Mr. Julien Balkany reports

CAPELLA PROVIDES EXTENSION FOR NORWAY ASSET SALE CLOSING

Capella Minerals Ltd. and Polar Transition Metals AS (Polar, formerly NickelX AS) have mutually agreed on a 90-day extension of the long-stop date in order to close the asset sale agreement previously announced on Oct. 17, 2023. The amended long-stop date to close the agreement is now July 7, 2024. This extension paves the way for the continuing initial public offering (IPO) of Polar on Euronext Growth in Oslo, Norway.

Julien Balkany, chairman of Polar Transition Minerals AS, said: "We are pleased to be moving forward at full speed with the IPO on Euronext Growth in Oslo and our objective is become the first publicly listed company in Norway exclusively focused on exploring, exploiting and supplying critical minerals essential for the energy transition. We are on track to complete the transaction with Capella in 2Q24. Polar Transition Minerals' aim is to contribute to the resurgence of a resilient mining industry in Norway while accelerating the pace of the energy transition and the supply of strategic metals in Europe."

Revised terms of the asset sale agreement

Capella has agreed to extend the closing of the agreement announced on Oct. 17, 2023, to July 7, 2024. In recognition of current market conditions, Capella has also agreed to a minor adjustment in the consideration received from Polar by accepting an increased component of Polar shares upon completion of the IPO. As indicated previously, Capella intends to distribute all Polar shares received to its shareholders on a pro rata basis.

The revised Polar consideration is as follows:

1. Capella to receive $2.5-million in Polar shares upon closing of the IPO;
2. Capella to receive $3.75-million in cash upon closing of the IPO;
3. Polar to immediately cover continuing costs directly related to the projects and with an approximate value of $200,000.

All other terms and conditions of the agreement remain unchanged.

Eric Roth, Capella's president and chief executive officer, commented: "We will continue to support the Polar team in ensuring the success of their IPO on the Euronext Growth Exchange in Oslo, and with the advancement of the central Norway copper portfolio. Polar is building a strong local technical and management team and I am confident in their ability to drive the projects forward. I also believe that the increased consideration of Polar shares as part of the acquisition proceeds will directly benefit Capella shareholders by providing additional exposure to future success on the projects."

Qualified persons and disclosure statement

The technical information in this news release relating to the company's Norwegian copper assets has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, and approved by Eric Roth, the company's president and chief executive officer, a 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 current focus on Scandinavian metals projects.

Capella continues to explore the Northern Finland gold-copper project in the Central Lapland greenstone belt, together with joint venture partner Cullen Resources Ltd. (ASX: CUL). A total of six exploration permits have now been approved, including the priority and drill-ready Killero East gold-copper and Saattopora West gold-copper projects. In central Finland, the company also continues to explore for lithium and rare-earth element deposits at its Perho project.

The company entered in to a binding asset sale agreement with Polar Transition Metals AS on Oct. 17, 2023, through which it will divest its 100-per-cent interests in the Hessjogruva, Kjoli and Lokken projects copper-zinc-cobalt projects in Trondelag, central Norway. Polar 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 IPO, includes Polar shares which Capella intends to distribute to its shareholders on a pro rata basis. The long-stop date for this agreement has been extended to July 7, 2024.

Capella continues to evaluate strategic alternatives for its joint venture with Agnico Eagle Mines Ltd. at the Domain gold project, Manitoba (Capella 29.6-per-cent interest), in addition to the company's 49-per-cent interest in the Sierra Blanca gold-silver project in Santa Cruz, Argentina, which is being explored by Austral Gold Ltd.

The company is in the process of closing agreements on the Savant gold project (Ontario, Canada) and the central Finland lithium project which will convert the company's direct interests in these projects to significant shareholdings in Prospector Metals Corp. (TSX-V: PPP) and European Energy Metals Corp. (TSX-V: FIN), respectively.

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