Company Announcements

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

2 March 2026

Capital Metals PLC

("Capital Metals" or the "Company")

Project Updates

&

Notice of Investor Webinar

Significant Progress Towards Project Development

Capital Metals (AIM: CMET), a mineral sands company approaching mine development stage at its high-grade Taprobane Minerals Project in Sri Lanka (the "Project"), is pleased to provide the following Project updates.

Highlights

·     Engineering Studies Towards Stage 1 FID Largely Complete:

o Fixed construction plant and services lump sum price negotiated with Mineral Technologies.

o Access Engineering study completed covering plant construction and site civil works.

o Site access study completed with preferred option selected.

o Hydrogeology study completed for the Initial Mining Area ("IMA").

o Mine planning work underway on the expansion of the IMA following successful drilling.

·     Further Material Reduction in CAPEX:  The ongoing process of cost refinement has resulted in a decrease in Stage 1 CAPEX from $20.9m to $17.7m.

·     Building Community Support: Proactive and focussed community educational and support initiatives continue to strengthen the Company's social licence to operate.

·     Coastal Regeneration Centres: Plans have been finalised for the first of several nurseries along the Project strike length, with construction and operational activities underway on the first site.

·     Growing Sri Lanka Team: The in-country team has expanded with the addition of key finance, compliance and environmental leadership roles.

·     EL199 Environmental Impact Assessment ("EIA"): in addition to the already approved EIA and the 2 Industrial Mining Licenses ("IML") in the northern EL168 area, a technical meeting has been scheduled with key approving agencies following submission of the EIA for the southern exploration licence (EL199).   

·     Mineral Separation Plant ("MSP") Studies: Mineral Technologies engaged to undertake a concept study for the potential acceleration of the MSP stage, with land access processes having commenced.

·     National Minerals Policy: As announced, Sri Lanka's cabinet has approved the first new minerals policy since 1999 to streamline the regulatory framework, which is expected to accelerate final Project approvals for FID, including the granting of one additional mining licence and the clarification of what product can be exported.

·     Project Funding Advancing: Ongoing discussions for debt as well as expressions of interest from strategic industry investors and offtakers, being run in parallel with final government approvals.

Engineering Studies Towards Stage 1 FID Largely Complete

The Company is pleased to advise that it has negotiated a fixed lump sum proposal from Mineral Technologies for the engineering, procurement and supply of key plant and equipment, including the Flex Series spiral plant. The Company has also received completed engineering design, cost estimates, and project schedules from Access Engineering. These workstreams provide increased certainty on capital costs and materially de-risks the project, contributing to a further reduction in CAPEX.  A diagram showing the Wet Concentrator Plant Layout is shown in the appendix below (Figure 2) and is available on the Presentations page of the Company's website.

The International Center for Sustainable Built Environment Pvt Ltd ("ICB") was engaged to study site access options. Following completion of this study, and assessment against key technical, environmental and commercial criteria, a preferred access route has been selected. The Company has entered into the next stage of service agreements with ICB to support the Company in obtaining the relevant approvals.

The hydrogeology study has been completed, with this work supporting a lower impact and lower cost water management strategy. The study also supports proposals for mining below the water table.  

Further Material Reduction in CAPEX

Following completion of the engineering studies outlined above, the Company has received detailed design, equipment specification and vendor pricing inputs which have enabled a refinement of the capital cost estimate and a reduction in line-item contingencies. The transition from preliminary study assumptions to more defined engineering parameters has materially improved cost accuracy across key workstreams, including processing plant design, materials handling and associated infrastructure.

Importantly, the fixed lump sum proposal from Mineral Technologies provides a high degree of cost certainty in respect of the major plant and equipment components of the investment, materially de-risking one of the most significant elements of Project CAPEX.

As a result of this increased engineering definition and commercial clarity, the estimated initial CAPEX has reduced to US$17.7 million from US$20.9 million, representing a meaningful improvement in overall project capital intensity.

Building Community Support

The Company continues to foster strong relationships with local communities in Sri Lanka's Eastern Province.  Mineral sands, and mining more broadly, are not established industries in Sri Lanka, particularly in the vicinity of the Project area. This presents challenges in awareness and understanding of the Company's proposed activities which the Company has been proactively addressing with a growing site team of 13 members, recently enhanced by the appointment of a locally based Environment Specialist, fluent in English and Tamil, to lead structured education and community awareness programmes.

Facebook has been identified as a key platform for community communication and education. The Capital Metals Lanka Facebook page continues to perform strongly averaging over 400,000 viewers per month, with a growing follower base and consistently high engagement.

Feedback from the local community, government officials and political representatives has been increasingly positive, reinforcing the Company's view that the vast majority of the community is supportive of the Project. During the Board's recent visit to the Project area, two significant CSR initiatives were undertaken.  The first was the highly successful Capital Metals Cricket Cup, with over 40 teams from across the Project area participating. Our director and Sri Lankan cricket legend, Aravinda de Silva, joined fellow Directors for the final day matches and awards ceremony. In addition, the Board participated in the donation of a fishing boat to a local fishing society supporting approximately 120 families. Further community initiatives have included the donation of books and dry rations to two primary schools in recognition of National Children's Day. These activities reflect Capital Metals' commitment to delivering sustainable, long-term benefits for local stakeholders alongside the advancement of the Project.

Coastal Regeneration Centres

The Company has finalised plans for the first Coastal Regeneration Centre ("CRC"), which will be one of several nurseries designed to support progressive rehabilitation, environmental management and community engagement activities associated with the Project. Construction is now underway, with initial operational activities commencing in parallel. The CRCs will serve as a practical demonstration of the Company's commitment to responsible mining and sustainable coastal management, while also providing local jobs and a platform for stakeholder education and training.

The CRCs will function as dedicated nurseries and holding facilities for translocated plants, rescued species and propagated native seedlings required for restoration. Baseline ecological surveys will be undertaken before mining to document vegetation and identify species suitable for translocation. Selected plants will be carefully removed with intact root balls and relocated to the CRCs, while topsoil (including the soil seed bank) and organic matter will be separately stored for later reuse. The CRCs will include greenhouse facilities, irrigation systems, composting areas, plant storage and trained staff to propagate creepers, herbaceous cover and woody species needed to stabilise restored dunes and rebuild soil quality.

Over time, the CRCs will provide an opportunity not only to restore but to measurably enhance the extraction area by improving soil structure, increasing native biodiversity and strengthening long-term coastal resilience. The CRCs will use modern expertise, technology and processes gained from the Australian mineral sands industry.

Figure 1: Coastal Regeneration Centre Layout Drawing (also available on the Presentations page of the Company's website at: https://capitalmetals.com/our-investor-relations/presentations/)  

Growing Sri Lanka Team

The Company is pleased to announce the appointment of three key personnel to further strengthen its in-country capability in Sri Lanka.

Kishan Kumara has been appointed as Financial Controller of the Company's Sri Lanka subsidiary, bringing strong financial management and governance experience to support the Company's transition toward development and operations. Kishan is a Chartered Accountant in Sri Lanka and the UK (CIMA) and has an MBA from the University of Sri Jayewardenepura.

Silojah Sivapathan has joined as Environment Specialist. A native Tamil speaker from the Eastern Province, also fluent in English and Sinhala, Silojah has a Master's of Environmental Science & Engineering degree with 8 years' experience in delivering sustainability initiatives across major infrastructure and development projects. Silojah will play a key role in environmental management planning, regulatory compliance, and the delivery of structured community education and awareness programmes.

Both Kishan and Silojah have joined the in-country leadership team.

Amasha Gunarathna has been appointed as Regulatory & Government Relations Executive, supporting stakeholder engagement and coordination with relevant government authorities as the Company advances through the approvals process.  Amasha is an Honours Graduate Geoscientist with expertise in regulatory affairs and government coordination, with experience supporting compliance, documentation and field activities for mineral development projects, including having worked at the Geological Survey and Mines Bureau ("GSMB") of Sri Lanka.

These appointments materially strengthen the Company's technical, regulatory and governance capacity as it progresses toward FID.

EL199 Environmental Impact Assessment

The Company confirms that the EIA for EL199 was formally submitted to the relevant authorities in December 2025. EL199 covers areas immediately south of EL168 (which already has an approved EIA, and two IMLs issued).  A technical review meeting with all approving agencies is expected to be scheduled in March 2026, representing a crucial precursor to being granted IMLs within the EL199 area.

The EL199 area represents an optimal location for additional mining areas, providing the opportunity to materially increase production capacity. Upon receipt of EIA approval, the Company will be positioned to apply for IMLs within the relevant grid areas, as it did with EL168.

Mineral Separation Plant Studies & Land Access

The Company has engaged Mineral Technologies for engineering and design works to progress the concept study for an MSP. The concept study scope includes:

·    A collaborative workshop to align objectives and identify opportunities to reduce capital costs while delivering processing flexibility.

·    Develop basic MSP process flow diagram.

·    Develop a baseline 3D model of the MSP concept.

·    Produce a factored Capital Cost Estimate (CAPEX) for the MSP with defined battery limits.

·    Produce preliminary mechanical equipment list.

The study's deliverables are as follows:

·    Preliminary process flow diagrams.

·    CAPEX estimate with +/- 35% accuracy.

·    Conceptual level 3D model based on the recommended process flowsheet.

·    High level estimates of fuel consumption rates for the dryer and total power draw (kW).

The Company has formally requested the allocation of approximately 30 acres of land within the Hambantota Port district on which an MSP could be sited.

National Minerals Policy

The Company recently reported the publication of Sri Lanka's new National Minerals Policy, the first revision since 1999 and a strong signal that the country is open for business in the minerals sector. The new framework reflects a clear commitment from the recently elected Sri Lankan Government to encourage profitable and responsible mining practices, eliminate past inefficiencies and support investment, employment and sustainable development. The formalisation of this policy direction reinforces the positive shift seen across the sector and provides an important foundation for the effective and sustainable management of Sri Lanka's mineral resources.

The approval of the Policy was required before more focused discussions could take place with the appointed stakeholders, in particular the GSMB, to finalise the process to approve the additional mining licence and the clarification of what can be exported from Sri Lanka, which are both required to facilitate FID.

Project Funding Advancing

Capital Metals is in ongoing discussions with banks and other investors to provide project debt. The Company is also engaged in active discussions with preferred potential offtakers, with a focus on those that may also provide project equity or working capital funding. The recognised high quality of the Project's mineral products has attracted broad market interest, and counterparties have expressed positive interest in long-term supply arrangements.

The Company is prioritising offtakers prepared to provide upfront investment in equity or prepayments on offtake as an alternative source of funding. These discussions naturally need to be run in parallel with the processes to obtain the key final two approvals required for FID as the grant of the additional IML and the clarification of what can be exported will be preconditions for any financings.

Final Investment Decision ("FID")

The Company continues to work towards achieving a FID in order to commence construction before the end of Q2 2026, with an expected 9-12-month construction period until first production.

Greg Martyr, Executive Chairman of Capital Metals, commented:

"The Company has continued to make strong progress towards FID, advancing key engineering, regulatory and stakeholder workstreams while further improving project capital efficiency. Engineering studies required for FID are now largely complete, including access, hydrogeology and construction planning studies, alongside negotiation of a fixed lump-sum price with Mineral Technologies for the plant and services.

Importantly, ongoing optimisation has delivered a further material reduction in Stage 1 CAPEX, reducing estimated capital expenditure to US$17.7 million. This lower capital intensity, with increased certainty, enhances project economics, reduces development risk and supports ongoing funding discussions.

Community engagement initiatives continue to strengthen local support, with construction underway on the first Coastal Regeneration Centre and expansion of the Sri Lanka in-country team.

Funding discussions with debt, offtake and strategic partners are advancing in parallel with permitting activities, with the grant of the additional IML and the clarification of what products can be exported being essential preconditions for any financings."

Investor Webinar

Capital Metals announces that the Company's Executive Chairman, Greg Martyr, and Chief Operating Officer, Stuart Forrester, will host a webcast and Q&A for investors to discuss these Project Updates. The webcast will be conducted via the Investor Meet Company platform on Thursday, 5 March 2026 at 9 a.m. GMT. A recording of the webcast will be made available on the Company's website later that day.

Investors can sign up to Investor Meet Company for free and add Capital Metals in order to attend the webcast via: https://www.investormeetcompany.com/capital-metals-plc/register-investor.

Investors who already follow Capital Metals on the Investor Meet Company platform will automatically be invited. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9 a.m. GMT on 4 March 2026, or at any time during the live presentation. No material new financial or other information will be provided.

For further information, please visit www.capitalmetals.com or contact:

About Capital Metals

Capital Metals is a UK company listed on the London Stock Exchange (AIM: CMET). We are developing the Taprobane Minerals Project in Sri Lanka, approximately 220km east of Colombo, containing industrial minerals including ilmenite, rutile, zircon, and garnet. The Project is one of the highest-grade mineral sands projects globally, with potential for further grade and resource expansion. In 2022, a third-party Preliminary Economic Assessment provided a Project NPV of US$155-235m based on existing resources, with further identified optimisation potential. We are committed to applying modern mining practices and bringing significant positive benefits to Sri Lanka and the local community. We expect over 300 direct new jobs to be created and over US$150m in direct government royalties and taxes to be paid.

Visit our website:

www.capitalmetals.com

Follow us on social media:

X: @MetalsCapital

LinkedIn: @Capital Metals plc

APPENDIX

Figure 2: Wet Concentrator Plant Layout Drawing (also available on the Presentations page of the Company's website at: https://capitalmetals.com/our-investor-relations/presentations/).