Mr. Alberto Orozco reports

CAPITAN SILVER CLOSES C$2 MILLION FINANCING

Capitan Silver Corp. has closed its private placement of common shares. The private placement was oversubscribed, with the company issuing 13,466,667 shares at a price of 15 cents per share for gross proceeds of $2.02-million.

The financing was led by a strategic investment from Construplan (Construcciones Planificadas SA), which, upon closing of the transaction, will own 9.92 per cent of the company. In addition to the investment from Construplan, Capitan received strong support from its largest shareholders, including Michael Gentile, CFA, who, upon closing, will own 16.66 per cent of the company. In total, management and insiders accounted for approximately 13.4 per cent of the financing.

Capitan intends to use the net proceeds from the private placement to continue to advance the Cruz de Plata gold-silver project and evaluate potential acquisitions, as well as to finance working capital and general corporate expenses.

Certain insiders of the company acquired an aggregate of 1.8 million common shares in the private placement. Any participation by insiders in the offering constitutes a related-party transaction as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. However, the company expects such insider participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the common shares subscribed for by the insiders, nor the consideration for the common shares paid by such insiders, would not exceed 25 per cent of the company's market capitalization. There are no material facts or material changes regarding the company that have not been generally disclosed.

Closing of the private placement is subject to certain customary conditions, including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange. All securities issued under the private placement will be subject to a statutory hold period expiring Aug. 20, 2024. The company did not pay any finders fees with respect to this private placement.

About Capitan Silver Corp.

Capitan Silver is a well-financed junior exploration company focused on its 100-per-cent-owned Cruz de Plata gold-silver 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.

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