Capella Minerals Ltd. announced that it has entered in to a binding letter agreement with elementX Finland Oy for the acquisition of a 100% interest in a portfolio of seven lithium pegmatite and rare-earth element reservations in southern Finland. The elementX projects are predominantly focused on LCT pegmatite complexes located within the Järvi-Pohjanmaa and Seinäjoki lithium-permissive tracts as defined by the Geological Survey of Finland. The southernmost Kaldo reservation also hosts four known uranium occurrences, including the former Käldö mine which is reported by the GTK to have ceased operations in 1959.

The acquisition of the elementX projects will significantly enhance Capella's existing portfolio of lithium-REE (Perho) and copper-gold (Katajavaara-Aakenus) projects in Finland, in addition to its portfolio of high-grade copper-cobalt-zinc projects in Norway. Accordingly, the Company will be extremely well placed to participate in the global electrification and decarbonization process. Key terms of the agreement: Capella will acquire 100% interests in two fully granted reservations (Kovela and Kaldo; covering 1,692 sq.

km in total) and 5 reservation applications (Rakokivenmaki, Nabba, Lappajarvi East and West, and Kaatiala, covering 2,325 sq. km in total) in southern Finland. All projects are located in districts with known LCT pegmatite and/or REE occurrences, yet have been subject to little modern systematic exploration.

In consideration for the acquisition, Capella will issue elementX's shareholders a total of 15.1M Capella common shares representing approximately 10% of the Company's current outstanding shares and before completion of proposed financing as outlined below. The Transaction Shares will be subject to a minimum 4 month hold period as per TSX.V Exchange regulations, in addition to a further voluntary 3 month hold period. In addition, elementX will retain a 1% Net Smelter Royalty ("NSR") on any potential future metal production from the acquired portfolio.

In parallel, the Norwegian government is also strongly supporting the construction of the country's first lithium-ion battery plant in the northern city of Mo I Rana. This battery plant, which is currently expected to enter in to operation in 2025, is part of a broader governmental strategy to take advantage of the abundance of low-cost renewable (hydroelectric) energy in-country and become a major contributor to future global lithium battery production.