CAPRICORN METALS LTD — Management Reports 2017

Oct 23, 2017

==> picture [178 x 181] intentionally omitted <==

Karlawinda Gold Project Feasibility Study A compelling opportunity in the Australian gold sector

24 October 2017

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 Exploration Results or Mineral Resources is based on information reviewed by Mr. Peter Langworthy who is Executive General Manager Geology, and a full time employee of the Company. Mr. Peter Langworthy is a current Member of the Australian Institute of Mining and Metallurgy 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. Langworthy 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 Karlawinda is based on information compiled by Quinton de Klerk. Mr de Klerk is an employee of Cube Consulting PL and is a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM, #210114). Mr de Klerk 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. de Klerk consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

==> picture [61 x 57] intentionally omitted <==

Capricorn Metals confirms that it is not aware of any new information or data that materially affects the information included in the previous ASX announcements on Resources (10/4/2017) and Metallurgy (19/6/2017) 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.

capmetals.com.au

A Compelling Opportunity in the Australian Gold Sector Robust Feasibility Study………..

Open Pit Ore Reserve and Mineral Resource Estimate

Bibra Deposit Ore Reserve 21Mt @ 1.06 g/t Au for 713,000oz (Probable)[1]

• Mineral resource estimate of 31Mt @ 1.10g/t Au for 1.1Moz (Indicated and Inferred) at $A1750/oz

• Ore Reserve conversion rate 70% at A$1500/oz

Robust Project Economics in Premier Mining Jurisdiction

• 3.0Mtpa plant to produce 100,000oz pa over an initial 6.5 year mine life (based on current Ore Reserves)

• Project revenue of $1,091M, pre-tax operating surplus of $413M

• ASIC of A$1025/oz over LOM

• NPV(8) (pre tax) of A$144M, IRR 31%, ~3 year payback

Capital Expenditure

Total initial capex estimate for plant & infrastructure of $A133.3M (plus contingency of A$13.1M):

• 3.0Mtpa CIP processing plant A$90.7M

• Plant Infrastructure A$8.7M

• Other Infrastructure A$20.5M

• Owners Costs A$13.4M

Board Approval to proceed to development subject to project financing

==> picture [198 x 260] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

First gold production targeted in June Quarter of 2019

1. Capricorn report that it is not aware of any new information or data that materially affects the information included in the Reserve announcement dated 7th August 2017 and, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not material changed.

capmetals.com.au

Page 1

A Compelling Opportunity in the Australian Gold Sector Robust Feasibility Study………..

Ongoing Post-Feasibility Study Project Optimisation

• Process plant and associated infrastructure capex savings

• Formal EPC tender process underway

• Material improvement on FS anticipated

• Formal process to finalise preferred power solution

• Gas - LNG, CNG, GGT pipeline

• Newman Grid Power

• Ongoing mine schedule and fleet utilisation optimisation

• Revised mine design and schedule following Resource update

• Formal tendering process to finalise preferred mining solution

==> picture [198 x 260] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 2

A Compelling Opportunity in the Australian Gold Sector

Bibra Gold System – expansion targets………..

Bibra

Additional 300koz of Indicated Resources at the base of the design pit and open at depth.

• 10-15% uplift in gold price or positive movement in operating costs will bring them into the production schedule

• Delineation of additional shallow ounces (e.g. Portrush) will bring them into the production schedule

• Obvious potential for increase in LOM ounces by approximately 50%

Portrush Zone

Recent exploration drilling has identified additional ounces within and adjacent to the current design pit shell (open at depth)

• 25m @ 2.28 g/t Au from 77m

• 14m @ 2.06 g/t Au from 2m

• 28m @ 1.47 g/t Au from 65m

• Resource update and review of Reserves and pit designs

Easkey, Southern Corridor and strike extensions

Currently 84koz Inferred Resources (SC and Easkey)

• 8m @ 3.74 g/t Au from 83m

• 22m @ 1.35 g/t Au from 52m

• Potential of “live” structures for shallow economic mineralisation

==> picture [186 x 248] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 3

A Compelling Opportunity in the Australian Gold Sector

Regional exploration upside………..

Bibra is not the only potential multi-million ounce gold system at Karlawinda

Francopan and K3 (~5km from Bibra)

Francopan: Mineralised system of comparable in scale to Bibra, with a demonstrated higher grade component

==> picture [61 x 57] intentionally omitted <==

• 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

• 21 holes within an area of 4km[2]

K3: Up-plunge, extension of the large Francopan system

• 26m @ 1.08 g/t Au from 132m

• 21m @ 1.31 g/t Au from 230m

• 13 holes within an area of 2.5km[2]

• Test for shallower up-dip zones

Bundoran

High priority geochemical/geophysical target

• Anomalous geology, geochemistry and aircore drill intercepts 5m @ 1.61g/t Au from 48m (EOH)

• Induced polarisation (IP) and magnetic geophysical anomalies comparable to Bibra

Regional Targets

• ~300km[2 ] of underexplored interpreted greenstone belt, parts never geochem sampled

• Existing anomalies ready for infill geochem and aircore

==> picture [186 x 248] intentionally omitted <==

capmetals.com.au

Page 4

Board

Corporate

Heath Hellewell (BSc (Hons)) – Executive Chairman

• Geologist with +23 years experience in gold, base metals & diamonds

Corporate Information
ASX Code	CMM
Shares on Issue	572.4M
Share Price as at 23rd October 2017	$0.078
Market Cap 23rd October 2017	~$44.6M
Cash as at Sept 2017	$2.9M
Unlisted options	55.7M

• Co-founding Executive Director of Doray Minerals, and previous senior positions with Independence Group NL, Resolute Mining and DeBeers Australia

• Co-winner of the 2014 AMEC “Prospector of the Year” award

Stuart Pether (BEng) – Non-Executive Director

• Mining Engineer with +25 years’ experience

• Vice President, Project Development with Evolution Mining

• Previous senior positions with Kula Gold, Catalpa Resources, CBH Resources, PacMin Mining Limited, Dominion Mining and Western Mining Corporation

Guy LeClezio (BA) – Non-Executive Director

• Stockbroker and Mining Industry Executive, +20 Years Experience

• Eyres Reed, Canadian Imperial Bank of Commerce

• Founder Madagascar Resources NL

Management

==> picture [61 x 57] intentionally omitted <==

==> picture [399 x 178] intentionally omitted <==

Peter Thompson (BSc (Hons) MSc) – Chief Operating Officer

• Geologist with extensive experience in gold, nickel and copper

• Previous senior roles with WMC, Anaconda Nickel, Jubilee Mines, St Barbara Ltd, Beaconsfield Gold and Central Asia Resources

• Significant experience in operating deep underground gold and heap leach start-up operations

Jonathan Shellabear(BSc (Hons) MBA) – Chief Financial Officer

• 30 years’ experience as a senior corporate executive and investment banker specialising in the mining sector

• Senior investment banking positions with NM Rothschild & Sons, Deutsche Bank and Resource Finance Corporation

• Former Managing Director of Dominion Mining

Peter Langworthy (BSc (Hons)) – General Manager Geology

• Geologist with 28 years’ experience in mineral exploration and project development in Australia and Indonesia

• Senior management roles with WMC Resources, PacMin Mining, Jubilee Mines and Talisman Mining

• • Part of the corporate team responsible for the growth of Jubilee Mines until it was taken over by Xstrata for $23/share

capmetals.com.au

Page 5

Karlawinda: First Class WA Location

Low risk pathway to production

• 100% ownership (1,419km[2] )

• Low-risk Jurisdiction

• 70km from Newman by road

• Granted Mining Lease

• Native Title agreement in place

• Environmental baseline and detailed studies complete

• Permitting framework well understood with no impediments

• World-class infrastructure and support services

• Newman airport, road network, logistics base

• Engineering and mining support services

• Residential opportunities

• Ongoing Optimisation of Power supply options

==> picture [61 x 57] intentionally omitted <==

• LNG, CNG, GGP, Grid Power

==> picture [412 x 325] intentionally omitted <==

capmetals.com.au

Page 6

Open Pit Mining

Bibra Deposit- large tonnage, low strip ratio

• Single large-scale, multi-staged open pit

• Very attractive stripping ratios:

• LOM - 4.7:1

==> picture [226 x 177] intentionally omitted <==

==> picture [223 x 177] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

• Higher value, near surface laterite and oxide ore in Stage One

• Thick, continuous and consistent ore zones

• Comfortable mining rates, consistent material movement

• Favourable geotechnical conditions, HW overall slope ~47[o] , FW ~25[o]

Pit Stage	Tonnes	Grade (g/t Au)	Ounces	Strip Ratio (Waste : Ore)
1A	554,000	0.9	16,000	5.4 : 1
1B	1,630,000	1.2	63,000	3.1 : 1
1C	2,892,000	1.05	98,000	2.4 : 1
2	8,172,000	1.03	271,000	4.9 : 1
3	7,777,000	1.06	266,000	5.5 : 1
TOTAL	21,025,000	1.06	713,000	4.7 : 1

capmetals.com.au

Page 7

Open Pit Mining

Bibra Deposit- Contract/Owner Operator FS Assumptions

• Contract grade control

• RC -10m x 10m, 5m x 8m

• Contract drill and blast

• 5m benches, 10m benches in some areas of bulk waste

• Detailed fragmentation studies to:

  • Optimise powder factors and blast patterns

  • Ensure material delivered to crusher is optimal

• :

• Owner operator load and haul is the preferred option due to

• Significant cost savings

• Simple large-scale, single open pit mine

• Broad ore zones

• Consistent scheduled material movement over LOM

• Attractive new equipment leasing opportunities

==> picture [61 x 57] intentionally omitted <==

• Service and supply logisitics due to proximity to Newman

==> picture [305 x 200] intentionally omitted <==

==> picture [305 x 198] intentionally omitted <==

capmetals.com.au

Page 8

Metallurgy & Processing

Conventional Processing, High Recoveries

• Conventional 3Mtpa CIP circuit

• 3.7Mtpa throughput in first 2 years (oxide)

• Single stage crushing

• 6.5MW SAG with upgrade to SAB (SABC) with ~2.5MW ball mill after 2 years

• Potential to increase annual throughput in primary ore with larger ball mill

• 92.6% LOM recovery, with 45% gravity recoveries in primary ore

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

• Low reagent consumptions

• Consistent milling rates

==> picture [61 x 57] intentionally omitted <==

==> picture [342 x 206] intentionally omitted <==

==> picture [341 x 212] intentionally omitted <==

capmetals.com.au

Page 9

Metallurgy & Processing

High Recoveries, Conventional Processing

Test	Ore Type	Units	Grade (g/t)	Recovery Testwork	Recovery Testwork
				Scoping Study Recovery (%) (P80grind size)	FS (June 2017) Recovery (%) (P80grind size)
Gravity	Laterite Oxide Transition Fresh	% % % %	1.4 1.0 1.0 1.1	- - - 24	< 10 25 45 45
Overall	Laterite Oxide Transition Fresh	% % % %	1.4 1.0 1.0 1.1	92.1 (125 μ) 89.0 (125 μ) 90.0 (125 μ) 91.4(106 μ)	94.1 (150 μ) 92.8 (150 μ) 91.8 (150 μ) 92.5 (106 μ)*
Average		%	1.09	90.4	92.6

Comminution Testwork	Comminution Testwork	Comminution Testwork	Comminution Testwork	Comminution Testwork
Test	Ore	Units	Scoping	FS
SMC (A*b)	Oxide Fresh		87 28	89 30
BBWI	Oxide Fresh	kWh/t kWh/t	16.7 15.8	13.0 14.5
UCS	Fresh	Mpa	150	54
Abrasion Index	Oxide Fresh	g g	0.08 0.25	0.07 0.23

*primary ore subsequently optimised to 120μ with no recovery impact

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 10

Metallurgy & Processing

Conventional Processing/High Recoveries

==> picture [392 x 257] intentionally omitted <==

==> picture [392 x 257] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 11

Infrastructure

Standard West Australian Gold Mine

• Long-term power purchase agreement (BOO).

• Current FS assumption is:

  • Onsite gas-fired power station

  • • Fuelled by LNG

• Integrated Waste Landform (IWL) Tailings Storage facility (TSF)

• New 31km access road linking site to all weather unsealed shire road (Coobina Road) and Great Northern Highway

• Borefield - water abundant and excellent quality

• Second-hand accommodation camp (with potential Newman residential option)

==> picture [61 x 57] intentionally omitted <==

• FIFO via Newman airport (60km by road)

capmetals.com.au

Page 12

Infrastructure

==> picture [61 x 57] intentionally omitted <==

==> picture [568 x 399] intentionally omitted <==

capmetals.com.au

Page 13

Capital Cost Summary

A simple, straightforward development and growth opportunity

==> picture [61 x 57] intentionally omitted <==

Item	Feasibility Study (September 2017)
	3.7Mtpa Oxide/ 3.0Mtpa Primary
Processing Plant (EPC)	$90.7M
Plant Infrastructure (EPC) (Plant buildings and workshops, borefield)	$8.7M
Other Infrastructure (TSF, accommodation village, access road, communications)	$20.5M
Owners Costs (temporary construction facilities, capital spares, first fills, personnel costs, insurance, establishment costs)	$13.4
Estimated Capital Costs	$133.3M
Contingency allowance	$13.1M
Total Capital Cost Estimate (includes rounding adjustments)	$146.3M

capmetals.com.au

Page 14

Operating Cost Summary

A simple, straightforward development and growth opportunity

Item	LOM Cost (A$M)	LOM Cost / Tonne (processed) (A$/t)	LOM Cost / Ounce (recovered) (A$/oz)
Mining	$290.9	$13.8	$440.1
Processing & Maintenance	$251.9	$12.0	$381.1
General & Admin.	$54.3	$2.6	$82.2
Realisation Costs	$3.0	$0.1	$4.5
Sustaining Capital (incl. closure costs)	$22.8	$1.1	$34.5
	$622.9	$29.6	$942.4
Royalties & Charges	$54.8	$2.6	$82.9
AISC	$677.7	$32.1	$1025.3

==> picture [345 x 207] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 15

Timeline

A simple, straightforward development and growth opportunity

==> picture [719 x 211] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 16

Resource and Reserve Growth

A simple, straightforward development and growth opportunity

==> picture [61 x 57] intentionally omitted <==

==> picture [584 x 322] intentionally omitted <==

----- Start of picture text -----

Resource / Reserve Growth
1.2
1
0.8
0.6
0.4
0.2
0
Acquisition July 2016 April 2017 August 2018
Resources Inferred Resources Indicated Reserves Probable
Millions of Ounces
----- End of picture text -----

capmetals.com.au

Page 17

Capricorn Orogen - Regional Geology

Karlawinda – A new gold discovery in a premier mining district

==> picture [61 x 57] intentionally omitted <==

==> picture [582 x 330] intentionally omitted <==

capmetals.com.au

Page 18

Bibra Gold Deposit

Predictable shear-hosted mineralised system

• Bibra Deposit defined over a 1.1km strike length

• Drilled 800m down-dip and remains open

• Broad ore zones up to 50m wide

• Mineralisation best developed in large “dilational” shoots/fold hinges within the shear system

• Biotite, carbonate, magnetite alteration

• Silica, pyrite, gold mineralisation

• Amphibolite facies metamorphic overprint

==> picture [456 x 262] intentionally omitted <==

• Large laterite and oxide deposit near surface

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 19

Bibra Gold System

Predictable, structurally controlled mineralised system

• Large scale Archaean mineralised system comprising multiple large scale ore zones

• Broad shoots developed along low angle mineralised structures

• Multiple trends only partially drill tested

• Shoots are continuous down plunge

==> picture [61 x 57] intentionally omitted <==

==> picture [313 x 416] intentionally omitted <==

capmetals.com.au

Page 20

Bibra Gold Deposit

Continuous shoots down plunge

==> picture [61 x 57] intentionally omitted <==

==> picture [789 x 334] intentionally omitted <==

capmetals.com.au

Page 21

Bibra Gold Deposit

Continuous shoots down plunge

==> picture [61 x 57] intentionally omitted <==

==> picture [791 x 335] intentionally omitted <==

capmetals.com.au

Page 22

Portrush Zone

Near Surface Extensions

==> picture [61 x 57] intentionally omitted <==

==> picture [712 x 373] intentionally omitted <==

capmetals.com.au

Page 23

Exploration

Unlocking the potential of a new gold camp

• First-mover opportunity in emerging Archaean greenstone province

• Analogous with Plutonic Dome (10.6Moz)

==> picture [481 x 271] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

• Camp-scale multi million ounce potential

• Limited early stage exploration outside the immediate Bibra Deposit

• K3 Prospect, up-plunge projection of Francopan • 26m @ 1.08 g/t Au from 132m

  • 21m @ 1.31 g/t Au from 230

• Francopan, wide-spaced drilling, high grade zones

  • 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

• Bundoran IP Target, similar signature to Bibra

  • Undrilled coincident IP and magnetic target

  • • 5m @ 1.61g/t Au from 48m(EOH)

capmetals.com.au

Page 24

Key Investment Takeaways

A compelling opportunity in the Australian gold sector

• Karlawinda Gold Project is an economically robust Western Australian development opportunity

• Straight forward development pathway

• Single large open pit mine (from surface)

• CIL processing

• Ongoing optimisation

• High impact extensional exploration opportunities adjacent to existing Ore Reserves

• Camp-scale multi million ounce potential from multiple known mineralised systems and new targets

==> picture [61 x 57] intentionally omitted <==

==> picture [389 x 194] intentionally omitted <==

==> picture [389 x 158] intentionally omitted <==

capmetals.com.au

Page 25

Appendices– Resources and Reserves

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 26

Resource – Karlawinda Project

A ril 2017 u rade p pg

	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)	KARLAWINDA GOLD PROJECT JORC(2012) OPEN PIT RESOURCE ESTIMATE(as of April 2017)
DATE	MEASURED			INDICATED			INFERRED			TOTAL
	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)
April 2017	---	---	---	28.9	1.10	1.03	2.4	1.06	0.084	31.3	1.10	1.114
July 2016	---	---	---	---	---	---	25.5	1.10	0.914	25.5	1.10	0.914

• A$1750/ounce Pit Constraint

• 0.5g/t lower cut

• 92% Indicated

• 22% increase in ounces from July 2016

• 70% increase in ounces since project acquisition, Feb 2016

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 27

Resource – Karlawinda Project April 2017 upgrade

April 2017 - Indicated & Inferred Resource

Laterite Domain 1.54 million tonnes @ 1.4g/t for 68,000oz Oxide & Transitional Domain 7.5 million tonnes @ 1.0g/t for 238,000oz Primary Domain 22.3 million tonnes @ 1.1g/t for 808,000oz

==> picture [61 x 57] intentionally omitted <==

==> picture [282 x 105] intentionally omitted <==

==> picture [282 x 105] intentionally omitted <==

==> picture [282 x 106] intentionally omitted <==

==> picture [282 x 105] intentionally omitted <==

capmetals.com.au

Page 28

Resource – Karlawinda Project

April 2017 upgrade

• Drill spacing 25 x 25m and 25m x 50m

• 889 Reverse Circulation drill holes: 119,857m

• ~

• 84 Diamond drill holes: 12,211m ( 10%) including

• 41 metallurgical diamond holes:4,174m

• 5 geotechnical diamond holes: 1,115m

• CMM spend to date ~$20M

==> picture [496 x 256] intentionally omitted <==

==> picture [61 x 57] intentionally omitted <==

capmetals.com.au

Page 29

Reserve – Bibra Deposit

August 2017

	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)	BIBRA GOLD DEPOSIT JORC(2012) ORE RESERVE ESTIMATE(as of AUGUST 2017)
DATE	PROVEN			PROBABLE			TOTAL
	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)	Tonnes (Mt)	Grade (g/t Au)	Ounces (Moz)
AUGUST 2017	---	---	---	21	1.06	0.713	21	1.06	0.713

• A$1500/ounce Pit Constraint

• 0.4 g/t - 0.47g/t Au lower cut (dependent on ore type)

• 70% Conversion

• 5 x 6.25 x 2.5 (SMU)

• Mining dilution applied results in:

• 11% reduction in ore tonnes

==> picture [61 x 57] intentionally omitted <==

• 2% reduction in in-situ grade

• 13% reduction in contained metal

capmetals.com.au

Page 30

==> picture [163 x 165] intentionally omitted <==

Capricorn Metals Ltd (ASX: CMM ) Level 1, 28 Ord Street West Perth, WA enquiries@capmet.com.au +61 89212 4600 www.capmetals.com.au

==> picture [75 x 69] intentionally omitted <==