5 October 2021 

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.

Capital Metals plc

("CMET" or the "Company")

Drilling Programme at Southern License Commences

Capital Metals plc (AIM:CMET), a natural resources company focused on the development of the Eastern Minerals Project in Sri Lanka ("the Project"), one of the highest-grade mineral sands' projects globally, is pleased to announce that the auger drilling programme at its southern exploration license EL199 has commenced.

The Company has engaged the Geological Survey and Mines Bureau ("GSMB") in Sri Lanka to undertake the drilling program. The drilling program is a combination of infill and resource extensions and aims to confirm previous drill work and test with extension and step out drilling. This will assist the Company to delineate the key areas for any mining license applications over EL199 and build out our resource estimate. Drilling is permitted under exploration licenses and the Company is planning to drill 500 auger holes which will take approximately 3 weeks.

Richard Stockwell, our newly appointed Technical Manager, is overseeing the drill campaign and ensuring strict Quality Assurance protocols are adhered to. An older dune sequence, which appears to contain a high-value mineral assemblage, has been identified by Richard and will be tested during the current drilling program.

Recent strict lock down protocols in Sri Lanka including the freedom of movement of people have now come to an end. Furthermore, the Sri Lankan Government has announced the resumption of state services including Public Services, Provincial Councils and Local Government, which has enabled the GSMB to travel to the Project site to begin the drilling campaign. Indeed, Sri Lanka is no longer on the UK government's red list in the latest adjustments to the UK Foreign Office's "traffic light" system.

Michael Frayne, CEO, commented:

"It is great to finally see our consultant team back at the Project site area in order to begin our auger drilling campaign. Less than 10% of the Project has been drilled to date and one of our key tasks is to build out the resources estimate from our current resource of 17.2 Mt at 17.6% Total Heavy Minerals.

This drilling campaign will assist the Company in order to start planning for mining license application(s) over our southern license area.

We are encouraged that Sri Lankan strict COVID-19 protocols are now being relaxed and government departments are returning to work and trust this results in the timely approval of the Environmental Impact Assessment."

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