Second Phase Funding for Calingiri

FOR IMMEDIATE RELEASE: 25 SEPTEMBER, 2014

Caravel Minerals Limited ("Caravel" or the "Company") (ASX: CVV) is pleased to announce that it has signed a Convertible Loan Agreement ("CLA") with its cornerstone investor, FQM, a subsidiary of the Canadian listed First Quantum Minerals Limited (TSX: FM) to provide $600,000 of interim funding to enable it to continue to advance its flagship Calingiri Copper-Molybdenum Project in WA.
FQM, which has a 12.5% stake, is a highly regarded global resources group operating seven mines and developing five projects worldwide. FQM currently produce copper, nickel, gold, zinc and platinum group metals across Australia, Africa and Europe. In addition, they are developing projects in Zambia, Peru and Panama, which once completed, will increase their annual copper production capacity to more than 1.3 million tonnes per annum. FQM's recent market capitalisation is more than A$12 billion.
Caravel Chief Executive Marcel Hilmer said that the proceeds of the convertible loan would be used to underpin ongoing exploration and evaluation of the Calingiri Project. "The provision of these funds through a CLA enables us to continue to progress the project with an emphasis on the highly prospective Ninan and Bindi East tenements," he said
The principal commercial terms of the CLA are as follows:

 Amount: A$600,000

 Interest: Bank prime rate plus 3% per annum payable quarterly

 Maturity: 1 year from date of closing, or as extended by mutual agreement between both parties

 Repayment and conversion options: Unless Caravel chooses to repay the Loan in cash prior to maturity, First Quantum will choose at or before maturity, to convert all or a part of the loan into shares.

Conversion of the entire loan at the minimum price of $0.017 per share would lead to the issue of 35.3m shares to FQM increasing its holding in Caravel to 17%. The loan under this agreement is subject to a number of conditions including FIRB approval and registering a mining mortgage.

Marcel Hilmer, CEO Nicholas Read / Paul Armstrong

Caravel Minerals Limited Read Corporate

Telephone: 08 9426 6400 Telephone: 08 93881474

Caravel Minerals is a gold, copper and base metals exploration and resource development company with projects located in Queensland and Western Australia. Caravel has a technically strong and well established exploration and mine development team.

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