31 Octber 2018 QUARTERLY ACTIVITIES REPORT FOR PERIOD ENDED 30 SEPTEMBER 2018 Summary Caravel Cpper Prject Results f cre drilling prgram at Bindi and Dasher cnfirmed higher grade re znes which shuld allw greater flexibility t mine higher grades early in schedule and ptins fr reduced capex as a staged develpment Cmmencement f wrk prgrams and studies including new resurce mdelling, metallurgical test wrk, engineering studies, infrastructure studies, grundwater supply studies, land tenure, scial and envirnmental studies Stakehlder and cmmunity engagement with key grups Crprate Successfully raised $1.51m (after csts) in a rights issue t fund nging wrk prgrams New website launched see www.caravelminerals.cm.au At 30 September 2018, the Cmpany had cash reserves f apprximately AU$1.7M Caravel Cpper Prject Resurces A new phase f cre drilling at Caravel Cpper Prject cnfirmed the existence f well defined, higher grade re znes (estimated ver 0.5% Cu, assays pending) at Bindi. Apprximately 1,000m f HQ diamnd cre drilling was cmpleted including new cre hles at Bindi East, Bindi West and Dasher which tested the interpreted cntinuity f higher grade intercepts frm existing drill spacing, which has a relatively wide spacing f arund 100m n sectins and 200m between sectins. Whilst the current spacing has been adequate fr reprting indicated resurces at the lwer cut ff grades and brad (~150m) wide re znes it was necessary t btain mre detailed gelgy frm cre drilling t interpret the higher grade znes (see Figure 1). Caravel s discvery f the higher grade znes gives significantly better understanding f the re bdy and the ptins fr mining. The higher grade znes will be incrprated int an updated resurce mdel which will prvide an imprved estimate f the re grade and distributin, allwing cnsideratin f varius prject develpment ptins including the ability t plan mining f higher grades early in the schedule and staging f develpment t reduce initial capex requirements. +61 8 9426 6400 www.caravelminerals.cm.au Suite 1, 245 Churchill Avenue Subiac WA 6008
Quarterly Activities Reprt Quarter ended 30 September 2018 Caravel Minerals Figure 1: Crss Sectin thrugh Bindi West (6,573,300mN) shwing new dmain interpretatins and visual estimates f percentage chalcpyrite. Feasibility Studies Caravel has appinted a new team t prgress the prject s pre feasibility studies, led by Steve Abbtt as Study Manager. Other internal appintments include Bruce McLarty as Cmmercial Manager and Chantal Hartstne as Manager f Stakehlders and Cmmunicatins. The fllwing key cnsultants have been engaged by Caravel t undertake the pre feasibility studies. Getechnical Dempers & Seymur Metallurgy / Prcess Design Aurifex Engineering MSP Engineering Mining Orelgy Tailings Knight Piesld Water Glbal Hydr Envirnmental Varius experts and cnsultants Frward Prgram Resurce Cmpletin f the five hle diamnd drilling prgram will ccur in early Nvember. Cre frm the prgram is being used fr getechnical and metallurgical testwrk/studies. An RC drilling prgram cnsisting f apprximately 15hles fr 2000 metres will fllw the diamnd drilling in Nvember /December t further delineate the re bdy testing pen extensins 2
Quarterly Activities Reprt Quarter ended 30 September 2018 Caravel Minerals Results frm the drilling campaigns will be incrprated int the new gelgy mdel and used fr the updated resurce estimate. The updated resurce will prvide the basis fr new pit designs and mine schedules. The new mine studies will cnsider new ptins fr mine develpment including earlier scheduling f higher grade re as well as ptential reductin f plant size and staged develpment t reduce initial capital cst Feasibility Studies The feasibility study team is fcussing n the fllwing activities: Getechnical studies fr the mine planning Metallurgical test wrk t develp a mre detailed flw sheet fr csting and design wrk and als prduce cncentrate specificatins fr marketing Infrastructure studies including prject input requirements, water, pwer, transprt and preliminary engineering. Land tenure, scial and envirnmental planning and prcesses Regulatry apprvals scheduling Prgressin f partnership/financing ptins. Envirnmental baseline data cllectin Health & Safety The Cmpany incurred zer LTI s during the quarter. Crprate Since the last quarterly reprt; Caravel issued 32,495,251 new shares in a nn renunceable rights issue t raise $1.51m after csts. Bridge Street Capital Partners Pty Ltd was the lead manager and partially underwrte the Offer. 7,900,000 incentive ptins were issued t staff. At 30 September 2018 the Cmpany had; 153,116,465 shares n issue 44,013,222 ptins n issue (strike price between 6c and 12c) $1.67m held in cash reserves Nil debt 3
Quarterly Activities Reprt Quarter ended 30 September 2018 Caravel Minerals Appendix A Tenement Schedule Prject Lcatin Tenement Equity at 1 Jul 2018 Equity at 30 Sep 2018 Changes in Quarter Calingiri Wngan/Gmalling E70/2788 100 100 Calingiri Gmalling E70/2789 100 100 Calingiri Gmalling E70/4674 100 100 Calingiri Wngan E70/3674 100 100 Calingiri Gmalling E70/3680 100 100 Calingiri Gmalling E70/3755 100 100 Calingiri Gmalling E70/4746 100 100 Calingiri Gmalling E70/4732 100 100 Calingiri Wngan E70/4476 100 relinquished Calingiri Wngan E70/4517 100 relinquished Calingiri Wngan P70/1593 100 100 Calingiri Wngan E70/4675 100 100 Calingiri Wngan E70/4676 100 100 Calingiri Wngan E70/2343 80 80 4
Quarterly Activities Reprt Quarter ended 30 September 2018 Caravel Minerals Appendix B Lcatin f 2018 diamnd cre hles at Bindi and Dasher 5
Quarterly Activities Reprt Quarter ended 30 September 2018 Caravel Minerals Appendix C Mineral Resurces The fllwing table presents the Calingiri Resurce sensitivity t varius lwer and higher cut ff grades. Calingiri Prject Mineral Resurces Categries at Varius Cut ff Grades Cut ff Grade Tnnes (MT) Indicated Inferred Ttal Resurce Grade Cu % Cu Metal (T) Tnnes (MT) Grade Cu % Cu Metal (T) Tnnes (MT) Grade Cu % Cu Metal (T) 0.30 106 0.38 405,047 38 0.39 144,751 143 0.38 549,798 0.25 187 0.34 626,279 64 0.34 218,022 251 0.34 844,301 0.20 297 0.30 874,905 105 0.30 307,600 402 0.30 1,182,506 0.15 390 0.27 1,039,787 139 0.28 368,129 530 0.27 1,407,918 1. Cmpetent Persns Statements The infrmatin in this reprt that relates t the Calingiri Mineral Resurce estimates is extracted frm an ASX Annuncement dated 4 April 2016, (see ASX Annuncement 4 April 2016 Calingiri Maiden JORC Resurce and in relatin t the aircre drilling,results is extracted frm ASX Annuncements dated 14 March and 4 April 2017, www.caravelminerals.cm.au and www.asx.cm.au ). The Cmpany cnfirms that it is nt aware f any new infrmatin r data that materially affects the infrmatin included in the riginal market annuncement and that all material assumptins and technical parameters underpinning the Mineral Resurce estimates in the relevant market annuncement cntinue t apply and have nt materially changed. The Cmpany cnfirms that the frm and cntext in which the Cmpetent Persn s findings are represented have nt been materially mdified frm the riginal market annuncement. 2. Frward Lking Statements. This dcument may include frward lking statements. Frward lking statements include, but are nt necessarily limited t, statements cncerning Caravel Minerals planned explratin prgrammes, studies and ther statements that are nt histric facts. When used in this dcument, the wrds such as culd, indicates, plan, estimate, expect, intend, may, ptential, shuld and similar expressins are frward lking statements. Such statements invlve risks and uncertainties, and n assurances can be prvided that actual results r wrk cmpleted will be cnsistent with these frward lking statements. 3. Prductin Targets and Financial Infrmatin. Infrmatin in relatin t the Calingiri Prject Scping Study, including prductin targets and financial infrmatin, included in this reprt is extracted frm an ASX Annuncement dated 28 June 2016, (see ASX Annuncement 28 June 2016, Scping Study Cnfirms Outstanding WA Cpper Prject, www.caravelminerals.cm.au and www.asx.cm.au. The Cmpany cnfirms that all material assumptins underpinning the prductin target and financial infrmatin set ut in the annuncement released n 28 June 2016 cntinue t apply and have nt materially changed. Fr any queries please cntact the Cmpany Secretary, Daniel Davis n +61 8 9426 6400 6
Appendix 5B Mining explratin entity and il and gas explratin entity quarterly reprt Name f entity Caravel Minerals Limited ABN Quarter ended ( current quarter ) 41 120 069 089 30 September 2018 Cnslidated statement f cash flws 1. Cash flws frm perating activities Current quarter (3 mnths) Year t date (3 mnths) 1.1 Receipts frm custmers 1.2 Payments fr (a) explratin & evaluatin (132) (132) (b) explratin & evaluatin staff (c) develpment (d) prductin (e) staff csts (149) (149) (f) administratin and crprate csts (175) (175) 1.3 Dividends received (see nte 3) 1.4 Interest received 1 1 1.5 Interest and ther csts f finance paid 1.6 Incme taxes paid 1.7 Research and develpment refunds 1.8 Other (refund f security depsit) 44 44 1.9 Net cash frm / (used in) perating activities (412) (412) 2. Cash flws frm investing activities 2.1 Payments t acquire: (a) prperty, plant and equipment (52) (52) (b) tenements (see item 10) (c) investments (d) ther nn current assets 2.2 Prceeds frm the dispsal f: (a) prperty, plant and equipment (b) tenements (see item 10) (c) investments 42 42 (d) ther nn current assets 2.3 Cash flws frm lans t ther entities 2.4 Dividends received (see nte 3) 2.5 Other (prvide details if material) 2.6 Net cash frm / (used in) investing activities (3) (3) + See chapter 19 fr defined terms 1 September 2016
Appendix 5B Mining explratin entity and il and gas explratin entity quarterly reprt Cnslidated statement f cash flws Current quarter (3 mnths) Year t date (3 mnths) 3. Cash flws frm financing activities 3.1 Prceeds frm issues f shares 1,625 1,625 3.2 Prceeds frm issue f cnvertible ntes 3.3 Prceeds frm exercise f share ptins 3.4 Transactin csts related t issues f shares, cnvertible ntes r ptins (108) (108) 3.5 Prceeds frm brrwings 3.6 Repayment f brrwings 3.7 Transactin csts related t lans and brrwings 3.8 Dividends paid 3.9 Other (Payments fr Share buyback) 3.10 Net cash frm / (used in) financing activities 1,517 1,517 4. Net increase / (decrease) in cash and cash equivalents fr the perid 4.1 Cash and cash equivalents at beginning f perid 563 563 4.2 Net cash frm / (used in) perating activities (item 1.9 abve) (412) (412) 4.3 Net cash frm / (used in) investing activities (item 2.6 abve) (3) (3) 4.4 Net cash frm / (used in) financing activities (item 3.10 abve) 1,517 1,517 4.5 Effect f mvement in exchange rates n cash held 4.6 Cash and cash equivalents at end f perid 1,666 1,666 5. Recnciliatin f cash and cash equivalents at the end f the quarter (as shwn in the cnslidated statement f cash flws) t the related items in the accunts Current quarter Previus quarter 5.1 Bank balances 1,666 563 5.2 Call depsits 5.3 Bank verdrafts 5.4 Other (prvide details) 5.5 Cash and cash equivalents at end f quarter (shuld equal item 4.6 abve) 1,666 563 + See chapter 19 fr defined terms 1 September 2016
Appendix 5B Mining explratin entity and il and gas explratin entity quarterly reprt 6. Payments t directrs f the entity and their assciates Current quarter $'000 6.1 Aggregate amunt f payments t these parties included in item 1.2 26 6.2 Aggregate amunt f cash flw frm lans t these parties included in item 2.3 6.3 Include belw any explanatin necessary t understand the transactins included in items 6.1 and 6.2 Payment f directr fees 7. Payments t related entities f the entity and their assciates Current quarter $'000 7.1 Aggregate amunt f payments t these parties included in item 1.2 7.2 Aggregate amunt f cash flw frm lans t these parties included in item 2.3 7.3 Include belw any explanatin necessary t understand the transactins included in items 7.1 and 7.2 Bridge Street Capital, a related party f Mr Alex Sundich, was paid $86,000 plus GST fr underwriting fees and lead manager services and prvided t Caravel in cnnectin with the September 2018 rights issue. This utflw is shwn at 3.4. 8. Financing facilities available Ttal facility amunt at quarter end Amunt drawn at quarter end 8.1 Lan facilities 8.2 Credit standby arrangements 8.3 Other (please specify) 8.4 Include belw a descriptin f each facility abve, including the lender, interest rate and whether it is secured r unsecured. If any additinal facilities have been entered int r are prpsed t be entered int after quarter end, include details f thse facilities as well. + See chapter 19 fr defined terms 1 September 2016
Appendix 5B Mining explratin entity and il and gas explratin entity quarterly reprt 9. Estimated cash utflws fr next quarter 9.1 Explratin and evaluatin 950 9.2 Develpment 9.3 Prductin 9.4 Staff csts 342 9.5 Administratin and crprate csts 86 9.6 Other (prvide details if material) 9.7 Ttal estimated cash utflws 1,378 10. Changes in tenements (items 2.1(b) and 2.2(b) abve) Tenement reference and lcatin Nature f interest Interest at beginning f quarter Interest at end f quarter 10.1 Interests in mining tenements and petrleum tenements lapsed, relinquished r reduced E70/4476 E70/4517 Direct Direct 100% 100% % % 10.2 Interests in mining tenements and petrleum tenements acquired r increased Cmpliance statement 1 This statement has been prepared in accrdance with accunting standards and plicies which cmply with Listing Rule 19.11A. 2 This statement gives a true and fair view f the matters disclsed. Daniel Davis Cmpany Secretary Date: 31 Octber 2018 Ntes 1. The quarterly reprt prvides a basis fr infrming the market hw the entity s activities have been financed fr the past quarter and the effect n its cash psitin. An entity that wishes t disclse additinal infrmatin is encuraged t d s, in a nte r ntes included in r attached t this reprt. 2. If this quarterly reprt has been prepared in accrdance with Australian Accunting Standards, the definitins in, and prvisins f, AASB 6: Explratin fr and Evaluatin f Mineral Resurces and AASB 107: Statement f Cash Flws apply t this reprt. If this quarterly reprt has been prepared in accrdance with ther accunting standards agreed by ASX pursuant t Listing Rule 19.11A, the crrespnding equivalent standards apply t this reprt. 3. Dividends received may be classified either as cash flws frm perating activities r cash flws frm investing activities, depending n the accunting plicy f the entity. + See chapter 19 fr defined terms 1 September 2016