Caravel Minerals : Annual Report to shareholders

ANNUAL REPORT 2022

COPPER EXPLORATION AND DEVELOPMENT

ASX:CVV

CORPORATE DIRECTORY

DIRECTORS AND COMPANY SECRETARY

MR WAYNE TRUMBLE

Non-Executive Chairman

MR STEVE ABBOTT

Managing Director

MR ALASDAIR COOKE

Executive Director

MR RICHARD MONTI

Non-Executive Director

MR DANIEL DAVIS

Company Secretary

REGISTERED AND PRINCIPAL OFFICE

CARAVEL MINERALS LIMITED Suite 1, 245 Churchill Avenue Subiaco Western Australia 6008 [phone]

AUSTRALIAN BUSINESS NUMBER

ABN 41 120 069 089

SHARE REGISTER

ATOMIC GROUP

Level 2, 267 St Georges Terrace

Perth Western Australia 6000

ASX CODE

CVV

SOLICITORS

FAIRWEATHER CORPORATE LAWYERS

595 Stirling Highway

Cottesloe Western Australia 6011

AUDITORS

BDO AUDIT (WA) PTY LTD

Level 9, Mia Yellagonga Tower 2

5 Spring Street

Perth, Western Australia 6000

2022 Pre-Feasibility Study available at

caravelminerals.com.au and asx.com.au

ASX:CVV	caravelminerals.com.au	Annual Report 2022

MANAGING DIRECTOR'S REPORT

The past 12 months have seen Caravel Minerals (ASX:CVV) complete a significant Pre- Feasibility Study work program and deliver important milestones to advance the large-scale,long-life Caravel Copper Project in Western Australia. The full range of feasibility studies continue to clearly demonstrate the Caravel Copper Project is a robust and executable project capable of near-term development. Caravel is one of very few large copper projects in a stable jurisdiction (WA) that is advancing towards production at a time when copper metal is forecast to enter a deficit of between 4 - 10Mpta by 2030.

I am very pleased to provide an overview of progress in the 2022 Financial Year and Caravel's outlook for the period ahead.

A major milestone was the delivery of a Pre-feasibility Study (PFS) and a maiden Ore Reserve Estimate for the project in July 2022. The Ore Reserve (JORC 2012)

of 583.4Mt at 0.24% copper for 1.42Mt contained copper (at 0.10% cut-off) consists of Proven Ore Reserves of 105.4Mt for 0.28Mt contained copper and Probable Ore Reserves of 478.0Mt for 1.14Mt contained copper. Over 81.6% of the Project's 28-year mine life is now

in Ore Reserve.

The culmination of wide-ranging technical, commercial and environmental studies, the PFS confirmed annual production of ~62,000 tonnes (copper metal in concentrate) based on the parallel development of two 13.9Mtpa capacity trains for a total throughput capacity of 27.8Mtpa to generate strong cashflows over an initial 28-year mine life.

The PFS also determined low operating costs

(C1 costs of ~US$1.72/lb) due to a very low strip-ratio of 1.3:1 (including pre-strip), good metallurgy with high copper recoveries and low-cost electricity enabling the use of a safer, more efficient, lower carbon emitting automated and electrified fleet from the start-up of operations.

As well as demonstrating a clear pathway for development, the July 2022 PFS outlined opportunities to improve the process plant flowsheet, including

its consolidation into a single ~27Mtpa throughput train, the use of High-Pressure Grinding Rolls (HGPRs) replacing Semi-Autogenous Grinding (SAG) Mills and the adoption of Coast Particle Flotation (CPF).

PFS Update studies on the optimised single train flowsheet commenced in July this year and were reported in September, delivering processing cash unit cost reductions of $1.23/t of ore, primarily due to lower power costs arising from the use of HGPR and CPF. The processing cost savings resulted in increased annual free cashflow of ~A$35m,

or $A$870m over life of mine. C1 cash costs reduced from US$1.72/lb (PFS) to US$1.54/lb and AISC reduced from US$2.55/lb (PFS) to US$2.37/lb. The changes

to cashflows and capital resulted in an increase in Project NPV (7%) from A$1.1B (PFS) to A$1.5B.

The PFS studies are based on the Bindi and Dasher deposits which make up only 6km of a 30km mineralised system within the Caravel tenement package. There remains clear and substantial upside for resource growth with several deposits having demonstrated good mineralisation based on limited drilling to date.

Earlier in FY22, we released an updated Mineral Resource of 1.18 billion tonnes at 0.24% Cu and 48 ppm Mo for 2.84Mt of contained copper (0.1% Cu cut-off), incorporating results from Reverse Circulation (RC) percussion and diamond drilling at the Bindi deposit.

This was on the back of 7,740m diamond and 20,233m RC percussion drilling aiming to better delineate the grade and distribution of copper-molybdenum mineralisation in the Bindi Hinge Zone and Bindi East Limb which are the first areas to be mined.

The drilling at Bindi aimed to increase confidence within planned starter pits and was achieved with results showing shallow mineralisation at similar or higher grades to previous drilling. Diamond drilling also provided core material which will be used for metallurgical test work and geotechnical analysis as part of the Project's Definitive Feasibility Study (DFS).

Caravel completed a Share Placement and entitlement issue to Shareholders during the FY to complete feasibility and optimisation studies and continue critical path activities for the Caravel Project. We would like to take this opportunity to thank new

and existing Shareholders for their support of the Company as it effectively utilises funds to position for long-term success.

Caravel has a strong management team that was further bolstered during the year with the appointments of Mining Manager Jason Vos, Approvals Manager Michael Klvac and Don Hyma as an advisor to our Board, providing guidance on our project implementation strategy. I'd like to thank my fellow Board members and

our management team for their support and efforts over the past year, and our staff and contractors who have also worked incredibly hard to make progress towards the Caravel Copper Project's development.

Caravel values the effective working relationships with a wide range of stakeholders involved in the work programs associated with the PFS and the project's future development. This involvement and collaboration is highly valued by the Company and in particular we wish to thank landowners who have worked with the Company since copper was first discovered at Wongan Hills dating back to 2009 and continue to play an important part in the future planning of the Project.

The year ahead is very important for positioning Caravel as Australia's next long-term, stable copper production project as it moves into final feasibility. I look forward to delivering further updates as we progress the project towards an investment decision. Caravel looks forward to sharing this journey with you.

Steve Abbott

MANAGING DIRECTOR

5

Caravel Minerals Limited

ASX:CVV

caravelminerals.com.au

Annual Report 2022

ACTIVITIES

23 November 2021 and reported a total of 2.84Mt of

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The Mineral Resource upgrade was announced on

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A ROBUST AND

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REPORT

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contained copper (0.1% Cu cut-off) representing a 53%

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EXECUTABLE COPPER

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increase in contained copper compared to the 2019

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PROJECT

Mineral Resource. The Caravel Copper Project deposits

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are presently the largest undeveloped copper

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Wongan Hills

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HIGHLIGHTS

resources in Australia based on contained copper.

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A range of studies completed during the year suggest

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Caravel Copper Project's large ore bodies can be

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economically mined and processed at a low cut-off grade

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Western

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Ninan North

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Australia

COMPANY

of 0.1% Cu. This is due to low operating costs provided

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by an automated and electrified bulk mining operation,

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Geraldton

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The Company raised around $4.7M in a ($3.0M)

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access to low-cost grid power and the presence of

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CARAVEL

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COPPER

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placement and ($1.7M) rights issue to fund drilling,

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Perth

PROJECT

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established road, port, and other infrastructure the

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Bunbury

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technical studies and project development activities.

Project may leverage (such as towns, proximity to

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Ninan

The Company continued to enjoy strong support

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services and skilled workforce in Perth). There are

30 km

from new and existing shareholders demonstrating

several porphyry copper projects operating in Tier 1

Large, near-surface,

confidence in the Company's copper assets and

jurisdictions exhibiting similar steep grade versus

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a clear focus on progressing the project towards

tonnage curve characteristics to Caravel including

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porphyry-style deposits,

development. The retention and attraction of

over 30km strike

the Gibraltar copper-molybdenum mine, located in

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experienced key management and 'owners team'

south-central British Columbia, Canada (producing

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continued to be a key priority for Caravel.

~60Kt / 130mlbs of Cu per year) and the Copper Mountain

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Canada (producing ~40Ktpa / 80-90 mlbs of Cu per

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port infrastructure

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! ! Bindi!! !

Caravel released a project Scoping Study in November

copper mine located in southern British Columbia,

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2021 which incorporated results from initial Ausenco

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engineering studies and modelled revised assumptions

year). Such projects offer reliable copper supply, strong

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Very low strip ratio

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on the flowsheet, throughput rate, capital estimates,

cashflows and stable mining operations over a very long

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operating costs and revenue forecasts. The 2021

life and offer a very good basis of comparison to Caravel.

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Scoping Study reported on progress of all other PFS

The completion of the PFS in July 2022 and subsequent

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Open-pit bulk mining

activities. At the time of the 2021 Scoping Study release

PFS Update in September 2022 provides Caravel with

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using ACE fleet

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Caravel was preparing a Mineral Resource update which

a strong foundation for continued engagement with

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followed approximately 7,740 metres of diamond drilling

interested parties including potential off-take partners

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Simple and proven

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and 20,233 metres of RC percussion drilling at Bindi and

and other funding stakeholders. The Company remains

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processing method

predominantly on the Bindi East Limb.

in discussions with a range of interested parties.

Dasher

a clean Cu concentrate

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High recoveries with

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Grid power access

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with ESG benefits

Environmental baseline studies complete, clear pathway to approval

Legend

Drilling - Cu% x Metres

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2 km

• 0.0 - 1.0

1.0 - 5.0

5.0 - 10.0

10.0 - 50.0 50.0 - 150.0 Bedrock Geochem Anolmalies (>300pm Cu)

Caravel Tenements

30km Strike Copper

Molybdenum Target Trend

Western Power lines Sealed Road

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6				7

Caravel Minerals Limited

ASX:CVV

RESOURCE DRILLING

Drilling programs were completed at the Dasher deposit and a program of sterilisation air core (AC) drilling surrounding the Bindi deposit. A major infill drilling program was completed at the Bindi East deposit, with a smaller infill drilling program completed at Bindi West.

An extensive 10,825 metre reverse circulation (RC) percussion drilling programs at the Bindi and Dasher deposits tested extensions and continuity of copper mineralisation in the Bindi East Limb, Bindi Lower Limb and Dasher South. A further 4,888 metres of diamond drilling was completed at the Bindi deposit collecting

caravelminerals.com.au

CARAVEL COPPER PROJECT		?
Hinge
Bindi Deposit	Limb?
Drill hole collar locations	Bindi
and Pit designs
LEGEND		Lower
Diamond Drill Hole Collar

RC Drill Hole Collar AC Drill Hole Collar Surface trace of mineralised zone

PFS Starter Pit

Section 6,574,350mN

Ore Reserve Pit

PFS Pit

		Limb	East
Section 6,573,700mN
est	Bindi	Limb
W	East

Annual Report 2022

?

6,575,000mN

East?

Far

6,574,000mN

geotechnical data and material for metallurgical test work. In addition, diamond core drilling tested for depth extensions and structural complexity in the mineralisation of the Dasher copper deposit.

Around 3,487 metres of AC sterilisation drilling was completed to the east, north, south and southwest of the Bindi deposit seeking to identify areas suitable for the placement of site infrastructure. The drilling identified two parallel Cu mineralised zones east of

all	Fault
W
Hanging
?

462,000mE

Bindi

West

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SE	Synform
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N			?
750m	463,000mE	?	464,000mE

6,573,000mN

6,572,000mE

the Bindi East Limb, the two zones have been named Bindi Lower Limb and Bindi Far East.

Figure 2: Bindi deposit air core drilling results

Figure 3: Bindi deposit drill hole collar locations and pit design

As a result, the geological model for the Bindi mineralisation has been revised in light of the confirmation of the presence of the Bindi Southeast Synform at the south end of the Bindi East Zone. The Bindi Lower limb seen to the east of Bindi East, is interpreted to connect with Bindi East through the Southeast Synform. Initial RC drill testing of the Bindi Lower Limb and Bindi Far East positions also returned encouraging primary sulphide mineralisation (Figure 1).

Based on deep drilling results at Bindi, the Company defined an Exploration Target for the intersected mineralisation of 75 to 85 million tonnes at a grade of 0.20% to 0.30% copper, for 150,000 to 255,000 tonnes contained copper (Figure 4).

A further 36 auger holes and five test pits were completed investigating the properties of the soil profile to assist with the potential design for a tailings management facility and 10 shallow water bores

have been installed (532.5m) in paleodrainage features across the project to provide baseline data that will be used in hydrological modelling of the project area.

Drilling programs completed during the year have increased confidence in higher grade areas for resource/reserve classification for consideration in the early stage of a proposed mine schedule.

Figure 1: Bindi South East Synform Cross Section Showing Lower Limb and Far East Positions	Figure 4: Oblique 3D view of the Bindi Deposit showing 2019 Scoping Study open pit shells and location of the Exploration Target.
Highlighted are the deep diamond drill holes on which the Exploration Target is based.

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