Capella Minerals Ltd (TSXV: CMIL) (OTCQB: CMILF) (FRA: N7D2) ('Capella' or the 'Company') is pleased to provide the following update on exploration activities being undertaken on the Company's 100%-owned copper-zinc-cobalt ('Cu-Zn-Co') projects in the Hessjogruva-Kjoli District, Trondelag Province, central Norway.

The Hessjogruva-Kjoli District consists of the advanced exploration-stage Hessjogruva VMS Project, the former mining / mineral processing centre at Kongensgruve, and the Kjoli VMS Project, with Hessjogruva representing the Company's cornerstone asset in the District.

Hessjogruva Drill Permits Approved

Capella is pleased to advise that it has received the key approvals required for initiating diamond drilling at the Hessjogruva Cu-rich massive sulfide ('VMS') 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 Hessjogruva project, which has essentially remained idle since the completion of 12,035m / 67 holes of historical diamond drilling in the 1970's (see Capella's Canadian National Instrument 43-101 or 'NI 43-101' compliant technical report as filed on SEDAR on September 7, 2022; www.sedar.com).

The Hessjogruva 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 Hessjogruva 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 Hessjogruva, in addition to providing fresh core for metallurgical testwork and baseline data for initial development studies.

Kjoli Scout Drill Program

Capella completed an initial 1,412m / 8 hole diamond drill program at the Kjoli 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/Rorosmenna area (4 holes), the Kjoli East/Rundhaugen area (2 holes), and the 2km-long Kjoli 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 Kjoli Deeps are pending. Locations of completed drill holes and significant intervals returned are indicated below

About Capella Minerals Ltd

Capella is engaged in the acquisition, exploration, and development of quality mineral resource properties in favourable jurisdictions with a focus on European base and battery metals projects.

In Norway, the Company's focus is on: i) the advanced exploration-stage Hessjogruva copper-cobalt project and the adjacent Kongensgruve and Kjoli projects in the northern Roros mining district, Trondelag province, ii) the discovery of satellite high-grade copper-cobalt deposits around the past-producing Lokken copper mine, Trondelag province, and iii) the discovery of new copper-cobalt deposits in the former Vaddas-Birtavarre mining district of northern Norway.

The Company is also exploring the Northern Finland Gold-Copper (NFGC) project in the Central Lapland Greenstone Belt, together with JV partner Cullen Resources Ltd (ASX: CUL). A total of six exploration permit applications are awaiting formal approval at NFGC, including the priority Killero Cu-Au target. In central Finland, the Company's focus is on the discovery of lithium and rare-earth element deposits at both its Perho reservation, in addition to an extensive package of properties in the broader Keliber district through a JV with European Energy Metals Corp (formerly Hilo Mining)(TSXV: FIN).

Capella also retains exposure to exploration success in precious metals projects through its active Canadian Joint Ventures with Prospector Metals Corp. (TSXV: PPP) at Savant (Ontario) and Agnico Eagle Mines Ltd (formerly Yamana Gold Inc.)(TSX/NYSE: AEM) at Domain (Manitoba). The Company also holds a 49% interest in the Sierra Blanca low sulfidation gold-silver project in Santa Cruz, Argentina, which is currently being explored by Austral Gold Ltd (TSXV: AGLD; ASX: AGD).

Cautionary Notes and Forward-looking Statements

This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of Capella, including the timing, completion of and results from the exploration and drill programs described in this release. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by Capella in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.

This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include those described under the heading 'Risks and Uncertainties' in Capella's most recently filed MD&A. Capella does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.

Contact:

Tel: +1.604.314.2662

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