http://esp.gewru.com/download/files/12414/1283535/Carabella%20logo.gif Press Release 2 December 2010 CARABELLA RESOURCES $12M IPO CLOSES EARLY AND OVERSUBSCRIBED Carabella targets 10 December 2010 listing on ASX HIGHLIGHTS * IPO to raise $12 million closes early and significantly oversubscribed * Strong support from global and domestic institutions * Targeted quotation date on ASX of 10 December 2010 * Highly experienced management team ready to move forward with development of flagship Queensland coking coal Project ? 91.7 million tonnes of JORC coking coal resources identified to date Australian coal exploration and development company Carabella Resources Limited (Carabella or Company) (ASX:CLR) is pleased to announce that its Initial Public Offering (IPO) has closed early following strong support from international and domestic resource focused institutions. The IPO comprised an offer of 30 million shares at an issue price of $0.40 each raising $12 million.

The offer was lead managed by Helmsec Global Capital Limited and was significantly oversubscribed. The Company is targeting an ASX listing date of 10 December 2010. The majority of funds raised through the offer will be used to fund the Companys exploration program over the next two years.

Carabellas primary focus is at the Mabbin Creek coking coal tenement in the Northern Bowen Basin.

Mabbin Creek is located close to existing road, rail and power infrastructure, and is adjacent to a number of world class coking coal mines. Carabella recently completed an initial drilling program at Mabbin Creek. This identified an initial JORC resource of 91.7 million tonnes of coking coal at its Grosvenor West prospect.

Following the IPO, Carabellas main focus will be on the continued development of Grosvenor West. Carabellas Managing Director is Anglo Coal Australias former Head of Operations, Mitch Jakeman.

Prior to joining Anglo Mr Jakeman worked with a number of other major global coal companies including BHP, Shell Coal and Rio Tinto. Carabellas Managing Director, Mr Jakeman said: "Carabella has the right resources located in the right place.

I believe that the Company is ideally positioned to take advantage of a strong global coal market." "Carabella has already uncovered a significant coking coal resource close to existing infrastructure at a time when world demand for coal in general and coking coal in particular, is forecast to grow dramatically over the medium term." "Following completion of the listing, we are looking forward to continuing our exploration program and building value for shareholders." Nick Dacres-Mannings, a director of Helmsec Global Capital Limited was not surprised by the response from the investment community: "The level of interest we have received in response to the offer is a testament to both the quality of Carabellas projects, and the strong outlook for coking coal." "Carabellas close proximity to the Goonyella and Moranbah North coking coal mines and their rail and road infrastructure was seen as very attractive to both institutional and retail investors." ENDS ABOUT CARABELLA RESOURCES LIMITED Carabella Resources Limited holds a number of coal exploration interests in Queensland, covering a total exploration area of approximately 3,600km2 in the Bowen, Mulgildie, Clarence-Moreton and Adavale Basins. The Company recently completed an initial drilling program at its flagship coking coal tenement - Mabbin Creek - located adjacent to the Goonyella/Riverside/Broadmeadow coking coal mine operated by BHP Billiton in the northern Bowen Basin, Queensland.

The program identified a maiden JORC resource of 91.7 million tonnes of coking coal at the Grosvenor West prospect on the eastern border of the tenement.

The Company intends to place immediate priority on the continued development of Grosvenor West, as well as investigating other exploration target areas at Mabbin Creek. To read the full announcement click here
For further information please contact: Michael Addison Chairman Tel: +61 2 993 4475 Web: www.carabellaresources.com.au
David Tasker Professional Public Relations Tel: +61 8 9388 0944 / +61 433 112 936 Email:
This email was sent by David Tasker, Professional Public Relations, 588 Hay Street, SUBIACO WA 6008 to
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