Capital Metals : Corporate Presentation 2022

COUNTDOWN TO PRODUCTION

High Grade Mineral Sands Project

S R I L A N K A | Q 4 2 0 2 2

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This presentation (the "Presentation") has been prepared by Capital Metals Plc ("CMET" or the "Company").

This presentation contains general and background information about CMET's activities current as at the date of the presentation, and (i) does not purport to be completed; and (ii) should not be considered to be comprehensive or to comprise all the information that an investor should consider when making an investment decision. The information is provided in summary form, has not been independently verified, and should not be considered to be comprehensive or complete. The Company is not responsible for providing updated information and assumes no responsibility to do so.

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relied on in connection with, any contract or commitment or investment decision. Some or all of the information contained in these slides and the Presentation (and any other information which may be provided) may be inside information relating to the securities of the Company within the meaning of the Criminal Justice Act 1993 and the Market Abuse Regulation (EU/596/2014) (MAR). Recipients of this information shall not disclose any of this information to another person or use this information or any other information to deal, or to recommend or induce another person to deal in the securities of CMET (or attempt to do so). Recipients of this information shall ensure that they comply or any person to whom they disclose any of this information complies with this paragraph and also with MAR. The term "deal" is to be construed in accordance with the Criminal Justice Act 1993 and with MAR. This Presentation does not constitute an offer to sell, or a solicitation to buy securities in any jurisdiction in which such offer or solicitation is unlawful. In particular, this Presentation is not, subject to certain exceptions, for distribution in or into the United States, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan. The Company's shares have not been and will not be registered under the United States Securities Act of 1933, as amended, nor under the securities legislation of any state of the United States or any province or territory of Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or in any country, territory or possession where to do so may contravene local securities laws or regulations. Accordingly, CMET's shares are not, subject to certain exceptions, to be offered or sold directly or indirectly in or into the United States, Canada, Australia, the Republic of South Africa, the Republic of Ireland or Japan or to any national, citizen or resident of the United States, Canada, Australia, the Republic of South Africa or Japan.

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OPPORTUNITY OVERVIEW

Near Term Production

• Early cash flow - 12 months after construction starts
• Conservative staged development

Low Capex | High Returns

• $37.3m capex to self-funding against total development capex of $81m
• Interest from off-takers to fund capex
• NPV8 $155-235m
• Significant demand for mineral sands and high prices (lack of new projects)
• Additional upside with <10% of project drilled to only 3m from surface ending in mineralisation

Among Highest Grades Globally

• 17Mt JORC resource at 17.6% Total Heavy Minerals
• Potential for volume and grade increase
• Project grades in highest quartile globally

High Re-Rate Potential

• Market cap at 5p represents ~90% discount to project NPV8 before upside potential, and with capex being targeted through offtake/debt finance
• High re-rate potential

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PROJECT OVERVIEW

108km2project area	17.2MtResource
Size of current	Initial JORC

17.6% Total Heavy 75% Valuable Heavy Minerals

Minerals (THM)

90%32km Distance to newly

THM recoveriesconstructed Oluvil Port

Expect to further enhance project economics, and expand mine life and throughput

• Less than 10% of project drilled
• Current resource only 3m from surface - mineralisation open at depth
• Average grade from 2021 auger drilling of 19.37% THM (compared to existing JORC resource grade of 17.6%) - anticipated to uplift average grade of resource
• Material resource extensions also anticipated from identified dune mineralisation
• Drilling programme planned targeting resource extension laterally and at depth

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EXCEPTIONAL ECONOMICS

H I G H M A R G I N , S H O R T P A Y B A C K .

Base case uses long term price assumptions below current prices. Expect to further enhance economics and expand 10-year mine life and throughput.

Revenues (over 10 years)		Operating Cashflows (over 10 years)		Net Profit (over 10 years)
US $645m		US $391m		US $262m
NPV8 (post tax)		IRR (post tax)		Payback Period
US $155m		56%		3.7 Years
				Mine Life
CAPEX (to positive cashflow)
	Average Production (valuable heavy minerals)
US $37.3m		163 ktpa		10 Years

Development Study and Preliminary Economic Assessment (May 2022) undertaken by IHC Mining, a leading independent global mining services group with specialist expertise in developing mineral sands	5
projects