Mr. James Lumley reports

CAPE LITHIUM PROVIDES UPDATE ON THE NORRABEES LITHIUM PROJECT

Cape Lithium Corp. (formerly known as Moonbound Mining Ltd.) has provided an update on its Norrabees lithium project, located in Northern Cape, South Africa, to clarify prior scientific and technical disclosure regarding the project.

In its news release dated Aug. 29, 2024, the company disclosed certain information pertaining to the lithium mineralized stockpiles on the project. The company clarifies that readers should only refer to the company's National Instrument 43-101 (NI 43-101) technical report dated Jan. 17, 2024, as filed on the company's SEDAR+ profile on April 15, 2024, for information regarding the mineral resource estimates for the stockpiles. Information regarding the stockpiles disclosed in the news release is not supported by a compliant NI 43-101 technical report, contrary to NI 43-101, and should not be relied upon until they have been verified and supported by a NI 43-101 technical report. The company is in the process of preparing a new NI 43-101 technical report for the project, which is expected to be completed in the first quarter of 2025, subject to the potential sale of the project.

In the company's corporate presentation from October, 2024, capital expenditure values for three phases of production activities on the project are disclosed. The company clarifies that the figures are not supported by a compliant NI 43-101 technical report, contrary to NI 43-101, and that the estimates should not be relied on until they have been verified and supported by a technical report. Accordingly, the company wishes to withdraw and retract such disclosure and confirms that it has removed the presentation from its website. The company further clarifies that it has not completed a preliminary economic assessment on the project.

Further to the company's news release dated Dec. 13, 2024, the company remains in breach of the existing agreement among Norrabees Lithium (SA) Ltd., SPH Kundalila Pty. Ltd. (SPH) and Dune Resources Pty. Ltd. dated Oct. 25, 2024. The company is now working with SPH on the potential sale of the project as a possible remedy to the breach. For more information regarding the proposed sale of the project, please refer to the company's news release dated Feb. 27, 2025, as filed on the company's SEDAR+ profile.

Qualified person's statement

Dr. Johan Hattingh is the qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects who has reviewed and approved the technical information that is contained within this news release.

About Cape Lithium Corp.

Cape Lithium, headquartered in Vancouver, B.C., Canada, is a mineral exploration and development company focused on exploiting world-class hard-rock lithium projects in Africa. The company's core focus is the Norrabees project in northern Cape, South Africa. Cape Lithium's management is committed to operating efficiently and with transparency in all areas of the business, staying sharply focused on creating long-term, sustainable shareholder value.

We seek Safe Harbor.