Mr. Alberto Orozco reports

EXPLORATION UPDATE: SEVERAL MULTI-KILOMETER SILVER TRENDS IDENTIFIED AT CRUZ DE PLATA

Capitan Mining Inc. has provided an exploration update for its Cruz de Plata project.

Highlights:

• New interpretation and analysis at Cruz de Plata, based on data collected to date, identify several important large trends that are prospective for future silver and gold discoveries:
  • Jesus Maria silver vein projects to a potential strike of 2.8 kilometres;
  • Santa Teresa silver vein projects to a potential strike of 1.8 km;
  • San Rafael North silver vein projects to a potential strike of 1.3 km before going under cover;
  • New disseminated oxide gold target developing at eastern end of Capitan vein projection, along the same stratigraphic contact that host the Capitan oxide gold deposit. Capitan East has a potential strike of at least 500 metres.
• New assays from surface sampling program at San Rafael North target returned values up to 1,263 grams per tonne silver and 0.74 g/t gold from a grab dump sample beside an old mine working. This confirms the presence of high-grade silver mineralization at San Rafael.
• Assays from surface rock sampling along the Santa Teresa West high-grade silver trend (new) returned up to 410 g/t silver, 0.9 g/t gold, 1.7 per cent lead and 0.7 per cent zinc over 0.6 m.
• Surface rock sampling data show continuity of mineralization at the Jesus Maria high-grade silver trend to a potential strike of 2.8 km.
• New targets developing on recently acquired property, Providencia West (Ag-Au-Pb-Zn) and Providencia East (Ag-Au).
• Metal zonation suggests that Cruz de Plata hosts a robust mineralized system and has significant potential for additional discoveries.
• Final drill results from the 2022 reverse circulation drill program continue to expand mineralization at Cruz de Plata.

Surface sampling at Cruz de Plata and metal zonation

The Cruz de Plata project contains 855 recent samples collected by Capitan Silver, 262 samples within the recently acquired claims acquired from Fresnillo and 1,805 historical samples by previous operators (2011 to 2014) for a total of 2,922 surface rock samples. Assays for these samples have been plotted and cross-checked with the geology at Cruz de Plata to define three metal zones which include multiple targets. These zones are:

• Silver-gold-lead-zinc: Includes Cruz de Plata's main and most advanced target, the Jesus Maria vein, as well as Santa Teresa, Providencia West and, at depth below the Capitan gold deposit, Jesus Maria South.
• High-grade silver-gold: Includes the second most advanced target, the Gully fault Ag-Au zone, and the San Rafael North and Escondida targets to the east, as well as the new Providencia East target to the northeast.
• Vein-hosted/disseminated gold: Includes the Capitan vein, disseminated Capitan oxide gold deposit and Capitan East target which is located along the continuation of the sediments-volcanics boundary to the east.

Metal zonation appears to follow stratigraphic control and proximity to the diorite-granodiorite intrusive, which sits in the northern part of the property. High-grade silver mineralization appears to be proximal to the intrusive, mainly at the contact between the skarn alteration and the shales-limestones. Gold mineralization is observed more distal from the intrusive primarily at the contact of the sediments and the overlying tertiary rhyolites and volcanic breccias. A transition is observed on the silver trend from base metal rich and higher arsenic to the west to base metal poor and low arsenic to the east. Currently this transition is interpreted to be a vertical zonation of the veins resulting in its current outcrop form by faulting and tilting mainly by the Penoles fault.

High-grade trends and targets

Expansion of high-grade trends and targets

Drilling, prospecting and recent mapping have helped define a minimum of seven multikilometre, high-grade silver trends and targets. This new interpretation, aided by the recent acquisition of claims from Fresnillo, which consolidated the main silver trend in the district, has led to a significant increase in the untested strike potential across the Cruz de Plata property package.

The most advanced targets to this point include western portions of the Jesus Maria vein, and portions of the Gully fault zone, with the majority of Jesus Maria (central and eastern portions), Santa Teresa and San Rafael North targets, defined by surface sampling and minimal, widely spaced, shallow drilling. It should be noted that the cumulative strike length of the targets above is approximately seven km, with the majority of the current drilling concentrated over a 500 to 700m area at the westernmost portion of the Jesus Maria/Gully fault zones. Drill results (previously released) from Jesus Maria and the Gully fault zones demonstrate high, multiounce silver grades with good continuity along strike and at depth, from historic surface sampling and trenching. These results reflect the attention this area has received from multiple drill programs.

Future work along the silver trends includes additional surface trenching and geochemistry to help prioritize these targets for first-pass drilling or expansion drilling.

2022 drill program at Jesus Maria silver trend

In 2022, following the acquisition of the Altiplano royalty on the Cruz de Plata project (press release dated Jan. 13, 2022), Capitan begin to focus on the robust silver opportunity on its property. In total ,6,449 m have been drilled by Capitan with the following RC drill holes intersecting bonanza-grade silver mineralization:

• 21-JMRC-01: 42.7 m of 207.82 g/t silver equivalent, including 1.5 m of 1,099.34 g/t AgEq and also including 1.5 m of 1,267.22 g/t AgEq;
• 21-JMRC-03: 10.7 m of 403.43 g/t AgEq, including 1.5 m of 739.63 g/t AgEq, also including 1.5 m of 800 g/t AgEq and also including 1.5 m of 595.52 g/t AgEq;
• 21-JMRC-10: 16.8 m of 309.82 g/t AgEq, including 1.5 m of 2,250.12 g/t AgEq;
• 21-JMRC-12: 21.3 m of 133.04 g/t AgEq, including 1.5 m of 455.13 g/t AgEq and also including 1.5 m of 305.61 g/t AgEq;
• 22-JMRC-22: 10.7 m of 314.54 g/t AgEq, including 1.5 m of 1,431.68 g/t AgEq.

Silver mineralized zones intersected at the Jesus Maria vein with the RC drilling were as large at 42 m wide and averaged approximately 10 m in true width.

In late November, 2022, Capitan acquired a key property from Fresnillo which allowed for the consolidation of high-grade silver vein trends at Cruz de Plata (see press release dated Dec. 6, 2022). To date Capitan has confirmed the presence of high-grade silver mineralization through drilling at the Jesus Maria vein over 1.3 km with mineralization remaining open along strike and at depth.

The latest two drill holes in the program continued to target the down-dip and on-strike continuity of mineralization at the Jesus Maria vein and Gully fault targets. Drill hole 22-JMRC-23 targeted the down-dip extension of the Jesus Maria vein while drill hole 22-JMRC-24 targeted the down-plunge extension of the Gully fault zone. Drill hole 22-JMRC-23 intersected a new zone of mineralization located approximately 40 m above the down-plunge extension of the Gully fault zone, returning 118.44 g/t AgEq over 6.1 m. The drill hole also intersected the main Jesus Maria vein at depth, extending the zone an additional 105 m down dip, but mainly returned a wide intersection of lower-grade mineralization, including 24.4 m of 48.95 g/t AgEq, which included 1.52 m of 194.92 g/t AgEq.

Drill hole 22-JMRC-24 was designed to test the orientation of the down-plunge extension of the Gully fault zone. The hole appears to have been drilled too shallow and above the down-plunge extension of high-grade mineralization. The hole returned mainly low-grade silver mineralization that appears to potentially line up with the new zone intersected in hole 22-JMRC-23.

Pilot drill program at new Santa Teresa East target

The Santa Teresa vein has been sampled on its westernmost and easternmost ends with assays in the west of up to 443 g/t Ag and up to 3.08 g/t Au with base metal contents in surface rock samples. At the eastern portion Santa Teresa vein, surface rock samples, with a 100 g/t Ag cut-off, have returned between 132 g/t Ag and 209 g/t Ag over a strike length of about 500 m. The eastern end of the Santa Teresa silver trend consists of multiple, historic mine workings and is located immediately north of the San Rafael historic mine workings on the eastern end of the Jesus Maria vein. New sampling along the eastern portion of this trend assayed 1,364 g/t Ag and 0.74 g/t Au, indicative of the grades that had been mined at the site historically. This is also consistent with data reported by Riverside Resources which indicated that grades of around 1,000 g/t Ag were mined at San Rafael (see Riverside press release dated Dec. 12, 2008).

In December, 2022, Capitan designed a small pilot RC drill program to test the on-strike and down-dip continuity of the Santa Teresa target. Four widely spaced holes were drilled along the Santa Teresa zone with all of them intersecting multiple, subparallel zones of mineralization. Hole 22-SRRC-01 intersected 1.52 m of 122 g/t Ag, within a wider 4.6 m interval of 70.23 g/t Ag and 0.105 g/t Au, as well as a wide intercept of mineralization of 10.7 m of 32.46 g/t Ag and 0.14 g/t Au. Hole 22-SRRC-03 intersected 1.52 m of 182 g/t Ag and 0.105 g/t Au and hole 22-SRRC-04 intersected three m of 127.4 g/t Ag. While these drill holes did not intersect the expected higher grades, the wide-spaced program confirmed the continuity of silver and gold mineralization in the easternmost projections of the Santa Teresa vein over a strike length of about 370 m and to a down-dip length of up to 270 m. Follow-up drilling will continue to focus on the locating high-grade shoots within these zones.

Qualified person and quality assurance/quality control

The scientific and technical data contained in this news release pertaining to the Cruz de Plata project were reviewed and approved by Marc Idziszek, PGeo, a non-independent qualified person to Capitan Silver, who is responsible for ensuring that the technical information provided in this news release is accurate and who acts as a qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

Capitan Silver has a quality assurance/quality control program that includes insertion and verification of control samples, including standard reference material, blanks and duplicates consistent with industry standards.

RC drill samples from the Cruz de Plata project are collected and split at the drill site using a Gilson universal splitter. The samples are stored in either plastic bags (dry) or micropore bags (wet) and secured with plastic zip-ties and then transported to the preparation laboratory of Bureau Veritas in the city of Durango, Durango. The sample pulps are then transported to the Bureau Veritas laboratory in Vancouver, where they are assayed for gold by fire assay with atomic absorption finish (FA430 assay method code; 0.005 ppm (part per million) to 10 ppm detection limit). Samples over 10 ppm Au and over 100 ppm Ag are assayed with gravimetric finish (assay code FA530). All samples are also assayed by inductively coupled plasma emission spectroscopy (code AQ300) for a suite of 33 elements. Samples over 1 per cent Pb and/or 1 per cent Zn are assayed by aqua regia ore-grade ICP-ES (AQ 370).

Diamond drill hole samples, drilled by Fresnillo, reported in this press release were assayed at SGS Labs for gold by fire assay with atomic absorption finish (GE_FAA515 assay method code; 0.005 to 10 ppm detection limit). Samples over 10 ppm Au and over 100 ppm Ag are assayed with gravimetric finish (assay code GEO_FAG515). All samples are also assayed by ICP-ES (code GE_ICP40B) for a suite of 33 elements. Samples over 1 per cent Pb and Zn are assayed by aqua regia ore-grade ICP-ES (GO_ICP90Q).

About Capitan Silver Corp.

Capitan Silver is a well-financed junior exploration company focused on its 100-per-cent-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.

We seek Safe Harbor.