Placing to Raise £625,000

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), announces a placing to raise gross proceeds of £625,000 through a placing (the "Placing") of 14,705,882 new ordinary shares of 0.2p each (the "Placing Shares") at a price of 4.25p (the "Placing Price") arranged by Tavira Financial Limited (the "Broker").

Following the announcement of a Subscription on 6 December 2023, the Company was approached by existing shareholders in the UK who wished to further support the Company and maintain their holdings. The Board concluded that this Placing, together with the Subscription, places the Company on a materially stronger footing whilst it seeks to conclude an offtake financing agreement to fund the total Project capital expenditure. As with the Subscription funding, the Placing funds will provide the Company with the ability to accelerate its plans for commencement of construction. These additional funds will also permit exploration drilling in conjunction with resource definition drilling to expand the mineral resources by stepping out and drilling at depth, as well as enabling the Company to conclude negotiations with some key landowners to facilitate additional mining licences being granted, underpinning years of mine planning.

The Placing has been conducted within the share capital authorities granted at the last Annual General Meeting in September 2023.

Issue of Broker Warrants ands Fee Shares

735,294 broker warrants will be issued to the Broker pursuant to their engagement terms. The Warrants will be exercisable at the Placing Price for a period of 3 years from the date of Admission. 737,082 new ordinary shares of 0.2p each will be issued at 4.25p per share to satisfy commissions payable pursuant to the Subscription announced on 6 December 2023 (the "Fee Shares").

Admission and Total Voting Rights

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

The Placing Shares and Fee Shares will be issued fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares.

Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 309,431,209 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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