Update re Project Funding

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 confirm that legal agreements are well advanced for Sheffield Resources Limited (ASX: SFX) ("Sheffield") to acquire a 50% interest in the Project in consideration for providing development capital by way of joint venture project equity. Whilst the legal agreements will not be completed in May, Capital Metals expects the transaction to close shortly. A further announcement will be made only when all requisite approvals have been received and legal and regulatory documents have been finalised and signed, or when required by regulatory obligations.

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About Sheffield Resources

Sheffield Resources is listed on the Australian Securities Exchange with a market capitalisation of approximately A$218 million. Sheffield recently commissioned its flagship A$484 million Thunderbird Mineral Sands Project. Thunderbird is a 50/50 joint venture between Sheffield and Yansteel and is one of the largest and highest-grade mineral sands discoveries in the last 30 years. Thunderbird has recently achieved practical completion and made its maiden shipment of product in January 2024.

In February 2023, Sheffield executed a binding agreement with an option to acquire up to 20% of Rio Grande Mineração S/A, which owns and operates the South Atlantic Project in Southeast Brazil.

For more information on Sheffield Resources, visit www.sheffieldresources.com.au.