CAPRICORN METALS LTD — Capital/Financing Update 2017

Dec 21, 2017

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COMPLETION OF SHARE PURCHASE PLAN TO RAISE $2M

Capricorn receives significant support from shareholders with the share purchase plan closing oversubscribed

Capricorn Metals Ltd (ASX:CMM) (“ Capricorn ”) advises that the Share Purchase Plan described in the offer booklet dated 30 November 2017 (“ SPP ”) closed on 20 December 2017.

ASX ANNOUNCMENT

22 December 2017

ASX Code: CMM

ABN: 84 121 700 105

Board of Directors:

Mr Heath Hellewell Executive Chairman

Mr Guy LeClezio Non-Executive Director

Mr Stuart Pether Non-Executive Director

The SPP allowed eligible shareholders the ability to apply for up to $15,000 of new fully paid ordinary shares in Capricorn at a price of $0.052 per share.

As a result of the significant oversubscription, the board has used its discretion under the terms and conditions of the SPP to scale back the allotment of shares to applicants.

38,461,784 new shares under the SPP will be issued to eligible applicants on Wednesday 27 December 2017. Holding statements will be despatched, and refunds of subscriptions monies due to the scale back, will be made, on or around 28 December 2017.

For and on behalf of the Board

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Heath Hellewell Executive Chairman

Issued Capital:

Shares 709.5M Options 56.7M Share Price A$0.07 Market Cap. A$49.7M

REGISTERED OFFICE: Level 1, 28 Ord Street West Perth, WA 6005

For further information, please contact:

Mr Heath Hellewell, Executive Chairman Email: enquiries@capmet.com.au Phone: (08) 9212 4600

T +61 8 9212 4600 F +61 8 9212 4699

E enquiries@capmet.com.au

www.capmetals.com.au