Capella Minerals Limited provide the following update on exploration and drill targeting activities at the Company's 100%-owned Løkken copper-cobalt-zinc massive sulfide ("VMS") project in Trøndelag province, central Norway. Recent exploration activities have been focused on the 5 priority satellite targets that surround the former Løkken copper mine, with particular emphasis being placed on the 5km-long corridor that extends eastwards from the old Løkken mine through the adjacent Høydal occurrence and the drill-ready Åmot target. High-grade copper mineralization at the former Løkken mine is hosted by a sequence of Ordovician-age metabasalts (mixed pillow and massive basalts) within an overturned ophiolite sequence.

The main prospective horizon for VMS-style mineralization is interpreted to extend eastward from the former Løkken mine through the old Høydal open-pit (from which small-scale copper-zinc mining was reportedly undertaken until 1911) and to the Åmot target. At Høydal, Capella completed a systematic ground magnetic survey and a soil geochemical ("IL") grid designed to identify potential extensions to the known mineralization at Høydal. A detailed review of historical drilling1,2 around the old Høydal open-pit, which appears to have been focused on approximately 750m strike length of an interpreted VMS feeder zone, is also in progress.