Update re Offtake MoU

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Eastern Minerals Project in Sri Lanka (the "Project"), provides the following update on discussions to fund the Project into production.

Discussions with LB Group (002601:SHENZHEN; Market Cap: US$5.8 billion), the world's leading manufacturer of high-performance titanium dioxide pigments and sponge, are continuing on a non-exclusive basis following the Board of Capital Metals' determination that it would not seek to renew exclusivity beyond 31 December 2023. This decision was made in light of additional interest received to fund the Project into production following the positive developments in the second half of 2023 leading to the full reinstatement of the Industrial Mining Licences ("IMLs") announced on 1 December 2023.

Greg Martyr, Executive Chairman, commented:

"While we continue to work with LB Group to progress the Memorandum of Understanding announced on 9 May 2023 to a definitive agreement, the Company's opportunity set has broadened, and we determined it was in the best interest of all stakeholders to be free to pursue additional options and funding structures in parallel with the negotiations with LB Group to deliver the Project in a timely manner and maximise value."

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