CAPRICORN METALS LTD — Capital/Financing Update 2017

Mar 8, 2017

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ASX ANNOUNCMENT 9[th] March 2017

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

Mr Jonathan Shellabear Non-Executive Director

$10M CORNERSTONE INVESTMENT TRANCHE 1 COMPLETION

HIGHLIGHTS

• In early February, Capricorn Metals has entered into a binding agreement with Hawke’s Point Holdings L.P. to subscribe for A$10M in new equity at 11.7c per share.

• All conditions precedent for Tranche 1 funding have been satisfied, Tranche 1 is completed, and funds received.

On 6[th] February 2017, Capricorn Metals Ltd (ASX: CMM – “Capricorn” or the “Company”) announced a binding agreement with Hawke’s Point, an international asset manager focused on the mining and metals sector, to subscribe for a A$10 million placement in Capricorn shares at 11.7c per share.

The Company is pleased to announce that all conditions required for completion of Tranche 1 funding, including ASX approvals have now been met, a complete Subscription Agreement has now been executed, and Tranche 1 funds of A$6.4m have been received.

The residual A$3.6m Tranche 2 funding, on the same terms, has the support of all Company directors, and requires the approval of shareholders. A Notice of Meeting will be distributed shortly for this purpose.

The Karlawinda Project is on track to move into production next year, with a Definitive Feasibility Study (DFS) on track for completion by mid-2017.

Issued Capital:

Shares 486.9M Options 17.8M Share Price A$0.105 Market Cap. A$51.1m

EXPLORATION OFFICE: 1 Coventry Parade North Fremantle, WA 6159

REGISTERED OFFICE: 15 Lovegrove Close Mount Claremont, WA 6010

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

For and on behalf of the Board

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Peter Thompson Managing Director

For further information, please contact:

Mr Peter Thompson, Managing Director Mr Nicholas Read Email: pthompson@capmet.com.au Read Corporate Phone: 0417 979 169 Phone: 0419 929 046

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