CAPRICORN METALS LTD — AGM Information 2019

Nov 19, 2019

AGM PRESENTATION NOVEMBER 2019

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Disclaimer & Competent Persons Statement

CAUTIONARY STATEMENT – FORWARD LOOKING STATEMENTS

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation of belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. The detailed reasons for that conclusion are outlined throughout this announcement and all Material Assumptions are disclosed.

However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements.

Such risks include, but are not limited to resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as governmental regulation and judicial outcomes.

For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

The Company has concluded it has a reasonable basis for providing the forward looking statements that relate to the Bibra Feasibility Study that are included in this presentation, the details of this study are outlined in an ASX announcement dated 23 October 2017, which has bee prepared in accordance with the JORC code (2012) and ASX Listing Rules.

The Company confirms that all material assumptions underpinning the production target and forecast financial information contained in the Company’s ASX announcement released on 23 October 2017 continue to apply and have not materially changed

COMPETENT PERSON’S STATEMENT

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr. Michael Martin who is Chief Geologist and a full time employee of the Company. Mr. Michael Martin is a current Member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Martin consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

The information in this report that relates to Ore Reserves for Bibra is based on information compiled by Mr Daniel Donald. Mr Donald is an employee of Entech Pty Ltd and is a Member of the Australian Institute of Mining and Metallurgy (MAusIMM, #210032). Mr Donald has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity currently being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Donald consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

LISTING RULE 5.23 DISCLOSURE

Capricorn Metals confirms that it is not aware of any new information or data that materially affects the information included in the previous ASX announcement on Ore Reserves & Mineral Resources dated 29 May 2018 and Metallurgy dated 19 June 2017 and, in the case of estimates of Mineral Resources, Ore Reserves, Plant operating costs and Metallurgy, all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not materially changed from previous market announcements.

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The Opportunity at Karlawinda

1. 2,042km[2 ] of 100% owned tenure in premier “low risk” mining jurisdiction with proven geological endowment

2. Two large scale gold mineralised systems discovered at Karlawinda to date

3. Impressive Resource & Reserve growth from active exploration programs

4. 1.5Moz Total Mineral Resources[(1)(2)]

5. 892,000oz Open Pit Ore Reserve[(3)(4)]

6. 1. Positive Feasibility Study (Nov 2017) ~100,000oz/pa stand-alone gold project

7. Single large, low strip ratio open pit

8. 3Mtpa CIL Processing Plant

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• 8.5 year mine life

• Competitive capex and opex

• Gas power solution available

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• All key permits in place

• (1) Refer to Listing Rule 5.23 Disclosure on page 2. (2) Refer to slide 21 for full details of the Mineral Resources. (3) Refer to Listing Rule 5.23 Disclosure on page 2. (4) Refer to slide 22 for full details of the Ore Reserves.

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Corporate Summary

Capital Structure (pre-consolidation)[*]

ASX Code CMM Shares on issue 1,624 million Unlisted options 91 million Share price 20 cents Market Cap $325 million 12 month range 5.3 – 27.5 cents Daily volume 4.8 million Cash $86.8 million

Major Shareholders Hawkes Point Holdings 16.8% Paradice Investment Mgt 8.9% Board & Executives 8.8%

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Directors and Management Mark Clark – Executive Chairman Kim Massey – CEO Mark Okeby – Non Executive Director Paul Thomas – COO Myles Ertzen – Non Executive Director Tammie Dixon – CFO Steven Evans – GM Karlawinda

* As at 18 November 2019

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What's Changed in 12 months?

	2018*	2019+
AUD Gold Price	A$1,686	A$2,152	(+28%)
USD Gold Price	US$1,226	US$1,484	(+21%)		$668
AUD/USD	0.73	0.69	(-5%)	$466
ASX All Ords	6,015	6,816	(+13%)
ASX Gold Index	5,010	6,527	(+30%)
Share Price	6.5 cents	20 cents	(+238%)	Further tailwinds for gold:
Market Cap	$48m	$357m	(+644%)	•	US/China trade war
				•	Brexit
Cash	$2.7m	$86.8m		•	Long-term low interest rate environment
				•	Geopolitical conflict (North Korea, Syria etc.)

* As at 5 November 2018

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+ As at 5 November 2019

Gearing Up Towards Development

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Project development team appointed

• Well regarded in-house development team appointed with significant experience in constructing CIL plants in Australia, Africa and Asia

• Relocation of camp completed and installation being planned

Review of previous management optimisation study underway

• Optimisation of Reserve and Resource studies

• Review of process flowsheet design and mining schedule

• Finalisation of tender process for major contract awards

Pre financing equity raised and hedging completed

• circa $87 million cash at bank after completion of share placements

• 200,000 ounces of gold hedging at price of A$2,249/oz completed with Macquarie Bank.

• Gold hedging delivery schedule to be finalised

• Finalisation of MBL financing documents underway

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On target to commence full scale construction activities in the March 2020 quarter

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Gearing Up Towards Development

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Karlawinda, First Class WA Location

Premier mining jurisdiction

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• 60km south east of Newman in Western Australia

• 2,042km[2 ] of 100% owned exploration and mining tenements

• Road access via the Great Northern Hwy

• • Multiple flights per day Perth to Newman

• • Mining engineering, suppliers, services

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Bibra Mineral Resource and Ore Reserve Growth

Continuing exploration yielding further growth

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M & I Resources 44.8Mt @ 1.0 g/t 1,375,000oz Proved Ore Reserves 9.6Mt @ 1.1 g/t 337,000oz Inferred Resources 6.2Mt @ 0.7g/t 150,000oz Probable Ore Reserves 17.9Mt @ 1.0 g/t 555,000zz Total Resources 51Mt @ 0.9g/t 1,525,000oz Open Pit Ore Reserve 27.5Mt @ 1.0 g/t 892,000oz*

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• Refer to Listing Rule 5.23 Disclosure on page 2.

• Refer to slide 21 for full details of the Mineral Resource.

• Refer to slide 22 for full details of the Ore Reserve.

Tramore

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• Located 350m south of Bibra Pit, most advanced prospect not currently in resource

• Gold mineralisation defined over a strike length of approximately 450m, ranges in thickness between 10m and 20m, dips at approximately 25° and is open at depth

• Key results confirm the mineralisation continuity including:

• 19m @ 1.51g/t from 119m (KBRC1184)

• 34m @ 1.07 g/t from 41m (KBRC1164)

• 19m @ 1.63 g/t from 78m (KBRC1176)

• 20m @ 1.20g/t Au from 155m (KBRC148)

• 20m @ 1.35g/t from 97m (KBRC1240)

• 21m @ 1.01g/t from 156m (KBRC1251)

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Bibra Gold Deposit – 1.5Moz and Growing

Continuous shoots down plunge – simple leverage to increases in gold price

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Open Pit Mining

Bibra Deposit - Large tonnage, low strip ratio

May 2018 open pit design:

• Improved 4-staged design

• Life of Mine strip ratio 4.8:1

• Favourable geotechnical conditions

• HW overall slope ~47[o] , FW ~25[o]

• Mining contract tender completed 2018:

• Review and update

• Opportunities to optimise?

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Metallurgy & Processing

Conventional processing, high recoveries

• Good metallurgical testwork and results

• 92.1% LOM recovery, 45% gravity recoveries in primary ore

• Coarse grind size (P80 150μm oxide and 120μm primary)

• Low reagent consumptions

• Conventional 3Mtpa CIL circuit

• 3.7Mtpa throughput during oxide/laterite processing

• Single stage crushing (reviewing)

• SAB milling - 4.8MW SAG, 4.8MW Ball (reviewing)

• Large gravity circuit

Optimised comminution circuit will reduce operating risk and increase flexibility

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Optimised Flowsheet

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Capital & Operating Cost Summary

CAPITAL Item		October 2017 Feasibility Estimates (A$m)	June 2018 Optimised Estimates (A$m)
Processing Plant & Infrastructure (EPC) & Infrastructure (Plant buildings and workshops, borefield)		$98.7	$88.1
Other Infrastructure (TSF, accommodation village, access road, communications)		$33.2	$36.7
Owners Costs (temporary construction facilities, capital spares, first fills, personnel costs, insurance, establishment costs)		$14.5	$7.2
Total Estimated Capital Costs (1) (Including Contingency)		$146.3	$132.0

OPERATING Item	LOM Cost / Tonne (processed) (A$/t)	LOM Cost / Ounce (recovered) (A$/oz)
Mining (Contract)	$18.0	$603.0
Processing & Maintenance	$11.1	$373.9
General & Admin.	$2.5	$84.0
Realisation Costs	$0.1	$3.9
Sustaining Capital (incl. closure costs)	$0.8	$26.8
	$32.5	$1,091.5
Royalties & Charges	$2.6	$86.2
AISC(1)	$35.1	$1,177.8

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Review and optimisation underway

(1) Refer to ASX Announcement dated 20 June 2018.

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Karlawinda Gold Project - Unlocking the potential of a new gold camp

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• 2,042km[2 ] of 100% owned exploration and mining tenements

• Enormous exploration potential in under-explored Archaean greenstone belt

• Prioritising regional exploration and near-mine exploration opportunities

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Karlawinda Gold Project - Near mine exploration potential

• Aeromagnetic survey

• identified Bibra deposit located on a magnetic high

• Several similar repeat

• magnetic highs located in close proximity to proposed Bibra pit

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Karlawinda Gold Project – Near mine exploration

• Bulk of the drilling

has been at the Bibra deposit Limited to no drilling on other magnetic highs within 8 kilometres of Bibra

• Limited to no drilling

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Karlawinda Gold Project – Near mine exploration

• Number of targets

• identified

• Aim to prioritise and

• drill targets in the next 12 months.

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Karlawinda Gold Project – Regional exploration

• First pass exploration outside the immediate 1.5Moz Bibra Deposit

• Mundiwindi greenstone region identified from soils sampling & mapping, 2018[(1)]

• Magnetic and geochemical survey of the Mundiwindi greenstone identifying areas of coincident gold prospectivity[(2)]

• High-priority soil anomalies identified with similar key pathfinder elements as Bibra

• Over 50 soil samples through CMM tenure returned assay values over the anomalous threshold[(4)]

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• (1) Refer to ASX Announcement dated 2 November 2018. (2) Refer to ASX Announcement dated 1 July 2019

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Karlawinda Gold Project – Regional exploration

• Continued evaluation of existing prospects

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• K3 Prospect, up-plunge projection of Francopan[(1)]

• 26m @ 1.03 g/t Au from 132m

• 27m @ 1.12 g/t Au from 234m

• Francopan, wide-spaced drilling, high grade zones[(2)]

• 37m @ 1.9 g/t Au incl. 8m @ 5.1 g/t Au from 179m

• 81m @ 1.2 g/t Au incl. 15m @ 3.0 g/t Au from 400m

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(1) Refer to ASX Announcement dated 25 July 2018. (2) Refer to ASX Announcement dated 25 July 2016.

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Summary

A compelling opportunity in the Australian gold sector

• Karlawinda Gold Project is an economically robust Western Australian gold development project

• Proven board and management team

• Gold hedging in place at A$2,249 per ounce to underpin the development of the project

• Project is development ready with all key permitting in place

• Bibra pit and reserve growth leveraged to gold price

• Large and poorly explored tenement package provides opportunity for future growth through exploration success

• Karlawinda the platform to grow a substantial gold

• company

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Mineral Resource – Karlawinda Gold Project

May 2018

	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE (as of May 2018)
Date	MEASURED			INDICATED			INFERRED			TOTAL
	Tonnes (Mt)	Grade (g/t)	Ounces (koz)	Tonnes (Mt)	Grade (g/t)	Ounces (koz)	Tonnes (Mt)	Grade (g/t)	Ounces (koz)	Tonne s (Mt)	Grade (g/t)	Ounces (Moz)
May 2018	10.64	1.1	365	34.16	0.9	1,010	6.16	0.7	150	50.96	0.9	1.525

BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE BY DOMAIN (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE BY DOMAIN (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE BY DOMAIN (as of May 2018)	BIBRA GOLD DEPOSIT MINERAL RESOURCE ESTIMATE BY DOMAIN (as of May 2018)
DOMAIN	Tonnes (Mt)	Grade (g/t Au)	Ounces (koz)
Laterite	3.1	0.9	88
Oxide – upper saprolite	3.9	0.8	99
Oxide - lower saprolite	4.9	0.8	134
Transitional	5.5	0.8	142
Fresh	33.4	1.0	1,059
TOTAL	50.96	0.9	1,525

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Capricorn Metals Ltd has updated the Mineral Resource Estimate at its 100%owned Karlawinda Gold Project in WA in May 2018. The new resource was updated to include a further 14,000m of drilling at Southern Corridor, moving the dominant JORC 2012 resource classification in this area from Inferred to Indicated status. The May 2018 Resource is reported using the reserve variable cut off grades of 0.29g/t for Laterite, 0.27g/t for Oxide, 0.31g/t for transitional and 0.36g/t for fresh material. The cut off grades have been used to ensure the Reserve sits wholly inside the reported Resource. Previously the resource was reported at a 0.5g/t cut off. Key points from the resource update are listed below:

• 90% of the Resource is classified in the high confidence Measured and Indicated categories

• A Measured Resource and Indicated Resource totalling 45 million tonnes @ 1.0g/t Au for 1.4 million ounces

• The classification of Southern Corridor resource has been elevated from Inferred to the Indicated classification

• Ounces per vertical metre peak at over 10,000 between 60 and 80m from surface

• For full details of Karlawinda Mineral Resource Estimate refer to ASX Announcement dated 29 May 2018.

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Ore Reserve – Bibra Deposit

May 2018

Deposit	PROVED RESERVES	PROVED RESERVES	PROVED RESERVES	PROBABLE RESERVES	PROBABLE RESERVES	PROBABLE RESERVES	TOTAL RESERVES	TOTAL RESERVES	TOTAL RESERVES
	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	('000 t)	(g/t Au)	('000 oz)	('000 t)	(g/t Au)	('000 oz)	('000 t)	(g/t Au)	('000 oz)
Bibrapit	9,603	1.1	337	16,915	1.0	529	26,518	1.0	866
Sth Corridor pit	7.9	0.6	0.2	1,027	0.8	26	1,035	0.8	26
Total	9,611	1.1	337	17,942	1.0	555	27,553	1.0	892

KARLAWINDA ORE RESERVE STATEMENT (A$1600/ounce assumption)

Notes:

• Ore Reserves are a subset of Mineral Resources.

• Ore Reserves reported in conformance with the JORC 2012 Code definitions.

• Ore Reserves are calculated using a gold price of A$1600/ounce.

• Ore Reserves are calculated using a cut-off grade between 0.27g/t and 0.35g/t Au.

• Mining dilution and recovery, estimated by modelling to a Selective Mining Unit (SMU) with dimensions of 5m x 5m x 2.5m, are 5% and 94% respectively.

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• All figures are rounded to reflect appropriate levels of confidence which may result in apparent errors of summation.

• For full details of Karlawinda Ore Reserve Estimate refer to ASX Announcement dated 29 May 2018.

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Capricorn Metals Ltd (ASX: CMM ) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 8 9212 4600 www.capmetals.com.au ABN: 84 121 700 105

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