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24 August 2023

Capital Metals plc

("Capital Metals" or the "Company")

Offtake MoU Extended

Agreement with world's No. 1 manufacturer of high-performance titanium dioxide pigments to fund the Eastern Minerals Project into production

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 announce that the Company has agreed an extension until 31 December 2023 of its Memorandum of Understanding ("MoU") with LB Group (002601:SHENZHEN; Market Cap: US$5.7 billion), the world's leading manufacturer of high-performance titanium dioxide pigments and sponge, to fund the Project into production.

The key terms of the MoU remain as announced on 9 May 2023.

Greg Martyr, Executive Chairman, commented:

"We continue to have a constructive relationship with our prospective future partner in the Project which is reflected in their renewed commitment and our mutual desire to extend the MoU while we work to have the suspension of our mining licences lifted. Sri Lanka will benefit enormously from the involvement of the world's leading titanium dioxide pigment manufacturer in the Project through value addition in-country, knowledge transfer and significant export income generation. We look forward to getting the Project back on track and to concluding this offtake agreement with LB Group."

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

About Capital Metals

Capital Metals plc is a British company listed on the AIM segment of the London Stock Exchange and one of only a few foreign investors in Sri Lanka's mining industry. After investing US$11 million in exploration and development activities including detailed environmental assessments between 2017 and 2022, the Company's Sri Lankan subsidiary, Damsila Exports (Pvt) Limited, was issued an initial two licences in August 2022 to mine heavy mineral sands in the Eastern Province, containing industrial minerals including ilmenite, rutile, zircon, and garnet. 

About LB Group

LB Group is the world's No. 1 manufacturer of high-performance titanium dioxide (TiO2) pigments. The group has an annual production capacity of 1.5 million tonnes of titanium dioxide pigment and 50,000 tonnes of titanium sponge.  In addition, LB Group has a number of its existing mining operations supplying ilmenite, rutile and zircon minerals and is the largest consumer of ilmenite globally.

LB Group has over 30 years of TiO2 pigment manufacturing experience and supplies a wide range of TiO2 pigments for all major applications using the sulfate process and the chloride process. LB Group's high performance TiO2 products are key ingredients used to produce a wide range of products worldwide including paints, plastics, inks, and paper, including its BILLIONS™ TiO2 pigment brands which are established worldwide.