CNB and why it is STILL undervalued!!

WHYCNB IS STILL UNDERVALUED!!

January2021

Dueto being extremely excited about CNB's future potential for growthand prosperity, I thought that tonight I would compile an up-to-dateversion of my research and put it all into one post / doc / pdf...Mainly for my own personal benefit so that I can better understandwhat is happening within the company in its entirety and in simpleEnglish, and because over the last 6 months, so many developmentshave taken place that much of my data is from the “dinosaur-ages”… So I thought I would share it with all of you CNB legends to readthough (and possibly provide some constructive criticism if you see Ihave made any errors or if you have any constructive input which canadd to what I have already included), and for all prospective CNBInvestors to gain a simplified understanding of who CNB is, what wedo, what makes our company so great, the people involved, how muchthey are invested, and the future potential of this ASX Gold Explorerwhich could easily see us reach a Share Price of $1.50 - $3.00 thisyear alone :) (Excluding next year where the “Sky is the Limit”)

Disclosure:Ihave invested a lot of my hard earned money into CNB. I am not aprofessional investor, nor am I a Geologist. There is a lot of jargonto decipher, a lot of maths to calculate and just too muchinformation causing “AnalysisParalysis”,so it is with this summary that I can hopefully have all my researchhere in one place under one roof, outlined in a format that I caneasily follow, and in words that I can understand :) (and you) …

Second Disclosure:Any frequent reader / contributor of the CNB thread will have readmuch of this before (albeit, the older versions that I posted) … IfI come across as a “compulsive summarist”, please forgive me inadvance ...

Ok,so let's start with the basics:

Sowhat is CNB and what does it do?

Carnaby ResourcesLimited (ASX: CNB) is an Australian exploration and developmentcompany focused on gold and copper projects in the Mallina Basin(Strelley) and Yilgarn Margin of Western Australia and the Mt IsaInlier of Queensland (Tick Hill), some of the most highly prospectiveland in Australia for gold exploration.

Mt Isa Inlier(Tick Hill):

The Tick Hill GoldProject near Mount Isa was one of Australia’s highest gradeand most profitable gold deposits ever mined in Australia's recentgold producing history, producing 511,000 ounces at 22.5grams per tonne between 1991 and 1995 byCarpentaria Gold Pty Ltd (a subsidiary of MIM Holdings Limited)before faulting off at 235 m below the surface (Production between1991-95 generated $150-200 Million for MIM at gold price of ONLY US350oz). TODAY, at time of writing, the price of gold is roughly US1850oz which is 5.5 times more. At even a profit of $150 Mil back in91-95, that would equate to profits of 825 Million for Carnabytoday!!

“TheTick Hill Gold Project near Mount Isa, Queensland has one of thehighest grade gold deposits in Australia’s recent gold producinghistory”.

InApril 2019, Carnaby (formerly known as ASX-listed Berkut MineralsLimited ASX:BMT) purchases Tick Hill Gold Mine from DiatremeResources (DRX).

TheTick Hill Gold Project consists of:

CNB'sTick Hill Open Pit Ore Reserves Project(Our Open Pit Mine which CNB owns 100%) of 48,600 tonnes @ 6.53 g/tfor 10,200 ounces (Based on recently completed pre-feasibility study(refer ASX Ann 05 June 2020), which is only 70 meters deep, and hashistorically produced 180,000 oz @ 18grams (18.1 g/t), has recently beendrilled in which newhigh grade RC drill results haveconfirmed that the Tick Hill Main Lode extends 20m into the northwall of this historical open pit (Ann 27 Jan 2021)

Note:(An engineered design open pit cutback of the historical Tick Hillopen pit contains Production Mill Feed of 63,300 t @ 6.14 g/t goldfor 12,500 ounces. Inferred Resources included in the Production MillFeed totals 14,700 t @ 4.9 g/t gold for 2,296 ounces representing 8%of the total Production Mill Feed for the Pre-Feasibility Study) ...So 48,600 + 14,700 = 63,300.

RobWatkins said, “Tick Hill has not benefitedfrom any modern exploration techniques and this [acquisition]provides an opportunity to revitalise one of Australia’shighest-grade gold mines in an exceptional mining jurisdiction andlocation”

Wehave already entered an agreement with BIM and started re-processingthe tailings dam (explained below) which has significantly increasedour Cash (with more on the way), so what does a potential sale of themine or shared mining agreement mean for CNB?

"At TickHill, confirmation of the extension of the Main High Grade lode intothe north wall of the open pit has further de-riskedthe open pit cutback, with a decision to mine or divest one stepcloser.”

Whatdid the recent drilling target?

AtTick Hill North Pit Wall target ( RCprogram targeting the direct extension of the Tick Hill main lodeinto the northern wall of the historical open pit) a total of 11 RCholes for 1,001 m were drilled to test the very high-grade extensionof the main lode into the lower north wall of the historical 70 mdeep open pit. All holes drilled were completed to plan depthintersecting variable thickness of lodestone and laminite ore hosthorizons.

"The Tick Hill open pit cutback is forecast toproduce 63,300t @ 6.1 g/t for 12,500oz generating pre-tax cashflowsof ~$15M at AISC ofA$1,190/oz (Possibly $18 Mil). (AISC is “All-in Sustaining Costs)Carnaby is actively pursuing development options for the Tick Hillopen pit cutback and is completing additional permittingrequirements. A decision to mine and / or agreement to divest part orall of the open pit cutback project is continuingto be evaluated and discussed with3rd parties. (Either way, more CASH on the way)!!

Whether wemine it ourselves, sell it, sell part of it, or mine it together withanother company, Carnaby will receive considerable extra capital toaggressively pursue our exploration activities - On top of ouralready considerable Bank Balance...!

Andfor those interested in the difference between the original estimateof ~$18Mat AISC of A$1,190/oz(05 June / AGM Ann) compared to the most recent forecast of~$15M at AISC of A$1,190/oz,I am assuming that the difference can be derived from the inclusionof otherexpenses such as general office spending and capital used in minedevelopment and production to create a benchmark of a company’soperating efficiency. Unless our most recent Ann (27 JAN) contained a typo error whichshould have read ~$18Mat AISC of A$1,190/oz (Pleaseprovide some input here)

Eitherway, whether it be 15 or 18 $Million, this will fund our aggressiveexploration very nicely :)

Atan AISC of A$1,190/oz (USD $913) compared to current Gold Prices, asof today, at A$2434 or USD $1868 , I would certainly say that an AISCofA$1,190 with a Gold Price of A$2434is quite remarkable!!

Ifyou would like to learn more about the AISC metric, a good site youmay visit(https://finfeed.com/investor-101/australias-gold-mines-by-production-grades-and-costs-part-1/)

The“additional RC Drilling” as mentioned above recently (See resultsAnn 27 January 2021) intersected high grade gold mineralisationhosted in laminated lode including;

oCBC037 1m @ 12.45 g/t gold from 82m
o CBC038 1m @ 7.95 g/t goldfrom 92m
o CBC033 3m @ 2.30 g/t gold from 85m

Sothis confirms that the high-grade gold mineralisation in historicalgrade control results doescontinue20m into the north pit wall, well actually 22m if my math is correctas our new holes were 82, 85 and 92 M deep while the tick hill openpit is 70M deep.




This is good news!! So let's just now waitfor Rob and the Team to develop options and decide what to with this"Money Mine"

As @gottalove putsit, (If you are new here, he is one of our CNB Thread Legends) "Andthose Tick Hill grades are ridiculous!!! This now puts us in the mostenviable position of negotiation strength, when it comes to any sortof deal".

Remember,“Negotiationsto develop, profit share or sell the Tick Hill open pit project arein progress”.

SoSummary of Tick Hill Open Pit: CNB owns 100% an Open Pit Mine in oneof the highest grade gold deposits in Australia’s recent goldproducing history, which has historicallyproduced 180,000 oz @ 18 grams (18.1 g/t)! Recent Drilling here hasconfirmed the mines viability, and now the Directors of CNB aredeciding how we can most benefit from our open pit mine, I.e, sellit, mine it etc.... Whatever they decide, it means more “Cash inthe Coffers”!!

TickHill Tailing Dam:

ATailings Dam( in which tailings were discharged into during 91-95 production)comprising two paddocks of a “turkeys nest” construction in whicha perimeter embankment with a clay core retains tailings. Wallheights range from 6m to 10.5m. (In plain English, the tailings damwas a place or “earth fill” to store the byproducts of miningoperations 1991-1995 after separating the ore (gold) from the gangue,which is basically commercially worthless materials surrounding thegold). This will be removed at “nocapital costs” under the newsale agreement with BIM Metals Pty Ltd (BIM) (see ASX release 3August 2020). Not only does CNB NOT incur any costs, CNB will receiveabout $6 Million in total from BIM's extraction of the historicaltailings dam stockpiles at Tick Hill (The amendment to the Tick Hillmining lease permit has been approved). So in plain English, CNB isgetting paid $6 million to get rid of our 25 year old completely dryrubbish which still contains some gold, giving us money to mine thepit).

• Tick Hill Stockpile Ore Reserves of 410,900 tonnes at 1.35 g/t for 17,800 ounces SOLD!!

• Stockpiles to be processed at BIM Metals controlled CIL processing plant near Cloncurry.

6,000tonne bulk metallurgical sample pit successfully collected andprocessed (See pics below). Preliminary mill feed sample results andquality control sampling shows positive grade and ouncereconciliation to resource model (23% higher gradethan the resource model). So it looks like both CNB and BIM benefitedfrom this mutually beneficial agreement / sale :)

KeyMilestones to gold production in 2020 (as above)

• Come to commercial terms on a tol treatment agreement with 3^rd party owners of processing facilities & contract miners (Tailing Dams Extraction Agreement with BIM Complete) – How about for the production of Gold from the Open Pit? “We are well down that road to forming that agreement” … Rob.

• Government regulatory amendments (DONE) – See ANN 12 October. “Carnaby Resources Limited (ASX: CNB) (Carnaby or the Company) is pleased to announce that the amendment to the Tick Hill mining lease permit has been approved for the extraction of the historical tailings dam stockpiles”

*SoThat's BIM taking away all of our “rubbish” that we got paid $6Mil for :)

TheCompany’s Managing Director, Rob Watkins commented:

“Itis pleasing that the proceeds from the successful sale of the TickHill Tailings stockpile are flowing in, allowing Carnaby toaggressively pursue exploration and growth opportunities into thefuture”.

Sonow, we have received our First Cash Instalment Tick Hill TailingsStockpile of $1.25 Mil, plus $1.5 Mil Cash receivable as a result ofTick Hill permit approval, and afurther $750,000 to be received on 4 March 2021 due to full-scaleproduction from the Project officially commencing on 19 January 2021.In addition, Carnaby is expected to start receiving proceeds from a5% royalty on the Project’s gold production which is forecast tototal approximately $2,000,000 over the next 18 months.

Thisis very nice pocket money to fund the exploration of our extremelyprospective targets :) - And might I add, not many Junior ExplorationCompanies are this well funded to pursue exploration activities, VERYFEW!! Hence, we have very little need to worry about any futureCapital Raises :)

Highlyprospective Tick Hill North offset target:

TickHill deeps (Tick Hill North)(inwhich we are still awaiting for the majority of results of recentdrilling)- "A single diamond drill hole (566 m) was completed at TickHill deeps (I.e, Tick Hill North Extension) in December 2020.Processing and analysis of the core is continuing with results onlyreceived from a small section of core" – Note, these resultswere of no significance, but we are still awaiting the majority ofthe results!!

• What was drilled?

  • At Tick Hill North (after successfully locking in a 3rd RC / Diamond drill rig to commence diamond drilling targeting the highly prospective Tick Hill North offset target) a single diamond hole was drilled to 566 m targeting approximately 150 m beneath the lodestone horizon intersected in the last exploration hole drilled at Tick Hill at the end of 2019. The new drill hole CBD028, intersected the mine corridor sequence approximately 40 m north of the planned target pierce point. The hole intersected both hangingwall and footwall quartzites separated by altered lodestone equivalent quartz-biotite granofels. The core has been logged and is in process of being cut, sampled, and submitted for analysis (still awaiting majority of results) …

  • As samples were still being prepared as of Ann (14 December, 2020), I would infer from this, that once drill samples from Tick Hill are taken directly to the Mt Isa ALS sample Preparation Facility by Carnaby Staff, we should expect some results early-mid February :) - Maybe sooner (fingers crossed)

Exciting things tocome when we have all of the results... :) Don't forget, this area(Tick Hill North) is in one of the highest-grade and most profitablegold orebodies ever mined in Australia, which produced 511,000 ozGold @ 22.5 g/t gold from surface to only 235 m below surface, ANDthat the last hole we drilled back in 2019 interested a highlyencouraging 10m wide Lodestone unit approximately 250m north of theoffset AND detailed follow-up re-logging of core and 3D geologicalmodellling has confirmed a “compelling” target at Tick Hill North:)

Goodpresentation to watch if you haven't yet : Clickhere .

Summaryof Tick Hill:

CNB has an Open Pit(the mine) which is under consideration for sale or mining (addingfurther strength to our capital position), a tailings dam which wehave sold to BIM for $6 Mil with incomings still to come, andawaiting results (and probably further drilling) at our highlyprospective land at Tick Hill North which was one of thehighest-grade and most profitable gold ore bodies ever mined inAustralia... NICE :)

Oops,how could I? I almost forgot to include our Tick Hill CopperProject:

“We have asignificant series of IOCG Copper rich Deposits that we will developin the future”!! “When copper prices recover”

• Exceptional results from Mount Ernie so “There is no doubt an Open Pit is expected to be developed here and potentially and underground as well” Rob...

• “But the copper is something for the future and we are firm believers that the copper projects will, in the not to distant future, these copper projects will cover”... “We are getting prepared for that” ...

Well,based on the current record prices of copper and one of ourneighbours (HMX) hitting some nicer grades earlier this week, I thinkwe could expect some news about a drill program very soon …PossiblyVERY SOON!!

Ok, so that wasabout Tick Hill (Open Pit, Tailing dams, Tick Hill North and the THCopper Project)...

Now lets look atStrelley:

Pilbara(Maillina Basin) Projects:

CNB'sPilbara Gold projects comprise the Strelley Gold Project and theMount Grant Gold Project (total ground holdings of 254 km2) which arelocated in the highly prospective Mallina Basin of Western Australia,northeast of the Hemi gold discovery of De Grey Mining Ltd (ASX:DEG), which has taken DEG to a MC in excess of 1$ Billion. This isAustralia’s newest major and under explored gold district.

TheStrelley project is located in the northern part of the ArcheanPilbara Craton. The tenement is located within the Mallina basingroup greenstone and intrusives on the district scale Tabba TabbaShear zone which hosts significant gold mineralisationto the SW within De Greys Mining Ltd’s tenure. The recent discoveryof the intrusion related Hemi gold discovery by De Grey Mining Ltdhas generated significant new interest in the Mallina Basin. Withinthe Strelley project late intrusive rocks equivalent in age to theHemi gold discovery are present. Gold mineralisation intersected inthe Strelley project to date is associated with silicification andquartz veining.

Asof Ann 26 October, 2020, Total Ground Holdings in the Pilbara hasincreases by 47% to 394 km2 !! - with the addition oftwo new exploration license applications at Pardoo and Goldsworthybringing our total land holdings to 442 km2 :)

So in the MaillinaBasin, we now have:

1. Strelley Project (100% owned) – First Phase Drilling COMPLETED

2. Mount Grant Gold Project (80%) - Mount Grant is located approximately 20km East of the Company’s Strelley Gold Project and approximately 90 km northeast of the Hemi gold discovery of De Grey Mining Ltd (ASX: DEG).

3. New Padroo License (100%) - (The additional ground secured at Pardoo hosts several discrete magnetic anomalies also considered to be potential “Hemi style” intrusion targets)

4. New Goldsworthy License (100%)

Andthe good news?

“CarnabyResources Limited (ASX: CNB) (Carnaby or the Company) is pleased toannounce the identification of several new“Hemistyle” intrusion targetsfrom two new aeromagnetic surveys completed at the Strelley and MountGrant Projects AND from additional land tenure secured at Pardoo.”(Ann 26 October, 2020).

1. 1. 1. Strelley Project (100% owned by CNB) – (FIRST PASS DRILLING COMPLETE)

• • • The Company has identified the following four prospects at Strelley: Palisade Prospect, Gibraltar Prospect, Stockade Prospect, Conwy Prospect.

    • Recent Placement and SPP proceeds are currently being used to scale up and accelerate Exploration drilling at the Strelley Project where a maiden 8,500 m (400 hole) aircore drilling program commenced in October 2020 with Immediate follow up the aircore drilling with a deeper 3,500 m RC drilling program (Already commenced - Completed) :)

MallinaBasin location map showing location of newly secured tenure:

Astandout target is the Palisade Prospect, where a 7 km longMMI soil gold anomaly is open to the southwest and is coincident witha ~300-500 m wide gold mineralised bottom of hole RAB drillinganomaly.

Aircoredrilling of Palisade has been completed at a nominal 320 m x 80 mspacing. Several other highly prospective targets including Stockade,Gibraltar, Rumeli and Conwy were also tested as part of the firstphase drilling on a nominal 640 m x 80 m spacing (Complete). Anaeromagnetic survey over the Strelley and Mount Grant Projects wasbeing fast tracked and was forecast to commence in October.Since being conducted, it has identified several new “Hemistyle” intrusion targets though these aeromagneticsurveys completed at the Strelley and Mount Grant Projects :)

RecentlyCompleted:

StrelleyProject showing new aeromagnetic survey image highlighting majorstructural corridors along the Tabba Tabba and Berghaus Shear Zonesand location of new intrusion type target. Location of the recentlycommenced 400 hole aircore drilling program is also shown.

Resultsfrom the recently flown high resolution aeromagnetic surveys has alsohighlighted wide zones of alteration along major structural corridorsat the confluence of the Tabba Tabba and Berghaus Shear Zones whichare considered to be prospective for gold mineralisation.

Sowhat did our Mr Rob have to say about all of this?

TheCompany’s Managing Director, Rob Watkins commented:

“Aswe look forward to receiving initial drill results from the recentlycommenced first phase of aircore drilling at Strelley, it isencouraging to have generated a pipeline of new targets from therecently completed aeromagnetic surveys and the additional groundthat has been secured. The Mallina Basin is in its infancyin terms of understanding the wider exploration potential outside ofDe Grey’s Hemi gold discovery. We believe the land package that wehave built up, covering approximately 70 km strike of key regionalstructures within the Mallina Basin is highly prospective andunder-explored.”

Sowhat is the status of our AC / RC drilling at Strelley???

16October, 2020: Commenced AirCore Drilling at Strelley

“CarnabyResources Limited (ASX: CNB) (Carnaby or the Company) is pleased

toannounce the commencement of a 400 hole, 8,500 m aircore drillingprogram at its 100% owned Strelley project in the Mallina Basin,Pilbara of Western Australia”.

Theinitial aircore drilling program will be completed on a nominal 320 x80 m spacing across several priority targets including the Palisadetarget where a 300-500m wide bottom of hole gold anomaly is open inall directions

(320mis the distance between the lines of drilling and 80m is the spacingof individual holes on the drill line).

As@Mustpow kindly provided, please see video :https://youtu.be/sRmKDRjRD74

Thosepiles of dirt in the video are the sample piles from aircoredrilling. Each pile represents one metre drilled. You will see thatmost of the aircore holes are relatively shallow with the exceptionof a few which go deeper than 100m where the ground is softer.

Ashe explained, it looks like very wide spaced aircore drilling. Theyhave changed the orientation of the drilling to better target theregional scale structure. Historically the old drilling didn’t dothat.

This Aircore drilling is on lines that are 300 to 600metres apart and the drill spacing on each line is between 80 and 160metres. Entire open pit mines could be hiding in between the spacesin the drilling.

He goes on to explain: “Any sniffs of goldat all - which would seem inevitable - will need to befollowed up with a bumfull of in-fill drilling.

Note:AC drilling is different to RC drilling... In simple English, theAirCore drilling program (which probably will not produce spectacularresults) is simply a first step or phase aimed to provide us with abetter idea of where to focus our drilling efforts on a morecomprehensive drilling campaign (ie, RC drilling)... As one of ourgreat posters pointed out, “The Aircore drilling is just the pilothole to figure where to concentrate the RC drill bit”.

Thisis why AC drilling is conducted over such a large area with widespacing between each drill target... An entire open pit mine couldbe hiding in the gaps between the drilling, or successive holes couldpotentially lead us to such a great discovery :)

@Alfieknowssays: “Our maiden Air Core drilling program has not evenconcluded. Air Core drilling is used to define a target for furtherinfill drilling with Diamond and RC. It is simply illogical to say'bad drilling results must have leaked'. You don't get 'bad drillingresults' from Air Core. You hit bed rock, you chip a few feet extra(at best) and you define where to look for 'yellow stuff'. The'yellow stuff' is already confirmed to be there through historicalRAB samples, albeit drilled on the wrong azimuth!” :)

Then,on (14 December, 2020) – We receive a very pleasing Announcementregarding the FIRST results :)

Andplease let's not blame Rob and the Team... Although it had taken 8weeks since the commencement of drilling to receive results (16 Oct –14 Dec), we must remember that the Labs were inundated with samplesfrom MANY other companies and they were experiencing a backlog ….

Sonow I will attempt to decipher this Announcement (and please docorrect any misinterpretations) …

Asper Announcement;

Firstpass aircore and RC drilling programs have just beencompleted at Strelley with results pending for a vast majority of thedrilling (Figure 1 below ). At total of 372 aircore holes for 11,167mhave been completed on a nominal 640 m x 80 m spacing. The aircoredrilling was designed to scope out the regional geochemical andgeological footprint, targeting the prospective corridor along theconfluence of the Berghaus and Tabba Tabba Shear Zones and theGibraltar / Stockade mafic hosted sheared corridor (Figure 1). Theaverage depth of holes across the program was 30 m with transportedcover averaging approximately 15m. At this extremely wide holespacing and shallow depth of hole, the aircore drilling program isdesigned to target secondary gold anomalism and define broadgeochemical tends for future follow up infill drilling.

Now,as of January 27 2021, we have received results for this first phaseof drilling:

OurStrelley Project, in the Pilbara of WA:(Note: "“The drilling at Strelley has discovered severalextensive gold mineralised
corridors on very broad spaced andshallow drilling. Follow up drilling will begin in February").

Theaim of the first pass drill programs was to scope out the Tabba Tabbaand Berghaus Shear Zone structural pathways for evidence of broadmineralised trends beneath the shallow sand cover ... Now, we mustremember the whole purpose of this first phase of drilling!!! (i.e,to target secondary gold anomalism and define broad geochemicaltrends for future follow up infill drilling.

In plain English,to drill wide and shallow to figure out where to focus our time andenergy in the second drilling phase (which will commence next month:Feb 2021)... Plain and simple.

Mind you, the first phasedrilling did successfully identified two main corridors of goldmineralisation at Stockade / Gibraltar and at Palisade, both of whichare over 4 km in strike and sparsely drilled

AND...
Widespaced and shallow aircore and RC drilling has identified a greaterthan 1 km long gold mineralised corridor at Stockade whichrequires immediate follow up drilling.The corridor is open to the north from a new aircore result of 2m @2.15 g/t gold from 6m including 1m
@3.85 g/t gold from 7m in PLAC0032.
"Thedrilling at Stockade has clearly identified broad gold mineralisedcorridors over greater than 1 km strike on wide spaced and shallowdrilling and is ahigh priority target for follow up drilling commencing in February2021.

ANDTHEN...
Atthe Palisade prospect shallow and wide spaced aircore drilling hasdefined a 4 km long gold anomaly along the interpreted northeastextension of the Berghaus Shear Zone into the Tabba Tabba Greenstonebelt



"ThePalisade prospect is a highly prospective and high priority targetdiscovered in extremely wide spaced and shallow drilling. Follow updrilling in search of the source of the 4 km long Palisade goldanomaly will form part of a phase two drilling program to commence inFebruary 2021".

Besidesfrom these highly prospective tenements at Strelley as describedabove, we also have allof our tenements yet to be drilled (see below pic) (currently own 442KM2 with the addition of our newly acquired licenses)...

So what about ournew Tenements?

Arewe forgetting that Carnaby has increased its land holdings in theMallina Basin of the Pilbara in Western Australia to 442km2 (from394 km2) (which was also recently increased from 254 km2 to 394 kmswith the acquisition of Padroo and Goldsworth) with the acquisitionof Big Hill? ("The addition of the Big Hill project continues tobuild our strategic land position in the Mallina Basin targeting themajor fault structures webelieve are important controls and hosts of gold mineralisation.”OMG!!

AND our new Padroo and Goldsworthy Licenses!! And don'tforget the identification of several new “Hemistyle”intrusion targetsfromtwo new aeromagnetic surveys completed at not only Strelley, but alsoMount Grant Projects AND from additional land tenure secured atPardoo.”(Ann26 October, 2020).

Soin the Maillina Basin, we now have:

1. Strelley Project (100% owned) – First Phase Drilling COMPLETED

2. Mount Grant Gold Project (80%) -Mount Grant is located approximately 20km East of the Company’s Strelley Gold Project and approximately 90 km northeast of the Hemi gold discovery of De Grey Mining Ltd (ASX: DEG).

3. New Padroo License (100%) - (The additional ground secured at Pardoo hosts several discrete magnetic anomalies also considered to be potential “Hemi style” intrusion targets)

4. New Goldsworthy License (100%)

5. Big Hill (100 %)

Andso much still undrilled … Soooo much potential :)

Inaddition to its Tick Hill and Strelley land holdings (alhtough of notmuch significance at the moment) the Company holds a further972km2 gold prospective exploration package in the YligarnMargin, which contain the Company’s Malmac and Throssel projects.

ThrosselGold Project (100%)

TheThrossel Gold Project covers 162 km2 and is located 70 km northof the 6.2 Moz Gruyere Gold Mine operated by Gold Road Resources Ltd(ASX: GOR). The project area covers a potential 20 km strike ofunexplored greenstone belt under shallow cover.

MalmacGold Project (100%)

TheMalmac Gold Project covers 810 km2 within the northern Yilgarnmargin mobile belt. The tenements are focussed on the Imbinrift associated with the highly mineralised Glenburgh Orogen withhost rocks similar in age and geology to the Karalundi Formation thathost Sandfire Resources Ltd’s (ASX: SFR) Degrussa deposit.

*Resultsfrom first pass reconnaissance field work in late 2020 have beenreceived and are being compiled along with a technical review byBrett Davis. Details of the findings will be released shortly...

Anddon't forget our Mount Grant Project (80% owned byCNB)

MountGrant is located approximately 20km East of the Company’s StrelleyGold Project and approximately 90 km northeast of the Hemi golddiscovery of De Grey Mining Ltd (ASX: DEG).

Andlet's not forget:

“Skinin the Game”:

Nothingsays it better about the future potential of a company than theinvestments of the Management Team in the company's success... CNBManagement could be said to be “Highly Invested” in CNB futuregrowth!! Our Management Team are some of the TOP Shareholders in theTOP 20 list and collectively own a whopping 14% of CNB...

		Ordinary Fully Paid Shares (Not options)
1	Rob Watkins	4,444, 418 (3.78% of CNB)
2	Peter Bowler	5,000,000 (4.25% of CNB)
3	Paul Payne	675,000 (0.57% of CNB)
4	Greg Barrett	4,444,418 (3.78% of CNB)
5		14,563,836 (from total of 33,825,992 in top 20)

PutSIMPLY: They own more shares in CNB than Anybody Else !!, OurManagement +++ have added extra 1.5 Mil (at spp price of 30cents - with their own money!!), and other top 20's have also toppedup ... And our management still the TOP 3 shareholders holding acollective (Watkins / Bowler / Barrett) 13, 888,836 shares in CNB(11.81%) of the company (excluding options etc...) (and excludingPayne) WOW....!! Also excludes ex mngt of BMT, friends of the familyand some of their family members (hush hush) ...
withoptions?

PeterBowler: 5,000,000 shares + 3,000,000 Options (2 mil @ 0.09 + 1mil @ 0.10)

RobWatkins: 4,444,418, shares + 3,000,000 Options (2 mil @ 0.09 + 1mil @ 0.10)

GregBarrett: 4,444, 418 shares + 3,000,000 Options (2 mil @ 0.09 + 1mil @ 0.10)

PaulPayne : 675,000 shares

• The 9,000,000 issued to Peter, Rob and Greg expire April, 2024 (Plenty of time to make them worth Hell of a lot more) :)

Andit looks like we have the new TOP 20 for December 2020 - apologies ifsomebody has posted this before me...

Notes:

1. Braidwood Investments(aka Our Man Peter Bowler - CNB Chairman) since adding 722,248 shares on October 29 (at 30 cents per share) bringinghis total to 5 million shares (4.45% of the company)!!! - (Sharesapproved by shareholders at AGM in Placement)
   
   2. HOOKIPPTY LTD (aka Greg Barrett - CNBNon-Executive Director) also acquired 166,666 shares onOctober 29 (at 30 cents per share) bringing his total to4,444,418 shares (3.77% of the company)!!! - (Shares approved byshareholders at AGM in Placement)
   
   3. Citicorp Nominees (which is an ASX Custodial SettlementParticipant) added 921,264 shares bringing their total to3,541,245. It looks like that this month in December that have added even more shares 118,782. They ("The Big Boys") also topped up inSeptember with 1,011,782 shares. This three consecutive months ofbuying have taken them from 8th position on the Top 20 to 3rdposition, bringing their total from september of 1.51% to 3.11% ...WOWWW... There's a "Big Boy out there (hiding behind the name ofCiticorp) who has effectively doubled hisposition in CNB within a mere 3 months!!!
   
   4. MRMICHAEL JAMES HARGREAVES DUNCAN + MRS LORRAINE BETTY DUNCAN haveadded 469,000 shares brining their total to 2,500,000 or 2.12% of thecompany - Back in June, they only had 1,000,000 ... So theyobviously see some potential by further adding an extra 2.5 x shares - This figure remains the same for December... AKA, They haven't sold a dime
   
   5/6. COSMOHOLDINGS (WA) PTY LTD <THE WATKINS FAMILY A/C> (Our very own,Rob Watkins) also acquired 166,666 shares onOctober 29 (at 30 cents per share) bringing his total to4,444,418 shares (3.77% of the company)!!! - (Shares approved byshareholders at AGM in Placement) - (Note, He should actually beequal 2nd TOP holder in CNB, however, due to having his sharesdivided between two accounts, he now sits in position 5 and 6 withCiticorp and the Duncan's taking his rightful position)
   
   7. B& A WALLACE SUPERANNUATION FUND PTY LTD <B & A WALLACESUPER FUND A/C> - Has sold a measly 100,000 shares bringing histotal down from 1,600,000 (1.50%) down to 1,500,000 (1.27%) ...Same for this December update... He has NOT sold any
   
   8.Ms Karen Heather Lamb - sold 350,000 bringing her total down from1,850,000 to 1,500,000 (originally 2,000,000 in June) - Her position in December has NOT changed ..
   
   9. BNPPARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP> Has since added 193,802 shares bringing their total to 1,081,804shares (0.92%) and have moved from 13th position to 10thposition. In Dec, have added a further 127,618 bring the total to 1,209,422 (1.03%), moving them up from 10th position to 9^th...
   
   10. BIZETRANSPTY LTD <PJ SENIOR SUPER A/C> Has since added 186,926 shares (Nov) bringing their total to 1,165,000 shares (0.99%) and have moved from14th position to 10th position - overtaken by BNP Paribas by one position due to thier adding of shares... Bizetrans has maintained the same amount of shares...
   
   11. Wajaya has moved from 13th place to 11th overtaking Tec-weld and Lone Jet with the addition of 125,000 shares taking his total to 1,073,000 (0.91%)
   
   12. Mr James Blakers + Mr James Scott have moved from 15th position to 12th position with the addition of 176,000 shares bringing thier total from 865,000 to 1,041,000 (from 0.73 to 0.88%)
   
   13. Tec-weld has moved from 12th position to 13th position with no change in holdings - still 1,000,000 shares as declared in a previous post ...
   
   14. Mr Robert Steel Renton : Still in 14th position with no change in holdings (944, 380)
   
   15. Lone Jet (ATF Inwood Family Trust) AKA Neil Inwood (Formerdirector of BMT - Berkut Minerals Limited BMT) has decreased holdings from 1,000,000 to 900,000, taking his position from from 11 to 15, but they still own 0.76 of the company ...
   
   16. JP Morgan - They managed to sneak back into the top 20 again with 0.75% ...
   
   17. Mr William Jansen etc... has added 50,000 from 825,000 to 875,000 during december, bringing their ownership to 0.74% (compared to 0.70% n in Nov)
   
   18. Mr Aurthur Lockwood, falling from 16th position to 18 in December with no change in holdings (others just overtook him) - He still owns 0.71% of the company...
   
   19. Mr Raja ... No change to holdings
   
   20. Mr Andrew John Rice ... Added 100,000 shares bringing his total from 700,000 to 800,000 shares...21... CariKaya ... Added undisclosed holdings, but still not in the Top 20 HAHAHAHA....
   
   
   I am very impressed with this updated Top 20 List!!! Most of our top holders have added over the past month, taking advantage of the market pushing down the price a bit.. And why wouldn't they??? 30's are an absolute bargain compared to where we are heading!!!
   
   Hopefully one day Carikaya will make it into the Top 20

Onefinal note, something that sparked my interest in the most recentQuarterly Ann (29/01/2021) was:

Thisone stuck out to me to... Divestment of the Lainejaur project onlymeans more cash for Carnaby on top of our existing financialstrength.

Managementhave really got their heads screwed on properly and are drivingCarnaby in the right direction by focusing on "aggressiveexploration" of our Australian Tenements …

Onemore final note: CNB Current Financial Position:

CNBCash Position : (updated Jan 2021)

	1,500,000	CASH: As of June30, 2020 (Reference: Ann 12 October, 2020) – Including restricted cash of 400 k
1	1,250,000	First Cash Instalment Tick Hill Tailings Stockpile
2	1,500,000	Cash receivable as a result of Tick Hill permit approval (already approved)
3	2,650,000	Tranche 1 Placement proceeds of $2.65M
4	2,000,000	$2M SPP proceeds
5	500,000	$500,000 cash payment received as part of upfront consideration of Tick Hill Tailings Dam Sale ($3.25M cash received to date). - 750,000 remaining
6	350,000	Tranche 2 Placement proceeds of $350k to Directors - The Tranche 2 Placement was subject to completion of the Tranche 1 Placement and obtaining shareholder approval.
7	9,750,000	TOTAL (Strong consolidated cash position of $9.1M (cash at 31 October 2020 plus the $500,000 cash just received) = 9.6 Mil puts Carnaby in an enviable position to be able to fund ongoing exploration programs and growth opportunities into the future.
8	- ??????	Expenses for recent quarter (I will look into this tomorrow)
9	8300000	Total Cash January 2021
10	2,000,000	Carnaby is expected to start receiving proceeds from a 5% royalty on the Project’s gold production which is forecast to total approximately $2,000,000 over the next 18 months.
11	750,000 remaining	Cash payment 30 days after BIM commences collection of the Tick Hill Stockpiles and conditional upon the grant of the EA Amendment (already granted) : to be received on 4 March 2021 due to full-scale production from the Project officially commencing on 19 January 2021
12	11050000	New Total Once Received
13	15000000	Tick Hill Open pit cutback is forecast to generate net pre-tax cash flows of $18 Mil at an AISC of A$ 1,190/oz.
14	26050000	WOW :) - or should AISC be 18 Mil instead of 15?
15
16

At 31 December 2020,Carnaby held $8,300,000 in cash which includes $400,000 in restrictedcash. Restricted cash comprises cash held in term deposits issued inthe Company’s name which have been used to provide security for theCompany’s bank guarantee facility. During the quarter, thecompletion of the over-subscribed Share Purchase Plan (SPP)1generated proceeds of approximately $2,350,000 which included$350,000 received from director participation in the Tranche 2Placement2 approved by shareholders at the general meeting in October2020. Funds from the sale of the Tick Hill Tailing RetreatmentProject continue to accumulate with payments totalling $2,000,000received during the December quarter with a further $750,000 to bereceived on 4 March 2021 due to full-scale production from theProject officially commencing on 19 January 2021. In addition,Carnaby is expected to start receiving proceeds from a 5% royalty onthe Project’s gold production which is forecast to totalapproximately $2,000,000 over the next 18 months.

And this DOES NOTinclude the potential from:

o Drilling at theTick Hill Project in Queensland, targeting Tick Hill North and NorthPit Wall commenced in early November;

oDevelopment options for the Tick Hill Open Pit; - On 3August 2020, Carnaby announced the sale of the Tick Hill tailingsstockpile for $6M. Aside from the sold stockpiles, Carnaby retains a100% interest in the Tick Hill Project and all remaining MineralResources and Ore Reserves, including the Tick Hill Open Pit. In therecently released Tick Hill PFS, the Tick Hill Open Pit contributedProduction Mill Feed of 63,300 tonnes @ 6.1 g/t for 12,500 ounces. Atcurrent gold prices, the Tick Hill Open Pit cutback is forecast togenerate net pre-tax cash flows of approximately $15 million at anAll In Sustaining Cost (‘AISC’) of A$1,190 per ounce1 .Negotiations to develop, profit share or sell the Tick Hill open pitproject are continuing.

o Explorationdrilling at the Strelley Project (NEXT TO DEG) in the Pilbaraof Western Australia, where a maiden 8,500 m (400 hole) aircoredrilling program was commence in October immediately followed by a3,500 m RC drilling program;

Nordoes it include the possible Divestmentof the Lainejaur project (Sweden Nickel and Colbat) (100% CNB)... WOW:)

That'sall from me tonight, so please fill in any blanks that you see, and Ilook forward t making money with you all in the ASX's mostundervalued and exciting Goldie Stock :)