FOR IMMEDIATE RELEASE

21 December 2023

MSALABS Limited & Capital Limited

("MSALABS" & "Capital")

Nevada Gold Mines ("NGM") Contract Award

MSALABS, a global provider of geochemical laboratory services for the exploration and mining sectors and a majority-owned subsidiary of Capital, is pleased to announce the finalisation of a major new contract.

New Major MSALABS Contract

·      A five-year comprehensive laboratory services contract with NGM in the United States of America (USA): MSALABS will operate a state-of-the-art hybrid laboratory incorporating both Chrysos PhotonAssay^TM technology and traditional fire assay methods as well as full multi-element assaying capabilities.

·      Largest contract award in MSALABS's history: The contract is anticipated to generate ~$140 million over the five-year term, with annual revenues of ~$30 million once fully operational, making it the largest award of new business in the history of MSALABS. Capital expenditure for the project is expected of ~$7 million in 2024.

·      Phased ramp up through 2024:

o  Phase I of the project will commence towards the end of H1 2024 with the commissioning of two Chrysos PhotonAssay^TM units and a capacity of 80,000 samples per month.

o  Phase 2 will commence at the end of 2024 with the third Chrysos PhotonAssay^TM unit along with the full geochemical laboratory bringing capacity to 120,000 samples per month as well as associated multi-element testing.

o  Preparations have begun across suppliers and recruitment with headcount expected to be ~110 employees.

Growing platform in the USA

·      Significant beachhead for MSA into the USA market: This long term contract entrenches MSALABS presence in the Americas, both operationally given the full suite of services across preparation, PhotonAssay, fire assay and multi-element chemistry at a major operation, and also geographically, expanding its footprint in the Americas from its multiple laboratories across Canada and South America.

·      Additional to Capital's drilling contract award at NGM: Capital is also establishing itself in the USA with the recently awarded comprehensive drilling services contract with Nevada Gold Mines (NGM). The contract encompasses a wide array of drilling services including underground reverse circulation and diamond, both surface and underground. The contract has a term of 3 years and will generate approximately $35 million of revenue per annum once fully operational from 2025.

·      Newly appointed CEO - Americas: We are excited to welcome Aaron Austin as Chief Executive Officer - Americas. Aaron has more than 30 years' experience with large multi-national companies, including Orica and BME, across all functions. Aaron will oversee our operations as we undergo expansion into the region and ramp up our new contracts at the Nevada Gold Mines complex.

Commenting on the contract award, Stuart Thomson, MSALABS CEO said:

"We are thrilled to have been awarded this material contract, adding to our existing PhotonAssay contracts with Barrick at Bulyanhulu and Kibali. This contract reflects not only the proven advantages of the innovative PhotonAssay technology but also the trusted capabilities of MSALABS across traditional fire assay and multi-element analysis.

This state-of-the-art hybrid laboratory will be the first of its kind in the USA and, with MSALABS' holistic approach to laboratory design, will help drive productivity improvements to the Nevada Gold Mines complex.

These three new PhotonAssay units mark the start of a broader partnership agreement with Barrick Gold, with trials underway for a possible ten further PhotonAssay units by the end of 2025 across multiple of Barrick's other operations." 

Commenting on the contract award, Peter Stokes, Capital CEO said:

"It is pleasing to be adding a further service to the Nevada Gold mines so soon after being awarded a material drilling contract at the complex. These contracts are large in both scale and duration which allows us to fully establish in the region and provide a platform for further growth. We are pleased to have Aaron as part of the team overseeing the ramp up of these contracts as well as further opportunities in the region."

- ENDS -

For further information, please visit Capital's website www.capdrill.com or contact:

Capital Limited                                                                     [email protected]                      

Peter Stokes, Chief Executive Officer                             

Rick Robson, Chief Financial Officer

Conor Rowley, Corporate Development & Investor Relations 

Tamesis Partners LLP                                                          +44 20 3882 2868

Charlie Bendon

Richard Greenfield

Stifel Nicolaus Europe Limited                                          +44 20 7710 7600

Ashton Clanfield

Callum Stewart

Rory Blundell

Buchanan                                                                               +44 20 7466 5000

Bobby Morse                                                                        [email protected]

George Pope

About Capital Limited

Capital Limited is a leading mining services company providing a complete range of drilling, mining, maintenance and geochemical laboratory solutions to customers within the global minerals industry. The Company's services include: exploration, delineation and production drilling; load and haul services; maintenance; and geochemical analysis. The Group's corporate headquarters are in the United Kingdom and it has established operations in Côte d'Ivoire, Canada, Democratic Republic of Congo, Egypt, Gabon, Guinea, Kenya, Mali, Mauritania, Nigeria, Pakistan, Saudi Arabia, Tanzania and the United States of America.