CAPRICORN METALS LTD — Capital/Financing Update 2016

Aug 21, 2016

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ASX ANNOUNCMENT 22[nd] August 2016

Australian Securities Exchange Code: CMM

ABN: 84 121 700 105

Board of Directors:

Mr Guy LeClezio Non-Executive Chairman

Mr Peter Thompson Managing Director

Mr Peter Langworthy Technical Director

Mr Heath Hellewell Non-Executive Director

Issued Capital:

Shares 486M Options 18.7M Share Price A$0.16 Market Cap. A$77.7M

EXPLORATION OFFICE: 1 Coventry Parade North Fremantle, WA 6159

REGISTERED OFFICE: 15 Lovegrove Close Mount Claremont, WA 6010

CAPRICORN MAKES FINAL ACQUISITION PAYMENT FOR KARLAWINDA GOLD PROJECT

Major resource in-fill and exploration drilling program continuing with further updates expected shortly

22[nd] August 2016 : Capricorn Metals Ltd (ASX: CMM) is pleased to advise that it has made the final payment owing to Independence Group NL (ASX: IGO) to complete its acquisition of the Karlawinda Gold Project in Western Australia (Figure 1).

This means Capricorn now has 100% ownership of this high quality gold project, which includes the Bibra Gold Deposit (Inferred Resource of 25.5Mt at 1.1g/t Au for 914,000 ounces - see ASX announcement 4[th] July 2016) and multiple exploration targets.

Capricorn has recently commenced a Definitive Feasibility Study on the Karlawinda Project on the back of a highly successful Scoping Study (see ASX Announcement 29[th] July 2016).

As part of this aggressive development strategy, a major program of infill and extensional drilling is underway, together with exploration drilling to test a number of recently identified priority exploration targets.

The Company will provide a further update on this program this week.

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Karlawinda Gold Project Location Plan

For and on behalf of the Board

Peter Thompson Managing Director

T +61 8 9384 3284 F +61 8 9284 3801

E enquiries@capmetals.com.au www.capmetals.com.au

For further information, please contact:

Mr Peter Thompson, Managing Director Email: pthompson@capmet.com.au Phone: 0417 979 169

Mr Nicholas Read Read Corporate Phone: 0419 929 046