CMET Capital Metals Plc

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

14 February 2025

Capital Metals PLC

("Capital Metals" or the "Company")

Project Update

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at the high-grade Taprobane Minerals Project* (renamed) in Sri Lanka (the "Project"), is pleased to announce that the Geological Survey and Mines Bureau ("GSMB") has signed an agreement pursuant to which the GSMB will provide technical services in connection with the forthcoming resampling and drilling programme. The Company is finalising the last renewal of land access permissions, with the air core drilling rig and team on standby.

The drilling programme aims to increase the Project's resource, and inform ongoing design, engineering and mine planning work, whilst obtaining greater geological confidence in the proposed mining areas. The drilling programme was delayed due to Sri Lanka's elections which resulted in widespread ministerial and senior personnel changes across all departments. The Company does not currently expect any impact to its target of reaching a Final Investment Decision ("FID") in Q2 2025 in order to commence construction, with an expected 9-12-month construction period until first production.

Greg Martyr, Executive Chairman of Capital Metals, commented:

"We appreciate our shareholders have been eagerly awaiting updates on drilling. The election of a new government created personnel changes at many levels. We have been working positively and co-operatively with all our new stakeholders as they have come into their new roles. We wanted to have the GSMB actively involved in the drilling programme, and I am pleased we now have their agreement in hand to facilitate their participation with a view to commencing as soon as the final land access approval has been refreshed.

I am currently in Sri Lanka with our COO, Stuart Forrester. The team, supported by our technical consultants, are making good progress on key workstreams required to reach FID, including plant design and logistics. I'm impressed with our field office staff and the rapport they are building with the local community. On the financing side, we continue to advance dialogue with offtakers, vendor financiers, and potential Sri Lankan project partners to finance the Project in a way that minimises or eliminates the requirement to raise market equity." 

*Project Renaming

The Taprobane Minerals Project is the new name for the Eastern Minerals Project, chosen for its positive historical significance and community resonance as the ancient Greek name for Sri Lanka.

For further information, please visit www.capitalmetals.com or contact:

About Capital Metals

Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Taprobane Minerals Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade mineral sands projects globally, with potential for further grade and resource expansion. In 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$130m in direct government royalties and taxes to be paid.

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www.capitalmetals.com

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