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18 December 2025

Capital Metals PLC

("Capital Metals" or the "Company")

Unaudited Interim Results for the Six-Month Period Ended 30 September 2025

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at its high-grade Taprobane Minerals Project in Sri Lanka (the "Project"), announces its unaudited interim results for the six-month period ended 30 September 2025 (the "Half-Year").

Half-Year Highlights:

·    Completed Phase 1 Aircore drilling at depth resulting in approximately a 15x increase in Mineral Resource Estimate tonnes in Initial Mining Area

·    Significant progress towards project development in key areas:

o  Substantial engineering/studies progress towards Final Investment Decision ("FID")

o  Positive ongoing discussions regarding two key pending approvals

o  Project funding advancing

o  Building community support

o  Growing team in Sri Lanka

o  Improved project economics resulting in improved NPV

·    Secured $4 million strategic investment with significant new Sri Lankan partner and signed a Memorandum of Understanding ("MoU") for Project funding

o  Raised approximately $1 million in additional funding from existing shareholder participation

o  Prominent Sri Lankan directors joined the Board: cricket legend and business magnate, Aravinda De Silva, and leading Investment Specialist and Ambeon Capital PLC ("Ambeon Capital") Director, Savanth Sebastian

Greg Martyr, Executive Chairman of Capital Metals, commented:

"From the exceptional results of the Phase 1 Aircore drilling programme and the subsequent Mineral Resource Estimate upgrade, to the advancement of engineering, regulatory, and commercial workstreams, we have continued to improve the foundations for Project development. Strategic investments from Ambeon Capital, alongside support from existing shareholders, have ensured the Company is well funded to complete the approvals and planning required to take FID to enable the commencement of construction in Q1 next year.

With a strengthened Board, including prominent Sri Lankans, growing local engagement, and an expanding social licence to operate, Capital Metals is firmly positioned to deliver a long-life, high-grade mineral sands operation that will create meaningful value for shareholders, local communities, and 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$150m in direct government royalties and taxes to be paid.

Visit our website:

www.capitalmetals.com

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X: @MetalsCapital

LinkedIn: @Capital Metals plc

CHAIRMAN'S STATEMENT

Introduction

I am pleased to present the unaudited half year report for the six-month period ended 30 September 2025. The Half-Year has been one of sustained progress as we advanced the Taprobane Minerals Project through a series of important technical, commercial, and operational milestones.

The Company's drilling programme has continued to demonstrate exceptional grades and expanding mineralisation, culminating in a major upgrade, as announced on 17 November 2025, to the Mineral Resource Estimate ("MRE") for the Initial Mining Area ("IMA"). This has reinforced the Project's scale and extended its longevity.

In parallel, we have advanced engineering, design, and regulatory work required for development, improved Project economics, and strengthened our position in Sri Lanka as we move towards construction.

A strategic investment secured in the period from one of Sri Lanka's leading diversified conglomerates, together with investment support from existing shareholders, ensures the Company is adequately funded through and beyond FID.

Review of Activity

Drilling & MRE Upgrade

The Company was actively drilling during the Half-Year, completing Phase 1 Aircore drilling at depth in June 2025 with 170 reverse circulation holes drilled for 1,501 metres, in the proposed IMA. This resulted in a new discovery with confirmation of high-grade mineralisation at depth and outside the pre-existing MRE. 

Assays were returned from the laboratory from July through September 2025, confirming consistently high heavy mineral grades and a more than threefold increase in the surface area of the mineralisation in the IMA alone compared to the pre-existing resource. This marked a step change for the Project as the Company advances towards development. The discovery of multiple high-grade palaeo-shorelines at depth further strengthens the long-term potential of the Project.

Whereas the 2016 MRE in the IMA covered 47 hectares, the aircore drilling assay results from the 2025 programme indicate the mineralisation extends substantially to the west and at depth and now extends across an area around 3.2 times larger at 152 hectares. Analysis of this work led to the announcement on 17 November 2025 of a major upgrade, with Stage 1 drilling delivering nearly a 15 times increase in MRE tonnes in the proposed IMA (using a bottom cut of 2% Heavy Minerals ("HM")).

Maintaining a 5% HM bottom cut delivers a 4.8 times increase in MRE tonnes in the IMA, from 897kt to 4.3Mt at an average resource grade of 10.5% HM. Applying a 2% HM bottom cut, however, delivers a 14.6 times increase in MRE tonnes from 897kt to 13.1Mt at an average resource grade of 5.5% HM.

The mineralisation typically commences from surface to a maximum of 15 metres depth with an average total depth of 7.9 metres. The MRE is predominately classified at an indicated level, which is suitable for calculation of Probable Mining Reserves for operational planning and product scheduling purposes.

This is a considerable resource increase, which exponentially exceeds the Company's assumed upgrade for the Initial Mining Area when the Company updated the Project's financial model and NPV, as announced on 18 September 2025. The Company now looks forward to continuing the deeper drilling across the balance of the Project where hopefully this trend will continue to deliver similar multiples of resource increase. The implications of a similar increase across the whole resource make this a potentially multi-generational project.

Ongoing technical evaluations are required to determine the optimal pit sizes and processing strategy, but it is clear that this will open up flexible mining options, including a combination of high-grade surface mining and significantly lower cost dredging for the deeper and wider deposits, subject to local approvals.

These results clearly justify the ongoing drilling programme, which is expected to significantly increase the total Project resource and to facilitate a better understanding of the Company's mining and processing alternatives, which will add to our overall valuation for what will clearly be a long life mine with a grade that is expected to remain among the highest in the world.

Progress Towards Project Development

The Company intends to be cash flow generative by early 2027. This requires all studies to be complete and Project approvals and funding in place in order to commence construction in Q1 2026 - with FID being taken any time prior. Key areas of progress include:

- Technical

·    Completion of Process Flow Diagram for the Wet Concentrator Plant ("WCP")

·   Establishment of WCP process design criteria for low (150 tph), base (175 tph) and high (200 tph) throughput scenarios to accommodate variable feed grades as mining progresses

·    Completion of 3D model and general arrangement drawings for WCP

·    Completion of mechanical equipment list and electrical load demand for WCP

·    Completion of logistics study for road haulage and export (via Colombo Port)

·    Completion of hydrogeology study

·    Assessment of heavy mobile equipment requirements

Mineral Technologies has provided a fixed lump sum price for the fabrication and supply of key Stage 1 equipment, including the pre-designed Flex-Series WCP, feed hopper and screening unit. The flowsheet remains a simple three-stage spiral plant with a feed hopper, vibrating screen, and ancillary equipment.

- Advancing Two Main Approvals

The Company continues to await parliamentary endorsement of a new National Minerals Policy, understood to be imminent. We expect its publication will send a strong signal that Sri Lanka is 'Open for Business' for mining. Certainly, we have been encouraged by recent moves in Sri Lanka to transfer the management of the Geological Survey and Mines Bureau from the Ministry of Environment to the Ministry of Industry, with associated positive public statements indicative of a progressive attitude to the sector from the Minister of Industry. Subsequent to the announcement of the National Minerals Policy, guidelines on the specific value addition requirements in the mineral sands sector are anticipated, and we have been very active in seeking to educate all stakeholders on a practical staged approach. Capital Metals is also seeking an additional Industrial Mining Licence ("IML") focussed on the proposed IMA and adjacent to the two existing approved IMLs.

- Funding Plans

Discussions with banks and other investors to provide project debt and equity financing began in the Half-Year and are ongoing. The Company is also engaged in active discussions with preferred potential offtakers, with a focus on those that may also provide project equity or working capital funding.

Several constructive meetings were held last month at the key global mineral sands conference in Kuala Lumpur. The recognised high quality of the Project's mineral products has attracted broad market interest, and counterparties have expressed positive interest in long-term supply arrangements.

- Building Trust Through Action in Local Communities

Among the most important areas of progress in the Half-Year has been the strengthening of relationships with host communities in Sri Lanka's Eastern Province. Recent initiatives include sponsorship of local schools and A-Level education programmes, spiritual events, fishing societies, sporting associations, as well as the installation of community suggestion boxes to encourage open dialogue and support for environmental activities such as coastal beach clean-ups.

During the period, Capital Metals, in association with the Urani Super Warriors Sports Club, sponsored a local cricket tournament branded the "Capital Metals Cricket Cup", with over 40 teams from around the eastern province coming together in an incredible display of talent and sportsmanship. The Company's Non-Executive Director and a Sri Lankan cricket hero, Aravinda De Silva, presented awards during the closing ceremony.  

As part of the board's site visit, members donated a fishing boat to a local fishing society, a gesture that will directly benefit more than 50 families. The Company has also helped women's groups and small-scale agricultural projects to support local livelihoods. These activities reflect the Company's commitment to delivering sustainable, long-term benefits for local stakeholders alongside the advancement of the Taprobane Minerals Project.

Mineral sands mining is not well known in the Project area. This presents challenges in terms of awareness and understanding of the Company's proposed activities. The Company has been actively and successfully prioritising education and awareness programmes, both locally within the Project area and more broadly across the country, recognising that education is key to building long-term understanding and support. The Company's Sri Lankan Facebook account, launched during the Half-Year, has quickly amassed over a thousand followers and is a key channel for communication.

The Company is also in the process of establishing the first of a series of Coastal Regeneration Centres, focussed on the preferred native plants and regeneration practices required for rehabilitation over the life of the Project, while also providing a platform for students and the wider public to learn more about the Company's environmental practices.

- In-Country Team Expansion and Capacity Building

Key local appointments during the Half-Year include a Financial Controller, Mining Engineer, Project Manager and Processing Specialist, with recruitment ongoing for a Manager of Environment to lead the development of the operational Environmental Management Plan and detailed rehabilitation plans in coordination with the mine engineering team.

The team is also developing a heavy equipment training programme to upskill local employees and build long-term operational capacity.

- Updated Financial Model and Increase in NPV

A key piece of work in the Half-Year was the development of a new financial model including:

·    Reduced Stage 1 capex of $20.9 million, as announced on 18 September 2025

·    Refinement of heavy equipment requirements using a first-principles approach

·    Detailed build-up of mining and processing operating costs

·    Updated logistics costs following completion of logistics studies

·    Resource increase to reflect indications from recent drilling results, with base and upside case resources modelled at 1.33x and 1.67x the existing MRE respectively

·    Updated increased corporate tax and royalty assumptions

This resulted in materially improved Project economics, with the MRE upgrade assumptions being subsequently exceeded when the MRE for the IMA was published after the Half-Year end on 18 September 2025.

·    the base case NPV₈ (post tax) has increased to $180 million compared to $155 million;

·    the upside case NPV₈ (post tax) has increased to $289 million compared to $235 million;

·    the base case IRR (post tax) has increased to 73% compared to 56%;

·    the upside case IRR (post tax) has increased to 98% compared to 73%; and

·    the updated NPV₈ per share of 27p and 44p for base and upside cases, respectively.

- Premium Garnet Quality Confirmed by Independent Testing

The results of a garnet product quality study announced in the Half-Year confirmed that the garnet is of a superior quality than previously thought and will therefore attract a higher price in the industrial abrasive market. The Company is in discussions with global garnet distributors regarding potential offtake agreements.

Financial Matters

On 29 May 2025, the Company announced a landmark strategic investment of $2 million into the Company by way of a share subscription by Ambeon Capital, together with an option for Ambeon Capital or its nominees to invest up to a further $2 million. By September 2025, the option was fully exercised by Ambeon Capital's nominees, bringing in $4 million in total from this strategic investment. This was supplemented by approximately a further $1 million from existing shareholder participation. These funding events are expected to see the Company comfortably funded through FID and beyond.

Ambeon Capital is a Colombo Stock Exchange listed diversified conglomerate and part of one of Sri Lanka's most successful investment organisations. Ambeon Capital had been looking to enter Sri Lanka's mineral sands sector and has now become the Company's largest shareholder, owning c.12.15% of the Company. Given its connections in Sri Lanka, Ambeon Capital is already assisting in improving the speed and flow of information and communication with national stakeholders.

Ambeon Capital and Capital Metals also signed a non-binding MoU for an agreed path to fund the Project at FID to commence construction, through arranging the provision of $20 million in equity/debt at the Project level, with such amount anticipated to be sufficient to complete Stage 1 development at which point the Project is expected to become self-funding.

The Company made a loss before income tax for the Half-Year of $1,069,078 compared to $446,781 in the corresponding period last year. The loss for the year increased primarily due to the significant accounting charge from the issuance of Silver Pine Pacific Limited share options in September 2025, together with higher expenses driven by increased Company activity levels, such as travel expenses and equity fundraising initiatives. These activities include the continuation of the drilling programme, advanced engineering, design and regulatory work for development, and strengthened presence in Sri Lanka ahead of construction. As at 30 September 2025, the Company had $4,781,609 in cash and cash equivalents (31 March 2025: $1,351,494).

Board Appointments

In August 2025, I had the honour to welcome two respected Sri Lankan business leaders to the Board of Capital Metals, Aravinda De Silva and Savanth Sebastian.

Aravinda De Silva is an ICC Cricket Hall of Fame inductee and national sporting icon who played a crucial part in Sri Lanka's 1996 World Cup-winning team. He is making a significant positive impact in Sri Lanka as a businessman and investor, and he is already playing a key role in the development of the Taprobane Minerals Project.

Savanth Sebastian is a leading business figure in Sri Lanka with considerable industry knowledge and expertise. He currently serves as a Director of Ambeon Capital, helping to shape its financial and investment strategies. He was a Director at Nations Trust Bank PLC of Sri Lanka and serves on the board of Sri Lanka's largest IT company.

Aravinda and Savanth played key roles in cementing Ambeon Capital's strategic investment in Capital Metals. The Company is working hard with Aravinda, Savanth and the Ambeon Capital team, with whom the Company now shares an office in Colombo, on many fronts to develop the Project that will create sustainable value for Sri Lanka in the form of jobs, skills, revenue, education, and training.

Outlook

The Half-Year has been marked by substantial progress across all aspects of the Taprobane Minerals Project. From the exceptional results of the Phase 1 Aircore drilling programme at depth and the subsequent Mineral Resource Estimate upgrade to the advancement of engineering, regulatory, and commercial workstreams, the Company has continued to improve the foundations for Project development. Strategic investments from Ambeon Capital, alongside support from existing shareholders, have ensured the Company is well funded to complete the approvals and planning required to commence construction. 

The Company now looks forward to continuing the deeper Aircore drilling across the balance of the Project where hopefully the trend seen in Phase 1 will continue to deliver similar multiples of resource increases. The implications of a similar increase across the whole resource make this a potentially multi-generational project. There remains a lot of work to do to determine the optimal pit sizes and how the resource will be processed, but it is clear that this will open up flexible mining options, including a combination of high-grade surface mining and significantly lower cost dredging for the deeper and wider deposits, subject to local approvals.

With a strengthened Board, including prominent Sri Lankans, growing local engagement, and an expanding social licence to operate, Capital Metals is firmly positioned to deliver a long-life, high-grade mineral sands operation that will create meaningful value for shareholders, local communities, and Sri Lanka. On behalf of the Board, I extend my sincere thanks to our employees, advisers, partners, and other stakeholders for their ongoing support in advancing this world-class asset.

Greg Martyr

Executive Chairman

18 December 2025

CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CAPITAL METALS PLC - CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The notes form an integral part of the Condensed Consolidated Interim Financial Statements.

The Condensed Consolidated Financial Statements were approved and authorised by the Board of Directors on 18 December 2025:   

…………………………….

Greg Martyr

Executive Chairman