Carpentaria Resources : Company Update

29 March 2021

Company Update

Carpentaria Resources Limited (ASX:CAP) advises that Pure Metals Pty Ltd continues to be in breach of its contractual obligations owed to CAP.

Since CAP's last update on 19 March 2021, CAP has not received any legal response from Pure Metals in relation to the relevant breach notices. As you might expect, the breaches by Pure Metals have caused CAP delays in respect of progressing the Hawsons Iron Project.

Despite this, CAP is now clear as to how and when it will proceed, starting with holding Pure Metals accountable for all of the obligations that Pure Metals owes to CAP. This includes all of the obligations owed to CAP under the share and purchase agreement (approved by shareholders at the Company's annual general meeting on 2 November 2020, and pursuant to which Pure Metals will be essentially removed as a joint venture interest holder and converted into a shareholder of CAP) (SPA).

That is, CAP will take all necessary steps to enforce all of its contractual rights against Pure Metals and any other parties (including Pure Metals directors and/or officers) that have breached their obligations to CAP. CAP has taken legal advice and is confident in its ability to hold Pure Metals (and associated parties) accountable for its corporate conduct to date.

CAP also advises that ASX has granted a waiver in respect of the application of Listing Rule 10.7 in respect of the shares that are to be issued to Pure Metals upon completion of the SPA. The effect of this waiver is that these shares will not be subject to compulsory restriction for twelve months.

Released by authority of the Board

Carpentaria Resources Ltd [phone]

Carpentaria Resources Limited	ABN : 63 095 117 981 ASX : CAP	[e-mail]
Level 7, 333 Adelaide Street	PO Box 10919,	carpentariares.com
Brisbane Qld 4000	Adelaide St Brisbane Qld 4000

1