The Capricorn Board is pleased to announce that the more than 104,000 metres of RC drilling completed and assayed at the wholly owned MGGP since January 2022 has delivered a substantial increase in the MRE from 2,083,000 ounces to 2,755,000 ounces

Highlights of the resource update include:

JORC 2012 compliant MRE 104.9 million tonnes at 0.8 g/t for 2,755,000 ounces.

Provides a very strong basis for maiden ORE targeted for later in the quarter:

Over 76% (2,106,000 ounces) of the MRE is now in the Indicated category.

Drill density within the Indicated resource averages 25 x 25 metres.

Shallow depths of the resource suggest ongoing drilling will continue to present opportunities to increase resources (and convert Inferred resources) within open-pittable depths:

Average vertical depth of MRE optimisation shell over the 8 kilometres of resource strike is only 160 metres (max 280 metres).

The Indicated-Inferred boundary surface has an average depth of 150 metres.

Confirms compelling value proposition of the acquisition of the MGGP in July 2021:

Drilling to date has delivered the 2.1 million ounces of Indicated resources at a cost of less than $8 per ounce.

Acquisition ($39.6 million) and resource drilling costs since acquisition of approximately $17 per resource ounce.

Capricorn's drilling has validated the extensive (approx. 660,000 metre) historical database, matching the historical drilling for location and tenor of intercepts.

HIGHLIGHTS

Mt Gibson Gold Project (MGGP) Mineral Resource Estimate (MRE) increases by 32% to 2,755,000 ounces from 2,083,000 ounces.

Updated MRE includes 2,106,000 ounces in the Indicated category, providing a very strong basis for the maiden Ore Reserve Estimate targeted for later in the current quarter.

Average vertical depth of MRE shell is only 160 metres, presenting continued opportunity to increase resources and convert Inferred with further drilling over 8km of resource strike.

Strong results continue to be received from ongoing drilling with assays received after the cut off date for MRE, including 6m at 12.77g/t from 234m & 10m at 5.28g/t from 226m, both also outside the current resource shell. These results will be included in the next resource update.

Capricorn total MRE increases to 5.05Moz, with Ore Reserve Estimate (ORE) of 1.34Moz:

KGP: MRE 2.29Moz (Indicated - 1.95Moz), ORE 1.34Moz*

MGGP: MRE 2.76Moz (Indicated - 2.11Moz), maiden ORE targeted later in quarter

Capricorn Executive Chairman Mark Clark commented: 'The increase in the Mt Gibson gold resource to 2.8 million ounces is a fantastic validation of the quality of the project we acquired just over a year ago. With 2.1 million ounces well drilled and in Indicated category we have a really strong base from which to estimate a maiden reserve and move towards development of Capricorn's second gold mining operation in Western Australia. The shallow average depth of the resource also gives us confidence that the project will continue to grow with further drilling.'

This announcement has been authorised for release by the Capricorn Metals Ltd board. For further information, please contact: Mr Kim Massey Chief Executive Officer E: enquiries@capmet.com.au T: +61 8 9212 4600

Forward Looking Statements

This announcement may contain certain 'forward-looking statements' which may not have been based solely on historical facts, but rather may be based on the Company's current expectations about future events and results. Where the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined throughout this announcement and all material assumptions are disclosed. However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's Annual Reports, as well as the Company's other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any 'forward looking statement' to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Mr. William Higgins who is a full-time employee of the Company. Mr. Higgins is a current Member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Higgins consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information in this report that relates to the Mt Gibson Gold Project Mineral Resources is based on information compiled by Mr. Jarrad Price who is a full-time employee of the Company. Mr. Jarrad Price is a current Member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Price consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information relating to the Karlawinda Gold Project Ore Reserves and Karlawinda Gold Project Mineral Resources reported in this announcement were announced in the Company's ASX announcement dated 27 October 2022. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcement dated 27 October 2022 and all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continues to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not materially changed from previous market announcements.

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