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1 April 2021 ACTIVITIES REPORT MARCH QUARTER 2021 CAPRICORN METALS LTD HIGHLIGHTS . • • • • Development of the Karlawinda Gold Project ( KGP ) is nearing completion within time and cost guidance , with commissioning and first gold production expected in the June 2021 quarter . Considerable progress made during the quarter on the development of the KGP including : • All key equipment and fabricated steelwork delivered to site ; • Ball mill in place and installation well advanced ; • • Crushing plant equipment in place and installation well advanced ; Completed equipment installation in the reclaim , CIL , tailings and goldroom areas ; • Commenced piping and electrical installation ; • • • Construction of the gas lateral pipeline and power station nearing completion ; First ore mined and delivered to ROM ; and Starter embankment earthworks of the Tailings Storage Facility ( TSF ) nearing completion . During the quarter $ 36.6 million was spent on KGP development with total project expenditure to date of $ 129.3 million . Development cost estimate continues to be in line with budget of $ 165- $ 170 million . Forecast cost to complete $ 38.2m ( using midpoint of cost guidance ) with available funding of $ 56.7 million representing an $ 18.5m ( 48 % ) contingency allowance . Available funding of $ 56.7 million made up of cash at bank of $ 19.2 million at end of quarter and undrawn bank facility of $ 37.5 million . Significant workflows to be completed in the June 2021 quarter include : Complete structural steel , equipment installation , piping and electrical installation ; Commissioning of the gas lateral pipeline and power station ; • • Complete initial stages of ROM pad and TSF embankment construction ; • Complete borefield and TSF perimeter pipework installation ; • • Build ROM ore stocks ; and • Commissioning of the processing plant . A near mine infill and extensional drill programme ( 7,000 metres ) continued , with significant results outside the current Resource including : 19 metres @ 2.46g / t from 136 to 155m and outside the current Reserve : • • 19 metres @ 1.69g / t from 122 to 141m • 6 metres @ 1.33g / t from 83 to 89m 6 metres @ 1.70g / t from 54 to 60m Approximately 3,000 metres of the programme remain to be drilled with results to form the basis of a Resource and Reserve update in June 2021 quarter . Completion of a high resolution aeromagnetic survey ( ~ 36,000 line km ) and results of reconnaissance field work validate regional prospectivity and exploration strategy . Investment of $ 1.2 million ( 12.6 % interest ) in gold and base metals explorer DiscovEx Resources Ltd ( ASX : DCX ) which holds a prospective 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