Capital Metals Regulatory News (CMET)

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

5 February 2021 

CAPITAL METALS plc

("CMET" or the "Company")

Issue of Equity

Capital Metals Plc (AIM: CMET) is a natural resources company focussed on the development of the Eastern Minerals Project in Sri Lanka, one of the highest grade mineral sands projects globally.

The Company announces the issue of 247,891 ordinary shares of 0.2 pence each ("the Shares") to settle the interest component of convertible bonds ("the Convertible Bonds") previously issued by its subsidiary, Capital Metals Limited. The Convertible Bonds were detailed in the Company's admission document published on 23 December 2020 ("Admission Document"). The conversion of interest on the Convertible Bonds to shares was applicable at the completion of the RTO on 13 January 2021 for a deemed value of US$27,888. Following the issue of the Shares, the settlement of the Convertible Bonds has now been completed.

The Shares will represent 0.14 per cent, of the ordinary share capital of the Company, and are being issued to eight long term investors in the Eastern Minerals Project, who collectively own 4.8 per cent of the Company. Additionally, the Company has issued 1 warrant for every share issued, each with an exercise price of 15.6 pence per share and an exercise period of 3 years (expiring 13 January 2024), in accordance with the terms previously agreed with the holders of the Convertible Bonds, as also set out in the Admission Document.

Application will be made for the admission to trading on AIM ("Admission") for the 247,891 ordinary shares. The ordinary shares will rank pari passu in all respects with the existing ordinary shares of the Company. Admission is expected at 8.00 a.m. on or around 10 February 2021.

Total Voting Rights

Following Admission, the Company's issued share capital will comprise 172,436,766 ordinary shares with one voting right each. As the Company does not hold any shares in Treasury, the total number of voting rights in the Company is also 172,436,766 and this figure of ordinary shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

For further information, please visit www.capitalmetals.com or contact: