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27 January 2021 ACTIVITIES REPORT DECEMBER QUARTER 2020 CAPRICORN METALS LTD HIGHLIGHTS • • • • • Development of the Karlawinda Gold Project ( KGP ) is proceeding as planned and is expected to culminate in first gold production in the June 2021 quarter . Considerable progress during the quarter on the development of the KGP including : • • • • • Concreting and civil earthworks for processing plant substantially completed ; Ball mill manufacture completed , shipped to Port Hedland in December 2020 and delivered to KGP in early January 2021 ; Majority of processing equipment and fabricated steelwork delivered to site ; Commencement of equipment installation in the reclaim , CIL and goldroom areas ; Continued progress on the construction of the gas lateral pipeline with line pipe delivered , contractors mobilised , and clearing and civils commenced ; and • Earthmoving contractor mobilised to site and commenced mining in the Bibra open pit and construction of Tailings Storage Facility ( TSF ) . During the quarter $ 30.2 million was spent on KGP development with total project expenditure to date of $ 92.7 million . Development cost estimate continues to be in line with budget of $ 165- $ 170 million with available funding of $ 96.4 representing a 29 % contingency allowance at the midpoint of the forecast cost to complete . Available funding of $ 96.4 million made up of cash at bank of $ 18.9 million at end of quarter and undrawn bank facility of $ 77.5 million . All conditions precedent to first drawdown of $ 80 million debt facility with Macquarie Bank satisfied during the quarter with $ 2.5 million drawn to the end of December 2020 . Significant workflows planned for the March 2021 quarter include : • • Continued structural and plate steel work and equipment installation ; Commencement of electrical installation ; and • • • Completion of start - up ROM pad and TSF embankment earthworks . Grade control of 4 million tonnes ( +/- 1 year mill feed ) of laterite ore in the Bibra open pit complete and confirming the reserve model . 6,500 metre near mine infill and extensional drill programme commenced , with significant early ( from first 2,500m ) results including : • 5 metres @ 3.77g / t from 36 to 41m • 4 metres @ 2.09g / t from 35 to 39m • 7 metres @ 1.59g / t from 48 to 55m • 2 metres @ 3.68g / t from 49 to 51m The results of this programme will be used to update the MRE and allow for studies to assess the economic potential of Easky and Finns deposits Commenced a high resolution aeromagnetic survey over the regional tenement package ( ~ 36,000 line km ) to develop detailed structural interpretation for target generation . Stategic investment of $ 1.2 million committed to take a 12 % interest in Pilbara gold and base metals explorer DiscovEx Resources Ltd ( ASX : DCX ) which holds a prospective 2,247km2 tenement package proximal to Karlawinda . P +61 8 9212 4600 F +61 8 9212 4699 Level 1 , 28 Ord Street , West Perth , WA 6005 ABN 84 121 700 105 www.capmetals.com.au