Capricorn Metals Ltd. announced that a total of 22,205 metres of drilling (215 holes) was conducted across the MGGP (including sterilisation drilling) since the last update taking totalled drilled for the 12 months to 31 December to 138,246 metres (957 holes). Resource Infill and Extensional RC Drilling: In January 2022 two RC rigs commenced drilling a planned 81,000 metre drill programme across the 8 kilometres of strike of current resources at the Company's 100% owned Mt Gibson Gold Project (MGGP). Following encouraging results received from this initial planned drilling, the programme was extended in September 2022 to approximately 121,000 metres.

The objectives of this programme included: Infill drilling of the resource to broadly bring the drill density to 25 x 25 metres; Test gaps between resource pit optimisation shells along the 8 kilometres of strike; and Test for extensions of gold mineralisation below the current resource shells. In November 2022, the Company announced an updated Mineral Resource Estimate (MRE) based on the results of the drilling to date. The MRE increased by 32% from 2,083,000 ounces to 2,755,000 ounces.

The RC drill programme over the majority of the mine trend was completed in the December 2022 quarter with 5,783 metres drilled since the last update, taking the total of RC drilling to date to 115,139 metres (727 holes). The current drilling continues to support previously reported drilling at the depth extremities of the 2022 resource optimisation shell as well as below the reported shells providing encouragement for future extensions to the resource. Drilling across the project to date indicates that mineralisation remains open down dip and along strike to the north and south with multiple stacked lodes interesected.

Pleasingly, as reported in the last update drilling along the Saratoga trend, Lexington Waste dump and Orion North trend, which are unmined structures on the eastern edge of the main Mt Gibson trend, continue to define multiple parallel zones of high grade within and extending below the 2022 MRE shell. Based on the encouraging results received to date, further drill planning has commenced with a view to continue testing extensional targets with drilling programmes in 2023. Results of this additional drilling will contribute to an updated MRE targeted for completion in June 2023.

First Pass Exploration and Sterilisation Drilling East of the Mine Trend: Wide spaced exploration RC drilling has been completed for 16,422 metres directly east of the main mine trend where untested north striking and greenstone rocks have been identified in the recent drone magnetic geophysical surveys (targets reported in previous exploration update). Encouragingly areas have been indentified with broad zones of strong sulphide occurences (pyrite) and magnetite alteration intersected. This structural and geological setting is considered analogous to mineralised zones within the MGGP.

approximately 50% of assays have been received with significant first pass 4 metre composite results including: 8 metres @ 4.70g/t from 84 to 92m; 4 metres @ 2.73g/t from 32 to 36m; 4 metres @ 2.80g/t from 84 to 92m. RC drilling in the east also included sterilisation drilling covering areas where major mining infrastructure is planned to be located. Regional Exploration: Approval from DMIRS for submitted programme of work applications were received in the December 2022 quarter for regional Aircore drilling within the McDonalds/Highway Area.

Drilling commenced in early January 2023 on a 30,000 metre first pass regional exploration AC drill programme targeting historical gold working areas. The Highway/McDonalds area is located 5km north of the current MRE and has been identified as a significant exploration target. The area has a prospective geological and structural setting with much of the area covered by up to 20 metres of transported cover.

The area represents a unique opportunity to discover economic deposits at surface with under explored gold occurrences identified including significant historical workings at Gold Bar, Gibson and Leakes Find prospects located within the Capricorn tenure. Field inspections have confirmed mineralisation is associated with north-south striking quartz veining within amphibolite hosted shear zones, a similar orientation and geological setting to the nearby Mt Gibson Mine Trend. Minimal historical rock chip sampling identified mineralisation up to 10.30g/t taken from quartz veining at the Gold Bar prospect.

Follow up Capricorn sampling within the project area has returned multiple +1g/t samples and up to 12.32 g/t from workings along strike to the north of the main Mt Gibson mine trend. The current drill programme is targeting these historic workings. Karlawinda: Exploration activities during the period focussed on near mine drilling at Muirfield, Carnoustie and the newly identified Vedas prospects all located within 5 kilometres of the Bibra open pit.

Regional exploration programmes also continued across the Forfar and Jamie Well prospects.