Grey Dam Nickel Sulphide Project.

CAV has commenced a passive seismic survey (survey) at Grey Dam to determine the depth of cover associated with 5 nickel / copper soil anomalies identified by the earlier UFF soil sampling program. The survey will be followed up by a ground EM survey aiming to delineate direct drilling targets. The mafic / ultramafic sequence at Grey Dam is located immediately along strike and is the same geological sequence that hosts the new Kambalda style, nickel sulphide Emu Lake discovery recently reported by Ardea. The new Emu Lake discovery demonstrates the nickel sulphide fertility of the mafic ultramafic sequence

The northern area of the Grey Dam Project is covered by transported sheetwash and alluvial material that has deterred previous explorers from investigating this terrain as it was difficult to explore the area using traditional soil sampling techniques. UFF soil sampling is a sensitive new exploration technique that is being evaluated by CSIRO and explorers to successfully target mineralisation under areas of cover.

The Company completed a program of UFF soil sampling over the majority of the interpreted mafic / ultramafic sequence in the northern part of the tenement package on a 100m by 200m grid. A total of 964 soil samples were collected. The aim of the UFF soil sampling program was to define a geochemical response that help CAV economically vector exploration into target zones that have the potential to host Kambalda style nickel sulphides under cover. Refer ASX release dated 12 October 2021, '5 New Nickel / Copper anomalies located at the Grey Dam Nickel Sulphide Project'.

The detailed UFF soil sampling program has successfully delineated five discrete geochemical anomalies under transported cover. The anomalies are defined by the log additive indices of nickel and copper assays that have been levelled with regard to the regolith domain. Levelling the data against the regolith domain has enabled CAV to rank the subsequent anomalies on a like by like basis, consequently subcrop / outcrop anomalies have a discounted priority ranking when compared to sample data from sheetwash areas. A survey comprising twelve passive seismic traverses across the interpreted soil anomalies, to determine the depth of transported cover has commenced. Based on the results of the passive seismic survey, a ground-based EM geophysical survey will be undertaken to delineate conductive nickel sulphide targets beneath the transported cover. CSIRO continues to optimise the information produced by the UFF soil programs.

Data analysis and reporting of the interpretation by CSIRO is ongoing and is expected to refine and improve the identification of anomalies and further information on the underlying geology.

Barracuda PGE-Ni-Cu Project

CAV commissioned Resource Potentials (ResPot) to assist with preliminary processing, imaging, interpretation and targeting of an airborne electromagnetic survey using the VTEM Max system at the Barracuda PGE-Ni-Cu- Project (Barracuda) over part of the Windimurra Intrusive Complex near Mount Magnet, Western Australia. The survey was flown and operated by UTS Geophysics in late 2021 over the entirety of Barracuda to explore for electrically conductive NiS mineralisation. An anomaly picking exercise was completed over the survey area to identify anomalous EM decay responses. Preliminary EM decay images were also generated, including filtered images and ternary images comparing 3 different decay channels in a single image, as well as animation videos to illustrate how the EM field from the ground decays with respect to time. Anomalous responses observed in the data are interpreted to be related to conductive cover and paleochannels, and no significant anomalies have yet been identified that are interpreted to be related to bedrock conductors.

Contact:

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Forward Looking Statements

Statements regarding Carnavale's plans with respect to the mineral properties, resource reviews, programs, economic studies and future development are forward-looking statements. There can be no assurance that Carnavale's plans for development of its mineral properties will proceed any time in the future. There can also be no assurance that Carnavale will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Carnavale's mineral properties.

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