Capella Minerals Ltd. provided the following update on its maiden scout core drill program at the Company's 100%-owned Kjøli copper-cobalt-zinc massive sulfide ("VMS") project in Trøndelag province, central Norway. Six holes for 1,080m of drilling have been completed to date on targets along the Kjøli Mine trend (Kjøli Mine and Guldalsgruva sectors) and at Kjøli Deeps (a coincident electromagnetic and gravity anomaly underlying the former Kjøli copper mine). Remobilized, semi-massive copper-rich (chalcopyrite-pyrrhotite) mineralization has been locally intersected in drilling along the Kjøli Mine trend, especially around Guldalsgruva.

However, the first hole at Kjøli Deeps (KJ-001) experienced significant downhole deviation and failed to intersect the target. A subsequent downhole electromagnetic ("EM") survey has confirmed the existence of an off-hole EM conductor in the vicinity of KJ-001 and this target is expected to be redrilled shortly. A scout diamond drill program of approximately 1,250m was initiated at the Kjøli copper-zinc-cobalt project in late-January.

The Kjøli project is located approximately 20km NE of the Company's advanced-exploration stage Hessjøgruva project.