CAPRICORN METALS LTD — Capital/Financing Update 2016

Apr 28, 2016

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CAPRICORN RAISES $12.6M TO ADVANCE KARLAWINDA GOLD PROJECT

Proceeds from str o ngly sup p orted pla c ement to be used t o fast-tra c k resour c e/reserve d evelopm e nt, devel o pment st u dies and explorati o n

29[th] April 2016: Capricorn Met a ls Ltd (AS X : CMM) ( Capricorn or the Company ) is pleased t o announce that it h a s success f ully raise d $12.6 million through a stro n gly supp o rted shar e placemen t to advan c e its flag s hip Karla w inda Gold Project i n Western A ustralia t o the nex t stage.

The plac e ment, co m prising 9 7.2 millio n fully p a id ordina r y shares, was und e rtaken t o institutional and sop h isticated i n vestors a t an issue p rice of 13 cents per s hare. This represent s an 8.5% discount t o the 5-d a y volume weighted average price (VWA P ) of 14.2 cents pe r share.

The funds raised will significantly strengthen Capricorn’s bala n ce sheet, putting it i n a stron g position t o fast-trac k the deve l opment of the Karla w inda Proj e ct, locate d 65km so u th-east o f Newman in WA, a n d realise its objective of becoming a s ignificant new Aust r alian gol d producer.

The proc e eds of th e raising w ill be used to com p lete the c urrent Sc o ping Stud y (due fo r delivery b y mid-yea r ), as well a s to fast- t rack resource/reserv e definition drilling a n d to test a number o f newly ide n tified gol d targets in close proximity to th e existing r esource.

Capricorn’s Managin g Director, Mr Peter T hompson said the Company was delight e d with th e response to the capital raising, both fro m existing sharehold e rs and fr o m a num b er of ne w institutional and sop h isticated i n vestors.

“This is a great result which re f lects the q uality of t h e asset we are dev e loping at K arlawinda, the experience and capability of the te a m we ha v e put in place, and the strength of ou r strategy – which is t o become a low-cost, high-margin gold producer,” he said.

“I would l ike to tak e this opp o rtunity t o thank all of the in v estors wh o participated in thi s raising, including se v eral of o u r existing cornersto n e shareholders, and to welco m e the ne w sharehold e rs as we e mbark on this next i m portant s t age of the Company’ s develop m ent.”

Euroz Se c urities Li m ited acte d as Lead Manager a nd Bookrunner for the issue. Paterson s Securities Limited w a s Co-Man a ger.

ENDS

For further informati o n, please contact: M r Peter T h ompson, M anaging D irector Mr Nich o las Read E mail: pth o mpson@c a pmet.com.au Read C o rporate P hone: 0417 979 169 Phone: 0419 929 0 46

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