Appendix 3B New issue announcement

Appendix 3B

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

New issue announcement,

application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 01/07/96 Origin: Appendix 5 Amended 01/07/98, 01/09/99, 01/07/00, 30/09/01, 11/03/02, 01/01/03, 24/10/05, 01/08/12

Name of entity

CARNARVON PETROLEUM LIMITED

ABN

60 002 688 851

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of +securities issued or to
be issued Ordinary fully paid shares

2 Number of +securities issued or to be issued (if known) or maximum number which may be issued
5,000 ordinary shares

3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid
+securities, the amount outstanding
and due dates for payment; if
+convertible securities, the conversion price and dates for conversion)
Ordinary shares fully paid ranking equally with ordinary shares fully paid on issue

+ See chapter 19 for defined terms.

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4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities?
If the additional securities do not rank equally, please state:
 the date from which they do
 the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
 the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment
Yes

5 Issue price or consideration $0.10 exercise price per option
6 Purpose of the issue
(If issued as consideration for the acquisition of assets, clearly identify those assets)
Exercise of optionsO

6a Is the entity an +eligible entity that No has obtained security holder approval under rule 7.1A?
If Yes, complete sections 6b - 6h in relation to the +securities the subject of this Appendix 3B, and comply with section 6i
6b The date the security holder resolution under rule 7.1A was passed
6c Number of +securities issued without security holder approval under rule 7.1
6d Number of +securities issued with security holder approval under rule
7.1A

N/A

N/A
N/A

+ See chapter 19 for defined terms.

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6e Number of +securities issued with security holder approval under rule
7.3, or another specific security holder approval (specify date of meeting)
N/A

6f Number of securities issued under an exception in rule 7.2
5,000

6g If securities issued under rule
7.1A, was issue price at least 75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. Include the source of the VWAP calculation.
N/A

6h If securities were issued under rule
7.1A for non-cash consideration, state date on which valuation of consideration was released to ASX Market Announcements
N/A
6i Calculate the entity's remaining issue capacity under rule 7.1 and rule 7.1A - complete Annexure 1 and release to ASX Market Announcements
7 Dates of entering +securities into uncertificated holdings or despatch of certificates

N/A

06 March 2015
8 Number and +class of all
+securities quoted on ASX (including the securities in section
2 if applicable)
9 Number and +class of all
+securities not quoted on ASX (including the securities in section
2 if applicable)

10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)
N/A

+ See chapter 19 for defined terms.

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Part 2 - DELETED - NOT APPLICABLE Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities
(tick one)
(a) Securities described in Part 1
(b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee

incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders

36 If the +securities are +equity securities, a distribution schedule of the additional

+securities setting out the number of holders in the categories

1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
37 A copy of any trust deed for the additional +securities

Quotation agreement

1 +Quotation of our additional +securities is in ASX's absolute discretion. ASX may quote the +securities on any conditions it decides.

2 We warrant the following to ASX.

 The issue of the +securities to be quoted complies with the law and is not for an illegal purpose.

 There is no reason why those +securities should not be granted +quotation.

+ See chapter 19 for defined terms.

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 An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

 Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no-one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted.

 If we are a trust, we warrant that no person has the right to return the

+securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted.

3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before +quotation of the +securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 06 March 2015 (Company Secretary)

Print name: Thomson Naude

== == == == ==

+ See chapter 19 for defined terms.

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Appendix 3B - Annexure 1

Calculation of placement capacity under rule 7.1 and rule 7.1A for

+eligible entities

Introduced 01/08/12

NOT APPLICABLE

+ See chapter 19 for defined terms.

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