Subscription to Raise £626,520

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), is pleased to announce it has raised £626,520 (approximately A$1.2 million) through a direct subscription for 14,741,647 new ordinary shares (the "Subscription") at an issue price of 4.25p.

The vast majority of the investment in the Subscription is from an existing Australian shareholder holding over 5% of the Company's current issued share capital, with the balance being provided by one other investor. Both had indicated a desire to inject capital to strengthen the Company's position, thereby enabling an acceleration of mine construction planning activities, while progressing positively towards the creation of a Joint Venture with LB Group to unlock the funding for the total capital expenditure for the Project.

Priority Project workstreams include hiring additional people and consultants, accelerating the process to obtain additional Industrial Mining Licences, and pre-mining resource definition work.

The Subscription has been conducted directly between the Company and the two investors, falling within the share capital authorities granted at the last Annual General Meeting.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the 14,741,647 shares (the "Subscription Shares") to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8.00 a.m. on or around 12 December 2023.

Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 293,988,245 with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company's share capital pursuant to (i) the Company's Articles, (ii) the Financial Conduct Authority's Disclosure Guidance and Transparency Rules and/or (iii) the AIM Rules for Companies issued by the London Stock Exchange plc as amended from time to time.

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