Mr. Eric Roth reports

CAPELLA EXPANDS COPPER-GOLD PORTFOLIO WITH EARN-IN AGREEMENT ON THE SOLANA IOCG PROJECT, SOUTHERN SPAIN

Capella Minerals Ltd. has signed a binding letter of intent (LOI) with Verde Minerals Ltd. with respect to an earn-in agreement on the Solana iron-oxide-copper-gold (IOCG) project in southern Spain. The Solana IOCG project is located 80 kilometres northwest of the regional centre/port of Almeria and 20 km east of the Alquife iron mine, and is a district-scale (35-plus km in length) project which includes the former-producing Cerro de Gallo and Solana high-grade vein-hosted copper-gold deposits and the copper-rich Conde Xiquena haematite mine.

The Solana project consists of a series of laterally-extensive, north-northwest-trending haematite-rich copper-gold veins hosted dominantly within proterozoic-age meta-sedimentary rocks and underlain by felsic intrusions. Whilst future exploration programs at Solana will evaluate the resource potential of the extensive high-grade vein systems, the company's primary focus will be on the evaluation of buried IOCG-type deposits which the company interprets to be source for the outcropping copper-gold veins.

Highlights

• The district-scale Solana project consists of a 35-plus km long belt of high-grade, north-northwest-trending and haematite-rich copper-gold veins, including the former Cerro de Gallo, Solana and Conde Xiquena mining operations which ceased operations in the 1920s. The individual copper-gold veins are laterally extensive (kilometre scale),and a cumulative strike extent exceeding 50 km have been mapped to date. Host rocks are dominantly proterozoic-age meta-sedimentary rocks with underlying felsic intrusions.
• The Solana project lies within the Betic fold and thrust belt of southeastern Spain, which is linked tectonically to the collision between the Eurasian plate and the African plate (and with the formation of the Rif and Atlas Mountain chains in northern Morocco).
• Previous exploration work completed at Solana (2010 to 2013) included a 1,775 line km heliborne magnetic/radiometric survey (covering the central portion of the current project area), stream sediment sampling and a mapping exercise including the assaying of 1,300 rock chip samples, and a limited drill campaign in which only three short diamond drill holes were successfully completed. Geophysical surveys (including an initial magnetotelluric -- or AMT -- survey and a gravity survey planned for 2026) are expected to provide additional information on the buried source of the high-grade haematite-gold-copper mineralization mapped at surface.
• Strong community support exists for new mining projects and a favourable location with respect to both infrastructure (railways, highways and ports) along with proximity to major renewable energy sources (including the nearby Andasol solar and Cuerva wind energy farms) are key attributes of the project. The Minas de Alquife mine, which was historically Europe's second largest open-pit iron ore operation, is located approximately 20 km due west of Solana along the same regional structural corridor and is currently being assessed by its third party owners for reopening.
• The project currently consists of one granted investigation permit (Filabres 1; covering 14.6 square km) and two exploration permit applications (Filabres PE 1 and 2; covering 212 square km in total).

The company expects exploration activities to commence immediately at Solana, with initial drill target definition in early 2026 to be followed up by first-pass diamond drilling in late-2026. Seasoned geologist John Gray has been designated project manager for Solana.

Eric Roth, Capella's president and chief executive officer, commented: "I am extremely pleased to be announcing the incorporation of the Solana iron-oxide copper-gold project in to Capella's exploration and development portfolio. The Solana project represents a new geological target type for southern Spain, with only limited historical exploration having been completed since the closure of operating mines in the 1920s. Indeed, whilst most exploration companies operating in the Iberian Peninsula have focused on the Cretaceous-age pyrite belt of southwestern Spain, the Solana IOCG project represents a new concept for potential copper-gold discoveries. I sincerely look forward to keeping all stakeholders updated as we move forward with exploration at Solana."

Terms of the LOI

• Capella will have the option to acquire an initial 75-per-cent interest in the Solana project from Verde's 100-per-cent-owned Spanish subsidiary, Cobre y Oro Andaluz (CyOA), through the following staged earn-in agreement:
  • Phase I -- Capella will have earned-in to an initial 30-per-cent interest in the project by completing the minimum exploration commitment (as stipulated by the Andalucia mining authorities) on each granted permit within 12 months. Capella's minimum spend on the granted Filabres 1 permit for 2026 will be 290,000 euros.
  • Phase II -- Capella will have earned in to a 51-per-cent interest in the project by completing the minimum exploration expenditure on each granted permit within 24 months of their respective grant dates.
  • Phase III -- Capella will have earned in to a 75-per-cent interest in the project by completing the minimum exploration expenditure on each granted permit, and completing a prefeasibility study, within 72 months of their respective grant dates.
  • After Capella has completed the earn-in to 75 per cent, Verde will have the option to either maintain its 25-per-cent interest in the project by funding its pro-rata share of project expenditures or dilute out to a 2-per-cent NSR using a standard industry dilution formula.
• Capella to provide Verde with a refundable 70,000-euro environmental bond to be lodged with the Andalucia government for the granted Filabres 1 permit.
• Capella to pay Verde the amount of 115,000 euros upon signing this LOI. In addition, Capella will make annual payments of 50,000 euros to Verde upon the first of either i) the relinquishment of all properties that form of this agreement or ii) Capella completes all items required as per phase III of the agreement.
• Seasoned geologist John Gray has been designated project manager for Solana.

The binding LOI with Verde remains subject to acceptance by the TSX Venture Exchange.

Qualified persons and disclosure statement

The technical information in this news release relating to the Solana copper-gold project has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101, and approved by Dr. Eric Roth, the company's president and chief executive officer, a director, and a qualified person under National Instrument 43-101. Dr. 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). Dr. Roth has 35 years of experience in international minerals exploration and mining project evaluation.

About Capella Minerals Ltd

Capella is a Canadian exploration and development company with a focus on generating gold-copper projects globally.

Capella announced on Sept. 2, 2025, the signing of a definitive agreement with Turkish mining company, Tumad Madencilik Sanayi Ve Ticaret A.S., for a staged earn-in on the company's portfolio of precious and base metal projects in Scandinavia. Tumad's minimum year 1 investment commitment includes 12,000 m of diamond drilling on the company's gold-copper projects in the Central Lapland greenstone belt of northern Finland (4,000 metres) and copper-cobalt-zinc VMS (volcanogenic massive sulphide) projects in central Norway (8,000 m).

Capella also retains a carried 10-per-cent interest through to production on the Lokken copper-cobalt-zinc VMS project of central Norway through a partnership with Teako Minerals Corp. In addition, Capella holds net smelter royalties on the Savant gold project in Ontario, Canada (BeMetals Corp.), and the Central Finland lithium projects (Grit Metals Corp.), as a result of the recent divestiture of non-core assets.

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