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.

6 December 2023

Capital Metals PLC

("Capital Metals" or the "Company")

Subscription to Raise £626,520 to Accelerate Mine Construction Planning

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 it has raised £626,520 (approximately A$1.2 million) through a direct subscription for 14,741,647 new ordinary shares (the "Subscription") at an issue price of 4.25p.

The vast majority of the investment in the Subscription is from an existing Australian shareholder holding over 5% of the Company's current issued share capital, with the balance being provided by one other investor. Both had indicated a desire to inject capital to strengthen the Company's position, thereby enabling an acceleration of mine construction planning activities, while progressing positively towards the creation of a Joint Venture with LB Group to unlock the funding for the total capital expenditure for the Project.

Priority Project workstreams include hiring additional people and consultants, accelerating the process to obtain additional Industrial Mining Licences, and pre-mining resource definition work.

The Subscription has been conducted directly between the Company and the two investors, falling within the share capital authorities granted at the last Annual General Meeting.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the 14,741,647 shares (the "Subscription Shares") to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8.00 a.m. on or around 12 December 2023.

The Subscription Shares will be issued fully paid and will rank pari passu in all respects with the Company's existing Ordinary Shares.

Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 293,988,245 with voting rights. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company's share capital pursuant to (i) the Company's Articles, (ii) the Financial Conduct Authority's Disclosure Guidance and Transparency Rules and/or (iii) the AIM Rules for Companies issued by the London Stock Exchange plc as amended from time to time.

For further information, please contact:

About Capital Metals

Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Eastern 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$130m in direct government royalties and taxes to be paid.

Visit our website:

www.capitalmetals.com

Follow us on social media:

Twitter: @MetalsCapital

LinkedIn: @Capital Metals plc

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.