Carnavale Resources Updates Kookynie Gold Project Resource Estimate and Advances Feasibility Study for Low-Capex Mining

Resource Growth Reinforces Kookynie as a Significant Gold Deposit

Carnavale Resources' updated Mineral Resource Estimate highlights the substantial mineralisation at the Kookynie Gold Project. The total resource now stands at 855 kilotonnes at 4.4 grams per tonne gold, amounting to 120,000 ounces, marking a 2.5% increase over the July 2025 estimate. This uplift results from ongoing infill drilling and resource definition activities enhancing the project's value.

Resource classification details include 182 kt at 5.1 g/t (30,000 ounces) measured, representing 25% of the total; 278 kt at 5.6 g/t (50,000 ounces) indicated, accounting for 42%; and 394 kt at 3.2 g/t (40,000 ounces) inferred, comprising 33%. Combined Measured and Indicated resources now make up 67% of the total, indicating strong geological confidence.

Shallow Open Pit Resources Support Low-Risk, Low-Capex Development

The project’s development strategy focuses on a low-capital open pit operation, supported by favourable resource geometry. Resources above 320 metres elevation—the proposed open pit zone—total 409 kt at 3.9 g/t for 52,000 ounces, representing 43% of the total resource. This shallow mineralisation allows mining to commence within 20 metres of surface across multiple zones.

Within this open pit envelope, 182 kt of Measured resources (58% of shallow resources) significantly reduce mine design and scheduling risks. Indicated resources above 320 metres total 101 kt at 3.6 g/t, with Inferred resources adding 126 kt at 2.5 g/t. Oxide material, which is amenable to simpler processing, comprises 21% of the shallow resource. Additionally, bonanza-grade gold zones remain open at depth within the proposed pits, offering exploration upside.

Underground Resource Supports Transition to Deeper Mining

The Mineral Resource Estimate includes an underground component based on a 1.5 g/t cutoff grade, underpinning Carnavale’s phased mining approach. This strategy envisages initial shallow open pit extraction followed by underground mining, facilitated by contract mining and toll treatment at a nearby third-party processing facility.

The underground resource extends beyond the open pit area, supporting a longer mine life. Bonanza-grade gold zones remain open at depth in the Swiftsure and Tiptoe pits, indicating potential for further resource expansion through ongoing drilling. Geological continuity and grade persistence at depth reduce operational and financial risks associated with underground mining.

Infill Drilling Enhances Resource Confidence and Ore Reserve Potential

The updated estimate incorporates results from 138 reverse circulation holes drilled on a close 10x10 metre grid across the Swiftsure and Tiptoe pits. This infill drilling aimed to upgrade Indicated resources to Measured status, lowering geological uncertainty and supporting detailed mine planning. This grade control drilling mitigates operational risks during the mine’s payback period by providing precise ore tonnage and grade data.

Carnavale’s completion of grade control drilling ahead of the BFS positions the company to declare ore reserves upon BFS finalisation. The detailed drilling supports Probable and Proved Reserve classifications, crucial for advancing the project toward development and reducing investor risk.

Geotechnical and Metallurgical Programs Near Completion

A geotechnical drilling program comprising six diamond holes around the Swiftsure and Tiptoe pits has been completed. Specialist consultant Peter O'Bryan & Associates Pty Ltd utilised core data and hydrogeological information to establish open pit design criteria. Ground conditions in fresh rock are rated good to very good, indicating stable mining conditions.

Metallurgical testing by Independent Metallurgical Operations Pty Ltd on ore from Swiftsure and Tiptoe meets BFS standards. Testing covered gold recovery and processing characteristics across fresh, intermediate, and oxide ores. Large-diameter diamond drilling provided over 150 kg of core for composite samples, supplemented by more than 600 kg from reverse circulation drilling. Tests included bond work index, abrasion, hardness, and leach assessments, with results expected in early August 2026. Waste rock characterisation by SRK Consulting is complete, pending final reports for BFS inclusion.

Environmental and Hydrogeological Studies Facilitate Mine Planning

Environmental surveys using specialist consultants have been completed across the mining lease. Detailed LIDAR surveys over the water catchment area support accurate surface water flow modelling, integrated with heritage surveys to inform mine site layout. This data guides placement of waste dumps, soil stockpiles, roads, magazines, workshops, and offices.

Hydrogeological studies have defined water availability and dewatering requirements. A production water bore and monitoring bores have been established on granted mining lease M40/362. This characterisation reduces operational risk by confirming water supply for processing and quantifying dewatering volumes and costs during open pit mining. Water management planning is integrated with environmental and heritage considerations for comprehensive feasibility study development.

Exploration Drilling Targets Resource Growth in Q3 2026

Carnavale plans approximately 5,000 metres of aircore drilling in Q3 2026, targeting structural zones at the Puzzle granite/greenstone contact within the Kookynie tenements. The program includes 19 rows of aircore holes guided by geological data from prior drilling, recent infill results, aeromagnetic imagery, and gravity modelling. This targets a known prospective gold mineralisation zone.

Additional exploration prospects remain untested within the tenement package, including Champion South, McTavish North, and Valiant south of Swiftsure. Bonanza-grade gold shoots at Swiftsure and Tiptoe remain open at depth, offering further resource expansion potential. These targets provide medium-term upside that could extend mine life beyond current feasibility assumptions.

BFS on Schedule for Q3 2026 Completion

The Kookynie Gold Project’s Bankable Feasibility Study is progressing on schedule, with most technical components complete or near completion. Managing Director Humphrey Hale stated that the majority of technical work was finished in H1 2026, with final reports pending. Remaining tasks include finalising the mining schedule and BFS financial model, integrating all technical results for economic evaluation.

The company expects to release the final BFS in Q3 2026, providing investors with a key milestone to assess project economics and development potential. The BFS will detail capital requirements, operating costs, schedules, and financial returns. Such studies are critical de-risking events for development-stage mining projects, offering independent technical and financial validation for investment decisions.

Cost-Efficient Development Strategy Employs Contract Mining and Toll Processing

Carnavale’s development approach for Kookynie emphasises cost control through contract mining and toll treatment at a nearby third-party processing plant. This model reduces capital intensity by outsourcing mining and milling operations, contrasting with traditional vertically integrated mining companies. The low-capex strategy aligns with investor preferences for capital-efficient projects with minimized upfront financial risk.

The transition from open pit to underground mining using contract mining provides operational flexibility and lowers exposure to underground mining risks. By engaging contractors for both mining phases, Carnavale can focus on mine planning, oversight, and economics rather than direct mining operations. This approach is proven and widely adopted by Australian mining companies managing small to medium-scale deposits.