Capitan Announces Consolidation of 2.5km Silver Trend at Cruz De Plata Project, Durango Mexico

Vancouver, British Columbia - Capitan Mining Inc. (TSXV: CAPT) ('Capitan' or the 'Company') is pleased to announce that it has executed an option agreement with Minera Fresnillo S. A. de C. V. (a wholly owned subsidiary of Fresnillo plc), to acquire a 100% interest for the mineral rights to a key property at the Cruz de Plata Project.

Highlights:

Acquisition of key property between known silver zones at Jesus Maria and San Rafael allows Capitan to consolidate and grow the Cruz de Plata Silver Project

High-Grade Silver trend on Capitan's 100% owned property now grows to +2.5km

Newly acquired property brings additional data, surface showings and high priority targets

6 holes pending assay from Capitan's 2021-2022 drill campaign with results expected before year end

Capitan is currently completing an RC drill program which includes multiple targets at Cruz de Plata

Capitan mining is well funded for 2023 - Recently closed financing totaling C$3.2M in November. See Press Release November 2, 2022

Discussion

The new property blocks comprise a strategic, 261.42-hectare area that allows for the creation of a contiguous property package from the Capitan Hill / Jesus Maria targets to the San Rafael target, at the Cruz de Plata project (see Figure 1).

Additionally, these new concessions provide additional exploration targets related to and including:

The on-strike extension of the Jesus Maria and JM North targets to the east and northeast

The San Rafael and El Tubo targets to the west and southwest

The El Refugio and Santa Teresa Veins

With this addition, the Cruz de Plata high-grade silver trend now covers a total strike length of approximately 2.5Km from JM South - recently identified underneath the Capitan gold zone - to the San Rafael zone.

The new blocks also contain significant surface exploration work, historic workings, and approximately 2,000 meters of historic drilling in five (5) diamond drill holes. These drillholes returned significant silver mineralization along the El Refugio target and at depth, which is interpreted to be the potential on-strike extension of the Jesus Maria Vein (see historic drillhole section below).

Terms of the Option agreement are as follows:

1. 3-year Exploration agreement with option to acquire 100% interest in the Casco U, Exp.2/5-0386 block

2. Total payable amount of USD$1.0M over the three-year period.

3. 1% NSR which can be bought for a total of USD$1.0M up to 10 years from acquiring 100% of the rights

4. No exploration expenditure commitment other than that needed to keep property in good standing

Alberto Orozco, CEO of Capitan Mining stated: 'Consolidating the high-grade silver trend at Cruz de Plata has been one of our top priorities for Capitan Mining. We are pleased and very excited to announce that we have established a dominant land position in what we strongly believe will one day be recognized as a significant high-grade silver system in Durango, Mexico. In addition, this key property acquisition also brings additional data and targets that will allow us to demonstrate to market the potential scale at the Cruz de Plata silver system.'

Historic Data: Casco U Block

Fresnillo has provided Capitan Mining with a database consisting of surface sampling, mapping, and approximately 2,000m of diamond core drilling which targeted the El Refugio Zone. The El Refugio zone consists of a series of historic, underground mine workings that extend over approximately 200m, which targeted high-grade silver mineralization. Diamond drilling carried out by Fresnillo between 2018 and 2020, returned encouraging results which successfully tested the El Refugio zone at depth, tracing it down to approximately 400m below surface.

Highlights from the historic drill program include:

5.2m of 298.48 g/t Ageq in hole JEMA-01

29m of 95.39 g/t Ageq including 1.3m of 572.48 g/t Ageq in hole JEMA-02

6.3m of 118.74 g/t Ageq from hole JEMA-03

11.9m of 66.6 g/t Ageq including 1.2m of 321.1 g/t Ageq from hole JEMA-05

All relevant QAQC, drill logs and assay data/certificates has been provided to Capitan mining, have been verified, and are presented in the table below.

About Capitan Mining Inc.:

Capitan Mining is a well-funded junior exploration company focused on its 100% owned gold and silver Cruz de Plata Project in Durango, Mexico. The company is led by a management team that has successfully advanced and developed several heap leach operations in Mexico over the past 16 years. More information for the Company can be found at www.capitanmining.com.

Contact:

Alberto Orozco

CEO

Capitan Mining Inc.

E: [e-mail]

T: [phone]

Fax: [phone]

Web: www.capitanmining.com

Raffi Elmajian

Corporate Communications

Capitan Mining Inc.

E: [e-mail]

T: [phone]

Web: www.capitanmining.com

Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward-looking terminology (e.g., 'expect',' estimates', 'intends', 'anticipates', 'believes', 'plans'). Such information involves known and unknown risks-including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Capitan in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

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