Carnaby Resources : Lady Fanny Shines and Expands On New IP Surveys and Drilling

LADY FANNY SHINES AND EXPANDS ON NEW IP SURVEYS AND DRILLING

Car aby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased

to announce new exploration results at the Greater Duchess Copper Gold
Pr ject in Mt Isa, Queensland.
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Highlights
•	At Lady Fanny, three new lines of Induced Polarisation (IP) have
	defined very significant chargeability anomalies. The mineralised
	corridor as defined by drilling and IP, is now greater than 600m long.
• The largest IP chargeability anomaly located on the northern most
use	IP line remains completely open to the north. The anomaly is shown
below left and detailed in this report.
•	Drill hole LFRC019 (pictured above right) has intersected a 21m
personal	downhole zone of strong copper sulphide mineralisation with visual
estimates provided for all 10 holes drilled (refer Table 1 & 2 in
Appendix 1 of this report). Results are pending for all holes.
• At Nil Desperandum, access tracks are complete with RC and diamond
For	tail drilling of the IP anomalies southwest of discovery hole NLDD044
about to commence. Results remain pending from several recent holes.

The Company's Managing Director, Rob Watkins commented:

"The sheer scale of the Lady Fanny discovery is rapidly emerging with every hole we drill and IP line we complete. The limited drilling and IP to date has defined a continuous mineralised strike length of at least 600m which remains completely open. The strong copper sulphide zone intersected in LFRC019 is 200m north of LFRC013 which intersected 20m @ 2.3% copper and 0.5 g/t gold and the large new IP anomaly north of LFRC019 is equally as exciting!"

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ASX Announcement 25 February 2022

Fast Facts

Shares on Issue 143.5M

Market Cap (@ $1.42) $204M

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

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GREATER DUCHESS COPPER GOLD PROJECT

Figure 1. Location Plan of Lady Fanny and Nil Desperandum Discoveries.

LADY FANNY PROSPECT (CARNABY 82.5-100%)

The new RC drilling from an additional 10 holes (RESULTS PENDING) and three new IP survey lines have defined a continuous mineralised corridor over greater than 600m strike length, which remains strongly open in all directions. RC drilling is ongoing and additional IP surveys, which will commence as soon as the IP crews are available to return, are being planned. Additional heritage surveys have just been completed at Lady Fanny, clearing the highly prospective tenure to the north and south of the current exploration programs limits.

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For personal use only

Figure 2. Lady Fanny Plan Showing new IP inversion chargeability anomalies and

location of new RC drill holes with results pending.

LADY FANNY IP RESULTS

Results from the remaining three IP lines at Lady Fanny have all produced strong chargeability inversion anomalies, defining a combined strike length of over 600m (Figure 2). The IP anomalies are almost certainly caused by copper sulphide mineralisation although drilling is yet to test a vast majority of the IP anomalies. Some of the largest and strongest IP chargeability anomalies are from the northern and southern most IP lines, clearly indicating that the Lady Fanny mineralised system is wide open.

Remodelling of the three previously reported IP lines (see ASX release 17 February 2022) has also been completed.

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IP LINE 7649815N

IP line 7649815N is the northern most IP line completed at Lady Fanny (Figure 2 & 3). This IP line is approximately 130m north of any drilling and is in an area where outcropping quartzite hill and scree slopes generally mask the underlying prospective rocks (Figure 1 & 2).

A very large and strong IP chargeability anomaly has been modelled as shown in Figure 3 below. The IP anomaly is directly in line with the projected northern extension of the Lady Fanny line of lode and is most likely caused by copper sulphide mineralisation, although drilling is required to determine this.

Figure 3. IP line L7649815N chargeability inversion showing location of anomaly.

This anomaly is completely open to the north and ongoing exploration including additional IP and drilling is being planned and will commence as soon as possible. The IP anomaly is centred approximately 200m below surface and is modelled to extend vertically to within 100m of the surface. A maximum chargeability of 27 m/sec was modelled.

Access tracks and drill pads are currently being constructed to the north of Lady Fanny and first pass drilling of this anomaly will commence shortly.

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IP LINE 7649560N

IP line 7649560N was completed over the central Lady Fanny workings (Figure 2). No drilling has yet been completed in this area due to the need to establish access tracks and drill pads in amongst sizeable workings and high topographic relief.

This IP line is located approximately 100m north of drill hole LFRC013 which intersected 20m

• 2.3% copper, 0.5g/t gold (See ASX release dated 13 January 2022) and is approximately 100m south of LFRC019 which interested 21m of strong copper sulphide mineralisation as reported in this announcement.

The IP results from this line have modelled two shallow (surface to approximately 75m deep) and very strong IP chargeability anomalies (Figure 4) interpreted to represent the continuation of the two main workings lodes below the circa 10m deep historical open pits and circa 20m deep shaft that were mined in the late 1960's. These IP anomalies clearly suggest that the copper sulphide mineralisation is continuous through this central area. A maximum modelled inversion chargeability of 33 m/sec was recorded.

Figure 4. IP line L7649560N chargeability inversion showing location of anomalies.

The 7649560N IP line has also modelled a deeper inversion chargeability anomaly approximately 100m to the west of the shallow IP anomalies and historical workings (Figure 2

• 4). This deeper western IP chargeability anomaly is modelled across at least 3 IP traverse sections and is currently untested with any drilling. A maximum inversion chargeability of 23 m/sec was modelled. The western IP anomaly represents another high priority drill target.

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