Capella Minerals Ltd. announced the following update on exploration activities being undertaken on the Company´s 100%-owned copper-zinc-cobalt (Cu-Zn-Co) projects in the Hessjøgruva-Kjøli District, Trøndelag Province, central Norway. The Hessjøgruva-Kjøli District consists of the advanced exploration-stage Hessjøgruva VMS Project, the former mining /mineral processing centre at Kongensgruve, and the Kjøli VMS Project, with Hessjøgruva representing the Company´s cornerstone asset in the District. Capella is pleased to advise that it has received the key approvals required for initiating diamond drilling at the Hessjøgruva Cu-rich massive sulfide Project on or after July 1, 2023.

The issuance of the drill permits is a reflection of the strong community support that the Company has received for advancing the Hessjøgruva project, which has essentially remained idle since the completion of 12,035m /67 holes of historical diamond drilling in the 1970´s. The Hessjøgruva permitting was based on the completion of a minimum of 3,000m /6 holes of both infill and step-out drilling on the high-grade Hessjøgruva Lens A deposit one of three main copper mineralized lenses on the property. The upcoming drill program has been designed to assist the Company with its goal of completing a maiden NI 43-101 compliant Mineral Resource Estimate for Hessjøgruva, in addition to providing fresh core for metallurgical testwork and baseline data for initial development studies. Capella completed an initial 1,412m /8 hole diamond drill program at the Kjøli Cu-Zn-Co VMS project The eight scout holes were targeted on combined geological and geophysical (electromagnetic and gravimetric) anomalies - considered favourable for the discovery of massive sulfide-type mineralization - in the Guldalsgruva/Rørosmenna area (4 holes), the Kjøli East/Rundhaugen area (2 holes), and the 2km-long Kjøli Deeps target (2 holes, although KJ-008 is a redrill of hole KJ-001 which missed the target due to excessive deviation).

Copper and zinc assays have now been received for drill holes KJ-001 to KJ-007; assays for drill hole KJ-008 (the redrill of KJ-001) at Kjøli Deeps are pending. Locations of completed drill holes and significant intervals returned are indicated below.