Kookynie Gold Project NPV Confirmed at AUD 188m with 165% IRR at AUD 5,500/oz

• Retraction of overstated NPV and cashflow figures for gold prices above AUD 6,500/oz
• Confirmed NPV of AUD 188 million and IRR of 165% at AUD 5,500/oz gold price
• Ongoing feasibility study targeting mid-2026 completion
• High-grade resource of 117,000 ounces at 4.3g/t gold with near-term production focus
• Active drilling campaign and exploration upside in Western Australia

Correction and Clarity

Carnavale Resources Ltd has issued a retraction and replacement of its investor presentation originally released on 11 February 2026. The correction addresses overstated forecast net present value (NPV) and undiscounted cashflow figures related to gold prices exceeding AUD 6,500 per ounce in the Kookynie Gold Project scoping study. Investors are advised to disregard the previous figures for investment decisions.

The replacement presentation recalibrates expectations, confirming a robust project valuation with an NPV of AUD 188 million and an internal rate of return (IRR) of 165% based on a gold price of AUD 5,500 per ounce. This adjustment aligns with more conservative and realistic gold price assumptions, providing a clearer financial outlook for the project.

Project Highlights and Economics

The Kookynie Gold Project, located in the Eastern Goldfields of Western Australia, remains a high-grade, near-term production asset. The updated mineral resource estimate stands at 842,000 tonnes grading 4.3 grams per tonne for 117,000 ounces of gold, with 66% classified as indicated resources. Notably, a bonanza-grade core of 60,000 tonnes at 28.3 grams per tonne accounts for 55,000 ounces, underscoring the project's high-quality resource base.

The scoping study highlights a five-year mine life with a payback period of just 14 months and an all-in cost of approximately AUD 2,824 per ounce recovered. The project benefits from proximity to multiple operating gold mines and several toll treatment options within 200 kilometres, enhancing processing flexibility and cost management.

Advancing Towards Production

Carnavale is progressing a comprehensive feasibility study (BFS) with a target completion in the second half of 2026. The BFS incorporates initial open pit mining and a toll treatment ore processing strategy, aiming for a shovel-ready status by the third quarter of 2026. Key preparatory steps, including heritage agreements, mining lease grants, and technical studies, are either complete or underway.

The company has also commenced an active drilling campaign comprising diamond, reverse circulation, and water bore drilling to refine resource estimates, confirm geotechnical assumptions, and explore additional upside potential within the project area. Exploration targets such as Valiant, McTavish North, and Champion South offer further growth opportunities.

Leadership and Capital Structure

Carnavale's board and management team bring extensive experience in exploration and mine development, with CEO Humphrey Hale and Non-Executive Chairman Andy Beckwith leading the charge. The company has a market capitalisation of approximately AUD 57 million and an enterprise value near AUD 51 million, supported by major shareholders including directors and institutional investors.

Unlisted options and performance rights provide potential future capital inflows, while the company’s share consolidation to 407 million shares post-AGM aims to streamline its capital structure ahead of development milestones.

Bottom Line?

With corrected forecasts in place, Carnavale’s Kookynie project is poised for critical feasibility milestones that will shape its path to production and investor confidence.

Questions in the middle?

• What impact will the corrected financial forecasts have on Carnavale’s valuation and investor sentiment?
• How will ongoing drilling results influence the feasibility study and potential resource upgrades?
• What funding strategies will Carnavale pursue to advance Kookynie into production?