Mr. Eric Roth reports

CAPELLA SELLS SAVANT GOLD PROJECT TO PROSPECTOR METALS

Capella Minerals Ltd. has entered into a property acquisition agreement with Prospector Metals Corp., through which Prospector will acquire a 100-per-cent interest in the Savant gold project in Ontario, Canada. Prospector has been exploring the Savant gold project through an earn-in agreement announced in September, 2020, and has defined a number of high-grade gold targets from work conducted within both the extensive Iron formation sequences (for example, the Snowbird and Horseshoe targets) and the Wiggle deformation zone (see the company news release dated June 28, 2022).

Terms of the property acquisition agreement

Prospector will acquire a 100-per-cent interest in the Savant gold project from Capella in accordance with the following terms:

• Prospector to make a cash payment to Capella of $50,000 on closing;
• Prospector to issue Capella one million common shares (with a standard regulatory hold period of four months) upon closing;
• Capella to retain a 1-per-cent net smelter royalty (NSR) on any potential future production from the property (with 0.5 per cent being purchasable at any time for $1-million).

The property acquisition agreement replaces the existing earn-in agreement in its entirety, and closing will be subject to TSX Venture Exchange (and other regulatory) approvals being obtained.

Eric Roth, Capella's president and chief executive officer, commented: "The sale of the Savant gold project to our joint venture partner Prospector is consistent with our flagged strategy of exiting our precious metals projects in the Americas, and focusing on our Scandinavian copper, gold and battery metal projects. Ultimately, the successful sale of our assets in Canada and Argentina will lead to Capella having a more streamlined portfolio, and a more clearly-defined strategy going forward.

"Whilst we have relinquished our direct interest in the Savant gold project, we strongly believe in the potential for new high-grade gold discoveries on the property, and Capella shareholders will retain upside to all future exploration success through both the Prospector shareholding and the NSR from potential future production. I also look forward to keeping the market updated on our divestiture efforts at our Sierra Blanca (Argentina) and Domain (Manitoba) projects."

Qualified person and disclosure statement

The technical information in this news release relating to the Savant gold project has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, and approved by Mr. Roth, the company's president, CEO and director, and a qualified person under NI 43-101. Mr. Roth holds a PhD in economic geology from the University of Western Australia, is a fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and is a fellow of the Society of Economic Geologists (SEG). Mr. Roth has 35 years of experience in international minerals exploration and mining project evaluation.

About Capella Minerals Ltd.

Capella is engaged in the acquisition, exploration and development of quality mineral resource properties in favourable jurisdictions, with a focus on European base and battery metals projects.

On Oct. 17, 2023, the company entered in to a binding asset sale agreement with NickelX, a private Norwegian mining company, through which it will divest its 100-per-cent interests in the Hessjogruva, Kjoli and Lokken copper-zinc-cobalt projects in Trondelag, central Norway. NickelX currently holds 100-per-cent interests in four nickel exploration projects in northern Norway and is in the process of undertaking an initial public offering (IPO) on Oslo's Euronext Growth Exchange, with the objective of becoming Norway's leading independent battery metals company. The transaction proceeds, payable upon completion of the NickelX IPO, include a combination of cash and NickelX shares, which Capella intends to distribute to its shareholders on a pro rata basis. The long-stop date for the current agreement is April 7, 2024.

The company continues to explore the northern Finland gold-copper project in the Central Lapland greenstone belt, together with JV partner Cullen Resources Ltd. A total of six exploration permits have now been approved, including the priority Killero East copper-gold (Cu-Au) target. In central Finland, the company's focus is on the discovery of lithium and rare-earth element deposits at both its Perho reservation, in addition to an extensive package of properties in the broader Keliber district through a JV with European Energy Metals Corp. (formerly Hilo Mining).

Capella also retains exposure to exploration success in precious metals projects through its joint venture with Agnico Eagle Mines Ltd. (formerly Yamana Gold Inc.) at the Domain gold project, Manitoba (Capella: 29.6-per-cent interest). The company also retains a 49-per-cent interest in the Sierra Blanca gold-silver project in Santa Cruz, Argentina, which is currently being explored by Austral Gold Ltd.

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