Capital Metals plc provides the following updates on Project development activities. Following a period of constructive engagement with the Geological Survey and Mines Bureau ("GSMB"), further to the reinstatement of the two granted Industrial Mining Licences ("IMLs") in December 2023, the Company has now received a formal letter confirming the GSMB's intention to process the Company's seven outstanding IML applications, which is expected to facilitate the granting of further IMLs to underpin the mine plan for the resource in the entire 47km2 EL168 licence area. The Company is also in advanced discussions with the Coast Conservation Department ("CCD") to obtain a permit to mine covering all the CCD managed land in the EL168 area.

The CCD has already granted a permit to mine in the two granted IML areas. The additional permit will provide flexibility to expand mining activities as soon as the GSMB grants IMLs pursuant to the outstanding IML applications. The GSMB has also provided a "No Objection" letter to the Company's application to have a Board of Investment ("BOI") registered company controlling its Project interests in Sri Lanka.

Approval by the BOI is anticipated in the very near future and will enhance the Company's investment in Damsila Exports (Pvt) Limited, the Sri Lankan subsidiary holding the EL168 exploration licences, initial IMLs and applications, by providing protections against nationalisation under the Constitution of Sri Lanka as well as additional fiscal incentives. Drilling Update: Final preparations are underway to commence both Aircore and Sonic rig drilling programmes in April 2024. Drilling will provide resource infill and confirmation in the Initial Mining Area, which was the focus of the Preliminary Economic Assessment undertaken by IHC Mining in 2022.

Drilling and subsequent assay and geo-metallurgical assessment is designed to increase resource confidence and allow the calculation of a Proven Reserve to underpin a minimum of the first 12 months of operation. Drilling will also include exploration at depth and westward to discover additional, buried shorelines where they exist and where dune mineralisation has previously been identified. Accordingly, a substantial resource increase is anticipated from this initial work programme, which is expected to subsequently motivate further resource confirmation and exploration activity.